Schnell’s trip to Far East helps further soybean trade

When Rolland Schnell took a trip to the west in February, he wasn’t simply headed to Des Moines, Council Bluffs or even San Francisco.

Schnell, a Newton-area resident who is the president-elect of the Iowa Soybean Association, traveled with a few other soybean industry leaders to Thailand in February. The trip yielded some important results, including the signing of a major multi-year production export agreement.

“It’s about having discussions and showing what we do and listening to what’s important to them and their customers,” Schnell said. “We know we can deliver a quality product that’s good for the environment. But we can’t rest. We must evolve how we conduct our business because consumer preference and expectations are always changing.”

Thailand is a nation of about 75 million people, with the city of Bangkok estimated at 12 or 13 million. The country is not in world food needs discussions in the same way as the U.S. or China, but Iowa’s soybean capabilities and Thailand’s needs match up well.

With poultry and pork among its major exports, but soybeans cannot be sourced locally. Last year, Thailand imported 3 million metric tons of soybean meal and 2 million metric tons of whole soybeans. Thailand is getting nearly 20 percent of its soybeans or soymeal from the U.S. Omaha-based AGP is one of Thailand’s major suppliers.

Schnell said persistence in striking the type of memorandum of understanding signed in February is as important as making sure healthy beans rise out of the ground on Iowa farms.

“You have to work just as hard at making the sale as you do producing the product,” Schnell said. “It’s about striking a balance throughout the entire chain, from establishing favorable regulations and producing a quality crop to developing demand and building markets. You need to work on them all, and you need to do them well.”

ISA CEO Kirk Leeds said as recently as four or five years ago, U.S, soybean exporters didn’t have much of a market presence in Thailand. That has changed due to investments made in domestic transportation infrastructure and time spent developing relationships with companies and governments in soybean-buying nations.

In 2013, an ISA delegation led by Iowa Lt. Gov. Kim Reynolds hosted a reception for a number of major soybean buyers from Thailand. Schnell has hosted international groups on his Jasper County farm, and the trip to Thailand wasn’t his first — he’s been overseas on farm-related trips to Turkey, the Philippines, China and Europe.

Schnell said touring one of CP Foods’ four poultry processing facilities while in Thailand last month reminded him of how closely linked soybean farmers are to their customers.

“It’s mind-boggling to think that in just a matter of weeks, soybeans grown on my farm can be harvested, transported to Thailand and fed to poultry that then becomes the chicken fillet burgers enjoyed by consumers throughout southeast Asia and beyond,” Schnell said. “That illustrates the interconnectivity we have — and the importance of maintaining it.”

Thailand is booming, in terms of population and economic growth.

“The vertical integration of the ag and food industries in developing countries will allow their economies to evolve very quickly,” Schnell said. “This will allow millions and millions of people to rapidly climb the economic ladder. You already see it happening. So many of the cars we saw on the road while in Thailand were less than five years old.”

These overseas efforts will hopefully link world food markets in a way that will hopefully entice American farmers to continue creating better products, he said.

“You see firsthand the construction of massive new roads and passenger rail lines in places like Singapore, Bangkok and Beijing, which will allow more people to gain full time employment and actively participate in the global economy,” Schnell said. “And as their salaries increase, they will want more and higher-quality food. Iowa farmers will be who they look to for improving their diets and lives.”

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com