Crude Protein is a common metric for evaluating and buying soybean meal (SBM). Oftentimes a buyer wants to purchase based on the lowest price of CP per metric ton. Is this the best way to make a purchasing decision? Or are other factors at play that change the value equation?

Let’s take a look at an example.

Soybean Meal Proximate Analysis RAS 2021

Here we have three SBM examples from different origins: Argentina, Brazil, and the United States. At first glance, the Brazilian option seems best because of its higher protein levels and relative pricing to the other sources. But there are other factors at play, some that can be seen on this slide, and others to follow. Looking beyond protein, notice the energy levels (AME). Brazilian SBM has the lowest quantity while the USA SBM has the highest. With a difference of 102 kCal, it may not seem like much of a difference but we will look at the impact it makes soon. The other noticeable difference is the Crude Fat content. Again, the differences seem small but they add up.

One may look at this and start to be curious about Amino Acid levels. Hats off to you if you are one of them. Let’s start to look more closely at these SBMs.

Soybean Meal Total AA (AF)

The highest level of each Essential Amino Acid (EAA) is highlighted in red. These levels indicate the level of available amino acid, or simply the total amount in each ingredient. Again, Brazil looks like it’s winning the pack but as always, there is more to the story.

Soybean Meal SID AA (AF)

Of the total available amino acids, how much of it is digested by the animal? It’s a good question and one that we will dive into now. Again, the highest level is in red. This time, however, the USA SBM is standing at the top of the pack. But how will this impact the total digestible amino acid levels?

Soybean Meal SID AA (AF)

Looking at the digestible levels of the available amino acids, the USA SBM is at the top on all but two, Isoleucine and Arginine.

Beyond the layer of Crude Protein, the EAAs begin to tell a different story. First by looking at the available amino acids one can see a larger picture of the nutritional composition of SBM.

Digging deeper into digestibility indexes, one can start to see how much of the nutrients the animal will utilize. Bringing these together it becomes clear which ingredient provides the most value for the animals.

But at what cost? Is it worth the extra money for a higher quality ingredient?

Comparative Cost Result Broiler

The above example looks at the price per ton to make three different broiler feeds. Of the three sources, using USA SBM allows for the lowest cost per ton to manufacture the feed. On the pre-starter, USA SBM lowers the feed cost $20/MT versus ARG and $8/MT versus BRA.

How do these costs impact the bottom line of the business?

Comparative Enterprise Results Broiler

• Savings on the table – US$ 89,389 per month

The savings is significant. Looking at 10K of feed manufactured monthly, USA SBM represents an opportunity cost savings of $89K per month versus ARG and $36K per month versus BRA.

Premium Spread Analysis

• Savings on the table – US$ 89,389 per month

Here’s that data showing the opportunity cost (COGS Diff) and also the value spread between SBM sources (Premium). USA SBM brings an almost $34/MT value difference over ARG and $12/MT over BRA. This means that as long as USA SBM is less than $34 over the price of ARG SBM, a buyer can purchase it and make money for their organization. That’s a significant spread.

Enterprise Level Results

• Enterprise level Premium for US SBM of US$ 33.89 per tonne SBM
• Savings on the table – US$ 89,389 per month – motivating factor
• Feed Costs and savings will change depending on the current profile

Summary
• The Nutrient Value Calculator expresses formulation results in terms of Cost of Goods and business outcome
• Tonnage weighting to give best estimate of the value at enterprise level and compensate for variability in shadow prices
• NVC demonstrates Full Nutrient Value in both commercial and integrated feeds
• Amino acids and Energy are the main contributors to Commercial Value of ingredients

Comparative Usage Report