St. Louis, Missouri
January 2, 2009
Soybean farmers are helping to
meet growing global demand by planting food-grade soybeans for
processors that send their beans to markets such as Asia where
the beans are used in soy-based food products such as tofu and
miso.
Soybean growers are expanding their soybean portfolios by taking
advantage of the premiums being offered for planting
enhanced-quality traits such as food-grade, Identity Preserved
(IP) and non-GMO. With the growing demand for these
enhanced-quality soybeans from overseas customers, premiums for
these soybeans are most likely going to continue rising.
What these premiums also signify is the tremendous demand for
these unique soybeans. Consumers are willing to pay a higher
price for enhanced-quality soybeans, and soybean handlers are
willing to pass that along to the farmers.
“The demand for these soybeans is exploding. Food-grade is the
same way; everybody wants to buy organic,” said Kevin Glanz, a
soybean farmer from Manchester, Iowa. “If you put a pencil to
it, there is more profit in growing these types of specialty
beans. This year, the premium for non-GMO beans was $3.40 a
bushel. On 10,000 bushels, that’s $34,000 in extra profit.”
Trends indicate that demand for enhanced-quality soybeans is
continually increasing, but production acreage is not meeting
the demand, culminating in higher prices. Annually 60 million
bushels of soybeans are exported at a premium for food-grade
uses. Customers in Asia, the likely destination for many of
these food-grade soybeans, are adamant about buying non-GMO
varieties.
“The demand is significant,” said Bob Sinner, president of SB&B
Foods. “The real issue is having enough supply to meet the
demand for food manufacturers. At the end of the day, everyone
has to eat. The economies of Southeast Asia are improving, and
the first thing that happens when economies improve is they want
to eat better.”
The number of non-GMO, food-grade and Identity Preserved
varieties becoming available offer more profit opportunities for
farmers. This year’s production acreage for low-linolenic
soybeans, for instance, is estimated at between 2.5 and 3
million acres. Next year will see a high-oleic variety added to
the list. Both of these examples are being sought by the food
industry because they result in oil with no trans fat.
“With the economic incentive to grow non-GMOs and looking at the
cost of conventional chemicals, the cost of growing non-GMOs is
actually less,” said Ken Dalenberg, a soybean farmer from
Mansfield, Ill. “We’ve had very good success with non-GMOs being
very competitive with commodity beans.”
Infrastructure that is already established in the United States
offers soybean farmers a competitive advantage from which to
work in growing a diverse list of soybean varieties. U.S.
facilities can offer storage and shipping space, as well as the
record-keeping expertise to accommodate this diverse supply that
must be kept segregated and traceable.
For a look at how the premiums for growing food-grade soybeans
can improve their operation’s bottom line, farmers can visit
www.soybeanpremiums.org.
USB is made up of
68 farmer-directors who oversee the investments of the soybean
checkoff on behalf of all U.S. soybean farmers. Checkoff funds
are invested in the areas of animal utilization, human
utilization, industrial utilization, industry relations, market
access and supply. As stipulated in the Soybean Promotion,
Research and Customer Information Act, USDA’s Agricultural
Marketing Service has oversight responsibilities for USB and the
soybean checkoff. |
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