A new study by the US Soyabean Export Council (USSEC) exploring the non-genetically modified (GM) food-grade soyabean sector has shown a drop in planted area and production.
In its ‘Non-GMO Food-Grade Soybeans Quantification Study’, the organisation estimated that US soyabean farmers planted around 687,965ha (1.7M acres) of non-GM food-grade soyabeans in 2022, as well as about 849,839ha (2.1M acres) of non-GM feed-grade soyabeans.
According to the study, the drop in planted area was due to a range of factors including high commodity soyabean prices, perceived yield lag, premium levels, agronomic challenges and disruptions in shipping and freight costs.
Expanding on information available from the United States Department of Agriculture (USDA), the study was based on interviews and online surveys from non-GM soyabean producers and companies that purchase food and feed grade soyabeans, three state soyabean boards and three industry experts, USSEC said on 26 January.
“The results suggest that the lower non-GM soyabean production in the US is caused by the supply side,” Will McNair, director of oil and soyabean food programmes and USSEC’s deputy director of Northeast Asia, said.
“Through the study, purchasers indicated that demand is there and growing, but with current commodity prices, as well as other factors, farmers have less interest in raising and managing non-GM and other identity preserved (IP) soyabeans as there is less economic value in them doing so.”
For farmers, current non-GM food-grade premiums had not matched commodity prices, the report said. In 2021, soyabean commodity prices increased by about 48%, while premiums for non-GM food-grade soyabean rose by 4%. In 2022, commodity prices increased about 18%, compared to 13% for non-GM food-grade soyabeans.
As commodity prices drop, this trend may shift but soyabean farmers pointed to yield drag and weed control issues as agronomic challenges they considered when deciding to grow non-GM food-grade soyabeans, the report said.
In addition to understanding current planting trends, the study noted factors that could increase production. Farmers said that higher-yielding varieties and minimum price guarantees would influence their planting decisions. Purchasers agreed with these factors and added that resolving shipping and freight issues would also help.
“Study participants in the supply chain said that market signals from upstream purchasers would help increase food [grade] soyabean supply,” McNair added. “Recurring comments focused on contracting acres, higher premiums, better freight costs and delivery periods.”
The study estimated that contracted planted area accounted for about 88% of total non-GM soyabean production in the USA. Non-GM soyabeans are used in the tofu, soyabean milk, natto, miso and other markets.
