Iowa Secretary of Agriculture Mike Naig says the state’s recent trade mission to Southeast Asia revealed significant opportunities for Iowa agriculture in Vietnam. The delegation included Iowa commodity groups representing corn, soybeans, pork, and beef, along with Iowa farmers and ag organizations who helped carry the message of what American agriculture can bring to an expanding market.
Naig says the visit reinforced just how quickly Vietnam is growing. The country has a population of more than 100 million people and a middle class that continues to expand as incomes rise. Delegates saw a country that is increasing its demand for protein, feed ingredients, and energy products. Naig says this creates openings for Iowa, allowing the state to help meet food and fuel needs while growing export volume.
One of the biggest developments was Vietnam’s decision to move to an E10 transportation fuel standard beginning in January. That fuel blend will be phased in and fully implemented by mid-summer. Naig says that change creates new opportunities for ethanol derived from Iowa corn. He says it also supports growth for distillers’ grains, soybean meal, and other feed products that help support Vietnam’s large livestock and poultry industries.
Iowa also sees potential in the country’s growing demand for animal protein. Naig says beef and pork play a major role in Vietnamese diets, and Iowa is ready to supply more of it. However, the delegation also heard firsthand about the global competition that exists for meat going into Southeast Asia. There are already strong export channels from Australia and the European Union, and pricing still plays a major role in market access.
Naig says removing tariffs is a key part of the ongoing negotiations between the United States and Vietnam and could eventually put American products on a level playing field. He says the upcoming trade agreement offers a chance to lower costs for American pork, beef, and grain products, which improves the outlook for Iowa farmers.
Delegates returned from Vietnam confident that the country wants American inputs and values the reliability of U.S. production. Naig says the Iowa group worked to open new conversations and strengthen existing trade relationships so the supply of Iowa grain, feed, and livestock protein can continue to expand in the years ahead.
