The soybean market - Italy

1.2 World market

The world oilseeds market is a very dynamic market, as shown by the data in the graph below from the OECD and FAO Agricultural Outlook. From **** to ****, world soybean production is expected to increase by +**.* percent, cattle feed production by +**.* percent, and vegetable oil production by +**.* percent.

World oilseed production and forecast World, ****-****, million tons Source: ****

For soybeans, the market is led by the countries listed in the following table.[***]

The effect of Covid-**

With the Covid-** crisis, the Brazilian real, the currency of the world's largest soybean producer, depreciated sharply against the U.S. dollar, causing the price of Brazilian products to plummet in the markets. As a result, Brazilian soybean exports were immediately and for more than a year priced very aggressively against its main competitor, U.S. soybeans. This then increased Brazilian exports to China (***) and to Europe.[***]

In addition, due to the cessation of operations, demand for biofuels decreased in **** compared to previous years.

In addition to Covid-**, the year **** was characterized by summer droughts particularly in South America, which led to a more limited supply of agricultural materials, particularly soybeans. While supply is reduced overall in ****, demand has increased. In fact, China, which accounts for ...

1.3 Domestic market and foreign trade

The Italian soybean market is largely dependent on imports of the product. In fact, as can be seen in the graph below, the country's trade balance is largely dominated by soybean imports: in **** Italy will import ****% more than it exports in soybeans. This does not mean that soybean crops do not exist in Italy, and we will see this later in the section on market structure. However, it can be seen thanks to UN Comtrade data that over the years Italian exports of soybeans remain very few and stable while imports increase a lot: from **** to **** they grew by +***%.

Foreign trade of soybeans Italy, ****-****, millions of dollars Source: ****

Brazil

Canada

United States

Origins of soybean imports Italy, ****, in % Source: ****

Denmark

Sweden

Netherlands

France

Belgium

Destinations of soybean exports Italy, ****, in % Source: ****

2.1 Soybeans in livestock feed

According to Greenpeace, ** % of soy used in Europe is for animal feed, including nearly ** % for poultry, ** % for pigs, ** % for dairy cows, and * % for cattle. Moreover,"to produce *** grams of chicken, *** grams of soy are needed," the NGO calculates.[***]

Distribution of animal consumption of soybeans Europe, ****, in % Source: ****

Aseed is a structure whose purpose is to nourish the new seedling, so by definition, a seed contains energy and protein, which are essential for the growth of any living thing. Unlike cereal seeds, which store energy in the form of starch, oil seeds, to which soybeans belong, contain their energy in the form of fat.in order to be consumed by animals, soybeans must be extruded or roasted, as they contain anti-nutritional factors that would compromise the health of animals and effectively reduce their energy intake. Extrusion involves heating soybeans at high temperature (***) for a very short time in a high-speed rotary oven. The sudden return to atmospheric pressure causes immediate evaporation of the water contained in the seeds. [***] The seeds are then squeezed to extract the oil. The residue is called soybean meal and is what farmers use to feed animals.

reduce the content of anti-nutritional factors and improve the energy ...

2.2 Food consumption: consumers' spending habits are changing

Consumer habits have changed profoundly in recent years, and plant-based products play a key role in these changes. Indeed, more and more consumers have decided to turn to ***% plant-based products. if, especially in the early ****s, the consumption of these products was due to wanting to follow the "fashion" of the moment, today the consumption of these products is under the banner of a balanced, tasty, safe, and sustainable diet. [***]

The way of approaching plant-based products, which are considered healthy, good and friendly to the planet, has also changed, with more than * in * (***) and environmental protection are also important.

Why Italians choose plant-based products Italy, ****, in percent BVA -DOXA

(* out of ** become regular users, as many occasional users

the under-**s

thought-out decision

the label

media

listening to

medical advice

What Italians look at when they buy plant-based products Italy, ****, in percent BVA -DOXA

second favorite product

rice, soy, oat, almond

coconut

beverages

.

This may represent an opportunity for those wishing to invest in soy-based beverages

Vegetable products preferred by Italians Italians, ****, in percent BVA - DOXA

3.1 Value chain

This is the value chain of soybeans, from harvest as seed to use as a processed product.

Source: ****

3.2 Soybean cultivation in Italy

The following data refer to soybean cultivation in Italy. We see in the graph below that harvested production in millions of quintals has remained abnormally stable from **** until now.

Harvested production of soybeans Italy, ****-****, million quintals Source: ****

Veneto

***

*** of hectares

***,***

Northeast.

past ** years

Area invested in soybean cultivation Italy, ****-****, % change from previous year Source: ****

3.3 Italian soybean oil production

As mentioned above, the vast majority of soybeans are imported. On the other hand, the production of some soybean products can be found in the Prodcom database in Italy, including the following products:

******** Soy sauce ******** Oil cake and solid residues from soybean oil extraction ******** Refined soybean oil

The data for the first code (***) but the two productions are very unstable through the years.

Annual production of soybean derivatives Italy, ****-****, in millions of euros Source: ****

ATECO **.**.**

"Production of refined or crude oil from oil seeds or oil fruits,"

production of crude vegetable oils: soybean oil, palm oil, sunflower seed oil, cottonseed oil, rapeseed oil, rapeseed or mustard oil, linseed oil, etc production of refined vegetable oils: soybean oil, etc production of flour or un-oiled powder of oil seeds or kernels production of cotton linter, cake and other residues of oil production processing of vegetable oils: blowing, boiling, dehydration, hydrogenation, etc

By analyzing the data of the ** enterprises registered under this code, we can highlight the most important enterprises in the industry. In fact, we can see in the chart below, which takes data from the ReportAziende website, that the top three firms (***) account for ** percent of the market or ...

4.1 Raw material prices

In the long run, the price of soybeans has remained fairly stable. In fact, between **** and ****, the price of a ton will cost on average between *** and *** euros .

Between July **** and April ****, however, the price of soybeans increased by ** %, as the chart below shows. The price of a ton of soybeans went from $*** to $*** in just two years.

This increase in the price of soybean is due to the massive purchase of this agricultural resource by the Chinese in the aftermath of the first wave of the global Covid-** pandemic, which caused tension in this market, while Brazilian reserves were empty, with a poor harvest in **** due to the climate phenomenon "La Niña." In view of rising meal prices and the increasing difference between seed and meal, China is considering importing seeds and processing them on its own territory.

Soybean price trends World, ****-****, $ USD per tonne Source: ****

4.2 Prices charged in the market

To analyze the products practiced in the market, we refer to soybean but also to soybean-derived products, namely:

[***]

5.1 The regulatory framework for soybean production

Codex Alimentarius was established by FAO and WHO for safety, quality and fair practices in international food trade. It characterizes plant protein materials and sets standards for protein content. It determines designations and also specifies rules for labeling. The percentage of protein content varies depending on whether it is in flours (***).

In addition, European regulations state that a GMO cannot be placed on the market or released into the environment without prior authorization. This authorization can only be granted after a case-by-case assessment of risks to health and the environment. GMOs authorized for placing on the market are subject to monitoring, traceability and labeling. In the absence of such authorization for the use in question, the placing on the market or release of the GMO is prohibited. The main European texts regulating the cultivation and marketing of GMOs are:

Directive ****/**/EC on the deliberate release of GMOs into the environment. Regulation (***) No. ****/**** on genetically modified food and feed Regulation (***) No. ****/**** on traceability and labeling of GMOs.

However, foreign GMOs can be imported. With regard to soybeans, the vast majority of Italian (***) imports come from the major exporters-Brazil, the United States and Argentina, which produce GMOs. There are therefore often GMOs in ...

6.1 Segmentation of actors

• Magnolia
• Cereal Docks
• Tampieri
• Oleificio San Giorgio