Wedoany.com Report-Aug. 26, A delegation from the All Pakistan Solvent Extractors’ Association (APSEA) visited Washington this week and finalized agreements with major U.S. soybean exporters, including Cargill, Louis Dreyfus Company (LDC), and Olam, to import 1.1 million tonnes of soybeans valued at approximately $500 million, according to Business Recorder.

The agreements aim to strengthen trade ties between the U.S. and Pakistan while supporting Pakistan’s edible oil and livestock feed industries. The imported soybeans are expected to largely replace existing supplies from Brazil, maintaining cost stability for Pakistan without adding financial strain. This shift is anticipated to help reduce the trade deficit between the U.S. and Pakistan by increasing U.S. agricultural exports.

The deals reflect Pakistan’s growing demand for soybeans, driven by the need for edible oil and high-protein animal feed, particularly for the poultry sector. By sourcing from U.S. exporters, APSEA aims to ensure a reliable supply chain to meet domestic consumption needs. The agreements also align with efforts to diversify import sources, enhancing supply resilience for Pakistan’s agricultural sector.

A representative from APSEA stated: “This deal is expected to significantly reduce the US-Pakistan trade deficit without putting additional burden on Pakistan as the purchases will largely replace existing supplies from Brazil.” The delegation’s negotiations focused on securing high-quality soybeans to support Pakistan’s processing industries while fostering stronger commercial relationships with U.S. suppliers.

The soybean imports will primarily support the production of edible oils and meal for livestock feed, addressing the rising demand driven by population growth and changing dietary preferences in Pakistan. The agreements with Cargill, LDC, and Olam, among others, ensure access to established global suppliers known for their expertise in agricultural commodities.

This trade initiative highlights the importance of international partnerships in meeting Pakistan’s agricultural needs. By securing these contracts, APSEA aims to stabilize supply chains and support the country’s food security goals. The deals also position U.S. exporters as key players in Pakistan’s import market, fostering mutual economic benefits.