Protein


	Issue 107 Prairie Grains


	Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, Montana Grain Growers Association and South Dakota Wheat, Inc.

This spring, the Minnesota Soybean Growers Association and Council announced the availability of an NIR (Near Infrared) machine at their office in Red Lake Falls. This technology will allow soybean growers to test the protein quality of their soybean crops.

While wheat growers are more than familiar with protein levels in their spring wheat crop, protein levels of the soybeans are also very important. The protein levels of U.S. soybeans has declined over the last 8 years according to the results of the annual United Soybean Board funded crop quality survey conducted in partnership with the U.S. Soybean Exports Council (USSEC). This decline is seen nationally, not just regionally. However, protein levels are particularly important to MN soybean farmers particularly as production continues to expand in northern MN. Protein levels in soybeans are determined by geography, and not production issues. The further north beans are grown, the more challenging it becomes to maintain customer-demanded protein levels due to growing conditions as determined by geographical location.

Although there are no direct discounts or premiums for soybean protein levels at your local elevator, there are two end-use customers in particular that demand specific protein levels. Export customers demand protein levels approaching 35 percent in order to use these beans for processing into high-protein meal and other soy-derived products. The majority of soybeans grown in the upper Midwest states of IA (above I-80), MN,ND, NE and SD are shipped by rail to Pacific Northwest (PNW) ports and then shipped in bulk or containerized methods overseas to Asian customers, including China, the number one export customer for U.S. soybeans. Since these northern grown, lower protein beans leave through PNW ports they are not blended with their higher protein southern counterparts, which are often exported through Gulf ports. Low-protein soybeans put farmers at risk of losing some export market share.

The other end user who demands specific protein levels is our domestic soybean meal market. Low-protein soybeans make it harder to obtain the desired high-protein meal for the domestic poultry and livestock industry, which is the number one domestic customer for U.S. soybean meal. Approximately 98 percent of U.S. soy meal is consumed by domestic poultry and livestock.

If keeping the customers happy is not a good enough reason to care about soybean protein levels, perhaps on farm profitability will make you think twice. Low protein levels (low oil levels can impact as well) lead to lower estimated processed value (EPV) for those soybeans, which, ultimately, impacts the prices that U.S. soybean farmers receive for their beans. There is a direct correlation between soybean quality – measured in terms of oil and protein levels – and EPV. Farmers receive about 15 cents less per bushel based on low protein levels. The result: lost profit.

Customers for U.S. soybeans demand high protein (and oil) in order to achieve the desired end-product that they make from those beans. Protein levels of at least 35 percent, and oil levels of 19 percent is the combination that meets the needs of end-use customers for U.S. soybeans no matter where those beans are grown. Farmers have the ability to counter the challenges associated with geography through informed seed selection. There are soybean varieties readily available that have demonstrated acceptable yields while also providing high oil and protein levels.

More on USB/soybean checkoff efforts associated with this issue can be found at http://unitedsoybean.org/programs/choosing_the_right_variety/select_yield_quality_.aspx.

An annual Crop Quality Survey is conducted by Seth Naeve at the University of Minnesota. For crop year 2009, a total of 246 samples were submitted by MN soybean farmers for testing. Those samples demonstrated an average oil level of 18.8 percent and average protein level of 34.6. The survey results for all states resulted in an average oil level of 18.6 percent and average protein of 35.3 percent. These are acceptable levels in the minds of buyers. The key is to maintain levels near the 19 and 35 targets as possible from year to year.