Bangladesh`s leading soy processors and feed importers have signed agreements worth over $1.25 billion to import US soybeans and soybean meal, aiming to boost the country`s protein and feed industries while narrowing the trade gap with the United States.

The deal, representing nearly 2.5 times the country`s previous US soy purchases, was signed between Bangladesh`s leading soy value chain companies and the United States Soybean Export Council (USSEC) at two ceremonies in a city hotel on Tuesday, attended by importers, mill owners, diplomats, and business leaders.

Participating Bangladeshi companies include Meghna Group of Industries, City Group, Delta Agrofood Industries Ltd, Mahbub Group and KGS Group, all of whom have committed to scaling up imports over the next 12 months.

At the signing ceremony, Kevin M Roepke, USSEC`s Executive Director for the Middle East, North Africa, and South Asia, said the move would deliver a major boost to Bangladesh`s poultry, aquaculture, and dairy sectors.

"We are very proud of our bilateral relationship," he said, highlighting the role of U.S. soy in ensuring nutrition, quality, and sustainability in Bangladesh`s food systems.

USSEC CEO Jim Sutter echoed the sentiment, calling the agreement a `historic milestone` that deepens economic and nutritional ties between the two nations.

"Our US soybeans play an integral role in the world`s food systems, providing nutrition and food security across borders," Sutter said in a virtual address, emphasizing that US soybeans` low carbon footprint and zero-deforestation record align with Bangladesh`s growing demand for sustainable inputs.

"By investing in US soy, you are shaping a better tomorrow, proving that sustainability transcends borders," he added.

Amirul Haque, Managing Director of Delta Agrofood Industries Ltd, said the US soy deal could pave the way for $3.5 billion in total US imports if crude oil and LPG are added to the mix.

"Higher imports of U.S. products will help reduce Bangladesh`s $6 billion trade gap with the USA," he said.

MGI Director Tanjima Mostafa said Meghna Group plans to import one million tonnes of soybean products this year-the largest single import of its kind in Bangladesh.

"We`re continuing to invest in logistics and focusing on end consumers," she added.

Echoing the optimism, City Group Managing Director Md Hasan said importing high-quality soybeans in such large quantities would bolster both nutrition and food security across the country.

Tracey Ann Jacobson, Charge d`Affaires of the US Embassy in Dhaka, said the agreement reflects Washington`s commitment to deepening economic relations with Bangladesh.

"Between 2024 and 2025, we aim to increase agricultural exports to Bangladesh from $779 million to $1 billion," she said, adding, "today`s signing is part of that effort."

Jacobson added that U.S. soybean meal exports to Bangladesh had already surged-from $5 million in 2023 to $20 million in 2024, and are projected to reach $86 million this year.

*She expressed optimism that the growth would continue, citing US soy`s superior quality and its vital role in Bangladesh`s livestock and fisheries sectors.

Under the new partnership, Bangladeshi processors and importers will not only increase soy purchases but also collaborate with USSEC on sustainable sourcing, leveraging the US Soy Sustainability Assurance Protocol (SSAP) to reduce environmental impact.

The deal also supports USSEC`s Right to Protein campaign, promoting awareness about protein consumption and nutritional development in Bangladesh.

Md Taslim Shariar, Deputy General Manager of Meghna Group of Industries, hailed the agreement as a game-changer for the nation`s crushing and feed industries. "This is a milestone for Bangladesh. The more we crush, the more we achieve food security," he said.

"It accelerates growth in the poultry, feed, and edible oil industries. Bangladesh and US soy grow together-building a legacy of economic resilience, industrial growth, and nutritional excellence for generations to come," he added.

According to the U.S. Department of Agriculture (USDA), US soybeans ranked as Bangladesh`s No.1 agricultural import in 2024, valued at $350 million. The country has also become South Asia`s strongest market for U.S. soy, with soybean meal imports up 650% year-on-year.

In contrast, Bangladesh`s exports to the US totaled $8.78 billion last year, underscoring a dynamic and expanding bilateral trade partnership.

Industry insiders say Bangladesh`s processors have long preferred US soy for its consistent quality. "The quality of US soybeans is far better than other origins," said Delta Agrofood`s Amirul.