One year after tsunami, U.S. Soy Foods have Helped in Relief and
Indonesian Soy Foods Manufacturers Continue Commercial Success

December 21, 2005

For more information, contact:
Karen Edwards, World Initiative for Soy in Human Health 703-281-7600

In the year following the tsunami, Indonesian noodle manufacturers have continued to sell U.S-soy enriched noodles and other foods in growing commercial markets in their country. On December 26, 2004, the biggest earthquake in four decades triggered a tsunami that killed 125,000 Indonesians and left more than 500,000 people displaced from their homes. International attention has focused on disaster recovery, and U.S. soy-based foods were used in initial relief efforts. At the same time, Indonesian noodle manufacturers exemplify the ability of developing country entrepreneurs to succeed with sales of high-protein foods made with U.S. soy. They offer soy-enriched steam dried noodles in commercial markets in Java, Bali and Lombok, areas that were not hit by the tsunami.

“Following the conclusion of a successful soy-enriched noodle distribution program undertaken by the private voluntary organization, International Relief and Development (IRD), two of the four producers decided to incorporate the soy-enriched steam dried noodle into their regular commercial product mix. It continues to be sold successfully into the market,” says Asia Regional Director for United States Soybean Export Council (USSEC) John Lindblom. “The hope is that the soy-enriched rice-based noodle, which is still being distributed by IRD, will achieve similar commercial success.”

“I continue to be very optimistic about the U.S. soy flour market in Indonesia,” says Cargill Soy Protein Solutions Market Manager Gregg Nelson who is based in Cedar Rapids, Iowa. “Cargill is very willing to work with all the partners in this effort--both in Indonesia and the United States--to encourage further market growth.”

U.S. soybean grower efforts played a key role in building this market. With grower dollars invested by the Minnesota Soybean Research and Promotion Council, the American Soybean Association’s International Marketing Program helped develop the soy-enriched noodles at Singapore Polytechnic’s Noodle Development Research Center. Starting in 2000, IRD worked with these products with funding from the U.S. Department of Agriculture (USDA). Initial shipments of soy flour were under USDA’s Food for Progress program, thanks to efforts from the World Initiative for Soy in Human Health (WISHH) Program. IRD also utilized soy-enriched biscuits and snack noodles in its Student Health Improvement Project in approximately 500 Indonesian schools. The soy flour used in the program was supplied by Cargill from its plant in Cedar Rapids, Iowa.

IRD has also recently initiated two other soy-based efforts in Indonesia. In August 2005, USDA provided 2000 metric tons of U.S. No. 1 grade soybeans for production of an iron and iodine fortified soy sauce. For this program five Indonesian soy sauce manufacturers based in Java have been selected to produce 20 million liters of soy sauce that will aim to improve nutritional benefits but will be sold at a competitive price with non-fortified products.

The second IRD effort continues their work with Indonesian companies to sell soy-enriched rice noodles. IRD’s initial Indonesian project with wheat noodle manufacturers began in 2000 and ended in March 2004. It allowed two factories to find a sustainable market for soy-enriched wheat noodles. The food aid work resulted in sustainable businesses and ongoing sales from the United States. To expand the success, USDA provided 1,700 metric tons of soy flour from Cargill’s Cedar Rapids facility and 25,000 metric tons of wheat in November 2005 for IRD’s program with four companies in Central Java.

The noodle manufacturers helped to feed more than 4 million consumers who have purchased the soy-enriched noodles. They also created jobs for more than 1,000 workers at the noodle factories themselves. One of the noodle manufacturers stated that, “this program has helped us not only to survive but has given us the opportunity to expand.”

Prior to the December 2004 devastation, the U.S. already held close to 90 percent share of the more than 1 million ton market for imported soybeans, mostly used to produce tempeh, according to Lindblom. The soy-enriched noodles represented a newer commercial opportunity. More than 60 percent of the wheat consumed in Indonesia is eaten in the form of noodles, so this represented a potential market of 50,000 metric tons of additional exports for U.S. soybean producers, if only 30 percent of the existing noodles incorporate soy.

In addition to the commercial market, U.S. soy products contributed to relief efforts following the tsunami. The Minnesota Research and Promotion Council gave $5000 to distribute soy-enriched snack noodles and biscuits to school children in tsunami-affected areas. Quickly after the earthquakes, IRD donated U.S. soy products to the Indonesian Ministry of People’s Welfare. The donation included 17.5 metric tons of soy-enriched biscuits, 17.5 metric tons of soy-enriched snack noodles, 1 metric ton of soy-enriched rice noodles and 1 metric ton of soy-enriched ready-to-eat macaroni.

About WISHH
State soybean grower organizations launched the WISHH Program in 2000. WISHH is headquartered at the American Soybean Association in St. Louis, and it creates sustainable solutions for the protein demands of people in developing countries through the introduction and use of U.S. soy products. WISHH has worked in 23 countries, ranging from Africa to Asia to Latin America, to improve diets as well as encourage growth of food industries. For more information about WISHH, please visit www.wishh.org.