Soybean M eal Quality by Origin - U.S. Soybean...

Resea rch fo r deve lopment

Soybean Meal Quality by Origin:

Economical Value of Hipro Soybean Meal in Least Cost Formulations

Report: USSEC No. 7/2013

August 7, 2013

J. Doppenberg, Ph.D.

This report is a contribution to the feed and animal feed industry in the European Union, brought to you by:

Report: USSEC No. 7

Least Cost Formulations of Animal Feeds in Different Regions for the

U.S. Soybean Export Council, American Soybean Association-

International Marketing, and United Soybean Board

Periods: August-September and October-December 2013

By J. Doppenberg, Ph.D.

Schothorst Feed Research B.V.

CONTENTSCONTENTSCONTENTSCONTENTS

0. Executive summary0. Executive summary0. Executive summary0. Executive summary ............................................................................................................4

1. Introduction1. Introduction1. Introduction1. Introduction.........................................................................................................................5

2. Feedstuff market developments Netherlands2. Feedstuff market developments Netherlands2. Feedstuff market developments Netherlands2. Feedstuff market developments Netherlands..................................................................5

3. Shadow prices soybean meal by origin, th3. Shadow prices soybean meal by origin, th3. Shadow prices soybean meal by origin, th3. Shadow prices soybean meal by origin, the Netherlandse Netherlandse Netherlandse Netherlands................................................7

3.1 Shadow prices soybean meal by origin, Spain ..........................................................12 3.2 Shadow prices soybean meal by origin, Poland ........................................................16 3.3 Shadow prices soybean meal by origin, Romania, Bulgaria, Serbia and Macedonia

..............................................................................................................................................20

4. Analyses of value differences (4. Analyses of value differences (4. Analyses of value differences (4. Analyses of value differences (€/100 kg) of €/100 kg) of €/100 kg) of €/100 kg) of soybean mealsoybean mealsoybean mealsoybean meal of differing qualities of differing qualities of differing qualities of differing qualities .......24

AppendixAppendixAppendixAppendix

Table 1. Matrix values of SBM by origin

Table 2. Feedstuff prices in different regions

Disclaimer:

The content of this report is for informational purposes only. All information provided in

this report is to the best of our knowledge accurate and based on solid research.

Schothorst Feed Research BV can not be held responsible for any claims resulting from

the use of the information provided or feedstuff prices mentioned in this report in

formulating feeds or purchasing feedstuffs.

Schothorst Feed Research B.V. 4

0. Executive summary0. Executive summary0. Executive summary0. Executive summary

The added value of higher quality soybean meal in feeds for different species is studied in

this report with feedstuffs and prices for four regions: the Netherlands (indicative for

North Western Europe), Spain (indicative for South Western Europe), Poland (indicative

for North Eastern Europe) and Romania (indicative for South Eastern Europe).

The current market price of Hipro soybean meal in €/100 kg in the different regions is as

follows:

Table A. Market prices of soybean meal in different regions

Hipro SBM* Netherlands Spain Poland Romania

€/100 kg 47.10 50.70 42.60 58.45

*Hipro soybean meal is sold on a per unit of protein basis, the average protein content of the generic product used in the formulations is 46.8%.

The shadow price and the added value of high quality soybean meal depends on the

costs of all protein rich feedstuffs offered on the market, the costs of energy rich

feedstuffs (grains and fats & oils), the species for which a feed is formulated and the

animal category. The inclusion rate of Hipro soybean meal is highest in poultry feeds (10-

30%). A higher quality soybean meal is defined as a product with a higher amino acid

content per unit of protein (specifically lysine) and a higher organic matter and protein

(amino acid) digestibility, resulting in higher digestible amino acid and energy matrix

value. Hipro soybean meal is defined as containing on average 46-47% crude protein.

The calculated value differences for Hipro soybean meal by origin are:

Table B. Value differences (+/-) of Hipro SBM in €/100 kg among origins, due to different nutrient values (see Appendix for matrix values), for feeds for different species (based on a Hipro SBM price of € 47.10/100 kg in the Netherlands for week 31)

Swine Layer Broiler

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Protein € -0.59 -0.48 +0.14 -0.89 -0.70 +0.20 -1.02 -0.81 +0.23

Energy € -0.48 +0.12 +0.60 -0.40 +0.17 +0.57 -0.64 +0.49 +1.12

Dig. AA € +0.20 +2.24 +2.01 +0.28 +0.61 +0.32 +0.25 +1.39 +1.15

Total € -0.87 +1.88 +2.75 -1.01 +0.08 +1.09 -1.43 +1.07 +2.50

*Rest caused by differences in amino acid digestibility and mineral content (P), see table 10.

In conclusion

Hipro soybean meal from the United States has a € 0.80-18.80/1000 kg higher value

(absolute) than Brazilian Hipro SBM. Compared to the Argentinean origin the added value

of U.S. SBM is € 10.90-27.50/MT. U.S. Hipro soybean meal has the highest added value

for swine (€ 18.80-27.50) feeds, followed by broiler (€ 10.70-25.00) and layer feeds (€

0.80-10.90 /MT). Differences in the energy and digestible amino acid + P content


contribute more to the added value of Hipro soybean meal than differences in the protein

content.

On an equal protein content basis the value differences (in energy, mineral and

digestible amino acid content) are € 7.70-23.60 (U.S. vs Brazil) and € 8.90-26.10/MT

(U.S. vs Arg).

1. Introduction1. Introduction1. Introduction1. Introduction

Swine and poultry feeds are formulated via a Least Cost Formulation (LCF)-program to

evaluate the value of soybean meal of different quality (origin) and different regions (with

differing feedstuff prices/ availability). Market and future prices of feedstuffs for the

Dutch feed industry of week 31 are used for the periods August-September and October-

December. Current feedstuff prices obtained from the feed industry in Poland and

Romania were used. For Spain feedstuff prices from the Cambra Oficial de Comerc

Industria i Navegacio de Barcelona were used. For a listing of all feedstuff prices for the

different regions and periods see table 2 in the Appendix. Note that the same feedstuff

restrictions and nutrient requirements are used for all LCF’s. Premix, production and

marketing costs are not included. New matrix values for the different origins of recently

analyzed soybean meal samples are used. See the Appendix (table 1) for approximate

analyses and nutrient values used.

2.2.2.2. Feedstuff market developments Feedstuff market developments Feedstuff market developments Feedstuff market developments the the the the NetherlandsNetherlandsNetherlandsNetherlands

The prices of soybean meal have increased (for the short but not the long term) despite a

decrease of the prices of the other major feedstuffs including the protein rich feedstuffs.

The prices of the grains and by-products have decreased as well.

The good harvest predictions for the EU have resulted in a rapid decrease of the grain

prices and those of protein sources of European origin. Also in the US a good maize and

soy harvest is expected. For the long term soybean meal are expected to decrease. Also

decreasing maize prices will decrease feedstuff prices of grains and grain by-products

further in the Fall/Winter. Crop farmers and feed producers are taking a ‘wait and see’

approach on the market with little activity specifically for the long(er) term.

The price of palm and soy oil have decreased but those of and palm oil fatty acids have

increased slightly. Also the synthetic amino acids (L-Lysine and Threonine) have

decreased but those of DL methionine have increased. Most significant for feed costs

are the decreases of the grain and protein rich feedstuff prices, compensated by the

increase of soybean meal (especially for poultry feeds).

The Hipro soybean meal prices have increased to € 47.10/100 kg for the August-

September period. The future price for October-December is still at € 39.50. The price in


week 23 was € 44.60 for June-August (report nr 5/2013) and € 42.80 in week 27 for

July-September. Short and medium term prices for rapeseed and sunflower seed meal

have decreased. Maize DDGS is available for € 23.50 and rapeseed expellers for €

26.50.

Compared to last month (report no. 6, 2013 based on feedstuff prices of week 27 for the

July-September period), the feedstuff price changes for the summer are in summary as

follows. The maize price went down € 1.60/100 kg. Wheat decreased € 1.90, barley €

0.60 and triticale € 1.40. Rye is now at € 16.40 and triticale at € 18.00 more attractive

than wheat (€ 18.50) for pig feeds. Maize at € 21.00 has become less attractive for

layer feeds, it costs € 2.50 more than wheat. Furthermore the increase in the soybean

meal price makes maize even less attractive. The grain by-products decreased in price

too: wheat bran -€ 1.10, maize gluten feed meal and soy hulls both -€ 0.70. Palm kernel

meal (-€ 1.20), palm oil (-€ 7.00) and soy oil (-€ 4.80) all decreased, but PFAD increased

slightly (+€ 0.30) in price. Feed costs are significantly reduced.

The price of Lopro soybean meal increased as well (+ € 4.30), but that of toasted

soybeans decreased (-€ 1.40). Rapeseed meal decreased € 4.10, maize DDGS € 2.20

and sunflower seed meal € 1.70.

As indicated since the weather is good and the harvest looks plentiful the market will

respond with further price decreases. Feed manufacturers therefore will not be long in

inventory, anticipating lower feedstuff prices.


3.3.3.3. Shadow p Shadow p Shadow p Shadow prices soybean meal by origin, the Netherlandsrices soybean meal by origin, the Netherlandsrices soybean meal by origin, the Netherlandsrices soybean meal by origin, the Netherlands

The Hipro (49/3.5) soybean meal price for the summer period (August-September) has

increased from week 27 to 31 with € 4.30, which is almost equal to the decrease from

week 18 to week 27 of € 4.40. Clearly the Hipro soybean meal price is still high and

volatile. In time the price will decline, as already mentioned, the future price for the

October-December period has already decreased to below € 400/ton (to € 39.50/100

kg) and has stayed there since week 27 .

Rapeseed (-€ 4.10), maize DDGS (-€ 2.20) and sunflowerseed meal (-€ 1.70) have all

decreased in price in spite of the increase in the soybean meal price. Rapeseed expellers

are again available with the (good) European rapeseed harvest for € 26.50. Maize DDGS

is offered for € 25.70 and maize gluten meal (60% crude protein) for € 75.00.

Hipro soybean meal usage has decreased substantially with this high price, it is even not

included at all in swine feeds except the starter feed. Maize DDGS usage is therefore at

the maximum inclusion rate in layer, most swine and sow feeds. Rapeseed meal and

expellers usage is also maximised in all swine (expect for gestating sow feed), layer and

broiler feeds. Maize gluten meal is attractive for poultry feeds, the usage rate is 1-2% in

layer feeds. Since maize DDGS and the grains are attractive the usage of fats & oils

(PFAD) has decreased. Low energy protein sources like rapeseed and sunflowerseed

meal however have become less attractive for layer feeds with these high fats & oils

prices. Although soybean meal prices have increased considerable, the usage has

changed little in broiler feeds and to a lesser extend layer feeds since no other protein

sources in high quantities can replace soybean meal. It remains therefore in layer and

broiler feeds.

High energy protein sources like rapeseed expellers still have a high value even with the

high usage of maize DDGS (€ 25.50-26.16 for rapeseed expellers versus € 23.34-24.00

for rapeseed meal in the pig grower/finisher), product availability with the new harvest is

so far no problem. The shadow price for maize DDGS however is € 24.70 in the high

energy pig grower/finisher feeds and € 23.67 in the low energy pig grower/finisher feeds,

showing that with the high fat prices it has a € 1.03 advantage in higher energy feeds. In

sow feeds maize DDGS is in general much more attractive and the usage rate higher. The

shadow price is € 27.30 in the lactating sow feed at the market price of € 23.50, with a

usage rate of 15%. In all layer feeds the shadow prices ranges from € 29.28 to € 29.54.

Even in the broiler finisher the shadow price is € 24.50 and the usage rate 5%. Maize

gluten meal has a shadow price of € 89.40-93.98 in layer feeds and € 85.84 in the

broiler finisher. Peas are too expensive in broiler feeds, shadow price € 26.47-27.18, and

sunflowerseed meal in layer feeds, shadow price € 19.35-19.99.

Hipro soybean meal is more attractive in both the low and high energy grower/finisher pig

feeds than Lopro soybean meal. The shadow price of Hipro is € 44.51-45.74 in the

grower/finisher pig feeds at a market price of € 47.10 and the Lopro € 40.46-41.78 at a

market price of € 45.30. The spread is obviously highest with the Lopro and the prices of


all quality soybean meals are too high. Soybean meal has been replaced with maize

DDGS, rapeseed meal and peas, also the usage of synthetic amino acids is maximised

and high protein grains like triticale are used in swine feeds. In layer feeds wheat has

partly replaced maize for the same reason (although maize has become relatively

expansive too).

In pig(let) starter feeds soybean meal is still used extensively (10-11%). Maize DDGS is

highest and of most interest in (gestating and lactating) sow feeds rather than pig feeds

because of the protein quality. Also in layer feeds maize DDGS is of more interest than in

broiler feeds. Wheat bran is attractive for pig and sow feeds and but not for layer feeds

(since wheat and maize DDGS usage has increased). Other high fiber sources of interest

in pig feeds are palm kernel meal and beet pulp in sow feeds. Grain by-products like

maize gluten feed meal are also unattractive for layer feeds. Only limited amounts of

wheat DDGS are available, it is higher in protein but substantially lower in energy than

maize DDGS. The value of both maize DDGS and rapeseed products has decreased with

the lower prices of grains.

The grain prices have all decreased significantly, all grain prices with the exception of

maize (€ 210/ton) are below € 200/ton and rye is even down to € 164/ton. The future

prices for October-December are pretty similar to the August-September prices, in other

words the grain prices have already decreased to a more or less stable price.

Maize however will decrease further in price from € 21.00 in August-September to €

17.60 in October-December. It is expected that this price will decrease further as the US

maize harvest estimates increase. This will decrease the prices of the European grains

and grain by-products too.

Presently rye and triticale are the most attractive grains for swine feeds and maize is too

expensive. In the fall maize becomes more attractive at the expense of triticale.

The spread between the wheat and maize price is clearly in favour of wheat in layer feeds

too. Although maize has a higher energy content and energy prices are still high, the lower

protein content (and lower price) makes maize less attractive. The value of maize is €

16.70-16.78 in the layer feeds at a market price of € 18.50 for wheat. Maize usage is

maximised in broiler feeds and is minimised in layer feeds (25-35%). Maize DDGS usage

can limit the usability of maize in swine feeds (restrictions on linoleic acid (C18:2) content

in the feed) and the other way around, however under the current circumstances maize is

unattractive even in the high energy grower/finisher (shadow price € 19.93-20.27 at a

market price of € 21.00).

Swine feed formulations are based on rye, triticale, barley and wheat. Layer and broiler

feeds are maize and wheat based. In the Netherlands the amount of maize is restricted in

broiler feeds because of ‘white chicken meat’ or (yellow) fat colour concerns, while in

layer feeds a minimum amount of maize is used for egg yolk colouring.

Lopro soybean meal is available for € 45.30 for the August-September period but not

attractive for pig and lactating sow feeds (shadow price € 40.46-42.53) compared to


Hipro soybean meal at € 47.10. Therefore the difference in value between Lopro and

Hipro soybean meal is € 2.25-5.95 in pig feeds. The difference was € 3.58-5.26 in report

nr 6 and has decreased in the grower/finisher feeds and increased in the starter feed.

The shadow price for Hipro soybean meal in lactating sow feeds is € 44.51, but € 47.60-

48.58 in layer and € 47.35-50.45 in broiler feeds. Lopro soybean meal is also priced (€

3.50-3.52) too high for layer feeds compared to Hipro, i.e. the value is € 6.00-6.86 lower

than that of Hipro soybean meal in layer feeds.

The shadow price of maize gluten feed meal is € 18.32-18.95 in pig, € 10.82 in lactating

sow, but € 12.86-15.78 in layer and € 13.27 in broiler finisher feeds. Wheat bran is

unattractive in pig, sow and feeds due to the high usage of maize DDGS. Beet pulp is

attractive as a NSP-rich feedstuff for gestating sow feeds only. A price for animal fat is still

not available. Consequently only plant oils are used in the formulations. Palm oil fatty

acids are the most attractive fat source. The usage has decreased since maize DDGS is

attractive and the price of palm oil fatty acids has increased with € 0.30. Palm oil has

decreased much more in price (€ 7.00) than soy oil (€ 4.80) but remains expensive. Palm

oil fatty acids at € 59.80 are more attractive than palm oil at € 62.00. Palm oil fatty

acids usage is maximised in most poultry feeds, both palm and soy oil are used

additionally in layer and broiler feeds.

Resultantly the compound feed costs are lower for all feeds for the August-September

period compared to the July-September period of week 27 (Soybean meal quality by

origin report no 6/2013). The feed costs are reduced more in pig and sow than layer and

broiler feeds because soybean meal usage has remained high in poultry feeds. For the

October-December period the feed costs of all feeds are reduced further.

In table 1 the shadow prices of the different qualities soybean meal are given in feed

formulation for different species and periods.

Table 1. Shadow prices of soybean meal by origin, the Netherlands

Period Aug.-Sept. (SBM € 47.10) Oct.-Dec. (SBM € 39.50)

Origin CVB Arg. Brazil U.S. CVB Arg. Brazil U.S.

Swine Gr/Fin. 44.51 43.10 43.97 45.85 40.65 38.49 39.05 40.67

Layer Phase2. 47.60 46.42 47.43 47.51 41.65 38.96 39.81 40.08

Broiler Finisher 47.35 46.14 47.57 48.64 42.71 38.99 40.30 40.96

The shadow price of the CVB soybean meal should be interpreted as the value against

other available protein sources which could be used as ‘alternatives’ like rapeseed

meal/expellers, maize/wheat DDGS, wheat bran, peas and sunflower seed meal. The

shadow price (= maximum price for inclusion or an inclusion rate change) of the, generic,

CVB soybean meal has increased in all feeds, compared to week nr 27 (see report no

6/2013), because of the higher Hipro soybean meal price (a price of € 42.80 for the

June-September period in week 27 was used). The August-September shadow price of


the generic CVB Hipro soybean meal is above the market price only for poultry feeds (and

not for swine feeds). Hipro soybean meal is therefore only used in poultry (and pig starter)

feeds. The ‘spread’ (see also table 2) is higher in layer than broiler feeds, showing that

Hipro soybean meal usage rate is under the greater pressure in broiler feeds. The

‘spread’ in poultry feeds is considerable higher than in the previous period (in report no

6/2013) because soybean meal is very expensive and cheaper alternatives like maize

DDGS, maize gluten and rapeseed meal/expellers are available. Lower soybean meal

prices for the October-December make soybean meal more attractive as a protein source

and increase the ‘spread’ again.

In broiler feeds the value of Hipro soybean meal is high because of the high demand for

digestible essential amino acids and energy. The high value of U.S. soybean meal in

broiler feeds shows the relative high costs of energy (and digestible amino acids) in

formulating. Maize DDGS usage can decrease Hipro soybean meal usage, but not to the

extend as would be expected on a per unit of protein basis: i.e. Hipro soybean meal usage

is reduced with 1% when 3% maize DDGS is added in swine feeds.

In the August-September period in all swine grower/finisher and sow feeds no soybean

meal, is used; protein is obtained from protein rich grains (rye, triticale, barley and

wheat), maize DDGS, maize gluten and rapeseed meal. It is possible to use high amounts

of rapeseed meal (10%), even in the high energy grower/finisher pig and lactating sow

feeds despite the low energy content by increasing the usage maize DDGS. In poultry

feeds rapeseed expellers are therefore preferred (and usage is maximised). Rapeseed

meal and expellers usage is limited due to the presence of glucosinolates (an anti

nutritional factor affecting feed intake). Soybean meal usage is 10.0% in the pig starter

feed in this period.

Because the cost of the addition of maize DDGS has increased and that of soy protein

decreased, the crude protein content has increased in the all pig feeds. Nevertheless the

usage of synthetic lysine is high (maximised) since the bio availability of lysine in maize

DDGS is very low. A high usage of maize DDGS will increase the crude protein content of

feeds and make higher quality protein sources more attractive.

In layer feeds the usage of Hipro soybean meal is only 7-9% because next to 10% maize

DDGS, 2.5% rapeseed expellers and maize gluten meal also 0-8% toasted soy beans are

used. For October-December maize gluten or full fat soy beans are not used in layer feeds

and the Hipro soybean meal usage is 12-17%. In the broiler finisher toasted soybeans are

virtually always interesting. Toasted soybeans are priced attractive to Hipro soybean meal

(€ 47.10) and soy oil (€ 73.20). The price of toasted beans is at € 47.00 lower than the

formula: 75% Hipro + 7.5% maize + 17.5% SBO = 47.10*0.75 + 21.00*0.075 +

73.20*0.175 = € 49.71. Because fat addition is maximised 13% toasted soybeans are

added to broiler finisher feeds in August-September and 0-8% to layer feeds.


Hipro soybean meal is therefore still an attractive protein source next to rapeseed

expellers, maize gluten and maize DDGS in poultry feeds. The usage rate of Hipro

soybean meal is:

1. 9-11% in the starter and 0-4% in the pig grower/finisher and 0-3% in lactating sow feeds

2. 7-17% in the layer feeds 3. 11% in broiler finisher, (additionally toasted soybeans (13%) are used as a protein

and fat source (soy oil usage 0.50%).

Therefore poultry feeds are the most interesting for soybean meal marketing.

Value differences (€/100 kg) of soybean meal of differing qualities in the Netherlands

Table 2 lists the difference in value of the three origins compared to the generic product

offered on the Dutch market for the different periods.

Table 2. Absolute differences in value of different soybean meals compared to generic product



Swine Gr/Fin. -2.59 -4.00 -3.13 -1.25 +1.15 -1.01 -0.45 +1.17

Layer Phase2. +0.50 -0.68 +0.33 +0.41 +2.15 -0.54 +0.31 +0.58

Broiler Finisher +0.25 -0.96 +0.47 +1.54 +3.21 -0.51 +0.80 +1.46

As noted the approximate analyses and the nutrient values of the different qualities

soybean meal have been obtained from Prof. Mateos. Analyses of the current harvest

period of the different origins are used. The matrix values of the generic CVB Hipro

soybean meal and the different origins are listed in table 1 of the Appendix. The crude

protein content of CVB Hipro soybean meal is on average 46.8% but varies considerable.

The (digestible) amino acid content as well as the energy content varies with the protein

content and protein digestibility. Most energy values of the generic Hipro soybean meal

are lower than those of Mateos (consequently the different origins are compared among

each other). The crude protein content of the Brazilian 46.9% is comparable to the

generic CVB Hipro soybean meal. The digestible amino acid content for both pigs and

poultry of the generic CVB Hipro soybean meal is close to the U.S. 46.2% crude protein

quality of Mateos, although the protein content is lower. Resultantly the higher NE and

AME content of the soybean meal from Argentina and Brazil is compensated by the lower

digestible amino acid quality compared to the generic Hipro soybean meal. Soybean meal

from the U.S. has an equal or higher nutrient values for digestible amino acids compared

to the generic CVB Hipro soybean meal and the highest energy content of all soybean

meal products. This is reflected in the shadow prices in table 2 (see also table 11 ‘price

effect of variation in nutrient value’).

In the current market the shadow price of the generic CVB Hipro soybean meal is € 2.59

lower than the market price for the swine grower and only € 0.50 higher in the layer and


€ 0.25 in the broiler finisher. Lopro soybean meal can be used in swine and layer feeds

but in general the price difference is not low enough to compensate for the lower protein

and energy content. The value of soybean meal from Brazil is higher than that of

Argentina for feeds of all species but soybean meal from the U.S. has the highest value.

In pig feeds the additional value of U.S. soybean meal is highest over that from Argentina

and Brazil. In the October-December period the additional value of higher quality Brazilian

and U.S. soybean meal decreases in all feeds, because the soybean meal price

decreases as well as the price of most other feedstuffs. The absolute value decreases

significantly more than the added value (see table 1). In broiler feeds where the usage of

soybean meal and additional fats & oils is highest, the value of high quality protein

sources decrease more rapidly. The value of high quality soybean meal from the U.S. is

highest in swine and broiler feed formulations, again showing the increased value of a

higher energy content. The energy and digestible amino acid levels for the different

qualities soybean meal are given in table 1 of the Appendix.

Table 3. Relative differences in value of the different soybean meals compared to the Argentinean product



Swine Gr/Fin. N/A 0 +0.87 +2.75 N/A 0 +0.56 +2.18

Layer Phase2. N/A 0 +1.01 +1.43 N/A 0 +0.85 +1.12

Broiler Finisher N/A 0 +1.09 +2.50 N/A 0 +1.31 +1.97

From this table can be concluded:

1. The increase of the Hipro soybean meal price (compared to the July-September period

in report no 6) has resulted in a significant decrease in the usage of soybean meal in

pig and sow feeds but the usage remained high in poultry feeds. In all feeds, including

swine feeds, the added value of higher quality Hipro soybean meal increased. When

the usage of other alternative protein sources is increased the value of Hipro soybean

meal as a digestible amino acid source is increased.

2. Lopro soybean meal is unattractive compared to Hipro soybean meal for all feeds.

3. The highest added value of high(er) quality soybean meal is obtained in pig and broiler

feeds. The usage rate of soybean meal is still high in layer and broiler feeds.

4. U.S. soybean meal is € 2.18-2.75/100 kg more worth than Argentinean soybean meal

in swine grower feeds, € 1.12-1.43 in layer feeds and € 1.90-2.50 in broiler feeds.

5. U.S. soybean meal is € 1.62-1.88/100 kg worth more than Brazilian soybean meal in

swine grower feeds, € 0.27-0.42 in layer feeds and € 0.66-1.41 in broiler feeds. The

additional value of U.S. soybean meal is highest over that from Brazil in pig feeds in

both periods.

3.1 Shadow prices soybean meal by origin, Spain3.1 Shadow prices soybean meal by origin, Spain3.1 Shadow prices soybean meal by origin, Spain3.1 Shadow prices soybean meal by origin, Spain

Feedstuff prices of week 31 were obtained from the Cambra Oficial de Comerc Industria i

Navegacio de Barcelona. Feedstuff prices showed a mixed pattern compared to report no


6/2013, some have decreased and others have increased. As elsewhere soybean meal

prices have increased, while other protein rich feedstuffs have decreased in price. As a

whole feed costs are down for swine and layer feeds but increased for broiler feeds. The

feed composition consists mainly of whole grains like maize, wheat and rye with soybean

meal, rapeseed meal, peas and toasted soybeans as protein sources and animal fat,

palm oil fatty acids and soy oil as additional energy sources. Prices for by-products like

maize gluten feed meal and maize DDGS are not listed, although the latter is widely

used.

Rye (€ 18.00) and wheat (€ 20.20) are the most attractive priced grain for pig feeds,

barley (€ 18.40) and maize is at € 22.80 are too expansive. For layer feeds wheat is

attractive since the spread between maize and wheat has increased to € 2.60. Maize is

attractive for broiler feeds but since maize usage is restricted, wheat is additionally used

in broiler feeds. Likewise rye usage is restricted in pig feeds to 30%, so that wheat is used

additionally. In layer feeds maize is used at the minimum amount (25%).

Peas are very attractive for pig and broiler feeds, the usage is maximised in both feeds at

15%. Wheat bran is attractive in both pig and layer feeds, but the usage is higher in pig

feeds. The shadow price is € 16.25 in pig and 16.09 in layer feeds at a price of € 16.00).

Additionally palmkernel meal is attractive for pig feeds.

The shadow price of milo corn is € 17.29 in layer feeds benchmarked at the wheat price

of € 20.20. The shadow price in pig feeds for maize is € 19.39, triticale € 20.02 and

barley € 17.64. All grain prices are in comparison to wheat (at € 20.20). The shadow

prices of wheat and triticale are higher than those of maize in pig feeds because of the

high prices of soybean meal and the other protein rich feedstuffs. In broiler feeds the

shadow price for milo corn at € 21.03 is more comparable to the maize price because

maize usage is maximized in broiler feeds and both maize and milo corn are low in

protein. In swine feeds the usage of maize and milo corn are maximised because of

bacon quality (max. C18:2) and the tannin content of milo corn. Wheat is now the major

grain used in layer feeds. Alfalfa meal is used in layer feeds next to a 25% maize usage

for egg yolk colouring. Wheat is used in broiler feeds because maize usage is maximised

too (white meat).

Soybean meal is significantly decreased in pig and broiler feeds due to the high price. It is

however still the most important protein source in poultry feeds. Maize (or wheat) DDGS

is not offered. Maize DDGS is in general of most interest in sow feeds but is also used in

pig and poultry feeds to a limited extend. The shadow price for maize DDGS is € 34.63 in

pig grower/finisher feeds. Since maize is not used it does not restrict the usage rate and

value of maize DDGS (due to the max. C18:2 content) in the pig feed. In layer phase 2 the

shadow price of maize DDGS is € 31.93 and € 31.07 in broiler finisher feeds (at a usage

rate of 4-5%) Maize DDGS price will however more likely be an attractive feedstuff for pig

and sow feeds than broiler feeds in Spain, inclusion rates in general are highest in sow

and layer feeds (in Poland the price for maize DDGS is € 24.70 and in the Netherlands €


23.50, all well below the shadow price in Spain).

A price for rapeseed expellers was not available. Rapeseed meal is attractive for layer

(shadow price € 34.43), broiler (shadow price € 30.25) and pig feeds (shadow price €

32.94) at a price of € 30.00. The usage of rapeseed meal is maximised in all feeds.

Rapeseed meal is expansive in Spain compared to € 20.95 in Poland and € 23.00 in the

Netherlands. Peas are therefore attractive in Spain, the usage rate is 15% in both broiler

and pig feeds. In layer feeds the shadow price is € 26.18 at a market price of € 26.80.

Hipro sunflower seed meal (34% CProt) is unattractive in pig and layer feeds. In layer the

shadow price in layer feeds is € 29.20 at a market price of € 31.00. For the Lopro quality

the shadow price is only € 21.48. The price of Hipro sunflower seed meal in Romania is

only € 27.65. On the other hand the Lopro sunflower seed meal is at € 22.80 in the

Netherlands not attractive too.

The barley price in Spain is slightly lower (-€ 0.10) than in the Netherlands but wheat (+€

1.70), rye (+€ 1.60) and maize are (+€ 1.80) are more expansive. Milo corn is not

available in Northern and in Eastern Europe availability is limited. In Spain it can be

priced very attractive but no prices were available. Plant proteins are expansive in Spain,

Hipro soybean meal has increased (+€ 3.20) compared to report no 6/2013 but less

than in the Netherlands. Hipro soybean meal is still € 3.60 more expansive and rapeseed

meal € 7.00, than in the Netherlands. Fish meal on the other hand is much more

attractive for poultry feeds in Spain (€ 83.50 versus € 131.50 in the Netherlands). Palm

oil is available for € 71.50, while in the Netherlands it is € 62.00. Palm oil fatty acid

mixtures are in Spain only € 1.00 cheaper than palm oil, while in the Netherlands the

difference € 9.50 is!

Consequently pig and layer feed costs are 12% higher in Spain than the Netherlands, and

broiler feeds 10%. Maize DDGS usage however, can reduce feed costs in swine and layer

feeds in Spain significantly.

In table 4 the shadow prices of the different qualities soybean meal are given in feed

formulation for different species.

Table 4. Shadow prices of soybean meal by origin, Spain

Period Week 31, SBM € 50.70

Origin CVB Arg. Brazil U.S.

Swine Grower 50.85 50.05 51.18 51.52

Layer Mid/Normal 53.39 50.02 51.10 51.05

Broiler Finisher 50.81 49.92 51.53 51.44

The shadow prices for the generic CVB Hipro soybean meal are higher in Spain than the

Netherlands for pig and poultry feeds due to the higher SBM prices (NL € 47.10). The


shadow prices for the Hipro soybean meal is highest in swine and broiler feeds, currently

the shadow prices are quite similar for all feeds. The value of higher quality protein

sources like U.S. soybean meal increases when poorer quality protein sources are used

(specifically maize DDGS) as is common in pig and layer feeds. The increase in the prices

of the protein rich feedstuffs, increases the value of high quality soybean meal in all

feeds. However the usage of soybean meal in Spain has been reduced in all feeds,

specifically in the pig and broilers feeds. Alternative and cheaper protein sources like

rapeseed meal (pig and layer feeds), peas and cheap fish meal (poultry feeds) replace

soybean meal. A high usage of maize DDGS in layer feeds potentially affects soybean

meal usage more.

The margin between the shadow price and the actual market price of (the generic)

soybean meal is highest in layer (€ 2.69) feeds, followed by swine (€ 0.15) and broiler (€

0.11) feeds. Compared to report no 6/2013 the spread has decreased significantly, due

to the high soybean meal prices. The added value of soybean meal, however, has

increased too in all feeds. This shows that for poultry feeds although the usage rate of

Hipro soybean meal has decreased, the value of soybean meal has increased is and the

usage is less price sensitive. Usage of fish meal (although the protein quality is good)

increases the value of high quality soybean meal in poultry feeds. Maize DDGS can be

attractive in (high energy) sow and layer feeds and to a lesser extend in pig feeds. When

available the maximum allowable amount will be used in all sow feeds (when formulated

with a NE-sow). Maize DDGS decreases soybean meal usage somewhat but increases the

shadow price of (high quality) soybean meal. In broiler feeds toasted soybeans are

relatively attractive (because of high Hipro soybean meal and plant oil prices), reducing

the Hipro soybean meal usage. In the lower energy layer feeds toasted soybeans are not

attractive.

The usage rate of soybean meal is:

1. 0.0% in the grower/finisher pig feeds (without maize DDGS usage)

2. 13.1% in layer feeds (without maize DDGS usage)

3. 6.7% in the broiler grower/finisher feeds* * Additionally 10.2% toasted soybeans are used as a protein and fat source in broiler

feeds.

Value differences (€/100 kg) of soybean meal of differing qualities in Spain


Period Week 31, SBM € 50.70


Swine Grower N/A 0 +1.13 +1.47 Layer Mid/Normal N/A 0 +1.08 +1.03 Broiler Finisher N/A 0 +1.61 +1.52



1. The cost of Hipro soybean meal is higher in Spain than the Netherlands but the price

even increased less compared to last month (report no. 6/2013).

2. At this high soybean meal price, soybean meal becomes unattractive for pig feeds.

However for poultry feeds usage remains to be high.

3. The added value of all high(er) qualities soybean in Spain has increased with the higher soybean meal price. The added value of high(er) quality soybean meal is

highest in broiler and pig feeds. A high(er) usage of alternate plant (especially maize

DDGS usage) will increase the value of U.S. soybean meal.

4. Soybean meal from the U.S. is € 1.47/100 kg more worth than Argentinean soybean

meal in swine grower feeds, € 1.03 in layer feeds and € 1.52 in broiler feeds.

5. Soybean meal from the U.S. is € 0.34/100 kg worth more than Brazilian soybean

meal in swine grower feeds, but € 0.05 less in layer and € 0.09 in broiler feeds.

3.2 Shadow prices soybean meal by origin, Poland3.2 Shadow prices soybean meal by origin, Poland3.2 Shadow prices soybean meal by origin, Poland3.2 Shadow prices soybean meal by origin, Poland

Feed costs, based on feedstuff prices of week 31, for all feeds have decreased in Poland

compared to report no. 6/2012. All major feedstuff prices decreased in price last month,

except soybean meal. It is remarkable that the Hipro soybean meal price increased only €

0.35/100 kg, which is substantially less than elsewhere. The trend of decreasing

feedstuff prices for the fall period (September-December) is most obvious in the lower

grain, grain by-products and locally produced protein rich feedstuffs. For the long term the

prices of the fats & oils prices are more stable than those of the grains, which will

continue to decrease as the harvest in North America is coming on the market.

The grains prices have decreased as follows: maize € 18.35 (was € 19.65), wheat €

15.30 (was € 20.55), triticale € 13.20 (was € 19.40) and barley € 14.10 (was € 18.00).

Wheat bran (-€ 1.15) decreased less in price than expected, based on the decreases in

the grain prices, but considerable more than beet pulp (-€ 0.35). Hipro soybean meal has

increased so little in price that it is the lowest of all regions. Also in Spain Hipro soybean

meal increased less in price (+€ 3.20) than in the Netherlands (+ € 4.30) compared to

previous month. In Romania it increased the most (+€ 15.65). The October-December

price for the Netherlands did not increase and is still € 7.60 below the current price, so

the price increases are mostly due to short term availability. The price of Hipro soybean

meal is in Poland is € 4.50 lower than in the Netherlands and € 15.85 than in Romania.

Rapeseed meal and expellers decreased significantly in price, despite the high soybean

meal prices. Rapeseed meal decreased € 10.00 in price and is now € 2.05 lower than in

the Netherlands, Rapeseed expellers decreased even more in price (-€ 11.50) and are

now € 1.25 more than rapeseed meal in Poland, compared to previous periods this is a

considerable price adjustment (was € 2.75 difference). Animal fat and soy oil have both

changed little in price, making rapeseed expellers very attractive as fat source. The maize


DDGS price changed little (-€ 0.70) to € 24.70, which is € 0.80 higher lower than in the

Netherlands and € 2.20 than in Romania. This still makes Maize DDGS next to rapeseed

products very attractive in Poland compared to the Hipro soybean meal.

Feed formulations are mainly based on maize + wheat and soybean meal + rapeseed

expellers and maize DDGS (layers), wheat + maize and soybean meal + rapeseed

expellers + maize DDGS (broilers) and barley + triticale and soybean meal + rapeseed

expellers + maize DDGS (swine feeds). The Hipro soybean meal usage has decreased the

most in pig and broiler feeds due to higher price but remained the same in layer feeds.

Rapeseed expellers are very attractive as an ‘alternative’ protein sources for all feeds and

used to the maximum, even though maize DDGS is also used. Rapeseed meal is less

attractive for all feeds. In layer feeds both maize DDGS and rapeseed expellers are used

to the maximum. In pig and broiler feeds the usage of maize DDGS is relatively low. The

prices of grains have decreased more rapidly than those of animal fat in Poland, which

makes high energy feedstuffs attractive. The price of animal fat is € 67.05 in Poland and

€ 74.50 in Spain. Palm oil fatty acids are the cheapest fat source in the Netherlands at €

59.80, but in Poland no price is available (in Spain the price is € 70.50). Consequently

the protein and energy rich maize DDGS and rapeseed expellers are more attractive than

rapeseed meal for all feeds. The shadow price of rapeseed meal is € 19.03 in the swine

grower/finisher, € 14.64 in layer and € 20.60 in broiler feeds at a market price of

€ 20.95. The value of rapeseed expellers is therefore f.i. € 7.56 higher than that of

rapeseed meal for layer feeds.

Hipro soybean meal is very expansive but is nevertheless the major protein source in

poultry. In pig feeds usage is reduced by 50%. Maize DDGS usage is maximised in layer

feeds at 10% and broiler feeds at a 5% inclusion rate. The maximum usage rate of maize

DDGS is highest in pig (up to 10%), sow (15%) and layer feeds (10%). But the usage is

only maximised in layer feeds. Both rapeseed products and maize DDGS can only be used

to a limited extend in animal feeds, but can nevertheless replace a significant amount of

soybean meal. When, as presently, both animal fat and maize DDGS are attractive in

swine feeds the C18:2 content in the pig finisher feed will be maximized for bacon quality

so that maize DDGS usage is not maximised. The shadow price of maize DDGS is

€ 24.95 in the pig grower/finisher pig feeds, € 24.80 in the layer feeds and € 24.97 in

the broiler finisher feed. In the white meat broiler feeds the maize (10%) and maize

DDGS inclusion is restricted (like in Spain and the Netherlands).

Wheat bran at a market price of only € 12.95 is still unattractive for pig and layer feeds,

since so many other alternative feedstuffs are used already. In layer feeds wheat bran

competes with maize DDGS. In sow feeds wheat bran can be used as a fNSP

(fermentable complex carbohydrates) source resulting in higher inclusion rates. In pig

feeds the shadow price of wheat bran is € 12.69 and in layer feeds € 9.38 (at a 1%

usage). Beet pulp is attractive for pig feeds. Because of the extensive use of these by-


products some additional fats and oils are used in pig and layer feeds.

The wheat price has decreased € 5.25 in Poland, while in the Netherlands the wheat

price decreased € 1.90 for August-September. The wheat price in Poland is € 15.30,

€ 14.60 in Romania, € 18.50 in the Netherlands and € 20.20 in Spain. The maize price is

at € 18.35 very low compared to the Netherlands (€ 21.00) and Spain (€ 22.80). In

Romania it is still € 1.05 lower than in Poland (€ 17.30). Barley is very cheap in Poland (€

14.10), compared to Romania (€ 15.75), the Netherlands (€ 18.50) and Spain (€ 18.40).

Triticale is cheapest of all grains (€ 13.20 in Poland versus € 14.60 in Romania and €

18.00 in the Netherlands). Grain by products prices like wheat bran (€ 12.95 versus

€ 15.00 in the Netherlands and € 13.50 in Romania) are also priced low.

In summary grain, grain by-products and rapeseed products are least expansive in

Eastern Europe. Fat sources and other protein sources are more compatible.

The finished feed cost for swine feeds in Poland are 9% lower than in the Netherlands,

layer feeds 5% and broiler feeds 6%. The relative high soybean meal along with the high

fat & oil prices offset the lower grain and rapeseed products prices in poultry feeds.

Compared to Romania the ingredients costs for swine feeds are 21% lower, those of layer

feeds 14% and broiler feeds 16%.

Table 6. Shadow prices of soybean meal by origin, Poland

Period Market price week 31 (SBM € 42.60)


Swine Gr/Fin. 50.84 41.16 42.00 43.74 Layer Phase2. 47.10 41.94 43.00 43.17 Broiler Finisher 43.35 41.93 43.41 43.81

Both in pig and broiler feeds the Hipro soybean meal usage has decreased, due to the

relative high prices of the Hipro soybean meal in combination with the low prices of the

rapeseed products and maize DDGS. In general the Hipro soybean meal usage is low in

swine feeds because of the high usage of protein rich grains, rapeseed products, wheat

bran and also maize DDGS and the lower crude protein (digestible amino acids) content

but nevertheless reduced further. Maize DDGS can only replace a limited amount of Hipro

soybean meal since the amino acid quality is rather poor. Rapeseed expellers impacts

soybean meal usage in all feeds. Because rapeseed meal or expellers and wheat bran

usage is limited in layer and broiler feeds, Hipro soybean meal usage remains high in

poultry feeds. Rapeseed products can only be used to a limited amount in layer feeds to

reduce the risk of off flavour eggs. All pig and poultry feeds are formulated with the

minimum crude protein requirement (15% pig-, 16%-layer and 20%-broiler feed). This

shows the still high cost of protein supplementation and the extra value of concentrated

high quality protein sources.

The value of the, generic, CVB soybean meal has increased in pig and poultry feeds

compared to report 6/2013 (in line with the price increase of Hipro soybean meal).


Because Hipro soybean meal usage is lowest in pig feeds, the value of the, generic, CVB

soybean meal is highest in these feeds. The spread between the shadow price and the

actual market price of soybean meal is lowest in broiler feeds because soybean meal

usage is under the most pressure here. The value of high quality soybean meal however

is high in broiler feeds due to the higher requirements for digestible amino acids and

energy.

In all feeds the value of higher quality Hipro soybean meal has increased compared to

report 6/2013 due to the increased usage of ‘alternate proteins’ as a consequence of

the higher Hipro soybean meal price. The relative high fat and Hipro soybean meal price

in Poland keeps the value of higher quality Hipro soybean meal higher in broiler than

layer feeds because of the high (digestible energy and amino acids) concentration in the

broiler feeds.


1. 4% in the pig grower/finisher feeds. 2. 15% in layer feeds. 3. 12% in the broiler feeds (along with 15% toasted soybeans).

Value differences (€/100 kg) of soybean meal of differing qualities in Poland

As stated in 3.0 the value differences of soybean meals of different qualities by using the

matrix values obtained from Prof Mateos should be determined by comparing the 3

different soybean qualities among each other, see table below.




Swine Gr/Fin. N/A 0 +0.84 +2.58 Layer Phase2. N/A 0 +1.06 +1.23 Broiler Finisher N/A 0 +1.48 +1.88


1. Feed costs are low in Poland and Eastern Europe mainly due to low grain, grain by-

products and rapeseed products prices.

2. The highest added value of high(er) quality soybean meal is obtained in pig and broiler

feeds. Broiler feeds are most concentrated in digestible amino acids and energy.

3. The added value of U.S. soybean meal is higher in Poland than in Spain for pig, layer

and broiler feeds despite a lower Hipro soybean meal market price.

4. Soybean meal from the U.S. is € 2.58/100 kg more worth than Argentinean soybean

meal in swine feeds, € 1.23 in layer feeds and € 1.88 in broiler feeds.




For further information please contact Mr. Jerzy Wiesław Kosieradzki, USSEC EU Regional

Consultant. Mobile: +48 608 089 443 Email: [email protected]

3.3.3.3.3333 Shadow prices soybean meal by origin, Romania Shadow prices soybean meal by origin, Romania Shadow prices soybean meal by origin, Romania Shadow prices soybean meal by origin, Romania, Bulgaria, Serbia and Macedonia, Bulgaria, Serbia and Macedonia, Bulgaria, Serbia and Macedonia, Bulgaria, Serbia and Macedonia

Feedstuff prices for Romania were obtained in week 31. They tend to be similar to the

prices in Bulgaria. Feedstuff prices in general are quite comparable between these

different countries with the exception of Hipro soybean meal which tends to be more

expansive in Serbia and Macedonia than Romania and Bulgaria. The comparisons below

are based on the Romanian feedstuff prices but the general conclusions are applicable

for the South Eastern European region including Serbia and Macedonia.

The main feedstuffs used in the feed formulations are maize + wheat+ triticale with

soybean meal and maize DDGS as protein sources. Prices for milo corn and rapeseed

meal were not available. The grain prices like maize, wheat and barley have decreased in

Romania along with the prices of the by-products since the last report, while the soybean

meal price in Romania has increased significantly. The soybean meal prices were

relatively low in Romania (comparable to Poland and the Netherlands) and are now the

highest of all regions.

The wheat (-€ 0.70) and maize (€ 1.05) prices are lower in Romania than in Poland,

triticale (+€ 1.40) and barley (+€ 1.65) are more expansive. All grains are more expansive

in the Netherlands and Spain are in turn higher than in Poland (and therefore Romania).

A price for milo corn was not available. Milo corn is sometimes available in Spain but

mostly for not such an attractive price as in Romania.

In all poultry feeds maize is very attractive grain (shadow price € 20.02 in layer and €

25.03 in broiler feeds but € 18.12 in swine feeds) due to the high sunflowerseed oil

prices. Wheat (shadow price € 16.14) has become attractive for layer feeds due to the

high soybean meal prices Triticale and wheat are most attractive in swine feeds. The

shadow price of milo corn is € 25.43 in swine feeds, € 9.43 in layer and € 13.88 in

broiler feeds, benchmarked at the maize price of € 17.30. As long as the tannin content

is low in milo corn it can substitute most of the other grains. The value of milo corn is

highest in pig feeds because maize usage is restricted here by the max C18:2 content.

The price of Hipro soybean meal in Romania is at € 58.45 very high. It is € 7.75 more

than in Spain, € 11.35 more than in the Netherlands and € 15.85 more expansive than

in Poland. The price of Hipro soybean meal price in Romania has increased € 15.65 since

report no 6/2013, mainly due to shortage. The prices are expected to decline as more

soybean meal becomes available and specifically as the new US harvest comes on the

market. Considering the low grain prices and the (relatively) low prices of the ‘alternative

protein sources’, Hipro soybean meal is very expensive in Romania. Maize DDGS is

offered for € 22.50, while the price is € 24.70 in Poland and € 23.50 in the Netherlands.


Maize DDGS is used in all feeds including the broiler feed. The shadow price of maize

DDGS in swine feeds is € 30.36, € 24.53 in layer and € 26.68 in broiler feeds.

A price for rapeseed meal was not available. It is offered for € 23.00 in the Netherlands

but only € 20.95 in Poland. Rapeseed expellers meal usage is in general high in pig feeds

but not in poultry feeds. Sunflower seed oil is very expansive. Maize DDGS is attractive in

swine and poultry feeds, so the usage of additional oil is very limited. High oil prices

decrease the value and usage of feedstuffs with a low energy content like rapeseed meal.

The shadow price for rapeseed expellers is therefore € 32.82 in swine, and € 46.19 in

layer feeds compared to rapeseed meal € 25.92 in swine, and € 28.26 in layer feeds. In

layer feeds sunflower seed oil is added in swine feeds not. Peas are attractive for pig

feeds (shadow price € 41.40 at a market price of € 31.50) replacing soybean meal.

The sunflower seed meal price is low in Romania, but it is still not attractive. The shadow

price is € 1.50 for the Lopro and € 16.00 for the Hipro in layer feeds, while the market

price € 27.65 is. Significant amounts of Lopro sunflower seed meal can be used in swine

and layer feeds (protein quality better than maize DDGS), however the very high

sunflower seed oil prices (€ 94.40 versus € 59.80 for palm oil fatty acids in the

Netherlands) make these low energy feedstuffs less attractive, despite the low price per

unit of protein. Toasted soybeans can be used next to Hipro soybean meal as an

additional fat source for broiler feeds, however since the price is the same as Hipro they

are hardly attractive. In the same way Lopro soybean meal has also a much lower value

than Hipro soybean meal in poultry feeds (shadow price € 49.75 in layer feeds versus

market price € 53.95 and Hipro € 58.45), but not in pig feeds. Hipro soybean meal is

therefore the most attractive protein source next to maize DDGS.

Altogether the feed costs of the pig feeds are 7% higher in Romania than in the

Netherlands, 8% of layer and 9% of broiler feeds. Compared to Poland pig feeds costs in

Romania are 21% higher, layer feeds 14% and broiler feeds 16%. The lower grain prices

have decreased feed costs compared to last month, the higher soybean meal prices

offset part of it.

Table 8. Shadow prices of soybean meal by origin, South Eastern Europe (Based on Romanian feedstuff

prices)



Swine Gr/Fin. 57.38 59.22 60.00 62.19 Layer Phase2. 59.29 57.76 59.74 60.17 Broiler Finisher 59.07 57.76 60.53 64.15

Hipro soybean meal is used only used in poultry feeds, in pig feeds Lopro soybean meal is

more attractive. The shadow price of the generic soybean meal is € 57.38 in pig feeds

and € 59.07-59.29 in poultry feeds. Soybean meal usage is highest in poultry feeds. The

spread between the shadow price of the generic soybean meal and the market price has

decreased compared to report nr 6 (because of increased soybean meal price). The


spread is higher for layer (€ 0.84) than broiler feeds (€ 0.84) and negative for swine

feeds (-€ 1.07). This shows that when alternative protein sources can replace part of the

Hipro soybean meal, the value of soybean meal is decreased although the usage rate can

still be high (poultry feeds). On the other hand in swine feeds the usage of soybean meal

is low but the added value of high(er) quality soybean meal is high.


1. 4% Lopro soybean meal in pig feeds (Grower/finisher)

2. 19% Hipro soybean meal in the layer (Phase 2)

3. 25% Hipro soybean meal in the broiler finisher*

* Additionally 5.0% sunflower seed oil is used as fat sources and 2% toasted soybeans.

Value differences (€/100 kg) of SBM of differing qualities in South Eastern Europe

(Based on Romanian feedstuff prices)

As stated in 3.0 the value differences of soybean meals of different qualities by using the matrix values obtained from Prof Mateos should be determined by comparing the different soybean qualities among each other, see table 9.




Swine Gr/Fin. N/A 0 +0.78 +2.97 Layer Phase2. N/A 0 +1.98 +2.41 Broiler Finisher N/A 0 +2.77 +6.39

Since the cost of fat addition is high (and the usage of high energy by-products like maize

DDGS limited), the added value of high quality soybean meal with more energy is high in

all feeds but specifically in broiler feeds (compare the € 6.39 added value of US soybean

meal over Argentinean origin for broilers to € 2.50 in the Netherlands and € 1.88 in

Poland). Feeds for all species are formulated with the minimum crude protein

requirement (15 pigs, 16%-layer and 20%-broiler). This shows the high cost of protein

supplementation and the extra value of concentrated high quality protein sources. The

high usage rate in poultry feeds also shows that soy protein is an attractive feedstuff in

the form of Hipro soybean meal in South Eastern Europe.


1. Soybean meal prices have increased substantially in Romania and is highest of all

regions. Grain prices however have decreased, decreasing feed costs for all

species.

2. The added value of high(er) quality soybean meal is high in pig and broiler feeds

because alternative protein rich feedstuffs increase the value of Hipro soybean

meal and plant oil are expansive. Hipro soybean meal is more attractive in poultry


feeds and Lopro soybean meal in pig feeds. In poultry feeds the usage of Hipro

soybean meal is high.

3. The highest usage and added value of high(er) quality soybean meal is obtained in

poultry feeds, specifically broiler feeds. The latter is highest of all regions.

4. Soybean meal from the U.S. is € 2.97 worth more than Argentinean soybean meal

in swine grower feeds, € 2.41 in layer feeds and € 6.39 in broiler feeds.



For further information please contact Mr. Iani Adrian Chihaia, Romania / USSEC South

Eastern European Consultant. Email: [email protected]

In conclusion in all regions, soybean meal from the U.S. has a higher value than soybean

meal from Argentina or Brazil. Hipro from the U.S. product has the highest value,

specifically in broiler feeds. These value differences are a result of differences in the

protein content as well as differences in the digestibility of amino acids and organic

matter (energy content). Usage rate of soybean meal is higher in poultry feeds than swine

feeds.


4. 4. 4. 4. Analyses of value differences (Analyses of value differences (Analyses of value differences (Analyses of value differences (€/100 kg€/100 kg€/100 kg€/100 kg) of ) of ) of ) of soybean mealsoybean mealsoybean mealsoybean meal of differing qualities of differing qualities of differing qualities of differing qualities

As can be seen from the matrices (see table 1 Appendix) the different quality soybean

meals differ in nutritional value causing these differences in shadow prices, the main

differences are:

1. Protein content. This varies from 46.0% (Arg.) to 46.9% (Brazil).

2. Energy content. U.S. soybean meal has a 2.6% higher NE (swine), 3.0% higher AME-

layer and 3.6% higher AME-broiler than soybean meal from Argentina. Brazilian

soybean meal is 2.1% higher in NE, 2.1% AME-layer and 2.1% AME-broiler than

soybean meal from Argentina.

3. Amino acid profile, amino acid digestibility and digestible phosphorus. U.S. soybean

meal has f.i. a 7.9% higher AID lysine (swine) content than soybean meal from

Argentina and the TD lysine (poultry) content is 9.2% higher. Brazilian soybean meal

has a 2.5% higher AID lysine (swine) content than soybean meal from Argentina and

the TD lysine (poultry) content is 2.9% higher.

The value difference caused by each factor is given in table below where a comparison is

made to Brazilian soybean meal for each species. This analysis is based on the shadow

prices in the Netherlands (Hipro soybean meal € 47.10) for the August-September period

of the different qualities soybean meal (see table 1 chapter 3). The results are in general

applicable to all regions.

Table 10. Differences in value (€/100 kg) of the different soybean meals caused by the chemical and nutrient differences compared to the Brazilian and Argentinean product

Swine Layer Broiler

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Argent.

vs Brazil

U.S.

vs Brazil

U.S.

vs Arg.

Absolute differences in nutrient value

Protein% -0.9 -0.7 +0.2 -0.9 -0.7 +0.2 -0.9 -0.7 +0.2

Energy cal -40 +10 +50 -48 +20 +68 -39 +30 +69

Value (€/100 kg) differences (compare to table 1)

Protein € -0.59 -0.48 +0.14 -0.89 -0.70 +0.20 -1.02 -0.81 +0.23

Energy € -0.48 +0.12 +0.60 -0.40 +0.17 +0.57 -0.64 +0.49 +1.12

Dig. AA € +0.20 +2.24 +2.01 +0.28 +0.61 +0.32 +0.25 +1.39 +1.15

Total € -0.87 +1.88 +2.75 -1.01 +0.08 +1.09 -1.43 +1.07 +2.50

A difference of 0.9% crude protein with the higher soybean meal prices adds or

decreases € 0.59/100 kg to the value of Hipro soybean meal in swine feeds (was € 0.53

in week 27), € 0.89 in layer feeds (was € 0.75) and € 1.02 in broiler feeds (was € 0.90).

The value of protein in soybean meal protein increased the most in poultry feeds due to

the higher Hipro soybean meal price (+ € 4.30/100 kg) compared to week 27.

In the same way 50 kcal NE adds € 0.60/100 kg to the value of Hipro soybean meal in

swine feeds, 68 kcal ME € 0.57 in layer feeds and 69 kcal € 1.12 in broiler feeds. In

layer and broiler feeds the value due to energy differences has decreased (compared to


week 27), due to the lower grain and grain by-product prices.

Consequently the value differences due to protein content are larger in poultry than

swine feeds but largest in broiler feeds. Differences in the amino acid pattern and

digestibility (along with the digestible phosphorus content) create an added value of €

2.01-2.24 in swine feeds for U.S. soybean meal over that from Argentina or Brazil, €

0.32-0.61 in layer feeds and € 1.15-1.39 in broiler feeds. These value differences are

largest in swine and broiler feeds. In conclusion next to the protein content, the

digestible energy, amino acid and phosphorus contribute to the value of soybean meal.

From table 10 above can further be concluded:

1. Differences in the protein content contribute significantly to the differences in the value (shadow price) of soybean meal. However this explains only partly the

differences in the value.

2. The value (shadow price) differences due to energy are largest in broiler feeds. The U.S. origin demands a higher value of € 0.60 over Argentinean soybean meal due to a

50 kcal ME difference in swine feeds, a € 0.57 difference in layer feeds for a 68 kcal

ME difference and a € 1.12/100kg for a 69 kcal ME difference in broiler feeds.

3. The increased digestibility of amino acids (and phosphorus) has a large impact on the

added value of U.S. soybean meal for swine feeds versus the Brazilian product and

adds € 2.24.

Variation in nutrient values

The effect of variation in the nutrient value (4-5%) of soybean meal on the value (market

price € 47.10/100 kg in the Netherlands for August-September) is given in the following

table.

Table 11. Price effect of variation in nutrient value

Swine Layer Broiler

+/- 100 cal 1.19 0.85 1.63

+/- 4% dig AA 1.22 0.14 0.51

+/- 100 Cal and 4% dig AA 2.42 0.99 2.14

+/- 0.1 g/kg dig P 0.00 0.04 0.04

Variation in the energy content has the largest effect on the value of soybean meal in

swine and broiler feeds. A variation of +/- 100 cal has a € 1.19/100 kg effect on the

Hipro soybean meal value in swine while this is € 1.63 in broiler and € 0.85 in layer

feeds. Variation in the AID (or SID) amino acid content has the largest impact in swine

and broiler feeds. A variation of 4% in digestible amino acids increases the value of Hipro

soybean meal with € 1.22 in swine, € 0.51 in broiler but only € 0.14 in layer feeds. The

effects of energy and digestible amino acids on the value of soybean meal are additive.


Digestible phosphorus has the highest value in poultry feeds.

In summary the higher economical and nutritional value of soybean meal from U.S. origin

over soybean meal from Argentina of Brazil, at the same protein content, is caused by

the (combined) higher amino acids and organic matter (= energy) digestibility.

Differences in the (digestible) energy content contribute more to the added value than

differences in digestible amino acid and phosphorus content.


AppendixAppendixAppendixAppendix

Least cost formulations set up The purpose of least cost formulations is to determine the shadow price of feedstuffs like

Hipro soybean meal of different qualities (origins) in comparison to other (protein rich)

feedstuffs. The shadow price is the maximum price that can be paid for a feedstuff to be

used in a feed formulation, this is dependant on:

- Market effects. Mainly the availability and prices of ‘competing’ feedstuffs, i.e. protein

rich feedstuffs like other quality soybean meals, sunflower seed meal and/or

rapeseed meal. Therefore current market and future prices of feedstuffs for the

Dutch, Spanish, Polish, Romanian and Maghreb feed industry when available are

used. Updates are made on a monthly base, so that the effects of feedstuff price

changes on feedstuff composition and compound feed costs can be analyzed.

- The species for which the feed is formulated, since the feeding or nutritional value of

the feedstuff and/or the nutrient restriction vary per specie. Therefore three sets of

feed formulations are made for swine, layers and broilers each.

- The chemical composition and matrix values of soybean meal (of different origin). The

price effect of differences in a) protein, b) energy and c) digestible amino acid (and

phosphorus) were analyzed separately by equalizing protein and energy contents for

swine and poultry feeds. Both the chemical composition of SBM as well as the effect

of processing (crushing) varies and influences the nutritional quality. The nutrient

values listed in table 1 are averages based on the research of Prof Mateos, individual

batches of SBM can vary considerable.

Note that the exact nutritional and economical value of a feedstuff can only be obtained

(and compared) if the feeding value (Net Energy or Apparent Metabolisible Energy content

and digestible ileal or total tract amino acid content) was determined with the target

species (layer, growing pigs or broiler) of all feedstuffs used in the formulation via the

same research protocol (for the digestibility experiments). In this formulation the CVB

matrix is used for all the feedstuffs and the three different (origins of) soybean meals are

compared among each other with matrix values obtained from the research of Prof.

G. Mateos (Universidad Politecnica de Madrid, Spain). Therefore the differences in

economical value among the three soybean meals with different origins can be

determined from the differences in nutritional value from the different matrices.

Matrix values The most important nutrient values per species of the different soybean meals are listed

in table 1. Note that the nutrients which have a minimum or a maximum restriction or

requirement in the formulations influence both the feed cost and shadow prices of

feedstuffs. The energy (NE, EV and AME) and the (ileal) digestible amino acids) content

are most crucial.


Table 1. Nutrient values per specie of the soybean meals by origin

Chemical composition (g/kg product) Feedstuffs CVB Mateos Matrix

SFR Argentina 46.0% CP

Brazil 46.9% CP U.S. 46.2% CP

Chemical analysesChemical analysesChemical analysesChemical analyses

Moisture 122.0 120.0 112.0 120.0 C.Protein 468.0 460.0 469.0 462.0 C.Fiber 40.0 36.0 54.0 38.0 Ash 64.0 67.0 62.0 67.0 C.Fat 22.0 16.0 19.0 15.0 Starch (Ewers) 40.0 25.0 25.0 25.0 Sugars 65.0 67.0 53.0 79.0 Calcium 2.80 3.30 3.00 4.60 Phosphorus 6.30 6.90 6.20 6.80 Potassium 22.3 22.5 21.3 21.1 Lysine 29.0 28.3 28.6 28.8 Meth+cyst 13.6 13.5 13.4 13.5 Tryptophan 6.1 6.3 6.3 6.4 Threonine 18.3 18.2 18.2 18.1 Isoleucine 21.5 20.8 21.2 20.8

EneEneEneEnergy valuergy valuergy valuergy value

NE pigs kcal 1945 1940 1980 1990 EV pigs (Dutch) 92.62 92.38 94.29 94.76 AME layer kcal 2227 2242 2290 2310 AME broiler kcal 1888 1901 1940 1970

DigestibDigestibDigestibDigestible nutrientsle nutrientsle nutrientsle nutrients

Digestible P swine 2.50 2.70 2.40 2.70 Dig. P poultry 2.60 2.80 2.30 2.80 il.dig.Lys swine 25.8 24.0 24.6 25.9 Il.dig.Lys/100 g.Pr 5.51 5.22 5.25 5.61 il.dig.Meth swine 5.9 5.5 5.4 5.8 il.dig.M+C swine 11.6 10.9 11.1 11.6 il.dig.Tryp swine 5.2 5.2 5.2 5.5 il.dig.Thre swine 15.4 14.5 14.7 15.4 il.dig. Isol swine 18.7 17.5 18.1 18.5 dig.Lys poultry 25.5 24.0 24.7 26.2 dig.Lys/100 g.Prot 5.45 5.22 5.27 5.67 dig.Meth poultry 5.8 5.5 5.5 5.8 dig.M+C poultry 11.5 11.1 11.2 11.9 dig.Tryp poultry 5.4 5.4 5.4 5.5 dig.Thre poultry 15.6 14.9 15.2 15.9 dig.Isol poultry 18.9 18.1 18.7 18.8


Table 2ATable 2ATable 2ATable 2A FeedstuffFeedstuffFeedstuffFeedstuff Price lists: Price lists: Price lists: Price lists: the Netherlands the Netherlands the Netherlands the Netherlands week week week week 31313131

Prices in €/100 kg

August-September October-December

Code Description

00010 Citruspulp Braz./USA 20.40 18.80

00013 Peas <22%CP 28.20 27.20

00015 Barley (EU) 18.50 18.70

00023 Hipro SBM bypass pel 46.60 40.60

00026 Soybean hulls 16.50 17.20

00033 MOLASSES cane <47%s 17.40 17.50

00034 Flaxseed 54.60 54.60

00038 Alfalfa 15% CP 24.70 24.90

00040 RSM.expell <12%fat N.A. N.A.

00044 Rapeseed Expellers 8% 26.50 26.00

00061 Rye (EU) 16.40 16.50

00063 WHEAT EU (feed) 18.50 18.50

00064 PALMKERNELml<20%fiber 17.70 16.50

00075 Beet Pulp 20-25%sugar 23.50 19.30

00076 MAIZE (EU) 21.00 17.60

00077 SBM 42%CP Arg.pel. N.A. N.A.

00078 L-lysine HCl 132.00 132.00

00079 DL-Methionine 285.00 280.00

00080 Soybeans toast.pel. 47.00 43.80

00081 SBM 44/7 domestic 45.30 37.10

00084 SBM Hipro domestic 47.10 39.50

00090 Wheat middlings 15.00 14.70

00096 Soy oil liq. 73.20 73.50

00097 Palm oil 62.00 62.50

00099 Poultry Fat N.A. N.A.

00100 Animal fat (lard) N.A. N.A.

00105 Fish meal S. America 131.50 128.50

00107 MAIZEglut. fd ml 20-23%CP 20.80 19.20

00113 Sunflowerseed<29%CP 22.80 16.70

00165 TRITICALE 18.00 18.20

00191 TAPIOCA 65% starch N.A. N.A.

00214 L-Threonine 137.50 135.00

00228 Monocal Phosph 51.50 51.50

00256 Fatty Acids 20% Lin. 64.50 65.50

00258 Palm oil Fatty Acids 59.80 57.30

00265 RSM bypass Rumirap 24.50 23.60

00266 Rapeseed meal34%CP 23.00 21.90

00284 RSM bypass Mervob meal 24.50 23.60

00302 CovaSoy HP 46.60 40.60

00332 Vinasses beet 13.00 13.00

00488 MAIZE distillers sol 23.50 22.50

00489 WHEAT DDGS N.A. N.A.

N/A – Price not available


Table 2Table 2Table 2Table 2BBBB. Feedstuff prices . Feedstuff prices . Feedstuff prices . Feedstuff prices of of of of week week week week 31313131 for for for for Spain*, Spain*, Spain*, Spain*, RomaniaRomaniaRomaniaRomania#### andandandand Poland Poland Poland Poland compared tocompared tocompared tocompared to the Netherlandsthe Netherlandsthe Netherlandsthe Netherlands

* Feedstuff prices for the Northern Barcelona area. #Feedstuff prices are similar for Romania, Bulgaria, Serbia and Macedonia, see text for exceptions

Spain Romania# Poland Netherlands €/100 kg € /100 kg €/100 kg €/100 kg

CodeCodeCodeCode DescriptionDescriptionDescriptionDescription 00013 Peas <22%CP 26.80 31.50 28.20 00015 Barley (E.E.G.) 18.40 15.75 14.10 18.50 Rye 18.00 16.40 00026 Soybean hulls 17.00 13.50 16.50 00033 Molasses cane <47%s 16.00 12.15 14.10 17.40 00038 Luzerne 18.50 24.70 00040 RSM.expell 8% fat 22.20 26.50 00061 Milo corn 00063 Wheat EEG (feed) 20.20 14.60 15.30 18.50 00075 Beet Pulp 23.70 20.00 23.50 00076 Maize (E.E.G.) 22.80 17.30 18.35 21.00 00078 L-lysine HCl 199.10 134.35 132.00 00079 DL-Methionine 321.30 289.90 285.00 00080 Soybeans toast.pel. 58.45 47.00 00084000840008400084 SBM Hipro domestic SBM Hipro domestic SBM Hipro domestic SBM Hipro domestic 50.750.750.750.70000 58.4558.4558.4558.45 44442.2.2.2.60606060 44447.17.17.17.10000 00090 Wheat bran 16.00 13.50 12.95 15.00 00096 Soy/Sunflo oil liq. 70.20 94.40 80.70 73.20 00097 Palm oil 71.50 62.00 00100 Animal fat (lard) 74.50 67.05 00105 Fish meal 65% 83.50 131.50 00107 Maizeglutenfeedmeal 20.80 00113 Sunflowerseed meal* 31.00 27.65 22.80 00165 Triticale 14.60 13.20 18.00 00214 L-Threonine 189.30 170.35 137.50 00228 Monocal 57.50 48.25 51.50 00266 Rapeseed meal34%CP 30.00 20.95 23.00 00488 Maize distillers sol 22.50 24.70 23.50 Palm oil fatty acids 70.50 59.80

* Hipro Sunflower seed meal in Spain and Romania; Lopro in the Netherlands.

Soybean M eal Quality by Origin - U.S. Soybean...

Documents

Transcript of Soybean M eal Quality by Origin - U.S. Soybean...