Soy protein in baking Gregory Penner Soy 20/20 February 25 th, 2004.

Soy protein in baking

Gregory PennerSoy 20/20February 25th, 2004

Overview

• Canadian soybean production• Overview of soy protein uses in

baking• Market analysis• Constraints to growth• Summary

Soybean composition

Protein, 38%

Soluble carbohydrates,

15%

Insoluble carbohydrates,

15%

Oil, 18%

Moisture, ash, other, 14%

Soy processing

Oil

Meal

Crush

Protein 49%Oil 1%Soluble carbohydrates19%Insoluble carbohydrates19%Moisture, ash, other12%

Soyflour

Soygrits

TSP

Fine grind

Coarse grind

Extruded

Soy protein processing

Soymeal Soy proteinconcentrate

Soy proteinisolate

Solublecarbohydrates

Solublefibre

70% protein 95% protein

Uses of soy protein in

baking

What is being used now

• Heat treated commodity soy flour• $0.28/lb FOB Toronto• Mixture of GMO/non-GMO

Value that is being missed1.) Natural bleaching

Lipoxygenase capable of whitening bread flour

Lipoxygenase primary cause of off-flavour1% to 2% soyflour off-flavour not a problem

Enzyme present insoybean

Wheat flour

2.) Low off-flavour soybean

This picture createsexpectations.

Products cannot disappoint.

Soybean varieties with low off-flavour exist.

3.) Functional synergy with wheat flour.

• There are soybean varieties that have the capability of interacting positively with wheat flour.

4.) Okara as an additive

Okara

Protein

Fibre

Probiotic sugars

Market analysis

Ontario bakery exports to the U.S.

0 100 200 300 400

1998

1999

2000

2001

2002

Export value (M Cdn $)

Per capita wheat flour consumption

0 20 40 60 80 100 120

Kg wheat flour/person/year

U.K.

France

U.S.

Canada

Wheat flour consumption

0.0 5.0 10.0 15.0 20.0

Wheat flour consumed MT

Canada

U.S.

U.K.

France

Market penetration assumptions

AssumptionsAmount of soyflour added 1%Market penetration (Canada) 50%Market penetration (U.K.) 30%Market penetration (France) 25%Market penetration (U.S.) 15%

Soy flour opportunity

0 5,000 10,000 15,000 20,000

MT soyflour

Canada

U.S.

U.K.

France

Soyflour value

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

So

yflo

ur

valu

e (C

dn

$)

Canada U.S. U.K. France

Summary of value analysis

• Soyflour cannibalizes wheat flour sales.

• Value add in North American markets leverages wheat product sales.

• Non-GMO/Value add in Europe leverages wheat product sales.

Constraints to growth

Value chain analysis

Variety development

Grainhandlers

Crushingplants

Proteinprocessing

Soyfoodcompanies

Consumers

RetailersFood

companies

Soy protein value chain in Canada

Variety development

Grainhandlers

Crushingplants

Soyfoodcompanies

Consumers

RetailersFood

companies

How the gap has been filled

U.S.Crushers

Soyfoodcompanies

Consumers

RetailersFood

companies

U.S.protein

processing

Why has this happened?

Hexane Soy flour$0.28/lb

Non-hexane Soy flour$0.35/lb

Existing soy protein

suppliers

Companies with capacity

• Hayhoe Mills• Jackson Seeds• NewlyWeds

Lots of other companies considering development of capacity.

Need to be able to identify clients.

Summary

• Soyflour use in the bakery industry is growing

• Value-added opportunities in Canada are being missed.

• Incorporation of these opportunities will leverage wheat product sales.

• We need to creatively build a value chain to capture these opportunities.

Objectives for today

• Obtain feedback on market issues• Create linkages• Determine if perceived

opportunities are worthwhile• Identify constraints to removing

them