Canada`s Soybean Value Chain

Canada’s Soybean Value Chain
2015 edition
1
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 seven years, including an
increase in soybean acreage and production volumes, and development of new markets and
new opportunities.
Table of Contents
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
2
Trait development – seed trade
4
Identity Preserved contractors and exporters
6
Growers
8
Elevators
9
Processors
10 The soybean value chain
12 Oil
Soy 20/20 brings together government,
academic and industry partners to
support the development of new
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, Food and Rural
Affairs under Growing Forward 2, a federalprovincial-territorial initiative.
14 Protein
• 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.
16 Hulls, fibre and minor components
17 Looking forward
Canadian soybean industry overview
SOYBEANS
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15*
2,971,300
3,518,000
3,738,800
3,851,662
4,152,900
4,418,900
5,561,900
41.5
37.7
43.9
42.7
45.0
42.8
40.2
122,576
131,604
163,311
164,112
186,892
196,907
222,251
116
220
305
296
231
158
3,336
3,581
4,445
4,467
5,086
5,359
351
372
266
233
257.6
343
Total supplies
3,803
4,173
5,016
4,996
5,575
5,860
Exports
1,888
2,111
2,754
2,742
3,332
3,427
Crushing
1,280
1,293
1,448
1,410
1,541
1,525
Seed
148
157
163
174
186
233
Other domestic
disappearance
266
307
355
438
359
429
3,582
3,868
4,720
4,996
5,575
5,860
220
305
296
231
158
246
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:
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.
Seeded area (acres)
• Connects companies with funding to
develop or expand their manufacturing
capabilities;
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.
Beginning stocks
• Facilitates constructive interactions
between companies and the soy research
community;
Average yield
(bushels/acre)
Total production
('000 bushel)
all units for below in '000 metric tonnes
Production
Imports
Total disposition
Ending stocks
Source: Statistics Canada, CANSIM Table 001-0017, 001-0041
* complete crop year data for 2014/15 not available at time of publication
Crop Year for soybeans is defined to be September – August.
Canada’s Soybean Value Chain
2
3
Trait development – Seed trade
Soybeans have long been bred for agronomic
traits that benefit the entire value chain,
such as yield, consistent quality, 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, Food and Rural Affairs
(OMAFRA). 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
3,500 pedigreed seed grower 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
University of
Saskatchewan
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
Comparison
ofof
dietary
fats
The desire to eliminate trans fatty acids
Comparison
dietary
fats
(TFAs) from processed foods has led to the
Soybean
oiloil
1515
5454
88
2323
development of soybeans whose fatty acid
Soybean
Organization/
oil doesn’t require partial hydrogenation
Breeding program
HighHigh
oleicoleic
soybean
oil*oil 10.5
7575
company
soybean
10.57 7 2.52.5
to add shelf life to a food product. Partial
Comparison
of dietary fats
Dairyland Seed
hydrogenation
causes the development
of
LowLow
linolenic
soybean
oiloil 1414
5656
33
2626
GM
linolenic
soybean
Company
health-harming TFAs.
Canola
oil8oil 7 23
1111
6161
Soybean oil
15
54
Canola
7 2121
Greenleaf Genetics
GM
Comparison of dietary fats In the U.S., high oleic soybean varieties
Northstar Genetics
GM
High oleic soybean oil
10.5 7
2.5 High
75canola
oleic
canola
oiloil 7 7 2020 3 3
7070
High
oleic
(with lower linolenic fatty acids and lower
beingsoybean
grown and
Lownow
linolenic
56 Flaxseed
15saturates) are
54
8oil
2314
It can take eight to 15 years from the time Soybean oil
oil3oil 26
9 8 1618
18
Camelina
36 57
14
processed by the major oilseed crushers.
the first soybean cross is made to the time
7
21
11
61
High oleic soybean oil
10.5 7
2.5
75Canola oil
Sunflower
oiloil 129
71 57
1 16
Flaxseed
16
18
This oil offers significant performance
a new variety is commercially available.
advantages
for
frying
applications
over
High oleic canola3 oil 267
20
3
70 oil
Low linolenic soybean oil
14
56
Breeding involves identifying variability,
Corn
57 71
1
29
Sunflower
oil 1312
1 16
traditional soybean oil and other vegetable
finding parents with the needed traits, and Canola oil
Camelina
8
18
36
14
7
21
11
61 oil
Olive
oiloil
1513 9 1
75 1
oils. It is the subject of a considerable effort
Corn
57
29
making the breeding cross. Researchers
to
make
the
trait
available
throughout
the
Flaxseed
oil
9
16
57
18
High
oleic
canola
oil
7
20
3
70
also need to identify the best pure lines that
Palm
oiloil
10 75
39
Olive
15
9511
majority of growing zones, receiving support
will generate yield and quality and pass
12
71
1 16
Camelina oil
8
18
36 Sunflower
14 oil
from the industry and grower organizations.
Palm
51
10
39 2 7
Coconut
oiloil
91
end use testing. That means identifying
Corngrown
oil and
13
57
1
29
Saturated Fat
the variety57
has been
9 In Canada,
16
18
breeding objectives is an important part of Flaxseed oil
Coconut oil
91
2 7
has proven that it will fit well once domestic
the research program. And there are many Sunflower oil
0%
20%
40%
60% fat −
80%
100%
Olive oil 1 16
15
9 1
75
Polyunsaturated
Linoleic Acid
12
71
processing is available.
traits to work on – such as high protein, high
20%
40%
60% fat −80%
100%
Palm
51
10Fat
390%
Polyunsaturated
Linolenic Acid
Corn oil
13
57
1 oil 29
Saturated
isoflavone, high vitamin E, high oil, high
Seed developers are now approaching food
Source:
DuPont,
United Soybean
Board, Soy 20/20
Source:
United
2020
sugar and fatty acids, among others.
Coconut
oil varieties,
91 Soybean Board,
2 7Acid
Monounsaturated fat − Oleic Acid
Olive oil
15manufacturers
9 1
75soybean
Polyunsaturated
fat −Soy
Linoleic
with potential
*High oleic soybean oil data supplied by DuPont
and through
Soybeans are being developed with specific
Palm oil
51 open dialogue,
10 get their input
39
Polyunsaturated fat − Linolenic Acid
20% Source:
40%
60% Board,
80%
United Soybean
Soy 2020100%
into
the
types
of
products
that consumers0%
agronomic traits (eg. herbicide tolerance
*High
oleic
soybean
oil
data
supplied
by
DuPont
91
2 7 Soy 20/20
Monounsaturated fat − Oleic Acid
DuPont, United
Board,
might want.Source:
Food processors
haveSoybean
been very
or pest resistance), but also with traits that Coconut oil
receptive to this way of doing business as in
make them more suited to their intended
0% the past
20%they were
40%often just
60%
80%
presented
with a 100%
end uses, such as specific food products or
Source: DuPont, United Soybean Board,
Soyproduct
20/20 and asked to sell it.
final
industrial products.
U.S. companies supplying the
Canadian market
In Canada, GM-specific traits include
high oleic acid content and resistance to
glyphosate or soybean cyst nematode. NonGM-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.
Industrial
New high oleic soybean varieties
significantly improve performance of
soybean oil and will play an important
role in realizing its potential in industrial
market applications. The current utilization
of soybean oil as a lubricant has been
limited in part by its performance regarding
heat and oxidative stability. New soybean
varieties with high oleic fatty acid
content will greatly improve performance
characteristics required by applications such
as engine oils and hydraulic fluids.
For more information
Soy Canada
www.soycanada.ca
Agriculture and
Agri-Food Canada
www.agr.gc.ca
Canadian Seed
Trade Association
CEROM
www.cdnseed.org
www.cerom.qc.ca
University of GuelphOMAFRA partnership
Ontario Soybean and
Canola Committee
www.uoguelph.ca/research/
omafra/index.shtml
www.gosoy.ca
Satura
Satura
Polyun
Polyu
Polyu
Polyun
Mono
Monou
4
5
Identity Preserved contractors and exporters
Canadian
soybean
production
Canadian soybean
production
and disposition and disposition
7,000,000
7,000,000
7,000,000
Metric Tons
Tons
Metric Metric
Tonnes
5,000,000
6,000,000
6,000,000
4,000,000
5,000,000
5,000,000
3,000,000
2,000,000
4,000,000
4,000,000
6,000,000
Non-GM production*
5,000,000
Exports
4,000,000
3,000,000
Imports
3,000,000
3,000,000
0
1,000,000
2011
0
2013
2012
2014
2011
Year
2011
2011
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 1050 soybean varieties
with national registration status 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
to ensure complete traceability from
purchasing seed to the sealing of shipping
Canada’s Soybean Value Chain
2013
2012
2012
2013
Year
2013
Province
Company name
Province
Company name
Province
Beechwood Agri Services
Ontario
Huron Commodities Inc.
Ontario
Sevita International
Ontario
Non-GM production*
Broadgrain Commodities Inc.
Ontario
La Coop fédérée
Quebec
SG Ceresco Inc.
Quebec
Exports
Bunge Canada
Quebec
Ontario
CFT Corporation
Ontario
Ontario
Snobelen Farms
Non-GM
Exports
Exports
London Agricultural
Commodities Inc.
South West Ag Partners
Ontario
DG Global
Ontario
Parrish & Heimbecker Ltd.
Ontario
Globeways Canada Inc.
Ontario
Ray-Mont Logistics
Quebec
St. Lawrence Beans (Division
of Agrocentre Belcan Inc.)
Quebec
Hensall District Co-Operative
Onitaro
Semences Prograin Inc.
Quebec
Thompsons Limited
Ontario
Non-GM Exports
Domestic use**
2014
Year
1,000,000
1,000,000
00
2012
Company name
Imports
Domestic use**
2014
Source: Statistics
Canada, 2015; Agriculture and
Imports
Agri-Food Canada, 2015; Soy Canada, 2015.
Domestic use**
* Non-GM production is based on industry estimates
** Domestic use is based on soybean crop year – September-August
2014
containers.
YearThe 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.
Soy Canada is a national association
representing every group involved in
the development, production, handling,
processing and transport of Canadian
soybeans.
Soy Canada was formed in 2014 by the
members of two previous organizations:
Canadian Soybean Council, which
represented soybean farmers, and Canadian
Source: Soy Canada
Production
Production
Non-GM production*
Non-GM Exports
2,000,000
1,000,000
2,000,000
2,000,000
Production
7,000,000
6,000,000
Metric Tons
Leading Canadian soybean exporters
Canadian soybean production and disposition
Percentage of non-GM soybean production by province
% Non-GM1
Source: Statistics Canada, 2015; Soy Canada, 2015.
Production (Mt)2
Non-GM Production (Mt)*
Province
2010 2011 2012 2013 2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
Soybean Exporters Association (CSEA),
which was focused on expanding markets
and improving the quality of Canadian
soybeans. The addition of seed companies,
commodity exporters, processors and other
industry participants created a full value
chain organization.
Quebec
51.3%
50.0%
27.0%
20.0%
30.0%
807,000
800,000
825,000
847,000
898,000
413,991
400,000
222,750
169,400
269,400
Manitoba
5.0%
5.0%
5.0%
0.5%
0.75%
435,400
413,700
759,300
1,068,200
1,107,700
21,770
20,685
37,965
5,341
8,308
Ontario
35.0%
35.0%
25.0%
20.0%
25.0%
3,048,100 2,966,500 3,274,000 3,078,100
3,791,100
1,066,835
1,038,275
818,500
615,620
947,775
PEI
25.0%
16.0%
23.0%
23.0%
23.0%
60,100
10,175
7,840
11,822
14,145
13,823
ESTIMATES OF TOTAL NON-GM PRODUCTION
1,512,771 1,466,800 1,091,037
804,506 1,239,306
Approximately two-thirds of Canada’s
soybean production is exported; approx­
imately half of those exports are food grade.
% Non-GM*
34.81%
15.48%
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
2012 – 13
3,470,277
2013 – 14
3,470,637
The top five countries of destination for
Canadian soybean exports in 2013-14 were
China, United States, Netherlands, Japan,
and Belgium.
Source: Statistics Canada.
TOTAL CANADIAN PRODUCTION
40,700
49,000
51,400
61,500
4,345,300 4,246,300 5,086,000 5,198,000 6,048,600
34.54%
21.45%
20.49%
1. Industry estimates, 2010-2014; 2. Statistics Canada, 2015; *These numbers are industry estimates based on approximate seed sales, 2014
About GM vs Non-GM
production
The volume of non-GM beans grown in
Canada has regained some of its lost ground
and has increased in the last three years.
Approximately 20 per cent of soybeans
grown in Canada in 2014 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.
For more information
Canadian Food Grade
Soybean Database
Canadian Oilseed
Processors Association
www.gosoy.ca/osacc_fg_database.php
www.copaonline.net
Canadian International
Grains Institute
Soy Canada
www.cigi.ca
Canadian Grain Commission
www.grainscanada.gc.ca
www.soycanada.ca
6
7
Growers
In 2015, approximately
5,420,400 acres of soybeans
were seeded in Canada, with
nearly three million of those
acres grown in Ontario.
Although soybeans are
grown from Alberta to PEI,
the remainder of Canada’s
production is grown largely
in Quebec and Manitoba with
production in Saskatchewan
starting to increase since 2013.
Soybean production has risen
dramatically in Manitoba in
recent years, to 1,330,000 acres
seeded in 2015 compared to
only 415,000 acres in 2009.
Total Seeded Area (Acres) By Province
Canadian soybean production history by crop year (September – August)
Province
2009
2010
2011
2012
Manitoba
415,000
520,000
575,000
800,000
Maritimes
(‘09 – ‘15)
Crop year
Acres harvested
(‘000 acres)
Yield (bu/acre)
Production
(‘000 tonnes)
1,330,000
220.48%
2014-15*
5,523*
40.2*
6,048*
2013
2014
2015
1,050,000
1,270,000
Change
• Rising costs for land and inputs (fertilizer,
crop protection products, seed, fuel)
35,000
59,000
70,492
71,000
86,000
92,000
82,000
134.29%
2013-14
4,956
42.8
5,358
Ontario
2,470,000
2,500,000
2,464,870
2,590,000
2,600,000
3,070,000
2,930,000
18.62%
2012-13
4,149
45.0
5,086
Quebec
598,000
659,800
741,300
691,900
712,900
859,900
778,400
30.17%
2011-12
3,840
42.7
4,466
• Increased pests – soybean aphids, soybean
cyst nematode (SCN), soybean rust
0
0
0
0
170,000
270,000
300,000
2010-11
3,721
43.9
4,444
• Export market acceptance of GM soybeans
3,581,600
3,738,800
3,851,662
4,152,900
4,618,900
5,561,900
5,420,400
2009-10
3,488
37.7
3,581
Source: Statistics Canada.
2008-09
2,954
41.5
3,336
Crop year for soybeans is September-August; 2014-15 numbers current to June 2015
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
Saskatchewan
Total
–
51.34%
Source: Statistics Canada.
Soybean production in Canada by province
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.
Source: Soy Canada
Saskatchewan
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.
Manitoba
Ontario
Quebec
Soybean Growing Region
New Brunswick
Prince Edward Island
Nova Scotia
Canada’s Soybean Value Chain
Current issues facing growers:
In Manitoba, soybean growers are
represented by Manitoba Pulse and Soybean
Growers Association, in the Maritimes by
the Atlantic Grains Council, and in Quebec
by Federation des producteurs de cultures
commerciales du Quebec.
* 2014-15 figures to June 2015 only
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
For more
information
Grain Farmers of Ontario
www.gfo.ca
Manitoba Pulse and
Soybean Growers
www.manitobapulse.ca
Federation des producteurs
de cultures commerciales
du Quebec
www.fpccq.qc.ca
Atlantic Grains Council
www.atlanticgrainscouncil.ca
8
9
• Cargill 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.
Location
Total
capacity
Percentage
soybeans
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
Mechanical extraction
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
Delmar Commodities Ltd., Winkler MB
Bunge, Hamilton ON
Delmar
Commodities
Ltd.
Winkler
MB
150
100%
tonnes/day
Soya Excel
Beloeil
QC
24,000
100%
tonnes/year
Tri-County
Protein
Tri-County Protein Corp., Winchester ON
TRT ETGO, Becancour QC
6 Soya Excel, Beloeil QC
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
2012 – 13
1,549,914
2013 – 14
1,539,169
2014 – 15
1,454,670
Source: Canadian Oilseed
Processors’ Association
Canada’s Soybean Value Chain
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.
ADM Agri-Industries Ltd., Windsor ON
Percentage
soybeans
• Bunge Canada
Solvent extraction
Total
capacity
• ADM Agri-Industries Ltd.
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.
There are multiple solvent and mechanical
soybean processors in Canada.
Location
More than half of Ontario’s soybeans are
handled by only a few major companies in
the province (listed here alphabetically):
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.
Processor
As of 2015, there are 294 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.
Processors
Processor
Elevators
6
10
11
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.
Domestic
processors
IP Contractors
Growers
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
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.
Trait Developers
Food
soy beverage
tofu
miso
Elevators
Oil
Export
markets
Protein
Hulls/other
Canada’s Soybean Value Chain
12
13
(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
Waxes, solvents and biodiesel
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 multi-purpose lubricant/
penetrant (Ecolube). 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/BiobasedLubricant.pdf.
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.
Paints and coatings
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 paints and wood
protective coatings, such as Urethane, are
now using soy in their formulations.
Canada’s Soybean Value Chain
Emerging applications include bioremediation, 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.
(United Soybean Board/Soybean Checkoff)
Oil
For more
information
Value-adding
opportunities for
soybean oil
Soy 20/20, 2011
http://www.soy2020.ca/pdfs/
2011-Soy2020-Report.pdf
Food uses
Soybean oil is the second largest source
of edible oil used in Canada behind only
canola. Over 200,000 metric tonnes of
soybean oil were used in Canada during the
2014 crop year.
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
2013-14
Soybean oil
(‘000 tonnes)
Import
29
Production
281
Export
104
Source: Canadian Oilseed Processors Association,
Statistics Canada.
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 partial hydrogenation. Low linolenic
soybeans varieties were the first varieties
with specialty oil traits to come to market
in 2006.
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. These soybeans
are in early commercialization with food
service and food manufacturers moving
quickly to use its superior performance and
functionality.
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,
including yogurt, salad dressing, vegetable
marinades, granola bars and spreads and
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-Soy-Report.pdf
should give consumers yet another source of
foods rich in omega-3 fatty acids.
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.
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15
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. Less than 10 per cent of domestic
soybean meal supply is exported.
Canada: Soybean meal use by
livestock and poultry
Wood adhesives
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.
Canada: soybean meal supply and
disposition
2013-14
Soybean meal
(‘000 tonnes)
Import
952
Production
1223
Export
116
Source: Canadian Oilseed Processors Association.
Agricultural uses
Poultry
Swine
Dairy
Other
Source: Soy 20/20 projection.
Livestock feed
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.
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
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’s Soybean Value Chain
Industrial uses
Rubber, plastics, resins and
cosmetics
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.
For more
information
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
(United Soybean Board/Soybean Checkoff)
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.
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 flour
Soy protein concentrates
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
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-Soy-Report.pdf
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17
Hulls, fibre and minor components
Looking forward
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.
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.
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.
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.
Although much of the product currently
available on the market is produced
using U.S.-sourced soy-based ingredients,
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.
To that end, Soy 20/20 has taken the lead
in several comprehensive market studies
on the entire oils industry to provide
information and analysis to industry and
policymakers.
Increased processing capacity – for both
commodity and value-added specialty
products – will help move this process
forward immensely. Soy 20/20 has recently
completed feasibility studies for soybean
crushing and refining facilities for both
Manitoba and Ontario and continues to
work with various value chain partners
in an effort to make processing capacity
expansion a reality. 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.
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.
Information and analysis are available
by contacting Soy 20/20.
3380-08-2015
A member of the Agri-Technology Commercialization Centre
120 Research Lane, Suite #200
Guelph, ON N1G 0B4
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.