Special Section: Soybeans

Bean there, doing that
Soybeans present a myriad of value-added opportunities

By Dan Lemke
 

Only 50 years ago, the U.S. soybean crop was relatively minor. Today, it is one of the most widely planted crops in the nation.

Minnesota soybean production ranks third in the nation. In 2003, about 7.5 million acres were planted to soybeans, producing nearly 230 million bushels. Only Illinois and Iowa grow more beans.

The prolific oilseed has become popular with farmers because of the myriad value-added uses for soy oil and meal — paints, inks, adhesives, lubricants, plastics. Soybeans are part of our everyday life. Recent advances in soy-based biodiesel and dust control products are spurring even greater demand.

Already the number one vegetable-protein source in the world, soybeans are “very adaptable to new uses,” says Jim Palmer, Minnesota Soybean Growers executive director.

However, foreign competition and yield improvement are keeping the soybean supply high, forcing producers to continue pursuing new uses.

“There are more soybeans on the market from places like South America with higher oil and protein contents, so we need to find new uses to open markets to keep prices up,” says Sue Meyer, a New Prague farmer and Minnesota Soybean Research and Promotion Council director.

Palmer says every commodity gravitates to its greatest and best use first — food — then to industrial applications. As supplies increase, so do opportunities.

AURI has worked collaboratively with the Minnesota Soybean Growers on dozens of projects that have led to new products, services and businesses, says Max Norris, AURI director of projects and technology. “That includes a great deal of work on biodiesel.”

Livestock feed

About 50 percent of Minnesota’s annual soybean production is exported. The other 50 percent is processed for meal and oil. Some of the meal is sold to Canada and Mexico, but most is fed to Minnesota livestock.

Livestock is estimated to be a $28 billion industry in Minnesota. Farm-raised animals consume about 1.8 million tons of soybean meal per year, or about 74 million bushels of soybeans. Soybean producers, tied to the livestock industry’s health and growth, support projects such as on-farm processing of soy meal.

Biodiesel

A legislative mandate, requiring a 2-percent biodiesel blend in every gallon of diesel fuel sold in Minnesota, is scheduled to take effect in June — opening a vast new industrial market for soybean oil.

In the United States, biodiesel demand is estimated to increase by as much as 850 percent over the next 10 years. Only about 150 million gallons are now produced in the country annually, including about 3 million gallons in Minnesota. However, with two biodiesel refineries under construction and others planned, the state’s capacity should grow significantly.

Currently 70 percent of the soybean oil refined in Minnesota is for food uses -- vegetable oil, shortening and margarine, Palmer says. “Biodiesel will cause a shift in use for some of that oil.”

Besides increased demand for biodiesel, health concerns could prompt some changes. To make margarine and shortening, soybean oil is hydrogenated, creating trans fatty acids that can be detrimental to heart health. “What was a premium use for oil may mean that oil now moves into an industrial market. The oil will still go to its highest and best use, but industrial applications will increase as it becomes more plentiful.”

Industrial uses

Most consumers have no idea how prevalent soy products are in both consumer and industrial applications. From flexible foams and rigid soy plastics used in carpet backing, insulation, furniture, auto parts, shoes, roof coatings, mattresses and pillows — to cleaners, lotions, personal care products, candles, paints, adhesives and lubricants — soy-based products are widely available and accepted.

Palmer says value additions don’t always come from new products, but rather renewable replacement for products that already exists.

“How fast (a soy-based replacement) is accepted will depend on how it compares to what’s being used.”

“To replace an existing ingredient, it can’t just be equal, it has to be better,” Palmer says. “It used to be that cost, quality and consistent availability were the only considerations for ingredients. Now, I think environment is a key factor.”

Soy-based lubricants and bioplastics are some of the newest developments. Soy oil is also being investigated in electrical transformers.

Soy foods and nutraceuticals

Traditionally, soy foods have been most widely used in Asia. However, soy is increasingly popular across the globe. While sometimes roasted or boiled in whole form, soybeans are more commonly used as food ingredients in breads, cereals, meat products and in meat substitutes. More homes are using products such as soy milk and texturized vegetable protein.

Soy’s high-protein, low-carbohydrate content is appealing — and it has nutraceutical benefits. In 1999, the Food and Drug Administration said a diet including soy foods reduces the risk of heart disease. Isoflavone, a soy component, has been shown to reduce cancer risk.

Producers are pursuing opportunities for soy-based components and extractions that can be used in nutraceutical and medicinal applications. While these uses may not consume large quantities of beans, they could provide profitable niche markets for producer-driven enterprises.

“Every new use we find for soybeans increases their value,” says Jim Call, MSRPC char, “which means more profit for Minnesota farmers.”