-
R e s e a r c h f o r d e v e l o p m e n t
Soybean Meal Quality by Origin:
Economic Value of Hipro Soybean Meal in
Least Cost Formulations
Report: USSEC No. 4/2016
September 7, 2017
J. Doppenberg, Ph.D.
This report is a contribution to the feed and animal feed
industry
in the European Union, brought to you by:
-
Report: USSEC No. 4
Least Cost Formulations of Animal Feeds in Different Regions for
the
U.S. Soybean Export Council, American Soybean Association-
International Marketing, and United Soybean Board
Periods: September and November-January (2018)
By J. Doppenberg, Ph.D.
-
CONTENTS
0. Executive summary
............................................................................................................
4
1.
Introduction.........................................................................................................................
5
2. Feedstuff market developments
Netherlands.................................................................
5
3. Shadow prices soybean meal by origin, the
Netherlands.............................................. 6
3.1 Shadow prices soybean meal by origin, Spain
.......................................................... 12
3.2 Shadow prices soybean meal by origin, Poland
........................................................ 17
3.3 Shadow prices soybean meal by origin, Romania, Bulgaria,
Serbia and
Macedonia................................................................................................................................
22
4. Analyses of value differences (€/100 kg) of soybean meal of
differing qualities ....... 27
Appendix
Table 1. Matrix values of SBM by origin
Table 2. Feedstuff prices in different regions
Disclaimer:
The content of this report is for informational purposes only.
All information provided in
this report is to the best of our knowledge accurate and based
on solid research.
Schothorst Feed Research BV cannot be held responsible for any
claims resulting from
the use of the information provided or feedstuff prices
mentioned in this report in
formulating feeds or purchasing feedstuffs.
Schothorst Feed Research B.V.
-
4 Schothorst Feed Research B.V.
0. Executive summary
The added value of higher quality soybean meal in feeds for
different species is studied in
this report with feedstuffs and prices for four regions: the
Netherlands (indicative for
North Western Europe), Spain (indicative for South Western
Europe), Poland (indicative
for North Eastern Europe) and Romania (indicative for South
Eastern Europe).
The current market price of Hipro soybean meal in €/100 kg in
the different regions is as
follows:
Table 1. Market prices of Hipro soybean meal in different
regions
Hipro SBM* Netherlands Spain Poland Romania
€/100 kg 30.40 @
*Hipro soybean meal is sold on a per unit of protein basis, the
average protein content of the generic
product used in the formulations is 46.8%. @Hipro quality 46%
crude protein.
The shadow price and the added value of high quality soybean
meal depends on the
costs of all protein rich feedstuffs offered on the market, the
costs of energy rich
feedstuffs (grains and fats & oils), the species for which a
feed is formulated and the
animal category. The inclusion rate of Hipro soybean meal is
highest in poultry feeds (10-
30%). A higher quality soybean meal is defined as a product with
a higher amino acid
content per unit of protein (specifically lysine) and a higher
organic matter and protein
(amino acid) digestibility, resulting in higher digestible amino
acid and energy matrix
value. Hipro soybean meal is defined as containing on average
46-47% crude protein.
The calculated value differences for Hipro soybean meal by
origin are:
Table 2. Value differences (+/-) of Hipro SBM in €/100 kg among
origins, due to different nutrient values
(see Appendix for matrix values), for feeds for different
species (based on a Hipro SBM price of
€ 30.40/100 kg for August in week 35, 2017)
Argent.
Swine
U.S.
U.S.
Argent.
Layer
U.S.
U.S.
Argent.
Broiler
U.S.
U.S.
vs Brazil vs Brazil vs Arg. vs Brazil vs Brazil vs Arg. vs
Brazil vs Brazil vs Arg.
Protein € -0.36 -0.29 +0.08 -0.47 -0.37 +0.11 -0.64 -0.50
+0.14
Energy € -0.37 +0.09 +0.46 -0.35 +0.15 +0.51 -0.62 +0.47
+1.08
Dig. AA €* +0.22 +1.46 +1.23 +0.23 +0.44 +0.19 +0.20 +0.69
+0.50
Total € -0.51 +1.26 +1.77 -0.59 +0.22 +0.81 -1.06 +0.66
+1.72
*Rest caused by differences in amino acid digestibility and
mineral content (P), see table 10.
In conclusion
The Hipro soybean meal price decreased altogether with € 0.30
during the last two months.
The added value of high quality Hipro soybean meal has decreased
in swine as weel as in
layer and feeds. The lower Hipro soybean meal price affected the
value differences of Hipro
soybean meal from Brazil versus Argentina almost equally in the
there feed categories. The
higher grain (with the exception of maize) and fat & oil
prices increased the value difference
of Hipro soybean meal from the U.S. versus Argentina the most in
swine and broiler
feeds.
-
5 Schothorst Feed Research B.V.
The added value due to differences in digestible amino acid and
phosphorus content
decreased due to both the lower Hipro soybean meal price as well
as those of synthetic
amino acids, especially in swine and layer feeds.
Hipro soybean meal from the United States has therefore f.i. a €
2.20-6.60/1000 kg
higher value (absolute) than Brazilian Hipro SBM in poultry
feeds. However compared to
the Argentinean origin the added value of U.S. SBM is € 8
.10-17.20/MT. U.S. Hipro
soybean meal has the highest added value for swine (€
12.60-17.70) and broiler (€ 6.60-
17.20) feeds, followed by layer feeds (€ 2.20-8.10/MT).
Differences in the energy plus
digestible amino acid + P content together contribute
significantly more to the added
value of Hipro soybean meal than differences in the protein
content.
On an equal protein content basis the value differences (in
energy, mineral and digestible
amino acid content) are € 2.20-12.60 (U.S. vs Brazil) and €
8.10-17.70/MT (U.S. vs Arg) .
1. Introduction
Swine and poultry feeds are formulated via a Least Cost
Formulation (LCF)-program to
evaluate the value of soybean meal of different quality (origin)
and different regions (with
differing feedstuff prices/ availability). Market and future
prices of feedstuffs for the
Dutch feed industry of week 35 are used for the current period
(September) and the
November-January (2018) period. Current feedstuff prices
obtained from the feed industry
in Poland and Romania were used. For Spain feedstuff prices from
the Cambra Oficial de
Comerc Industria i Navegacio de Barcelona were used. For a
listing of all feedstuff prices
for the different regions and periods see table 2 in the
Appendix. Note that the same
feedstuff restrictions and nutrient requirements are used for
all LCF’s. Premix, production
and marketing costs are not included. Matrix values for the
different origins of analyzed
soybean meal samples are used. See the Appendix (table 1) for
approximate analyses and
nutrient values used.
3. Shadow prices soybean meal by origin, the Netherlands
Price developments.
The Hipro (49/3.5) soybean meal price for September has
decreased with € 0.30/100 kg
from week 26 to 35. The Hipro soybean meal price has often
fluctuated this year but
nevertheless been decreasing since spring, the current price is
€ 4.30 below the € 34.70
price of week 16. The November-January price is € 0.50 above the
current price, indicating
that no further decreases are expected. Moreover the future
prices of all other protein rich
feedstuffs as well as those of the grains are higher than
currently.
The grain prices have decreased in the case of wheat and maize
but increased for triticale
and barley. The future prices of maize and wheat are the same as
the current prices. The
prices of soy- and palm oil increased whereas the palm oil fatty
acids decreased. The price
of toasted soybeans decreased nevertheless a little more than
that of Hipro soybean meal.
The wheat bran prices has decreased.
-
6 Schothorst Feed Research B.V.
In brief the price developments are (€/100 kg):
Table 3. Feedstuff prices of week 35 in the Netherlands for
September and November-January (2018).
Period September Nov-Jan Current
week 35--26
Future vs
current
Grains Maize 17.80 17.80 -1.70 +0.00
Wheat 17.20 17.20 -0.90 +0.00
Triticale 16.40 16.50 +0.20 +0.10
Rye 16.60 16.80 +0.20
Barley 16.20 16.30 +0.70 +0.10
Grain by products Wheat middlings 12.30 12.60 -0.20 +0.30
Maizegluten feed 16.50 16.50 -0.90 +0.00
Fats & oils Animal fat 60.00 -2.00
Palm oil 64.20 62.50 -1.70
Soy oil 73.80 73.60 +1.00 -0.20
PFAD 58.00 58.00 -1.00 -1.00
Toasted Soybeans 39.80 40.10 -0.70 +0.30
Protein rich Hipro SBM 30.40 30.90 -0.30 +0.50
Lopro SBM 28.20 30.70 -0.10 +2.50
RSM 19.20 20.40 -2.40 +1.20
RSE 23.30 23.30 -0.70 +0.00
Lopro Sunfl.sdml* 14.50 14.60 -0.70 +0.10
Maize DDGS
Misc. Peas 22.40 22.50 -1.80 +0.10
PKE 13.80 13.40 +0.50 -0.40
Beet pulp 16.00 15.70 -8.00 -0.30
PFAD (Palm oil Fatty Acid Distillate), Hipro and Lopro SBM (High
and low protein soybean meal), RSM
(rapeseed meal), RSE (rapeseed expellers), Lopro sunfl. sd ml
(Lopro sunflower seed meal) and PKE (Palm kernel expeller)
-
10 Schothorst Feed Research B.V.
The future (November-January) price of rapeseed products,
sunflower seed meal and of
soybean meal are all higher. The future grain prices are all
higher than currently with the
exception of wheat and maize.
Resultantly pig feed costs have increased 0 .4 %, those layer
feeds have decreased 4.6%
and b r o i l e r feed costs have decreased 3.1% compared to
report no 3/2017 based on
feedstuff prices of week 35. The future (November-January) feed
costs for pig feeds are
1 % higher, those of layer feeds 0.6% and for broiler feed 0.5%
higher than currently.
Feedstuff usage in feed formulations.
Pig feed formulations are based on triticale, maize and rye.
Triticale is most the most
attractive cereal, used to the maximum. It is because the
inclusion rate of triticale is limited
to 25% that maize and rye have become also attractive. The value
(shadow price) of rye is
now € 0.62 lower than that of triticale. Maize has a € 0.40
higher shadow price (than
triticale). The value of rye and maize (lower crude protein
content) increases with the lower
plant protein prices. The shadow price of wheat is € 16.86
benchmarked at the triticale
price of € 16.40. Barley (shadow price € 15.97) is also too
expensive. The value of rye on
the other hand is € 0.55 higher than the market price of
triticale. With the lower protein
prices in combination with the lower fat & oil price (PFAD
and animal fat), the value of maize
compared to wheat is now € 1.11 over that of wheat. Peas are not
attractive (shadow price
€ 20.88 at a market price of € 22.40). Wheat middlings are is
still very attractive, the
shadow price is € 12.66, and the usage rate is 20%, which is the
maximum.
The usage rate of rapeseed meal is not at its maximum despite
its (absolute and relative)
much stronger price decrease compared to Hipro soybean meal (-€
2.40 vs. -€ 0.30). The
shadow price of rapeseed meal is € 19.57 and the market price is
€ 19.20. Rapeseed
expellers are still too expensive as their price decreased by
only € 0.70 and thanks to the
lower fat & oil prices. The value in pig feeds of rapeseed
expellers over that of rapeseed
meal has decreased to € 2.70 (was € 3.41 last period), however
the market price difference
is € 4.10). As mentioned peas are not attractive as a protein
and starch source. Maize DDGS
can be very attractive as both a protein and energy source, but
no price was available. The
shadow price has decreased to € 20.07 (was € 21.12) due to the
lower energy and plant
protein prices. Lopro sunflower seed meal remains to be too
expensive, especially with the
relatively high fat & oil and low protein prices. The shadow
price is only € 11.78 (was €
11.40) at a market price of € 14.50. Soybean meal is attractive
as a protein source but less
than in the previous report due to the modest decrease in price
when compared to rapeseed
meal. The usage rate of Hipro soybean meal has decreased from
8.1 to 5.5%. The shadow
price is still € 0.27 higher than the market price. Hipro
soybean meal (shadow price € 30.67
at a market price of € 30.40) is more attractive than Lopro
soybean meal (shadow price €
27.85 at a market price of € 28.20).
Palm kernel expeller is not attractive, the shadow price has
increased to € 12.95 (was €
12.47 last period). Also beet pulp is still too expensive
(shadow price € 14.17), although
the price is very low. Palm oil (market price € 64.20) nor
animal fat with a market price of
-
11 Schothorst Feed Research B.V.
€ 60.00 are attractive compared to palm oil fatty acids (PFAD)
at a price of € 58.00. The
usage rate of fats & oils has decreased to 3.00% as the
result of the use of maize.
Layer feed formulations are mainly maize based (49% usage,
shadow price € 18.91).
wheat is used as well, but only 8.5%. Due to the lower plant
protein prices, wheat is less
attractive as a protein source. The shadow price of maize
decreased from € 19.88 to €
18.91 while the wheat price decreased € 0.90, due to the lower
cereal and soybean meal
prices.
Maize DDGS is mostly very attractive, no market price was
available, and the shadow price
is € 22.01. Maize gluten are not attractive/necessary as a
protein and xanthophyll (egg
yolk coloring) source. Rapeseed expellers are very attractive
with a (maximum) usage of
2.5%. The shadow price is € 26.06 (was € 28.30 previous period)
due to the lower fat & oil
prices and the lower rapeseed meal price. Rapeseed meal is not
attractive compared to
rapeseed expellers, the shadow price of rapeseed meal is € 16.46
(was € 21.34 previous
period) benchmarked at a market price of € 23.30 for rapeseed
expellers). Wheat
m id d l i n g s a r e attractive (shadow price € 12.66 at a
market price of € 12.30). Maize
gluten feed is not attractive (shadow price € 14.83 with a
market price of € 16.50). The
fat addition has decreased from 3.1 to 3.0%, thanks to the use
of wheat instead of barley.
PFAD are the most attractive fat source (shadow price € 60.15 at
a market price of €
58.00). Animal fat us used as well as the maximum use of PFAD is
2%.
Peas are not attractive in layer feeds (shadow price € 1 9 .44
at a market price of €
24.60). Lopro sunflower seed meal remains unattractive (shadow
price € 13.19). The
Hipro soybean meal usage is slightly lower from 20.3 to 19.9%,
due to the use of wheat
instead of barley. The Hipro soybean meal price would need to
decrease below € 23 before
it would replace all rapeseed expellers. No price for maize DDGS
was available. 10% maize
DDGS can replace only 5.3% Hipro soybean meal due to the lower
and poor protein quality
of maize DDGS. Hipro soybean meal (shadow price € 31.54) is more
attractive than the
Lopro quality. Toasted soybeans are not attractive (shadow price
€ 34.71).
Broiler feeds are based on wheat since the usage rate of maize
is maximized (white meat
requirement). Toasted soybeans (-€ 0.70) have become slightly
more attractive: the usage
rate increased from 12.7 to 13.8%, at the expense of hipro
soybean meal (-€ 0.30): from
18.9 to 18.2%. Maize gluten meal (60% protein) is too expensive
at € 76.00. Shadow price
is € 59.68. Rapeseed products are not attractive. Rapeseed
expellers are more likely to be
attractive than rapeseed meal with the high fat & oil
prices. The rapeseed expellers’ price
needs to decrease with € 0.49 before it becomes attractive but
that of rapeseed meal with
€ 4.37. Maize DDGS is also too expensive, the shadow price is €
20.46 (compared to layers
€ 22.01). Peas are not attractive (shadow price € 20.62 at a
market price of € 22.40). The
shadow price of Hipro sunflower seed meal (32% crude protein) is
only € 8.92. The value of
Lopro sunflower seed meal is even considerably lower: €
2.48.
PFAD is the most attractive fat source, usage is maximum: 2.5%
(shadowprice €
64.63 at a market price of € 58.00. Animal fat is almost equally
interesting.
-
12 Schothorst Feed Research B.V.
Use is 3%. The added fat sum is maximized at 5.5% . If only
plant oils are used a
combination of PFAD, palm oil and soy oil needs to be used in
order to ensure proper fat
digestion (u/s ratio). The shadow price of animal fat is € 62.16
(at a market price of €
60.00), due to the C18:2 maximum restrictions.
Value of Hipro soybean meal in feed formulations.
Hipro soybean meal is the most interesting soybean meal source
for all feeds, Lopro
soybean meal is not attractive. The shadow price of Hipro is €
30.67 in the grower/finisher
pig feeds, € 31.54 in the layer feed and € 31.07 in the broiler
feed at a market price of €
30.40. The spread in the Hipro soybean meal price has increased
from € 0.28 to € 0.37 in
swine feeds, from € 0.44 to € 1.14 in layer feeds. In
broilerfeeds it decreased from € 1.06
to € 0.67. In broiler feeds usage of rapeseed products will
increase the value and spread
due to the high protein quality of soybean meal as will maize
DDGS usage in layer feeds.
On the other hand a higher usage rate of Hipro soybean meal will
decrease the (price)
margins.
The shadow price of the Lopro quality (42.8% crude protein) is €
27.85 in the
grower/finisher pig feeds, € 26.97 in the layer feed and € 24.83
in the broiler feed at a
market price of € 28.20. Consequently this makes Lopro soybean
meal too expensive for
all feeds, the price is € 0.35 too high for pig feeds, € 1.23
for layer and even € 3.37 for
broiler feeds (compared to the Hipro quality and price). Or more
practical the difference in
value between the Lopro and Hipro soybean meal is € 2.55 (was €
2.64) in pig, € 3.43 (was
€ 3 .47) in layer and € 5 .57 (was € 5 .66) in broiler feeds,
while the market price differs
€ 2.20. Lopro soybean meal has become relative more interesting
due to the decreased
price of Hipro soybeanmeal.
Toasted soybeans are still not attractive compared to Hipro
soybean meal (€ 30.40) and
soy oil (€ 73.80) for September as a result of the price
decrease of toasted soybeans and
the price increase of soy oil. The market price of toasted beans
is at € 39.80 higher than
the formula: 75% Hipro + 7.5% maize + 17.5% SBO = 30.40*0.75 +
17.80*0.075
+73.80*0.175 = € 37.05 (was € 37.23 last period). When other fat
sources are used
instead of soy oil, toasted soybeans are even less attractive.
The ‘shadow price’ of
toasted soybeans drops to € 34.28 with PFAD. Consequently
compared to palm oil fatty
acids toasted soybeans are € 5.52 too expensive. In layer feeds
therefore no toasted
soybeans are used. In broiler finisher feeds the usage rate is
13.8%.
Hipro soybean meal is therefore (still) an attractive protein
source next to toasted
soybeans, rapeseed meal/expellers and maize DDGS in all
feeds.
The usage rate of soybean meal is:
5.5% Hipro in pig grower/finisher.
20% Hipro in the layer feeds.
18% Hipro in broiler grower/finisher feeds (additionally 14%
toasted soybeans are
used as a protein and fat source).
-
13 Schothorst Feed Research B.V.
Value differences (€/100 kg) of soybean meal of differing
qualities in the Netherlands
The matrix values of the generic CVB Hipro soybean meal and the
different origins are
listed in table 1 of the Appendix. The (digestible) energy
content varies among the
different origins along with the protein and amino acid content
and digestibility. Hipro
soybean meal from the U.S. has equal or higher nutrient values
for digestible amino acids
compared to the generic CVB Hipro soybean meal and the highest
energy content of all
Hipro soybean meal products. This is reflected in the shadow
prices of the three origins
compared to the generic product offered on the Dutch market for
the different periods in
table 4 (see also table 12 ‘price effect of variation in
nutrient value’).
Table 4. Value differences (+/-) of Hipro SBM in €/100 kg among
origins (Argentine, Brazil and the U.S.) in
feeds for different species (based on a Hipro SBM price of €
30.40 for September and € 30.90 for
November-January in the Netherlands for week 35)
Swine
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Layer
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Broiler
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
November
Dec.-Jan.
-0.51 +1.26 +1.77
-0.54 +1.23 +1.77
-0.59 +0.22 +0.81
-0.61 +0.19 +0.80
-1.06 +0.66 +1.72
-1.06 +0.65 +1.71
The value of Hipro soybean meal from Argentina is €
0.51-1.06/100 kg lower than the
one from Brazil. Hipro soybean meal from the U.S. has a €
0.22-1.26 higher value than
the one from Brazil, despite a lower crude protein content, and
€ 0.81-1.77 more than
the one from Argentina. The highest added value of high(er)
quality soybean meal is
obtained in pig (€1.26-1.77) and broiler (€ 0.66-1.72) feeds,
compared to layer feeds (€
0.22-0.81). The added value of high(er) quality Hipro soybean
meal has decreased in
a l l f eed s due to the lower soybean meal prices. It was €
1.27-1.82 in pig feeds, € 0.22-
0.83 in layer and € 0.70-1.77 in broiler feeds. The smallest
decrease was in layer feeds.
The usage rate of Hipro soybean meal decreased in all feeds.
-
14 Schothorst Feed Research B.V.
In conclusion:
1. The price of Hipro soybean meal has decreased during the last
months with ups
and downs after reaching the highest level in 2 years in
May/June. The future price of
Hipro soybean meal for the November-January period is € 0.50
higher than the current
price, indicating that further increases could be expected.
Futures for other plant
proteins are higher than the current prices as well.
2. Hipro soybean meal is attractive for all feeds, but the usage
rate has decreased in all
feeds.
3. Hipro soybean meal is more attractive than Lopro soybean meal
for all feeds.
4. The difference in value between the Lopro and Hipro soybean
meal is € 2.55 in pig,
€ 3.43 in layer and € 5.57 in broiler feeds, in favour of hipro.
Lopro soybean meal
has become relative more interesting due to the lower protein
prices and the lower
prices of some fats and oils.
5. The added value of high(er) quality Hipro soybean meal in pig
and layer feeds has
decreased due to the lower soybean meal prices but remains high
in broiler feeds due
to the still relatively high fat & oil prices.
6. U.S. soybean meal is worth € 1.77/100 kg more than
Argentinean soybean meal in
swine feeds, € 0.80-0.81 in layer feeds and € 1.71-1.72 in
broiler feeds.
7. U.S. soybean meal is worth € 1.23-1.26/100 kg more than
Brazilian soybean meal in
swine grower/finisher feeds, € 0.19-0.22 in layer feeds and €
0.65-0.66 in broiler
grower/finisher feeds.
8. The additional value of U.S. soybean meal is highest over the
ones from Brazil or
Argentina in pig and broiler feeds in both periods.
-
15 Schothorst Feed Research B.V.
3.1 Shadow prices soybean meal by origin, Spain
Price developments.
Feedstuff prices of week 35 were obtained from the Cambra
Oficial de Comerc Industria i
Navegacio de Barcelona. The Hipro (49/3.5) soybean meal price
has increased over the last
two months with € 0.20 to € 31.20 (September, week 35). The
Hipro soybean meal price
in Spain is € 0.80 higher than in the Netherlands but € 1.40
higher than in Poland.
Sunflower seed meal increased more in price than Hipro soybean
meal. Rapeseed meal
has decreased in price. The grain prices have decreased for
wheat and maize but have
increased in the case of barley and sorghum. The maize price is
€ 0.50 lower than in the
Netherlands. Barley, triticale and wheat are higher priced than
in the Netherlands. Overall
the grain and rapeseed meal prices are lowest in Eastern Europe
(see Table 2B).
In brief the price developments are (€/100 kg):
Table 5. Feedstuff prices of week 35 in Spain for September
Period September Change
week 43-35
Grains Maize 17.30 -0.45
Wheat 18.30 -0.30
Triticale 17.30
Sorghum 17.60 +0.30
Barley 16.60 +0.10
Grain by products Wheat middlings 14.20 +0.20
Maizegl. feed
Fats & oils Animal fat 73.00 +0.50
Palm oil 64.00 -5.70
Soy oil 72.00 -0.70
Fatty acids 66.50 -11.00
Toasted Soybeans
Protein rich Hipro SBM 31.20 +0.20
Lopro SBM
RSM 21.10 -1.20
RSE
Lopro Sunfl. sd ml. 18.20 +2.70
Maize DDGS
Misc. Peas
PKM
Beet pulp 19.60 +0.40
PFAD (Palm oil Fatty Acid Distillate), SBM (soybean meal), RSM
(rapeseed meal), RSE (rapeseed expellers), Hipro sunfl. sd ml
(Hipro sunflower seed meal) and PKM (Palm kernel meal)
-
16 Schothorst Feed Research B.V.
A price for t r i t i c a l e was available this time, it is €
1.00 cheaper than wheat and has
the same price as maize. Triticale and maize are consequently
attractive for pig feeds. For
layers only maize is used. For broilers wheat and sorghum
alongside a limited amount
(max 10%) of maize.
Pig and broiler feeds costs have decreased by 0.4% compared to
week 26. Layer feed has
become 1.2% cheaper
Feedstuff usage in feed formulations.
Pig feed formulations are based on triticale and maize. Sorghum
(shadow price € 17.20),
wheat (shadow price € 16.70) and barley (shadow price € 16.07)
are too expensive.
For rye no price was available. Its value is € 16.45 in pig
grower -finisher, which is
€ 0.15 lower than the barley price. Barley is the cheapest grain
(€ 0.70 cheaper than
maize and triticale, € 1.00 than milo corn and € 1.70 than
wheat). The shadow price of
barley is however € 16.07, or the price has to decrease € 0.53
before it will replace
maize or triticale in the feed formulation. The shadow price of
triticale is € 17.71 which
is € 0.41 higher than the maize price. The value of triticale is
h i g h e r t h a n t h e
o n e o f maize a s i t co n ta in s m or e p r o t e in . Wheat
middl ings are attractive
with a shadow price of € 14.55. Beet pulp remains unattractive
(shadow price € 14.08).
The price is at € 19.60, which is much higher than in the
Netherlands (€ 16.00).
Palm kernel expeller has a shadow price of only € 13.90. The
reason is the high fat & oil
prices, which make low energy feedstuffs unattractive.
The shadow price of Hipro soybean meal is € 31.83 at the market
price of € 31.20. The
Hipro soybean meal usage has decreased from 12 to 9%, because
rapeseed meal has
once again become attractive (price change rapeseed meal -€ 1.20
compared to +€ 0.20
for Hipro soybean meal). The price margin of Hipro soybean meal,
however, has decreased
from € 5.20 to € 0.63. Rapeseed meal is attractive but the usage
rate at 3% is not
maximized. The price margin is therefore narrow with a shadow
price of € 21.28 and a
market price of € 21.10. The shadow price of rapeseed expellers
at € 23.31 is
considerable higher. The added value of rapeseed expellers over
rapeseed meal has
slightly decreased from € 2.52 to € 2.03 as a result of lower
fat & oils prices. Both Lopro
and Hipro sunflower seed meal are still not attractive, the
shadow price of the Lopro quality
is only € 14.34. Hipro sunflower seed meal is more likely to be
attractive than Lopro
sunflower seed meal, the value of the Hipro quality is now €
2.75 (was € 3.24) higher than
the value of the Lopro. No price for maize DDGS was available,
the shadow price is €
21.00 (there are no maximum C18:2 restrictions currently because
no fat or oil is
added). Due to the high triticale and maize usage, a low
rapeseed meal and relatively low
usage of grain by-products (wheat middlings), no animal fat or
plant oil is needed. The
shadow price of animal fat is only € 48 at a market price of €
73).
-
17 Schothorst Feed Research B.V.
Layer feed formulations are again solely based on maize, no
wheat is used. Wheat is €
1.00 more expensive than maize but lower in energy and therefore
with the lower plant
protein prices not attractive as an additional source of
protein. The shadow price of wheat
is € 16.97. The wheat price would have to decrease with € 1.33
before wheat would
replace maize (partly) again. If maize becomes € 1.20 more
expensive sorghum will enter
the formula. Rapeseed meal is currently not attractive. Its
value is € 20.70 at a market
price of € 21.10.
Lopro sunflower seed meal is not attractive either, the shadow
price is € 11.91 at a market
price of € 18.20. The usage rate of Hipro soybean meal has not
changed since the
complete formula has remained the same. Wheat middlings are is
not attractive for layer
feeds (shadow price € 11.25, market price € 14.20). Rapeseed
expellers have a much
higher value than rapeseed meal (shadow price € 28.63, which is
€ 7.93 more than the
value of rapeseed meal) but no market price was available. Hipro
sunflower seed meal
has a shadow price of € 16.97, which is € 5.06 over the one of
Lopro sunflower seed meal.
No price for maize DDGS was available, but it can be attractive
(shadow price € 21.91),
especially since fat & oil prices are still relatively high.
The shadow price of fish meal is €
59.77 which is a lot lower than the market price of € 99.50).
Only soy oil is used as added
fat & oil source. 1.6% soy oil is used. As much as this is
not needed to meet the minimum
C18:2 requirement so it is used as an energy source. Animal is
not attractive as it is even
more costly than soy oil. The shadow price of animal fat is €
66.24. The usage rate of fat
& oil is low due to the high usage of maize and low usage of
grain by-products.
Broiler feeds are based on wheat and sorghum since the usage
rate of maize is maximized
(white meat requirement). Toasted soybeans are used in addition
to Hipro soybean meal.
The usage rate of toasted soybeans has increased from 8 to 9%
with the high toasted
soybeans price. Hipro soybean meal is the major protein source,
the usage rate has
therefore decreased from 23.5 to 22.7%. Fish meal is not
attractive, the shadow price is
€ 80 at a market price of € 99.50. Rapeseed meal remains
unattractive (shadow price €
12.09 at a market price of € 21.10) and so will Hipro sunflower
seed meal be (shadow
price less than € 5). Maize DDGS will be attractive at a price
below € 19.92. The shadow
price for peas is € 20.51. Palm oil is used as the cheapest fat
source in conjunction with
soy oil, fatty acids mixture and a small amount of animal fat.
Toasted soybeans have a
shadow price of € 55.50 due to the maximum usage rate of fat
& oils and C18:2
restrictions.
Value of Hipro soybean meal in feed formulations.
The shadow price of Hipro is € 31.83 in the grower/finisher pig
feeds, € 31.82 in the
layer feed and € 39.14 in the broiler feed at a market price of
€ 31.20. The spread in the
Hipro soybean meal price (without affecting the usage rate) is
highest in broiler feeds
(€ 7.94) and equally low in pig and layer feeds (€ 0.62-0.63).
The spread has decreased
in layer and pig feeds due to the lower Hipro soybean meal
price. It has increased slightly
in broiler feeds. In pig feeds the spread h a s d e creased just
as the usage rate (from 11
to 9%). The usage rate of Hipro soybean meal is highest in
poultry feeds.
-
18 Schothorst Feed Research B.V.
The shadow price of the Lopro quality (42.8% crude protein) is €
28.73 in the
grower/finisher pig feeds, € 27.39 in the layer feed and € 24.42
in the broiler feed.
Consequently the difference in value between the shadow price of
Lopro and the market
price of Hipro soybean meal is € 2.47 in pig, € 3.81 in layer
and € 6.78 in broiler feeds.
The differences were € 2.64 in pig, € 3.75 in layer and € 6.35
in broiler feeds in report no.
3/2017. The value differences have decreased in pig feeds with
the use of rapeseed meal
but have increased in the poultry feeds. In broiler feeds the
value difference between Lopro
and Hipro soybean meal is largest because these feeds are most
concentrated in terms
of digestible energy and amino acids.
The shadow price of toasted soybeans is € 31.11 in pig and €
35.98 in layer feeds. In
broiler feeds toasted beans have to be used because the amount
of added fat & oil is
maximized (shadow price € 45.50 at a soy oil price of €
72.00).
Hipro soybean meal is therefore the most attractive protein
source especially in poultry
feeds, next to rapeseed meal and probably maize DDGS.
The usage rate of Hipro soybean meal is:
9% usage in pig grower/finisher pig feeds.
23% in the layer feeds.
22-23% in broiler grower/finisher feeds, additionally (9%)
toasted soybeans are used
as a protein and fat source.
Value differences (€/100 kg) of soybean meal of differing
qualities in Spain
The matrix values of the generic CVB Hipro soybean meal and the
different origins are
listed in table 1 of the Appendix. The (digestible) energy
content varies among the different
origins along with the protein and amino acid content and
digestibility. Hipro soybean
meal from the U.S. has equal or higher nutrient values for
digestible amino acids
compared to the generic CVB Hipro soybean meal and the highest
energy content of all
Hipro soybean meal products. This is reflected in the shadow
prices of the three origins
compared to the generic product offered on the Spanish market
for the different periods
in table 6 (see also table 12 ‘price effect of variation in
nutrient value’).
Table 6. Value differences (+/-) of Hipro SBM in €/100 kg among
origins (Argentine, Brazil and the U.S.)
in feeds for different species (based on a Hipro SBM price of €
31.20 for September in week 35
Swine
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Layer
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Broiler
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
September -0.48 +1.16 +1.64 -0.64 +0.26 +0.90 -1.27 +0.77
+2.04
-
19 Schothorst Feed Research B.V.
The value of Hipro soybean meal from Argentina is €
0.48-1.27/100 kg lower than the
one from Brazil. Hipro soybean meal from the U.S. has a €
0.26-1.16 higher value than
the one from Brazil, despite a lower crude protein content, and
€ 0.90-2.04 more than
the one from Argentina. The highest added value of high(er)
quality soybean meal is
obtained in pig (€ 1.16-1.64) and broiler (€ 0.77-2.04) feeds,
in layer feeds the added
value is € 0.26-0.90.
The added value is influenced by the Hipro soybean meal market
price, the quality
differences between origins, the feeding value per livestock
category and the feed
composition. The value of high(er) quality Hipro soybean meal
from the U.S. has
decreased in pig feeds from € 1.35-1.87 to € 1.16-1.64,
increased in broiler feeds from
€ 0.76-1.96 to € 0.77-2.04 compared to report no 3/2017 due to
the lower plant protein
prices. In layer feeds it hardly changed: from € 0.27-0.90 to €
0.26-0.90. The value of
the U.S. versus the Argentina origin decreased the most in pig
and broiler feeds because
the added value was the highest.
In conclusion:
1. The market price of Hipro soybean meal in Spain increased
with € 0.20 over the last
two months (compared to report no 3/2017). The price of Hipro
soybean meal in Spain
increased where we saw a decrease of € 0.30 in the Netherlands.
So the Hipro soybean
meal price in Spain is € 0.80 higher than in the Netherlands and
€ 1.40 higher than in
Poland.
2. The usage rate of soybean meal is high (23%) and has
increased in poultry feeds, the
added value of high(er) quality Hipro soybean meal is highest in
pig and broiler feeds.
3. Although the Hipro soybean meal price increased the added
value of high(er) quality
Hipro soybean meal has decreased in swine feeds.
4. The difference in value between the shadow price of Lopro and
the market price of
Hipro soybean meal is € 2.47 in pig, € 3.81 in layer and € 6.78
in broiler feeds, has
decreased in pig feed but increased in layer and broiler feeds
due to the higher hipro
soybean meal price.
5. U.S. soybean meal is worth € 1 .64/100 kg more than
Argentinean soybean meal in
swine feeds, € 0.90 in layer feeds and € 2.04 in broiler feeds.
The additional value of
U.S. soybean meal is highest over that from Argentina in broiler
feeds.
6. U.S. soybean meal is worth € 1.16/100 kg more than Brazilian
soybean meal in swine
grower/finisher feeds, € 0.26 in layer feeds and € 0.77 in
broiler grower/finisher
feeds. The additional value of U.S. soybean meal is highest over
the one from Brazil in
pig feeds.
-
20 Schothorst Feed Research B.V.
3.2 Shadow prices soybean meal by origin, Poland
Price developments.
The price of all feedstuffs have decreased in Poland, especially
maize, (based on
feedstuff prices of week 43, 2016 and compared to report no.
08/2016) except the
prices of fat & oil. Hipro soybean meal decreased in price
but relatively less than
rapeseed products and more than maize DDGS. Also in most other
regions the price of
soybean products has decreased but considerable more (€ 1.90 in
the Netherlands and
€ 0.90 in Spain). The price of Hipro soybean meal price in
Poland is nevertheless lowest
of these regions. On the other hand rapeseed meal is priced
considerable lower in Poland
than in the Netherlands (-€ 1.05) and Spain (-€ 2.55). Maize
DDGS is also offered for an
attractive price. Hipro soybean meal is therefore relatively
expensive in Poland.
In brief the price developments are (€/100 kg):
Table 7. Feedstuff prices of week 35 in Poland for November
Period November Change
week 43-35
Grains Maize 16.90 +0.40
Wheat 14.55 -2.35
Triticale 13.60 -2.40
Rye
Barley 13.65 -0.00
Grain by products Wheat bran 10.45
Maizegl. feed meal
Fats & oils Animal fat 69.70 -0.40
Palm oil
Soy oil 73.00 -3.70
Fatty acids
Toasted Soybeans
Protein rich Hipro SBM 29.80 -1.30
Lopro SBM
RSM 19.00 -1.50
RSE
Hipro Sunfl. sd ml.
Maize DDGS 21.10 -0.30
Misc. Peas
PKM
Beet pulp 15.95 +0.40
PFAD (Palm oil Fatty Acid Distillate), SBM (soybean meal), RSM
(rapeseed meal), RSE (rapeseed expellers), Hipro sunfl. sd ml
(Hipro sunflower seed meal) and PKM (Palm kernel meal)
-
21 Schothorst Feed Research B.V.
Pig feed costs have decreased with 4.4, layer feed costs with
2.2 and broiler feed costs
with 5.8% compared to report no.3 /2017. Obviously the high
inclusion rates of wheat
and or triticale in pig and broiler feeds have affected the feed
costs the most.
Feedstuff usage in feed formulations.
Pig feed formulations are based on triticale, wheat and barley.
No price was available for
rye which can be very attractive for pig feeds (shadow price €
14.33). Triticale is the
cheapest grain at € 13.60 (shadow price € 15.46), however the
usage rate of triticale is
maximized at 25%. Barley is almost as cheap and therefore
extensively used. The
shadow price is € 14.16. Wheat has a shadow price of € 14.67,
which is not much higher
than the market price of € 14.55. Barley is used as the maximum
percentages of
triticale and wheat are used (both 25%). For barley there is no
limit, therefore use is
higher: 33%. Maize is comparatively expensive: shadow price is €
16.40, market price €
16.90.
Wheat bran is not attractive at a price of € 10.45. Shadow price
is only € 9.51. Animal
fat becomes interesting after the maximum soy oil has been used.
It has a shadow price
of € 77.52 at a market price of € 69.70. Beet pulp (shadow price
€ 11.67) is not attractive
either.
The prices of rapeseed meal (and maize DDGS) have decreased,
just as Hipro soybean
meal. Rapeseed expellers are not available. The shadow price of
rapeseed meal is € 16.53
(at a market price of € 19.00). It is not interestingly priced.
The value difference between
rapeseed meal and expellers has hardly changed and is € 4 .15.
Maize DDGS is not
attractive, the shadow price is € 19.58 at a market price of €
21.10. The inclusion rate
of Hipro soybean meal has decreased with 1.7% only as a result
of using triticale and wheat
instead of maize.
Layer feed formulations are based on maize and wheat. Wheat has
become attractive
with its € 2.35 lower price compared to maize, that became more
expensive (+€ 0.40).
The shadow price of wheat is € 15.50 at a market price of €
14.55. Wheat has therefore
a € 0.35 lower value than maize currently. With the lower fat
& oil prices and lower
plant protein prices the value of maize over wheat has decreased
considerable. The
Hipro soybean meal usage has decreased 1.1% by replacing about
17% maize with
wheat. Rapeseed meal remains un-attractive (shadow price € 18.63
at a market price
of € 19.00. The value of rapeseed expellers is € 26.83. This
creates a € 8.20 difference.
Maize DDGS is also still un-attractive with a value of € 19.65
and a price of € 21.10.
Wheat bran is of no interest either, the shadow price is € 8.19.
The shadow price of
Hipro sunflower seed meal is € 14.41 while the shadow price of
the Lopro quality is only
€ 8.96.
-
20 Schothorst Feed Research B.V.
Animal fat is not used. Soy oil is used instead.
Broiler feeds are mainly based on wheat since the usage rate of
maize is maximized (white
meat requirement). 14% toasted soybeans are used in addition to
Hipro soybean meal
since the fat & oil addition is maximized. Hipro soybean
meal is the major protein source
at the lower price. The inclusion rate remains at 18% along with
14% toasted soybeans.
Rapeseed expellers are not available (shadow price € 21.29).
Rapeseed meal is not at all
attractive (shadow price € 11.64). The added value of rapeseed
expellers over rapeseed
meal has nevertheless increased from € 8.91, in report no.
3/2017, to € 9.65. Maize DDGS
is not attractive (shadow price € 18.29 at a market price of €
21.10). The shadow price for
peas is € 20.07. Both animal fat and soy oil are used as fat
sources. The soy oil usage is
limited due to the C18:2 restrictions.
Value of Hipro soybean meal in feed formulations.
The shadow price of Hipro is € 35.11 in the grower/finisher pig
feeds, € 30.39 in the
layer feed and € 32.25 in the broiler feed at a market price of
€ 29.80. The spread in the
Hipro soybean meal price is € 5.31 in the pig feed, € 0.59 in
layer feeds and € 2.45 in
broiler feeds, without its usage rate being affected. The spread
was € 2 .83 in the pig
feed, € 0.50 in layer feeds and € 2.41 in broiler feeds in
report no. 3/2017. The spread
(value compared to the market price) has increased in pig feeds
since no rapeseed
products are used in pig feeds. In layer and broiler feeds the
spread has hardly changed.
The usage rate of Hipro soybean meal has decreased in pig- and
layer feeds. In broilerfeeds
it has not changed.
The shadow price of the Lopro quality (42.8% crude protein) is €
26.87 in the
grower/finisher pig feeds, € 25.72 in the layer feed and € 23.36
in the broiler feed
benchmarked at the market price of € 29.80 for Hipro soybean
meal. Consequently the
difference in value between the shadow price of Lopro and the
market price of Hipro
soybean meal is € 2.93 in pig, € 4.08 in layer and € 6.44 in
broiler feeds. Last period, in
report no. 3/2017, the difference were € 3.26 in pig, € 4.71 in
layer and € 6.67 in broiler
feeds. The price difference has decreased in pig feeds due to
the lower Hipro soybean meal
price. In layer and broiler feeds the value of Hipro over Lopro
soybean meal has slightly
increased.
The shadow price of toasted soy beans is € 33.85 in pig and €
35.20 in layer feeds. This
was respectively € 34.76 and € 36.56 in report no. 3/2017. The
value of toasted
soybeans has decreased with the lower Hipro soybean meal price.
In broiler feeds toasted
beans are used because the amount of added fat & oil is
maximized. The use of toasted
soy beans has not changed, so remains 14% (The shadow price is
now € 47.81, was €
49.28).
Hipro soybean meal is therefore the most attractive protein
source especially in poultry
feeds. Rapeseed meal and maize DDGS are too expensive.
-
21 Schothorst Feed Research B.V.
The usage rate of Hipro soybean meal is:
10% usage in pig grower/finisher pig feeds.
22% in the layer feeds.
18% in broiler grower/finisher feeds, additionally (14%) toasted
soybeans are used
as a protein and fat source.
Value differences (€/100 kg) of soybean meal of differing
qualities in Poland.
The matrix values of the generic CVB Hipro soybean meal and the
different origins are
listed in table 1 of the Appendix. The (digestible) energy
content varies among the
different origins along with the protein and amino acid content
and digestibility. Hipro
soybean meal from the U.S. has equal or higher nutrient values
for digestible amino acids
compared to the generic CVB Hipro soybean meal and the highest
energy content of all
Hipro soybean meal products. This is reflected in the shadow
prices of the three origins
compared to the generic product offered on the Polish market for
the different periods in
table 8 (see also table 12 ‘price effect of variation in
nutrient value’).
Table 8. Value differences (+/-) of Hipro SBM in €/100 kg among
origins (Argentine, Brazil and the U.S.)
in feeds for different species (based on a Hipro SBM price of €
29.80 for September in week 35)
Swine
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Layer
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Broiler
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
November -0.68 +1.39 +2.07 -0.72 +0.23 +0.95 -1.21 +0.72
+1.93
The value of Hipro soybean meal from Argentina is €
0.68-1.21/100 kg lower than the
one from Brazil. Hipro soybean meal from the U.S. has a €
0.23-1.39 higher value than
the one from Brazil, despite a lower crude protein content, and
€ 0.95-2.07 more than
the one from Argentina. The highest added value of high(er)
quality soybean meal is
obtained in pig and broiler feeds. The added value of high(er)
quality Hipro soybean has
decreased in pig feeds from € 1.43-2.19 in report no. 3/2017 to
€ 1.39-2.07. In broiler
feeds it increased from € 0.66-1.84 to € 0.72-1.93. In layer
feeds it remained virtually
unchanged from € 0.22-0.96 to € 0.23-0.95.
-
22 Schothorst Feed Research B.V.
In conclusion:
1. The market price of Hipro soybean meal decreased € 1.30 over
the last two months
in Poland in line with, but stronger than in other regions.
2. The price of Hipro soybean meal in Poland is € 1.40 lower
than in Spain and € 0.60
lower than in the Netherlands and € xxx than in Romania. Also
rapeseed meal is
cheaper in Poland than in Spain and the Netherlands. Alternative
proteins like maize
DDGS are available in Poland but not in the Netherlands and
Spain.
3. The value difference between the Lopro and Hipro soybean meal
is € 2.93 in pig, €
4.08 in layer and € 6.44 in broiler feeds.
4. The value of toasted soybeans is € 33.85 in pig and € 35.20
in layer feeds.
5. The usage rate of Hipro soybean meal has decreased in layer
feeds, as now wheat is
used, and also in in pig feeds by using less maize and more
cereals with hiogher protein
levels.
6. U.S. soybean meal is worth € 2 .07/100 kg more than
Argentinean soybean meal in
swine feeds, € 0.95 in layer feeds and € 1.93 in broiler feeds.
The additional value of
U.S. soybean meal is highest over that from Argentina in pig and
broiler feeds.
7. U.S. soybean meal is worth € 1.39/100 kg more than Brazilian
soybean meal in swine
grower/finisher feeds, € 0.23 in layer feeds and € 0.72 in
broiler grower/finisher
feeds. The additional value of U.S. soybean meal is highest over
that from Brazil in pig
feeds.
8. The net effect of the lower Hipro soybean meal price and
lower higher fat & oil
prices is that it decreases the added value of high(er) quality
Hipro soybean meal in
swine feeds, while in broiler feeds the added value is higher
with lower fat prices.
For further information please contact Mr. Jerzy Wiesław
Kosieradzki, USSEC EU Regional
Consultant. Mobile: +48 608 089 443 Email:
[email protected]
mailto:[email protected]
-
23 Schothorst Feed Research B.V.
3.3 Shadow prices soybean meal by origin, Romania, Bulgaria,
Serbia and Macedonia
Price developments.
Compared to the last period (report no. 3/2017) the price of
maize has increased
slightly, whereas the increase of the prices of wheat and
triticale is very strong. Wheat
middlings decreased in price. The prices of maize is the lowest
of all regions. The price
of plant oil has decreased in line with the other regions. The
sunflower seed oil price is
low (in line with a low maize price). Remarkable is the decrease
in the soybean meal
price, while in other regions the Hipro soybean meal has
increased (Netherlands, Spain)
or decreased much less (Poland). The prices of sunflower seed
meal has decreased only
little while maize DDGS remained the same. The w h e a t a n d t
r i t i c a l e p r i c e s a r e
h i g h t h i s t i m e , e v e n compared to North Western and
Southern Europe.
In brief the price developments are (€/100 kg):
Table 9. Feedstuff prices of week 35 in Romania for
September
Period September Change
week 26-35
Grains Maize 14.47 +0.27
Wheat 19.81 +4.81
Triticale 21.70 +6.60
Sorghum
Barley 13.20 0.0
Grain by products Wheat middlings 10.10 -0.40 Maizegl. feed
13.60 0.0
Fats & oils Animal fat
Palm oil
Sunflower oil 64.60 -4.50
Fatty acids
Toasted Soybeans 36.70 -0.30
Protein rich Hipro SBM * 29.50 -4.50 Lopro SBM
RSM
Maizegluten 60 70.00 0.00
Hipro Sunfl. sd ml. 20.30 -0.10
Maize DDGS 19.50 0.00
Misc. Peas
Beet pulp 12.50
0.00
*Hipro 46% crude protein. PFAD (Palm oil Fatty Acid Distillate),
SBM (soybean meal), RSM (rapeseed meal),
RSE (rapeseed expellers), Hipro sunfl. sd ml (Hipro sunflower
seed meal) and PKM (Palm kernel meal)
-
24 Schothorst Feed Research B.V.
The maize price has increased € 0.27 in Romania, € 0.40 in
Poland, € 0.05 in Spain but
decreased € 1.70 in the Netherlands. The wheat price has
increased with € 4.81 in
Romania but decreased with € 2.35 in Poland, € 0.30 in Spain and
€ 0.90 in the
Netherlands. The Hipro soybean meal price decreased € 1.30 in
Poland, € 4.50 in
Romania € 0.30 in the Netherlands but increased € 0.20 in
Spain.
Resultantly pig feed costs decreased 2.4% compared to the last
period (report no.
3/2017), those of layer with 4.2% and those of broiler feeds
with 5%. No price was
available for milo corn, which, when priced attractively, can
reduce feed costs
substantially.
Feedstuff usage in feed formulations.
Pig feed formulations are based on maize and barley. These two
have become
considerably more attractive due to the fact that wheat and
especially triticale, increased
a lot in price. The value of wheat is € 0.78 lower than the one
of triticale at a market price
of € 21.70 for triticale. The value of maize is € 15.28. So at a
price of € 14.50 it is very
interesting. The shadow price of barley is € 13.86 benchmarked
at the maize price of €
14.50. The value of maize over barley is now € 2.30.
Milo corn can be very attractive compared to maize in Romania,
due to the higher protein
content, the shadow price is € 14.55 (to be compared to the
market price of maize
€14.50). The usage rate of milo corn is restricted to 25%, but
can be higher if the tannin
content is low. The usage rate of maize and milo corn (and also
maize DDGS) is restricted
because C18:2 limitations are used.
Peas can be a very attractive starch and protein source but no
price was available
(shadow price € 19.07). Hipro sunflower seed meal is still not
attractive, although the
price decreased slightly. On the other hand a higher sunflower
seed oil price will decrease
the value of the Hipro sunflower seed meal since the energy
content is low. The shadow
price of Hipro sunflower seed meal decreased from € 14.59 to €
13.24 due to the lower
soybean meal price. Wheat middlings are now attractive since
maize DDGS is too
expensive. The usage rate is 5% with a shadow price of € 11.34.
No added fat or oil is
needed with the use of so much maize. Prices for rapeseed meal
(shadow price € 18.50)
and rapeseed expellers (shadow price € 20.98) were not
available. The additional value
of rapeseed expellers over rapeseed meal is almost € 2.50. This
is due to the higher maize
price and despite the lower sunflower seed oil price. The value
of wheat DDGS (shadow
price € 13.61) is considerable lower than that of maize DDGS (€
16.90). The usage of
soybean meal is the same at 12%. The feedcomposition has not
changed at all since
report nr. 3.
Layer feed formulations are once again based on maize only.
Wheat remains too
expensive, certainly with the sharp increase of the price. Also
the lower priced soybean
meal favours the use of maize. The value of maize over wheat has
however been reduced
from € 0.32 to -€ 0.04 due to the lower plant protein prices.
The maize price would have
to increase to € 16.05 before it would start to be (partly)
replaced by (some) wheat.
-
25 Schothorst Feed Research B.V.
Toasted soybeans are not attractive as the soybean meal price
decreased with € 4.50
and soy beans only with € 0.30. The usage rate is 22.5% (was
14%) with a shadow price
of € 33.14. Maize DDGS is attractive, use is 2.3%, the shadow
price is € 20.73.
The shadow price of milo corn is € 13.71. Wheat middlings are
not attractive, the shadow
price is only € 8.14 due to the low energy content, the still
relatively high plant oil price
and the interestingly priced maize and maize DDGS. Sunflower
seed oil is as no soy beans
are used. The shadow price is € 78.52 and that of animal fat €
66.74. Peas can also be
attractive for layer feeds, the shadow price is € 17.39 (which
is now more than the shadow
price of € 19.07 in pig feeds). Hipro sunflower seed meal is too
expensive (shadow price
€ 15.07). The shadow price of rapeseed expellers (shadow price €
27.75) is significantly
higher than the one of rapeseed meal (shadow price € 19.29). The
Hipro soybean meal
usage is decreased from 21 to 11% due to a 15% addition of
toasted soybeans.
Broiler feeds are maize based (no white meat requirement). Wheat
is too expensive
(shadow price € 10.76), mainly due to the low energy content
compared to maize.
Toasted soybeans are now much less attractive since their price
has decreased little when
compared to soybean meal. Now nearly 30% soybean meal is used
and only 3% soy
beans. More fat is needed now to compensate the low use of soy
beans. The addition rate
is increased from 0.44 to 3.50 %. The shadow price of toasted
soybeans is € 40.10, giving
a margin of € 3.40. The margin in the soybean meal price is €
2.17.
Peas are not likely to be attractive as a protein and starch
source for broiler feeds, the
shadow price is only € 15.36. Hipro sunflower seed meal is still
not attractive due to the
low energy content. Maize DDGS is no longer attractive as an
energy + protein source (due
to C18:2 limits).The value of wheat DDGS is equally low. Prices
for rapeseed meal
(shadow price € 14.35) and rapeseed expellers (shadow price €
20.84) were not
available, rapeseed expellers are obviously more likely to be
attractive. Hipro soybean
meal is therefore the most attractive protein source. As stated
before there is only a
modest use of toasted soybeans (3.2 %).
Value of Hipro soybean meal in feed formulations.
The shadow price of the (46% Crude Protein) Hipro soybean meal
is € 42.37 in the
grower/finisher pig feeds, € 33.14 in the layer feed and € 31.67
in the broiler feed based
on the market price of € 29.50. This gives a spread of € 12.87
in pig feeds, € 3.64 in layer
feeds and € 2.17 in broiler feeds. In the previous period,
report no. 3/2017, these
differences were € 5.85 in pig feeds, € 2.83 in layer feeds and
€ 1.12 in broiler feeds. The
price margins (value) of Hipro soybean meal have increased in
pig feed but decreased in
poultry feeds. The margins are higher in pig (and layer) feeds
due to the usage of alternate
protein sources. In broiler feeds the margin or spread is low
but the inclusion rate of Hipro
soybean meal is highest.
The shadow price of the (47% Crude Protein) Hipro soybean meal
is € 30.12 in the
gower/finisher pig feeds, € 31.26 in the layer feed and € 31.51
in the broiler feed based
-
26 Schothorst Feed Research B.V.
on the 46% crude protein Hipro price of € 29.50.
The shadow price of a (43% Crude protein) Lopro quality is €
27.81 in the grower/finisher
pig feeds, € 26.96 in the layer feed and € 26.28 in the broiler
feed benchmarked at the
46% Hipro soybean meal price of € 29.50. This gives a value
difference of the Hipro versus
the Lopro quality of € 2.31 in pig feeds (was € 3.47 in report
no. 3/2017), € 5.30 in layer
feeds (was € 5.41) and € 5.23 in broiler feeds (was € 6.82). The
value difference between
of Lopro and Hipro soybean meal decreases with lower soybean
meal prices.
The shadow price of toasted beans is € 26.69 in pig, € 34.24 in
layer and € 40.10 in
broiler feeds. Toasted soybeans are therefore used only in
broiler feeds at a market price
of € 36.70. The value is high in poultry, and especially broiler
feeds due to the high energy
concentration and high plant oil prices and low in pig feeds due
to the C18:2 restrictions
(and low energy content).
Hipro soybean meal is therefore used next to toasted soybeans in
broiler feeds and maize
DDGS in layer feeds. The usage rate of soybean meal protein is
lower in pig feeds.
The usage rate of soybean (meal) is:
12% Hipro in pig grower/finisher pig feeds.
22% Hipro in the layer feeds.
30% Hipro in broiler grower/finisher feeds along with 3% toasted
soybeans.
Value differences (€/100 kg) of soybean meal of differing
qualities in Romania
The matrix values of the generic CVB Hipro soybean meal and the
different origins are
listed in table 1 of the Appendix. The (digestible) energy
content varies among the
different origins along with the protein and amino acid content
and digestibility. Hipro
soybean meal from the U.S. has equal or higher nutrient values
for digestible amino acids
compared to the generic CVB Hipro soybean meal and the highest
energy content of all
Hipro soybean meal products. This is reflected in the shadow
prices of the three origins
compared to the generic product offered on the Romania market
for the different periods
in table 10 (see also table 12 ‘price effect of variation in
nutrient value’).
Table 10. Value differences (+/-) of Hipro SBM in €/100 kg among
origins (Argentine, Brazil and the
U.S.) in feeds for different species (based on the 46% CProt
Hipro SBM price of € 36.65 for
November in week 43)
Swine
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Layer
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
Broiler
Argent. U.S. U.S. vs
Brazil vs Brazil vs Arg.
September -0.58 +1.39 +1.97 -0.73 +0.26 +0.99 -1.13 +0.39
+1.52
The value of Hipro soybean meal from Argentina is €
0.58-1.13/100 kg lower than the
one from Brazil. Hipro soybean meal from the U.S. has a €
0.26-1.39 higher value than
the one from Brazil, despite a lower crude protein content, and
€ 0.99-1.97 more than
-
27 Schothorst Feed Research B.V.
the one from Argentina. The highest added value of high(er)
quality soybean meal is
obtained in pig and broiler feeds. In all feeds the added value
of U.S. versus Argentina is
substantially higher than U.S. versus Brazil.
The added value of high(er) quality soybean meal has decreased
in all feeds (except US
vs Brazil in broiler feed) due to the lower Hipro soybean meal
price and the lower maize
and barley prices. The added value in pig feeds went from €
1.65-2.34 in report no.
3/2017 to € 1.39-1.97, in layer feeds from € 0.29-1.22 to €
0.26-0.99 and in broiler feeds
from € 0.35-1.61 to € 0.39-1.52.
In conclusion:
1. The market price of Hipro soybean meal has decreased
significantly in Romania.
Contrary, in other regions the price has decreased to a lesser
extent or even increased
(Spain). However future prices (November-January) in the
Netherlands are € 0.50
higher than the current prices. The price of soybean meal is now
lowest in Romania
of all regions. However it should be considered that the quality
(protein content) is
lower.
2. Hipro soybean meal is more attractive than the Lopro quality.
The value of the Lopro
quality is € 2.87 lower in pig, € 3.73 lower in layer and € 5.23
lower in broiler feeds
than the Hipro (47% CP) quality. The value of Lopro has
decreased in poultry feeds
due to the higher Hipro soybean meal prices.
3. The difference in value in soybean meal due to 1.0 % crude
protein is € 0.63 in pig
feeds, € 1.76 in layer and € 2.01 in broiler feeds and have
decreased in all feeds.
4. Toasted soybean are only moderately attractive in broiler
feeds, replacing some Hipro
soybean meal.
5. U.S. soybean meal is worth € 1.97/100 kg more than
Argentinean soybean meal in
swine feeds, € 0.99 in layer feeds and € 1.52 in broiler feeds.
The additional value of
U.S. soybean meal over the one from Argentina is highest in pig
feeds.
6. U.S. soybean meal is worth € 1.39/100 kg more than Brazilian
soybean meal in swine
grower/finisher feeds, € 0.26 in layer feeds and € 0.39 in
broiler feeds. The additional
value of U.S. soybean meal is highest over the one from Brazil
also in swine feeds.
-
28 Schothorst Feed Research B.V.
For further information please contact Mr. Iani Adrian Chihaia,
Romania / USSEC South
Eastern European Consultant. Mobile: +40722605957 Email:
[email protected]
In conclusion in all regions, soybean meal from the U.S. has a
higher value than soybean
meal from Argentina or Brazil. Hipro soybean meal from the U.S.
has the highest added
value, specifically in pig feeds. These value differences are a
result of differences in the
protein content as well as differences in the digestibility of
amino acids and organic
matter (energy content). Usage rate of soybean meal is higher in
poultry feeds than swine
feeds.
mailto:[email protected]
-
30 Schothorst Feed Research B.V.
4. Analyses of value differences (€/100 kg) of soybean meal of
differing
qualities
As can be seen from the matrices (see table 1 Appendix) the
different quality soybean
meals differ in nutritional value resulting in shadow prices
differences in feeds for
different species and categories or phases, the main differences
are:
1. Protein content. This varies from 46.0% (Arg.) to 46.9%
(Brazil).
2. Energy content. U.S. soybean meal has a 2.6% higher NE
(swine), 3.0% higher AME-
layer and 3.6% higher AME-broiler than soybean meal from
Argentina. Brazilian
soybean meal is 2.1% higher in NE, 2.1% AME-layer and 2.1%
AME-broiler than
soybean meal from Argentina.
3. Amino acid profile, amino acid digestibility and digestible
phosphorus. U.S. soybean
meal has f.i. a 7.9% higher AID lysine (swine) content than
soybean meal from
Argentina and the TD lysine (poultry) content is 9.2% higher.
Brazilian soybean meal
has a 2.5% higher AID lysine (swine) content than soybean meal
from Argentina and
the TD lysine (poultry) content is 2.9% higher.
The value difference caused by each factor is given in table
below where a comparison
is made to Brazilian soybean meal for each species. This
analysis is based on the shadow
prices in the Netherlands (Hipro soybean meal € 30.40) for
September of the different
qualities soybean meal (see table 4 chapter 3). The results are
in general applicable to
all regions.
Table 11. Differences in value (€/100 kg) of the different
soybean meals caused by the chemical
and nutritional differences compared to the Brazilian and
Argentinean product
Argent.
vs Brazil
Swine
U.S.
vs Brazil
U.S.
vs Arg.
Argent.
vs Brazil
Layer
U.S.
vs Brazil
U.S.
vs Arg.
Argent.
vs Brazil
Broiler
U.S.
vs Brazil
U.S.
vs Arg.
Absolute differences in nutrient value
Protein% -0.9 -0.7 +0.2 -0.9 -0.7 +0.2 -0.9 -0.7 +0.2
Energy cal -40 +10 +50 -48 +20 +68 -39 +30 +69
Value (€/100 kg) differences (compare to table 1)
Protein € -0.36 -0.29 +0.08 -0.47 -0.37 +0.11 -0.64 -0.50
+0.14
Energy € -0.37 +0.09 +0.46 -0.35 +0.15 +0.51 -0.62 +0.47
+1.08
Dig. AA € +0.22 +1.46 +1.23 +0.23 +0.44 +0.19 +0.20 +0.69
+0.50
Total € -0.51 +1.26 +1.77 -0.59 +0.22 +0.81 -1.06 +0.66
+1.72
A difference of 0.9% crude protein with the lower Hipro soybean
meal (and also lower
grain and other plant protein prices) adds or decreases € 0.36
/100 kg to the value
of Hipro soybean meal in swine feeds (was € 0.37 in week 26), €
0.47 in layer feeds
(was € 0.48) and € 0.64 in broiler feeds (was € 0.63). The value
of protein in soybean
meal decreased in all feeds but the most in pig and layer feeds,
due to the lower plant
protein prices. The Hipro soybean meal price decreased € 0 .30,
toasted soybean with
€ 0.70 and rapeseed meal price with € 2.40.
-
31 Schothorst Feed Research B.V.
The value of soybean meal regard ing energy content has changed
as follows: 50
kcal NE adds € 0.46/100 kg to the value of Hipro soybean meal in
swine feeds (was €
0.47), 68 kcal ME € 0.51 in layer feeds (was € 0.53) and 69 kcal
extra in broiler feeds
increases the shadow price with € 1.08 (was € 1.13). The energy
costs derived from
grains like maize and wheat have decreased, but en ergy f rom t
r i t i ca le and
bar ley ha s b ecome mor e cost ly . Ene rgy f rom fa t a nd o i
l has become
cheaper in t he ca se o f PFAD and an ima l fa t but m ore exp
en s i ve
coming f rom soy o i l . Consequently the value of Hipro soybean
meal due to the
p ro te in content increased as well as the value of energy. The
differences regarding
energy are the largest in broiler feeds.
Differences in the amino acid pattern and digestibility (along
with the digestible
phosphorus content) create an added value of € 1.26-1.77/100 kg
in swine feeds for
U.S. soybean meal over that from Argentina or Brazil (was €
1.27-1.82), € 0.22-0.81 in
layer feeds (was € 0.22-0.83) and € 0.66-1.72 in broiler feeds
(was € 0.70-1.71). These
value differences have decreased in swine feeds but did not
change much in poultry feeds
compared to the last report (no 3/2017).
Altogether the value differences due to protein content are
larger in poultry than swine
feeds and largest in broiler feeds. Differences in value due to
differences in digestible
energy content are largest in broiler feeds and in digestible
amino acid and phosphorus
content in swine feeds. In conclusion next to the protein
content, the digestible energy,
amino acid and phosphorus contribute significantly to the value
of soybean meal.
From table 11 above can further be concluded:
1. Differences in the protein content contribute significantly
to the differences in the
value (shadow price) of soybean meal. However this explains only
partly the
differences in the value.
2. The value (shadow price) differences due to energy are
largest in broiler feeds. The
U.S. origin demands a € 0.46 higher value over Argentinian
soybean meal due to a
50 kcal ME difference in swine feeds, a € 0.51 difference in
layer feeds for a 68 kcal
ME difference and a € 1.08/100kg for a 69 kcal ME difference in
broiler feeds.
3. The increased digestibility of amino acids (and phosphorus)
has a large impact on the
added value of U.S. soybean meal for swine feeds, compared to
the Brazilian and
Argentinian origin it adds € 1.23-1.46.
-
32 Schothorst Feed Research B.V.
Variation in nutrient values
The effect of variation in the nutrient value (4-5%) of soybean
meal on the value (market
price € 30.40/100 kg in the Netherlands for September) is given
in the following table.
Table 12. Price effect of variation in nutrient value
Swine Layer Broiler
+/- 100 cal 0,90 0,74 1,56
+/- 4% dig AA 0,74 0,09 0,21
+/- 100 Cal and 4% dig AA 1,65 0,83 1,78
+/- 0.1 g/kg dig P 0,02 0,02 0,03
Variation in the energy content has the largest effect on the
value of soybean meal in broiler
feeds but variation in the digestible amino acid content has the
most value in pig feeds. In
all feeds the higher grain and fat & oil prices increase the
value effects of variation in the
energy content. A variation of +/- 100 kcal has a € 0.90/100 kg
effect on the Hipro soybean
meal value in swine (was € 0.93 in report no 3/2017) and € 0.74
in layer feeds (was € 0.77)
and € 1.56 in broiler feeds (was € 1.62).
As stated above the value of protein in soybean meal decreased
in all feeds feeds, due to
the lower plant protein prices. However the price effect of a 4%
variation in the digestible
amino acid content of Hipro soybean meal is the largest in swine
feeds with € 0.74. In
both layer and broiler feeds the price effect is only €
0.09-0.21.
Variation in the AID (or SID) amino acid content has the largest
impact in swine feeds.
Variation in the digestible energy content has the largest
effect in broiler feeds because
these are very concentrated feeds. Digestible phosphorus has the
highest value in poultry
feeds. The effects of digestible energy and amino acids on the
value of soybean meal are
additive.
In summary the higher economical and nutritional value of
soybean meal from U.S. origin
over soybean meal from Argentina or Brazil, at the same protein
content, is caused by the
(combined) higher amino acids and organic matter (= energy)
digestibility. Differences in
the (digestible) energy content contribute more to the added
value than differences in
digestible amino acid and phosphorus content.
Sincerely yours,
Jannes Doppenberg, Ph.D.
For any comments, questions or suggestions please write to
[email protected]
mailto:[email protected]
-
33 Schothorst Feed Research B.V.
Appendix
Least cost formulations.
The purpose of least cost formulations is to determine the
shadow price of feedstuffs like
Hipro soybean meal of different qualities (origins) in
comparison to other (protein rich)
feedstuffs. The shadow price is the maximum price that can be
paid for a feedstuff to be
used in a feed formulation, this is dependent on:
- Market effects. Mainly the availability and prices of
‘competing’ feedstuffs, i.e. protein
rich feedstuffs like other quality soybean meals, sunflower seed
meal and/or
rapeseed meal. Therefore current market and future prices of
feedstuffs for the
Dutch, Spanish, Polish and Romanian feed industry when available
are used. Updates
are made on a monthly base, so that the effects of feedstuff
price changes on feedstuff
composition and compound feed costs can be analyzed.
- The species for which the feed is formulated, since the
feeding or nutritional value of
the feedstuff and/or the nutrient restriction vary per specie.
Therefore three sets of
feed formulations are made for swine, layers and broilers
each.
- The chemical composition and matrix values of soybean meal (of
different origin). The
price effect of differences in a) protein, b) energy and c)
digestible amino acid (and
phosphorus) were analyzed separately by equalizing protein and
energy contents for
swine and poultry feeds. Both the chemical composition of SBM as
well as the effect
of processing (crushing) varies and influences the nutritional
quality. The nutrient
values listed in table 1 are averages based on the research of
Prof Mateos, individual
batches of SBM can vary considerable.
Note that the exact nutritional and economical value of a
feedstuff can only be obtained
(and compared) if the feeding value (Net Energy or Apparent
Metabolisable Energy content
and digestible ileal or total tract amino acid content) was
determined with the target
species (layer, growing pigs or broiler) of all feedstuffs used
in the formulation via the
same research protocol (for the digestibility experiments). In
this formulation the CVB
matrix is used for all the feedstuffs and the three different
(origins of) soybean meals are
compared among each other with matrix values obtained from the
research of Prof.
G. Mateos (Universidad Politecnica de Madrid, Spain). Therefore
the differences in
economic value among the three soybean meals with different
origins can be determined
from the differences in nutritional value from the different
matrices.
Matrix nutrient values.
The most important nutrient values per species of the different
soybean meals are listed
in table 1. Note that the nutrients which have a minimum or a
maximum restriction or
requirement in the formulations influence both the feed cost and
shadow prices of
feedstuffs. The energy (NE, EV and AME) and the (ileal)
digestible amino acids) content
are most crucial.
-
34 Schothorst Feed Research B.V.
Table 1. Nutrient values per specie of the soybean meals by
origin
Chemical composition (g/kg product)
Feedstuffs CVB Mateos Matrix
SFR Argentina 46.0%
CP
Brazil 46.9% CP U.S.
46.2% CP
Composition (g/kg) analyses
Moisture 122.0 120.0 112.0 120.0 C.Protein 468.0 460.0 469.0
462.0
C.Fiber 40.0 36.0 54.0 38.0
Ash 64.0 67.0 62.0 67.0
C.Fat 22.0 16.0 19.0 15.0
Starch (Ewers) 40.0 25.0 25.0 25.0
Sugars 65.0 67.0 53.0 79.0
Calcium 2.80 3.30 3.00 4.60
Phosphorus 6.30 6.90 6.20 6.80
Potassium 22.3 22.5 21.3 21.1
Lysine 29.0 28.3 28.6 28.8
Meth+cyst 13.6 13.5 13.4 13.5
Tryptophan 6.1 6.3 6.3 6.4
Threonine 18.3 18.2 18.2 18.1
Isoleucine 21.5 20.8 21.2 20.8
Energy value NE pigs kcal 1945 1940 1980 1990 EV pigs (Dutch)
92.62 92.38 94.29 94.76
AME layer kcal 2227 2242 2290 2310
AME broiler kcal 1888 1901 1940 1970
Digestible nutrients Digestible P swine 2.50 2.70 2.40 2.70 Dig.
P poultry 2.60 2.80 2.30 2.80
il.dig.Lys swine 25.8 24.0 24.6 25.9
Il.dig.Lys/100 g.Pr 5.51 5.22 5.25 5.61
il.dig.Meth swine 5.9 5.5 5.4 5.8
il.dig.M+C swine 11.6 10.9 11.1 11.6
il.dig.Tryp swine 5.2 5.2 5.2 5.5
il.dig.Thre swine 15.4 14.5 14.7 15.4
il.dig. Isol swine 18.7 17.5 18.1 18.5
dig.Lys poultry 25.5 24.0 24.7 26.2
dig.Lys/100 g.Prot 5.45 5.22 5.27 5.67
dig.Meth poultry 5.8 5.5 5.5 5.8
dig.M+C poultry 11.5 11.1 11.2 11.9
dig.Tryp poultry 5.4 5.4 5.4 5.5
dig.Thre poultry 15.6 14.9 15.2 15.9
dig.Isol poultry 18.9 18.1 18.7 18.8
-
35 Schothorst Feed Research B.V.
Table 2A Feedstuff prices in €/100 kg week 35, 2017. The
Netherlands
Code Article Description September Nov/Jan
00010 Citruspulp Braz./USA NA NA
00013 Peas
-
36 Schothorst Feed Research B.V.
Table 2B. Feedstuff prices of week 35, 2017 for Spain*, Romania#
and Poland compared to the
Netherlands
* Feedstuff prices for the Northern Barcelona area.
#Feedstuff prices are similar for Romania, Bulgaria, Serbia and
Macedonia, see text for exceptions
Code Description Spain
€/100 kg
Romania#€
/100 kg
Poland
€/100 kg
Netherlands
€/100 kg
13 Peas