The soybean market - Italy

The global soybean market, highly dynamic and essential in both human nutrition and animal feed, was valued at $125.11 billion in 2020 and is projected to reach $164.94 billion by 2027, growing at a CAGR of 3.6%. Brazil remains the top soybean producer and exporter, while China is the largest consumer with 30% of global demand. The market faced disruptions due to COVID-19, with Brazilian exports becoming cheaper due to currency devaluation, affecting price structures globally. As for Italy, there has been a surge in non-GMO soybean production, with a 29% growth from 2018 to 2019, amounting to over 1 million tons, predominantly in the Veneto region. Despite this, Italy's soybean market heavily relies on imports, which grew by 117% from 2017 to 2021, largely from Brazil, Canada, and the United States. Italian taste for soy-based products is evolving, with a significant shift seen in consumers turning towards plant-based diets for health, environmental, and ethical reasons. Soybeans primarily serve as livestock feed and are used extensively in poultry and swine industries after undergoing extrusion to reduce anti-nutritional factors. The value chain for soybeans extends from harvest to a variety of processed products such as soy milk, tofu, and soy oil. Prices of soybeans soared globally, with a remarkable 89% increase from July 2020 to April 2022, influenced by massive Chinese purchases and a poor Brazilian harvest. Italian production of soybean derivatives like refined oil and solid residues has witnessed fluctuations, with top companies like Cereal Docks, Bunge Italia, and Tampieri dominating the sector..Trends and Analysis of the Soybean Market in Italy The Italian soybean market has been experiencing notable developments, particularly in the realm of non-GMO soybean production. Italy has become a leader in Europe for producing non-GMO soybeans, with a remarkable year-on-year growth of approximately 29% between 2018 and 2019. Cultivation expanded significantly, reaching around 273 thousand hectares and producing over 1 million tons. The Veneto region leads in production, followed by Friuli-Venezia Giulia, noting that the lucrative market is driven by low production costs and the agricultural benefits of soybean cultivation, such as disruption of cereal succession and land enrichment. Globally, the soybean market is dynamic, with an expected increase of around 12.4% in global production within the next few years. The United States, Brazil, and Argentina are the primary producers, with their market dominance being clear. Italy, on the other hand, relies heavily on imports, especially from Brazil, which accounts for over half of its soybean imports, followed by Canada and the United States. The demand for soybeans in Italy is multifaceted, with the livestock feed industry consuming a significant portion, particularly in poultry, pig, and dairy farming. In the wake of shifting consumer habits, there is a rising trend toward plant-based diets, with a notable increase in the consumption of fruits, vegetables, and reduction of animal proteins. Italians are also gravitating towards plant-based products as reflected by more than half of the consumers buying plant-based options due to their nutritional benefits, taste, ethical considerations, and environmental protection. Despite the heavy reliance on imports, Italy has a stable, albeit small, domestic production of soybeans and soybean-derived products. Interestingly, homegrown production has remained relatively stable over the years, with fluctuations being attributed to various external factors such as the Covid-19 pandemic, which has influenced global prices and demand due to its impact on supply chains and consumer behavior. Regulatory measures play a critical role in the Italian soybean market. The European Union's stringent GMO policies restrict the commercial use of GMOs, requiring rigorous assessments and labeling to ensure consumer safety and environmental protection. In terms of raw material prices, the soybean market has seen fluctuations over recent years, particularly with an upsurge after the initial wave of the Covid-19 pandemic due to increased Chinese demand and limited Brazilian supplies. In conclusion, the Italian soybean market demonstrates a blend of robust import dependence, budding domestic production emphasizing non-GMO products.### Key Players Shaping the Italian Soybean Market Landscape The soybean market in Italy, while heavily reliant on imports, boasts a range of prominent actors that significantly contribute to both domestic cultivation and production processes, creating a diverse industry that serves multiple market needs. #### Cultivating the Core: Agricultural Specialists At the primary level of the soybean industry, where the cultivation of the oilseeds is central, companies like Magnolia Agricultural Company Ltd and Duregon M.G.S - Srl stand out. These entities have invested heavily in the agricultural aspects of the soybean market, ensuring a steady cultivation and supply of soybeans within Italy. Their role is crucial as they form the foundation of the soybean value chain, which everything else builds upon. #### The Oilseed Transformers: Processing Pioneers When it comes to transforming these oilseeds into consumable products, companies such as Cereal Docks Spa, Tampieri Spa, Oleificio San Giorgio Spa, and Bunge Italy Spa are at the forefront. These companies specialize in the production of refined or crude oil from oilseeds, with a range that often includes refined soybean oil, a staple in both industrial and consumer markets. Their operations ensure that soybeans are not only available as raw materials but are processed into forms that can readily be used for various applications, from cooking oils to animal feed. #### Pouring It On: Vegetable Milk Producers As consumer habits pivot towards more plant-based alternatives, producers like Alpro and Valsoia are capitalizing on this shift. These companies manufacture a range of soy-based products, with vegetable milk being particularly popular. They are responding to the changing tides of consumer preference, emphasizing the health, ethical, and environmental advantages of soy-based milk alternatives. Each of the companies mentioned are significant contributors to their respective niches within the broader soybean market in Italy. From cultivation to final consumption, they are key players that help not only to meet the domestic demand for soybean products but also to address the export market's requirements. These companies are a testament to the multifaceted nature of the soybean industry, possessing the innovation and resilience to navigate a market confronted with changing regulatory landscapes, shifting consumer tastes, and global economic fluctuations.

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• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 22/06/2022

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Summary and extracts

List of charts

• World oilseed production and forecast
• Distribution of animal consumption of soybean
• Chemical composition of soybean
• Chemical composition of soybean meal
• Why Italians choose plant-based products
• What Italians look at when they buy vegetable products
• Italians' favorite vegetable products
• Area invested in soybean cultivation
• Soybean harvest production
• Origins of soybean imports
• Destinations of soybean exports
• Foreign trade in soybeans
• Soybean price trends
• Annual production of soybean derivatives
• Market shares of enterprises in the "Production of oil from oil seeds or oil fruits" sector

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