Embrapa Cerrados and the Korea Agro-Trade Center São Paulo, a South Korean company, signed a memorandum of understanding on Friday (19th) to establish a partnership between the two entities. The Korean company's goal is to source non-GMO soybean cultivars from Brazil that demonstrate good performance for producing food products widely consumed in Asia. The primary product is tofu, a plant-based cheese made from soy milk. Other products in high demand in South Korea include miso, a fermented grain paste, and beverages based on soybeans.
“In this initial phase, we have sent soybean grains from five cultivars developed by Embrapa Cerrados to be tested in South Korea. These are materials rich in protein, which is important for these food industries. From food processing tests, we can improve these materials until we achieve a cultivar that meets this demand,” explains Sebastião Pedro, General Manager of Embrapa Cerrados. He adds, "This partnership aims to identify conventional soybean cultivars with Embrapa's genetics developed for cultivation in the Cerrado that meet the consumption standards of the South Korean population."
The partnership also intends to share information about the characteristics that meet the South Korean market's needs. Based on this information, we will organize the supply chain to facilitate the provision of these grains to the South Korean market. Pedro continues, “Testing our materials in this market is the first step towards this goal.”
Young Jung, director of Korea Agro-Trade Center São Paulo, notes that soybeans are the second most important food crop in South Korea, second only to rice. More than 80% of the soybeans consumed are sourced from the United States. Currently, South Korea imports 180,000 tons of conventional soybeans, with 60% used for tofu production. Jung's company operates in several countries worldwide, exporting food to South Korea. The objective of this partnership is to diversify soybean suppliers for tofu production, aiming at ensuring food security in her country.
The agreement is supported by the Embassy of the Republic of Korea in Brazil. Upon learning about the composition of the materials selected by Embrapa Cerrados, which contain 42% protein, the Commercial Attaché of the Embassy, Kong Sung Ho, expressed great satisfaction with the high protein content, especially for tofu production. Sung Ho emphasizes, “With the establishment of this agreement, we hope to continue deepening relations between the two countries, both in the public and private sectors, especially in agriculture.”
However, Sebastião Pedro, also a researcher involved in soybean genetic improvement, explains that the protein content can vary depending on the location where the soybeans are produced and the climatic conditions. He stresses that South Korea is an important client for Brazil. “This approach, through the memorandum of understanding, will allow us to understand the real needs concerning the quality of soybeans that the country requires, and we will meet these needs as we understand them,” he assures.
Special Market Niche
Sebastião Pedro recalls that at the beginning of soybean production in the Cerrado, the goal was to produce ordinary soybeans for animal feed and oil production. “Brazil is a leader in global food production, and today, the Cerrado accounts for 60% of the country's agricultural output. Research is now focusing on strengthening soybean production for human consumption, with high-quality protein and oil,” he notes.
In most agricultural properties, soybeans are a commodity, traded by weight rather than quality. Within this reality, soybeans for human consumption represent a niche market. Because they are conventional cultivars, they must be produced in separate areas from genetically modified crops to avoid contamination.
After harvest, the grains need to be stored and transported separately. “The logistics of conventional soybeans are quite labor-intensive. The care starts with the seed, which must be pure and uncontaminated. Within the non-GMO soybean market, soybeans specifically for tofu production represent another niche, even more specific. The grain must be produced to meet this purpose, with Asian countries like South Korea and Japan willing to pay the additional cost for this differentiated logistics,” explains the General Manager.
Jung also warns that, being conventional soybeans, Embrapa's materials will undergo safety inspections to ensure that the samples do not contain genetically modified grains before proceeding to processing tests.
Sebastião Pedro emphasizes that, given this special market niche, it is important to monitor the supply chain, ensuring that good agricultural practices are applied to ensure sustainable production and safety for human consumption: “First, we will identify a soybean variety that is ideal for the South Korean market, and then we will organize production in Brazil with origin certification to guarantee the quality of our product.”
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