Reinventing the soybean

By ANNE FITZGERALD
DES MOINES REGISTER AGRIBUSINESS WRITER
November 21, 2004

A new federal food-labeling requirement could be a boon to Iowans championing new soybeans that yield oil that is free of trans fatty acids.

The soybeans, including varieties developed at Iowa State University in Ames, contain reduced levels of linolenic acid, a substance that can shorten the shelf life of soy oil and give it an off flavor.

For decades, soybeans have been hydrogenated to counter those negative effects. But the chemical process of adding hydrogen creates trans fats in soy oil. That's a no-no to today's health-conscious consumers, because trans fats can contribute to coronary heart disease, the No. 1 killer in the United States.

Beginning in 2006, the government will require that food nutrition labels must disclose trans fatty acid content in the product. Food manufacturers are scrambling to find ways to label their products "trans-free."

A small but growing number of Iowans may have an answer: Soybeans that contain as little as 1 percent linolenic acid, compared to the 7 percent found in conventional soybeans. The new soybeans require little, if any, hydrogenation, and their oil is free of trans fats.

Soy oil is found in numerous foods, so the new soybean varieties are garnering attention from major food makers, as well as national fast food chains and other retailers eager to tout products as being trans-free.

Last month, the United Soybean Board, which oversees the soybean checkoff funding for research and promotional efforts, announced creation of Qualisoy, a program intended to boost new emerging markets for soybeans.

Annual demand for so-called "low-lin" soybeans - those low in linolenic acid - could total 2 billion pounds per year, said Ron Heck, a Perry farmer and officer of the American Soybean Association. That would require up to 4 million acres of production, he said.

Iowa produces more soybeans than any other state, and farmers here hope to capture a big piece of the new market.

Among the leaders is a group of farmers in southeastern Iowa. The group is led by Vivan Jennings, a former Iowa State University professor who worked at the U.S. Department of Agriculture in Washington, D.C., before retiring to his family's farm near Winfield.

For several years, Jennings and the farmers have explored how to boost farm income. They formed the Iowa Quality Agricultural Guild and sought to increase their earnings by retaining ownership of their crops through processing and marketing. A year ago, they formed Asoyia, a separate venture that would produce low-lin soybeans and sell oil from the beans to food manufacturers and retailers wanting an alternative to hydrogenated soy oil.

DOUG WELLS REGISTER PHOTOS

Hitting the market this week: New soybeans yield oil that is free of trans fatty acids and contain reduced levels of linolenic acid, a substance that can shorten soy oil's shelf life. Hickory Park restaurant in Ames, shown in the background, has been a testing site for Asoyia oil.

This week , the first containers labeled with the Asoyia brand will hit the market. Initially, the oil will be sold only to restaurants and other food service businesses, not directly to consumers.

Hickory Park, the popular barbecue restaurant in Ames, has been a testing site for the oil.

Jason Wheelock, the restaurant's manager, gives Asoyia oil a thumbs-up. Food fried in it is lighter and better-tasting, he said. The oil has another advantage: Asoyia lasts longer and does not have to be changed as often as conventional cooking oils.

Across town, a few eateries on the Iowa State University campus also will stock the trans-free oil.

Also this week , the Asoyia team will begin to decide where else to market more of the 3.5 million pounds of trans-free soy oil that they expect to extract from the low-lin soybeans they grew this year on 10,000 acres of farmland, primarily in Iowa. Major food manufacturers have already asked to buy the entire supply of Asoyia oil.

Crop seed giants Pioneer Hi-Bred International Inc. of Des Moines and Monsanto Co. of St. Louis also have developed low-lin soybean varieties, although their beans contain up to 3 percent linolenic acid, compared to the Asoyia's 1 percent.

The two companies are expected to contract with farmers to raise up to 200,000 acres of the soybeans next year.

Also next year, several other farmer-owned ventures will be contracting for production of low-lin soybeans. They include Innovative Growers, based in north-central Iowa, and American Natural Soy Processors in Cherokee.

A point of pride for Asoyia is Iowa's strong role in the production of the company's low-lin oil.

ISU soybean agronomist Walter Fehr developed the trans-free soybean varieties being grown by Asoyia farmers. Cargill Inc. is processing the soybeans in Cedar Rapids and refining the oil at its plant in Des Moines. PDM will package, label and store the oil at its facilities in Des Moines. Food distributors Sysco Corp. in Ankeny and Martin Brothers in Cedar Falls will sell bulk containers of Asoyia oil to their food service customers.

DOUG WELLS REGISTER PHOTOS

The fry test: Hickory Park's manager says food fried in Asoyia oil is lighter and better-tasting. It doesn't need to be changed as often as conventional cooking oils.

Jennings and his member farmers retain ownership of the oil throughout production, marketing and distribution. They patterned their approach to business after the California almond growers.

The Iowa group hopes to raise 55,000 acres of the soybeans next year and needs more farmers to raise the crop. Growers will be required to sell their soybeans to Asoyia. In return, contracting farmers will earn a premium on the soy meal and share in profits from sales of the trans-free oil.

• The Iowa Quality Agricultural Guild has 38 farmer-members.

Farmers in Iowa and Illinois raised 10,000 acres of 1 percent linolenic acid soybeans for Asoyia this year.

• Their soybeans averaged about 50 bushels per acre, about 10 bushels above expectations.

• That will yield about 3.5 million pounds of refined soy oil free of trans fatty acids, as well as seed for 2005.

• Every two months, 60 semitrailer truckloads of soybeans will be hauled to Cedar Rapids for processing.

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