OTTAWA – The soybeans coming out of Eastern Ontario are being recognized as some of the best in the world.

But that’s not enough to go out and plant them.

Enormous opportunities, particularly in Japan, are making growers sit up and take notice of what may be a very lucrative future for agriculture in this area.

David Hendrick, owner of Hendrick Seeds, in Inkerman, has been a big part of that market development over the past 8 years and knows that the value added food grade soybean is where the action is going to be. Hendrick shared his expertise with other farmers and others from the agriculture industry who attended the July 4 Crop Day at the Agriculture and Agri-food Canada Experimental Farm in Ottawa. His main message was that with strong momentum in Japan for health foods, Eastern Ontario growers, processors, and exporters have a pipeline into that market..

"Now the Japanese know that Eastern Ontario is one of the best places to buy soybeans, one of the lowest risk areas," said Hendrick.

"Japan is a major player in the multi-billion dollar health food industry and it will expand substantially there, exponentially over the next decade. It represents a substantial opportunity for the protein market for food grade soybeans in Eastern Ontario because food grade soybeans will play a significant role in that expansion. That, for us, is what lights the fire to keep the research going and to continue to work with our Japanese partners."

He said that Canada is viewed as a "richly blessed country with unspoiled nature." So nature-based goods from Canada are readily accepted.

"The doors are open already."

Hendrick says there are two main points of entry into the market. There are the large trading companies and the family based companies. He strongly suggests that anyone thinking about getting products into Japan should seek partners in family based companies.

"They are more value oriented and not price oriented. They are quite interested in partnerships and investment arrangements.

"They like to develop long term business relationships and plans that go long term into the future."

Driving the market is a designation on some products called "Food for Specified Health Use", or FOSHU, as it’s been known in Japan since 1991.

"They are looking at potential markets for soybeans that improve health and reduce diseases. ThisZ is becoming pre-eminent in terms of characteristics of products they want to introduce in the future."

The Japanese view of Canada as a "pristine" land gives growers in Eastern Ontario an advantage.

Hendrick pays a lot of attention to the relationship he has with his buyers in Japan, who participate in annual meetings with growers in Eastern Ontario. They also connect with growers via a satellite based computer network which allows buyers to see exactly what is going on in the fields. They also play a big role in research.

"The research program is Japan-driven and was started at the suggestion of Japanese buyers. Now we have research people in Japan interested in us so maybe we will do some future research work there."

Hendrick said it’s important to always be looking for opportunities that are mutually beneficially to growers, processors and exporters.

From his perspective as owner of Hendrick Seeds, he said he thinks it is important to include growers in many aspects of securing the growing Japanese market.

"What attracts growers is the opportunity to make a premium. What’s discussed at every growers’ meeting is does the premium represent the effort I have to put into a particular exercise? If properly rewarded growers will follow the opportunity. But farmers are proud of the work that they do and they like to be recognized for the work that they do."

Growers are heavily involved in research and it has its own rewards, he said.

"When you have to work hard to generate a product that the customer wants you feel a sense of pride in terms of developing that relationship and the growers feel a sense of pride when they participate in the research program. It’s not to say it’s a bed of roses all of the time, but it’s one of the reasons why they continue to come back and try it again."

Hendrick said there used to be very little food grade soybean business in this area, but now exporters are approaching growers in the hope they will want to get involved.

"Because of that, growers are in a competitive position and there is negotiation that goes on, depending on the company."

Growers also realize that the structured nature of the food protein market, in terms of meeting the terms of contracts, makes many growers improve their own business management practices.