Five local companies to import $1.25 billion US soybean products

• Bangladeshi companies signed deals with United States Soybean Export Council (USSEC)
• They pledged to purchase soybeans and soybean meal
• It will help reduce Bangladesh's $6 billion trade gap with the USA

Five leading soy value chain companies from Bangladesh — Meghna Group of Industries (MGI), City Group, Delta Agrofood Industries Ltd, Mahbub Group, and KGS Group — have signed deals to import $1.25 billion worth of soy products from the USA over the next year, a move that will significantly reduce the trade gap between the two countries.

The companies signed the trade deals with the United States Soybean Export Council (USSEC) at two separate events at the Sheraton Hotel in Dhaka on Tuesday, in the presence of importers, mill owners, diplomats, and businessmen.

With US soybeans being a critical part of the feed mix for poultry and aquaculture producers, this step sets the stage for building a resilient, reliable, and high-quality supply chain for Bangladesh.

Under the agreement, Bangladesh's processors and soybean meal importers have pledged to purchase soybeans and soybean meal valued at $1.25 billion.

At the signing ceremony, Kevin M Roepke, executive director for the Middle East, North Africa, and South Asia at USSEC, said the poultry, agriculture, and dairy sectors in Bangladesh will benefit from higher imports of high-quality US soybean products.

"We are very proud of our bilateral relationship," Roepke said.

Amirul Haque, managing director of Delta Agrofood Industries Ltd, said it is possible to increase the import of US products to $3.5 billion soon if crude oil and LPG are included along with soybean products.

Higher imports of US products will help reduce Bangladesh's $6 billion trade gap with the USA.

MGI Director Tanjima Mostafa said her company aims to import one million tonnes of soybean products this year.

"This is the largest import in Bangladesh this year," she said. Meghna Group will continue to invest in the logistics sector and will stay focused on end consumers, she added.

Md Hasan, managing director of City Group, said importing soybeans in such large quantities will ensure nutrition and food security.

"Bangladesh's soy value chain has signed a historic agreement that opens new opportunities for partnership between Bangladesh's industries and US soy," said USSEC CEO Jim Sutter.

"Our US soybeans play an integral role in the world's food systems, providing nutrition and food security across borders," Sutter said in a virtual speech.

Commenting on the new alliance, Md Taslim Shariar, deputy general manager of Meghna Group of Industries, said, "This is a milestone for Bangladesh and its crushing industries. The more we crush, the more we will achieve food security. It also helps with the rapid growth of the poultry and feed sectors while supporting our edible oil industry. Bangladesh and US soy grow together, building a legacy of economic resilience, industrial growth, and nutritional excellence for generations to come."

The USA has been focusing more on strengthening its bilateral economic relationship with Bangladesh among many other activities, said Tracey Ann Jacobson, Chargé d'Affaires of the U.S. Embassy in Bangladesh.

Jacobson said the USA has also focused on exporting agricultural products to Bangladesh, as imports of U.S. commodities are growing here.

The ambassador added that between 2024 and 2025, the USA wants to increase agricultural exports to Bangladesh from $779 million to $1 billion. "Today's signing ceremony is part of that effort," she said.

Soybean meal exports to Bangladesh from the USA were $5 million in 2023, rose to $20 million in 2024, and are expected to reach $86 million this year, she said.

She expressed hope that exports will continue to grow, as USSEC produces very high-quality soybean meal that benefits Bangladesh's livestock and fisheries sectors, with a growing consumer base in the country.

The landmark agreement with the US Soybean Export Council (USSEC), a trade association representing the interests of US soybean farmers abroad, signals a growing export market for high-quality US agricultural products in Bangladesh, the US embassy said in a statement.