June 18, 1999

The American Soybean Association says a decision by Rail Grain Receivers to import up to 75,000 tons of soybean meal "makes no sense." High quality U.S. soybean meal is available at low cost, says ASA.

"This decision to import soybean meal when we have the largest U.S. supplies of soybeans and soybean meal as well as the lowest prices we've seen in over a decade makes no sense," said ASA President Mike Yost. "Trade sources and market analysts tell us RGR is most likely losing $5 per ton on this deal, so it is hard to understand why these companies would turn their backs on the very farmers who have supported them during hard times."

ASA repeatedly asked RGR and its members to reconsider the decision to import soybean meal, but ASA said it learned that the first of three intended shipments now is on the way and scheduled to dock in Wilmington, NC, today on a ship named the Calypso N.

RGR, Rosehill, NC, is a cooperative buying group. Members include Murphy Family Farms, Carroll/Smithfield, Prestage Farms, Nash Johnson & Sons Farms and Goldsboro Milling. RGR has said high U.S. transportation costs prompted the imports.

Cost estimates from the ASA, compiled from sources and market analysts, were provided RGR last month for review and comment. RGR was asked to share details of the purchase so that ASA more effectively could address legitimate transportation issues. RGR has not responded with any information, ASA says.

"We want to work with RGR to make sure that U.S. soybean farmers remain the top quality suppliers of affordable soybean meal," said Yost, "but we can't work with them if we don't have the information we need to solve the problem."