February 18, 2005

US soybean lagging behind Brazil's in quality - study

US soybean growers will need to make a concerted, coordinated effort to match the quality of soybeans coming out of Brazil, according to studies recently conducted by the American Soybean Association (ASA) with funding from the United Soybean Board (USB).

The study also found that Brazilian soybeans on average contain more protein and oil, and less foreign matter, than US varieties.

Brazilian producers typically raise a soybean crop containing an average of 21.04 percent oil and 38.23 percent protein, according to ASA/USB Director of Trade Analysis Craig Ratajczyk. In contrast, U.S. soybeans in 2004 contained just 18.7 percent oil and 35.16 percent protein, according to the ASA/USB crop quality report.

Brazilian beans also are cleaner, according to Ratajczyk. Brazil¡¯s standard for foreign matter (FM) content is just 1 percent, compared to a US standard allowing two percent FM in No. 2 soybeans.

State and national soybean industry programs are working to turn the grower¡¯s eye, more and more, toward quality. While US soybeans are consistent in quality, their protein and oil content must rise-and FM content fall-in order to maintain international market share in the face of Brazil¡¯s fierce competition, experts agree.

Key tools and programs are aimed at lifting quality in the key soybean growing state of Illinois. For instance, producers need not give up yield when selecting varieties high in protein and oil.

Producers currently have little economic incentive to implement new methods, but this situation is about to change. Producers can now find opportunities to make a little more money improving protein and oil.

In the US, the Illinois Soybean Checkoff¡¯s Soybean Quality Rewards (SQR) program is working to establish premium-paying outlets for soybeans meeting certain criteria for protein and oil content.

Through SQR, seven Illinois delivery points will pay up to six cents more for soybeans containing a specified soybean content. Archer Daniels Midland Co., Bunge, and Consolidated Grain and Barge offer participating locations.  Farmers have acknowledged the importance of processors' initiatives to overall increasing the quality of US soybean.