USSEC resources convey value of U.S. Soy to international customers

BY COLBY PINKSTONE Senior Director of Strategic Programs, U.S. Soybean Export Council

U.S. Soy exports set a record of $40.42 billion in value during the 2021-22 marketing year, which wrapped up last fall. Global customers purchased the secondhighest volume of U.S. Soy to date, 71.79 million metric tons of soy products. That includes roughly 20 percent of Indiana soybean production exported from the state. Soy is recognized worldwide as a nutritious, versatile ingredient with strong sustainability credentials, and demand for livestock and aquaculture feed is growing alongside global demand for vegetable oil.

The U.S. Soybean Export Council (USSEC) works to differentiate the value of U.S. Soy in the animal protein, aquaculture, vegetable oil and soy food sectors. Through tools and programs, USSEC helps global customers understand the intrinsic value of soy grown by U.S. farmers. Not all soybeans are created equal, and USSEC believes that U.S. Soy delivers more value. For customers, knowing more about the source and quality of soy on the front end will result in optimal return on investment and performance throughout the value chain.

Calculating value

The days of evaluating soy based solely on crude protein are a thing of the past. USSEC uses an arsenal of data and research to help crushers and refiners effectively evaluate soybeans from different sources to make value-based purchasing decisions. A series of calculators help various customers quantify the value of U.S. Soy compared to soy from other origins.

The Soybean Value Calculator allows crushers to combine their data with global research to estimate the true, quality-adjusted whole soybean crush margin by accounting for factors like co-product yields, soybean meal nutrient value, soybean oil refining costs and plant efficiencies. This tool, released by USSEC last year, combines two previously developed calculators.

For soybean meal, we work with formulators, feed producers and nutritionists to evaluate the economic nutritional value of soybean meal of various origins. We help calculate value by using formulas representative of the regional feed manufacturers combined with feed formulation data and price information.

The results inform meal purchasing decisions helping U.S. Soy customers to deliver the highest-value, most consistent and economical product to their customers, whether they are supplying livestock, poultry, or aquaculture producers.

In the vegetable oil market, the quality and value of soybean oil depends on the quality of soybeans used and the refining process. USSEC’s Soy Oil Value Calculator allows crushers and refiners to make better decisions in their soybean and soybean oil purchases based on the refining differences of the origin of the oil. It looks at the rate and the variable cost of refining for soybean oil from the United States, Brazil and Argentina.

Calculations are based on almost 500 samples of crude degummed soybean oil collected in real-world conditions. The tool can show — in real-time — the economic advantages of choosing a particular soy oil. It analyzes soybean oil refining yield, revenue potential of refined soybean oil, cost of crude degummed soybean oil and refining costs.

For the soy food market, the online Specialty U.S. Soy Database facilitates decisions as food companies and foodgrade soybean buyers select U.S. Soy varieties by intended use in soy foods. In addition to sorting for uses like tofu, miso, soy milk, soy sauce and others, the database also shares protein level, quality, composition, and genetic characteristics.

It is the single largest source of information on the quality of more than 125 U.S. soybean varieties for use in soy foods. Food manufacturers importing food-grade soybeans from Indiana use it to determine specific varieties they want Indiana farmers to raise.

The goal of this suite of tools is to foster preference for U.S. Soy among customers worldwide. They tools capture the value U.S. farmers create as they continuously improve the efficiency and sustainability of a reliable soy supply.

Documenting sustainability

Many soy customers demand proof they are delivering sustainable nutrition and energy. U.S. Soy has the lowest carbon footprint compared with soy of other origins. U.S. Soy farmers produce more while using fewer resources, implementing farming practices that reduce carbon footprint and helping to preserve forestland.

USSEC helps customers demonstrate this with the U.S. Soy Sustainability Assurance Protocol (SSAP) and the program’s transferable certificates. The SSAP verifies that soybeans and soy products produced in the United States comply with a system of sustainability and conservation laws and regulations.

SSAP is one of the largest sustainability verification programs in the agriculture industry and has proven to be a highly reliable measure of U.S. Soy farmers’ commitment in areas like biodiversity, sustainable production practices, public and labor health and continuous improvement of farming practices.

Global customers chose SSAP certificates for 59 percent of U.S. Soy exports in Marketing Year 2021-22. SSAP shipments in 2022 increased 33 percent compared to 2021.

For companies that verify their soy purchases with SSAP certificates can also use the trademarked Sustainable U.S. Soy logo on their products. This label is now featured on more than 850 products made from U.S. Soy around the world.

Through both calculating value and documenting sustainability, USSEC helps U.S. Soy farmers capture the value they create as they raise a reliable, sustainable supply of soy.