Eric Wenberg wasted no time in his first days as executive director of the Specialty Soya and Grains Alliance.

In his second day on the job, Wenberg hit the ground running by arranging a meeting with agriculture officials from the Japanese Embassy in Washington, D.C.

Wenberg, in conjunction with the Minnesota Soybean Growers Association, discussed with the Japanese officials about the quality and cost-savings of northern-grown soybeans.

“The meeting went very well. It was light and informative, with lots of dialogue,” Wenberg said. “We’re pleased the Japanese were able to meet with us and engage in conversation, and we look forward to further exchanges.”

Japan has been a longtime purchaser of U.S. soybeans. In 2017, the country imported more than $1 billion worth of whole soybeans and soybean meal combined. Japan imports many commodities from the U.S. (namely soybeans, corn, beef, pork and wheat) and is the fourth largest global market for United States agriculture, importing more than $11.3 billion in 2018. Its food self-sufficiency ratio is also the lowest of any developed country, partly due to an aging population (the average Japanese farmer is 66 years old) and limited geographical space for agriculture (Japan is about the size of Montana and has a population of about 126 million).

Wenberg’s group spoke with the Japanese officials about testing for trace amounts of GM material in food grade soybeans and grain. Farmer leaders explained that lower minimum tolerances for trace purposes of GM material in conventional soybean shipments can create trade difficulties from all country suppliers for this type of food product; the lower level thresholds, Wenberg said, fail to increase safety or knowledge to the customer, but could impact foreign trade.

Later in the week, Wenberg signed onto a letter from MSGA thanking Counselor Hiroaki Kojima, and invited Japanese officials to visit Minnesota soybean farms this growing season. Wenberg said he received word after sending the letter that Japanese government won’t implement a lower threshold rule until April 2023.

“We are pleased the Japanese want to continue the conversation with our members, and we’re excited at the prospect of showing their officials how Minnesota farmers run their operations,” Wenberg said.

Wenberg’s day wasn’t done. Immediately following the Embassy visit, he and farmer leaders traveled to U.S. Department of Agriculture’s D.C. headquarters to speak with Farm Service Agency (FSA) Administrator Richard Fordyce, a former United Soybean Board director.

The group discussed the state of the agriculture economy, the Market Facilitation Program (MFP), the Trump administration’s proposed USDA budget cuts and Farm Bill implementation. Fordyce estimates Farm Bill sign-up will begin sometime in 2019.

“We have a secretary (Sonny Perdue) and undersecretary (Steve Censky), who demand this gets done sooner or later,” Fordyce said. “We have a lot of career folks here at USDA, who are just incredible and are doing everything they can to get the Farm Bill rolled out.”

Wenberg explained to Fordyce the mission of SSGA in the weeks following the launch of the company.

“This is really important work, to try to move nationally, to work across the whole industry in a structured way to promote market access and to help the industry better connect with the domestic customer,” Wenberg told Fordyce. “We’ll be working with this as part of the ‘soy family.’”

After a busy first week, Wenberg is traveling to the Midwest this week, where he’s meeting with North Dakota Soybean before heading to SSGA’s headquarters in Mankato, Minn.

“It’s certainly been a hectic, but exciting, start with some encouraging outcomes and follow-ups,” Wenberg said from the airport Monday morning before leaving for Fargo, N.D. “I can’t wait to learn more.”

SSGA Executive Director Eric Wenberg represented the organization at the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) listening session last week in Washington, D.C. to hear comments on how to best implement new provisions to the Farm Bill’s trade title.

The trade title encompasses USDA’s foreign market development programs and food aid. SSGA will participate in foreign market development programs directly after earning a grant through the Agricultural Trade Program as part of the U.S. soy industry’s awards for soy promotion abroad. SSGA’s was awarded a grant totaling $1.5 million.

The audience was complimentary of farm bill programs for foreign market development. Jay Howell, executive director of the Coalition to Promote Agricultural Exports, reported that programs saw a 24:1 return on investment in an Informa 2016 cost benefit study, indicating how effectively they operate. For every dollar invested, the return to exports and jobs was 24 times greater. The market development programs require matching investments from industry, combining to increase the investment and make sure industry is responsible to work together.

“One way the programs achieve this high level of effectiveness,” Wenberg said, “is to ask whole industries to work together to make strategy and work cohesively for the advancement of the interests of all such as how the U.S. Soybean Export Committee, American Soybean Association, the United Soybean Board, state soybean organizations and other organizations like SSGA collaborate to market U.S. soy abroad.”

Foreign Market Development programs, which have an annual budget for $255 million, are poised to become more efficient under the approved new legislation, as unused funds from underutilized grant programs will be permitted to be reprogrammed to other grants where demand outstrips available funds. The new legislation also created the opportunity to use programs in Cuba.

SSGA will be tracking USDA’s FAS farm bill implementation for foreign market development grants and will apply for more grants in the future, collaborating with the other soybean organizations.

The world’s big four agriculture traders and Brazilian rival Amaggi could make a joint bid to operate a road connecting the country’s grain belt to northern ports, while also considering an investment in a parallel railway, the firm that conducted a study on the potential venture said on Monday.

Archer Daniels Midland Co (ADM), Bunge Ltd, Cargill Inc, Louis Dreyfus Co (LDC) and Amaggi have commissioned a study on operating a 968-kilometer stretch of the BR-163 highway for 10 years, according to infrastructure and logistics business development firm EDLP.

That highway is the leading grain artery to northern ports that were responsible for 28 percent of Brazil’s soy and corn exports in 2018, doubling their share in the last eight years.

ADM, Bunge, LDC and Amaggi did not immediately respond to requests for comment. Cargill referred questions to EDLP.

Roberto Meira, a director at São Paulo-based EDLP, said the plan with a proposed model for handing over the roadway to private investors will be submitted to the government later this week. The plan would involve convincing the government to offer a 10-year concession on the road, far shorter than the typical 20- to 30-year tenure on projects currently approaching auction.

Brazil’s infrastructure ministry previously said it intends to put a concession to operate the BR-163 highway up for bid. Details have yet to be announced.

The shorter tenure would account for the fact that grains shipped by truck would gradually be migrated to the proposed Ferrograo rail line that runs a similar route to BR-163 starting in 2025 until eventually the road concession expired, Meira said.

The government’s privatization secretary said in January that the Ferrograo rail project could be ready for bidding this year or early in 2020.

Meira said the grain traders could invest equity capital in both the road and the rail projects, although the bidding could attract other investors.

He said the companies hope making logistical investments will cut costs and remove the uncertainty of trying to move grains up north without a railroad.

Every year, long lines of trucks form at certain towns in Mato Grosso and Pará state because of BR-163’s poor condition.

Last week, two riverside ports in Pará state nearly ran out of soybeans due to closures on the BR-163 highway after rains and heavy traffic blocked sections of the road, underscoring infrastructure woes in the world’s top soybeans exporter.

The 2019 U.S. Soy Global Trade Exchange & Midwest Specialty Grains Conference and Tradeshow is set for Aug. 20-22, 2019 in Chicago.

This year marks the seventh consecutive year the U.S. Soybean Export Council (USSEC) and the Specialty Soya & Grains Alliance (SSGA) are teaming up to co-host the international event.

The conference and trade show draws nearly 250 international soy and grain buyer trade team participants from 50 plus countries and 700 overall industry attendees, including U.S. export suppliers.

Click here to learn more about the upcoming conference.