In the context of challenging commodity markets, an emerging opportunity for soybean producers is increased demand for soybeans with high oleic acid content. Available through some of the major seed companies, high-oleic soybean (HOSB) varieties are often grown under Identity Preserved (IP) contract and can help farmers secure a premium that routinely exceeds the per acre ROI of conventional soybeans.
Consumer Interest in High-Oleic Soybeans
A primary reason for increased high-oleic soybean demand rests with consumers' shift toward health-conscious decisions about nutrition. High-oleic soybean oil — boasting a greater percentage of unsaturated fat — is preferred as a healthy substitute to conventional frying oil, which is used widely across the restaurant industry. Same goes for the vegetable oil found in thousands of commercially prepared baked goods, snack foods, salad dressings and more.
It is worth noting that some IP contracts on today's market are for non-GMO soybeans to meet consumer demand for food ingredients that have not been genetically modified. For most farmers, growing non-GMO soybeans will require a significant change in weed management practices. There are nevertheless effective strategies at your disposal, but careful consultation with an agronomist is recommended.
HOSB and Animal Nutrition
Another important factor in the expanding high-oleic soybean market can be attributed to implications for animal nutrition. Including HOSB in dairy feed formulations can make a positive impact on milk production volume and milkfat composition, which, in turn, support a producer's profitability. For swine and poultry operations, inclusion of high-oleic soy at higher rates translates to improved carcass and meat quality.
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