AGRIS Co-operative Team Visits Japan

This post was written by Scott Vandehogen, AGRIS Co-operative Seed Specialist.



Earlier this year, a team from AGRIS Co-operative had the opportunity to travel to Japan on a two week business trip. Representing AGRIS was board directors John Sauvé and Scott McGeachy along with seed specialist, Scott Vandehogen. Also making the trip were five of AGRIS Co-operative’s marketing partners from London Agricultural Commodities.

The marketing position of AGRIS Co-operative has been to try and put our farmer-owners closer to the export customers who buy their crop. The main purpose of this trip was to provide Ontario farmers the opportunity to visit the end users of their product, allowing them to better understand their needs and help those end users understand farmers’ needs. In addition, the AGRIS Co-operative team was able to meet their export customers, reviewing their current and future grain needs, as well as general Ontario and Japanese trends in the marketplace.

At each meeting a fair amount of time was spent helping our Japanese buyers better understand the Ontario growers’ cost of production using an AGRIS Co-operative-produced breakeven calculator for corn, Roundup Ready soybeans, identity preserved conventional soybeans and Roundup Ready 2Y soybeans. The Japanese buyers showed interest in exactly how identity preserved grower premium payments are calculated. They also had several questions and concerns in regards to Roundup Ready 2Y soybeans and the potential threat that these beans may bring to their market.

Pictured at one of the many Japanese offices they visited are Scott Vandehogen (second from left), Scott McGeachy (fourth from left), and John Sauvé (sixth from the left).

The AGRIS Co-operative team found Japanese buyers are very interested in meeting and talking with the Ontario farmers who grow their food. They traditionally visit Ontario in the summer and early fall to get a closer look at the actual crops; pluck the pods and taste-test the beans in the fields themselves.

For now, Japan has bought what it requires and is hesitant to support higher premiums. Their uncertainty is due to the current global economic situation and the possibility of an eventual turn to genetically modified beans that would result in possibly being caught with high premium inventories.

“Japan is not tapped into the genetically modified market, but thinks that they most likely will be someday,” said John Sauvé. “If Japan does switch and agree to use genetically modified soybeans for tofu production, there will still be a need for an identity preserved system because buyers will always require certain characteristics to match their end use.”

Scott Vandehogen, AGRIS Co-operative seed specialist meets with (left to right) Mr. Shinohara, Mr. Miyashita from Sanko Shokuhin Co. and Mr. Kobayashi of Sojitz Corporation in Japan. AGRIS Co-operative supplies identity preserved soybeans directly to the Sojitz Corporation.

Today the world demand for soybeans is changing. Soybeans are not only required for animal feed and human consumption but also for fuel production as well. With global production increasing through genetically modified crops, Scott McGeachy believes AGRIS Co-operative has an opportunity to help supply a growing food shortage in a niche market.

“I believe that we need to grow this market or risk losing it,” he said. “Food safety is very important to the Japanese consumer and it is gratifying to know that AGRIS
Co-operative can provide assurances in this area through its traceability process and well-developed identity preserved system.”

Growing identity preserved soybeans is not for everyone. It takes a farmer who is willing to go that extra mile. Once one understands how much is involved, it becomes clearer as to why premium payments to these farmers are necessary to enable them to remain interested in this unique market. Some of the added restraints include no night time or early morning combining to eliminate dirt tag and a strong commitment to equipment preparation such as cleaning planters, combines and conveyor equipment before each use. It is a niche market that typically appeals to the smaller or mid-size grower.

It was a valuable experience for John, Scott and Scott who all felt the Japanese buyers truly appreciated their visit. They value long-term relationships and are eager to continue meeting with AGRIS Co-operative and the Ontario growers.