Transcript Freedom to Operate - United Soybean Board

Soy Meal Overview
USB Partnership Workshop
St. Louis, MO
May 30, 2013
Objective:
Increase the value of U.S. soy
meal to the entire value chain
Meet the Meal Action Team Staff
• Ed Beaman, USSEC – International Opportunities
• Jennifer Jones, SmithBucklin – Supply and Domestic
Opportunities
• Erin Hamm, Osborn Barr – Communications
Meeting Demand
• International demand is
outpacing supply
• Increase soy meal usage
and sales in U.S. and
globally
• Highlight U.S. soy meal
quality
Meeting Demand
• Protect and increase
soybean supplies by
improving yield and seed
quality
• Increase profitability by
generating value added
soybean products
Domestic Opportunities
Soybean Meal Markets
100%
90%
80%
US Soybean Production and Use in Meal and Oil
Equivalents
SOYBEAN PRODUCTION
(OIL EQ)
16.0
Segment Precentages
70%
MEAT CONSUMED
DOMESTICALLY
(SBM EQ)
SBO CONSUMED
DOMESTICALLY
IN FOOD
22.7
6.1
MEAT EXP (ML EQ)
60%
4.0
MEAL EXPORT
50%
40%
30%
SOYBEAN PRODUCTION
(MEAL EQ)
65.2
MLN MT
20%
9.0
BIODIESEL (SBO EQ)
2.2
SBO EXPORT
1.0
SB EXPORT (MEAL EQ)
SB EXPORT (OIL EQ)
29.2
MLN MT
7.2
MLN MT
MEAL EQ USE
OIL EQ USE
10%
0%
BEAN PROD
Production and Usage in Million MT of Meal and Oil Equivalents - 2012 Crop Year
International Opportunities
U.S. Soybean Exports
1600
1400
Check-off
Began
1200
MMT
1000
800
USSEC
Began
600
400
200
0
1986
1991
1996
2001
2006
2011
Investment in International Markets is
a Sound Investment!
• U.S. Soy exports equal almost 60% of production
(beans, meal and oil) and rising.
• Growing consumption trends outside the U.S.
• Rapid growth in developing economies where Soy
meets basic demands of protein and vegetable oil
• 9 billion people in the world by 2050!
• Rising Middle Class able to afford more meat
– 30 million in China alone next year
• Health conscious public
Communications
Increase demand and value of U.S. soybean meal
Communications
Beyond the Elevator:
Where we started
• FALL 2010 – 15%
U.S. soybean farmers who identify animal
ag as most important to their bottom line
• JAN 2011 – BTE Launched
• JAN 2012 – 40%
U.S. soybean farmers who say animal ag is
No. 1 customer
• FALL 2012 – 65%
Farmers say animal ag “very important”
Supply Target Area
• Breeding and Molecular
Biology
– Yield
– Genomics
• Seed Protein Composition
– Improve Soybean Meal
Composition
• Amino Acids
• Carbohydrates
Supply Target Area
Protect existing yield potential
from losses to biotic and abiotic
stress
• Biotic Stresses
– Soybean Diseases
– Insects
– Nematodes
• Abiotic Stresses
– Drought
– Heat
– Flooding
Thank you!
USB’S HIGH OLEIC
SOYBEAN
INTERNATIONAL
MARKET
PREPARATIONS
15
PRESENCE
USSEC has 107
team members in
80 countries
EUROPE/CIS/TUR
KEY
ST.
MENA/A
NORTH ASI
LOUIS
SC
AMERIC
AS
SOUTHEAST
ASIA
16
US HIGH OLEIC INTERNATIONAL
MARKET PREPARATIONS
December 2012
2011
John Becherer
formally rolled
out HOSB at
USSEC
conferences in
Japan, Korea,
China, and
Taiwan
Latin America
- Mexican authorities
define High Oleic
Standards/Specs
- Prepare
Refiners/Crushers
2012
2013+
- Conducted
Worldwide HO
Market
Assessment
- Japan, Korea,
Indonesia,
China, Taiwan,
Latin America
- Continued HO
prep in Latin
America added
Middle East –
USB and FAS
Investments
- CODEX =
Needed Product
Category
- CCFO (Codex
Committee on
Fats and Oils) building
“Historical
International
Sales”
17
US HIGH OLEIC SOYBEAN OIL
INTERNATIONAL MARKET
PREPARATIONS
Conducted Market
Assessment
Catalog International
Regulatory Approvals
Pace of Substitution
and Tipping Points
Adoption
- Monitor/measure adoption
- Project supply
- Codex CCFO
- Reclaim Healthier Oil
- Forecast overseas demand
- International Sales
status
- Project global demand
- Determine likely oil
country targets
- Parallel Market Entry
- Raise awareness
- Identify partners
- Determine end user
adjustments
- Monitor/Respond to competing
Oils response
- Work with prospective customers
categories
- Update the international
markets
- HRI, Industrial, Value Chain
and Influencers
- Preference for form
- Conferences
- Trade Team visits
- Determine Supply
- Encourage trial usage
- Overcome concerns
- Monitor Supply/Inventory
- Encourage substitutions
- Technical Support
- Monitor competing oils
response
- Monitor Supply
- Update Markets
18
COLLABORATE!
19
HIGH OLEIC SOYBEANS:
RECONQUERING THE OIL
MARKET
United Soybean Board
2013
20
WHY HIGH OLEIC?: MARKET
SITUATION
• Soy oil dominated
U.S. edible oil
market with 17
billion lbs of
demand.
2000
• High oleic soybeans become
commercially available.
• High oleic oil provides
higher functionality in both
food and industrial sectors.
2006
• Trans fat labeling law
enacted.
• Food industry reacts by
reformulating products.
• Soy loses 4 billion lbs
of edible oil annually.
2014
2023
• High oleic could build 12 billion
pounds of soy oil demand in both
food and industrial product
sectors, as well as exports.
• Goal: high oleic grown on 25
million acres.
21
INCREASING VALUE OF SOY OIL
Oil
As demand for soy oil
increases, value of soy oil
increases.
Increase value
of U.S. soybeans
Meal
Results: decreased share of the
total value, decreased costs for
animal feed.
22
HIGH OLEIC BENEFITS
Food
Industrial Uses
• Compared to commodity
soy:
•
•
•
•
•
Increased stability
Less saturated fats
No trans fats
Longer fry life
Longer shelf life
• Stability comparable to
petroleum-based solutions
• Economically-viable
alternative to petroleumbased products
23
PUSH STRATEGY: HIGH OLEIC
VARIETAL EXPANSION
United Soybean Board:
• Agreements to expand
availability of high oleic
varieties
• Targeting Maturity
Groups 1-5
• Goal of 30 percent of U.S.
soybean acres by 2023
• 25 million acres
24
PUSH STRATEGY: FARMER &
SEED SUPPLIER OUTREACH
Grassroots awareness
Engaging influencers in the
marketplace
Industry-wide messages
Demonstrated on farm
performance
25
PULL STRATEGY: END USERS
Food Manufacturers
Food Service
Health Professionals
Industrial/nonagricultural use
26
PROFITABILITY FOR U.S. SOYBEAN
FARMERS
25 million acres by 2023
• Raise value of all U.S. soybeans
• Increase individual farmers’ profitability
• The farmers who plant them benefit two-fold.
27
TAKE-HOME POINTS
Increase demand for
U.S. soy oil
Increase value of U.S.
soybeans
Reduces the cost of
U.S. soy meal
U.S. soy raises the
global bar as a key
global supplier
28
Freedom to Operate
2014-Strategic Focus
Freedom to Operate
2014-Strategic Focus
BIOTECHNOLOGY
SUSTAINABILITY WATER
Longevity of Industry
Animal Ag TRANSPORTATION
Freedom to Operate
Water
Freedom to Operate
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Quality-Availability-Perception
Freedom to Operate
Water
Quality-Availability-Perception
Challenge: Varied Issues, Local Focus
Freedom to Operate
Water
Quality-Availability-Perception
Analysis of Opportunities
Freedom to Operate
Water
Quality-Availability-Perception
Analysis of Opportunities
Industry Coordination
Freedom to Operate
Water
Quality-Availability-Perception
Analysis of Opportunities
Industry Coordination
QSSBs, commodity groups,
agencies..
Freedom to Operate
Water
Quality-Availability-Perception
Analysis of Opportunities
Industry Coordination
Best Practices
Freedom to Operate
Water
Quality-Availability-Perception
SUCCESS?
Freedom to Operate
Water
Quality-Availability-Perception
SUCCESS?
• Unified Approach
• Tools for Problem Solving
• Stronger Relationships
• Ongoing Learning
Freedom to Operate
2014-Strategic Focus
BIOTECHNOLOGY
SUSTAINABILITY WATER
Longevity of Industry
Animal Ag TRANSPORTATION
Freedom to Operate
2014-Strategic Focus
Consumer Acceptance
Freedom to Operate
2014-Strategic Focus
Consumer Acceptance
Biotechnology
Sustainability
Animal Ag
Freedom to Operate
2014-Strategic Focus
Consumer Acceptance
Biotechnology
Sustainability
Animal Ag
CommonGround
CFI
USFRA
Freedom to Operate
2014-Strategic Focus
Consumer Acceptance
GMO Labeling
Food Safety
Public Health
Pesticides
Environmental Concerns
CommonGround
CFI
USFRA
Customer Focus
Meet our customers’ needs with quality soy
products and services to enhance and expand
our markets.
Customer Preference
We want U.S. soy!
How do we get them to say “We want U.S. soy”?
In-depth understanding of market needs / trends
Understand and deliver on needs by region & use of soy
Steps to Ensuring U.S. Soybean Quality
Beyond the Elevator Evolution
Soy Quality
Soy Quality
Soy Quality
Soy Quality