The above does not reflect whole bean exports — valued at $34.39 billion for the year — and the overall demand for soybean meal worldwide.
Dave Iverson, South Dakota Soybean Research and Promotion Council District 4 Director, points out that soybean processing yields a 4:1 meal-to-oil ratio. That fact, coupled with higher yields and increased planted acres, makes supporting meal demand all the more important.
“We need to create more meal demand, and livestock is the perfect opportunity for soybean producers,” says Iverson, who farms near Astoria.
Domestic Production Thrives
In Iverson’s mind, that demand growth starts at home. “It’s really important to keep our focus on increasing animal production here in South Dakota,” he says.
A strong domestic livestock industry provides market stability. It also requires less freight and other trade-related costs for homegrown soybean meal.
South Dakota Soybean has long played an active role in supporting research and education to advance livestock nutrition using soybean meal in diets for swine, poultry and dairy cattle. More recently, however, the checkoff has turned its attention to aquaculture production as an emerging destination for meal.
Iverson also notes that new processing facilities in South Dakota offer soybean producers the possibility of increased returns with a strong livestock industry in place. “That’s a great opportunity for South Dakota producers to keep that value in-state,” he explains.
South Dakota Soybean Association board member Brent Greenway agrees. “If we could consume all of the soybean meal that we grow and create in South Dakota, that'd be just a phenomenal boon for the state,” he says.
Greenway grows row crops, runs a cow-calf operation and finishes hogs outside of Mt. Vernon. He says he currently feeds more meal to the pigs in his finishing barns than his farm produces and is excited about a new processing facility slated for nearby Mitchell.
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