High Oleic Soybean Oil Panel - NIOP• Fats high in saturated fat should be replaced with liquid...

High Oleic Soybean Oil Panel

National Institute of Oilseed Products

March 17, 2015

John Becherer, United Soybean Board

• USB farmer commitment and experience

• Acreage expansion

• Security of supply

John Becherer, United Soybean Board

• USB farmer commitment and experience

• Acreage expansion

• Security of supply

David Tillman, Stratas Foods

• Characteristics

• Food applications

• Functionality and sensory testing

John Becherer, United Soybean Board

• USB farmer commitment and experience

• Acreage expansion

• Security of supply

David Tillman, Stratas Foods

• Characteristics

• Food applications

• Functionality and sensory testing

John Jansen, Bunge

• Global regulatory approval

• Customer experience

• Value

Security of Supply

John Becherer

CEO, United Soybean Board

United Soybean Board and QUALISOY Leadership

• Vision of future opportunities in the soybean industry

• Long history of investing in the latest innovations

• Strategic investment in the future security of the market

• Trans fat solutions

• Significant commitment to the success of high oleic soybean oil (15+ years)

Commitment to High Oleic Soybean Oil

• $60 million over five years to expand seed production of high oleic varieties and for promotional support

• Farmer-to-farmer testimonials and endorsements

• Support processor to farmer contracting

• Ample acreage = competitive pricing

• Security of supply

Farmer Experience

• High oleic soybean yields are competitive with other elite seed varieties

• High retention in contracts

• Premium conversation an even better selling tool with current commodity prices

• Approximately an extra $2,000 for every 100 acres of soybeans

“High oleic soybeans offer a solution for the food industry.

This is a way to recapture some of the oil market and

increase profitability for farmers, processors and food

providers.”

• Dale Profit, United Soybean Board Farmer-Director, Ohio

John has grown high oleic soybeans for five years and currently plants

100% high oleic varieties. Yields have proved comparable to other

commercial varieties in his area.

• John Motter, United Soybean Board, Farmer-Director, Ohio

Projected acreage areas and timeline. Subject to change.

High Oleic Soybean Acreage Expansion

Acreage estimates and production facilities reported from the National Agricultural Statistics Service, Canola Council of America, University of Minnesota Institute on the

Environment and industry sources.

Acreage estimates and production facilities reported from the National Agricultural Statistics Service, Canola Council of America, University of Minnesota Institute on the

Environment and industry sources.

Profile of High Stability Oils

David TillmanVice President Sales and Marketing, Stratas Foods LLC

Fatty Acid Profile of Liquid Oils

Performance Testing

• Frying oil

• Spray oil

• Bakery shortenings

Functionality Testing: Frying

• Objective:

• Compare high oleic soybean oil with other commercially available high oleic oils on the basis of functionality.

• Tests Procedure:

• 24 day controlled fry study

• Test Variables:

1. High Oleic Soybean Oil

2. High Oleic Canola #1

3. High Oleic Canola #2

4. Mid Oleic Sunflower Oil

5. Soybean Oil6. High Oleic Sunflower Oil

Fry Study Procedures:

• Each variable, tested in duplicate• Commercial foodservice fryers

• Held at 350°F for eight hours per day

• 350g of fresh cut potatoes fried five minutes

• Four cycles per day

• 24 days total frying

• Key metrics analyzed every three days for: • Anisidine Value

• Color

• Free Fatty Acid

• Total Polar Compounds

• Foaming

• Polymerization

• Sensory

Total Polar Materials Results (Percentage)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Day 0 Day 3 Day 6 Day 9 Day 12 Day 15 Day 18 Day 21 Day 24

Commodity Soy

High Oleic Canola #2

Mid Oleic Sun

High Oleic Canola #1

High Oleic Soy

High Oleic Sun

Color (1” Red Lovibond)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Day 0 Day 3 Day 6 Day 9 Day 12 Day 15 Day 18 Day 21 Day 24

Mid Oleic Sun

High Oleic Canola #2

High Oleic Canola #1

Commodity Soy

High Oleic Sun

High Oleic Soy

Sensory Results

Analysis focused on three major attributes:

• Potato flavor intensity

• Oil flavor intensity

• Rancid notes

0 3 6 9 12 15 18 21 24

Rancid L

evels D

ete

cted

Days of Frying

Sensory Test - Rancidity Trends

–– Soybean Oil–– High Oleic Canola #2–– High Oleic Canola #1–– Mid Oleic Sunflower Oil

–– High Oleic Soybean Oil–– High Oleic Sunflower Oil

Foaming/Polymerization Results

24

High Oleic Soybean Oil

Day 24

High Oleic Soybean

OilDay 24

Commodity Soybean Oil

Day 24

Commodity Soybean Oil

Day 24

<5% polymerization on surface of fryer

>90% polymerization on surface of fryer

Frying Results Summary

• High oleic soybean oil and high oleic sunflower oil had the lowest levels of polymerization

• High oleic soybean oil should prove to be a very strong competitor to:

• High oleic sunflower oil due to cost

• High oleic canola oil due to both cost and overall performance

25

Fry Oil Performance

High oleic soybean oil > Commodity soybean oil SIGNIFICANT

High oleic sunflower oil > High oleic soybean oil MODERATE

High oleic soybean oil > High oleic canola oil MODERATE

Sensory Test Results from Well-seasoned Oil

High oleic soybean oil > High oleic canola oil SIGNIFICANT

High oleic soybean oil > Commodity soybean oil SIGNIFICANT

Consumer Testing: Sensory

• Objective:• Determine customer flavor acceptance of high oleic

soybean oil

• Test Procedure:• RQA Product Dynamics to conduct consumer acceptance

flavor panel in fries

• Approximately 100 people in test sample

• Test Variables: • High oleic soybean oil

• High oleic canola oil

• High oleic sunflower oil

• Mid oleic sunflower oil

• Test Results• Test scheduled for Summer with results available Fall 2015

Functionality Testing: Spray Oil

• Objective:

• Compare high oleic soybean oil with other commercially available oils on the basis of functionality

• Tests Procedure:

• Snack crackers shelf life study

• Test Variables:

• High oleic soybean oil

• High oleic canola oil

• High oleic sunflower oil

• Palm oil

• Partially hydrogenated soybean oil

• Commodity soybean oil

Spray Oil Study Procedures

• Snack crackers produced at American Institute of Baking using commercial bakery equipment and conditions

• Packaged and stored under industry type conditions

• Sensory testing every four weeks

• Current status: Three months completed of shelf life study

• Final results available by Fall 2015

Functionality Testing: Bakery

• Objective:

• Compare high oleic soybean oil with other commercially available oils on the basis of functionality

• Tests Procedure:

• Various bakery products

• Test Variables:

• High oleic soybean oil and enzymatically interesterified high oleic soybean oil blends tested with current standard bakery shortenings

• Test Results

• Donut test scheduled for later this year

Food Company Perspective

John JansenVice President of Innovation, Quality and Regulatory, Bunge Foods

Global Regulatory Approval

DuPont Pioneer

• European Union EFSA

• Recommend approval of the single trait for high oleic soybeans

• Next must recommend approval of trait stacked with Roundup Ready trait (previously approved as a stand alone trait)

• Then EU Commission must accept the EFSA recommendation and approve for sale in the EU

Global Regulatory Approval

Monsanto

• China• Approve the positive results from a feeding study

completed in November 2014

• European Union EFSA• Recommend approval of the single trait for high oleic

soybeans

• Next must recommend approval of trait stacked with Roundup Ready trait (previously approved as a stand alone trait)

• Then EU Commission must accept the EFSA recommendation and approve for sale in the EU

Government Recommendations: Dietary Guidelines

• Fats high in saturated fat should be replaced with liquid vegetable oils

• Solid fats should be avoided, saturated fats are still overconsumed and shouldn’t exceed 10% of calories

• Partial hydrogenation should be avoided

• Guideline recommendation: consume vegetable oils that are high in unsaturated fatty acids and low in saturated fatty acids!

Consumers Rating of Facts Panel

Consumer Insights: What Drives Consumption

IFIC 2014 Food & Health Survey

The Value of High Oleic Soybean Oil to Customers

• High in monounsaturated fatty acids

• Zero industrial trans fatty acids

• Low in saturated fatty acids

• High stability, no need for additives

• Domestically grown, highly sustainable

• Fluid, transparent market easily hedged

• Soy taste in finished foods

• Competitive price

• Absence of negatives

Questions?

Thank You!