Canada`s Soybean Value Chain

Canada’s Soybean Value Chain
2013 edition
This publication is an update of a report about Canada’s soybean value chain first issued by Soy
20/20 in 2008. The industry has expanded and evolved over the last five years, including an
increase in soybean acreage and production volumes, and development of new markets and
new opportunities.
This report describes and quantifies the Canadian soybean value chain as a means of attracting
interest and investment in the entire sector and not just a specific link of that chain.
About Soy 20/20
Soy 20/20 brings together government,
academic and industry partners to
stimulate and seize new global bioscience
opportunities for Canadian soybeans. The
organization is supported by the Grain
Farmers of Ontario and by Agriculture and
Agri-Food Canada and the Ontario Ministry
of Agriculture and Food under Growing
Forward 2, a federal-provincial-territorial
initiative.
Soy 20/20’s activities are focused on
advancing industrial and food uses and
opportunities for Canadian soybeans. This
includes helping connect value-added market
opportunities with the resources needed
to make those opportunities a reality. Soy
20/20:
• Connects companies with funding to
develop or expand their manufacturing
capabilities;
• Facilitates constructive interactions
between companies and the soy research
community;
Canada’s Soybean Value Chain
• Builds bridges among companies to
stimulate business development and
growth of new market opportunities
for Canadian soybeans in Canada and
abroad; and
• Helps companies with market analysis and
business plan development as a basis for
developing or expanding opportunities.
Canada’s strengths in research capability,
industrial output, agricultural production, and
educational excellence, combined with the
ability to build networks and combine these
strengths in a focused effort will help keep
the Canadian soybean sector a global leader.
Soy 20/20 is a catalyst in building this
network, by focusing on real opportunities,
identifying and circumventing constraints,
and helping existing companies develop or
expand manufacturing capabilities.
1
Table of Contents
2
Trait development – seed trade
4
Identity Preserved contractors and exporters
6
Growers
8
Elevators
9
Processors
10 The soybean value chain
12 Oil
14 Protein
16 Hulls, fibre and minor components
17 Looking forward
Canadian soybean
industry overview
SOYBEANS
Harvested area (acres)
2008/09
2009/10
2,953,900
3,488,100
41.5
37.7
43.9
41.2
43.7
122,576
131,604
163,311
157,912
181,131
116
220
305
296
231
3,336
3,581
4,445
4,298
4,930
Average yield
(bushels/acre)
Total production
('000 bushel)
2010/11
2011/12
2012/13*
3,721,300 3,832,800
4,146,200
all units for below in '000 metric tonnes
Beginning stocks
Production
Imports
351
372
266
232
Total supplies
3,803
4,173
5,016
4,826
Exports
1,888
2,111
2,754
2,741
Crushing
1,280
1,293
1,448
1,410
Seed
148
157
163
174
Other domestic
disappearance
266
307
355
269
3,582
3,868
4,720
4,594
220
305
296
231
Total disposition
Ending stocks
Source: Statistics Canada, CANSIM Table 001-0017, 001-0041
*complete crop year data for 2012/13 not available at time of publication
Crop Year for soybeans is defined to be September – August.
2
Trait development – Seed trade
Soybeans have long been bred for agronomic
traits that benefit the entire value chain,
such as yield, consistency and disease
resistance. Identity Preserved (IP) traits were
originally introduced as a way of offering
a value-added program for farmers, while
focusing on the needs and wants of the end
user. The introduction of IP traits continues,
but now includes genetically modified (GM)
and non-food uses.
Soybean varieties are developed by both
publicly funded and private entities
in Canada. The private soybean seed
breeding industry is dominated by three
large companies – DuPont, Monsanto and
Syngenta – but others, like Hyland Seeds
(owned by Dow AgroSciences), Prograin and
Sevita are also active in the sector.
There are five publicly funded soybean seed
breeding stations in eastern Canada, each
of which is responsible for growing different
varieties depending on the growing season
of their particular location. The University
of Guelph has two stations in Ontario, in
Guelph and Ridgetown, which carry out
work through the research partnership the
institution has with the Ontario Ministry of
Agriculture and Food (OMAF). Agriculture
and Agri-Food Canada also operates two
stations in Ontario, located in Harrow and
Ottawa, and the Centre de recherche sur
les grains inc (CEROM) is responsible for a
breeding station in St Hyacinthe, Quebec.
The Canadian Seed Trade Association has
3,700 members who grow seed and is the
only Canadian organization to monitor and
certify pedigreed seed in Canada for all crops,
except potatoes.
Public and private soybean
breeders in Canada
Organization/
company
Breeding program
Public
Agriculture and
Agri-Food Canada
Non-GM
CEROM
Non-GM
University of Guelph
Non-GM
Private
Canada’s Soybean Value Chain
DEKALB (Monsanto)
GM
Hyland Seeds
(Dow AgroSciences)
Both
La Co-op Fédérée
Both
Pioneer (DuPont)
GM
Pride Seeds
GM
Sevita International
Non-GM
Semences Prograin
Inc.
Both
Syngenta
Both
U.S. companies supplying the
Canadian market
Organization/
company
Breeding program
Dairyland Seed
Company
GM
Greenleaf Genetics
GM
Northstar Genetics
GM
It can take eight to 15 years from the time
the first soybean cross is made to the time
a new variety is commercially available.
Breeding involves identifying variability,
finding parents with the needed traits, and
making the breeding cross. Researchers
also need to identify the best pure lines that
will generate yield and quality and pass
end use testing. That means identifying
breeding objectives is an important part of
the research program. And there are many
traits to work on – such as high protein, high
isoflavone, high vitamin E, high oil, high
sugar and fatty acids, among others.
Soybeans are being developed with specific
agronomic traits (eg. herbicide tolerance
or pest resistance), but also with traits that
make them more suited to their intended
end uses, such as specific food products or
industrial products.
In Ontario, GM-specific traits include low
linoleic and high oleic acid content and
resistance to glyphosate or soybean cyst
nematode. Non-GM-specific traits include
colour, seed size, and protein and sugar levels.
Food
Certain soy protein traits improve soy
beverage and food products. Beta conglycinin,
for example, improves the “mouth feel” of
soy to consumers as a way of making soybased foods more palatable and popular.
3
Comparison
The desire to eliminate trans fatty acids
Comparison of
of dietary
dietary fats
fats
(TFAs) from processed foods has led to the
Soybean
15
54
88
23
development of soybeans whose low linolenic
Soybeanoil*
oil
15
54
23
oil doesn’t require partial hydrogenation
High
10.5
2.5
75
High oleic
oleic soybean
soybean oil
oil
10.5 77
2.5
75
to add shelf life to a food product. Partial
Comparison
of
dietary
fats
hydrogenation causes the development of
Low
14
56
33
26
Low linolenic
linolenic soybean
soybean oil
oil
14
56
26
health-harming TFAs.
Canola
77
21
11
61
Soybean oil
15
54
23
Canola 8oil
oil
21
11
61
ary fats In the U.S., a new high oleic soybean variety
77
20
33
70
High oleic soybean oil
10.5 7
2.5 High
High oleic
oleic75canola
canola oil
oil
20
70
(with lower linolenic fatty acids and lower
introduced
and
Lowbeen
linolenic
soybean
56
oil
15saturates) has
54
8oilis being
2314
Flaxseed3oil
16
18
Camelina
oil 2689
18
36 57
14
processed by the major oilseed crushers. This
7
21
11
61 oil
oil
10.5 7
2.5
75Canola oil
Sunflower
oil
71 57
1 18
16
Flaxseed
912 16
oil offers significant performance advantages
over canola
traditional
High oleic
20
3
70 oil
oil
14for frying applications
56
3 oil 267
Corn
13
57 71
1
Sunflower
oil
12
129 16
soybean oil and other vegetable oils. It is
Camelina
8
18
36
14
oil
7
21
11
61 oil
Olive
15
9 1
75 1
the subject of a considerable effort to make
Corn oil
oil
13
57
29
trait available
throughout
Flaxseed
oil
9
16
57 Palm oil
18
oil
7 the20
3
70the majority
10 75
39
Olive oil
15
9 51
1
of growing zones, receiving support from
12
71
1 16
oil
8
18
36 Sunflower
14 oil
Coconut
91 10
2 7
the industry and grower organizations. In
Palm oil
oil
51
39
oiland 18
13
57
1
29
grown
Saturated Fat
oil
9 Canada,
16 the variety has57beenCorn
Coconut oil 0%
91
20%
40%
60%
80% 2 7100%
has proven that it will fit well once domestic
Olive oil 1 16
15
9 1
75
Polyunsaturated fat − Linoleic Acid
oil
12
71
processing is available.
20%
40%
60% fat −80%
100%
Palm
51
10Fat
390%
Polyunsaturated
Linolenic Acid
oil
13
57
1 oil 29
Saturated
The Omega-3 soybean is helping address the
Source:
United
Soybean
Board,
Soy
2020
Source: DuPont, United Soybean Board, Soy 20/20
Coconut
oil derived
91 soybean oil data
2by7Acid
Monounsaturated fat − Oleic Acid
oil
15growing
9 1 popularity of health
75benefits
fat −supplied
Linoleic
*High Polyunsaturated
oleic
DuPont
from the51consumption of10Omega-3 fatty
oil
39 acids.
Polyunsaturated fat − Linolenic Acid
20% Source:
40%
60% Board,
80%
United Soybean
Soy 2020100%
It is estimated that one acre of Omega-30%
oil
2 7 Soy 20/20
Monounsaturated
− Oleic
Acid
*High oleic
soybean oil data fat
supplied
by DuPont
Source:91
DuPont,
United Soybean
soybeans produces
the equivalent
of 9000Board,
servings of Omega-3s. Seed breeders say this
0% is a 20%
40%
60%at a higher
80%level 100%
trait that expresses
itself
For more information:
Industrial
ybean Board,
20/20 climates like Canada, making the
inSoy
northern
New high oleic soybean varieties will
Canadian Soybean Council –
country ideal for development of an Omega-3
www.soybeancouncil.ca
significantly improve performance of soybean
soybean market.
oil and will play an important role in realizing
Canadian Seed Trade Association –
Seed developers are now approaching food
its potential and opening new industrial
www.cdnseed.org
manufacturers with potential soybean varieties,
market applications. The current utilization of
and through open dialogue, get their input
soybean oil as a lubricant has been limited in
University of Guelph-OMAFRA
into the types of products that consumers
part by its performance regarding heat and
partnership might want. Food processors have been very
oxidative stability. New soybean varieties
www.uoguelph.ca/research/
receptive to this way of doing business as in
with high oleic fatty acid content will greatly
omafra/index.shtml
the past they were often just presented with a
improve performance characteristics required
final product and asked to sell it.
Agriculture and Agri-Food Canada –
by applications such as engine oils and
www.agr.gc.ca
hydraulic fluids.
CEROM – www.cerom.qc.ca
Ontario Soybean and Canola Committee –
www.gosoy.ca
Satura
Satura
Polyu
Polyu
Polyu
Polyu
Mono
Mono
4
Identity Preserved contractors and exporters
Canadian
soybean
production
Canadian soybean
production
& disposition & disposition
Canadian soybean production & disposition
5000000
5,000,000
5000000
Metric Tons
Metric Tons
4000000
Metric Tons
Metric Tons
2000000
3000000
3,000,000
2007
20090
Year
1,000,000
1000000
00
2008
2006
2006
2007
2007
Identity Preserved (IP) means maintaining a
crop’s unique traits or quality characteristics
from seed through production, transportation,
handling and processing.
Of the more than 950 soybean varieties
registered with the Canadian Food
Inspection Agency, Canadian farmers grow
approximately 200, each with its own
tolerance for specific environments, resistance
to certain crop diseases and pests and varying
characteristics. The Canadian Food Grade
Soybean Database is a comprehensive online
listing of quantitative information about
Canadian soybean varieties grown specifically
for the soy food industry. The samples
included in the database, a partnership
between Agriculture and Agri-Food Canada
and the Canadian International Grain Institute,
represent food grade varieties currently
available or expected to be available soon for
commercial production.
Canada’s Identity Preservation Standard
requires a sophisticated documentation and
record keeping system that covers all aspects
of soybean production and processing
Canada’s Soybean Value Chain
Domestic use
Total exports
Production
2000000
Exports (GM for crushing)
1000000
2006
Domestic use
Total exports
3000000
1000000
Non-GM
Non-GM
productionproduction
Domestic use
4000000
4,000,000
4000000
3000000
0
2000000
2,000,000
Non-GM production
5000000
2011
2007
2008
2009
2008
2009
Year
2009
2010
2010
Exports (GM for crushing)
Imports
2010
2011
Year
2008
exports
Production
Imports
2010
2006
Production
Total
2011
Exports (GM for crushing)
Imports
2011
Year
to ensure complete traceability from
purchasing seed to the sealing of shipping
containers. The Canadian Identity Preserved
Recognition System (CIPRS) is the Canadian
Grain Commission’s quality assurance
program that provides third party verification
of the processes the Canadian industry
uses to deliver the specific quality attributes
that domestic and international buyers are
demanding. CIPRS-certified companies
that sell products through IP programs
have quality assurance and traceability
systems for the production, handling and
transportation of specialty grains, oilseeds
or pulses throughout the entire value chain.
CIPRS also ensures that a company’s quality
management system meets the standard
created by the Canadian Grain Commission, a
standard that is compatible with the globally
recognized International Organization for
Standardization (ISO) system.
The Canadian Soybean Exporters’
Association (CSEA) has 34 members.
These comprise the majority of this industry
segment. CSEA’s mission is to improve the
quality and value of Canadian soybeans
and to promote the export of Canadian
soybeans and soy products into world
markets. Approximately two-thirds of
Canada’s soybean production is exported;
approximately half of those exports are food
grade with the other half going to crushing.
Canadian soybean exports
(crop year)
Year
Total tonnes
2007 – 08
1,752,782
2008 – 09
2,017,246
2009 – 10
2,247,018
2010 – 11
2,942,771
2011 – 12
2,936,323
The top five countries of destination for
Canadian soybean exports in 2011-12 were
Netherlands, Japan, United States, Belgium
and China.
Source: Canadian Oilseed Processors
Association, 2012.
5
Canada’s leading soybean exporters
Company name
Province
Company name
Province
Company name
Province
Agassiz Seed Farm Ltd.
Manitoba
Globeways Canada Inc.
Ontario
Roy Legumex
Manitoba
AgriTel Grain Ltd.
Manitoba
Grains Lac Supérieur
Quebec
Agromart Processing
Company Inc.
Ontario
Hensall District
Co-Operative
Ontario
SaskCan Pulse Trading – Manitoba
Parent Division
Beechwood Agri Services
Ontario
Horizon Agro
Broadgrain Commodities
Inc.
Ontario
Bunge Canada
Quebec
Cargill Ltd.
Manitoba
Delmar Commodities
Manitoba
Dennis Jackson Seed
Service Ltd.
Ontario
DG Global
Semences Prograin Inc.
Quebec
Manitoba
Sevita International
Ontario
Huron Commodities Inc.
Ontario
SG Ceresco Inc.
Quebec
Keystone Grain
Manitoba
Snobelen Farms
Ontario
Legumex Walker Inc.
Manitoba
South West Ag Partners Ontario
Linear Grain
Manitoba
Quebec
London Agricultural
Commodities Inc.
Ontario
St. Lawrence Beans
(Division of Agrocentre
Belcan Inc.)
Parrish & Heimbecker Ltd. Ontario
Thompsons Limited
Ontario
Ontario
Paterson Global Foods
Viterra
Elite Grain
Quebec
Field Farms Marketing
Ontario
Richardson International Ontario/ Quebec/
Manitoba
Ontario/ Quebec/
Manitoba
About GM vs Non-GM
production
While the volume of non-GM soybeans
grown in Canada continues to rise steadily,
its percentage share of total production
is declining as the majority of the acreage
expansion is in geographic areas that
currently engage predominantly in GM
production. Approximately 27 per cent of
soybeans grown in Canada in 2012 were
non-GM; Japan is the largest customer
for that crop. Non-GM soybeans are also
exported to several other Asian countries
and the European Union (EU). Over half of
the soybeans exported to the EU are GM
and used in the crush market.
Manitoba
Source: Canadian Soybean Council
Percentage of non-GM soybean production by province
% Non-GM
Production (Mt)
Non-GM production (Mt)
Province
2010
2011
2012
2010
2011
2012
2010
2011
2012
Quebec
51.3%
50.0%
27.0%
807,000
800,000
825,000
414,072
400,000
222,750
Manitoba
5.0%
5.0%
5.0%
435,400
413,700
759,300
21,770
20,685
37,965
Ontario
35.0%
35.0%
25.0% 3,048,100 2,966,500 3,300,000 1,066,835 1,038,275
PEI
25.0%
16.0%
23.0%
40,700
49,000
38,100
10,175
7,840
Total
production
4,331,200
4,229,200
4,922,400
Total
NON-GM
production
1,512,852
1,466,800
1,094,478
Source: Canadian Soybean Council,
http://www.soybeancouncil.ca/IndustryStatistics/tabid/200/language/en-US/Default.aspx
For more information:
Canadian Food Grade Soybean Database – www.gosoy.ca/osacc_fg_database.php
Canadian International Grains Institute – www.cigi.ca/
Canadian Grain Commission – www.grainscanada.gc.ca
Canadian Soybean Exporters’ Association – www.canadiansoybeans.com
Canadian Oilseed Processors Association – www.copaonline.net
825,000
8,763
6
Growers
In 2012, approximately 1.728 million hectares
(4,269,980 acres) of soybeans were seeded
in Canada, with more than one million of
those hectares grown in Ontario – specifically
in southwestern Ontario. Although soybeans
are grown from Alberta to PEI, the remainder
of Canada’s production is grown largely in
Quebec and Manitoba. Soybean production
has risen dramatically in Manitoba in recent
years, to 341,829 hectares (844, 677 acres)
seeded in 2012 compared to only 167,900
hectares (414,889 acres) in 2009.
Total Seeded Area (Acres) By Province
Province
2009
2010
Quebec
597,995
647,416
741,316
721,547
20.66%
Manitoba
414,889
519,909
575,014
844,677
103.59%
2,399,998
2,439,918
2,439,918
2,650,056
10.42%
35,088
43,984
55,104
55,000
56.75%
3,447,970
3,651,227
3,811,352
4,271,280
23.88%
Ontario
PEI
Total
2011
2012
% Change ('09 – '12)
Source: http://www.soybeancouncil.ca/IndustryStatistics/tabid/200/language/en-US/Default.aspx ;
(Original figures in hectares, conversion to acres by Soy 20/20)
In 2012, Ontario’s five leading soybeanproducing counties in terms of volume
(tonnes) were Chatham-Kent, Lambton,
Middlesex, Essex and Elgin (Source:
Canadian Soybean Dispatch 2012; Ontario
Ministry of Agriculture and Food,
http://www.omafra.gov.on.ca/english/
stats/crops/ctysoy12.htm).
Soybean production in Canada by province
Source: Canadian Soybean Dispatch 2012
Yukon
Territory
Northwest
Territories
Nunavut
British
Columbia
Alberta
Newfoundland
Manitoba
Quebec
Saskatchewan
Ontario
Prince Edward Island
New
Brunswick
Soybean Growing Region
Canada’s Soybean Value Chain
7
Canadian soybean production history by crop year (September – August)
Crop year
Acres harvested
(‘000 acres)
Yield (bu/acre)
Production
(‘000 tonnes)
2011-12*
3,811*
40.9*
4,246*
2010-11
3,649
43.8
4,345
2009-10
3,418
37.7
3,507
2008-09
2,954
41.5
3,336
2007-08
2,895
34.2
2,696
2006-07
2,968
42.9
3,466
2005-06
2,880
40.3
3,156
2004-05
2,900
38.6
3,044
* 2011-12 figures to June 2012 only; Source: Statistics Canada Cereals and Oilseeds Review June 2012
Canadian soybean farmers are represented
through provincial grower organizations. It
should be noted that in Canada, soybean
grower associations do not own or control
the sale of soybeans, unlike some other farm
product marketing boards.
Grain Farmers of Ontario represents Ontario’s
28,000 grain farmers, which includes soybean
growers. The organization was founded
in 2009 through the merger of the Ontario
Soybean Growers, Ontario Wheat Producers
Marketing Board and the Ontario Corn
Producers’ Association. The organization is
run by a board of farmers who are elected
as directors by their fellow growers. GFO is
involved in activities like grower education,
domestic and export market development,
funds soybean research, and lobbies
government on important grower issues.
In Manitoba, soybean growers are represented
by Manitoba Pulse Growers Association and
in Quebec by Federation des producteurs de
cultures commerciales du Quebec.
Soybean growers’ long history of investment
in research and technology has been
instrumental in expanding Canada’s
production capacity and developing new
markets and uses for Canadian-grown
soybeans. Grower organizations fund research
in several priority areas, including disease and
insect control, utilization and agronomy.
In Ontario, GFO is actively involved in market
development activities, focusing on three
key areas:
• Domestic market development – improve
the domestic soy food market in Canada
and maintain and improve the domestic
meal and oil market
• Export market development – maintain
current key markets while fostering
new market opportunities for Canadian
soybeans
• Value-added opportunities – support
growers in capturing opportunities and
co-ordinate and facilitate the exchange
of information
Current issues facing growers:
• Rising costs for land and inputs (fertilizer,
crop protection products, seed, fuel)
• Increased pests – soybean aphids, soybean
cyst nematode (SCN), soybean rust
• Export market acceptance of GM soybeans
For more information:
Grain Farmers of Ontario – www.gfo.ca
Manitoba Pulse Growers Association –
www.manitobapulse.ca
Federation des producteurs de
cultures commerciales du Quebec –
www.fpccq.qc.ca
8
Elevators
In 2013, there are 302 licensed grain
elevators and/or dealers across Ontario. Most
but not all handle soybeans as part of their
operations. The majority are single location,
farmer-owned elevators but many have
multiple elevator locations. Similar networks
of grain elevators also exist in Quebec and
Manitoba. Details on licensed dealers and
elevators can be obtained through the Grain
Financial Protection Program administered by
Agricorp at http://www.agricorp.com/en-ca/
Programs/GFPP/Pages/Overview.aspx.
More than half of Ontario’s soybeans are
handled by only a few major companies in
the province (listed here alphabetically):
• ADM Agri-Industries Ltd.
• Bunge Canada
• Cargill Ltd.
• Dennis Jackson Seed Service Ltd.
• Great Lakes Grains Inc.
• Hensall District Co-operative
• London Agricultural Commodities Inc.
• Parrish & Heimbecker Ltd.
In Canada, soybeans are transported on
water and over land by truck or rail. Elevators
provide the physical infrastructure and
logistics to house and move soybeans from a
one-time harvest to domestic and export users
throughout the entire year. In order to service
food grade markets and maintain IP status,
the elevators’ storage facilities need to be
both high quality and capable of segregation.
Canada’s Soybean Value Chain
As more specialized markets are developed
and more specialty trait soybeans are grown,
the quantity and quality of storage will
become even more important. Elevators
are a crucial link in the soybean value
chain because without suitable, high
quality storage and handling capabilities,
other partners in the chain are not able to
capitalize on value-added opportunities.
As the soybean market becomes fragmented
further through the introduction of new
Identity Preserved or attribute-enhanced
varieties, there will be opportunities to
expand the current storage and handling
infrastructure to accommodate more soybean
varieties than are currently handled.
9
Processors
There are multiple solvent and mechanical
soybean processors in Canada.
Processor
Location
Total
capacity
Percentage
soybeans
Solvent extraction
ADM*
Windsor
ON
3,600
tonnes/day
50%
Bunge*
Hamilton
ON
3,000
tonnes/day
75%
Becancour
3,000
QC
tonnes/day
40%
TRT
ETGO**
*capability to crush soybeans and canola
simultaneously
** capability to crush either canola or soybeans
Additionally, there are several other small
extrusion/cold press facilities located in Ontario,
Quebec and Manitoba, with daily volumes
between one half and five tonnes per day.
Processors buy their soybean feedstock in
many different manners: direct from farmers,
from licensed elevators – which could be a
single farmer, a co-op or an agri-business, for
example – and from international sources,
nearly all of which come from the United States.
Processors sell their products into a number
of markets – oil (primarily for food but also
growing bioproduct uses), protein, meal
(virtually all livestock feed) and minor
components such as lecithin, tocopherols,
plant sterols and soap stock.
Canadian soybean processors
1. Delmar Commodities Ltd., Winkler MB
2. ADM Agri-Industries Ltd., Windsor ON
3. Bunge, Hamilton ON
4. Tri-County Protein Corp., Winchester ON
5. TRT ETGO, Becancour QC
6. Soya Excel, Beloeil QC
Location
Delmar
Commodities
Ltd.
Winkler
MB
150
100%
tonnes/day
Soya Excel
Beloeil
QC
24,000
100%
tonnes/year
Tri-County
Protein
Total
capacity
Processor
Percentage
soybeans
Mechanical extraction
Winchester
100
100%
ON
tonnes/day
Oilseed crushing statistics
(crop year) – soybean crushings
Year
Tonnes
2008 – 09
1,281,775
2009 – 10
1,290,990
2010 – 11
1,425,423
2011 – 12
1,411,424
1012 – 13
1,415,480
Source: Canadian Oilseed Processors Association,
11-07-2013
6
10
The soybean value chain
The soybean value chain follows a fairly linear path. From trait development to processing, there
is a sequential order of partners that work together to take soybeans from one link in the chain
to the next. However, once soybeans reach the processing stage, the possibilities for use extend
in many different directions: specific parts of the soybean such as oil, protein, hulls and other;
and in more specific uses for each of those soybean components.
To the processing stage, the Canadian soybean industry is well-developed. Work is underway
to develop end uses and markets for soybeans beyond processing – new products, new
applications and new end users.
Domestic
processors
Trait Developers
IP Contractors
Growers
Elevators
Export
markets
Canada’s Soybean Value Chain
11
Food
soy beverage
tofu
miso
Industrial
seed
Food
margarine
shortening
cooking/salad oil
other
Industrial
biodiesel
paints
resins/plastics
other
Feed/Food
livestock and poultry
pets
flour
protein isolate
protein concentrate
other
Industrial
personal care products
resins
coatings
other
Food
fibre
lecithin
Industrial
peroxidase
glycerol
pharmaceuticals
Whole soybeans
Oil
Protein
Hulls/other
12
Oil
(United Soybean Board/Soybean Checkoff)
In Canada, approximately 21 per cent of a
whole soybean is made up of oil (on a dry
matter basis), which has both industrial
and food uses. Oil content varies by seed
genetics, growing season and geography.
For more information on oil content of
Canadian soybeans, visit the Canadian Grain
Commission’s Harvest Quality Report at
www.grainscanada.gc.ca.
Industrial uses
Foam
Polyurethane foams containing soy-based
polyols are currently the primary industrial
market use for soy oils (aside from biodiesel).
Manufacturing soy foam includes substituting
soy polyols for a portion of petrochemical
polyols used.
Lubricants and fluids
(United Soybean Board/Soybean Checkoff)
Another rapidly growing market for soy oil
is bio-based lubricants and industrial fluids.
This includes everything from hydraulic and
transmission fluids to greases, motor oils, fuel
additives and even a WD-40-like product. A
field trial of some of these types of products
at the University of Guelph proved to be very
successful, with the University now using
several of them on a permanent basis. For
more information: http://www.soy2020.ca/
pdfs/Biobased-Lubricant.pdf.
Paints and coatings
Waxes, solvents and biodiesel
Soybean oil has been a major ingredient
in making oil-based paints, but as their
popularity has declined, newer soy
technology is focused on a water-base with
lower volatile organic compounds. Several
prominent brands of wood protective
coatings, such as Urethane, are using soy in
their formulations.
Packaging is the single largest sector use
of wax in Canada, where it serves largely
to protect cardboard against moisture.
Methyl soyate, a methyl ester derived from
soybean oil, is used as a solvent in place of
chlorinated or petroleum-based ingredients
in chemical cleaners and strippers. It can
also be used to clean up and recover spilled
petroleum products from shorelines, rivers
and streams. Emerging applications include
Canada’s Soybean Value Chain
bio-remediation, paper pulp cleaning and
a highway paving material replacement for
asphalt. Biodiesel is a diesel fuel substitute
that can be made from soybean oil and
blended with diesel, resulting in lower
greenhouse gas emissions and improved
engine lubricity.
13
(United Soybean Board/Soybean Checkoff)
including yogurt, salad dressing, vegetable
marinades, granola bars and spreads and
should give consumers yet another source of
foods rich in omega-3 fatty acids.
Food uses
Soybean oil is the second largest source
of edible oil used in Canada behind only
canola, which supplies 2.3 times as much of
the domestic market as soy. Over 800,000
tonnes of soybean and canola oil were used
in Canada during the 2011-2012 crop year
(source: COPA).
Soybean oil is a popular ingredient in food
manufacturing due to its neutral flavour and
well-balanced fatty acid profile. It is used in
virtually any food product that uses vegetable
or other food-grade oils, from baked goods
to salad dressings. Soybean oil is low in
saturated fat, contains no trans fat, and is
high in poly and monounsaturated fats. It’s
also a key source of omega-3 fatty acids and
a commercial source of vitamin E.
Canada: soybean oil supply
and disposition
2011-12
Soybean oil
(‘000 tonnes)
Opening stock
3
Import
57
Production
256
Export
72
Use
243
Closing stock
1
Source: Canadian Oilseed Processors Association
Leading Canadian soybean oil repackers and
distributors include Sager Foods, Saporito
Foods, Hubberts Industries, L.V. Lomas,
Nealanders, Gordon Food Service, Sysco, PJB
Primeline and others.
The need to eliminate trans fatty acids
(TFA) from processed food has led to the
development of vegetable oils that do
not require hydrogenation. Low linolenic
soybeans varieties were the first varieties
with specialty oil traits to come to market
(2006); others, including high-oleic soybean
oil varieties, high Omega-3 soy oils and high
stearic acid oils, are in various stages of
research, development and testing.
Low linolenic soybeans contain lower levels
of linolenic acid, which means the oil does
not need to be hydrogenated in order to be
used in many food processing applications.
These soybeans contain less than three
per cent linolenic oil; an ultra-low linolenic
soybean, with less than one per cent linolenic
acid, is also commercially available.
Soybeans with high oleic acid content (more
than 70 per cent) significantly increase the
oil’s stability, making it attractive for frying
and bakery applications.
Soybean oil is one of the few non-fish sources
of omega-3 polyunsaturated fatty acids.
Omega-3 soybean oil could be used as an
ingredient in a wide range of food products,
High stearic acid soybeans, currently being
developed, contain elevated levels of stearate,
which enhances the texture and increases the
stability for many food products that require
solid fat functionality. Nutritional research
is showing that it is a heart-neutral type of
saturated fat – it does not increase the levels
of “bad cholesterol” in our bloodstream.
Potential uses for this kind of oil include
baking and heavy frying.
For more information:
Value-adding opportunities for
soybean oil (Soy 20/20, 2011),
http://www.soy2020.ca/pdfs/2011-Soy2020Report.pdf
Industrial uses and opportunities for
Canadian soybeans (Soy 20/20, 2009
and 2011), http://www.soy2020.ca/pdfs/
Industrial-Uses-and-Opportunities.pdf
Food uses and opportunities for
Canadian soybeans (Soy 20/20, 2010),
http://www.soy2020.ca/pdfs/2010-SoyReport.pdf
14
Protein
The most voluminous product of soybean
crushing is protein in the form of soybean
meal – approximately 75 per cent of a
soybean (by weight) will be sold as soybean
meal. More than 90 per cent of the soybean
meal produced in Canada is processed at
solvent extraction facilities in Ontario and
Quebec. Imports, mostly from the United
States, account for almost half of total supply;
less than five per cent of domestic soybean
meal supply is exported.
use of soybean meal considerably. Canadian
soybean meal prices are determined using the
Chicago Board of Trade (CBOT) price for instore Decatur 48 per cent protein, adjusted
for basis, and are typically expressed as
CAN$/tonne in-store Hamilton.
Canada: Soybean meal use by
livestock and poultry
Canada: soybean meal supply and
disposition
Soybean meal
(‘000 tonnes)
Opening stock
14
Import
1085
Production
1109
Export
101
Poultry
Use
2086
Closing stock
21
Swine
Agricultural uses
Dairy
Other
New soy-based alternatives are being
developed for the wood adhesives industry
in response to health and environmental
concerns, as well as increasing costs for
petroleum-based products. Finely ground
soy flour can be combined with other
commercially available resins to form wood
adhesives.
Soy protein is used as filler in plastics and
rubber. Automakers are starting to develop
rubber products using soy protein instead of
petroleum-based fillers for door seals, floor
mats, gaskets and splash shields. Soy protein
polymer can be used in the development
of resins for use in machinery parts and
bathroom components. Purified soy protein
can also be ‘spun’ into a cloth that has a soft,
silky texture. Soy-based cosmetics are gentle
on the skin, readily biodegradable and have
restorative properties.
Source: Soy 20/20 projection
Livestock feed
For more information:
Soybean meal is the most common protein
meal in the world but Canada only uses 1.5
per cent of the global supply. It is one of the
most consistent, high-quality protein sources
available for feeding livestock and poultry,
which is why almost all soybean meal
consumed in Canada is used for this purpose.
Generally sold as a 48 per cent protein meal,
it is typically in a flake or pellet format.
Industrial uses and opportunities for
Canadian soybeans (Soy 20/20, 2009
and 2011), http://www.soy2020.ca/pdfs/
Industrial-Uses-and-Opportunities.pdf
Soybean Feed Industry Guide (Canadian
International Grains Institute, 2010), http://
cigi.ca/wp-content/uploads/2011/12/2010Soybean-Feed-Industry-Guide.pdf
The growth of the renewable fuels industry
over the last several years has led to the
rise of dried distiller’s grains with solubles
as a competitive source of dietary protein,
particularly for ruminant livestock like cattle
and sheep. This has changed the domestic
(United Soybean Board/Soybean Checkoff)
Canada’s Soybean Value Chain
Wood adhesives
Rubber, plastics, resins and
cosmetics
2011-12
Source: Canadian Oilseed Processors Association
Industrial uses
15
Food uses
Soy protein is one of the most complete of
all vegetable protein sources, providing all
the essential amino acids needed to meet
human nutritional requirements. There are
three principal types of soy protein: defatted
soy flour, soy protein concentrates and soy
protein isolates, which are approximately 50
per cent, 65 per cent and 90 per cent protein,
respectively.
Different types of soybean protein can be
ideally suited to specific food applications,
which can lead to new food products and
processes. Canadian researchers are working
on developing a series of high protein
soybean varieties that contain different types
of soy protein with characteristics such as
stability and gelation parameters, or how
well and how fast a product containing soy
protein will gel during processing.
Soy flour
Soy flour boosts protein, brings moisture to
baked goods, and serves as the base for some
soy beverages and textured vegetable protein.
As an ingredient it can also improve the taste
and texture of many common foods and
often reduces the fat absorbed in fried foods.
It’s rich in high-quality protein, containing
protein levels two to three times higher than
those found in wheat flour and is an excellent
source of iron, calcium and B-vitamins.
Three kinds of soy flour are generally available:
• full-fat, containing all the natural oils
found in the soybean
• low-fat, or partially defatted, with only
1/3 of the fat found in the full-fat flour
• defatted, containing almost no fat; most
oil is removed during processing.
Soy flour is used extensively by the food
industry, including in fudge and other
candies, pies, doughnuts, cakes and rolls,
pasta, pancake mixes and frozen desserts.
Some meat loaves and other prepared meat
products use soy flour.
Soy protein concentrates
Soy protein concentrate is made by removing
part of the carbohydrates (soluble sugars)
from dehulled and defatted soybeans. Its
most common use is as an ingredient in a
wide variety of food products, mainly in
baked foods and breakfast cereals. In meat
and poultry products, it’s used to increase
water and fat retention and to improve
nutritional values.
Soy protein isolates
Soy protein isolates are a dietary protein
isolated from soy flour. They are made from
defatted soybean meal by removing most
of the fats and carbohydrates to produce
a product with a minimum of 90 per cent
protein on a moisture free basis. Pure
soybean protein isolates are used mainly by
the food processing industry.
For more information:
Food uses and opportunities for
Canadian soybeans (Soy 20/20, 2010),
http://www.soy2020.ca/pdfs/2010-SoyReport.pdf
16
Hulls, fibre and minor components
Agricultural and industrial uses
Food and health uses
Soy seed coats / hulls
Tocopherols
Soybean hulls are primarily a by-product of
processing or oil extraction. Approximately
five per cent of a soybean (by weight) is
sold as soybean hulls. Traditionally they are
used as a fibre supplement in feed and food
applications. Research has shown that an
enzyme called soybean peroxidase, found
in soy hulls, can be used to oxidize phenolic
compounds in industrial waste water. The
enzyme builds up the phenolic compounds
in the water until they become insoluble and
can be physically removed from the water. The
clean water remaining behind can be safely reused. Scientists are also working on methods
to use soy hulls and soy meal as extenders
in plastics and rubber that can be made into
parts for the internal structures of automobiles,
such as panels and dashboard parts.
Soybean oil is the primary commercial source
of alpha-tocopherol, also known as vitamin
E, a by-product of oil refining. Vitamin E
is the human body’s primary lipid-soluble
antioxidant defence against cell damage
caused by free radicals, which has been
linked to various cancers, heart disease,
cataracts, premature aging and arthritis.
Ethanol and burner fuels
Glycerol is a by-product of oil processing,
most significantly biodiesel manufacturing.
It is used in food processing as well as
in the manufacturing of products like
pharmaceuticals, cosmetics, toothpaste, and
synthetic resins.
Work is underway to develop biofuels – also
known as cellulosic ethanol – from non-food
plant sources, such as soy straw, wheat
stalks and non-edible biomass plants. The
Ontario Ministry of Agriculture and Food
estimates, however, that only about 40 per
cent of all soybean crop residues is able to be
practically or sustainably removed from the
fields for this use.
Plastics
Research is ongoing into the possibilities of
using soy stalks as filler in plastics and rubber.
Unfortunately, soy stalks are not an easily
sourced ingredient in the large quantities
required for commercial production of plastic
or rubber parts. Researchers are also looking
at mixing soy stalks with other natural fibres,
such as corn stover and wheat straw, in
hopes of circumventing this problem.
Canada’s Soybean Value Chain
Phytosterols
Phytosterols are lipid-like compounds found
in plants. Soybean sterols are a by-product of
vitamin E manufacturing, clinically proven to
lower blood cholesterol in humans and being
studied as a possible nutraceutical solution to
cardiovascular disease.
Glycerol
Saponins and isoflavones
Saponins are a natural surfactant with
antioxidant properties. Many of soy’s health
benefits are derived from its isoflavones, the
most beneficial of which are genistein and
daidzein. Isoflavones contain possible health
benefits such as prevention and treatment
of cardiovascular disease, cancer and
osteoporosis.
17
Looking forward
This report provides a comprehensive
overview of Canada’s soybean industry,
both in its current state and shedding light
on new opportunities that are currently
being researched or developed.
considerable potential exists for the
“Canadianization” of those existing
products. This means being able to produce
those products here in Canada using
soybeans grown by Canadian farmers.
Canada’s soybean value chain is a world
leader – well-developed and innovative
with the knowledge and expertise needed
to continue to build new markets and new
opportunities for soybeans.
Additional processing – for both
commodity and value-added products
– will help move this process forward
immensely. And Canada’s soybean acreage
continues to grow, especially in Western
Canada, proving that genetics providers
and farmers are ready and willing to meet
the demand these new markets will create.
Although much of the product currently
available on the market is produced
using U.S.-sourced soy-based ingredients,
Soy 20/20 plays a key role in supporting
many different soy initiatives and in
growing the sector – specializing in taking
products from concept or prototype to
completion and providing support to
organizations and businesses working to
grow the market for Canadian soybeans.
519-826-6559
www.soy2020.ca
Funding for Soy 20/20 is provided under Growing Forward 2, a federal-provincial-territorial initiative, and by Grain Farmers of Ontario.
2749-09-2013
120 Research Lane, Suite #200
Guelph, ON N1G 0B4