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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.
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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.
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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)
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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.
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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).
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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.
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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.
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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: jerzy.kosieradzki@gmail.com
mailto:jerzy.kosieradzki@gmail.com
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: cia@feedinfo.ro
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:cia@feedinfo.ro
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 jdoppenberg@schothorst.nl
mailto:jdoppenberg@schothorst.nl
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