Northland Inc

Market Opportunity Study in Northland for Sunflower and Soybean

Background
Soybeans, originally domesticated in East Asia around 5,000 years ago, have become a global agricultural powerhouse. First cultivated in China, soybeans spread to Korea and Japan before being introduced to Europe and the Americas in the 18th century. The crop's versatility, nutritional value, and industrial applications have driven its exponential growth, with global production increasing 15-fold since the 1950s. Today, the soybean sector is valued at USD 155 billion and is projected to reach USD 278 billion by 2031, growing at a compound annual growth rate (CAGR) of 6%.
Sunflowers, native to North America, have a rich history dating back to their domestication by Native Americans around 3000 BC. The crop was initially cultivated for food, medicine, and ceremonial purposes before being introduced to Europe in the 16th century. Russia played a crucial role in developing sunflower as a commercial oilseed crop in the 19th century, significantly improving oil content and seed size. Currently, the global sunflower market is valued at $23.01 billion (2024) and is expected to grow to $29.56 billion by 2029, with a CAGR of 5.1%. Both crops have become integral to global agriculture, food security, and industrial applications, with ongoing research and development focusing on improving yields, sustainability, and adaptability to changing climatic conditions.

The Opportunity
The opportunity to develop a soybean and sunflower industry in Northland represents a significant potential for economic diversification and growth in the region, aligning closely with Northland Inc's Tuputupu Grow Northland strategy.
For Northland, if soybean and sunflower were to be successfully commercialised, this would provide existing landowners with the ability to improve productivity and diversify their farming systems. On a broader scale, this opportunity has the potential to positively diversify the horticultural sector in Northland, create opportunities for investment in processing facilities, and generate greater employment both directly and in associated service sectors.