Transcript Beyond Boca Burgers and Biodiesel

New Value-Added
Products from Soybeans
Opportunities for
North American Soybeans
1
May 2004
Un8ited Soybean Board
“The stone age did not end
because we ran out of
stones.” -Unknown
2
May 2004
Un8ited Soybean Board
1996
Anything you can make out of
petroleum, you can make out of
soybeans…
except money
2006
Well maybe…
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World Soy Production 1990
100.5 Million Metric Tons
US
49%
Brazil
15%
Argentina
11%
Other
25%
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World Soy Production 2005
217 Million Metric Tons
Canada
1.4%
US
39.4%
Brazil
24.4%
Paraguay
1.8%
Other
4.0% India
2.8%
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Argentina
18.0%
China
8.3%
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North American Production &
Utilization
2005 Marketing Year
 Whole Soybean production 3.5 Billion Bushels
 Soybean crush 2 billion bushels
 Soybean Exports
0.9 billion bushels
 Carryover and other 0.6 billion bushels
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What is in a Soybean?
40% protein
20% Oil
40%
Cellulosics and
Sugars
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North American Soy Crushing
NA crushes 1.8-2 billion bushels or
54-60 million tons
 20-22 billion lbs of oil or about 2.8
billion gallons (10.6 billion liters.)
 43-48 million tons of soybean meal.
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What About Value
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Old value ratios (typical)
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If whole beans were worth X, then oil was worth
2.0-2.2 X and meal is worth 0.9-1.0X. Example if
beans are worth $6/bu ($0.10/lb) then oil is worth
$0.22/lb and meal is worth $180/ton ($0.09/lb)
Oil value= $2.42 (35%)
Meal value= $4.41 (65%)
Return to crusher= $6.83/bu
Meal set demand, but oil made the margin.
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What About Value
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Recent value ratios (Summer 2006)
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If whole beans are worth X, then oil is worth 2.62.8 X and meal is worth 0.8 X. Example if beans
are worth $5.40/bu ($0.09/lb) then oil is worth
$0.26/lb and meal is worth $150/ton ($0.075/lb)
Oil value= $2.86 (44%)
Meal value= $3.68 (56%)
Return to crusher= $6.54/bu
Oil is now determining value and driving demand
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NA Soybean Oil Consumption
USE
1995
2005
Food
95%
88%
Feed
~2%
~2%
3%
10%
Industrial
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Soybean Oil Demand Drivers
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Food demand flat to down, due to lost share
(corn, canola), transfatty acid issue.
Feed use is incidental, up slightly with
increased crush.
Industrial use is small compared to food use,
but increasing rapidly due to biodiesel,
plastics and other industrial uses.
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Soybean Meal Consumption
USE
1995
2005
Food
~ 4%
>8%
Feed
95%
90%
Industrial
<1%
~ 2%
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Soybean Meal Demand Drivers
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Food demand is increasing significantly due
to soy dairy substitutes and concentrated
proteins, still relatively small compared to
feed.
Feed use is flat with increased crush.
Industrial use (coatings, adhesives) is
increasing but remains very small percentage
of total.
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New Industrial Uses
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Biodiesel
Plastics
Lubricants
Paints, Coatings & Inks
Solvents
Adhesives
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Price Changes – 1990 thru 2005
12/1/05- Soy Oil 21¢/lb. Crude $58.42/barrel Gas $13.03/MMBTU
6/16/06- Soy Oil 24.9¢/lb. Crude $70.20/barrel Gas $7.46/MMBTU
$140
$120
$100
$80
$60
$40
$20
Soybean Oil $/100 lbs
Natural Gas $/10 MMBTU
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2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
$0
Crude Petroleum $/barrel
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Biodiesel
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Tax incentives and mandates in the US
should drive biodiesel production to 240
million gallons (912 million liters) in 2006
Up 320% from 2005
Equal to almost 9% of NA soybean oil
production.
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Biodiesel Economics
Per gallon
Feedstock cost @$0.27/lb=
Other production
Plant gate
Less federal incentives
Before freight
Local spot petrodiesel*
Gross margin
$2.025
0.400
$2.425
-1.100
$1.325
2.055
$0.730
*Energy Management Institute 5/17/06 Memphis TN
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PLASTICS/PLASTIC COMPOSITES
Market segments
Current
 Polyols for Polyurethane foams, films, molded
parts
 Plastic Composites
Emerging
 Thermoplastics
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North American Polyurethane Demand
(millions lbs.)*
2000A
2002
2004*
PUR
6482
6393
6888
Polyol
3007
2956
3610
*2004 API End Use Survey
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Polyols & Intermediate Prices
2001 – December, 2005 Cents per Pound
120
100
80
60
40
20
0
2001
Soybean Oil
Propylene
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2002
2003
Flex poyol
Propylene Glycol
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2005
Rigid Polyol
Propylene Oxide
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Soy Polyols
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At least five different chemical modification
approaches
Range of costs and uses
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Molded foam
Slab foam
Carpet backing
RIM and SMC parts
UTT Carpet Mill- Dalton GA
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Flexible Foam Seating
Cargill supplying Woodbridge in Ontario for
use by Ford
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Target Area:
PLASTIC COMPOSITES
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Soy-based thermoset resin
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Polyester resin with fiberglass filler
Use by Ag Equipment manufacturers
Testing by auto makers
Polyurethanes
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Testing pultrusion of parts
Testing molding techniques and different fillers
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Polyester Intermediate Prices
2001 – December, 2005 Cents per Pound
120
100
80
60
40
20
0
2001
2002
Soybean Oil
Maleic Anhydride
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2003
Benzene
Propylene Glycol
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2005
Ethylene
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Lubricants
Soy Oil versus Petroleum Basestocks
Soy Oil Advantages
 Better lubricity
 Lower volatility
 Better viscosity index
Soy Oil Disadvantages
 Poor oxidative stability
 Poor low temperature properties
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Lubricant Basestock Prices
2001 thru October, 2005 Cents per Pound
50
45
40
35
30
25
20
15
10
5
0
2001
2002
Soybean Oil
Group II+
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2003
Group I
Group III
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2005
Group II
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LUBRICANTS &
HYDRAULIC FLUIDS
Current
 Total loss applications
 2-cycle engine oil
 Some hydraulic fluids
 Transformer fluids
 Metal working
 Mold release and other industrial
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LUBRICANTS &
HYDRAULIC FLUIDS
Researching
 Crankcase oil development at Valvoline
 Hydraulic fluid formulation at Afton (Ethyl
Corporation)
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Paints, Coatings & Inks
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Traditionally largest industrial market for
soybean oil.
Alkyd resins declining with decline of oil
based paint.
Soy ink growing as price is
more competitive.
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Paints, Coatings & Inks
Research
 Water based (latex) paints
 Powder coatings
 UV cured inks.
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Latex Coatings Intermediate Prices
2001 – December, 2005 Cents per Pound
120
100
80
60
40
20
0
2001
2002
Soybean oil
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2003
Vinyl Acetate
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2005
Acrylic Acid
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Powder Coatings Intermediate Prices
2001 – December, 2005 Cents per Pound
140
120
100
80
60
40
20
0
2001
Soybean oil
Styrene
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2002
2003
Maleic Anhydride
Propylene
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2005
Propylene Glycol
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Solvents
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Primarily Soy methyl esters
Same as biodiesel with slightly different
standard.
New compounds in development.
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Solvent Prices
2001 thru October, 2005 Cents per Pound
200
180
160
140
120
100
80
60
40
20
0
2001
2002
Methyl Soyate
Mineral Spirits
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2003
MEK
Methanol
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2005
TCE
d'Limonene
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SOLVENT MARKET
APPLICATIONS
COMMERCIAL
 Parts cleaners & degreasers
 Hard surface cleaners
 Stainless steel equipment
cleaners (Restaurants)
 Printing ink cleaners
 Paint strippers
 Adhesives removers
 Mastic removers
 Graffiti removers
 Asphalt cleaners & release
agents
 Concrete & wood stains
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Hand cleaners
Hand lotions
Oil spill remediation
Corrosion protectants
Oil field equipment cleaners
Plant floor cleaners
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APPLICATIONS IN DEVELOPMENT
SME:
 Plastic waste disposal &
reuse
 Highway paving & patching
materials
 Pesticide carriers (mosquito
larvicides)
 Mold & mildewcides
 Paper pulp recycling
 Alkyd coating carriers
 Stationary engine fuels
(hydrogen)
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Soy Oil:
 Bioremediation (soil &
groundwater)
 Metalworking fluids
 Emollients (personal care
products)
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ADHESIVES
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Primary market: Wood
Adhesives
Based on soy flour or
protein concentrates
Recently launched new use
in interior grade plywood
Limited packaging adhesives based on
soybean oil.
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Adhesives Intermediate Prices
2001 – December, 2005 Cents per Pound
70
60
50
40
30
20
10
0
2001
2002
Soybean Meal
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2003
Urea
Phenol
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2005
Formaldehyde
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ADHESIVES
Research
 Improve water resistance to allow exterior
plywood use
 Lower viscosity to allow use
in oriented strandboard
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Fermentation Research
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Produce ethanol from carbohydrates in
soybean meal
Real goal is a lower cost protein concentrate
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70% protein
No indigestible sugars/anti-nutritionals
Improved storage properties.
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Thank You
Any Questions?
www.omnitechintl.com
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