{"id":1529,"date":"2014-04-22T09:00:15","date_gmt":"2014-04-22T09:00:15","guid":{"rendered":"https:\/\/www.insta-pro.com\/?p=1529"},"modified":"2023-06-21T11:42:29","modified_gmt":"2023-06-21T16:42:29","slug":"do-the-math-on-express-soybean-meal","status":"publish","type":"post","link":"https:\/\/instapro.spinuhost.com\/en\/blog\/businessstrategyandfinance\/do-the-math-on-express-soybean-meal\/","title":{"rendered":"Do the Math On ExPress\u00ae Soybean Meal"},"content":{"rendered":"

Dr. Nabil Said<\/a> and Dr. Dave Albin<\/a> have written many blogs on the benefits of ExPress\u00ae <\/a>soybean meal in regards to feeding efficiencies and digestibility advantages versus standard soybean meal (here<\/a> and here<\/a>).\u00a0 There are significant advantages which will calculate in better profitability for the grower.\u00a0 Examples are poultry growing faster while eating less, dairy cows producing more milk, laying hens producing larger eggs, etc.\u00a0 As you can imagine, these are major positive impacts in any meat, milk or egg operation when using ExPress\u00ae soy instead of the commodity soybean meal protein source.<\/p>\n

But in many places around the world there is another major advantage to using ExPress\u00ae versus commodity soy in animal\u2019s diets and that is the basic cost of soybean meal.\u00a0 If your location is far from a commodity soybean meal producer in a solvent plant, you may be faced with an extremely high cost ingredient.\u00a0\u00a0 Duncan Nesbitt<\/a> wrote about basis (here<\/a>) where he said, \u201cThe basis <\/em>is the amount above or below the CBOT (Chicago Board of Trade<\/a>) futures price that a commodity is trading for at a given location.\u00a0 Another way to more simply think about this is how far do your local beans have to ship to a solvent plant and then be shipped back in the form of soybean meal?<\/p>\n

Recently we have seen a number of Canadian producers see the benefit of this in deciding to process their own soy through the ExPress\u00ae system.\u00a0 Basis<\/em> in Central Canada is $67, meaning a $67 premium over CBOT pricing.\u00a0 So for example if solvent soybean meal CBOT price is $400, the cost of the soybean meal in Central Canada is $467.\u00a0 Western Canada is even more costly at $87 basis<\/em>.\u00a0 At the same time we have more and more soybean varieties capable of growing in or near Canada that can be accessed to process in an ExPress\u00ae plant.\u00a0 Now these producers not only can save money, but have a better ingredient for their animal\u2019s growth and production.<\/p>\n

Another scenario where the math works is producing ExPress\u00ae in an area where the producer does not have local beans to buy, but must get the soybeans shipped to them from long distances.\u00a0 We have set up major producers in Egypt and in Russia that are perfect examples of this. In this scenario the math works well again because of the value of the ExPress\u00ae soybean meal with 6-8% oil content and the value of the ExPress\u00ae crude oil produced in the process.\u00a0 For Southern Russia here is how the numbers look:<\/p>\n

Commodity Soybean Meal (solvent) Price\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 = $725 per ton<\/p>\n

Raw Soybeans Price \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 = $660 per ton<\/p>\n

ExPress Soybean Meal Price \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 = $800 per ton<\/p>\n

ExPress Crude Oil Price \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 = $950 per ton<\/p>\n

As you can see in this example, the producer has $140 per ton margin to work with on the meal production and $290 per ton margin when selling the oil.<\/p>\n

So do the math on not only the feeding and digestibility advantages, but also the pure cost and margin advantages of ExPress\u00ae soy processing versus buying commodity solvent extracted soybean meal.\u00a0 You may be pleasantly surprised with the profit opportunity you have.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Dr. Nabil Said and Dr. Dave Albin have written many blogs on the benefits of ExPress\u00ae soybean meal in regards to feeding efficiencies and digestibility advantages versus standard soybean meal (here and here).\u00a0 There are significant advantages which will calculate in better profitability for the grower.\u00a0 Examples are poultry growing faster while eating less, dairy […]<\/p>\n","protected":false},"author":5,"featured_media":10943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[36,86,7838,29,93],"class_list":["post-1529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-businessstrategyandfinance","tag-creating-a-profitable-plant","tag-express-process","tag-high-shear-dry-extrusion","tag-local-ingredients-use","tag-processing-feed-or-food"],"acf":[],"yoast_head":"\nDo the Math On ExPress\u00ae Soybean 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