Aug 22, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin

Trans Fat Ban Might Threaten 4 Million Soybean Acres

November 13, 2013
soybean pod
  
 
 

U.S. farmers might lose as much as 4 million acres of annual soybean production if regulators move too quickly to ban trans fats in processed food, according to the American Soybean Association.

The Food and Drug Administration said last week it’s on a "clear track" to banning partially hydrogenated oils, the main vehicle for trans fats, because of links to heart disease. About 8 million acres of soybean-oil demand already has been lost since concerns about trans fat began prompting food processors and restaurants to switch to healthier alternatives, said American Soybean Association President Danny Murphy.

"We understand the logic and the need for it, but we just want to make sure the FDA doesn’t totally disturb the market by moving really quickly," Murphy, who grows corn and soybeans on his farm in Canton, Mississippi, said yesterday in a telephone interview. "We stand to lose substantial market share."

U.S. farmers are forecast to harvest 75.7 million acres of soybeans, the Department of Agriculture said Nov. 8. Soybean futures have dropped 6.8 percent in Chicago this year.

The food industry has voluntarily cut trans fats in processed foods by more than 73 percent since 2005, according to the Grocery Manufacturers Association. The Nov. 8 announcement by FDA Commissioner Margaret Hamburg on trans fats means a ban is likely after two decades of battles with public health advocates.

While trans fats occur naturally in some meat and dairy, most of that found in processed food are vegetable oils treated with hydrogen to improve texture, stabilize flavors and extend shelf life. Hydrogenation converts liquid oil into a solid.

Modified Soybeans

The soybean industry is now counting on regulators to approve so-called high-oleic soybeans, varieties genetically engineered by Monsanto Co. and DuPont Co. to be stable without hydrogenation. Once the new generation of modified soybeans gets all the regulatory approvals, the industry plans to regain market share with 18 million acres of heart-healthy plants by 2023, according to the United Soybean Board.

DuPont’s Plenish soybean can eliminate trans fats and reduce saturated fats by 20 percent in foods such as potato chips. It’s been approved by all soy importers except the European Union, said Russ Sanders, director of food and industry markets for DuPont’s Pioneer seed unit. Plenish was planted on as few as 100,000 acres in the U.S. this year because of export concerns, he said.

Canola Demand

Monsanto’s Vistive Gold is engineered to produce soybean oil with zero trans fats and 60 percent less saturated fat than conventional beans. Vistive Gold has been approved for planting in the U.S., Canada and Mexico and is being planted in "limited quantities" pending import approvals from the EU and China, Gayla Daugherty, a spokeswoman for the St. Louis-based company, said in an e-mail.

A trans fat ban could help demand for canola, palm oil and animal fat, said Anne Frick, an analyst at Jefferies Bache LLC in New York.

Dow Chemical Co. is already benefiting from trans fat concerns with its heart-healthy canola, marketed as Nexera, which required no regulatory approvals because it was conventionally bred. Nexera canola supplied 1.5 billion pounds of oil this year to the 24 billion pound North American vegetable oil market, said David Dzisiak, commercial leader for grains and oils at Midland, Michigan-based Dow.

"There’s still several billion pounds of hydrogenated oils being used and we can replace those," he said by phone.

See Comments

RELATED TOPICS: Soybeans, Policy

 
Log In or Sign Up to comment

COMMENTS (1 Comments)

D L H - Dola, OH
the healthy oil soybeans have been developed by conventional breeding at Iowa State University. They are not created by Monsanto and Pioneer who have just inserted the RR gene in them. Iowa State first released the high oleic oil beans about 10 years ago. The non gmo beans would not need regulatory approval for imports by the EU.

If you take the time to look at Iowa States website for this breeding program, you will find wealth of information that explains the quality problems gmo soybeans have. The first is the elevated omega 6 fatty acids and the oil volatility problems when used for deep fat cooking. These two problems is why edible soybean oil use in the US has been dropping since the introductions of RR beans. Soybean oil has lost 25% of the market share in that time period. Per Capita consumption of edible soybean oil hit a 25 year low this last crop year. If it was not for bio Diesel soybean oil would be glut on the market.
10:16 PM Nov 14th
 



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive Dairy Today's eUpdate today!

 

MARKETS

CROPSLIVESTOCKFINANCEENERGYMETALS
Market Data provided by Barchart.com
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions