Argentina’s Soy Crop Harvest will Witness a Decline in 2018

Either steamed right out of pod (edamame), fermented (tempeh), roasted (soy nuts), coagulated (tofu), or prepared in the form of paste (miso), “milk”, nut butter, or porridge, soy has remained an excellent protein source around the world. Soy-fortified bulgur is highly nutritious, as it is made from blending legumes or cereal composed of partially boiled, debranned, and 85% cracked wheat, with 15% expelled, toasted, or defatted soy grits.

Shifting Focus of Consumers toward Health-conscious Diet Increasing Consumption of Soy-fortified Bulgur

Population across developed regions such as Europe, North America, and Latin America are major consumers of soy-fortified bulgur. The rise in awareness among consumers about various benefits of soy-fortified bulgur and shifting focus toward health-conscious diet are some key reasons, which have increased consumption of soy-fortified bulgur across the globe. WISHH – the World Initiative for Soy in Human Health has been continuously focusing on developing agricultural value chain, to create demand for soy and promote its consumption globally.

Soy Crop Cultivation will Witness a Decline in Argentina

Argentina has been the most popular region for cultivation of soy crop over the past few years, and also the world’s largest exporter of soy meal and soy oil. However, soybean harvest in Argentina is expected to witness a 7% decline, representing 52 Mn tons, in 2018 over 2017. Excess water caused by heavy rains has led towards low profit margins for farmers of soy crop in Argentina. Most of the Argentina’s Pampas farm belt have been flooded on the back of unusually strong storms since past two months.

Just before the year 2016, the newly appointed president of Argentina, Mauricio Macri, relieved corn and wheat from export taxes, and several other restrictions. This had boosted cultivation of wheat and corn, thereby increasing demand for soy crop for various purposes, such as producing soy-fortified bulgur. However, soy has tight margins, and farmers have been disappointed by the unconvincing prices offered for soy.

4.9% Decline Estimated on Soy Harvest in Argentina during 2017 to 2018

According to exchange estimates, ample global soy stocks are causing problems for the global market. The exchange estimates Argentina’s soybean area to be at 18.8 hectares in 2018, with harvest forecast of nearly 55 Mn tons. This represents 4.9% less than approximately 57 Mn tons harvested this year. The forecast estimated for 2018 may further decline on the basis of climatic changes.

The problem of excess water hints at declining harvest of soy crop to be more pronounced, roughly to 18 Mn hectares. The market conditions have slated corn to be comparatively more profitable than soybeans in the upcoming season. In addition, declining prices of soybeans have led farmers to keep plantations of soy at bay.

Manufacturers to Position Soy-fortified Bulgur as Substitute for Snacks, Lunch & Dinner

These incidences are likely to impact the global market for soy-fortified bulgur. A latest research states that the global soy-fortified bulgur market is expected to experience a moderate growth, with opportunities to make diversifications in its food products. Manufacturers of soy-fortified bulgur are focusing on its utilization as raw material for ready to cook meals. These manufacturers are also positioning the soy-fortified bulgur as a substitute for snacks, and even lunch and dinner.

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