Industry efforts aim is to focus U.S. farmers on producing quality, processors on providing premiums

It is going to take a concerted, coordinated effort among U.S. soybean growers if they are to match the quality of soybeans coming out of Brazil. Brazilian soybeans on average contain more protein and oil, and less foreign matter, than U.S. soybeans, according to studies recently conducted by the American Soybean Association (ASA) with funding from the United Soybean Board (USB).

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, conducted annually by Iowa State University’s Drs. Thomas Brumm and Charles Hurburgh.

Brazilian beans also are cleaner, according to Ratajczyk. Brazil’s standard for foreign matter (FM) content is just 1 percent, compared to a U.S. standard allowing two percent FM in No. 2 soybeans. That standard, notes Brumm, does not reward cleaner beans. Fortunately, the U.S. average for FM currently is better than the standard.

“Although No. 2 soybeans are allowed two percent FM, we are exporting at levels considerably lower - 1.5 to 1.7 percent,” said Brumm. “So even without economic incentives, there is an eye toward quality.”

State and national soybean industry programs are working to turn the grower’s eye, more and more, toward quality. While U.S. 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 including Brumm and Ratajczyk agree.

Key tools and programs aim to help Illinois farmers improve quality. For instance, producers need not give up yield when selecting varieties high in protein and oil. The checkoff-funded Varietal Information Program for Soybeans (VIPS), an online database found at www.vipsoybeans.org, allows producers to identify varieties strong on yield as well as protein and oil content.

U.S. vs. Brazilian Quality

“It’s difficult for producers [to implement change] when there’s no economic incentive,” said Brumm, but that situation is changing. “A producer can look for opportunities where he can make a little more money improving protein and oil. There are some places they can do that.”

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. Steve Scates, Shawneetown, IL farmer and Chair of the Illinois Soybean Checkoff Board acknowledges the important role that these processors play in improving the quality of Illinois soybeans, “We appreciate the leadership role that these three processors have taken to increase the value of Illinois soybeans by identifying quality traits and paying a premium for them. Their participation is vital to the success of this program.”

Farmers must register for the SQR program by March 31, 2005, to be eligible for the 2005 crop, and will receive help identifying appropriate varieties for planting. For more information or to register, call the Illinois Soybean Checkoff office at (309) 663-7692.

At the national level, ASA is now tracking FM content through the delivery chain, hoping to determine its nature and entry points, said Ratajczyk. Study results, expected this June, may explain why FM levels have held steady, even as Roundup Ready technology—which some experts had thought would cut FM content—came into widespread use.

The Illinois Soybean Checkoff Board is made up of 18 volunteer farmer-leaders who direct the funding of programs that enhance demand and market viability of soybeans. The ISCB administers one-half of national soybean checkoff funds collected in Illinois.