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New Value-Added Products from Soybeans

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New Value-Added Products from Soybeans Opportunities for North American Soybeans The stone age did not end because we ran out of stones. -Unknown 1996 Anything ... – PowerPoint PPT presentation

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Title: New Value-Added Products from Soybeans


1
New Value-Added Products from Soybeans
  • Opportunities for
  • North American Soybeans

2
The stone age did not end because we ran out of
stones. -Unknown
3
1996 Anything you can make out of petroleum, you
can make out of soybeans
except money
2006 Well maybe
4
World Soy Production 1990100.5 Million Metric
Tons
5
World Soy Production 2005 217 Million Metric Tons
6
North 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

7
What is in a Soybean?
8
North 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.

9
What 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.

10
What 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

11
NA Soybean Oil Consumption
12
Soybean 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.

13
Soybean Meal Consumption
14
Soybean 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.

15
New Industrial Uses
  • Biodiesel
  • Plastics
  • Lubricants
  • Paints, Coatings Inks
  • Solvents
  • Adhesives

16
Price 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
17
Biodiesel
  • 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.

18
Biodiesel 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

19
PLASTICS/PLASTIC COMPOSITES
  • Market segments
  • Current
  • Polyols for Polyurethane foams, films, molded
    parts
  • Plastic Composites
  • Emerging
  • Thermoplastics

20
North American Polyurethane Demand (millions
lbs.)
  • 2000A 2002 2004
  • PUR 6482 6393 6888
  • Polyol 3007 2956 3610

2004 API End Use Survey
21
Polyols Intermediate Prices 2001 December,
2005 Cents per Pound
22
Soy 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
23
Flexible Foam Seating
Cargill supplying Woodbridge in Ontario for use
by Ford
24
Target 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

25
Polyester Intermediate Prices 2001 December,
2005 Cents per Pound
26
LubricantsSoy Oil versus Petroleum Basestocks
  • Soy Oil Advantages
  • Better lubricity
  • Lower volatility
  • Better viscosity index
  • Soy Oil Disadvantages
  • Poor oxidative stability
  • Poor low temperature properties

27
Lubricant Basestock Prices 2001 thru October,
2005 Cents per Pound
28
LUBRICANTS HYDRAULIC FLUIDS
  • Current
  • Total loss applications
  • 2-cycle engine oil
  • Some hydraulic fluids
  • Transformer fluids
  • Metal working
  • Mold release and other industrial

29
LUBRICANTS HYDRAULIC FLUIDS
  • Researching
  • Crankcase oil development at Valvoline
  • Hydraulic fluid formulation at Afton (Ethyl
    Corporation)

30
Paints, 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.

31
Paints, Coatings Inks
  • Research
  • Water based (latex) paints
  • Powder coatings
  • UV cured inks.

32
Latex Coatings Intermediate Prices 2001
December, 2005 Cents per Pound
33
Powder Coatings Intermediate Prices 2001
December, 2005 Cents per Pound
34
Solvents
  • Primarily Soy methyl esters
  • Same as biodiesel with slightly different
    standard.
  • New compounds in development.

35
Solvent Prices 2001 thru October, 2005 Cents
per Pound
36
SOLVENT 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

37
APPLICATIONS 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)

38
ADHESIVES
  • 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.

39
Adhesives Intermediate Prices 2001 December,
2005 Cents per Pound
40
ADHESIVES
  • Research
  • Improve water resistance to allow exterior
    plywood use
  • Lower viscosity to allow use in oriented
    strandboard

41
Fermentation 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.

42
Thank You
  • Any Questions?
  • www.omnitechintl.com
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