A recent report by the U.S. Department of Agriculture’s (USDA) Agriculture Marketing Service states that the U.S. is losing global soybean market share to South America because of that continent’s lower cost of production, and goes on to state that the U.S. needs investments in infrastructure in order to meet the growing domestic demand for soybeans. Argentina, Brazil, and the U.S. produce 85% of the world’s soybean supply, and the U.S. has been able to remain competitive due to its domestic and oceanic transportation systems. However, over the next 10 years global soybean trade is forecast to increase by 36% with Brazil taking the lead as the world’s top exporter as aging U.S. infrastructure systems put the U.S. at a disadvantage. U.S. transportation costs via the U.S. Gulf and the Pacific Northwest are currently less than Brazil’s costs for transporting soybeans from Mato Grosso through its port at Santos. But, Brazil is investing heavily in its transportation infrastructure and if the U.S. is to remain competitive with soybeans from South America which have a lower cost of production, the U.S. must do the same. The report goes on to state that over the next 10 years the majority of the growth in demand for U.S. soybeans will come from domestic sources creating the need to invest in the country’s highways and bridge infrastructure to support inter and intra-state transportation by truck.
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