Sustainable Soya - Sustainable Europe

DS Congress 2016

Budapest, 25 November 2016

Norbert Potori

Soya as Oil

Main utilization of

soybeans

* as defined for CME crush spreads

Source: CME Group, Oil World

Soybean crush ratio*

~ 16% oil of all soybean production

Crush:~ 87%

Oil:18.3%

Meal:80.0%

Waste:1.7%

• refined for food & feed use • sold to biodiesel producers • or for industrial uses

Source: Dubois et al. (2008)

Classification of vegetable oils and fats

according to their fatty acid profiles

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pal

m o

il

Pal

m k

ern

el o

il

Co

con

ut

oil

Oliv

e o

il

HO

su

nse

ed

oil

Ha

zeln

ut

oil

Pe

anu

t o

il

Ra

pes

ee

d o

il

Soyb

ean

oil

Wal

nu

t o

il

Sun

see

d o

il

Co

rn o

il

száz

Saturated fatty acids Monounsaturated fatty acids Omega-6 fatty acids Omega-3 fatty acids

Predominantly saturated Predominantly monosaturated Monosaturated

& Omega-3 Omega-6

& Omega-3 Omega-6

+ high vitamin E

Research interest

HO

Soybean oil: frying, cooking, dressings, ingredient in food applications

Great versatility in the use of soybean oil

by the food industry

clear, natural taste and nearly imperceptible aroma supporting and enhancing the natural flavours of prepared foods

• cooking oils

• salad oils

• mayonnaise

• medicinals

• pharmaceuticals

• sandwich spreads

• shortenings

• filled milks

• coffee whiteners

• candy

• chocolate coatings

• frying oils

• frozen desserts

• cheese dips

• gravy mixes

• pastry fillings

• icings

• whipped toppings

snack food manufacturers

also used in feeding • e.g. to partially replace fish oil in aquaculture

bakeries

food service providers, etc.

Global production of the major vegetable oils

42.6 44.3 46.1 49.5 52.5 56.3 60.0 62.1 59.2 64.4

37.7 36.0 38.941.1

42.142.1

44.548.2 50.9

53.7

0

30

60

90

120

150

180

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17*

MM

T

Palm oil Soybean oil Rapeseed oil Sunseed oil Palm kernel oil

Source: Oil World (* projection)

Total growth: 43%

Growth in soybean oil production: 42%

Soybean oil: availability in abundance

Source: Oil World

26.4%

19.6%

16.6%

15.5%

5.6%

7.9%

CHN USA ARG BRA EU-28IND PAR MEX RUS TWNJAP CAN RoW

26.9%

17.8%

12.6%

10.4%

5.0%

15.5%

CHN USA BRA IND ARGEU-28 EGY BGD IRN DZAVEN MAR RoW

34.4%

5.1%4.8%

4.6%4.3%

27.8%

IND DZA BGD CHN EGYMAR PER COL EU-28 VENMEX IRN RoW

Global production

disappearance

imports

50.89 MMT

12.81 MMT

51.27 MMT

2015/16 (Oct/Sep)

2015/16 (Oct/Sep)

2015/16 (Oct/Sep)

47.3%

12.6%

8.2%

7.7%

5.9%

5.4%

ARG BRA USA EU-28 PARRUS BOL MYS UKR CANVNM EGY RoW

2015/16 (Oct/Sep)

12.33 MMT

exports

24.9%

22.4%

22.3%

10.6%

DE ES NL IT FR UK PT Others

16.0%

11.7%

9.7%

8.7%

8.3%

PL DK SI NL SE FR PT Others

34.3%

33.3%

17.9%

DE ES NL PT IT FR RO Others

Source: Oil World

2015/16 (Oct/Sep)

2015/16 (Oct/Sep)

EU production

imports

exports

2.83 MMT

0.33 MMT

0.96 MMT

2015/16 (Oct/Sep)

Major EU export markets for soybean oil

Source: USDA, Oil World

0

500

1000

1500

2000

2500

USD

/MT

cif R

'da

m

Rapeseed Sunseed Soybean

Prices of the major vegetable

oils produced in the EU

Disappearance of the major

vegetable oils in the EU

0

2

4

6

8

10

12

2011/12 2012/13 2013/14 2014/15 2015/16

MM

T

Rapeseed Palm Sunseed Soybean

the European vegetable oil market is mature but still undergoing changes drivers of the changes are

• health & wellness trends • sustainable sourcing

• shorter supply chains • consumer interest in exotic products

2.43 2.462.00

2.58

1.81

0

1

2

3

4

5

2011 2012 2013 2014 2015

0%

20%

40%

60%

80%

100%

MM

T

of soybean oil others %

1.91 1.80 1.882.24

2.67

0.44 0.59 0.68

0.76

0.78

0

1

2

3

4

5

2011 2012 2013 2014 2015

0%

20%

40%

60%

80%

100%

MM

T

of soybean oil others %

ARG: soybean oil as biodiesel feedstock BRA: soybean oil as biodiesel feedstock

USA: soybean oil as biodiesel feedstock EU: soybean oil as biodiesel feedstock

8.50 9.32 10.3611.71 11.89

9.0%4.3% 2.7% 4.0% 3.9%

0

3

6

9

12

15

2011 2012 2013 2014 2015

0%

20%

40%

60%

80%

100%

MM

T

of soybean oil others %

1.88 1.832.50

2.18 2.23

1.33 1.46

2.032.05 1.99

0

1

2

3

4

5

2011 2012 2013 2014 2015

0%

20%

40%

60%

80%

100%

MM

T

of soybean oil others % Source: Oil World

Examples for soybean oil utilization

feedstock for specialty fermentation applications

high lipid content

insecticides & repellents best carrier oil

paints and inks alkyd resins manufacturing

personal care applications moisturizing properties

a substitute for petroleum based products

food and feed

anti-dust formulations & natural-based cleaners

… beyond that …

lubricants

industrial fluids

plastic moulded parts

composites

packaging

Substituting petroleum based products

… for hydraulic and transmission fluids to greases

& engine and penetrating oils and fuel additives higher viscosity index lower evaporation loss enhanced lubricity higher energy efficiency low toxicity levels readily biodegradable

growing markets … environmental concerns (60% end up in waters and soil) green marketing opportunities cost reduction

HO-SBO high oleic fatty acid content (up to 77%) improved heat and oxidative stability

Source: Soy 20/20

appeal to consumers longer life time superior wear properties

Thank you

for your

attention!