Grainnet

St. Louis—Illinois and Indiana soybean farmers are helping to meet growing global demand by planting food-grade soybeans for processors that send their beans to markets such as Asia where the beans are used in soy-based food products such as tofu and miso.

Growers are expanding their soybean portfolios by taking advantage of the premiums being offered for planting enhanced-quality traits such as food-grade, Identity Preserved (IP) and non-GMO.

With the growing demand for these enhanced-quality soybeans from overseas customers, premiums for these soybeans are most likely going to continue rising.

“I have conversations all the time with other farmers.

"Sometimes they ask why we’re doing this, but for us, it does provide greater value,” said Ken Dalenberg, a soybean farmer from Mansfield, IL.

“From an economic perspective, transportation costs vs. premium, there’s a premium in the marketplace for growing non-GMOs.”

Trends indicate that demand for enhanced-quality soybeans is continually increasing, but production acreage is not meeting the demand, culminating in higher prices.

Annually 60 million bushels of soybeans are exported at a premium for food-grade uses. Customers in Asia, the likely destination for many of these food-grade soybeans, are adamant about buying non-GMO varieties.

“Asia is a very big user of non-GMO soybeans,” said Tom McKay of SunOpta Company, which has contracts with farmers in seven states, including Illinois.

“As you’ve seen the last few years, soy has been given a lot of very good press because of the health benefits of eating soy.

"We’re seeing more and more demand here in the United States for various food purposes as well.”

The number of non-GMO, food-grade and Identity Preserved varieties becoming available offer more profit opportunities for farmers.

This year’s production acreage for low-linolenic soybeans, for instance, is estimated at between 2.5 and 3 million acres.

Next year will see a high-oleic variety added to the list.

Both of these examples are being sought by the food industry because they result in oil with no trans fat.

“With the economic incentive to grow non-GMOs and looking at the cost of conventional chemicals, the cost of growing non-GMOs is actually less,” Dalenberg said.

“We’ve had very good success with non-GMOs being very competitive with commodity beans.”

" Infrastructure that is already established in the United States offers soybean farmers a competitive advantage from which to work in growing a diverse list of soybean varieties.

"U.S. facilities can offer storage and shipping space, as well as the record-keeping expertise to accommodate this diverse supply that must be kept segregated and traceable.”

For a look at how the premiums for growing food-grade soybeans can improve their operation’s bottom line, farmers can visit this site.

For more information, call 888-235-4332.

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