Viewpoints from farmers, processors and more

From soybean seed to harvest. From the farmer to the world.

theMARCH 2007 • VOL. 2 • ISSUE 2

10U.S. Survey Produces Global Impact

9Soy Hooks Global Fishing 11The 2007 Rust Question8Soy Carpet Takes the Floor

4Soy Connects Global Markets

7Poultry Demands Soybean Meal

Soy biodiesel doesn’t just help the environment, it helps our economy. It’s made from U.S. soybeans, so it’s a step toward importing less foreign oil. Biodiesel works in any diesel engine and can even improve your vehicle’s performance. Plus, a federal tax incentive helps keep the price competitive.

Stick it to foreign oil by sticking with domestic fuel. Visit www.biodiesel.org and find a BQ-9000-certified biodiesel supplier in your area.

©2007 United Soybean Board. (25185-Fueling-1/07)

Fueling upheremeans less oil from over there.

Table of Contents

Beyond the Bean StaffPublishers

Editorial Director

Managing Editor

Senior Art DirectorAssociate Art Director

Production Manager

Copy Editor

Kiersten McCarty Kari Palutis

Lance Burditt

Keith Warden

Lisa BranieckiVicky Ho

Diana Sucher

Calvin Cahan

Staff Writers

Jennifer Anthony Staci FalkCindy HackmannMandy HethTyler KelleyChris KrullMike OrsoKaren PfautschSarah RebholzChris Toebben

Send your comments and questions to kwarden@unitedsoybean.org or write toUnited Soybean Board • One North Brentwood, 8th Floor • St. Louis, MO 63105

Processor’s Perspective: Cargill focused on soybean future

Feed Focus: Poultry key to soybean meal market

Inner Bean: A new low-linolenic variety

Bean Progress: This new use withstands heavy foot traffic

Fencepost: Soybeans or corn this year?

Fieldforce: BQ-9000 certifies biodiesel quality

Global Spotlight: Aquaculture market wants meal

Bean Cuisine: Soy attracts health-conscious consumers

Bean Talk: Checkoff focuses on quality survey

Rust Report: Staying prepared with more resources

4New global partnership strategy

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World soybeans translate into U.S. success

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Thanks for the new publication, Beyond the Bean. I feel better about my soybean checkoff monies I have paid over the years. I’ve lived and worked on the farm all my life – I’m 78. I like the work you all are doing. Martha GarrettSlater, Mo.

At Beyond the Bean, we want to know your comments and questions about the articles you read in each issue. Please take a moment of your time to share your opinions with us.

You can send your letter to our mailing address: United Soybean Board One North Brentwood, 8th Floor St. Louis, MO 63105

Or send it via e-mail to: kwarden@unitedsoybean.org.

We look forward to sharing your thoughts with our readers.

New York State has grown enough soybean acreage over the last decade to gain its own director on the United Soybean Board (USB). In addition to growing soybeans, USB Director Russ Carpenter (N.Y.) and his wife, Sarah, raise cattle and also grow corn, hay and wheat in the picturesque Finger Lakes region of upstate New York.

Q. How would you describe demand for soybeans in the “Empire State”?A. “We utilize all of the beans we grow here in New York. So things are good.”

Q. You grow a large variety of crops. How important are soybeans in your mix? How about for other farmers in your region?

A. “Soybeans have a high value due to crop rotation. This helps me and others add nitrogen to the soil, making it ideal for other crops. Yes, soybeans work as a value-added or double crop.”

Q. You serve with several other farmer-leaders on USB’s Communications Committee. What has been its major accomplishment in the past year?

A. “Helping farmers better understand what the checkoff is doing for them and what they can do to meet customer demands. This year we will launch the Big Three campaign, an educational series on the major customers of U.S. farmers.”

Q. Helping lead the soybean checkoff requires a lot of time, travel, meetings and conference calls. Is there anything fun about it?

A. “Really, it’s all enjoyable. Working and visiting with other farmer-leaders in their communities and within the soybean industry are great experiences.”

Meet Russ Carpenter – a New York state of bean

Behind the Board

By Jennifer Anthonyjanthony@unitedsoybean.org

Letter to the EditorWelcomeWelcome

Global Partnerships Open New Markets

F or years, U.S. soybean

farmers have read headlines

that screamed about the increasing

competition from South America.

But now the United States

is approaching international

marketing with a new strategy –

a partnership with South American

soybean farmers to drive worldwide

consumption of soy.

The United States Soybean

Export Council (USSEC) entered

into Global Grower Development

Agreements with both the

Argentinean Soybean Chain

Association (ACSOJA), and the

Paraguayan Chamber of Cereals

& Oilseeds Exporters (CAPECO).

These agreements concentrate on

reverse marketing and eliminating

trade barriers to India, a country

that produces an average

of 225 million

bushels of soybeans

annually. USSEC

implements

soybean checkoff

international

marketing activities

around the globe.

“This partnership is about more

than what you see at the surface,”

said USSEC Chair Neal Bredehoeft,

a farmer from Alma, Mo. “It’s about

finding a partner who can help us

open up new markets for soy across

the globe. It just so happened that

the perfect partner for this endeavor

was South American farmers.

The cooperation of soybean farmers

from the United

States, Paraguay,

Argentina and

even Brazil is too

impressive for India

to disregard.”

A Competitive Partnership Although the United States and

South America are typically viewed

as competitors, a united venture

can help protect the world soybean

market from competing oilseeds,

ultimately benefiting all soybean

farmers. Both U.S.

farmers and South

American farmers

bring expertise to this

partnership, and both

will reap the benefits

of its success.

The United States is

well versed in relationship

marketing and building

demand in new markets

and has a demonstrated track record.

Likewise, South America understands

how to address phytosanitary

issues, chemical residue limits and

excessive duties on soybean products.

It’s this combination of expertise

that will lead to increased soybean

consumption around the world.

The mission of the soybean checkoff is to create opportunities for U.S. soybean producers to be more competitive while maximizing profits and meeting customers’ needs. Exports play a large role in competitiveness – the United States exported more than 1.2 billion bushels of soybeans in 2006. Through partnerships like the ones in South America, the soybean checkoff is ensuring that the world market for soy continues to grow. This growth provides new and expanded opportunities for U.S. soybean farmers to market their soybeans overseas.

“Some farmers may be

concerned about partnering

with South America,” said Bredehoeft.

“But I think we’ve always partnered

with our competitors. Every

neighboring farmer is a competitor,

but we all work together to market

U.S. soy. This is the same kind of

partnership, just on a global scale.

It’s farmers working with farmers.”

A New Way to Market The Global Grower Development

Agreements also outline opportunities

to use reverse marketing in India. The

reverse marketing strategy involves

educating India food and livestock

producers about how to use more of

the country’s domestic soybean supply.

This will result in a decrease of India

exports, providing opportunities for

the United States and South America to

gain new export customers.

India’s population is expected

to reach 1.5 billion people in 2040,

surpassing China as the most populated

country. With the increasing number

of people to feed,

soy will not only

be a prime protein

source for Indian

people, but livestock

and poultry, as well.

The reverse

marketing efforts

of USSEC include

feed technology

workshops,

marketing support,

soyfoods and training programs within

India to utilize their soybean crop to

the fullest extent. These programs are

being considered by ACSOJA and

CAPECO and soon by Soy Producers

Association from Mato Grosso State

(APROSOJA) from Brazil.

(continued on page 6)4Beyond the Bean

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DrivinG worlD SoyBean conSuMption By Cindy Hackmannchackmann@unitedsoybean.org

Global Partnerships Open New Markets

A united venture can help protect

the world soybean market from competing

oilseeds, ultimately benefiting all

soybean farmers

This partnership is about more than

what you see at the surface

producers pose for a group photo outside the soyfood seminar at the December 2006 united States and South american Growers Joint trade Mission to india.

C hanges in the marketplace have the soybean industry looking at

its future. This will not be a simple task, as we’re moving into uncharted waters, not only in the soybean industry but in all of agriculture. Our industry needs to find ways to adjust to changing market forces in ways that benefit each part of the chain. The tremendous growth in biofuels means we’ll have to be smart in addressing increasingly competing needs for food, feed and fuels. We need to continue our innovations in developing alternatives to trans fats. We also need to be creative in identifying strategies that keep the meat industry strong and efficient so it can meet the growing demand for meat protein around the world. While all of this may seem overwhelming, we here at Cargill look forward to collaborating with others to address these needs and market shifts through partnerships like Soy 2020 and QUALISOY, where all of the soybean industry links work together for the sake of the industry. ~ Jim Sutter

Vice President, Cargill Grain and Oilseed Supply Chain – North America

“If India can increase their

consumption of soy, they may

be able to utilize everything they

produce,” said Terry Ecker, a

farmer from Elmo, Mo. “And

with the estimated population

growth in that country, they could

eventually become a net importer

of soybeans

instead of a

net exporter of

soybean meal.”

That kind

of growth is

not unheard

of. Nearly three

decades ago,

China was also

a net exporter

of soy. Through

reverse marketing

efforts funded and supported by

the soybean checkoff, China began

utilizing its own soybean supply.

The Chinese demand for soybeans

became so great that they became

an importer of soy – not just any

importer, but the United States’

largest export customer to date.

“This may be one of the most

strategic moves we can make

to secure the future demand of

soybeans,” added

Ecker. “We’ve

identified a market

that has the

potential to utilize

vast amounts

of soy and put

programs in place

to teach them how

to incorporate it

into their daily

lives. That’s going

to lead to more

consumption and more market

opportunities for our beans

worldwide.”

(continued from page 5)

W hile many soybean farmers may have livestock

producers as neighbors, poultry farmers aren’t as prevalent. But just because soybean farmers may not see poultry production firsthand, it doesn’t mean poultry isn’t a vital market for U.S. soybean meal. In 2003/2004, broilers consumed over 225 million bushels of soybeans, with turkeys consuming an additional 54 million bushels and layers another 51 million bushels. In addition, feeding soybean meal to poultry and exporting the meat are two of the top

ways to add value to the soybeans you produce. In 2005, soybean meal consumed by chickens destined for export represented 81 million bushels of soybeans, with turkeys representing another 10 million bushels. “U.S. livestock and poultry represent the number one market for U.S. soybean meal, so what’s good for meat exports tends to be good for soybean farmers,” says Phil Bradshaw, chair of the United Soybean Board’s Animal Agriculture Initiative Leadership Team and a soybean farmer from Griggsville, Ill.

It’s not just soybean farmers who benefit from the poultry industry, it’s the economy as well. In 2004, every $1 in sales from the poultry industry contributed over $3.50 in economic

output nationwide.

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I n recent months, companies like Kellogg’s® and KFC® have begun

using low-linolenic soybean oil to help reduce trans fats in their products. Researchers at Iowa State University (ISU) have built on the low-linolenic variety to also include mid-oleic oil content. The new low-linolenic, mid-oleic oil is attractive to food companies because it helps lengthen the shelf life of some processed foods and increases heating stability for frying oil.

In 2006, test plots produced only 500 bushels of the new low-linolenic and mid-oleic varieties, and more oil is needed for full-scale testing by food companies. This winter, ISU is bulking up the seed supply for U.S. farmers through winter production in Argentina. Approximately 5,000 50-pound seed units of the new varieties will be available for U.S. farmers to

plant this spring.

More poultry eXportS Mean More Meal

a new FooD opportunity

By Tyler Kelleytkelley@unitedsoybean.org

By Karen Pfautschkpfautsch@unitedsoybean.org

The soybean checkoff encourages farmers to support their number one customer – the livestock and poultry industries.

Your soybean checkoff helped fund the development of the low-linolenic, mid-oleic variety to add value to your beans.

Soybean Farmers Boost Squawk Value

Low-Linolenic + Mid-Oleic

6Beyond the Bean

PROCESSOR’S PERSPECTIVE

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The Chinese demand for soybeans

became so great that they became an importer of soy – not

just any importer, but the United States’ largest

importer to date

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uSB past chairman curt raasch expresses thanks to hosts during a recent trade mission to india.

S ome of the carpet you walk on every day may

have a backing that was grown in a soybean farmer’s field. The use of soy as a petroleum substitute in carpet backing is yet another innovative new use driving demand for soy. Universal Textile Technologies (UTT) has been working on soy-based carpet backing technology since 1999. BioCel is a soy-based carpet backing manufactured by UTT to withstand abuse in high-traffic areas in places such as schools, churches and hotels.

Similar backing manufactured by UTT is being used for artificial turf installed anywhere from putting greens to sports stadiums all over the world. In the near future, you may even have the option of using this soy backing in your home. UTT hopes to launch a residential

program in late 2007 or 2008.

F ish have become a soybean farmer’s best friend. The

fastest-growing food segment in the world is the aquaculture market. Soy-based diets for select marine fish have been developed and are being demonstrated in several projects located in Asia. The Ocean Cage Aquaculture Technology (OCAT) project was created in 2004 to design prototype offshore ocean cages for testing in China. A truncated pyramid design was selected, with single-point anchoring to allow the cages to float down-current and to automatically submerge with increasing storm-

generated wind and water currents. During typhoons, the top buoys are quickly disconnected, and the cage goes back one meter below the surface and then submerges with the increasing storm-generated wind and water currents. As aquaculture’s future demand continues to grow with the population, the demand for seafood products won’t be met by the capture fisheries. Global, aquaculture continues to grow at an annual rate of 9 percent to 11 percent per year. Research efforts are focused on identifying barriers to soy

inclusion in the diets for marine fish such as salmon, pompano, amberjack, sea bass, sea bream and cobia, as well as increasing soy inclusion in marine shrimp diets. Overall, aquaculture will consume an estimated 8 to 10 metric tons of soybean meal in

the next 10 years.

By Jennifer Anthonyjanthony@unitedsoybean.org

By Chris Krullckrull@unitedsoybean.org

FroM your FielD to the Floor

worlD aquaculture chooSeS Meal

Carpet Uses Soy Backing

8Beyond the Bean

Compiled by Karen Pfautschkpfautsch@unitedsoybean.org

The aquaculture efforts of the soybean checkoff are focused on a sustainable approach to fish production.

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The soybean checkoff is continuing to partner with industry leaders such as UTT to develop new uses for domestically grown soybeans.CHECKOFF

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U.S. Soy Makes the Bait

I’m not going to plant any more or less corn this year, but the ethanol boom is causing some concern. Will there be enough corn in the area for the livestock feeders to be profitable? I feed nearly all the corn raised, so the price of corn affects me by way of “lost opportunity” and higher input costs. In southern Minnesota, farmers are bullish on corn, but I hope not so bullish they don’t market well. ~ Rob Hanks, Chairman, Minnesota Soybean Research &

Promotion Council

In my area in Nebraska, I’m not seeing the switch from soybean to corn acres, and there’s even a local farmer-owned ethanol plant. There may be a few people who switch some acres to wheat this year based on recent wheat prices, though. ~ Bill Miller, President, Nebraska Soybean Association

The ethanol boom will have some effect on planting intentions, but this year on our farm, we will stick to a strong crop rotation because of the positive effect on yield. We don’t want to put all our eggs in one basket, especially with strong prices for both corn and soy right now. ~Amy Sigg Davis, Chairman, Ohio Soybean Council

FENCEPOST

Will Soybean Acres Stay Amid Ethanol Boom?

W ith the recent concern over trans fats, vegetable oils have come under scrutiny, but

soybean oil still comes out ahead. In the most recent Consumer Attitudes on Nutrition Survey, conducted by the United Soybean Board, over 76 percent of consumers said they view soybean oil as healthy, second only to olive oil. On top of that, more than half of the people surveyed said they’d be more likely to buy a product if the food company reformulated it to be “trans-fat-free.” This opens up a market for soy oil derived from new varieties, such as low-linolenic soybeans, to meet these consumer demands.

It’s not just soy oil that consumers think is healthy. Soyfoods rank high on the list of healthy alternatives to higher-fat-content protein sources and as nutritious snacks or ingredients. According to the survey, more than 30 percent of Americans consume soyfoods or soy beverages at least once a month. Consumption of soy-based food products has seen a steady increase, which correlates with the increased awareness of soy as healthy. In 1998, 67 percent of people surveyed found soy to be healthy. As of 2006, that number

has risen to 82 percent.

checKoFF reSearch MaintainS FocuS

By Mandy Hethmheth@unitedsoybean.org

Soyfood and Oil Meet New Demand

The latest figures from the National Biodiesel Board (NBB) show that 88 biodiesel plants operating in the United States produced over 200 million gallons of biodiesel this year. Another 65 plants are under construction, and these figures will grow as the industry matures. With a young industry rapidly expanding, it will be imperative that suppliers carry fuel from certified manufacturers – and soybean farmers will be responsible for protecting the future of the biodiesel industry by demanding a quality product.

We’ve all heard horror stories of bad batches of biodiesel. Whether it came from a backyard brewery or an organized plant makes no difference. What matters is that the folks developing the product are using quality measures in their manufacturing process.

The BQ-9000 certification program is the only national attempt to ensure all biodiesel manufactured in the United States meets superior quality standards. Accredited producers under this program produce biodiesel fuel to the ASTM D 6751 standard. The program ensures manufacturers will use a system for monitoring the quality of their product, including testing, storage and shipping.

Major auto and farm equipment manufacturers such as DaimlerChrysler and New Holland are endorsing the use of biodiesel from BQ-9000-certified manufacturers.

Biodiesel Roll Call: Quality Assurance?

FIELDFORCE

By Chris Toebbenctoebben@unitedsoybean.org

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W hile most U.S. soybeans remained unscathed by

rust in 2006, the disease’s late-season spore movement signaled concerns for 2007. Don Hershman, plant pathologist with the University of Kentucky, noted a major storm system in September helped rust spores travel from Louisiana into the upper Mississippi River and lower Ohio River valleys. “This activity was a wake-up call that explosive movement from southern U.S. locations is a real

possibility,” Hershman says. “If this happens in June, we could have a real epidemic on our hands.” However, Hershman finds a silver lining in soybean rust’s late-season spore movement since it occurred too late in the season to hurt the Midwest soybean crop. The sentinel plot network again proved useful in monitoring the spread of rust throughout the country. According to Hershman, monitoring soybean rust in plots that survive over winter – mostly kudzu patches – in southeastern U.S. states will help determine the disease’s potential this year.

Hershman recommends that farmers use multiple sources to stay vigilant on the spread of rust. Farmers can visit www.sbrusa.net and www.stopsoybeanrust.com, access state hotlines or contact their local university or extension agents. “The key is to identify multiple, trusted sources of information and

stay tuned in,” Hershman says.

KeepinG an eye on SiGnS oF ruSt

By Sarah Rebholzsrebholz@unitedsoybean.org

Vigilance Is the Best Defense

Answers: 1. c. Argentina and Paraguay • 2. c. Poultry • 3. b. Longer shelf life and increased heating stability • 4. d. All of the above

I n order to increase international demand and provide a valuable service to current soybean

purchasers, the soybean checkoff sponsors an Annual Soybean Quality Survey. The survey provides buyers with timely and useful information intended to educate purchasers about U.S. soybean availability and about how to source soybeans that meet their individual quantity and quality requirements. Survey results are distributed by International Marketing representatives in over 80 U.S. soybean-purchasing countries worldwide. Quality conferences are conducted in China, Korea, Taiwan and Japan each November for importers, buyers and crushers where the survey’s results are reported. Together these four countries purchased nearly 59 percent of the approximately 937 million bushels of the total U.S. soybean exports in the 2005/2006 marketing year. The survey is focused on quantifying protein and oil concentrations of the U.S. crop as a whole and

the variation of these quality attributes across states and regions. In 2006, nearly 2000 producer-supplied samples were analyzed from 30 states. Coordination of the Annual Soybean Quality Survey is conducted by Dr. James Orf and myself at the University of Minnesota. Our experience as a soybean breeder and a soybean agronomist enables us to provide purchasers with important background information regarding the crop such as influences of environment, diseases, production practices and varietal effects. The results of the survey are available

at unitedsoybean.org.

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Checkoff Research Attracts World Markets

10Beyond the Bean June 2007theLook for the next issue of

The checkoff has funded Annual Crop Quality Survey every year since the checkoff’s inception.CHECKOFF

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1 Global Grower Development Agreements have created an international partnership between U.S. soybean farmers and soybean farmers from these two countries. a. Germany and France b. Malaysia and Indonesia c. Argentina and Paraguay d. Australia and Guam

2 What is the fastest growing food segment in the world? a. Red meat b. Dairy c. Poultry d. Aquaculture

3 Mid-oleic oil content offers what two advantages for food companies? a. Longer shelf life and enhanced flavor b. Longer shelf life and increased heating stability c. Longer shelf life and shorter preparation time d. Longer shelf life and fewer calories

4 How can farmers stay updated on the latest rust information? a. Visiting www.sbrusa.net and www.stopsoybeanrust.com b. Accessing state hotlines c. Contacting local university or extension agents d. All of the above

Submitted by Seth Naeve, Ph.D.Extension Soybean Agronomist and Assistant Professor of Agronomy and Plant Genetics University of Minnesota

annual quality Survey reSultS are in

The soybean checkoff is investing in long-term and short-term solutions to combat soybean rust, from rust-resistant varieties to education and monitoring.

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Test your soybean know-how

Test your soybean know-how

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United Soybean BoardOne North Brentwood8th FloorSt. Louis, MO 63105

©2007 United Soybean Board [28292–lb–2/07]

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PAIDAmes, IA

Permit No. 307

Helping your soybeans stand out in China.Your soybean checkoff is on the ground in China and other countries to help boost export demand for your soybeans. It’s just one of the ways your checkoff investment is working for you. To find out more about your checkoff’s international marketing efforts, visit www.unitedsoybean.org/farmers.

Your soybean checkoff is here.

©2007 United Soybean Board.