GRAPEVINE, Texas – U.S. soybean growers are preparing to recoup some of the fry oil market they have lost to Canadian canola growers in recent years.
Pioneer Hi-Bred International Inc. is planning a limited introduction of its high oleic GM soybeans in 2009, a crop that will compete head-to-head with high oleic canola in the expanding market for trans fat free oils.
“It’s the first biotech soybean product with direct consumer benefits,” said John Muenzenberger, Pioneer’s business manager for soybean output traits.
The crop has received regulatory approval from the U.S. Food and Drug Administration and is awaiting approval from the U.S. Department of Agriculture, which is expected shortly.
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Acreage levels will be small in 2009 with significant expansion targeted for 2010 and 2011.
“We have some very aggressive ramp-up plans as we move forward,” said Muenzenberger.
Soybean oil accounts for nearly 71 percent of the U.S. vegetable oil market. But recently, it has lost ground to canola, corn and palm oil, which have been displacing partially hydrogenated soybean oil in products where the food industry is worried about trans fat levels.
Pioneer’s new product contains 75 percent or greater oleic acid levels, which is comparable to the high oleic canola oil that has been making huge inroads in the fast food industry.
“We think this (crop) has the profile and the benefits that will bring the soybean share back up,” said Muenzenberger. “It will stabilize U.S. soybean acres.”
But while it will be competing with high oleic canola, the two commodities will be vying for an expanding market, so one product’s gain won’t necessarily be at the expense of the other, he said.
Pioneer’s high oleic varieties have generated the same yields in field trials as its top soybean lines and it offers growers the same package of traits as those lines.
In addition to marketing the oil in food markets, Pioneer plans to follow the lead of the canola and sunflower industries by selling the product into industrial markets.
Because it is a highly stable oil capable of withstanding high heat, it can be sold as a green alternative to petroleum based products in applications like electric transformers, hydraulics, lubricants, foam products and crankcase oils.
“We’re just starting to explore those opportunities,” said Muenzenberger.
