Increasing demand for soybeans through animal agriculture is just one of the things your checkoff does. In Ohio, livestock and poultry consume the equivalent of 23 million bushels of soybeans every year – making them your number one domestic customer. Your checkoff wants you to support them as much as they support you.
To learn more about how your checkoff is supporting animal agriculture in Ohio, visit www.soyohio.org.
The Tradition Continues … Tune in to listen to Dale Minyo, Ohio’s most recognized farm broadcaster. www.ohioagnet.com
Fisher Announces Alternative Fuel Grants
$595,000 Awarded to Alternative Fuel Retailers and Biodiesel
Blending Facilities
Page 6
More than two years ago, the Ohio Soybean Association, in cooperation with the Ohio Corn Growers Association, Ohio Farm Bureau and Clean Fuels Ohio, worked to put Ohio’s first biofuels legislation (House Bill 245), which established the Alternative Fuel Transportation Grant Program (AFTGP), into law.
OBIC Makes Sound Investment with Soybean Oil Development Project
Page 8
Americans are on intimate terms with soybean oil, consuming it daily in food products ranging from french fries to granola bars, and margarine to mayonnaise. Many consumers are also familiar with the use of soy oil in biodiesel fuel and printing ink. Potentially soy oil can be used for many more industrial products that are currently being made from petroleum.
Ohio Soybean Checkoff Invests in Fuel Cell Technology
Page 9
Looking to the future, the Ohio Soybean Council (OSC) and the soybean checkoff have invested in the research and development of fuel cell technology that could someday be the solution to providing energy independence for Ohio farmers. Working with Technology Management Inc., a Toledo based company, OSC has committed two years of funding for this project and is currently in the second funding phase.
Soybean Checkoff Salutes Biodiesel Success
Page 10
As spring fieldwork and crop planting gets underway, the Ohio Soybean Council and soybean checkoff encourage farmers to use soy biodiesel in their tractors, vehicles and other diesel-powered equipment. Soy biodiesel helps increase engine lubricity and provides other diesel engine benefits. With increased availability throughout Ohio, it offers a great alternative to petroleum.
About the cover
Soybean research and new use development is growing at a rapid pace. Today, more than ever before, more and more emphasis is being placed on the development of new uses for soybeans. From creating new industrial uses with soybean oil, addressing the fatty acid issues and expanding research into the aquaculture industry, this issue of the Ohio Soybean Review magazine highlights the exciting research advancements taking place within the soybean industry.
irecently realized that the sailing skills I learned 30 years ago are today used to guide our soybean association. One summer, years ago, I purchased an old sailboat and spent a summer learning to sail. I had no previous sailing experience, but, desiring a challenge, I approached the 19-foot lightning-class boat, learning lessons that still have value today.
A successful sailing outing begins with preparation. A sailor spends hours checking rigging, caring for sails and maintaining his boat. The Ohio Soybean Association (OSA) and the American Soybean Association (ASA) also perform many unseen preparatory tasks. With directors’ involvement, our staff accomplishes daily activities such as budgeting, accounting, membership services and association communications planning for a successful association journey.
Prior to departure, the sailor scans charts of tides and weather reports, so he can successfully reach his destination. A sailor’s planning efforts allow him to avoid unexpected perils. Efforts by OSA and ASA to identify our destination take months. State associations review standing policy and identify needed changes. State meetings and caucuses result in our soybean association final policy destination adoption by farmers during the Commodity Classic in February and March of each year.
Sailboats have crews and officers. The OSA and ASA, of course, elect directors and officers to serve on our soybean journey. Jeff Sollars, Fayette County, is currently OSA’s captain, and Rick Ostlie, North Dakota, captains the ASA. You are served by a very capable crew of directors. This crew, with leadership from the captains, plans the course to accomplish the association’s policy journey.
As soon as a sailboat leaves dock, everyone must allow for the unexpected. While our
associations’ ultimate goals don’t change, changes in the political climate or economic realities require course corrections, a new sailing tack, to achieve our destination. Our associations’ leadership meets and adjusts as necessary to benefit our members and our industry.
For example, as a result of the November elections, ASA policy initiatives will require course corrections. Changes of leadership in both houses might require a shift from a starboard, right-hand wind, to a port tack, wind from the left.
Adjustments are already underway. Recently, Ostlie was invited to Minnesota to have breakfast with Collin Peterson, incoming House Agriculture Committee chairman. The ASA Public Affairs Committee and ASA Farm Bill Task Force will soon discuss needed adjustments with shifting priorities.
Just as a sailboat might benefit from perfect wind to power it quickly to port, the winds of renewable fuels and conservation, at both the state and national levels, will allow OSA and ASA to sail to beneficial legislation.
Lessons learned while sailing mirror those used to influence soybean policy implementation. Preparing the rigging, determining the destination, adjusting the course and riding the winds of opportunity will allow us to sail to beneficial policy, because farming matters.
robinson W. Joslin
ohio Soybean Association Chairman Shelby County Soybean Farmer
Jeff Sollars, Fayette County chairman
Rob Joslin, Shelby County Vice president Membership
Mark Watkins, Hardin County secretary
Dave Dotterer, Wayne County treasurer
Jeff Wuebker, Darke County trustees
Bill Agle, Clark County
Jerry Bambauer, Auglaize County
John Buck, Marion County
Brett Davis, Delaware County
Dave Dotterer, Wayne County
Mike Heffelfinger, Van Wert County
Kevin Homan, Henry County
Ed Lamalie, Sandusky County
Lyle McKanna, Putnam County
Clark Myers, Mahoning County
Dale Shawk, Crawford County
Sam Shuey, Clark County
Bruce Simmons, Medina County
Bob Slicker, Stark County
Joe Steiner, Warren County
AMericAn soybeAn AssociAtion Directors
Rob Joslin, Shelby County
Joe Steiner, Warren County
Mark Watkins, Hardin County industry Affiliates
Kathy Alvarez, Bunge NA
Jim Beuerlein, The Ohio State University
Andrea Guckes, Cargill Inc.
Don Ralph, Ohio Farm Bureau Federation
staff credits
John Lumpe and Kirk Leeds....Publisher
Ann Clinton Millsap....Editor
Jamie Mossbarger....Editorial Manager
Shelby J. Ostrander....Senior Creative Advisor
Gary Usovsky....Senior Creative Advisor
Kelly Mescher....Staff Writer
Rob Stewart....Publications Production Assistant
David Larson....Sales Director
The Ohio Soybean Review is published five times a year by the Ohio Soybean Association in partnership with the Iowa Soybean Association. For address corrections contact the Ohio Soybean Review 4554 NW 114th Street
Urbandale, Iowa 50322-5410
Phone: (515) 251-8640
E-mail: sheath@iasoybeans.com
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Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement.
CWith New Faces Come New Opportunities
by Jamie Mossbarger
hanges abound for Ohio with the new political landscape, and the Ohio Soybean Association (OSA) is taking advantage of these changes by establishing relationships within the new administration and looking forward to new opportunities. From alternative energy initiatives to building the demand for biobased products, the political future looks bright for the soybean industry.
Robert Boggs joins Governor Ted Strickland’s cabinet as director for the Ohio Department of Agriculture. He is from Ashtabula County, where he most recently served as county commissioner. Boggs is a former state legislator, school teacher, coach and brother of a dairy farmer.
“I am really interested in biobased products, biofuels, and research and development. All of these will help support the local market and, most importantly, our local farmers.”
Through an executive order from Strickland, the position of energy advisor was created and is filled by Mark Shanahan, who also serves as the executive director of the Ohio Air Quality Development Authority. As energy advisor, Shanahan will coordinate the administration’s energy policy.
In announcing this appointment, Strickland spoke highly of biofuels. “By transforming our energy infrastructure to use biofuels from sources here in Ohio, we will decrease our dependency on foreign sources for oil and help our agriculture industry in the process.”
While he is not a new face to the Ohio Legislature, the committee he currently chairs is new. State Representative Jim McGregor chairs the new House Alternative Energy Committee. This committee will focus on legislation for all alternative energy sources including biofuels.
“We are looking at all forms of alternative energy, but biodiesel has so much potential,” says McGregor. “With no engine modifications, it is easy to use, and I see it as having the greatest longterm potential.”
robert boggs, director Ohio Department of Agriculture
OSA President Jeff Sollars (left) recently met with Director Boggs (right) to discuss OSA policy priorities.
Jim McGregor, chairman Ohio House Alternative Energy Committee
Mark shanahan Governor Strickland’s Energy Advisor
Fisher Announces Alternative Fuel Grants
$595,000 Awarded to
Alternative Fuel Retailers and Biodiesel Blending Facilities
more than two years ago, the Ohio Soybean Association, in cooperation with the Ohio Corn Growers Association, Ohio Farm Bureau and Clean Fuels Ohio, worked to put Ohio’s first biofuels legislation (House Bill 245), which established the Alternative Fuel Transportation Grant Program (AFTGP), into law. Today, Ohio’s ethanol and soy biodiesel industries are benefiting from this legislation after Lieutenant Governor Lee Fisher awarded $595,000 in grant money for ethanol and soy biodiesel infrastructure. Twelve alternative fuel retailers and two biodiesel blending facilities will be developed with the award money.
The AFTGP was designed for improving air quality through grants to businesses, nonprofit organizations, schools systems or local governments for
the purchase and installation of alternative fuel refueling, blending or distribution facilities and terminals.
“These grants are designed to assist in the commercialization of alternative fuels, helping farmers, retailers and consumers by addressing both the supply and demand barriers often associated with emerging industries,” says Lt. Governor Fisher, who also serves as the director of the Ohio Department of Development (ODOD).
“The strategic placement of these new ethanol refueling and biodiesel blending locations will increase the availability of alternative fuels throughout Ohio and serve as a catalyst for future retail and wholesale growth.”
The 12 alternative fuel retailers receiving awards to install E85 pumps include nine Speedway stations, located in Columbus, Fairborn, Kettering, Wadsworth, Garfield Heights, Springfield,
Mt. Healthy and Macedonia, with each receiving $20,000 in grant assistance. Additional grants were awarded to the Francis Group’s Sunoco Station, located in Parma, which was awarded $15,000; Glockner Oil, located in Portsmouth, received a $20,000 grant; and Village Farm, located in Sylvania, received $20,000.
Circleville Oil, located in Circleville, and American Ag Fuels, located in Defiance, each received $180,000 in grant assistance for enhancements to their biodiesel blending facilities.
Alternative fuel proposals were reviewed on a competitive basis by ODOD’s Office of Energy Efficiency. In early May a new Notice of Funds was issued that will focus on available incentives designed to encourage more alternative fuel retail locations in Ohio.
Ohio Farmers
Participate in International Growers’ Forum in Argentina and Paraguay
The competition from South America for world markets continues to grow and affect U.S. soybean producers. At the same time, opportunities are available for U.S. and South American growers to work together to fight trade barriers and increase worldwide demand for soy. The American Soybean Association (ASA) designed an educational mission for growers that would give them a firsthand look at South American agriculture, the competition and prospects for collaboration on some issues.
The 2007 ASA educational tour was sponsored by the participants’ state checkoff boards, and farmers from across the United States participated in the trip. Ohio farmers Joe Steiner, from Warren County, and Keith Roberts, from Marion County, participated in the tour.
The mission began with a Foreign Agricultural Service overview on Argentina and Paraguay agriculture with the Embassy Ag Counselor, the Acting Ag Attaché and an Ag Specialist. Over the next week, the participants visited with AAPRESID (Argentina No Till Organization), ACSOJA (a soy organization including representation from all parts of the production chain), the Louis Dreyfus Soybean Processing Plant and Export Elevator, the Argentina Seed Company, the Association of Argentina Cooperatives and ADECO Agropecuaria (an agricultural production company).
A special highlight of the trip was a personal meeting with U.S. Ambassador
Wayne at the embassy in Buenos Aires, followed by a press conference during which the farmer-leaders talked to the Argentine and international press about the potential for U.S. and Argentine soybean farmers to work together in building demand and tackling market access barriers.
There were two other unique stops on the trip that enabled the participants to meet with Argentine and Paraguayan soybean farmers. The first was Las Cabezas Farm near Gualeguay, Argentina. As guests of Dr. Livio Ferruzzi, vice president, the group was taken on an exciting tour of the 44,000 acre farm that produces primarily soybeans, corn, wheat and purebred Hereford cattle.
A round table discussion with Argentine farmers was one of the most interesting and educational aspects of the trip.
ohio soybean Association board member and Warren county soybean farmer, Joe steiner, stands next to a soybean field in Argentina during the AsA grower mission trip.
Las Cabezas is completely no-till. The second stop was in Alto Parana, Paraguay at Agropeco Farm, of which Ferruzzi is president. Agropeco Farm consists of approximately 21,000 acres, some of which remain in native forest. A tour of the farming operation flowed over gently rolling hills in every direction to the horizon. At both the Las Cabezas and Agropeco farms, mission participants had the opportunity to meet and hold discussions with local soybean farmers to compare and contrast the challenges that soybean farmers in the United States, Argentina and Paraguay face.
*Article provided by the American Soybean Association.
OBIC Makes Sound Investment with Soybean Oil Development Project
Aby Victor VanBuehem
mericans are on intimate terms with soybean oil, consuming it daily in food products ranging from french fries to granola bars, and margarine to mayonnaise. Many consumers are also familiar with the use of soy oil in biodiesel fuel and printing ink. Potentially soy oil can be used for many more industrial products that are currently being made from petroleum.
A new partnership between the Ohio Soybean Council (OSC), Battelle and Ohio State University (OSU) brings together considerable expertise to investigate soy oil’s potential. Through funding from the soybean checkoff, soybean breeders from OSU’s Horticulture & Crop Science program (HCS) and oil chemists from Battelle Memorial Institute are collaborating to develop some new products, including soy-based lubricants, plasticizers and polyols. The investment of this project is supported by the Ohio BioProducts Innovation Center (OBIC), a collaborative effort by OSC, Battelle and OSU through an
11.6 million dollar grant awarded to OSU from the governor’s Third Frontier Program.
“OBIC has made a sizeable investment in equipment and staff at the Molecular and Cellular Imaging Center (MCIC), including the addition of Genomics Manager Tarek Joobeur,” says Steve St. Martin, HCS professor. “These facilities enable us to use molecular markers to streamline the process of identifying experimental lines that have desired genes for oil quality and disease resistance. OBIC’s investment shifts the odds of finding such a combination in our favor. OBIC has also provided us with additional staff and equipment to expand our research. Specifically, we have two new plot combines, with trucks and trailers to haul them.”
The first step toward developing new soy oil products is identifying the ideal fatty acid composition. Although soybean breeders can change the proportions of the saturated and unsaturated fatty acids that occur in soybean oil, oil chemists have not previously scrutinized the
value of these changes in the context of industrial products.
St. Martin and the Ohio Agricultural Research and Development Center (OARDC) Soybean Breeding Program are responsible for providing oil from soybean germplasm with different fatty acid compositions to Battelle’s oil chemists. The Battelle bioproducts team of Herman Benecke, Dan Garbark, Jeff Cafmeyer and Barry McGraw is aiming to identify ideal combinations of fatty acids.
Battelle received the first four oil samples from St. Martin in March 2007 and have begun the chemical analysis. He plans to deliver another set of samples after the autumn harvest.
Building on the feedback from Battelle’s chemists, St. Martin and HCS soybean researchers Marcia Feller, Scott McIntyre and Andy Spring will develop new soybean varieties that combine the modified composition with high yield, disease resistance and adaptability to Ohio.
“Battelle’s oil chemists have been successful in developing numerous soybased products, including, most recently, a toner for printer cartridges. Soy oil would be a better raw material if its fatty acid composition were changed somewhat,” explains St. Martin. “These changes can be made genetically. The OARDC Soybean Breeding Program is working on developing varieties with high yield and disease resistance, but now with incorporation of genes for modified fatty acid profile.”
St. Martin is optimistic about the potential of finding the right soybean variety for the job. However, he cautions, “No modified-oil variety will be successful unless it yields well in Ohio and is resistant to prevalent diseases.”
The change in oil composition will not affect uses of the oil in food notes St. Martin. “Some of the same modifications are now being introduced for the food uses of soy oil, i.e., low-linolenic acid and reduced levels of saturated fat.”
the ohio soybean council is funding a project through the ohio bioProducts innovation center and battelle that researches the use of soybean oil in industrial products including soy-based lubricants, polyols and plasticizers. Pictured are researches from battelle receiving their first delivery of soybean oil from osu researchers who developed the oil from oArdc germplasm.
Ohio Soybean Checkoff
Invests in Fuel Cell Technology
by Jamie Mossbarger
looking to the future, the Ohio Soybean Council (OSC) and the soybean checkoff have invested in the research and development of fuel cell technology that could someday be the solution to providing energy independence for Ohio farmers.
Working with Technology Management Inc. (TMI), a Cleveland based company, OSC has committed two years of funding for this project and is currently in the second funding phase. The first phase worked to successfully demonstrate the conversion of biodiesel and soybean oil into electricity using TMI’s kilowatt class solid oxide fuel cell system. Additional funding partners for this program include the USDA and Ohio’s Third Frontier Program.
“This demonstration of the direct use of soybean oil as a fuel for power generation is believed to be the first case of using a small-scale fuel cell system,” says TMI President Benson Lee. “The significance of this project is showing how small-scale fuel cell systems can support higher soybean prices and production volumes, while providing Ohio soybean farmers a path to energy independence.”
During the November OSC board meeting, TMI conducted a live demonstration of the working fuel cell and board members saw for the first time how electricity could be generated from a fuel cell using unblended soybean oil.
“This technology is incredible,” says Steve Miller, OSC board member and Crawford County soybean farmer. “As a grain farmer and livestock producer, I look forward to the day where I can
ohio soybean council board members are pictured with the tMi fuel cell that was part of the live demonstration during the november board meeting. this is believed to be the first known instance where unblended soybean oil has been converted by a fuel cell system into electricity.
provide the energy for my operation solely from fuel cells. Additionally, a working fuel cell could potentially serve a dual role by using the heat it generates to warm my livestock barns.”
During phase two of the project, TMI is working to provide the engineering and economic analysis that demonstrate how the solid oxide fuel cell-based technologies can support higher soybean prices and production. The project will specifically examine how various valueadded biofuels products, in addition to electricity and heat, can be produced from different soybean-based feedstocks.
In the years ahead, this technology could drive the demand for Ohio soybeans resulting in an increase in Ohio soybean farmers’ bottom lines. According to TMI and the USDA National Agriculture
Statistic Service, there are 77,300 farms in Ohio with approximately 43,500 run by operators whose primary occupation is farming. Assuming that each farm utilizes an annual average of 10 kilowatts of electricity, these farms would require 3.8 billion kilowatt-hours of electricity. Operating on soybean oil would require production of approximately 232 million bushels of soybeans. Even with modest market penetration, production of soybeans would be over 23 million bushels.
“Funding from OSC and the soybean checkoff allows TMI to focus specifically on soybean applications and explore other advantages of using small-scale molecular power which will benefit Ohio’s soybean farmers,” says Lee.
3 Soybean Checkoff Salutes Biodiesel Success
crop. U.S. soybean farmers collaborated to develop and promote soy biodiesel use among each other and especially among all diesel users.
“Thanks to soybean checkoff, soybean farmers have enjoyed plenty of success over the years, and soy biodiesel has to be one of the most recognizable successes,” says OSC Chairman Dan Corcoran, soybean farmer from Pike County. “Farmers have been true champions regarding promotion of soy biodiesel to fuel suppliers and diesel users across the countryside. We helped form the National Biodiesel Board (NBB) which continues to drive biodiesel research, promotion and helps pump this fastgrowing renewable fuel into the nation’s petroleum infrastructure.”
As spring fieldwork and crop planting gets underway, the Ohio Soybean Council (OSC) and soybean checkoff encourage farmers to use soy biodiesel in their tractors, vehicles and other dieselpowered equipment. Soy biodiesel helps increase engine lubricity and provides other diesel engine benefits. With increased availability throughout Ohio, it offers a great alternative to petroleum.
Since 1990, the soybean checkoff has been the major supporter of soy biodiesel research and promotion. Soybean farmers across the nation had a vision to develop a renewable fuel made from soybeans that could ease dependence on foreign oil, increase engine performance and build a competitive new market for their
From working with the Environmental Protection Agency, the National Renewable Energy Lab and the Department of Energy on engine and health effects testing, soybean farmers are building a quality assurance program. It is with such programs that NBB and the soybean checkoff continue to make strides regarding biodiesel awareness, performance and quality.
With NBB estimating over 225 million gallons of biodiesel used in 2006, U.S. soybean farmers know that there’s considerable future potential. Industry representatives from across the soybean value chain joined together last fall to create a coalition called Soy 2020. The effort assessed possible scenarios regarding the future of the soybean industry through the year 2020 and developed strategies to address uncertainties. After evaluating
scenarios, Soy 2020 members noted that reducing U.S. dependence on foreign oil is essential, and that soy biodiesel will remain a certainty through 2020.
To promote the benefits of soy biodiesel, OSC has worked to improve availability. Soy biodiesel messaging continues to focus on biodiesel quality and performance. All users of soy biodiesel are strongly encouraged to purchase soy biodiesel from fuel marketers that are certified under the BQ-9000 program. BQ-9000 is a NBB quality control program, and NBB encourages biodiesel manufacturers and marketers to participate. Currently, 17 companies across the United States are accredited producers. These companies represent about 40 percent of the biodiesel industry’s capacity.
“Ohio is home to the first ever BQ9000 certified producer and marketer, Peter Cremer North America, in Cincinnati,” says Corcoran. “Peter Cremer producers nothing but a quality product and have set industry quality standards high. It is important for all soy biodiesel producers and markets to follow their lead.”
Farmers and other general diesel users continue to ask, “How will soy biodiesel perform in my engine, and what’s the cost?” Diesel engines require few or no modifications when running on biodiesel blends. It can be easily blended with petroleum diesel at any level. The renewable fuel also lowers harmful emissions and decreases U.S. dependence on foreign oil. Research also shows the industry will boost local economies by producing over 39,000 jobs in the United States by 2015. Plus, with a federal tax incentive in place, biodiesel can be priced competitively with regular diesel.
“As soybean farmers, we recognize the importance of promoting our product to fellow farmers and other diesel users,” says Corcoran. “We will continue to work to increase demand for biodiesel. We know that five of 10 soybean farmers use biodiesel. We won’t rest until that number is 10 of 10.”
A visit to the soy biodiesel section, www.soybiodiesel.org, on OSC’s Web site provides visitors with useful information about Ohio’s soy biodiesel industry as well as general information. OSC has developed a series of fact sheets, which visitors can download, that address frequently asked questions, about soy biodiesel’s economic benefits, quality, BQ-9000 programs and guidelines for cold weather use. Visit the site today to learn more and to find answers to all your soy biodiesel questions.
soybean checkoff –building biodiesel Demand
The Ohio Soybean Council (OSC) and the soybean checkoff are committed to the success of Ohio’s soy biodiesel industry. Working to increase the bottom line of Ohio soybean farmers by creating demand for their product, OSC has made soy biodiesel part of its strategic plan. Through funding from the soybean checkoff, OSC is working to:
• Double utilization of soy biodiesel in Ohio.
• Increase the number of soy biodiesel fuel distributors in Ohio to 175 and the number of soy biodiesel retailers to 75.
• Educate manufacturers, distributors and consumers to produce a high-quality product to meet the American Society for Testing and Materials (ASTM) specifications.
• Inform and educate industry influencers on comparable usage of soy biodiesel around the country.
soy biodiesel e-bulletin –sign up today!
Every day, news stories appear about alternative fuels and the importance of reducing the country’s dependence on foreign oil. Sometimes the amount of information can be overwhelming. Let OSC do the work for you. Sign up today for the soy biodiesel e-bulletin that arrives directly to your inbox with the latest soy biodiesel industry information in a short, easy and fast-reading format. Visit www.soyohio.org to sign up.
*Portions of this article provided by the United Soybean Board
As OSC works to increase the availability of soy biodiesel in Ohio, it also works to ensure that the most up-to-date information is always available. Visit www.soybiodiesel.org to find Ohio soy biodiesel distributors and retail stations. This site is regularly updated.
Soy and Aquaculture Go Together Swimmingly
Aquaculture is the fastest-growing food segment in the world, and soy has been quick to jump on the bandwagon. The soybean checkoff saw the long-term potential in aquaculture and invested funds to develop methods to increase inclusion of soy in many fish diets.
As the demand for aquaculture continues to soar with global population growth, the demand for seafood products won’t be met by capture fisheries, which capture wild fish or shellfish. Global aquaculture continues to grow at an annual rate of 9 percent to 11 percent. This presents a significant opportunity for soy as a feed ingredient. Overall, aquaculture will consume an estimated 8 million to 10 million metric tons of soybean meal in the next decade. This year alone, 30 million bushels of soybeans and grain will feed farmed catfish.
“The soybean checkoff understands the importance of aquaculture and has gotten in on the ground floor with our investment in new technologies to increase soy inclusion in fish diets,” says Dale Profit, Ohio Soybean Council (OSC) International Marketing chair and soybean farmer from Van Wert County.
Soy-based diets for select marine fish have been developed and are being demonstrated in several projects located in the Philippines, Vietnam and China. Research efforts are focused on identifying barriers to soy inclusion in the diets of marine fish such as salmon, pompano, amberjack, Mediterranean sea bass, sea bream and cobia as well as
increasing the soy inclusion in marine shrimp diets.
Soy meal inclusion shows greater potential in fish than in other livestock rations. In fact, fish diets can contain twice as much soy than any other livestock rations, with over half the diets of many freshwater fish containing soy products. Since each species of fish have different dietary requirements, part of the research effort includes building a database to house the inclusion rates of each species. Other investments by the soybean checkoff include new technologies to reduce weather challenges and make aquaculture practicable in more areas.
In 2004, the soybean checkoff invested in Ocean Cage Aquaculture Technology (OCAT) to design prototype offshore ocean cages for testing in China. The cages are used with floating feed containing various amounts of soybean meal based on the dietary needs of the species of fish within the cage.
To handle weather challenges, a truncated pyramid design was selected,
with single-point anchoring to allow the cages to float down-current and to automatically submerge during increasing storm-generated wind and water currents. During typhoons, the top buoys are quickly disconnected, and the cage goes one meter below the surface with the increasing storm-generated wind and water currents.
OCAT is just one example of the success the soybean checkoff has had in the realm of aquaculture. China is another example.
“China’s aquaculture industry went from using no soy meal a decade ago to over 150 million bushels annually,” says Profit. “Advances in aquaculture are one of the reasons China is our number one export customer.”
*Portions of this article provided by the United Soybean Board.
we realize it or not, it’s been affecting soybean farmers for quite a while. The last two or three years, the share of the final dollars spent that gets back to the farmer has been cut, because rail rates have been rising faster for soybeans than other grains and commodities. USDA says that rail revenue per car of soybeans went up 39 percent between 2003 and 2005. What that means is that, basically, farmers got 20 cents less per bushel just because of the increase in rail rates.”
Mark
newman
President, Market solutions LLc
Trains are hauling soybeans and soybean meal across the great states, bringing goods to western seaboard ports for export.
But farmers are being shortchanged along the way. Grant Kimberley, director of market development for the Iowa Soybean Association (ISA), says it’s because of the high freight costs of our U.S. railroad system.
“Agriculture doesn’t seem to be as attractive to the railroad as other businesses, because it’s inconsistent,” Kimberley says. “You have busy times, and you have slow times. That’s a problem for U.S. agriculture. But if we want to compete internationally, we’re going to have to make efforts. If you can’t afford to get your product from the point of origin to an export terminal, we have problems. If it’s so expensive that it makes you uncompetitive on a global level, then we’re not going to compete as well.”
It’s a problem – especially when foreign competitors are moving forward and evolving their infrastructures –while we seem to be moving backwards, Kimberley adds.
“Brazil and Argentina are upgrading,” Kimberley continues. “We tend to be consolidating and tearing railroad tracks out, and that translates into less money for farmers. In the end, the farmer pays for it when you translate the differences between futures and cash prices. This will also effect the growth of the biodiesel and ethanol industry as rail becomes a primary means to transport these biofuels across the country.”
So what can be done? How can farmers become more competitive
in terms of exports and earning more money?
“The first thing is that we need to understand it better,” Kimberley continues. “As producers, we have to pay more attention to the situation. Once we sell our product, we forget about everything else down the road. We don’t really notice that it affects our bottom line. Farmers are not getting paid as well as they could be. The local cash price could have possibly been better.”
As a result, the Soybean Transportation Coalition was formed to better understand the situation.
Mark Newman, president of Market Solutions LLC, a leading agribusiness consulting firm, says it is a complex situation.
“The economy is growing, and agricultural production is growing and exports are growing,” Newman says. “The U.S. is also importing, not just ag commodities, many things we use and buy at Wal-Mart and on main street. This is raising demand for rail transportation, so there is no excess capacity left, and railroads are raising rates.
“In general, we’re becoming a more globally-oriented country,” Newman continues. “Second to water, rail is the most cost-effective way to move things. So, if people can move things by rail – they do. Rail demands are increasing. While taxpayers pay for our roads, and locks, and dams and ports, with railroads we’ve expected the stockholders to pay for it.”
It’s a competitive market, Newman adds. The grain elevator or crusher takes their share of the pie, and the board price farmers get for their crops reflect that customers pay less transportation and handling costs. Even though the farmer is not directly involved with paying the transportation costs, ultimately, he or she is the one who pays the bill.
“Ohio is expected to crush 111 million bushels out of a 217 million bushel crop,” Newman says. “Then it will produce 2.6 million tons of soybean meal. Ohio livestock and poultry producers use only about one third of this. Ohio needs to ship 93 million bushels of soybeans and 1.7 million short tons of soybean meal to customers in other states or international markets.”
The railroads have gone through regulatory changes over the years, which impacts everyone importing and exporting goods.
“When the railroads were deregulated, the idea was that the oversight board was supposed to look at both profitability of the railroads and service to shippers,” Newman says. “When the Staggers Act was passed, the railroads were in terrible financial shape. The regulators have focused on trying to make sure the railroads are profitable. Now that excess capacity is all gone – there’s a need for more balance between protecting the financial benefits of the railroad and ensuring competitive services to shippers.”
The stakes are high for exporters, indeed. If changes are not made, it will continue to negatively affect not only farmers’ income, but global competition as well.
“If we don’t address rail transportation, I think we’ll be less competitive,” Newman concludes. “We have a stake in working with the railroads and the regulators so that everybody comes up with a solution that makes them better off. There is a need to address rail rates, service and infrastructure capacity, both to meet the needs of farmer profitability in the short term and keep farmers competitive for the long term.”
Negative Affects on Foreign Customers
The costs of exporting our goods to West Coast ports is affecting our relationships with foreign buyers, says Grant Kimberley, director of market development at the Iowa Soybean Association.
“We were on a trade mission in the Philippines with some buyers – importers of soybean meal,” Kimberley says. “We were trying to negotiate deals, and we were priced out of the market as much as the domestic transportation costs have increased over the years. Brazil was cheaper than us. The difference was really our ability to get the product to them. From the farmer to the processor to the actual export terminal – that’s where the big difference is.”
These extra costs have put Brazil and Argentina a step above the United States in terms of competition.
“The rate to shop a vessel from the United States or from South America is the same,” Kimberley continues. “The difference was our costs and our ability to move our products within the U.S. to our export facilities. We need to find an equitable way to challenge rate complaints right now. There is no good structure in place.”
Mark Newman, president of Market Solutions LLC, agrees.
“We did a number of studies with the U.S. Soybean Export Council, talking to customers internationally,” Newman says. “They told us directly that when our domestic transportation costs to get to a port are high, it means they buy from South America earlier in the year, and so we’re less competitive. We lose customers and farmers get less money for their soybeans.”
For comments or questions, please e-mail kmescher@iasoybeans.com
American Blogs About Brazil Becomes
Source of Information Around the Globe
by Kelly Mescher
Kory Melby’s name may not sound familiar to you.
But to thousands around the world seeking information about Brazil online, Melby has become a friend, confidante and informant. Melby, a native of northern Minnesota who moved to Goias, Brazil in 2001, regularly posts new information on his blog and online newsletter, found at http://www.brazilintl.com/m_agblogs. htm
“I started the Web site and blog about five years ago,” Melby says. “I was looking for a guy like me.”
Ironically, Melby became that guy.
“We’re getting about 400 hits per day through the blog and the site,” Melby continues. “Every month or so there’s some sort of client needing assistance down here, and I can fill that void.”
After making trips to Brazil in 1994, 1998 and 2001, Melby made the leap and moved there permanently.
“I became very fascinated with the ag media coverage of the frontier – primarily Bahia,” Melby says. “And then in 2001, I started a series of trips to Brazil to understand this rapid expansion of soybeans. I just became captivated by it, but I was always behind the curve on trying to put deals together on land.”
But that didn’t stop Melby from moving to Brazil. Plus, Brazilian girls can have an influence too, Melby adds with a laugh.
“Life happens while you make other plans,” Melby says. “I have a son and a wife here in Brazil.”
Melby decided not to stick with his original game plan of farming the Brazilian land and started consulting and offering tours instead, which has worked out very well for him. He guides approximately three tour groups per year and also provides tours about once a
month for people interested in privately investing in land.
the great cotton and sugarcane expansion
“Cotton, generally speaking, is a very expensive crop,” Melby says. “But for those who have the means, there’s a much higher rate of return on investments.”
John Baize, consultant to the soybean industry, believes cotton expansion will continue substantially. “Their yields are good, and their quality is very good,” Baize says.
Sugarcane is also doing exceptionally well in Brazil.
“It has been growing because of the demand for ethanol in South America, Europe and in the United States,” Baize says. “They’re even shipping ethanol to the United States.”
Stay tuned to the Soybean Review for updates on soybean, cotton and sugarcane production in Brazil.
kory Melby and his family at home in Goias, brazil.
Issues with the Amazon
There are arguments about deforestation in the Amazon, says Kory Melby, a Minnesota native who now farms full time in Brazil.
“From a state level in Mato Grosso, the areas around the Indian reservations have been designated transitional Amazon Rainforest,” Melby says. “The state of Mato Grosso has said, ‘Go ahead and clear 65 percent of that.’ And at the federal level, they say, ‘No, we’re calling that rainforest.’ That’s the problem. Brazil does not have criteria or a format to say what’s designated rainforest. It’s
all up to interpretation. That’s what has created all the environmental hooha. And, of course, Brazil’s lack of enforcement. Even if they do have a law, there’s an inability to enforce it. It creates more problems.
“From what I see, the quality of soil and the quality of land that Northern Mato Grosso has to offer should be farmed,” Melby continues. “The farmers, generally speaking, are doing a very good job of leaving reserve areas, leaving land along rivers – at least 100 meters along a river. Yes, large tracts of land
National Geographic Exposes Problems with Soybeans and the Amazon
The January 2007 issue of National Geographic magazine features the plight of Brazil on the cover, emblazoned with the words: “Amazon – Forest to Farms, Battle to Stop the Land Grab.”
The story, “Last of the Amazon,” exposes readers to the situation. “In the time it takes to read this article, an area of Brazil’s rain forest larger than 200 football fields will have been destroyed. The market forces of globalization are invading the Amazon, hastening the demise of the forest and thwarting its most committed stewards. In the past three decades, hundreds of people have died in land wars; countless others endure fear and uncertainty, their lives threatened by those who profit from the theft of timber and land. In this Wild West frontier of guns, chainsaws, and bulldozers, government agents are often corrupt and ineffective – or ill-equipped and outmatched. Now, industrial-scale soybean producers are joining loggers and cattle ranchers in the land grab, speeding up destruction and further fragmenting the great Brazilian wilderness (National Geographic).
“During the past 40 years, close to 20 percent of the Amazon rainforest has been cut down – more than in all the previous 450 years since European colonization began. The percentage could well be far higher; the figure fails
to account for selective logging, which causes significant damage but is less easily observable than clear-cuts. Scientists fear that an additional 20 percent of the trees will be lost over the next two decades. If that happens, the forest’s ecology will begin to unravel. Intact, the Amazon produces half its own rainfall through the moisture it releases into the atmosphere. Eliminate enough of that rain and clearing, and the remaining trees dry out and die. When desiccation is worsened by global warming, severe droughts raise the specter of wildfires that could ravage the forest. Such a drought afflicted the Amazon in 2005, reducing river levels as much as 40 feet and stranding hundreds of communities. Meanwhile, because trees are being wantonly burned to create open land in the frontier states of Para, Mato Grosso, Acre and Rondonia, Brazil has become one of the world’s largest emitters of greenhouse gases. The danger signs are undeniable” (National Geographic).
And the danger signs are evident to those who attempt to step in others way to protect the rainforest. According to National Geographic, Dorothy Stang, a 73-year-old nun who dedicated her life to saving the forest and helping workers was killed by hired gunmen in 2005 after trying to stop ranchers from clearing land. A spot is marked with white
have been opened. But it’s not slash-andburn rainforests either. They are very productive tracts of land.”
A man from Texas is starting a nonprofit group in conjunction with the state government of Mato Grosso and environmentalists to put together criteria which will determine how the new areas will be developed.
“He loves the environment,” Melby says. “But he is also a capitalist. If the environmentalists don’t wake up and just keep hollering and screaming and don’t come to the table, they will lose out. Ten thousand square miles is being deforested per year. That’s a lot of land.”
NATIONALGEOGRAPHIC.COM/MAGAZINE
crosses that represent the 772 victims of land wars in the state of Para, Brazil; 48 red crosses symbolize local people now under death threats.
Kory Melby, however, maintains that “very little of the true Amazon has been touched.”
“The issue is with the transitional rainforest,” Melby says. “These flat plateaus are very conducive to large scale crop farming. The true Amazon rainforest has a totally different biosphere. The land is rolling and is lower in elevation. The land being cleared is about 350-400 meters above sea level and perfectly flat. The true Amazon basin is rich in lumber and the land could possibly be cleared for pasture. However there is plenty of other land that can be converted to pasture that is much easier to clear than worrying about the true Amazon. The economics do not justify it today.”
Soybean Checkoff
Backs Research to Help Reduce Saturated Fatty Acids in Oil
the soybean checkoff is funding research that helps reduce saturated fatty acids in oil.
“There is considerable interest in increasing the palmitoleic acid content in diets for health purposes. Palmitoleic acid is reported to lower the risk of cardiovascular and cerebrovascular diseases.”
dr. david hildebrand, university of kentucky
Americans are concerned with healthy eating, which includes minimizing trans fats and unsaturated fats. Consumers consider soybean oil a healthy oil, but scientists working on soybean checkoff-funded research are striving to make it even healthier.
One such project sees David Hildebrand, University of Kentucky, attempt-
ing to improve the fatty-acid profile of soybeans. The research looks at ways to convert saturated fatty acids to monounsaturated fatty acids. Dr. Hildebrand’s research converts unsaturated fatty acids into the monounsaturated products palmitoleic and oleic fatty acid.
Dr. Hildebrand cloned a gene from the highly valued edible oyster mushroom that can convert saturated fatty acids, including palmitic acid to the more healthful monounsaturated fatty acids.
“There is considerable interest in increasing the palmitoleic acid content in diets for health purposes,” says Dr. Hildebrand. “Palmitoleic acid is reported to lower the risk of cardiovascular and cerebrovascular diseases.”
Farmers could reap major benefits from this research in new markets for higher value soybeans used in new health, medical and industrial uses. Soybean use in traditional markets will also expand due to the improved health value of the oil.
“The soybean market is driven by consumers,” says Keith Kemp, Ohio Soybean Council Production Research chair and soybean farmer from Preble County. “That’s why the soybean checkoff provides funding for projects to make soybean oil and other products better meet consumer needs, like improving the fatty-acid profile.”
However, there are challenges that could arise as well. Decreasing the saturated oil content of soybeans without changing the polyunsaturated fatty-acid levels could decrease the oxidative stability of the oil. Dr. Hildebrand’s research is looking at ways to solve this issue in cooking applications.
In addition, current soybean somatic embryo transformation technology uses a soybean cultivar that lags behind today’s top-yielding cultivars. Crossing cultivars containing the low-saturated fatty-acid palmitoleic accumulation trait with high-yielding elite varieties could potentially affect yield progress. Since the trait is simple and easily analyzed, the trait could be introduced directly into elite germplasm.
“Genetic engineering technology by gene transfer could result in low-saturated oil soybeans with no yield drag if elite-yielding breeding material is directly transformed instead of a standard cultivar,” says Dr. Hildebrand.
As part of this research, Dr. Hildebrand is experimenting with oyster mushroom delta-9 desaturase, a native soybean delta-9 desaturase, and yeast and mammalian delta-9 desaturase. These are different forms of a gene that can help to improve the fatty-acid profile of soybeans, favoring the more-healthy monounsaturated fatty acids.
It is anticipated that it will take four to six years for the development and field-testing of commercially available lines with the healthier fatty-acid profile. As the field testing is done, breeding with elite lines and other improved-composition soybeans will be initiated.
Dr. Hildebrand says the soybean checkoff has been invaluable to this research. “Although we would try to do some of this research without any outside support, it is hard to make much progress without some extramural funding,” he says.
*Portions of this article provided by the United Soybean Board
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