The document discusses the critical role of transportation in the global soybean supply chain, highlighting the U.S. as a leading producer and exporter. Various transportation methods, including trucking, rail, and barges, are used to move soybeans domestically and internationally, with efficiency being vital for competitiveness. It also addresses challenges such as government policies, poor infrastructure, and high transportation costs that can impede soybean trade.

1. Global Soybean Transportation: 7 Facts You
Need to Know
Soybean Transportation production has seen a tremendous increase worldwide,
with the US alone having a significant percentage of the world’s output. As of
2012 and 2013, the US accounts for about 90% of the world’s soybean
production and ranks as the largest soybean exporter.
Originally grown in China and parts of Asia, soybean cultivation has spread to
many countries worldwide, with some countries becoming involved in producing
or exporting their products.
Due to the increase in demand for soybean, especially among developing
countries, soybean transportation has become a critical aspect of the supply
chain.
As with all agricultural commodities, international soy farmers depend on
transportation to convey their products to the rest of the world. International US
soy customers can now source sustainable ingredients due to the improved
transportation systems.

2. Soybean transportation has its unique system and can be classified into several
categories, such as road, rail, water, air, etc.
This article will discuss some facts you need to know about soybean
transportation in great detail;
Fact # 1: Soybean Transportation Products Can be Moved By Truck
Although the US is the primary producer of soybeans, they are also great
consumers. With domestic consumption of soy products rising annually, farmers
need to convey their commodities to local markets.
Soy farmers depend on trucks to transport their products from the fields to the
crushing facilities and markets. Even products for export will first be conveyed
by truck to either rail or barge for final departure to the designated place.
Trucking, as with other road transport, is a convenient and cost-effective means
of conveying commodities to local markets or any destination within a particular
geographical area. It is much cheaper and quicker to transport soybean products
by road within the locality.

3. Reports show that the US exports about 45 percent of its soybean production to
other countries. Soybean producers must transport their goods to export
terminals and barges.
Rail transportation is one of the most convenient means of transporting soybean
products to consumers and export terminals. For example, most of the largest
growing soybean states are in the midwestern states of the US.
Products move from the growing sites to crushing facilities or for export because
rail loading can convey large quantities of soybean products. Products can also
be transported by train to ports for shipment abroad.
Fact # 2: Soybean Transportation Products Can Be Moved By Barge
Ocean vessels can conveniently convey a larger amount of soybean products for
export. Most export products are ferried through barges. Global soybean
production enjoys sea transportation to move products around the world.
For example, China is one of the largest importers of US soybean products.
Products going to China from the US depend on sea-going vessels for

4. transportation. Though it takes a longer time to transport soybean products by
water, it’s undoubtedly the best option for export.
Shipment of soybeans to other countries of the world goes through water
channels. The rise in demand and consumption of soybean products worldwide
has caused an increase in the shipment of the commodity.
Fact # 3: An Effective and Efficient Transportation is Essential
The movement of soybeans products from the field to the market, crushing site,
and export terminal depend essentially on the transportation system available in
the country.
An efficient transportation network will enhance products’ quick and effective
movement from one region to the other. It will also help to maintain the
competitiveness of soybean growers worldwide. Efficient transportation is key to
a sustainable and profitable global soybean trade.
Fact # 4: Government Policies Affect Transportation

5. Government policies on import and export vary from countries. Some countries’
policies favor imports, while others may restrict imports. For example, China’s
domestic and trade policy on soybean favors high demand and encourages
imports.
In the same vein, some governments may lower tariffs on soybean imports to
enable growers to increase soybean production. Border restrictions, high tariffs,
etc., can negatively impact soybean transportation.
Fact # 5: Major Importers of Soybean Transportation
The United States of America is the world’s leading producer of soybean. Others
are Brazil and Argentina, which have lower production costs.
Most US and South American exports find their way to China – the leading
soybean importer. Japan, Indonesia, Egypt, and some other developing countries
are some of the major importers of soybean.
Facts # 6: Hindrances to Global Soybean Transportation
1. Poor Road Network

6. Soybean farmers often face transportation and infrastructural challenges. Some
of the issues affecting soybean transportation, especially among developing
countries, include the quality of their rural roads.
Most developing countries have poorly designed road networks, making smooth
transportation difficult.
2. High Cost of Transportation
The poor quality of roads, rails, and water transport affects the overall cost of
production, making soybean products expensive.
Receiving countries can develop road networks to make soybean products
affordable to the commoner.
3. Weather
It takes days, weeks, and sometimes months to deliver soybean to the destination
of choice. This depends on the distance between the field and the market.

7. Products going to local markets, and crushing sites, may take hours. Products
going on export can take weeks or more. However, bad weather conditions can
hamper the timely delivery of export products.
Know More on How to Reduce Transportation and Delivery Costs in Your
Small Business
Conclusion
As soybean production continues to grow globally, transportation will continue
to impact the economy of the importing countries. Without efficient
transportation systems worldwide, the soybean market may not be profitable to
growers. Governments worldwide should allow import-friendly policies to
enhance the exportation/importation of soybean products.