Decatur, Illinois
August 30, 2005
The customer’s always right. Businesses have
lived by these important words to meet customer demand for
decades. U.S. soybean farmers are no different. The United Soybean Board
(USB) and soybean checkoff launched the Select Yield & Quality
Initiative three years ago to better meet customer quality
demands and now international customers are providing feedback
to U.S. farmers as to why this initiative is so vital.
“We targeted the Upper Midwest with this initiative, not because
farming abilities are lacking in this area, but because the
geographic conditions tend to produce lower protein levels,”
says Greg Anderson, USB Chairman and soybean farmer from Newman
Grove, Neb. “By working with seed companies and processors, the
soybean checkoff is trying to provide farmers with varieties
that hit 19 percent oil and 35 percent protein, but without a
yield drag and in some cases, that even offer a premium.”
Checkoff farmer-leaders landed on the 19-35 goal based on input
from overseas customers and the constant demand for Hi-pro
soybean meal. The combination of 19 percent oil and 35 percent
protein maintains the oil levels needed to supply the market and
allows high enough protein to satisfy customers needing
consistency for feed. International buyers all over the world
are telling checkoff farmer-leaders they want to buy U.S.
soybeans, but that they may be forced to look elsewhere, more
specifically Brazil.
“The high levels of protein and oil content are very important
to us,” said Cindy Yang Xiuchun, manager with Qinhuangdoo Golden
Sea Grain & Oil Industry Co. based in China. “Nowadays the oil
content and protein levels of Brazilian beans are much higher
than those from the United States; that means we’ll get a better
profit by producing soybean meal with more oil and higher
protein. Of course, the [amount of] heat-damaged beans from
Brazil are higher than those from the United States, which is a
disadvantage. So if you can produce soybeans with higher protein
those will be the best beans in the world.”
With China being the number one export customer for U.S. soybean
farmers, and customers throughout China and all of Asia
demanding higher protein, it’s hard to ignore the need for
higher protein and oil. But Anderson stresses checkoff
farmer-leaders don’t want farmers to sacrifice in this quest for
improved quality.
“Yield is king and that will never change. We’re farmers and we
know that better than anyone,” says Anderson. “What we want our
fellow farmers to do is consider yield and agronomics first,
then ask their seed dealer which of those varieties will yield
the highest protein and oil combination. Right now our survey
data shows one in three farmers in the Upper Midwest are doing
just that and that’s a huge success for the checkoff. But we
want to get every single farmer asking about 19,35.”
Farmers in other parts of the Midwest and the South may wonder
why the checkoff is focusing so heavily on quality in the Upper
Midwest. The biggest reason is the impact on overall averages
for the U.S as well as perception internationally of the quality
of U.S. soybeans. On top of that, checkoff-funded research has
shown the loss of one major customer could truly impact every
single soybean farmer. If the United States were to lose China
as a customer, the price of soybeans could drop 31 cents and
640,000 soybean acres could be lost.
For more information on how to reach the 19 percent oil and 35
percent protein levels in U.S. soybeans, visit
worldsbestbeans.com.
The USB is made up of 64 farmer-directors who oversee the
investments of the soybean checkoff on behalf of all U.S.
soybean farmers. As stipulated in the Soybean Promotion,
Research and Customer Information Act, USDA’s Agricultural
Marketing Service has oversight responsibilities for USB and the
soybean checkoff. |