The Bottom Line
Edible soybean oil has long been a key market for the U.S. soybean farmer. Recently, however, several factors have contributed to a loss of soy oil demand. In an effort to reclaim lost market share, provide a healthier product and drive demand for U.S. soy, the soybean industry has developed a new soybean trait that has the potential to be a game-changer. That trait is high-oleic soybeans.
Reclaiming Lost Market Share
The edible-oils market is by far the largest customer for your soybean oil. Snack foods, salad dressings, baked goods and fried foods all rely on soy oil.
The Bottom Line
High-oleic soybeans can enhance the market value of your soybeans without lowering your expectations in the field.
Enhancing Market Value
The high oleic trait focuses on an end-use customer for soybeans, providing direct benefits to consumers and opening market opportunities for you and all U.S. soybean farmers. It is the first biotech trait with health benefits for consumers and provides an opportunity to increase consumer acceptance of biotechnology. Increased biotechnology acceptance could help increase the demand and price for all soybeans.
High-oleic soybeans provide a healthier, more stable oil for food industry consumers than other competitive oils. High-oleic soybean oil holds the potential to prevent future loss and increase demand soybean oil demand atleast 3.8 billons pounds by 2020. That’s the oil from 341 million bushels of soybeans.
Performance in the Field
Seed companies recognize the need for these new soybean varieties to perform similarly or better than the varieties already planted in your fields. The high-oleic soybean varieties developed by Pioneer (Plenish) and Monsanto (Vistive Gold) followed extensive research timelines so farmers can expect the same or better yields from high-oleic soybeans than their current varieties. High-oleic varieties will include the trait and disease packages you expect and will be developed in several maturity groups with a range of agronomic packages.
The opportunity for U.S. soybean farmers to plant high-oleic soybeans will be based on locations where soybean processors and seed companies develop agreements.
Soy Oil Quick Facts
- The edible oils market is by far the largest customer for U.S. soybean oil.
- Soy oil makes up nearly 20 percent of the soybean, but between 25 and 50 percent of its value.
- To help eliminate or reduce trans fat, some companies have switched to high-saturated-fat oils, essentially addressing one problem while creating another.
- The U.S. food industry uses nearly 15 billion pounds of soybean oil annually.
- Soybean oil accounts for 65 percent of all vegetable oil used for human consumption in the United States.
- Since 2001, soybean oil has lost more than 3.5 billion pounds of edible oil demand.