What is Soya Bean (Soybean)? Why Buy It?
Soya bean (also known as soybean), scientifically known as Glycine max, is a remarkable legume with a rich history and diverse uses. Originating in East Asia, this crop has grown into a global agricultural powerhouse due to its exceptional nutritional profile and industrial applications. Known for its high protein content, soya bean serves as a cornerstone in food products like tofu, soy milk, and soy flour, as well as in animal feed. Its versatility makes it indispensable for both human consumption and industrial uses.
Rich in essential amino acids, dietary fiber, vitamins, and minerals, soya bean is celebrated as a complete protein source. It has a low glycemic index, is cholesterol-free, and offers numerous health benefits, making it a popular choice for health-conscious individuals. Beyond its nutritional value, soya bean plays a vital role in industries like biodiesel production and manufacturing adhesives, highlighting its broad economic importance.
Purchasing soya bean provides significant advantages. As a sustainable crop with high yield potential and adaptability to diverse climates, it aligns with the growing demand for plant-based proteins and eco-friendly food sources. For businesses, investing in soya bean means tapping into a versatile and globally sought-after commodity.
Top Producing/Exporting Countries of Soybean
The global production of soya bean is dominated by a few key countries that benefit from favorable climates and advanced farming practices. The leading producers and exporters include the United States, Brazil, Argentina, China, and India.
- United States: Renowned as the largest producer and exporter, the U.S. leads the global market with states like Iowa, Illinois, and Minnesota driving production. Its advanced agricultural technology, efficient supply chains, and robust infrastructure make the U.S. a reliable source of high-quality soya bean, primarily exported to nations like China and the European Union.
- Brazil: With its vast arable land and ideal climate, Brazil is a major player in the global soya bean market. As the second-largest producer, Brazil’s soybeans are prized for their quality and competitive pricing, making them a favorite in Asian and European markets.
- Argentina: Known for its expertise in processing soy into meal and oil, Argentina plays a significant role in international trade. Its strategic location and well-established export systems further enhance its position in the market.
- China: Although a leading producer, China is also the world’s largest importer of soya bean. Domestic production focuses on food products, while imports cater to its vast animal feed and industrial needs.
- India: India’s growing soya bean industry is vital to its agricultural economy. While most production serves domestic markets, Indian soya bean also finds its way to neighboring countries through exports.
Top Importing Countries of Soybean
Soya bean’s diverse applications in food, feed, and industry drive its global demand. The top importing countries include China, the European Union, Mexico, Japan, and Indonesia.
- China: As the world’s largest importer, China depends heavily on soya bean imports to meet its massive demand for animal feed and soy-based food products. Key suppliers include the U.S., Brazil, and Argentina.
- European Union: The EU is a significant importer, utilizing soya bean and soy meal to sustain its livestock industry. Major consumers within the EU include Germany, Spain, and the Netherlands.
- Mexico: With a growing livestock and poultry sector, Mexico relies on imports from the United States for its soya bean needs. Soybean oil and meal are integral to its agricultural development.
- Japan: Known for its culinary traditions, Japan imports soya bean primarily for food processing, including staples like tofu and soy sauce.
- Indonesia: Soya bean is a dietary staple in Indonesia, with imports supporting the production of tofu and tempeh, essential elements of the local diet.
International Price of Soybean Per Metric Ton
The unit price ($ per kg) of Soya Bean (Soybean) in the international market depends on a host of different factors including:
- The grade of the produce (usually the more the processing, the higher the price)
- The price of the raw material
- Age of the seeds (this can affect the price)
- Production levels in producing countries
- Economic conditions and the exchange rates between the currencies of the producing and importing countries.
- The quantity ordered (the greater the quantity, the cheaper you can get it per ton)
- Harvest season (it is more costly when it is out of harvest season).
- Weather conditions (some commodities are sensitive to weather conditions).
- Freight & haulage cost
- Percentage of markup
- Import duties, trade tariffs and trade agreements between countries
- Distance from the country of origin
- Technology/Infrastructure available in country of origin
- Relationship between the buyer and seller
That said, as at December 2024, Soybean costs between $300 and $700 per metric ton (1,000 kilograms) in the international market (i.e. $0.3/kg to $0.7/kg).
How To Safely Source for Your Soya Bean Produce
If you find the right export company, buying directly from them can make the purchase process easy and stress-free, when compared with doing the sourcing on your own. That said, there are few things to note when dealing with an export company in Nigeria or Africa. The specific requirements for Nigeria are listed below, but they mostly apply to other African countries:
- The exporting company must be registered with the Corporate Affairs Commission (CAC) to make sure the company is registered and permitted to carry out business operations.
- The export company must also be registered with the Nigerian Export Promotion Council (NEPC).
- The company must possess a domiciliary account to accept international payments.
The company should get all necessary export-related documentation done before the shipment leaves the port of origin. Some of the documents are:
- Certificate of origin
- Bill of lading
- Inspection Certificate (SGS, Cotecna, Bureau Veritas, Intertek, etc)
- Phytosanitary certificate
- Fumigation certificate
Where To Find Reliable Exporters
An important question that still needs to be answered is how to find Soya Bean exporters in Nigeria. You can use any of the methods listed below:
- Attend trade fairs
- Use search engines like Google, Yahoo, etc.
- Search for agents on Linkedln
- Sign up on trade platforms (e.g. Alibaba, Tradeford, Go4WorldBusiness)
- Neogric – Neogric is one of the reliable Soybean exporters in Nigeria. Neogric is rated among the best in the exporting business in Nigeria. The company is not limited to the exportation of Soya Bean alone but can export other agricultural produce ranging from perishables to dry seeds.
How To Pay For Your Soya Bean (Soybean) Produce
You can pay for Soya Bean (Soybean) using different methods, but three of the popular ways of paying for your agric produce are:
- Bank (T/T) Payment
- Advance Payment
- Letter of Credit (LC)
Bank Payment (T/T)
Bank payment is also known as T/T, “Telegraphic Transfer” or “Telex Transfer” In other words, it is an international wire of funds from the buyer’s bank to the seller’s bank.
A T/T is technically not the same as a wire transfer, which is often done through the SWIFT network. However, when a seller or supplier asks for a T/T payment, a wire transfer is what they are really asking for.
The wire transfer based on the SWIFT system is the most common payment method in international trade. Typically, it takes 1-5 working days to clear, and generally costs between 25 and 50 USD, depending on your agreement with the commercial department in your bank.
Advance Payment
There are sellers that will demand anywhere from 30% to 50% advance payment, and for good reason. If both parties have done deals in the past, sellers can ask for a percentage of the sales (about 30%) before they ship the produce and they can request for the remaining amount after a scanned copy of the Bill of Lading has been sent to the buyer.
It is the safest option for exporters and it also guarantees that they will have some funds to help with sourcing. It is popular among manufacturers on B2B marketplaces like Alibaba and also with commodity traders.
However, advance payment carries considerable risk for the importer (buyer) because the exporter (seller) might not be under as much pressure to ensure quality checks compared with a stricter form of payment. Some might even disappear entirely.
Having said that, advance payment is very useful and is widely used. For instance, the seller might need to secure the commodity in the face of increased competition. It can also be used when the exporter needs some money for sourcing the produce or for processing raw materials.
The most important thing is for both importer and exporter to build mutual trust by having a track record of successful deals with each other or other known companies.
Letter of Credit
Letter of Credit is an agreement generated by the bank of the buyer, guaranteeing payment once certain conditions are met. It is one of the safest types of payment available to both buyer and seller.
Some of the types of Letter of credit are:
- Commercial Letter of Credit,
- Sight Letter of Credit
- Transferrable or Non-Transferable Letter of Credit
- Standby Letter of Credit (SBLC)
- Usance or Deferred Payment Letter of Credit
- Revocable or Irrevocable Letter of Credit
- Confirmed or Unconfirmed Letter of Credit
- Revolving Letter of Credit
- Green Clause Letter of Credit
- Red Clause Letter of Credit
L/Cs are not totally safe (for either buyer or seller) too. For instance, sellers can ship substandard products or those that are different from the ones agreed upon. In this case, the seller gets paid and the buyer receives goods he cannot use.
And speaking of the dangers of L/Cs for the exporter, the conditions in the Letter of credit might be practically impossible to fulfil; if an exporter agrees to such, he might be unable to receive payment. A report stated that of the letters of credit received in the UK, 50% are unworkable while 70% are rejected by the banks for payment.
Shipping & Delivery Terms
When shipping your products, it is important to take note of a few factors:
Order Quantity
For smaller shipments, airfreight is often the preferred option but as the order volume increases, sea freight could become significantly cheaper. Usually when the order is close to a full container load (20 ft), sea freight is used. Although the Covid-19 pandemic caused an increase in cost of delivery of products, prices have stabilised.
Cost of Delivery
When the order is of a large volume, sea freight often turns out cheaper than air freight. In fact, air freight could be up to 6 times more costly than sea freight if the volume is large enough.
Time of Delivery
Sometimes, time will be more important to the buyer than the cost of delivering the product. In this case, air freight will be the logical option (as stated above, the cost will be more). But if you have more time as a buyer, you should strongly consider using sea freight.
Incoterms
Incoterms refer to generally accepted shipping and payments terms. For example, buyers that have representatives in the source country or that can negotiate with the freight company can use the Free of Board (FOB) terms, since it gives them more control and can save them some money.
However, if the shipment is small or the buyer doesn’t have an extensive network to effectively handle payment for freight, insurance and port charges, he will be better off choosing the Cost-Insurance-Freight (CIF) payment option.
Neogric: Top Exporters and Suppliers of Soybean
We invite you to place your order for high-quality Soya Bean (Soybean) with us at Neogric. We are a trusted global commodity sourcing and trade solution provider with deep expertise in the Soya Bean (Soybean) industry. Whether you’re a small business or a large corporation, our wide range of products and technology powered, end-to-end supply chain make the export of quality Soya Bean (Soybean) easy, quick and safe. Whichever region of the world you are, be it Europe, Asia, USA, Canada, Other North/Central American countries, Africa, South America or Oceania, you can reliably order your agricultural produce and we will ensure it is successfully delivered to you, on time.
Why Buy Soya Bean From Neogric?
Choosing Neogric as your Soybean supplier offers several advantages:
- Quality Assurance: We maintain strict quality control standards, ensuring our Soya Bean and other products are of the highest quality.
- Wide Product Range: We offer a diverse selection of products, catering to various needs.
- Reliable Supply Chain: Our efficient technology-powered end-to-end supply chain ensures timely delivery of your orders.
- Expertise and Support: Our team of experts provides valuable insights and support, making your purchasing process smooth and hassle-free.
Our Soybean Trade Specifications
- Origin: Nigeria
- Product Name: Soya Bean (Soybean)
- Physical Specification: Based On Buyer’s Specification
- Quantity: Based On Buyer’s Specification
- MOQ: 10 Metric Tonnes
- Trade Process: Ex Works/FOB/CIF
- Admixture/Impurities: Based On Buyer’s Specification
- Inspection: SGS/Cotecna/Intertek/Bureau Veritas
- Packaging: Based On Buyer’s Specification
- Payment Method: TT (Bank Transfer) or L/C
- Shipping Time: 15 to 25 Days After Confirmation of TT or L/C
- Loading Port: Lagos, Nigeria
Expected Shipping Documents
- Bill of Lading
- Certificate of Origin
- SGS Inspection Certificate
- Phytosanitary Certificate
- Fumigation Certificate
- Commercial Invoice
- Packing List
Place Your Soybean Order With Neogric
Contact us today to place your order for high-quality Soya Bean. Our team is ready to assist you with all your procurement needs.
- Tel: +2348147860157
- Email: neo@neogric.com
- WhatsApp: Chat With Us