High Oleic Soybeans: New Market Opportunities For Growers

In the context of challenging commodity markets, an emerging opportunity for soybean producers is increased demand for soybeans with high oleic acid content. Available through some of the major seed companies, high-oleic soybean (HOSB) varieties are often grown under Identity Preserved (IP) contract and can help farmers secure a premium that routinely exceeds the per acre ROI of conventional soybeans.

Consumer Interest in High-Oleic Soybeans

A primary reason for increased high-oleic soybean demand rests with consumers' shift toward health-conscious decisions about nutrition. High-oleic soybean oil — boasting a greater percentage of unsaturated fat — is preferred as a healthy substitute to conventional frying oil, which is used widely across the restaurant industry. Same goes for the vegetable oil found in thousands of commercially prepared baked goods, snack foods, salad dressings and more.

It is worth noting that some IP contracts on today's market are for non-GMO soybeans to meet consumer demand for food ingredients that have not been genetically modified. For most farmers, growing non-GMO soybeans will require a significant change in weed management practices. There are nevertheless effective strategies at your disposal, but careful consultation with an agronomist is recommended.

HOSB and Animal Nutrition

Another important factor in the expanding high-oleic soybean market can be attributed to implications for animal nutrition. Including HOSB in dairy feed formulations can make a positive impact on milk production volume and milkfat composition, which, in turn, support a producer's profitability. For swine and poultry operations, inclusion of high-oleic soy at higher rates translates to improved carcass and meat quality.

Dairy Rations

Professor Adam Lock, Ph.D., is Associate Chair for Farm Operations at Michigan State University, where he oversees the Dairy Lipids Nutrition Program and Laboratory. He has led a growing number of studies — including several projects funded by soybean farmers through their national and local checkoff — on high-oleic soy in dairy rations.

His HOSB research has yielded positive results, and the dairy industry is taking notice. "We consistently see strong improvements in milk yield and milk components," said Lock. "What some of the larger dairy producers are doing now is contracting with local soybean growers and paying them a premium for high-oleic soybeans. So, to me, that's a win-win."

Because high-oleic soybeans need to be roasted to a specific temperature and then ground for inclusion in dairy rations, some dairy operations have invested in their own processing technology. Others rely on local feed suppliers for preparing rations with HO soybeans. Either route still represents a net cost savings for producers, who would otherwise be inclined to pay far more for commercial energy and protein feedstuffs.

These developments bode well for South Dakota soybean growers given the increasing presence of dairy operations along the proverbial I-29 corridor.

Swine Nutrition

Farmer-funded research has demonstrated that swine diets with higher inclusion rates of high-oleic soy can dramatically change the fat content in pigs. Bob Thaler, Ph.D., is Farm Credit Services of America Endowed Chair in Swine Production and Distinguished Professor at South Dakota State University, where he has earned a reputation as one of the world's leading swine specialists.

"One of the cool things about pigs is whatever type of fat you feed them, that's the type of fat they put on their body," said Dr. Thaler. "As long as you meet the nutrient requirements, they're going to grow the same and have the same efficiency. All we're going to change is the composition of the fat, be it marbling or the subcutaneous fat in the carcass."

According to this rationale, feed formulations with a greater percentage of unsaturated fat would result in pork products with improved unsaturated to saturated fat ratios. Thaler cited a checkoff-funded study he worked on alongside colleagues at North Dakota State University that examined inclusion rates of TruSoya, a high-oleic soybean variety, and their impact on swine carcass and meat quality. Their work confirmed that diets containing TruSoya boosted the concentration of unsaturated fatty acids, including oleic acid, in subcutaneous pork fat.

"Initially, I think it's going to be a niche market," said Thaler, explaining that harvested HOSB are typically extruded prior to being included in swine feed formulations. "You're going to have a higher-quality product on the plate, and people are willing to pay for that."

Adding Value for Soybean Producers

Uncovering new opportunities for soybean producers to secure added value is central to the work of the South Dakota Soybean Research and Promotion Council. For more information, please visit sdsoybean.org or talk to your local district director.