Basilisa P. Reas, DVM MSc Technical Manager USSEC- SEA

FULLFAT SOYBEAN MEAL: AN OPPORTUNITY BEYOND

VEGETABLE OIL AS ENERGY SOURCE FOR ANIMAL FEEDS

Livestock & Poultry Expo

Clark, Pampanga

February 28 - March 1, 2017

2

Cereal grains & fat/oil sources

Oilseeds & animal by-products

80-85% of feed cost

Protein & Amino acid About 30-35%

Energy sources About 50-55%

Major components of swine & poultry diets;

Philippine Feed wheat Imports, (PAFMI, December 2016)

0 218,000

0

330,905 305,201 63,250 0 45,000

0 0

1,172,224

0 0 0 0 0

0

110,000

1,535,000

0 0 0 0 0 0

235,950

256,500

0

557,570

0 0 0 63,969

50,340

373,892

45,000

421,584

40,395 0 154,631

146,066

293,653

407,700

394,269

259,517

0 43,000

175,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

US INDIA Australia Brazil Blacksea RUSSIAN Canadian EU

2010 2011 2012 2013 2014 2015

Year US India Aus Bra Black

Sea

RU

S/B

ul

CND EU Total amount,

MT

2011 100% 1,172,224

2012 93.31% 0.69% 1,645,000

2013 24% 26% 50% 1,050,020

2014 6% 4% 33% 4% 37% 3% 13& 1,149,811

2015 8% 17% 24% 23% 15% 2.5% 10% 1,719,205

2016 32% 31% 2,208,190

% according to origin

Philippine Yellow Corn Imports, 2011-2016* (PAFMI, December2016)

0

200,000

400,000

600,000

800,000

1,000,000

US Argentine Vietnam Thai Indonesia India mymar

2010 2011 2012 2013 2014 2015

Year US Arg Viet Thai Indo IND MYM Total amount in Mt

2011 25% 37% 74,800

2012 100% 94,000

2013 93% 4% 303,461

2014 7% 6% 5% 69% 2% 1% 637,301

2015 22

%

23% 19% 37% 215,229

2016 54% 525,109

% according to origin

Philippine Soybean meal Importation, 2011- 2016

Year US ARG India Brazil TOTAL Vol, MMT

2011 45 54 1 1,811,835

2012 67 32 1 1,800,097

2013 54 46 1,871,009

2014 52 47 1 2,489.286

2015 67 32 1 2,130.981

2016* 71 28 2,565,64

% according to Origin

Source: PAFMI, December .2017

802,595 818,723

1,211,560 1,015,164

1,296,770 1,298,104

8,216 26,015 8,591 358 1,871

739,027

967,097

579,946 855,087

1,184,005

571,240

10 400 140

1,549,848

1,811,835 1,800,097

1,871,009

2,489,286

1,869,344

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2010 2011 2012 2013 2014 2015

US India Arg. China Total

ME of major ingredients

0 500 1000 1500 2000 2500 3000 3500 4000

Copra meal

Palm Kernel Meal

SBM, NDH

SBM, DH

FFSBM

Fish meal

Corn

Wheat

Cassava

DDGSME, kcal/kg

Copra meal

Palm KernelMealSBM, NDH

SBM, DH

FFSBM

Fish meal

Source: ASA-IM Tech Bull 2004

Average raw material prices &

farm gate prices as of February 15, 2017

Farm gate

prices

Price,

PhP/kg

Broiler, Integrator 82.00

Broiler,

commercial

80-84.00

DOC 30-32.00

Hog, commercial 108-112.00

Hog, backyard 98.00-103.00

Source: PAFMI, Feb 15, 2017

Raw Material Price, PhP/kg

Y corn (COD) 14.50-15.00

Feed wheat 13.00 – 13.20

US SBM 22.80 -23.50

Arg SBM NA

Fish meal, Peru 67.00

Fish meal, local 58.00

Ricebran 10.50-11.50

Pollard 11.80-12.50

Copra meal 12.50

Coco oil 85-90.00

Palm oil 48-55.00

Mollasses 11.20

SOYBEAN COMPOSITION

Source: Nutritional and Health Benefits of Soy; The Soybean Fact Book: Nutritional and Health by ASAIM; c2007.

DH SBM – High protein, low fiber

NDH SBM – Low protein, high fiber

Fullfat SBM – High energy, high protein (high energy;high protein

Soy Protein Concentrates

Soy Isolates, etc..

All SBMs are not the same!!; Classification of SBM according to processing involved:

Desolventize, toast

Soybean

meal

Crude soy oil

White flakes

Extrude, expand or roast and cool

FFSBM

Soy protein

concentrate

Refine

RDB

Soy oil

Soy

molasses

Soy

hulls

Hexane extract

Temper, dehull, flake

Soybeans

Ethanol extract

Fatty acid sources differ

• Animal-sources

– Beef tallow – 50% Saturated

– Mutton fat /pork lard – 45% Saturated

– Poultry fat – 30% Saturated

• Plant sources – Palm oil – Saturated ; Palmitic

– Palm kernel oil – Saturated; Lauric, Myristci

– Coco oil – Saturated; Lauric, Myristic

– Soy oil, sunflower, maize – Unsatuarted; Linoleic

– Rapeseed – Unsaturated; Oleic

– Linseed – Unsaturated; Linolenic

Fatty acids in diff vegetable oil

Palm oil PKO Palm Olein Coco oil Soy oil

U/S 0.98 0.21 1.0 0.1 5.0

g/kg

0

100

200

300

400

500

600

Capric Lauric Myristic Palmitic Stearic Oleic Linoleic Linolenic

Palm oil

PKO

Soy oil

Coco oil

Palm olein

Source:

• What can we get from FFSBM?

• Which ingredients are replaced by FFSBM?

• Is FFSBM and economical alternative?

What is Fullfat SBM?

Produced by either extrusion, expansion, roasting, etc.

FFSBM production process

Soybean (start w/ good quality beans)

Processing;(Extrusion, Expansion,

Toasting, etc: (reduce TIA, ruptures oil

cells; increase digestibility of nutrient)

FFSBM (high energy, high

Linoleic acid, high protein/AA)

WHY FFSBM?

• Contains not only energy but also protein and amino acids;

• Contains good quality oil (Essential Fatty Acid content)

• Increasing prices of energy sources; (vegetable oil and grains)

• Continuous improvement in animal genetics higher nutrient requirement;

• Better uniformity in mixing

• Availability & Freshness;

• Plant base – less risk of contamination

• Linoleic acid (Polyunsturated fatty acids) (52% of oil)

- Prevents dry hair & hair loss - Promotes wound healing

• Lecithin (Phospholipids) (1.5-2.5mg/kg)

- Improves fat digestion

• Vitamin E (Tocopherol) 42 mg/kg - Powerful anti oxidant

- Blocks damaged during storage –more stable

Nutrient components of FFSBM

ME Swine, kcal/kg 3500-3800

Crude Protein 36-38%

Crude Fat, % 18.0 %

Amino Acids, total

Lysine 2.65

Methionine 0.54

Threonine 1.69

Tryptophan 0.52

Fullfat soybean meal;

Energy source beyond coconut oil

FFSBM production & usage in SEA,

2016, (MT)

Thailand – 950,000 – 980,000

Vietnam – 275,000-300,000

Indonesia – 160,000 – 180,000

Philippines –110,000 -120,000

Fatty acids in diff vegetable oil

Palm oil PKO Palm Olein Coco oil Soy oil

U/S 0.98 0.21 1.0 0.1 5.0

g/kg

0

100

200

300

400

500

600

Capric Lauric Myristic Palmitic Stearic Oleic Linoleic Linolenic

Palm oil

PKO

Soy oil

Coco oil

Palm olein

Source:

• Shadow pricing; other energy sources and (regular) SBM

• Quality – less risk of contamination (ie: PED)

• Supply

• Animal performance

Economic Evaluation

Nutrient contribution of FFSBM

Diet Inc. Rate,% MEkcal/kg CP Linoleic acid

Pre-starter 10.0 356/11.0% 3.8/18.0% 0.80/49.0%

Starter 8.0 283/8.8% 3.0/16% 0.64/53.0%

Lactating 12.0 515/16.3% 5.5/34.5% 1.16/64.7%

Layers 5.0 180/6.8% 1.8/10.58% 0.40/26.7%

Animal Performance is the ultimate test!

Study 1. Different Levels of FFSBM & Coco oil in Layers Batangas, Philippines

July 2016

Production

Parameters (Egg) T1 (FarmDiet) T2 T3

(US) FFSBM, % 2.5 5.0 7.5

Coco oil, % 1.5 1.0 0

Prod'n, % 84.02 85.39 84.34

ADFI, g 112.06 113.96 111.68

FCR, g/g 2.628 2.613 2.645

Egg wt, g 51.05 51.33 50.57

Egg mass, g 42.89 43.83 42.65

Liveability, % 98.88 99.37 99.38

Economic Parameters T1 T2 T3

Total Eggs prod (pcs) 27,201 27,348 26,867

Sale Value (PhP) 118,293.10 119,172.80 116,790.00

Feeds Consumed (kg) 3398.50 3439.45 3410.05

Cost of Feed Cons (PhP) 62838.27 63354.67 62813.12

IOFC (PhP) 55,454.84 55,818.13 53,976.88

Study 1. Different Levels of FFSBM in Layers Batangas Philippines

July 2016

Study 2. Different Source of FFSBM in Layers Batangas Philippines

August 2016

Production

Parameters

T1

Fam Diet

(2.5% US FFSBM)

T2

(5.0%; US Extruded

FFSBM)

T3

(5.0%; Unknown

origin/

Unknown process)

Coconut oil 1.5 1.0 1.0

Prod'n, % 90.93 91.70 91.02

ADFI, g 113.60 115.33 115.52

FCR, g/g 2.417 2.430 2.453

Egg wt, g 50.71 50.86 50.76

Egg mass, g 46.11 46.64 46.21

Liveability, % 99.77 99.88 99.76

Economic Parameters

T1 Fam Diet

(2.5% US FFSBM)

T2 (5.0%; US Extruded FFSBM)

T3 (5.0%; Unknown

origin/ Unknown process)

Total Eggs Prod (pcs) 27,201 27,348 26,867

Sale Value (PhP) 118,293.10 119,172.80 116,790.00 Feeds Consumed (kg) 3,398.50 3,439.45 3,410.05

Cost Feed Cons. (PhP) 62,838.27 63,354.67 62,813.12

IOFC (PhP) 55,454.84 55,818.13 53,976.88

Study 2. Different Source of FFSBM in Layers Batangas Philippines

August 2016

• The level of FFSBM inclusion rate affects performance; 5% is better than 2.5%

• The addition of coconut oil further improves performance; improving EFA levels

• The source (Quality & Process) of soybeans affect performance;

– ME, DEAA,

– Degree of heating

– Uniformity

Conclusion on Layer Performance

Comparison of two FFSBM sources with &

without coconut oil in piglet diets. Batangas, Philippines. May 2013.

1. T1 - EXTRUDED FFFSBM made of US soybeans #2 with COCO OIL 2. T2 - EXTRUDED FFFSBM made of US soybeans #2 without COCO OIL 3. T3 - EXTRUDED FFSBM made of Non-US soybeans, with COCO OIL 4. T4 - EXTRUDED FFSBM made of Non-US soybeans, without COCO OIL 5. T5 - CONTROL- Regular farm diet (Corn, US DHSBM, EXTRUDED FFSBM made of US soybean and COCO OIL)

TX# Ini wt,

kgs

Final

wt.kgs

Wt gain,

kg

ADG ADFI,g FCR Feed cost,

Php/lkg

Feed

cost/kg

gain, PhP

Feed cost/kg

gain, US$

T1 8.28 22.43 14.15 476.0ªᵇ 868 1.91ᵇ ͨ 24.19

($0.59)

46.20 1.127

T2 8.22 20.55 12.33 415.0ᵇ ͨ 811 2.06 ªᵇ 24.50

($0.60)

50.88 1.241

T3 8.38 20.67 12.20 421.0ᵇ ͨ 817 1.96 ᵇ ͨ 24.19

($0.59)

47.41 1.156

T4 8.27 19.37 11.10 373.0 ͨ 825 2.21 ª 24.50

($0.60

54.26 1.323

T5 Farm

diet 8.05 21.16 13.11 452.0 ᵇ 970 2.1 ͨ 23.50

($0.57)

50.64 1.235

FFSBM in Piglets. Performance summary

P-

value 0.004 0.002

9

Performance summary, day 30

0.476 0.429 0.414 0.374 0.443

0.889 0.888 0.817 0.833

0.963

1.875

2.080

1.868

2.246 2.178

0.000

0.500

1.000

1.500

2.000

2.500

+ coco oil No coco oil + coco oil No coco oil

US FFSBM ARG FFSBM Farm diet

Dietary treatment

ADG, kg ADFI, kg FCR

Quality Parameters

• Quality of beans

• Processing technique

• Handling & storage

• Soybeans

• Fullfat SBM

Effect of Soy Oil on SID of AA in SBM and SPC

50

55

60

65

70

75

80

85

90

95

100

Lys Met Thr Trp

Without oil With oil

H. H. STEIN. USSEC FTNW 2014. MANILA

a b b a b b a a

Economic comparison of FFSBM & coco oil based on ME & EAA content

Coconut oil

FFSBM L- Lysine Dl-Meth L-Threo L-Tryp

ME,Kcal/kg 8000 3800 4250 5280 3355 3355

CP, % 0 38 92.8 58.0

Lysine, % 0 2.65 78.0

Methionine 0 0.54 99.0

Threo,% 0 1.69 99.0

Tryp,% 0 0.52 98.0

US$/MT 1,800 600.00 1800.00 3500.00 2000 12000

US$/1000 KCAL ME

225.0 157.89 423.52 662.88 596.12 3576.75

US$/ % CP

US$/ % AA 2.31 3.53 2.02 12.24

Add’l value of AA in FFSBM

6.12

1.91

3.41 6.36

Additional value of FFSBM = US$ 67.11 (ME) + 17.80 (EAA)

= US$84.91

Philippines Vietnam* Thailand

Pork 14.71 28.77 10.10

Beef 2.90 9.64 1.92

Chicken 10.45 12.71 7.85

Per Capita consumption, kgs

Source: FAO OEC Data 2015

*Vietnam is based on liveweight

Per capita egg consumption of

some countries PHILIPPINES: 94

Source: G Cervantes, PCPP 2016

Raw material opportunity indicators

for the Feed industry

(For 100M people):

• An extra 100 g chicken per

year/person;

• needs 200,000 MT of feeds;

• 100,000 MT of corn

• 50,000 MT of SBM ( inc rate 25%)

• An extra egg per year/person;

• needs 100,000 MT of feed

• 50,000 MT of corn

• 10,000 MT of SBM (10% inc rate)

• An extra 200 g pork per

year/person;

• needs 625,000 MT of feeds;

• 312,500 MT of corn (inc rate 50 %)

• 125,000 MT of SBM (inc rate 20%)

• FFSBM is a great source of both energy and essential amino acids;

• Can replace vegetable oil, higher ME with better essential fatty acid profile (52% linoleic acid).

• FFSBM has other important components; phospholipids and lecithin

• Improves palatability and reduces dustiness thus increasing feed intake; fresh source of oil

• Can be used w/o limit; up to 25% - better performance

• Currently, has a premium of moretahn US$ 80,.00/MT vs coconut oil.

Conclusions

• Nutrient requirement of feeds; – Energy content- kind of feeds (others; linoleic acid req) – Other raw material available

• Quality: – Beans - protein, oil – Processing: (extrusion, expansion, roasting.. etc.)

• degree of cooking, moisture, handling & storage ( TIA, Urease activity/PSKOH, EE/acid hydrolysis)

• Price: relative to coconut or palm oil/SBM – other energy sources (grains, cassava meal, tallow, etc)

Recommendations; FFSBM utilization

THANK YOU