During the past couple of years, the United States has had record soybean exports. This is due in large part to the role that China and other international customers play in purchasing our soybeans. Keeping this in mind, the Kentucky Soybean Promotion Board (KSPB) and soybean checkoff would like to challenge Kentucky farmers to look beyond yield.

Farmers may be surprised to learn that their customers are not their local elevators. Your biggest customers are international buyers. About 58 percent of U.S. soybeans are exported annually, and the majority of that goes straight to China. What are these international buyers looking for in your soybeans? Two essential quality components - oil and protein.

Analysis of samples from the USDA National Agricultural Statistics Service Objective Yield Survey and the U.S. Soybean Export Council (USSEC) annual Quality Survey suggests that long-term U.S. soybean quality – judged largely by oil and protein content – has remained relatively stable.

However, in recent years, data from United Soybean Board (USB) research, the USSEC Quality Survey and many soybean processors indicate declines in protein levels. In fact, in 2008, the United States saw the lowest level of protein ever documented according to several data sources. Yet, during the past 25 years, yield has increased to 44 bushels per acre from about 33 while protein remained at about 35 percent and oil stood at about 18 percent overall.

Quality remains important to Kentucky’s other top customers: Domestic animal producers, who use nearly 98 percent of the domestic supply of soybean meal.

Whether it’s here in the United States or in other countries, poultry and livestock producers seek soybeans with high levels of protein to feed their animals. Poultry and livestock consume more than 70 percent of the world soybean supply.

“Our customers care about the quality of our soybeans more than the quantity. If they can get what they need from someone else, they certainly will,” said Gerry Hayden, KSPB Chairman and a soybean farmer from Calhoun, Ky.

Protecting U.S. soy’s international market share begins in China, which will likely buy at least one out of every four bushels of U.S. soy again this year, making it by far the industry’s largest international customer.

“I have heard several times lately that if you are not keeping up with China, then you just aren’t keeping up,” said Hayden. “This statement is especially true when it comes to us farmers.”
About 58 percent of U.S. soybeans are being exported and the majority of that goes straight to China.

Hayden continued, “Picture a soybean field, every fourth row goes to China. They are a major player in our industry and we must work to continue to provide them with a high-quality soybean supply.”
The soybean checkoff and USSEC have promoted a strong preference for U.S. soy among international buyers. However, these important international customers, could, at any time, begin buying more South American soy and less from the United States.

According to a study conducted by Centrec Consulting Group, LLC, if China were to buy 25 percent less soybeans from the upper Midwest and replace them with soybeans from other countries, prices for all U.S. soybeans could drop by 22 cents per bushel.
Based on last year’s 3.36 billion-bushel harvest, that decrease could cost U.S. soybean farmers nearly $740 million.

What does it take to make farmers view oil and protein at the same level of importance as yield? Several farmers polled in the October 2010 issue of Beyond the Bean, a publication of the USB, stated that soybean premiums for quality would be the only thing that would make quality and quantity a level playing field. But producing a high quality soybean crop, whether or not there is a premium paid, may be the only factor that ensures the U.S. a strong international export market for years to come.

“We must look beyond yield and make sure we are growing varieties that make at least 35 percent protein and 19 percent oil.” Hayden continued, “It is essential that we keep our export market secure for future generations.”

Checkoff provides helpful tools

China Report
The KSPB is now offering a weekly China report free to Kentucky farmers via e-mail. The report is a quick and easy read that outlines China’s buying patterns, crop status and other valuable information. Those interested in receiving the report may call the soybean office at 1-800-232-6769 or send an e-mail to jvincent@kysoy.org requesting to be added to the list.

Soybean Quality Toolbox
To help farmers find high-quality varieties that also are proven yield leaders, the checkoff developed what is known as the Soybean Quality Toolbox, a free, easy-to-use, interactive Internet-based tool available at www.unitedsoybean.org/SQT.aspx

The toolbox provides access to yield quality performance records for hundreds of U.S. soybean varieties from land-grant university test plots and Farmer’s Independent Research of Seed Technolo-gies test plots throughout 14 different states. These test plots include current and new U.S. soybean varieties from various seed companies. For more on the soybean checkoff, visit www.kysoy.org and www.unitedsoybean.org