Assessing The Factors That Affect The Demand For Identity Preserved Soybeans

Author : Suthijit Traiyongwanich
Publisher :
ISBN 13 :
Total Pages : 200 pages
Book Rating : 4.:/5 (446 download)

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Download or read book The Economics of Marketing and Processing Identity Preserved-soybeans written by Suthijit Traiyongwanich and published by . This book was released on 1999 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study was to evaluate the economic feasibility of an alternative marketing and processing system for identity-preserved soybeans for which the meal is used as an ingredient in swine diets. Soybeans with genetically enhanced lysine were the focus of the study. The alternative marketing system proposed here simulated necessary changes that enabled the firms to ensure the integrity of IP soybeans from their production by soybean farmers through the entire marketing system to their formulation into feed. The proposed system assumed: (1) the addition of a small-scale crusher in a feed mill in a geographic area where genetically improved soybeans and hogs are raised, (2) farmers would grow and deliver their IP soybeans directly to the feed mill, and (3) small-scale mechanical equipment using extruder/expeller (EE) and steam/expeller (SE) were used to crush IP soybeans in the feed mill. Finally, the resulting meals were assumed to have lysine levels high enough to avoid supplementation in the rations that were incorporated into swine diets for all size pigs. A budget template was developed to compare the cost per ton of processing various IP soybean rivals under the alternative system relative to conventional 44% and 48% commodity meals. The processing costs, including assembling and crushing, were estimated based on two types and sizes of two crushing technologies. Minimum plant sizes of 14,815 and 21,831 tons of meal annually were assumed for the EE and SE processes, respectively. Differences in this IP soybean study, relative to traditional soybean production, included: (1) a $0.25/bushel incentive payment to soybean farmers, and (2) cost savings from in-plant crushing to minimize the costs of transportation and marketing. Additional benefits of processing enhanced soybean meals included the residual oil in the meal and the genetically increased lysine level relative to commodity soybeans. A linear programming model was used to formulate the least-cost rations using difference types of soybean meals for each swine cohort size. Results indicated that, overall, rations including IP soybean meal with high lysine were more valuable than those of commodity soybean meals. High lysine meal (48%) resulting from the SE process was found to generate the largest cost saving of $1.23 per bushel of soybeans on average for the life of the pig. An estimated cost saving of $4.80 per pig would accrue to swine feeders if they gained all of the economic benefits from using IP soybean meal. However, these cost savings of using IP soybeans are highly dependent on soybean prices, soybean oil prices and the premium paid to farmers for growing the IP soybeans as well as the price of its close competitor--conventional meal supplemented with synthetic lysine.