A fall in demand for domestic soybean meal, the first time in more than ten years, saw the North American operating arm of agri-giant Bunge announcing this week that it will idle production at Bunge's Marion, Ohio, soybean processing facility.
In addition to the drop in domestic demand, a smaller than anticipated US soybean crop harvested last autumn contributed to the company's decision.
John E. Klein, president and CEO of Bunge North America, announcing the measure this week, stated :"While we continue to believe thatlong-term prospects for soybean processing in the US are attractive, this is the first time since 1989 that domestic consumption of soybean meal is runningbelow the previous year."
He added that factors adversely affecting demand for soybean mealinclude lower demand from the pork and poultry sectors, which have recently experiencedproduction cutbacks.
On a positive note, Bunge reaffirmed that world meal demand continues to grow, with record soybean crops in South America reducing the demand for US meal exports.
Bunge North America, a food and feed ingredient company, supplies food ingredients to customers in thelivestock, poultry, food processor, foodservice and bakery industries.