Title: New Value-Added Products from Soybeans
1New Value-Added Products from Soybeans
- Opportunities for
- North American Soybeans
2The stone age did not end because we ran out of
stones. -Unknown
31996 Anything you can make out of petroleum, you
can make out of soybeans
except money
2006 Well maybe
4World Soy Production 1990100.5 Million Metric
Tons
5World Soy Production 2005 217 Million Metric Tons
6North American Production Utilization
- 2005 Marketing Year
- Whole Soybean production 3.5 Billion Bushels
- Soybean crush 2 billion bushels
- Soybean Exports 0.9 billion bushels
- Carryover and other 0.6 billion bushels
7What is in a Soybean?
8North American Soy Crushing
- NA crushes 1.8-2 billion bushels or 54-60 million
tons - 20-22 billion lbs of oil or about 2.8 billion
gallons (10.6 billion liters.) - 43-48 million tons of soybean meal.
9What About Value
- Old value ratios (typical)
- If whole beans were worth X, then oil was worth
2.0-2.2 X and meal is worth 0.9-1.0X. Example if
beans are worth 6/bu (0.10/lb) then oil is
worth 0.22/lb and meal is worth 180/ton
(0.09/lb) - Oil value 2.42 (35)
- Meal value 4.41 (65)
- Return to crusher 6.83/bu
- Meal set demand, but oil made the margin.
10What About Value
- Recent value ratios (Summer 2006)
- If whole beans are worth X, then oil is worth
2.6-2.8 X and meal is worth 0.8 X. Example if
beans are worth 5.40/bu (0.09/lb) then oil is
worth 0.26/lb and meal is worth 150/ton
(0.075/lb) - Oil value 2.86 (44)
- Meal value 3.68 (56)
- Return to crusher 6.54/bu
- Oil is now determining value and driving demand
11NA Soybean Oil Consumption
12Soybean Oil Demand Drivers
- Food demand flat to down, due to lost share
(corn, canola), transfatty acid issue. - Feed use is incidental, up slightly with
increased crush. - Industrial use is small compared to food use, but
increasing rapidly due to biodiesel, plastics and
other industrial uses.
13Soybean Meal Consumption
14Soybean Meal Demand Drivers
- Food demand is increasing significantly due to
soy dairy substitutes and concentrated proteins,
still relatively small compared to feed. - Feed use is flat with increased crush.
- Industrial use (coatings, adhesives) is
increasing but remains very small percentage of
total.
15New Industrial Uses
- Biodiesel
- Plastics
- Lubricants
- Paints, Coatings Inks
- Solvents
- Adhesives
16Price Changes 1990 thru 200512/1/05- Soy Oil
21/lb. Crude 58.42/barrel Gas
13.03/MMBTU6/16/06- Soy Oil 24.9/lb. Crude
70.20/barrel Gas 7.46/MMBTU
17Biodiesel
- Tax incentives and mandates in the US should
drive biodiesel production to 240 million gallons
(912 million liters) in 2006 - Up 320 from 2005
- Equal to almost 9 of NA soybean oil production.
18Biodiesel EconomicsPer gallon
- Feedstock cost _at_0.27/lb 2.025
- Other production 0.400
- Plant gate 2.425
- Less federal incentives -1.100
- Before freight 1.325
- Local spot petrodiesel 2.055
- Gross margin 0.730
- Energy Management Institute 5/17/06 Memphis TN
19PLASTICS/PLASTIC COMPOSITES
- Market segments
- Current
- Polyols for Polyurethane foams, films, molded
parts - Plastic Composites
- Emerging
- Thermoplastics
20North American Polyurethane Demand (millions
lbs.)
- 2000A 2002 2004
- PUR 6482 6393 6888
- Polyol 3007 2956 3610
2004 API End Use Survey
21Polyols Intermediate Prices 2001 December,
2005 Cents per Pound
22Soy Polyols
- At least five different chemical modification
approaches - Range of costs and uses
- Molded foam
- Slab foam
- Carpet backing
- RIM and SMC parts
UTT Carpet Mill- Dalton GA
23Flexible Foam Seating
Cargill supplying Woodbridge in Ontario for use
by Ford
24Target AreaPLASTIC COMPOSITES
- Soy-based thermoset resin
- Polyester resin with fiberglass filler
- Use by Ag Equipment manufacturers
- Testing by auto makers
- Polyurethanes
- Testing pultrusion of parts
- Testing molding techniques and different fillers
25Polyester Intermediate Prices 2001 December,
2005 Cents per Pound
26LubricantsSoy Oil versus Petroleum Basestocks
- Soy Oil Advantages
- Better lubricity
- Lower volatility
- Better viscosity index
- Soy Oil Disadvantages
- Poor oxidative stability
- Poor low temperature properties
27Lubricant Basestock Prices 2001 thru October,
2005 Cents per Pound
28LUBRICANTS HYDRAULIC FLUIDS
- Current
- Total loss applications
- 2-cycle engine oil
- Some hydraulic fluids
- Transformer fluids
- Metal working
- Mold release and other industrial
29LUBRICANTS HYDRAULIC FLUIDS
- Researching
- Crankcase oil development at Valvoline
- Hydraulic fluid formulation at Afton (Ethyl
Corporation)
30Paints, Coatings Inks
- Traditionally largest industrial market for
soybean oil. - Alkyd resins declining with decline of oil based
paint. - Soy ink growing as price is
more competitive.
31Paints, Coatings Inks
- Research
- Water based (latex) paints
- Powder coatings
- UV cured inks.
32Latex Coatings Intermediate Prices 2001
December, 2005 Cents per Pound
33Powder Coatings Intermediate Prices 2001
December, 2005 Cents per Pound
34Solvents
- Primarily Soy methyl esters
- Same as biodiesel with slightly different
standard. - New compounds in development.
35Solvent Prices 2001 thru October, 2005 Cents
per Pound
36SOLVENT MARKET APPLICATIONS
- COMMERCIAL
- Parts cleaners degreasers
- Hard surface cleaners
- Stainless steel equipment cleaners (Restaurants)
- Printing ink cleaners
- Paint strippers
- Adhesives removers
- Mastic removers
- Graffiti removers
- Asphalt cleaners release agents
- Concrete wood stains
- Hand cleaners
- Hand lotions
- Oil spill remediation
- Corrosion protectants
- Oil field equipment cleaners
- Plant floor cleaners
37APPLICATIONS IN DEVELOPMENT
- SME
- Plastic waste disposal reuse
- Highway paving patching materials
- Pesticide carriers (mosquito larvicides)
- Mold mildewcides
- Paper pulp recycling
- Alkyd coating carriers
- Stationary engine fuels (hydrogen)
- Soy Oil
- Bioremediation (soil groundwater)
- Metalworking fluids
- Emollients (personal care products)
38ADHESIVES
- Primary market Wood Adhesives
- Based on soy flour or protein concentrates
- Recently launched new use in
interior grade plywood - Limited packaging adhesives based on soybean oil.
39Adhesives Intermediate Prices 2001 December,
2005 Cents per Pound
40ADHESIVES
- Research
- Improve water resistance to allow exterior
plywood use - Lower viscosity to allow use in oriented
strandboard
41Fermentation Research
- Produce ethanol from carbohydrates in soybean
meal - Real goal is a lower cost protein concentrate
- 70 protein
- No indigestible sugars/anti-nutritionals
- Improved storage properties.
42Thank You
- Any Questions?
- www.omnitechintl.com