Seed selection can help farmers battle competitive threats
Right now, farmers across the country are making critical seed decisions in an effort to increase their bottom line next year. Paying attention to end-user demands, and planting soybeans with traits to meet those demands, keeps customers happy – and profitability high.
End users like poultry and livestock producers and food companies choose soybean meal and oil for the nutritional and functionality benefits they offer. However, competitive forces, like ingredients from other crops and other countries, are putting pressure on the soybean industry to offer customers even better products.
The soy checkoff funds research to provide farmers with the very best soybean varieties. But U.S. farmers are the ones to bring these improved soybeans, with improved meal and oil components, to fruition to meet customer needs. When both parts of this equation come together, exciting new opportunities emerge. Take high oleic soybeans, for example.
The high oleic partnership
When trans fats became an issue and soybean oil market share declined, the industry responded with high oleic soybean varieties. By partnering with the industry the checkoff helped drive these innovative varieties that are helping farmers regain demand lost to other competitive oil sources. Because high oleic is an enhanced oil that’s in greater demand, processors offer a premium to farmers for growing it.
“As farmers, we need to look at all opportunities to maximize profits,” says Indiana farmer Al Osterlund, who has planted high oleic varieties the past two years. “It’s a no-brainer. That additional premium is huge, and there isn’t any special treatment other than segregating.”
By simply choosing to plant high oleic soybeans, farmers can meet new demand and address competitive forces. But they can’t do it alone. The high oleic initiative shows it take a collaborative effort that also includes the checkoff, seed-technology companies, processors and more.
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