Nutritional Values of us Soy and its importance in feed formulation

1. Nutritional Values of US Soy and its
importance in Feed formulation
Matthew Clark
FeedGuys Resources Pte Ltd
Singapore

2. Overview of Genesis Feed Technologies’ Topics & Presentation
• Genesis Feed Technologies has built a new platform for USSEC for economic analysis
of Soybean Meals from different sources
• The platform is built for buyers to make choices of Soybean Meal sourcing without
needing to constantly call on the technical expertise of a nutritionist
• The platform utilizes the feed millers’ process for to optimize the choice of SBM
– Commercial methods
– Technical methods
– Enterprise model of your business to understand the formula cost dynamics
• Evaluates economics of Soybean Meal (SBM) sources value using:
– Real-time quality and price data
– Regional data for your business and geography
– Different formula types and quantities related to your business

3. Section 1 – Nutrient Data
Introducing the key nutrients and the data sets used in the
comparison.
Overview of published data on Soybean nutrients for both poultry
and swine from peer reviewed papers

4. Required nutritional characteristics in SBM
• Crude Protein – an estimate of true protein by measuring Nitrogen content
• Total Amino acids – chemical assay for the protein building blocks
• Digestible Amino Acids – the amino acid levels that can be absorbed and used for
protein synthesis. Also referred to as Standardized Ileal Digestible Amino Acids (SID
AA)
• Amino acid digestibility – For each amino acid, the ratio between the digestible
amino acid value and its total value
• Metabolizable Energy – it is important to understand the ingredients Energy
characteristics better. (ME for Swine and ME for Poultry)
• SBM contributes approximately 30% of the energy in diets. Energy is a key economic
component accounting for 60% of the diet cost in monogastric diets.

5. Buyer Profile
Protein Buyer
 Disconnected from nutritional requirements
 Difficult to educate
 Need to demonstrate that money is being
lost by the disconnect
Trader
Protein + AA
 Formula limit for legal reasons.
 Increased cost of diet.
 Sensitive to AA levels in ingredients
 Some will purchase on protein only,
some on protein plus AA
 Relatively easy to convert
Commercial Feed
Mfg.
AA
 Utilizing SBM nutrients efficiently
 Have the lowest cost feeds
 Performance mentality in feed
formulation and purchasing
Integrator
Different types of buyer

6. Chemical Composition and Energy Values of SBM Samples
• AMEn = Apparent Metabolizable Energy, corrected for endogenous Nitrogen loss – POULTRY
• MSM = Margin of Safety Method x – ½ SD
Garcia-Rebollar et al 2016
Mean MSM
88.50 88.50
6.70 6.70
47.08 46.54
1.69 1.42
3.82 4.07
7.97 8.45
2,090 2,291
Analysis
Dry Matter
Ash
Crude Protein
Ether Extract
Crude Fibre
NDF
AMEn
Proximate US SBM
Mean MSM
88.40 88.40
6.35 6.35
47.03 46.36
1.79 1.56
5.43 5.95
10.43 11.28
2,025 2,270
Brazil SBM
Mean MSM
88.60 88.60
6.64 6.64
45.81 45.09
1.68 1.48
4.61 5.22
9.04 9.98
2,058 2,248
Argentine SBM

7. Comparison of Total and Digestible Amino Acid Levels – Poultry (As Fed)
• Standard Ileal Digestibility Coefficients for Poultry from Ravindran et al 2014
• Total Amino Acid data from Garcia-Rebollar et al 2016
• The differences are small but do have an economic impact
• US SBM has advantages on all the key Standard Ileal Digestibility Amino Acid values
2.90 2.81 2.75
0.65 0.63 0.62
0.71 0.70 0.70
1.35 1.33 1.32
1.84 1.81 1.78
0.65 0.63 0.62
2.13 2.10 2.04
2.24 2.20 2.15
91.00 89.90 90.90
89.50 89.90 89.70
76.30 70.60 71.40
83.30 83.10 83.40
89.00 89.00 89.00
87.50 87.00 87.80
86.50 86.10 87.00
2.64 2.53 2.50
0.58 0.56 0.55
0.54 0.49 0.50
1.12 1.06 1.05
1.53 1.50 1.48
0.57 0.56 0.55
1.87 1.82 1.79
1.94 1.89 1.87
USA Bra Arg
Total Amino Acid As FedAmino
Acid
Lys
Met
Cys
M&C
Thr
Trp
Ile
Val
USA Bra Arg
SID Coefficients
USA Bra Arg
SID Amino Acid Poultry

8. Lysine Levels in Soybean Meals
• Lysine in US SBM is generally higher than Bra or Arg SBM
• Lysine:crude protein ratio does not change significantly with
changes in crude protein of the meal

9. Methionine Levels in Soybean Meals
• Methionine also shows differences between country of origin
• As crude protein in the SBM meal the Methionine:crude protein
ratio falls slightly

10. Additional US SBM @46% and Bra @47.5%
SMSBM Argentina SBM Brazil SBM USSBM Arg SBM Copy Bra SBM 47.5 US SBM 46 Premium SBM
WEIGHT Weight 1.000 1.000 1.000 1.000 1.000 1.000 1.000
PROTEIN Crude Protein 45.810 47.030 47.080 45.810 47.500 46.002 46.500
MEP ME Poultry 2272.922 2295.739 2311.110 2272.922 2295.739 2311.110 2600.000
CFAT Crude Fat 1.476 1.790 1.680 1.476 1.790 1.680 1.500
FIBRE Crude Fibre 4.610 5.430 3.820 4.610 5.430 3.820 3.400
ASH Ash 6.636 6.347 6.699 6.636 6.347 6.699 5.500
DRYMATT Dry Matter 88.600 88.400 88.500 88.600 88.400 88.500 87.000
MOIST Moisture 11.400 11.600 11.500 11.400 11.600 11.500 13.000
NFE N Free Extract 30.068 27.803 29.221 30.068 27.333 30.299 30.100
NDF Neutral Det Fibre 9.040 10.430 7.970 9.977 11.281 8.447 12.400
ADF Acid Det Fibre 12.280 12.280 12.280 12.280 12.280 12.280 10.000
CA Calcium 0.300 0.300 0.300 0.300 0.300 0.300 0.300
APHOS Av Phosphorous 0.240 0.240 0.240 0.240 0.240 0.240 0.240
NA Sodium 0.020 0.020 0.020 0.020 0.020 0.020 0.020
CL Chloride 0.045 0.050 0.035 0.045 0.050 0.035 0.030

11. Additional US SBM @46% and Bra @47.5%
SMSBM Argentina SBMBrazil SBM USSBM Arg SBM Copy Bra SBM 47.5 US SBM 46 Premium SBM
DLYS Digestible Lys P 2.501 2.527 2.642 2.501 2.552 2.581 2.760
DMET Digestible Met P 0.555 0.564 0.578 0.555 0.570 0.565 0.650
DMnC Digestible M&C P 1.055 1.058 1.118 1.055 1.069 1.093 1.223
DTHR Digestible Thr P 1.483 1.500 1.533 1.483 1.515 1.498 1.681
DTRP Digestible Trp P 0.550 0.558 0.575 0.550 0.563 0.562 0.616
DILE Digestible Ile P 1.788 1.823 1.866 1.788 1.841 1.824 1.900
DVAL Digestible Val P 1.871 1.891 1.937 1.871 1.910 1.892 1.930

12. Section 2 – Basic Feed Formulation
Basic Formula which uses Optimization (also referred to as Linear
programming or least cost formulation)
Discussion on the shadow price, which is a familiar concept but
has limitations in commercial practice

13. Practical Session – Shadow prices
• Demonstrate shadow prices in
– COBB202 - Broiler Pre-starter
– COBB203 - Broiler Starter
– COBB204 - Broiler Grower
– BRDRLAY1 - Broiler Breeder layer 1
– LAYER106 - Early phase layer feed
• The Shadow price is a break even price for possible substitute ingredients which is different for each feed
type. It is not the decision point. The decision to buy will be below the break even price as each trade
should make a profit.
• No singe feed can give a representative ranging price for a business producing many feed type. This is
why we recommend an enterprise model

14. The price at which an
ingredient will enter a
the formula at break
even formula cost

15. Practical Session – Shadow Price results US$ per Tonne SBM
• Shadow prices
differ between
feeds.
• Range from zero
base to US$ 38 per
tonne premium for
SBM

16. Practical Session Shadow Price Summary
• Shadow prices are good at showing purchasing potential
• Shadow prices are break even prices
• They vary between feeds
• Do not necessarily show the potential of commercial impact
• Feed cost reduction potential reinforces the commercial case
• Feed cost reduction examples follow

17. Section 3 – Formula Comparisons
Introducing comparative feed formulation
Formulating and displaying the results for five feeds with three
alternative formulas for each with Soybean Meal from:
Argentina
Brazil
USA

18. Broiler Grower, AA limiting – Value
Proposition – three parallel formulas
• The formula cost is reduced by 2.1 USD per
Tonne using Bra SBM.
• US SBM reduces the formula cost by US$
5.05 per tonne
• Thus US SBM has a value advantage of US$
13.88 per tonne
• The nutrient content for US SBM is higher
in all key areas
– Digestible amino acids
– ME level
– Nutrient concentration
• 1000 Kgs of Arg SBM is equivalent to 959
Kgs of US SBM

19. Applying formulation for Broiler feeds for Value Extraction
Sample Broiler formula examples
• Basic formula with Crude Protein unlimited
– COBB202 - Broiler Pre-starter
– COBB203 - Broiler Starter
– COBB204 - Broiler Grower
– BRDRLAY1 - Broiler Breeder layer 1
– LAYER106 - Early phase layer feed
• Demonstration of the value proposition for
– Argentine SBM (the base comparator)
– Brazilian SBM
– US SBM
– Premium SBM produced in Malaysia from US Beans
• Calculate Feed Costs with the different Soybean Meal Types at US$ 400 per tonne

20. Feed Cost Results with different SBM sources
• All SBM sources
at same price of
US$ 400 per
tonne
• Shows profit
potential
• Prices adjusted
later for true
cost

21. Section 4 – Nutrient Costs
Understanding Nutrient Costs
Nutrient restrictions have costs in every formula. They impact the
decisions that we make and can be used to show the economics of
different types of ingredient

22. Nutrient cost information
• Nutrient costs in LP show the cost of
a unit of increase of a particular
nutrient
• Note that only ‘limiting’ nutrients
have a nutrient cost.
• There is no cost of crude protein in
this formula
• ME costs 0.092 in this formula. An
increase of 10 Kcals/Kg results in a
formula cost increase of $0.92 /
tonne feed

23. Sample Broiler Grower – Dig AA limiting (not Crude Protein)
• Cost is US$ 294.20 per tonne. CP is not limiting. Saves US$ 4.79 per tonne compared to same
formula with crude protein limited formula .
• Note that there is a significant restriction cost on Digestible Valine. Last limiting is high cost
Arg SBM ME Poultry 2,274 Kcals/Kg
US SBM ME Poultry 2,312 Kcals/Kg
Difference 38 Kcals/Kg
Nutrient Cost 0.092
US$/Tonne Advantage 3.496
Arg SBM SID Valine 1.87%
US SBM SID Valine 1.92%
Difference 0.05%
Nutrient Cost 152.255
US$/Tonne Advantage 7.613

24. Where does Ingredient value come from?
• Formula cost can be calculated in two ways:
– Either the sum of the product of ingredient cost X ingredient Quantity which encourages
the user to save ingredient cost
– OR the sum of the product of Nutrient Cost X Nutrient Quantity which encourages the
user to source best value nutrient supplies.
• Formulas are technically a collection of nutrients as opposed to a collection of ingredients (as
in a Bill of Materials)
• Least cost formulation enables a nutrient optimization approach and selection of the most
economic nutrient sources

25. Formula cost calculation – by nutrient cost and ingredient cost
Code Nutrient Name Amount Cost Product Code Ingredient Name Amount Cost Product
WEIGHT Weight 1.00 -189.956 -189.956 CORN Corn 55.074 190.00 104.641
PROTEIN Crude Protein 21.30 SBM Argentina SBM 37.466 400.00 149.864
MEPB ME Broiler 2985.00 0.092 276.098 SBM8 Premium SBM
CFAT Crude Fat 6.09 WP Wheat Pollard
FIBRE Crude Fibre 3.28 FFS Full Fat Soya
NDF Neutral Det Fibre 10.31 FAT Feed Fat 3.369 550.00 18.530
ADF Acid Det Fibre 6.46 LIME Limestone 1.242 55.00 0.683
CA Calcium 0.90 6.446 5.802 MDCP MDCP 1.662 560.00 9.307
APHOS Av Phosphorous 0.45 30.187 13.584 DCP DCP
NA Sodium 0.18 20.398 3.672 SALT Salt 0.326 105.00 0.342
CL Chloride 0.24 -8.003 -1.921 BCARB Bicarb 0.150 320.00 0.480
DLYS Digestible Lys P 1.22 14.999 18.299 LLYS Lysine 0.220 980.00 2.156
DMET Digestible Met P 0.63 DLMET Methionine 0.348 1850.00 6.438
DMnC Digestible M&C P 0.91 20.816 18.942 LTHR Threonine 0.143 1420.00 2.031
DTHR Digestible Thr P 0.83 16.428 13.635
DTRP Digestible Try P 0.24
DILE Digestible Ile P 0.81
DVAL Digestible Val P 0.89 153.164 136.316
Total 294.471 Total 294.471

26. Formula cost calculation – Nutrition v. Bill of Materials

27. Comparative Value of Arg v US SBM Components
• Valine is the most profitable nutrient, followed by Metabolizable Energy. Crude protein has no
economic value here
• The technique discovers value of 13.86 US$ per tonne of US SBM over the Arg SBM base
Arg SBM US SBM Difference
MEPB 210.33 213.85 3.51
DLYS 37.52 39.21 1.69
DMnC 21.95 23.26 1.31
DTHR 24.36 24.93 0.57
DVAL 286.57 293.34 6.77
Discovered value 13.86

28. Section 5 – 3rd Generation Web Tool
Enterprise modelling using the whole feed range and with the
monthly tonnage
Used to show the impact of decisions on monthly cost of goods

29. Genesis platform section- Enterprise Demonstration
3rd Generation Web based system for Purchasing Evaluation
• Ingredient matrix entry. Can be modified to suit client
• Feed tonnage in the enterprise set up to enable a total cost of goods calculation,
usage reports and value analysis
• This example shows a 10,000 tonne per month Broiler Enterprise
• Comparative usage report showing differences in purchase quantities
depending on the source of the SBM. This is a major discussion point for value.
• ROI analysis showing profit made with different choices and a statement of the
calculated value of the different SBM sources at enterprise level

30. Ingredient Matrix

31. Feed Tonnage in the A series
• This feed series contains the feeds where crude
protein has been limited to a minimum to meet label
requirements
• Tonnage entered is for a 10,000 tonne per month
broiler enterprise
• There is no limit to the number of feeds that can be
included
• Allows the enterprise to be defined and modelled to
show the optimal purchasing point for a single SBM
source

32. Usage Report A series
• Note that the consumption of US
SBM is lower than the ARG base
• ARG SBM requirement is 3,537
tonnes per month
• US SBM requirement is 3,436 tonnes
per month
• Less Fat and more corn used
• Less supplemental amino acid used

33. ROI Analysis – A series CP Limiting + Dig AA
• Parity price of US SBM is
US$ 511 per tonne
compared to ARG SBM at
486.
• Enterprise premium is US$
25 USD per tonne US SBM
• Additional profit at the
same price would be US$
85,470 per month

34. Feed Tonnage in the B series
• This feed series contains the feeds where crude
protein limits are removed and the dietary protein on
a digestible amino acid base
• Tonnage entered is for a 10,000 tonne per month
broiler enterprise
• There is no limit to the number of feeds that can be
included
• Allows the enterprise to be defined and modelled to
show the optimal purchasing point for a single SBM
source

35. Usage Report B
series
• Note that the consumption of US SBM
is lower than the ARG base
• ARG SBM requirement is 3,474 tonnes
per month
• US SBM requirement is 3,347 tonnes
per month
• Less supplemental amino acid used
• Series B Base cost $ 3,841,954
• Series A Base cost $ 3,855,823
• Crude protein penalty $ 13,869 per
month

36. ROI Analysis – B series Dig AA
• Parity price of US
SBM is US$ 513 per
tonne compared to
ARG SBM at 486.
• Enterprise premium
is US$ 27 USD per
tonne US SBM
• Additional profit at
the same price would
be US$ 89,361 per
month

37. ROI Analysis – A series CP Limiting + Dig AA
• Parity price of US SBM is US$ 511 per tonne compared to ARG SBM at 486.
• Enterprise premium is US$ 25 USD per tonne US SBM
• Additional profit at the same price would be US$ 85,470 per month
ROI Analysis – B series Dig AA
• Parity price of US SBM is US$ 513 per tonne compared to ARG SBM at 486.
• Enterprise premium is US$ 27 USD per tonne US SBM
• Additional profit at the same price would be US$ 89,361 per month
COGs Comparison
• COGS on the formulas with the Crude Protein limits are approx. US$ 13,000 per month more
expensive.
• This cost differential would be higher if margins of safety were applied

38. While the U.S. Soybean Export Council (USSEC) does not guarantee the forecasts or statements of USSEC Staff or Contractors, we have taken care in
selecting them to represent our organization. We believe they are knowledgeable and their presentations and opinions will provide listeners with detailed
information and valuable insights into the U.S. Soy and U.S. Ag Industry. We welcome further questions and always encourage listeners to seek a wide
array of opinions before making any financial decisions based on the information presented. Accordingly, USSEC will not accept any liability stemming from
the information contained in this presentation.
Thank You
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