This is the first year high-oleic soybeans can be grown under contract. High-oleic soybeans provide farmers the opportunity to reclaim lost soybean oil market share and positively impact their profit potential.
Since 2000, primarily due to the increased focus on trans fats, soybean oil has lost 15% of the edible oil market share in the U.S. Before that time soybean oil dominated the edible oil market. Thanks to high-oleic soybeans, Ohio soybean farmer and United Soybean Board Director John Motter says the soybean industry has an opportunity to recapture some of that market share. He says high-oleic soy represents a bright future for soybean production that will help farmers keep up with customer demands.
"The high-oleic soybean trait is our way of recapturing the market share of edible oils," Motter said. "It creates demand for soybean oil and the demand/supply curve equals price, the greater the demand the higher the price, so it is good for the soybean industry to create more demand for our products."
High-oleic soybeans can enhance the market value of soybeans without lowering expectations in the field. Motter is growing high-oleic soybeans on his farm. He says the seed companies have recognized the need for these new varieties to perform similarly, or even better than existing varieties.
"The companies are still putting the same genetic package together," Motter said. "They're using the same traits, the same disease resistance package, the only thing different about this is it has a better oil trait."Motter says the high-oleic soybean trait is the future. He says U.S. soybean growers need to embrace it quickly because the food industry is asking for the product. He notes high-oleic soybean oil has the potential to recapture 3.8 billion pounds of soybean oil by 2020, representing the oil from 341 million bushels of soybeans.