FACTS & STATISTICS FOR THE ILLINOIS SOYBEAN INDUSTRY

Transcription

1 FACTS & STATISTICS FOR THE ILLINOIS SOYBEAN INDUSTRY

2 Welcome to SoyIllinois! Illinois soybean farmers are among the best producers of top-quality soybeans in the world. Along with our ideal growing environment, our industry, infrastructure and innovative leadership allow Illinois to consistently and efficiently deliver the best soybeans whole beans, soy meal, or soy oil to ports around the world. In this booklet, we ll introduce you to some important reasons why Illinois soybeans are the right soybeans for your needs. u The best soybean growing conditions u Top processors and industry leaders u World-class research and educational institutions u Comprehensive infrastructure that supports export opportunities u Organized, accessible leadership In this booklet, we offer you some highlights about the crop we love to grow for you. We invite you to visit our web site to learn more of the benefits of specifying Illinois as you source your beans. Welcome to SoyIllinois! Ron Moore, Chairman Illinois Soybean Association

3 Welcome, Visitors! Welcome to Illinois, a leading U.S. state for soybeans. Illinois offers a progressive environment for sourcing a wide variety of soybeans and an extensive transportation system to deliver them. We are dedicated to production agriculture, and to providing our soybean customers with high quality, accessible soy products. Our land is ideal for soybean production. Nearly 80 percent of the state (27 million acres or 10.9 million hectares) is farmland. Nestled in the heart of the U.S., Illinois has superior transportation system including more than 7,200 miles of railroad tracks and 1,118 miles of navigable rivers, including the Illinois and Mississippi rivers move products to the Gulf of Mexico. It is a network of transportation that assures that our ag products are efficiently delivered at the best cost to the customer. The handling capacity and capabilities in Illinois are second to none. More than 1,000 grain elevators in Illinois carefully handle and store our soybean crops. Many facilities have segregation and identity-preserved capabilities. Trade leadership comes from ranking third nationally in export of agricultural commodities with nearly $4 billion worth of goods shipped abroad annually. Illinois s exports account for nearly 7 percent of all U.S. agricultural exports. In addition, soybean prices are set daily at our state s Chicago Mercantile Exchange. Once again, Illinois is proud to welcome you. We value the opportunity to work together. Tom Jennings, Director Illinois Department of Agriculture

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5 T A B L E O F C O N T E N T S 2 A rich history Supply 3 Why SoyIllinois? 4 Consistent and reliable supply 5 Supply statistics 6 Consistent protein and oil content 7 Crush capability, crush capacity 8 GMO acres Access 9 Connecting with the world 10 Transportation 11 Container shipment 12 Rail Shipment 13 Trade 14 Research Demand 15 Composition of a soybean 16 Exports 17 Soy in animal feed 18 Demand statistics 19 Other facts 20 Helpful links 1

6 History Illinois has a rich history in the production, research and processing of the soybean The first research on soybeans conducted at the University of Illinois at Urbana-Champaign A.E. Staley (now Tate and Lyle) in Decatur begins crushing soybeans for its meal Illinois becomes the leading state for soybean production Archer Daniels Midland (ADM) begins to process soybeans for oil and meal Soybean laboratory established at University of Illinois Northern soya germplasm collection established at the University of Illinois. 1960s International Program for Soybeans (INTSOY) established at the University of Illinois Land of Lincoln Soybean Association formed Illinois Soybean Program Operating Board is created to oversee checkoff contributions National Soybean Research Laboratory established at University of Illinois Land of Lincoln Soybean Association and Illinois Soybean Program Operating Board merge to operate under a single name Illinois Soybean Association Illinois participates in a signing agreement with Chinese buyers to purchase 205 million bushels of U.S. soybeans. 2

7 Why SoyIllinois? Illinois offers a leading source for soy and soy product fulfillment. Illinois soybean farmers are leaders in production and innovation. Our research, transportation and processing capabilities are organized and efficient. That s why we say SoyIllinois. Here are a few of the reasons Illinois consistently and competently provides our soy customers with top-quality soy products: u Illinois has 76,000 farms covering 27 million acres (10.9 million hectares). u Around 9 million acres (3.6 million hectares) of soybeans are harvested annually in Illinois. u Illinois ranks third in the U.S. for total prime farmland 89 percent of Illinois land is fertile loess left behind by glaciers. u Illinois ranks third nationally in agricultural exports, with soybean exports estimated at $2.3 billion. u More than 44 percent of all grain produced in Illinois is exported. u Illinois is 400 miles (643 kilometers) from north to south. u More than 69 seed companies do business in Illinois. u Illinois is headquarters for: u Chicago Mercantile Exchange u ADM u National Soybean Research Laboratory u John Deere u Caterpillar u Illinois has four first-class universities conducting ag research. u More than 7,200 miles (11,500 kilometers) of railroad tracks. u More than 23 intermodal terminals are located in Illinois to deliver soybeans in containers. u Bordered by the Mississippi and Ohio rivers. u Served by the Illinois River through fertile farm land. u Soybeans provide more than $4 billion in agricultural receipts. Soybean Acres by County Acres Not Estimated <10,000 10,000-24,999 25,000-49,999 50,000-99, , , ,000 + Source: USDA NASS 3Supply In Illinois, we focus on producing a sustainable supply of soybeans for our customers. Ron Moore, Roseville, IL

8 Supply Illinois grows a consistent and reliable supply of soybeans. For more than 50 years, Illinois has grown and supplied an increasing amount of soybeans to meet customers needs. The number of acres harvested has increased by 55 percent and in the same 50 years, production has more than tripled. Through careful production and advances in seed, yields have doubled. Acres Harvested Bushels Produced Source: USDA NASS One acre = hectares One hectare = 2.47 acres Thousands Harvested Acres Hectares Yields per Harvested Bushels/acre Metric tons/hectare Thousands Produced Bushels Metric tons ,973 2, ,298 3, ,800 2, ,800 5, ,350 3, ,225 8, ,100 3, ,900 9, ,450 4, ,800 12, ,280 3, ,180 9, ,120 3, ,640 11, ,350 3, ,100 11, ,050 3, ,075 12,693 4 Source: USDA NASS

9 Illinois Soybean Supply A summary of the last ten years of Illinois production and use shows a relatively consistent supply of soybeans. u Acres harvested were highest in at 10,620,000 acres. u Soybeans harvested in the fall of 2010 had the highest yield at 52 bushels per acre. u Illinois consistently harvests more than 99 percent of its planted acres. Item SOURCE: THE PROEXPORTER NETWORK, MARCH 2011 Crop year (September August) 13% of all U.S. soybean exports originate in Illinois Carry-in (million bushels) Thousand acres planted 10,700 10,600 10,600 9,950 9,500 10,100 8,300 9,200 9,400 9,100 Thousand acres harvested 10,620 10,550 10,350 9,900 9,450 10,050 8,280 9,120 9,350 9,050 Bushels/acre Production Supply Carry-out Disappearance (use) Seed/Residual Use Crush Use in Illinois Net Exports from Illinois Farm Price, unweighted annual average Million bushels Illinois Farm Price $4.68 $5.74 $7.87 $5.97 $5.74 $6.80 $11.36 $10.19 $9.80 $11.25 U.S. Farm Price $4.56 $5.64 $7.94 $5.90 $5.63 $6.67 $11.04 $10.12 $9.64 $ Supply

10 Supply SoyIllinois: Providing historical protein and oil content of Illinois soybeans for more than a decade. Protein and oil content are very important to many Illinois soybean customers. We understand how these critical criteria influence your end-use results. Each year since 2000, Illinois has gathered and reported protein and oil content of nearly 600 soybean varieties per year in five regions in the state. The data has been reported on the Illinois Soybean Association-sponsored and soybean checkoff-funded Varietal Information Program for Soybeans (VIPS). Year after year, Illinois has continued to offer a consistent supply of protein and oil. The chart below shows the average protein and oil content for each of the last ten years. Average Protein and Oil Content (%) in Illinois Region 1 50% 40% 30% 20% 10% Region 3 50% 40% 30% 20% 10% Region 5 50% 40% 30% 20% 10% PROTEIN OIL PROTEIN OIL Region PROTEIN OIL Average Protein and Oil Content (%) Per Region Region 2 50% 40% 30% 20% 10% 50% 40% 30% 20% 10% PROTEIN PROTEIN OIL OIL Source: Varietal InformATION Program for Soybeans AVG AVG OIL PROTEIN

11 SoyIllinois: Crush capability, crush capacity. Roughly one half of Illinois soybeans are crushed within the state. Illinois has nine soy processing facilities that utilize solvent extraction. Additionally, there are two smaller crushing plants that utilize a mechanical process for producing meal and oil. Illinois boasts a total capacity of approximately 23,450 short tons of processing per day. Galesburg Bloomingtonn Quincy Decatur (2) Cairo Bradley Gilman Gibson City Locations of Illinois Soy Processing Plants Source: Promar International Soybean Market Assessment, OCTOBER 2010 Incobrasa soybean processing plant, Gillman, il Various grades of soybean oil are available from Illinois nine crushing facilities from crude to once-refined to fully-refined soybean oil. 7Supply

12 Supply Following the trend across the U.S. Illinois has had a growing use of GMO varieties. In 2010, eleven percent of soybeans planted in Illinois were non-genetically enhanced varieties providing our customers with a greater source of non-gmo soybeans than is available from many locations. SoyIllinois is proud to show our customers how they can access the soy products they desire to fulfill their market needs. Illinois acres planted in GMO varieties Source: USDA NASS Despite a large percentage of GMO acres, Illinois has more non-gmo acres (11%) to offer customers than many other states. Source: USDA NASS Percentage of GMO varieties grown per state 8

13 Connecting with the world. Centrally located in the U.S., Illinois enjoys the ability to take advantage of a variety of transportation options. Illinois waterways provide efficient and timely movement of soybeans whether that means taking exports to the Gulf of Mexico and off to Asian, Mexican and European markets, or moving container shipments through Pacific Northwest ports or down the St. Lawrence Seaway. Illinois rail shipments provide ready access to a nationwide network of rail facilities across the country with the ability and experience to move soy commodities and identity-preserved soybeans worldwide on time. Through the Pacific Northwest Through Long Beach California Illinois River near Joliet, il Through the Panama Canal Through the St. Lawrence Seaway Down the Mississippi River To European markets 9Access From the field to the elevator to the rail or river to our customers we work as a team to get the product delivered to you. Duane Dahlman, Marengo, IL

14 Access Illinois is uniquely positioned in the U.S. as a major transportation corridor. Every major form of transportation crosses through the state. u Chicago is home to the largest rail gateway in the United States, connecting the east and the west. u Illinois has more than 7,200 miles (11,582 kilometers) of railroad tracks. u There are 1,118 miles (1,798 kilometers) of navigable rivers, including the Mississippi and Illinois rivers to move barge traffic to the Gulf of Mexico. The Ohio River flows along the southern border of Illinois. u Lake Michigan borders Illinois in the northeast, providing access to the St. Lawrence Seaway and European markets. u More than 2,000 miles (3,200 kilometers) of interstate highway and 34,500 miles (55,500 kilometers) of other state highways make trucking of soybeans fast and efficient. u There are more than 23 intermodal terminals in Illinois. u Illinois has almost 1,000 airports, including Chicago s O Hare International, making travel and commerce efficiently accessible to the world. Railroad BNSF UP Other Illinois Lake Michigan Intermodal Terminals 1 mile = 1.61 kilometers 1 kilometer =.6 miles Interstate highways Rivers 10

15 Container use for shipping soybeans overseas is greater than it was ten years ago. The differential cost of shipping in containers versus bulk shipping has been a determining factor. With containers, Illinois offers identity-preserved soy product from the field to the customer. The cost to ship soybeans in containers has remained relatively constant in the last ten years. Bulk shipping costs have varied widely since Illinois Container Shipments of Soybeans Costs to Ship Soybeans Bulk vs. Container SOURCE: KIMBERLY VACHAL How many bushels of soybeans can shipping containers accommodate? TEU (twenty foot equivalent unit): 796 bushels (21.67 metric tons) FEU (forty foot equivalent unit): 973 bushels (26.48 metric tons) 11Access

16 Access Rail is the leading transportation mode for moving soybeans to export markets, with a variety of soy products efficiently reaching their destinations in a timely manner. u Illinois soybeans moved by rail u Illinois soybean meal moved by rail u Illinois soybean oil moved by rail 15.28% moved an average of 515 miles 54.86% moved an average of 801 miles 65.00% moved an average of 578 miles Source: Soy TRANSPORTATION COALITION, NOVEmBER 20,

17 The Chicago Mercantile Exchange, home of the Chicago Board of Trade contract market, sets prices for soybeans and is the basis used worldwide to negotiate the price of soybeans, soybean meal and soybean oil. Average Soybean Farm Price Received in Illinois by Marketing Year Access Source: USDA NASS 13

18 Access Research and Seed There are four universities actively conducting agricultural research in Illinois. These institutions of higher learning provide soybean growers ready access to data on diseases, production techniques, weeds and values of the soybean to assure they produce the best crop for their customers. Four state universities serve Illinois farmers u University of Illinois at Urbana-Champaign u Western Illinois University u Southern Illinois University u Illinois State University Significant research areas in recent years: u Soybean meal profiles for swine feeds u Illinois Sentinel Plots for soybean rust u Soybean Cyst Nematode identification u Soybean germplasm and mapping the soybean genome u Aquaculture feed formulations u Cancer preventive characteristics of soy protein Sixty-nine seed companies operate soybean production facilities in Illinois. This gives soybean farmers a significant selection of soybeans from which to select from the very best soybean varieties on the market. International, national and regional seed companies recognize the value of working with Illinois farmers to grow seed and to take advantage of its rich loess soil. The selection of varieties includes: u Clear hilum tofu beans u Non-GMO soybeans u Green edamame soybeans u Commodity soybeans u Low linolenic acid soybeans u Organic soybeans 14

19 Composition of a Soybean The soybean (Glycine max) is an oilseed. Whole soybeans can be made into soy milk through a process of straining blended and soaked soybeans. Tofu comes from further processing of the soy milk and the addition of key ingredients. Tempeh, miso, natto, soy sauce, and soy nuts also originate from the whole soybean. In commercial processing, soybeans are cleaned, cracked, dehulled and rolled into soy flakes. This ruptures the oil cells for efficient extraction to separate the oil and meal components. Soybean oil finds its way into food products such as margarines and cooking oils, and industrial products such as plastics and biodiesel fuel. Lecithin, extracted from soybean oil, is used for everything from pharmaceuticals to protective coatings. It is a natural emulsifier and lubricant. After removal of the soybean oil, the remaining flakes can be processed into various edible soy protein products, or used to produce soybean meal for animal feeds. Defatted flakes are the basis for a variety of soy protein products including soy concentrates and soy isolates. The soybean is the highest natural source of dietary fiber. Eight essential amino acids are found in soybeans, which are necessary for human nutrition and not produced naturally in the body. Soy flour and grits are used in the commercial baking industry. They aid in dough conditioning and bleaching. Soy hulls are processed into fiber bran breads, cereals and snacks and fed to livestock. Demand The mature soybean is about 38% protein, 18% oil and 15% moisture, ash and hull. 38% Protein 15% Insoluble Carbohydrates (dietary fiber) 15% Soluble Carbohydrates (sucrose, stachyose, raffinois, others) 18% Oil (0.5% Lecithin) 14% Moisture, ash, other Our customers tell us what they want in soybeans, and we work together to grow the soybeans that meet their needs. Mark Sprague, Hull, IL 15

20 Demand Soybean Exports 54% of all soybeans grown in Illinois are destined for foreign buyers. Source: USDA NASS China Korea Taiwan Japan Netherlands Great Britain Mexico Philippines Canada India Morocco Algeria Vietnam Indonesia Thailand Turkey Egypt China/Hong Kong $10,823 (825 mil bu) Mexico $1,494 (120 mil bu) Japan $1,127 (86 mil bu) Indonesia $806 (53 mil bu)** Taiwan $653 (57 mil bu)** U.S. Soybean & Soy Product Exports Eighty percent of the soybean products exported are whole soybeans. Seven percent of exported soybean products are shipped as soybean oil, with the remaining percentage (13%) exported as meal. Top U.S. Export Customers $ Million (volume) Soybean Meal Exports* Canada $300 (44 mil bu equiv) Philippines $285 (42 mil bu equiv) Mexico $285 (42 mil bu equiv) Indonesia $153 (22 mil bu equiv) Venezuela $145 (21 mil bu equiv) Soybean Oil Exports** China/Hong Kong $420 (159.1 metric tons) Mexico $200 (264.4 metric tons) Morocco $198 (107.8 metric tons) India $133 (141.8 metric tons) Peru $76 (159.1 metric tons) *Estimated based on Foreign Ag Service marketing year data. **Rankings differ because of added value at time of export. Mississippi River near New Orleans, LA SouRCE: AmERICAN SoyBEAN ASSOCIATION FROm DEPARTmENT of CommERCE CALENDAR year and U.S. SoyBEAN ExPORT CouNCIL (USSEC) 16

21 Illinois Soybean Use by Livestock Soybean meal is a major protein ingredient in animal feed. Swine 69.2% Poultry 14.4% Beef 10% Dairy 6% Other.4% Swine 69.2% It is estimated that of the 6.4 million tons of soybean meal produced in Illinois, nearly 88% is exported to other states or overseas. SOURCE: THE PROEXPORTER NETWORK, MARCH 2011 Poultry 14.4% Beef 10% Dairy 6% Other.4% 17Demand

22 Demand Item Illinois Soybean Demand The demand for Illinois soybeans is driven largely by its ability to meet customer needs in volume and quality. Crop year (September August) Soybean crush (million bushels) Soymeal yield (pounds/bushel) Soymeal production (thousand tons) 6,528 6,215 5,763 6,349 6,404 6,727 6,567 6,041 6,165 5,977 Soymeal fed in Illinois (thousand tons) Soymeal net exports (thousand tons) 5,736 5,441 4,996 5,533 5,605 5,983 5,792 5,292 5,401 5,207 HPCAUs (thousands)* 2,889 2,913 2,898 2,922 2,878 2,791 3,003 3,115 3,177 3,199 Soymeal fed per HPCAU (tons) Soyoil yield (pounds/bushel) Soyoil production (million pounds) 3,045 2,993 2,709 3,018 3,174 3,216 3,191 2,889 2,901 2,827 *HPCAU High Protein Consuming Animal Units SOURCE: THE PROEXPORTER NETWORK, MARCH

23 The Illinois Soybean Association s mission is: To ensure Illinois soy is the highest quality, most dependable, sustainable and competitive in the global marketplace. To help fulfill that mission, the Illinois Soybean Association initiated or partnered with: u SoybeanPremiums.org to help match soybean growers with buyers who have special requirements. u Varietal Information Program for Soybeans (VIPS) to provide growers, researchers and buyers access to valuable production and output information. u Soy Transportation Coalition to advance a transportation system that delivers cost-effective, reliable and competitive service. u United Soybean Board (USB) to help build demand, to deliver information on programs and successes and to identify and fund research initiatives. u American Soybean Association (ASA) on national and international policies and regulatory issues. u United States Soybean Export Council (USSEC), United States Meat Export Federation (USMEF) and USA Poultry and Egg Export Council (USAPEEC) on programs for soy products, meat and poultry exports. u Illinois has a capacity of million gallons of biodiesel from six major refineries in the state, predominantly using soybean oil. u Soybeans can produce at least twice as much protein per acre than any other major vegetable or grain crop. u Soybean protein contains all of the essential amino acids necessary for humans. Other facts 19

24 Helpful links Illinois Soybean Association American Soybean Association Illinois Soyfoods Center National Oilseed Processors Association National Soybean Research Laboratory Soy in Aquaculture Soy Foods Association of North America Soy Stat Reference Guide Soy Transportation Coalition United Soybean Board United Soybean Board-Qualisoy U.S. Soybean Export Council U.S. Soyfood Directory United States Department of Agriculture USDA-Foreign Ag Service USDA-National Agriculture Statistics Service World Initiative for Soy in Human Health (WISHH) For more detailed information and a list of Illinois exporters, non-gmo suppliers, container shippers and more, visit the SoyIllinois web site at 20

25 Statistics and facts have been gathered from a number of sources, including: American Soybean Association Exporting Local Grains via Container from an Illinois River Agricultural Hub: Update on Market Trends, Kimberly Vachal, October 2010 Illinois Agricultural Statistics 2010 Illinois Department of Agriculture Illinois Soybean Association ProExporter Network Promar International Soybean Market Assessment, October 2010 Soy Transportation Coalition SoyInfoCenter.com United States Department of Agriculture (USDA) U.S. Department of Commerce U.S. Soybean Export Council (USSEC) U.S.D.A. National Agricultural Statistics Service (NASS) Varietal Information Program for Soybeans (VIPS)

26 Illinois Soybean Association 1605 Commerce Parkway Bloomington IL Phone: Fax:

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