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Technical Resources

Quantifying the value of increased soybean meal crude protein and energy in swine and poultry diets

Pope, M.
2024

The soybean supply chain incentivizes upstream participants to maximize crop yield (volume), while downstream participants (nutritionists) make decisions based on crop quality characteristics such as amino acid concentration and energy content. These parameters tend to decline as soybean yield increases. Consequently, the value proposition for soybean meal (SBM) is not fully recognized in the market. Furthermore, on a global basis, SBM sales are based primarily on minimum crude protein (CP) content, which does not fully account for the true value of SBM to the end user. A recent study (Pope et al., 2023) presented a framework to quantify SBM value in swine and poultry diets using digestible amino acids and energy as the primary determinants of end-user value. SBM samples were analyzed for moisture, CP, and 11 amino acids (AA). These values were regressed to estimate 5 SBM CP concentrations (44.0, 45.0, 46.0, 47.0, and 48.0% CP) and the corresponding energy, and then used in a formulation exercise. Least cost diet formulation software calculated the cost of diets for swine and poultry for the 5 SBM CP concentrations. For each scenario, the only change allowed during the least cost optimization was the individual CP concentration of SBM. Relative SBM economic value ($/ton) was determined based on the changes in the nutritional properties of the SBM (amino acids and energy). To estimate the relative SBM value in the diet by CP concentration (44.0–48.0%, or total lysine 2.75–3.01%), differences in formula cost were applied to the SBM based on the amount used per ton.

The results show that for each 1% increase in SBM CP concentration from 44.0 to 48.0%, the SBM value increased on average $9-14 per ton for swine and $11-18 per ton for poultry per ton of feed based on changes in ingredient prices from marketing years 2016/2017 through 2022/2023. This value represents the additional amount that swine and poultry end users could pay for a higher SBM concentration without increasing diet costs. This analysis can be used to understand the economic value of SBM based on intrinsic product and compositional characteristics.