Iowa Farm Bureau President Brent Johnson joined Iowa Gov. Kim Reynolds last week in signing a memorandum of understanding to strengthen Iowa’s agricultural trade relationships in India, home to one of the world’s fastest growing economies. 

Johnson and Reynolds signed the memorandum of understanding (MOU) with CLFMA of India during the Iowa-India Business Summit in Mumbai. The summit was part of a 10-day trade mission involving Iowa agricultural and business leaders to explore mutually beneficial trade and investment opportunities.

CLFMA is the leading organization serving India’s livestock sector, representing more than 230 members of the animal protein value chain including feed manufacturing, poultry, dairy, aquaculture, veterinary services, and meat processors, distributors and retailers.

“India has the world’s largest population and a rapidly growing economy, which creates tremendous opportunities for Iowa farmers to expand their market reach and become a reliable supplier in the coming years,” Johnson said. “With more consumers entering the middle class every day, India’s increasing demand for higher levels of animal proteins aligns well with Iowa’s strengths in producing corn, soybeans, poultry and pork.

“Iowa farmers have never been more innovative, more efficient and more productive, and we stand ready to meet global demand for our products.” 

The MOU establishes an advocacy working group and delegation hosting exchange between the state of Iowa, Iowa Farm Bureau and the CLFMA.

The advocacy working group will focus on facilitating enhanced supply of Iowa products for India’s food and feed industry. 

As the leading producer of corn and second-leading producer of soybeans in the U.S., Iowa is uniquely positioned to help supply animal feed and energy uses in India, Johnson noted. Additionally, Iowa’s feed industry possesses leading technologies and knowledge that could benefit India’s growing animal feed sector.

The delegation hosting ex­­change will promote business interactions between the participants, including mutual exchanges of business delegations and market information as well as other cooperative activities promoting two-way investment. 

A growing market

India relies heavily on imports for its food and feed needs, ranking as the eighth largest global importer of agricultural and related products in 2023 with a market valued at $37 billion. The United States is India’s fifth-largest supplier of agricultural goods, representing 5.2% of the market. 

Ethanol was the second largest U.S. export to India at nearly $246 million in 2023, with potential to grow given the country’s goal to raise its ethanol blend rate to 20% by 2025 from around 15% currently. 

The ethanol push is expected to ramp up demand for corn imports, turning the country into a permanent net importer of corn. 

Other key U.S. ag exports to India include dairy products, animal feed and soybeans. While meat consumption varies by region and religious beliefs, urbanization is causing a rise in demand for animal protein products. Fish, poultry and water buffalo are the most consumed sources of animal protein, and India recently opened the door to U.S. pork imports. Eggs and milk are other dietary staples.