Soybean Pipeline - American Palm Oil Council

Soybean Pipeline:
Moving Beyond A Commodity
Mark Winkle, Ph.D.
Senior Director of Domestic Programs,
United Soybean Board

Outline
• QUALISOY
• Status of the current U.S. soybean oil market
• Marketplace opportunities and challenges
• Pipeline of new traits – meeting the needs of
industry

QUALISOY Industry Coalition

QUALISOY Board
Involves all members of the soybean value chain

Why QUALISOY?
QUALISOY as a persuasive business platform:
• Broad-based U.S. industry coalition
• Help initiate market pull-through
• Expedite the identification of key traits
• Accelerate trait commercialization
• Enable sharing of trait discoveries to promote
widespread acceptance
• Promote market acceptance of traits

Current Status of the U.S.
Soybean Oil Market

North American Oilseeds
2008 Acreage Oil Production (billion lbs.)
USDA , StatsCanada and Galloway & Associates

Soy Oil Use in the U.S.
USE PERCENT BILLIONS OF
POUNDS
Salad/Cooking Oil 66 10.3
Baking/Frying 28 4.4
Margarines/Spreads 5 .8
Other Edible 1 .2
TOTAL 100 15.7
Source: Census Bureau, USDA 2008

U.S. Edible Oil Usage
(ooo)
(ooo)
Left Axis
Right Axis
Source: Census Bureau, USDA 2008

The Soybean Oil Value Pie
(000) lbs. oil
Galloway & Associates, 2009

Marketplace Opportunities
and Challenges

Food Industry Viewpoint
• Soybean oil a food industry favorite
– Favorable price structure
– Wide range of functionality
– Familiar, predictable flavor characteristics
• Soy does not camouflage or overpower food flavors
– Abundant availability
• Large number of potential suppliers
– Secure supply from crop year to crop year
– Short pipeline from production to usage

Macroeconomic Analysis
U.S. Edible
Fats & Oils
Consumption
(million lbs.)
• Vegetable oil usage is down
--Recession
--Health/dietary concerns
Source: US Census Bureau & USDA

Food Industry Trans Solutions
• Naturally Stable Oils
• Blends
– Mix 5-10% hard stock (no trans fats), 90-95% unhydrogenated
oils
– Interesterify to customize desirable melt points
• Modification of Processing Techniques
– i.e. modifying hydrogenation process
• Catalyst, time, temperature, pressure
• Trait-Enhanced Oils
– High-oleic canola, low-linolenic soy
• Gels, Emulsifiers and Other Texture-Building Agents

Trans Fat Replacement Oils
Trans-Fat Replacement Oils
Low-Linolenic Soy
High-Oleic Canola
Palm
Other Stable Oils
TOTAL Estimated Supply
Lbs. of Oil
1 billion lbs.
600 million lbs.
1 billion lbs.
1 billion lbs.
3.6 billion lbs.
2008 estimates from fats and oils industry

New Traits to Meet
Marketplace Needs

Current Solution for Food
Industry
Low-Linolenic Acid Soybean Oil
• Maximum 3% linolenic vs. 7% in traditional
soybean oil
• Provided a soy-based solution to stability
without trans-fats
– One billion lbs. are being utilized annually
– Adequate oxidative stability in a broad range of
applications
– Appealing end product flavor
– Excellent shelf life characteristics

Next Innovations
• High-oleic soy ~ 2010/11
– 78-85% oleic
• High-stearate soy ~2012
– 18-25% stearic acid content
• High omega-3 soy ~2012
– 21–24% omega-3 content – 10x current content
• Mid-oleic/low-saturate soy ~ 2012/13
– 60%+ oleic/7% saturates

Soybean Industry has its Eye
on the Future

Soybean Industry Portfolio
Omega‐3
(Monsanto;
Bt/RR2Y
Steandonic Acid)
(Monsanto)
RR2Y
(Monsanto)
High
Stearate
(Monsanto;
DuPont)
High Beta‐
Conglycinin
(Monsanto;
DuPont)
Low‐
Phytate
(DuPont)
Low‐Sat
(Monsanto)
Dicamba Tolerant
(Monsanto)
Feed: High Protein
Soybean
(Monsanto; DuPont)
Omega‐3
(EPA/DHA)
DuPont
Rust
(Monsanto;
Pioneer
Yield
(Monsanto;
Pioneer)
Agronomic
Quality/Food
Nematode
Resistance
(Syngenta)
Antibody ‐
containing
(against E. coli
0157:H)
2010 2012
2020
Liberty
Link
(Bayer)
High‐Oleic
(DuPont)
Imidazolinone
tolerant
(BASF/Embrapa Brazil)
GAT/Glyphosate‐
ALS soybean
(DuPont/Pioneer)
Industry Inputs May 2009
Low‐linolenic
(Syngenta)
Mid‐Oleic /
Low‐Sat
(Monsanto)
Glyphosate &
isoxaflutole
tol.
(Bayer)*
Modified 7S
Protein FF
(Dupont)
Processing: High
Oil Soy
(Monsanto)
High‐Oleic,
Stearate
(DuPont)
HPPD
Toleran
t
(Syngenta
)
Herbicide tol.: 2,4‐D
and “fop”/ aryloxyphenoxy
propionate herbicides (Dow)
SCN
Monsanto; Pioneer
Disease
(Monsanto;
Pioneer)
Disease
(Syngenta)

Solutions Available in Short-Term
Low-Linolenic Soy
Mid-Oleic/Low-Sat Soy
High-Oleic Soy
High
Omega-3
Soy
High-
Stearic
Soy

Soybean’s Future Looks Bright
• Many soybean varieties with beneficial traits in the
pipeline
– Trans fat elimination
– Improved functionality
– Healthfulness
• Future crop plantings anticipated to be good
• QUALISOY positioned to help pave the way for a
healthy soybean industry