high-oleic soybeans high-oleic soybeans

A grower’s guide to a new crop: high-oleic soybeans

A Special Interest Publication By:

A grower’s guide to a new crop: high-oleic soybeans

High Oleic no Monsanto.indd 1 10/6/14 4:05 PM

Transition. Transformation.

Transition. Transformation.

Transition. It’s a thought on farmers’ minds throughout the country. It’s cer-tainly on my mind as I think about the transition of my farm to my two sons. � is special interest publication by Successful Farming magazine is all about transition.

High-oleic soybeans will transition our U.S. soybean industry from a one-size-� ts-all commodity, to a system that delivers solutions to our customers and delivers long-term pro� tability to us, as farmers.

You’re receiving this special interest publication by Successful Farming mag-azine because you, personally, can play an integral role in the future of the soybean industry.

Transformation. U.S. soybean farmers have the opportunity to transform how our customers see us and transform our long-term demand. We can recapture lost customers, expand into new markets and put U.S. soy ahead of the competition through di� erentiated products.

I encourage you to reach out to your local seed rep or processor and � nd out more information about high-oleic soybeans to-day. Also, spend some time on the soy-checko� -funded website, SoyInnovation.com.

May you have a safe harvest in 2014, and I hope you consider grow-ing high-oleic soybeans in 2015.

Sincerely,Jim CallUnited Soybean Board Chairman

Madison, Minnesota

Our Soybean Industry’s

Future


Lewis Bainbridge has seen the painful decline in demand for soybean oil up close. � e Ethan, South Dakota, farmer is one of 70 farmer members of the United Soybean

Board, the industry organization that collects your checko� money. He chairs the Oil Ac-tion Team for USB, and rebuilding customer preference for soybean oil has been front and center.

� e purpose of the checko� is to expand markets for soybeans, so declin-

ing oil demand is particularly perplexing. “� e big issue is trans fat and its role in heart disease,” Bainbridge says. “It started with the onset of mandatory labeling about 10 years ago.”

Oil from traditional soybeans, when it is partially hydrogenated to give it more stability, has trans fat. It’s considered less healthful than competitors’ oils. “Well, it’s time we bring back that lost market,” Bainbridge declares.

He and other USB members are betting on high-oleic soybeans as an answer. Due to innovative plant breeders, the new varieties eliminate the trans fat issue in the oil. � e stability of the oil in high-heat situations is increased dramatically without the process of hydrogenation. It lasts at least twice as long as traditional soybean oil. � at’s good

for the food industry and also for industrial uses such as synthetic motor oils. Also, saturated fat is reduced by 25% to 50% in the high-oleic soybean oil.

“A� er many farmer-led discussions, we concluded that it’s a no-brainer to invest in increasing the acreage of high-oleic soybeans,” Bainbridge says. Checko� funds have been committed to expand those acres and to build markets for the enhanced oil.

Good for all farmersFor farmers who question if it is worth it, Bainbridge points to an analysis from QUALISOY, an industry organization that develops soybean markets. It says when the high-oleic program comes to fruition, it will increase soybean income by $3.8 billion a year for all soybean farmers compared with current trends.

Bainbridge can’t yet grow the new soybeans on his South Dakota farm, because the varieties haven’t been adapted. Right now, they’re grown on only about 170,000 acres in the eastern Corn Belt.

“Farmers there are very happy with their high-oleic yields,” he says. “� ey like the extra dollars they get for growing them.

“I will grow them as soon as we have the right varieties for my area and high-oleic buyers are in place. � e checko� money we are investing will accelerate expansion of high-oleic acreage across a wide section of the country,” he says.

� e new soybeans are already helping to rebuild demand for soybean oil, Bainbridge believes. “High-oleic soybeans will raise the tide for all of us,” he predicts.

good for processors So far, soybean processors have been very receptive to the new crop. � ey see oppor-tunities to market the enhanced oil to food companies, industrial users, and consumers. “We’re coordinating with processors and end users as we roll out the program over the next few years to grow 18 million acres of high-oleic soybeans,” says Bainbridge. “It takes a coordinated push-pull e� ort to expand acreage and to build demand. We must prove that we can deliver the crop.

“I encourage you to grow these soybeans when they become available in your area. Your soybean buyers need to see your com-mitment,” he says.

good for consumers� e high-oleic soybeans are one of the � rst genetically modi� ed soybeans with true consumer bene� ts, Bainbridge points out. It may be a chance to win over consumers who have been resistant to GMOs. “� is crop can bene� t everyone due to its proven health advantage. � at’s a very positive development,” he says.

It’s one of the biggest projects any farm group has ever undertaken, he says. “We have to grow the crop and build demand for 9 billion pounds of a new, more stable soybean oil that helps the food industry make more healthful products. It will be a total success when all soybean farmers feel the bene� ts of a growing market,” he concludes. •

New Crop Raises

Soy TideFARMER LEADER SAYS HIGH-OLEIC VARIETIES WILL BUILD DEMAND AND HELP ALL SOYBEAN FARMERS.

By Gene Johnston

Lewis Bainbridge of Ethan, South Dakota

“SOYBEAN OIL HAS BEEN LOSING MARKET SHARE, PRIMARILY OVER TRANS FATS AND THEIR ROLE IN HEART DISEASE”– Lewis Bainbridge

New Crop Raises


Why?Traditional soybeans have about 15% saturated fat and 25% oleic acid. High-oleic beans have 7% to 11% saturated fat and 72% to 75% oleic acid. The reduced saturated fat is healthier, and the higher oleic acid adds the stability factor. Traditional soybean oil has to be hydrogenated to extend shelf life or cooking life, and that chemical process adds artery-clogging trans fats. High-oleic soybean oil doesn’t have to be hydrogenated, so it has no trans fats. It also lasts longer in frying situa-tions and has a longer shelf life in baked foods.

THERE’S A NEW CROP SOON TO COME ON YOUR RADAR CALLED HIGH-OLEIC SOYBEANS. HERE’S WHY IT’S SPECIAL AND HOW IT WILL MAKE YOU MONEY.

By Gene Johnston

A New Bean

It’s not o� en in a lifetime that you get a chance to try a brand-new crop.

Here’s that chance – sort of. High-oleic soybeans are still soybeans, but they are di� erent enough from traditional soybeans that you’ll handle them like a separate crop. Over the next few years, you may be encour-aged by your seed dealer to grow them as a special, contracted crop. While they look like regular soybeans, they produce a soy oil with three times more oleic acid. � at makes it more functional for both food and industrial lubricant uses.

You’ll plant the high-oleic soybeans separately from your traditional soybeans and harvest them separately. � ey’ll be stored on your farm or in commercial storage where the identity is preserved. You’ll no more mix them with traditional soybeans than with corn. For your trouble, you’ll get a modest premium when you sell.

Working independently, crop scientists at DuPont Pioneer and Monsanto used gene modi� cations to add two special qualities to the oil that is extracted from high-oleic soybeans:

Stability– longer life in high-heat situations.

Healthfulness– less saturated fat and no trans fats.

The United Soybean Board (USB), which collects 0.5% of the value of every bushel you sell for market development, is giving the new soybeans a push. Its farmer-leaders feel so strongly about the need for the enhanced oil profile that they are making a major investment of your checkoff money to help expand varieties and maturities of high-oleic soybean seed. Those leaders have set a goal to grow 18 million acres of high oleics – 25% of all soybean acres – by 2023, starting from just 170,000 acres now.

This high-oleic soybean primer will help you discover more about this new crop and determine if you will join the bandwagon.

Source: Mark Winkle, USB director of U.S. domestic programs

A NewA NewA NewA New


Who?Monsanto and DuPont Pioneer developed independent high-oleic soybean varieties. Monsanto calls its version Vistive Gold; DuPont Pioneer’s version is called Plenish. Both are higher in oleic acid, produce more stable oil, have zero trans fat, and are lower in saturated fat.

Where?Currently, the beans are mostly grown in the eastern Corn Belt. Both DuPont Pioneer and Monsanto have a history of success with spe-cial crops there. That geography will expand starting next year. The two companies are using a checkoff investment to expand the va-riety and maturity-range choices. Right now, most high-oleic varieties are in the mid-group 3s maturity (southern Corn Belt). That will expand to mid-2s to low-4s maturity zones next year and beyond after that. A few west-ern Corn Belt growers will produce high-oleic soybeans in 2015, and a bigger expansion will come in 2016 and beyond.

How?You’ll get seed through normal dealer routes from Monsanto and DuPont Pioneer. Their high-oleic varieties will typically be in the elite traited-seed category. You’ll manage them like any soybean in the growing season, from pest control to tillage and planting practices. At planting or before, your seed dealer will help you � nd a processor who will contract to buy the high-oleic soybeans from you. The contract will stipulate delivery and pricing options. At harvest, you will segregate them to preserve identity and clean equipment to avoid contami-nation from your traditional soybeans.

How much?Farmers now are generally getting 40¢ to 80¢ per bushel premium for growing high-oleic soybeans. That pays for the extra steward-ship and management that is invested. It may stipulate will-call delivery (they tell you when they want your beans, and you store until then). Usually, it’s in the winter or spring after harvest.

Who buys?For the next few years, the high-oleic soy-beans will be used domestically because of the demand and the amount that can be grown. Export markets will like the high-oleic beans for all of the same reasons as domestic users.

The USB and the seed suppliers will continu-ally engage the marketplace to drive adoption of the technology with processors.

Yields?Plant breeders have incorporated the high-oleic trait into their elite genetics. Farmers who have grown them con� rm that these soybeans yield as well as traditional soybeans. There’s no impact on the soybean meal from high-oleic soybeans. The protein content and the amino acid pro� le are the same as tradi-tional soybeans.

Uses?If the U.S. grows 18 million acres of high-oleic soybeans in 2023, that will yield about 9 billion pounds of high-oleic oil. It’s estimated that 6 billion pounds of it will be used in the food sector; 1.1 billion pounds will go to industrial uses such as biolubricants. The remainder will be exported. In food, one major area is frying oil. Traditional oil for this pur-pose may last eight to nine hours before being changed. The stability of high-oleic soybean oil makes it last two to three times longer, a major advantage. In industrial uses such as motor oil, the high-oleic oil adds stability and longer life, just like in a cooking fryer.

Downsides?Right now, the downside is regulatory, particularly in foreign markets. Since high-oleic soybeans are genetically modi� ed, they have to be approved for each market. They are ap-proved for U.S. use, but acceptance is pending in Europe and China. That could come next year, but, of course, there are no guarantees. For a few years, the domestic market will dominate, anyway. •

HIGH-OLEIC SOYBEAN OIL DOESN’T HAVE TO BE HYDROGENATED, SO IT HAS ZERO TRANS

FAT, LASTS LONGER IN FRYING SITUATIONS,

AND HAS A LONGER SHELF LIFE IN BAKED FOODS.


The DuPont Oval Logo is a registered trademark of DuPont. PIONEER® brand products are provided subject to the terms and conditions of purchase which are part of the labeling and purchase documents. ®, TM, SM Trademarks and service marks of Pioneer. © 2014 PHII. DUPPPL14011VAR1

� e genetics and defensive traits of Plenish® high oleic soybeans o� er yields comparable to other elite Pioneer® brand soybeans, plus an added processor-paid premium per bushel for a stronger bottom line. Talk to your local Pioneer sales professional. Pioneer.com/PlenishContracts

Plenish®^ high oleic soybeans supply you with high yields and big returns.

^ EXPORT APPROVAL NOTICE: This product is fully approved in the United States and Canada. Traits included in these products may or may not be approved in all global markets; therefore, the combination of these traits and the grain and certain by-products (including oil, dried distillers grain, cobs, and husks) from THESE PRODUCTS MAY NOT BE APPROVED for all markets. Growers that use this product are required and agree to adhere to the stewardship requirements as outlined in the Pioneer Product Use Guide and product-specifi c Stewardship Requirements for this product, which include specifi c grain disposition requirements. For questions regarding product stewardship and biotech traits please contact your sales representative or refer to www.pioneer.com/stewardship. Growers are required to discuss trait acceptance and grain channeling policies with their local grain handler prior to delivering grain containing biotech traits.

INCOME POTENTIAL EXAMPLESource: 2011–13 yield data (57.1 bu average) from Indiana and Ohio. 1Income potential per acre is calculated with a $10.80 per bushel Nov. 2014 CBOT soybean price and a processor-paid high oleic premium of $.50 cents per bushel.

Source: 2011–13 DuPont Pioneer research plot yield data from 345 observations in Indiana and Ohio depicting an average yield of Plenish high oleic soybean commercial varieties compared to average yield of Pioneer brand elite soybean varieties. Product responses are variable and subject to any number of environmental, disease and pest pressures.

605040302010

bu/A Plenish® High Oleic Soybeans

Pioneer® BrandSoybeans

Calculation Income PotentialPer Acre1

Grain Income 57.1 / bu x $10.80 / bu $616.68

Premium Income 57.1 / bu x $.50 / bu $ 28.55

Income Opportunity $645.23

Make your soybean numbers gush

Source: 2011–13 yield data (57.1 bu average) from Indiana and Ohio. Income potential per acre is calculated with a $10.80 per bushel Nov. 2014 CBOT soybean price and a processor-paid high oleic premium


57.1 / bu x $10.80 / bu $616.68

57.1 / bu x $.50 / bu $ 28.55


See more at Pioneer.com/PlenishContracts

DUPPPL14011_VAR1_Plenish_SF_Spread_M1.indd 1 8/15/14 11:45 AMHigh Oleic no Monsanto.indd 6 10/6/14 4:06 PM

The DuPont Oval Logo is a registered trademark of DuPont. PIONEER® brand products are provided subject to the terms and conditions of purchase which are part of the labeling and purchase documents. ®, TM, SM Trademarks and service marks of Pioneer. © 2014 PHII. DUPPPL14011VAR1

� e genetics and defensive traits of Plenish® high oleic soybeans o� er yields comparable to other elite Pioneer® brand soybeans, plus an added processor-paid premium per bushel for a stronger bottom line. Talk to your local Pioneer sales professional. Pioneer.com/PlenishContracts

Plenish®^ high oleic soybeans supply you with high yields and big returns.

^ EXPORT APPROVAL NOTICE: This product is fully approved in the United States and Canada. Traits included in these products may or may not be approved in all global markets; therefore, the combination of these traits and the grain and certain by-products (including oil, dried distillers grain, cobs, and husks) from THESE PRODUCTS MAY NOT BE APPROVED for all markets. Growers that use this product are required and agree to adhere to the stewardship requirements as outlined in the Pioneer Product Use Guide and product-specifi c Stewardship Requirements for this product, which include specifi c grain disposition requirements. For questions regarding product stewardship and biotech traits please contact your sales representative or refer to www.pioneer.com/stewardship. Growers are required to discuss trait acceptance and grain channeling policies with their local grain handler prior to delivering grain containing biotech traits.

INCOME POTENTIAL EXAMPLESource: 2011–13 yield data (57.1 bu average) from Indiana and Ohio. 1Income potential per acre is calculated with a $10.80 per bushel Nov. 2014 CBOT soybean price and a processor-paid high oleic premium of $.50 cents per bushel.

Source: 2011–13 DuPont Pioneer research plot yield data from 345 observations in Indiana and Ohio depicting an average yield of Plenish high oleic soybean commercial varieties compared to average yield of Pioneer brand elite soybean varieties. Product responses are variable and subject to any number of environmental, disease and pest pressures.

605040302010

bu/A Plenish® High Oleic Soybeans

Pioneer® BrandSoybeans


Grain Income 57.1 / bu x $10.80 / bu $616.68

Premium Income 57.1 / bu x $.50 / bu $ 28.55


Make your soybean numbers gush

Source: 2011–13 yield data (57.1 bu average) from Indiana and Ohio. Income potential per acre is calculated with a $10.80 per bushel Nov. 2014 CBOT soybean price and a processor-paid high oleic premium


57.1 / bu x $10.80 / bu $616.68

57.1 / bu x $.50 / bu $ 28.55


See more at Pioneer.com/PlenishContracts

DUPPPL14011_VAR1_Plenish_SF_Spread_M1.indd 1 8/15/14 11:45 AMHigh Oleic no Monsanto.indd 7 10/6/14 4:06 PM

THESE FARMERS HAVE GROWN HIGH-OLEIC SOYBEANS AND SAY IT’S ALL ABOUT

Customer Service

Matching Up with the FutureGARY HAYNES OF MASON, MICHIGAN, is growing high-oleic soybeans on about 300 acres this year. “I like the fact that they have potential to make better soy-based lubricants,” he says. He has a contract to grow them for a local processor, and the premium is about 80¢ a bushel. “I’m adequately re-warded, but I’m not really growing them for that. It’s a good idea because it’s good for the industry, with the advanced qualities of the oil.

“I’ve talked to restaurant people who use cooking oils, and I o� en ask what they like. Soybean oil usually is at the top of their list. � ey may not understand everything I do to grow them and all of the issues, and that’s OK. � ey just have to be happy with the product, and that’s what I’m trying to do. Above all else, it’s about having customers who think my product is healthful and nutritious,” he says.

Haynes’ soybeans are Monsanto’s Vistive Gold brand. “I’m impressed with how they look, and I see no negatives in per-formance or yield potential or disease issues,” he says.

His landlord has open bins that Haynes will use for the Vistive beans to keep them separate from his traditional soybeans. “It’s not a problem for me. I think in the future just about everything that’s grown will be identity preserved, so I am learning how to do it. I’m trying to match up my farm with the future,” he says.

Good for Us, Good for ThemLUKE SMITH OF SMITH FAMILY FARMS, ROCHESTER, INDIANA, has grown the DuPont Pioneer Plenish soybeans each of the last two years. � is year, he has about 800 acres, or half of his soybean total. “I saw it as an opportunity to do something good and to get a premium for it,” he says. “One thing I’ve learned is that there is no yield drag on these soybeans. � ey yield right with my best conventional soybeans.”

Smith’s family has a grain elevator in addition to the farm, and the elevator is a collection point for other farmers growing the high-oleic soybeans in the area. “We have two grain dumps, and we can dedicate one of them to only handling the Plenish soybeans. We don’t run the risk of contamination,” he says.

Smith says his soybean yields generally run between 55 and 60 bushels an acre, and that’s what the Plenish beans have been. “Last year, I had one whole � eld that did 64 bushels, and that was as good as any bean � eld I had,” he says.

“I like the health aspects of the high-oleic soybeans. � ey will have more demand, because the oil has no trans fats. It’s good for farmers and end users,” he says.

Smith Family Farms probably won’t ever grow all high-oleic soybeans. Smith says he sells some soy-beans early a� er harvest for cash-� ow reasons, and he can’t always do that with the Plenish contract.

He’s not concerned about identity-preservation problems. “If a practice makes sense for my farm, I will make it work,” he says. “I have the technology to keep the soybeans identi� ed. � e com-bine has the variety locator function on the computer. When I pull into a � eld, it tells me what was planted there.”

THESE FARMERS HAVE GROWN HIGH-OLEICSOYBEANS AND SAY IT’S ALL ABOUT

Luke Smith of Rochester,

Indiana

“LAST YEAR, I HAD ONE WHOLE FIELD THAT DID 64 BUSHELS, AND THAT WAS AS GOOD AS ANY BEAN FIELDI HAD.” – Luke Smith

By Gene Johnston


They Want it, I Grow itJASON SCOTT OF HURLOCK, MARYLAND, is in his third year of growing Plenish soybeans from DuPont Pioneer. “I started with 30 acres, expanded to 250 last year, and have about 400 acres this year,” he says. � at’s about 60% of his soybean acres.

Scott sells his beans to Perdue Farms, which has a soybean crushing business. “It appears they have a high demand for

the Plenish oil,” he says. “My premium has been 50¢ to 60¢ a bushel.”

Yields have been very comparable to conventional soybeans, Scott says. “Where I irrigate, I can grow

65 to 70 bushels per acre consistently, and the Plenish beans have done that. I plant a lot of double-crop soybeans a� er a small grain.

If I can get the double-crop beans in by early July, I can grow 60-bushel soybeans as a second crop.”

� e high-oleic beans are Scott’s � rst entry into identity preservation. “I’ve always run a lot of test

plots, so I’m used to cleaning out planters and other equipment to avoid contamination. It’s not a big deal,” he says. � is year, he used a grain drill for his conventional soybeans and a planter for the Plenish beans, so it wasn’t

di� cult to avoid contamination at planting. At harvest, only the Plenish soybeans will be stored on the farm.

“My Plenish soybeans are maturity group 3, and most of my conventional beans are 4s, so it’s easy to see which is which when harvest comes,” he says.

Scott says he has split � elds between Plenish and convention-al soybeans. In every case, the Plenish soybeans outyielded the conventional. “I don’t know if that’s just an accident that it happened every time, because it was the same genetics except for the Plenish trait,” he says.

“Some of my soybean customers want healthier oil, and farmers need to grow it,” he says in support of the high-oleic crop. “Having no trans fats is a huge selling point. I’m excited about the potential for these high-oleic soybeans.”

The Bean of the FutureJOHN TUTTLE OF BELLE CENTER, OHIO, is growing Monsanto’s Vistive Gold soybeans for a third year in 2014. “� e � rst year was a test; the last two years, I’ve been 100% Vistive,” he says. � at’s about 700 acres of soybeans this year, and they are sold locally to Heritage Co-op, which markets them to processors. Tuttle’s premium is 60¢ a bushel.

“� e � rst year, I had both Vistive and conventional soy-beans. � ere was no di� erence in yields,” he says. “Last year, I didn’t have conventional, but I know my Vistive yielded very comparable to conventional soybeans in the area. I’m not losing any yield with them. � ey are Monsanto’s top genetics package.”

Tuttle usually stores the high-oleic beans on the farm in a dedicated bin. Processors usually want them by mid-Decem-ber, so he doesn’t store for long.

“� ere are some hoops I have to jump through as far as clean-ing out the planter and the combine, but it’s not that bad,” he says. “Monsanto is very helpful. I clean out the planter and

combine thoroughly between crops anyway, so it’s not really a change to keep the soybeans pure.”

While Tuttle says he likes the premium, he grows Vistive Gold mostly because he thinks it’s the soybean of the future. “I want to be a part of that,” he says. “So far, it’s been a very positive experience.” •

“THE FIRST YEAR, I HAD BOTH VISTIVE AND CONVENTIONAL SOYBEANS. THERE WAS NO DIFFERENCE IN YIELDS.” – John Tuttle

Jason Scott of Hurlock, Maryland


RICHARD GALLOWAY IS ONE OF THE SOYBEAN INDUSTRY’S LEADING EXPERTS ON DEVELOPING NEW MARKETS FOR “THE MIRACLE CROP.” Galloway consults extensively with vegetable oil re� ning and grain-handling industries. � e president of Galloway and Associates LLC is currently lead consultant for two initiatives of the USB:1. Improving the nutritional value of soy-bean oil and soybean meal.2. Increasing protein and oil levels of soybeans.

In association with the soybean checko� , he is a consultant to QUALISOY, a collabo-rative e� ort among the soybean industry to develop and market trait-enhanced soybeans, including high oleic.

Successful Farming® recently visited with him about the high-oleic future.

SUCCESSFUL FARMING: Why are farmers now hearing about the new high-oleic soybeans?

GALLOWAY: � e high-oleic soy (HOS) is superior to traditional soy oil in some applications for two

reasons. � e � rst is functionality. HOS has among the highest stabili-

ty ratings of all the liquid high-stability oils available, comparing very

favorably with partially hydrogenated oil that has been relied upon in the past.

Soybean oil contains natural antioxidants that are not prevalent in competing oils. � e other reason is nutritional value. HOS is among the lowest in total saturated fat,

and it’s rich in monounsaturated fat. � e high-oleic trait does not contribute trans fat to food products, as does partially hydroge-nated oil.

QUALISOY is undertaking an exten-sive battery of functionality testing and food-sensory evaluations. When completed in 2015, this will provide food compa-nies interested in a high-stability oil with independent, third-party information on which they can rely without question. It will ultimately bring more demand for farmers to grow the high-oleic soybeans.

SF: What is the potential of HOS over the next few years?

GALLOWAY: Acreage will grow to as much as 7 million across 14 states within � ve years. When seed availability has been expanded to its maximum capability, HOS beans will be grown in up to 24 states and over 18 mil-lion acres. � is will make HOS the fourth biggest row crop in U.S. agriculture a� er corn, traditional soybeans, and wheat.

At that point, it is not a specialty soybean; it’s a totally di� erent commodity for both the American farmer and for industry. � e broad area in which HOS will be grown assures an adequate supply at a competitive price from crop year to crop year.

SF: Will market outlets be in place to support that many new acres of HOS?

GALLOWAY: � is industry is supported by 63 soybean crushing plants that produce 20 billion pounds of soybean oil every

Soybean

VisionaryEXPERT RICHARD GALLOWAY SAYS HIGH OLEIC WILL

TURN DEMAND IN FAVOR OF U.S. SOYBEANS.

By Gene Johnston

Soybean


year. � e extensive infrastructure assures availability, competitiveness, and a supply chain that is very manageable. By 2024, I expect the food industry in North America to be using over 6 billion pounds of HOS oil, with another 3 billion pounds utilized in nonfood applications and exports.

SF: When we get to 18 million acres of the high-oleic soybeans, how will that compare to other competing high-oleic vegetable oils?

GALLOWAY: Due to its expected superior functionality and the fact that it will be grown and the oil re� ned so close to con-sumption (that is, in the U.S.), it should be expected to be the dominant high-stability liquid oil in the country.

SF: Which oil is the biggest competitor to HOS in food applications?

GALLOWAY: � at would be high-oleic canola oil for general frying, palm oil for frying shortenings, and olive oil, sun� ower oil, sa� ower oil, and peanut oil for high-end specialty uses. I expect soy to be priced much lower than most of its competitors once the market is mature.

SF: Will South America be a big com-petitor to grow HOS, just like it is with conventional soybeans?

GALLOWAY: � e South American agricultur-al infrastructure is not well suited to crops that require segregation. � eir competitive advantage (besides the export tax policy) is high volume and low price. No, the U.S. will dominate the global production of HOS liquid high-stability oil.

SF: Why not just go for 100% high-oleic soybeans, if they are equal in yield and superior for end users?

GALLOWAY: I think this is unlikely, at least for many years. Traditional soybeans serve a very large market really well, certainly over half of U.S. edible oil consumption. Even though there will be 18 million acres devoted to HOS, there will still be demand for over 60 million acres of tra-ditional soybeans. � at’s solidly in second place behind corn as the top row crop in the U.S.

SF: Farmers who already grow the HOS receive premiums of about 50¢ a bushel. Will that go higher as demand builds?

GALLOWAY: No. Direct premiums to con-tract high-oleic soybeans will likely decline over the years, as many markets transition to be dominated by HOS volume. � e real value to farmers is in increasing overall demand for soybean oil in both edible and industrial uses where it is not demanded now. � is substantial increase in demand

will result in higher prices for soybeans, whether high oleic or traditional.

SF: HOS beans are genetically modi� ed. With this being an output trait that enhances nutritional quality, might HOS turn some of the anti-GMO tide?

GALLOWAY: � is is the � rst output trait for soybeans, and it should be interpreted as an argument for the value of biotechnology in agriculture. •

Science RulesScience rules the day with new farm technology, and that’s especially true with the high-oleic soybeans coming from Monsanto and DuPont Pioneer. Their plant breeders have been devel-oping independent high-oleic varieties in the last 10 years.

Steve Schnebly, senior research man-ager for Pioneer, says, “We’re dealing with a biological process that we take one step at a time. Our Plenish soybean varieties need to perform on par with what farmers grow today and will grow in the future.”

He says the goal is to get the high-oleic trait into varieties that have the full defensive package of traits: sudden death syndrome toler-ance, phytophthora resistance, soy-bean cyst nematode resistance, and herbicide tolerance. “Our customers expect those traits, so we’re building them into our Plenish varieties. We’re very con� dent they will perform at the highest level of yield,” he says.

Up to now, high-oleic soybeans have been grown in Ohio, Indiana, and Delmarva (Delaware, Maryland, and Virginia). Schnebly says they will expand the Plenish offering to more maturity groups. “We’ve enlarged our testing footprint to enable pro-cessor expansion into new growing areas in the future,” he says. “We will continue to integrate the Plen-ish trait into new germplasm in our normal breeding process.”

Monsanto has been going through a similar development and testing pro-cess with its Vistive Gold high-oleic soybeans. Soybean breeding lead Warren Kruger says, “We’ve spent a lot of time researching the value of the high-oleic trait. It’s a unique trait that gives us an opportunity to regain market share for soybean oil in the food industry.

“Not just that, these soybeans can help us build new industrial uses for the oil.”

Kruger says Monsanto would only invest a decade of time and re-sources into a product like Vistive Gold if it sees great value to grow-ers, the rest of the soybean value chain, and to consumers, as well.

Farmers who grow the Vistive Gold soybeans will � nd competi-tive performance to top-yielding commodity soybeans, he says. “We have gone to great lengths to make the grower experience a positive one. We’ve brought the full breadth of our molecular breeding technology to this new trait. Vistive Gold soybeans have to give the highest performance and be higher in composition and value.

“They also have to give growers access to whatever new germplasm and trait platforms come in the future,” Kruger says. •


DIETITIANS AND FOOD EXPERTS SAY THE NEW HIGH-OLEIC SOYBEANS YOU’LL GROW IN THE FUTURE ARE JUST WHAT THE DOCTOR ORDERED.

Lisa Katic is a dietitian and owner of K Consulting, a nutrition policy consulting � rm. First, she says, don’t forget that soy-bean oil has always been a good, preferred product. “As a cooking oil, it is long known for its quality and taste. It has a good nutri-tion pro� le, and it is the number one source of vitamin E in our diets. It’s plentiful and readily available for all cooking applica-tions,” she says.

It does have a major weakness, however. To create stability, or lasting power, it has to be hydrogenated. “When you hydrogenate, you make it a little more solid by adding hydrogen to the chemical makeup,” says Katic. “When you do that, you create trans fat in the � nished product. It turns out that the trans fat is more detrimental to health than we used to think. It may contribute to heart disease.”

Just a few years ago, food regulators decided that trans fat levels had to be listed on food labels, and that’s when demand for soybean oil began to su� er. Some food companies have turned to sun� ower, peanut, canola, sa� ower, and olive oil because of the trans fat issue. � e problem with those alterna-tives is that they are less plentiful and more expensive than soybean oil. � ey also may have a di� erent taste that carries into the cooked foods. “Soybean oil has a relatively

neutral taste that makes it very desirable,” says Katic. “Sometimes, food companies blend oils to get what they want.”

� e negativity about soybean oil and trans fat goes away with the new high-oleic soybean oil. � e saturated fats are lower, and the increased oleic acid gives it more stability and shelf life without hydrogena-tion. � at’s good for frying uses, where the high-oleic oil has two to three times longer fry life than conventional soybean oil. It’s also good in baking uses like crackers or cookies that may sit in transit or on a shelf in a grocery store for a while.

Katic has tasted foods and snacks made with high-oleic soybean oil, and it has the same neutral taste as traditional soybean oil. “It’s a great-tasting cooking oil,” she says.

Now, she says, the challenge is to create the new, healthier soybeans in su� cient quanti-ties for food companies. “If farmers can do that, then I’m con� dent the demand for this oil will be there. For consumers, believe me, this is a big deal. � ey’ll get a product with no trans fat and with all the good � avor characteristics,” she says.

“In my world, I hear, ‘Give us healthier food.’ I don’t know if farmers hear that message, but when I talk to producers, I tell them to get on this bandwagon,” she says.

Marilyn Schorin, a dietitian and consultant to food companies at Schorin Strategies, echoes Katic. � ere are three things that are

Doctor’s

OrdersDoctor’s

FOOD EXPERTS WEIGH IN ON THE NEW SOY OIL. IT’S A VERY BIG DEAL WITH FOOD COMPANIES AND CONSUMERS.

By Gene Johnston

paramount with food companies when it comes to cooking oil:

1. Taste. Soybean oil, with its neutral taste, doesn’t change the food itself.

2. Usability. Restaurants, especially, want a cooking oil that is stable, can be reused, and has a long shelf life.

3. Health. They want no trans fat issues.

“Soybean oil has to compete with two major oils: canola oil and olive oil,” says Schorin. “Neither is as plentiful as soybeans, and olive oil has a signi� cant cost disadvan-tage. Canola also has to be hydrogenated for some uses.”

Although high-oleic soybeans are genetical-ly modi� ed, Schorin is not convinced that issue will in� uence consumer choices. “� is is a better oil with the taste they like and with strong health bene� ts. We’ll have to see what happens if GMO labeling require-ments come to pass,” she says.

Her message is simple. “High-oleic soy-beans present farmers with an opportunity to get at the forefront of what everyone in the food industry – from consumers to food companies to government health agencies – has said it wants: healthier choices,” she says. •


With high oleic soybeans, you can take back the market share you lost to canola and other crops. High oleic are top-performing varieties packed with innovation your end-use customers want. From supermarket food brands to

restaurant chains, high oleic soybeans offer you more market opportunities. Grow it now, and you grow your profi tability.

Talk to your local seed rep for the best varieties in your area or visit SoyInnovation.com

Th e yield you want, the demand you need – that’s high oleic.

Funded by the soy checkoff.


PRESORTED STANDARDU.S. POSTAGE

PAIDPEWAUKEE, WIPERMIT NO. 620

High oleic soybeans are the top-performing varieties packed with innovation your end-use

customers want. For industrial users, high oleic provides higher heat stability for a renewable

alternative to petroleum products. For you, high oleic offers more market opportunities. Grow it now, and you grow your profi tability.

Talk to your local seed rep for the best varieties in your area or visit SoyInnovation.com

Th e yield you want, the demand you need – that’s high oleic.

Funded by the soy checkoff.


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