Canada Agriculture Online, Canada
04-13-07
U.S. giants favor low-lin soyoil
Low-linolenic soybeans will give low-lin canola a run for its money,
especially in a U.S. market that already favors soyoil
by Jay Whetter
The U.S. soybean industry is building toward 3 million acres of low-linolenic
soybeans per year, and these specialty soys have a market edge over specialty
canola in the U.S. because companies using soy want to stick with soy. Kentucky
Fried Chicken (KFC) made headlines in Canada for switching to specialty canola
oil in its fryers. KFC also switched frying oils in the U.S., but in that country it
went with low-lin soyoil.
“The U.S. food industry is looking for a soy solution,” says Troy Hobbs, business
manager with Bunge DuPont Biotech Alliance in St. Louis, Misssouri. “If we don’t
provide that for them, then our friends in the canola industry will do it for us.”
(Taco Bell in the U.S. announced in November a switch to specialty canola oil.)
Pioneer Hi-Bred, the low-lin seed wing of the Bunge DuPont alliance, brought
low-linolenic soybeans to the market in the late 1990s. But the company put them
on hold while waiting for the regulatory environment to come around. The U.S.
Food and Drug Administration announced in 2003 that trans fat labeling would
take effect January 2006, putting low-linolenic soybeans back on track. Pioneer
had about 200,000 acres under identity-preserved production in the U.S. in 2006,
and that will increase for 2007. Bunge DuPont has participating elevators in Iowa,
Illinois, Indiana, Ohio, Michigan and Missouri. These elevators offer a premium of
up to US40¢ per bushel for low-lin soybeans over standard soybeans.
Standard soybean oil has 8% linolenic acid, which is the most unstable of the
oilseed fatty acids. (Standard canola oil has 11%.) Specialty soyoils from Pioneer
and Monsanto have less than 3% linolenic acid. Iowa State University
developed an ultra-low soybean, sold under the Asoyia brand, with less than 2%
linolenic acid. These low-lin soybeans don’t require hydrogenation to make them
stable for use in fryers and processed food. And hydrogenation, as you probably
know, is the process that creates trans fatty acids. Therefore foods fried in low-lin
veg oils have lower trans fat. “Low-lin soybeans are definitely targeted at the
trans fat issue,” says Hobbs. “Food companies like low-lin soybeans because
they have the same functionality and same flavor as soybeans.”
A new oil must have the following 3 components, Hobbs notes, before a big food
company will consider switching:
* Functionality to fit current processing systems
* Reliable supply (a company/industry has to show it has the volumes
and the risk management to satisfy buyers)
* A price competitive with other options on the market
Two big companies have already agreed to switch oils. In December 2005,
Kellogg’s said low-lin soyoil would be a platform ingredient for them. And as
noted, KFC announced in October 2006 that its 5,500 restaurants in the U.S. will
switch from partially hydrogenated soybean oil to low-lin soyoil. KFC says the
conversion follows 2 years of extensive testing of oil options to identify the same
taste profile. Once the transition is complete, KFC’s signature products will
contain zero grams of trans fat.
Monsanto took the KFC announcement as an opportunity to tout its own low-lin
soyoil, called Vistive. Jerry Steiner, executive vice-president of Monsanto, said in
a press release that “demand for this type of oil continues to outstrip supply.”
This no doubt has to change in 2007 to satisfy Kellogg’s and KFC. Monsanto had
about 500,000 acres of Vistive soybeans in 2006 and will expand that again in
2007. Monsanto has licensing agreements with at least 11 seed breeding
companies.
So far, the push for low-lin soybeans has remained a U.S. movement. Pioneer
Hi-Bred does have low-lin varieties that will work in eastern Canada, but there is
not much soybean oil used in Canada, Hobbs says. “Canada is getting along
very well with a canola solution to address its labeling regulations,” he adds.