the bottom line
We understand the risk of planting a new variety. But we also understand what's at stake for the entire soybean industry if we don't provide what customers demand.
High-oleic soybean oil offers soybean farmers bottom-line incentives in the short term and access to growing markets in the long term.
- Direct Incentives – Companies looking for a consistent source of low-trans-fat oil will often enter into contracts or offer arrangements for trait-enhanced soy. These direct incentives cover the extra costs associated with growing these varieties. They also often offer guaranteed prices to reduce some of the risk associated with unforeseen price fluctuations during the season.
- Regaining and Maintaining Market Share – Soy oil’s market share of edible oils peaked in 2005 at 80 percent. Since then, soy has lost more than 3 billion pounds of edible-oil demand. Initial estimates of the demand for new high-oleic and high-stearic trait-enhanced soybean oils approach 3-5 billion pounds of demand, essentially recapturing the lost market share.
- Higher Prices for Your Beans – Increased demand for trait-enhanced soybean oil raises the price of soybean oil in general, which, in turn, raises the price you get for every bushel. When the market for soy oil improves, every soybean farmer reaps the benefits.
