Category: 3. Business

Myanmar’s tourism industry experienced unprecedented growth between 2011 and 2019, fueled by policy reforms, foreign investment, and international interest. The sector received significant foreign investment and saw rapid hotel expansions during this period. The upward trajectory was interrupted by the COVID-19 pandemic in 2020, followed by geopolitical challenges and natural disasters. The analytical note is intended to provide a historical context of Myanmar’s tourism developments since opening-up in 2011, while offering a narrative on the outlook ahead. This comes at a juncture where the tourism industry has rapidly evolved into a crucial pillar of Myanmar’s economy and a key driver of its social and economic development.

Introduction

The Soybean Innovation Lab (SIL) introduces readers to the question whether Sub Saharan Africa (SSA) presents a new market opportunity for US soybean growers. Over the next three weeks SIL and farmdoc will deliver three articles on the topic of Africa as a potential export market for US soybeans. The African market presents a very complex landscape. While it is large, diverse, and growing rapidly, there exists great uncertainty, significant business risks, and demand for soybean and associated products are just beginning to emerge.

This first article in the series focused on the larger food and oil trends dominating the African continent (see farmdoc daily from November 13, 2025).  Today’s article delves into the import flows of soybean, oil, and meal into Africa.  The third article will wrap up the series by outlining four specific country examples – Egypt, Ghana, Nigeria, and Tanzania – touching on their imports of soy and soy products, logistics infrastructure, and existing policies on genetically modified soybean imports. The third and final article will also include a relevant literature review on the subject of soy trade and Africa.

Soy Import Demand in SSA

Is SSA soy import demand significant, or at least potentially significant?  The answer is yes. Soy product demand is potentially very significant.  Using the soybean equivalent import metric, Africa imported a soybean equivalent of 2.1 billion bushels on average per year for the period 2010-2022.  That equals the production of about 40 million acres, about 47% of US plantings (see Figure 1).  Most of that value results from palm oil imports (64%).  Soybean oil, meal, and grain imports amount to 21%, 8%, and 7%, respectively.

The Africa soybean grain import equivalent metric comprises the sum of: 1) soybean imports, 2) soybean oil imports, 3) soybean meal imports, and 4) palm oil imports all corrected to soybean grain equivalents.  That is, based on current soy and palm product imports, were it grain, the metric captures how much grain would theoretically be demanded by Africa’s processors and manufacturers. The grain equivalent metric melds both current import activity and the potential to expand soybean export demand by taking market share from palm oil.  The equivalent metric, when measured in bushels and acres also allows comparison with US production.

These imports grew at a compound annual growth rate (CAGR) of 3.82% between 2010 and 2022.  Soybean grain imports lead the group growing at a CAGR of 8.04%, with palm oil, soybean oil, and soybean meal growing at 4.46%, 2.05%, and -0.34%, respectively.

African soybean production currently amounts to 270 million bushels or about 6% of US production and 2% of global production (see Figure 2).   Global soybean output over the last ten years has grown at a CAGR of 2% while African production has grown at an annual rate of 11%. While growing rapidly, Africa will remain far from being self- sufficient in the future and require significant imports. For example, forecasts to 2050 show Africa would still only be able to supply 35% of its current soybean equivalent import demand, even assuming the current soybean production growth rate.

Finally, African soybean processors in the 1960’s had very little use for soybean, processing less than 20% of the region’s soybean crop to produce food oil (see Figure 3).  Over time, processors have expanded capacity and by 2002 the industry switched from an under capacity position to overcapacity where local supplies were not sufficient to meet demand resulting in significant acceleration in the imports of soybean grain.  Most recently, processors are 40-60% overcapacity relative to domestic supply and import about 200 million bushels of soybeans to keep their factories operating.  Demand for soybean grain imports since 2010 has been quite fast with a compound annual growth rate of just over 8%.

Note: The Soybean Innovation Lab (SIL) at the University of Illinois is the world’s leading organization focused on establishing soybean as the feed, oil, industrial materials, and biofuels standard in Sub Sharan Africa (SSA).  SIL’s strong network across 31 countries, experienced team, track record of success, and partners on the ground support clients looking to serve the fastest growing and a potentially large new soy market.

Baker McKenzie, together with its member firms Baker McKenzie Wong & Leow in Singapore and HHP Law Firm in Indonesia, has advised Twinwood Family Holdings Limited, part of the Sampoerna Strategic Group (“Sampoerna Group”), on the divestment of its entire 65.721% stake in PT Sampoerna Agro Tbk (“SGRO”), to AGPA Pte. Ltd., a subsidiary of POSCO International Corporation (“POSCO International”; Stock Code: 047050.KS), a Korean conglomerate engaged in trading, energy, steel, and agribusiness.

The deal represents a key milestone in Sampoerna Group’s business transformation, enabling the company to seek new opportunities that are in line with current business needs and market trends. The transaction also marks a new chapter for SGRO as it embarks on the next phase of its growth under POSCO International’s management control.

Indonesia’s palm oil industry accounts for around 60% of total global production, with crude palm oil exports of about 50% of total global exports. SGRO is a leading listed company in Indonesia operating palm plantations across Sumatra and Kalimantan. It also owns a specialized palm seed subsidiary and research institute that together hold the second-largest share in the domestic palm seed market.

The cross-border deal team was led by Principals Theodore Heng (M&A) and Bee Chun Boo (M&A), with the support of Senior Associate Alexa Jiang, Associate Gerald Lim and Trainee Willy Wai in Singapore as well as Partner Daniel Pardede (M&A), Associate Partner Bimo Harimahesa (M&A), Senior Associate Bratara Damanik and Associate Naztasha Cesty (Capital Markets) in Jakarta. 

The core team was further supported by multidisciplinary experts across Singapore, Indonesia, Seoul and Dubai, including: Principals Shih Hui Lee (Tax Advisor) and Emmanuel Chua (Dispute Resolution); Partners Iqbal Darmawan (Capital Markets), Seong Hoon Yi (M&A) and Stephanie Samuell (M&A); Senior Associates Santri Satria and Shawn Joo; and Associates Ernest Low, Sharon Tay, Novrita Nadila Humaira, Devinka Adira, Samuel Evan Hardy, Jose Guardiola and Pricilla Patricia.

With more than 2,700 deal practitioners in over 40 jurisdictions, Baker McKenzie is a transactional powerhouse. The Firm has the broadest M&A footprint of any law firm globally, with more than 1,300 locally qualified and globally experienced M&A lawyers. The team excels at advising clients on their most complex, cross-border M&A matters and has advised on more than USD 600 billion in M&A transactions in the last five years (Refinitiv; 2020-2024).

 

Real estate agents in Victoria will be legally required to reveal a property’s reserve price a week before auction, under nation-first laws to crack down on underquoting.

The Allan government on Thursday announced the major reform that would be introduced to parliament next year.

Under the changes, agents must publish the owner’s reserve price at least seven days before auction day or a fixed-date sale. Real estate agents that fail to disclose within the timeframe will be unable to proceed to auction or sale.

Illegal underquoting is an industry tactic used by some agents who advertise a property for less than the estimated selling price or the owner’s asking price. They do this to draw buyers in and drum up competition.

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Victoria’s consumer affairs minister, Nick Staikos, said the government wanted to ensure the housing market to be fair.

“Underquoting isn’t fair and it’s young Victorians and families paying the price,” he said in a statement.

Last year, a Guardian Australia analysis of property sales data showed underquoting (here defined as any sale where the final price exceeds 10% of the pre-sale price guide) is more prevalent in Sydney (20% of sales) and Perth (18%), and least prevalent in Canberra, Hobart and Darwin.

The analysis found the mismatch between the price guide on property ads and the final sale price was worse for houses than townhouses or apartments and is much more likely when the property is being sold at auction than at private sale.

Under the changes, real estate agents would be required to update all marketing materials to reflect the reserve price and stop using any previous advertising that does not contain the reserve price.

The proposed laws come after the Victorian government earlier this month introduced stricter guidelines for agent’s selection of comparable properties to determine a home’s price guide.

The guidelines aim to ensure agents use the most appropriate comparable local properties when determining a home’s likely price before auction, factoring in things like the dwelling’s age and any renovations.

Consumer Affairs Victoria can ask for evidence from agents showing how they chose the three most comparable properties, and penalties apply for not providing these records.

Last week, the NSW government announced new rules for real estate agents that would mandate price guides on all advertising and a statement of information offered to buyers backing up their estimated sales price – similar to Victoria’s existing system.

In NSW, agents who underquote can be fined up to $22,000 and lose their commission and fees earned from the sale of an underquoted property.

In Victoria, agents who underquote risk fines of more than $11,000 for each breach, or penalties of over $38,000 under the Estate Agents Act.

But the head of consumer research at Finder, Graham Cooke has previously told Guardian Australia these regulations often don’t work – and underquoting keeps happening.

Story Continues