Extra Value Meal

Soybean Industry Seeks Solutions to Address Feed-Ration Needs

The USB national soybean checkoff is exploring value-enhancing opportunities, such as reduced carbohydrate meal and enhanced nutritional energy meal, said Jared Hagert, USB vice chairman. (Progressive Farmer image by John Borge)

U.S. soybean meal may be a perennial favorite in swine and poultry feed rations, but it's not the only game in town. Ingredients such as dried distillers grains, canola meal and synthetic amino acids are formidable competitors. Mixed U.S. soybean component quality can also erode market share.

That concerns Jared Hagert, a soybean farmer from North Dakota and vice chairman of the United Soybean Board (USB). He raises hard red spring wheat, dry edible beans, corn and soybeans.

"We are located near Grand Forks, and the soybeans that leave here head to overseas feed processors. That makes protein and oil composition very important to our price," he said. "We have to send top-quality soybeans, since 97% of the meal feeds animal agriculture."

Animal nutritionists are looking closer at soybean meal composition, confirms Nick Bajjalieh, president of Integrative Nutrition Inc., based in Decatur, Ill. Crude protein content is no longer the only measuring stick for soybean meal value. Amino acids in soybean meal can be assessed to complement nutrient characteristics of other feed ingredients and achieve specific levels in feed rations.

"Corn is often the base ingredient in feed rations for swine and poultry, but soybean meal serves as a source of essential amino acids otherwise limiting in corn," he said.

Domestic soybean meal users agree that composition is important to their needs. Roy Brister, director of nutrition and feed milling for Tyson Foods, said a bushel of soybeans produces about four times more meal than oil. He contends since soybean meal brings in more dollars than oil, the industry should pay attention to meal composition to maintain demand.

"With meal being the major value driver of soybean prices, we need to enhance and grow that value, especially with offshore meal producers gaining ground and the threat of cheaper alternative ingredients," Brister said. "Enhancing the nutritional value of soybean meal will help keep those alternatives at bay and allow U.S. farmers to have more reasons to plant soybeans."

Hagert said that's why the soy checkoff is exploring value-enhancement opportunities for soybean meal, including reduced-carbohydrate meal and enhanced nutritional energy meal.

A BETTER PRODUCT

Reduced-carbohydrate meal would come from soybeans developed to produce significantly higher concentrations of protein and oil at the expense of structural carbohydrates. The higher protein and oil concentrations -- perhaps 23% oil and more than 35% protein -- could come without sacrificing yield potential, Hagert said. That means the soybean would produce approximately 4% more oil from a bushel and 4% less meal, but the protein levels in the meal would exceed 51%. High-protein meal currently is 48%.

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"The per-bushel value of the soybeans would rise from the sheer volume of oil produced and the higher concentration of protein in the meal. The more dense feedstuff could then be sold as a very high-protein meal or blended to bring commodity soybean meal up to higher standards. That would eliminate or minimize discounts or create price premiums," Hagert said.

Brister agrees. "Reducing carbohydrates in soybean meal through processing or breeding would increase the energy value of the meal for poultry, which increases the value of the meal to feeders," he said. "It is feasible to remove these carbohydrates and, with some time and effort, improve the value of U.S. soybean meal versus alternative proteins and meal."

USB anticipates developing reduced-carbohydrate meal would require considerable investment to bring varieties to market and provide the technologies needed to efficiently and accurately measure meal quality along the value chain. In addition, segregation and sorting early in the handling stage to preserve the value differential could create additional costs.

"Until all soybeans and meal are reduced-carbohydrate varieties, identity preservation would be necessary, and processors initially may not be in favor of that," Brister said.

ASSESSING VALUE

Another opportunity is enhanced nutritional energy meal production. Soybean varieties that produce meal with less raffinose and stachyose, and higher sucrose content can produce more nutritional energy. Other benefits, such as increased protein and reduced phytate, have also been associated with the trait, while oil and meal levels are similar to standard commodity soybeans.

"Assuming amino acid characteristics are maintained, additional nutritional energy represents tagalong value because it allows livestock feed manufacturers to reduce the amount of energy supplements they need to add to rations," Bajjalieh said. "Increasing nutritional energy in soybean meal improves the overall nutritional bundle through higher calories, which further contributes to its nutrient density. Higher nutritional energy means meal value is increased."

In a competitive ingredient environment, Bajjalieh said that may support higher use and/or prices for soybean meal. "The end user determines market value," he said.

As with the reduced-carbohydrate meal, additional investment would be required to develop varieties, bring them to market and maintain segregated handling channels. "Since the meal has essential amino acids for poultry and swine, making incremental changes in the nutritional bundle can add value and hopefully increase market share," Hagert said.

Bajjalieh said the focus for compositional improvement is typically on the development of new varieties. However, compositional diversity in current varieties may be a near-term opportunity.

"Enough variation exists in commercial lines that near-term beneficial change is possible. By utilizing varieties already grown by farmers, yield can be less of a concern," he said.

GOOD OPTIONS

Based on observations from side-by-side yield trials with commercial or near-commercial varieties, he adds soybean meal composition can be improved without negatively affecting yield.

"Within the range of protein and amino acid levels observed in these trials, relationships between yield and compositional characteristics tended to be weak," Bajjalieh said. "By focusing on better management and use of what we already grow, we don't have to wait five to seven years for plant breeding to develop the right soybeans."

Farmers already can talk to their seed dealers about the characteristics they want in their soybean seed, Hagert adds. He recommends farmers visit www.growsoybeanvalue.com for more information.

"We are starting to gain momentum to have varieties with greater protein and no yield drag," he said. "As a soybean farmer, I look for the maximum value I can get from every acre."

Soybean meal with increased nutrient density should create future value opportunities for U.S. soybean farmers. Computer feed ration programs determine which ingredients fill specific roles in given feed formulations based on nutritional characteristics and cost. The greater the nutritional value of soybean meal, the more competitive it becomes.

However, Bajjalieh said the true inherent value of soybean meal and other ingredients is largely unknown beyond nutritionists, and that is a challenge for making it part of market pricing. "Most people don't see the value of nutritional components in the ration, but they determine how much soybean meal is used and the cost a feed manufacturer is willing to pay," he said. "If you increase key nutrients in the meal, you improve value and support a greater price or use."

As a nutritionist, Brister said he will continue to look for what brings the best nutrient package per dollar invested. "Soybean meal is a great product that could be better with a few modifications that would bring more value to farmers and feeders alike," he said. "I think failure to improve will threaten U.S. market share and reduce our ability to feed a growing population."


Editor's Note: Full Meal Deal is a continuing series on the opportunities and obstacles for U.S. farmers to improve the protein and oil content in soybeans.

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