Farm Progress

Minnesota soybean farmers tour Vietnam investments

Minnesota Soybean blog talks about state's checkoff investments on See For Yourself tour.

March 29, 2016

4 Min Read

Doug Monson, Minnesota Soybean’s communication director, is one of the folks on the ‘See For Yourself’ tour in Vietnam.

Related: Farmers 'See for Yourself' on Vietnam farm tour

He offers this report in his second blog posted during the trip:

Potential. Growth. Demand. These are all buzz words that have been thrown around for the past two weeks as a delegation of Minnesota farmers toured parts of Vietnam as part of the Minnesota Soybean Research & Promotion Council's See For Yourself mission to the country.

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"All the potential that is here is kind of like that best piece of ground in your township or in the whole area," said Kevin Paap, a farmer near Garden City and president of Minnesota Farm Bureau. "Everybody knows it's your best piece of ground and everybody knows what the potential is and everybody is going to be interested in it. Everybody is going to do everything to be a part of it."

The delegation was overseeing investments made by MSR&PC in Vietnam and learning more about how Tran Trong Chien, director of Ag Consulting Company in Vietnam, and his office works to grow Minnesota's presence in the market.

"I think it is important that farmers know that Minnesota and its checkoff solely fund Mr. Chien's office and staff in Vietnam," said Timothy Loh, Regional Director of the United States Soybean Export Council in Southeast Asia.

According to USSEC, about 45% of the general population in Vietnam is between 25-45 years old. The middle and affluent class in Vietnam is expected to double in size between 2014 and 2020, from 12 million to 33 million people.

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MSR&PC chairman Keith Schrader, who led the delegation of 13 farmers to Vietnam, said in order to grow a market, it is important to get into the country and market a product, in this case U.S. soybeans, and more importantly, Minnesota soybeans.

"China was exporting soybeans roughly 25 years ago, and the American Soybean Association-International Marketing went into China and started showing Chinese farmers how to feed their pigs better and make more money," he said. "People thought they were crazy for spending all this time in China. Look at the amount of beans they are using now. They are our No. 1 export market."

Trevore Brekken, who farms near Crookston, was impressed with Chien and his team in Vietnam. He said because of the work they do, it was clear that the companies the delegation visited cared about visiting with the group.

Related: 'See for Yourself' delegation gets eye-opening look at Vietnam

"These guys take us seriously," he said. "It's not very often you get the top guy to give you the tour. I think they know we are serious, they know we've got a great product. I think it is going to be a great relationship coming down the road."

Paap agreed.

"Whether it is USSEC or USMEF or FAS or whoever, I like it when Mr. Chien comes in and they know who he is and they have that relationship beforehand," he said. "You see that smile and 'how's it going' and you know he's not just here to cater to us because we're their bosses, their funders. They're doing their work everyday."

On Friday, March 18, the delegation visited a CP feed mill near Hanoi, Vietnam before heading out to meet with a CP poultry producer and CP swine producer. CP is the world's largest feed ingredient manufacturer and is committed to providing safe feed, safe packaged food and education for its farmers to producer better products.

"I just thought it was crazy how they sell the baby chickens, they have all the genetics, they sell the feed and they own all the packing," said Ben Storm, who is vice chair of the Olmsted/South Wabasha Corn & Soybean Growers Association and farms near Dover. "They own the whole system minus the raising of the animals."

Patrick Hennen, who chairs the Lyon County Corn & Soybean Growers and farms near Ghent, was taken aback by the reception at the poultry farm.

"I wonder if he ever had anyone out to his place," Hennen said. "He was really proud. He had tears in his eyes."

In Ho Chi Minh City, the delegation met with official from Bunge, toured the Tan Cang -- Cai Mep International Terminal, toured Interflour Port and Mill, visited Vinh Hoan Corporation, one of the worlds largest exports of seafood, and toured one of the company's Pangasius farms. Pangasius is a freshwater catfish, and the company uses a 35% to 40% mixture of soybean meal in its fish meal.

The group also met with soybean and soybean meal traders in Ho Chi Minh City before touring a local grocery store.

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