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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.


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.


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)


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


€ 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.


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).


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



Broiler



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.


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.


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).


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)


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


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).


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.


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.



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


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 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



Layer



Broiler



September -0.48 +1.16 +1.64 -0.64 +0.26 +0.90 -1.27 +0.77 +2.04






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.


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.


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)


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.


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.


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.


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.


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.


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.







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



Layer



Broiler



November -0.68 +1.39 +2.07 -0.72 +0.23 +0.95 -1.21 +0.72 +1.93





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.


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


U.S. soybean meal is highest over that from Argentina in pig and broiler feeds.


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]


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.


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)


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.


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.


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 %).


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


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







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



Layer



Broiler



September -0.58 +1.39 +1.97 -0.73 +0.26 +0.99 -1.13 +0.39 +1.52






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


U.S. soybean meal over the one from Argentina is highest in pig feeds.


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.


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.



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.


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.


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]



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.


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


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


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

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