March 8, 2006

US soy growers urged to increase protein and oil content

China has become an important market for US soy growers and steps need to be taken to keep the market, United Soybean Board consultant Jerry Galloway said at the 2006 Northern Soybean Expo.

China accounts for 26 percent of the total US soy exports and more than half of the soy shipped from the Pacific Northwest (PNW) are destined for China.

The majority of the soy going through the PNW comes from the Dakotas, Minnesota and other adjacent states.

Galloway said there is a drawback to using soybeans from this region as the protein and oil levels are lower compared to those from Brazil.

China would like to see soybeans with an average protein content of 35 percent and oil percentages of at least 19 percent, but weather conditions in the area often produce soybeans with lower oil and protein values.

Since these lower levels translate into poorer returns for Chinese soybean crushers, US soybeans shipped from the region fetch about 30 cents a bushel less than soybeans from Brazil.

Galloway said US soy growers stand to lose about US$1.3 billion if China were to take its business elsewhere.

Galloway urged soybean growers to take action to protect this important market.

When selecting soybean varieties for this coming planting season, producers need to plant varieties that have higher protein and oil levels, he advised.