Organic Soybean Market Trends

Factors Driving the Demand for Organic Soybeans

High Profit Margin in Organic Soybeans

Key Points:

Organic soybean prices in the U.S. were $10 to $15 per bushel higher than conventional prices from 2011-14.

The cost of production for organic soybeans was $6.5 to $7.8 per bushel higher during the same time.

The higher prices for organic soybeans are mainly because of the increasing demand for organic products.

In 2015, the price premium for growing non-GM (genetically modified) food-grade soybeans was eight to nine percent higher than conventional, while non-GM feed-grade soybeans had a 12 to 14 percent premium.

What This Means:

Producers of organic soybeans are making more profit compared to those producing conventional soybeans.

Impact:

The number of farmers growing organic soybeans will increase faster than those growing conventional soybeans.

Conclusion:

Major soybean producers in countries like the U.S., Uruguay, and Bolivia will likely shift towards organic soybean farming because of the higher profit margin.

The difference in prices between organic and conventional soybeans will depend on the growing demand for non-GMO feed-grade soybeans

Growing Demand for Non-GMO Soybean ProductsKey Points:
The market for non-GMO (genetically modified organism) verified soybean, corn, meat, dairy, and egg products is getting bigger.
More people want non-GMO animal feed products, and the demand is going up.
Feed suppliers say that this is happening because more consumers are learning about GMOs (genetically modified organisms) and wanting healthier foods.

What This Means:
People are asking for non-GMO soybean products like soy milk, tofu, soy sauces, and soy oil because they're becoming more aware of healthy choices.
Impact Big companies that make tofu, soy milk, soy oil, and soy sauces will likely make more products using organic or non-GMO soybeans in the future.
Conclusion:
Consumers are choosing healthier foods, and this will make the demand for organic tofu and soy milk go up since they're seen as good sources of protein.
As more people want non-GMO foods, it will become easier to verify that products are non-GMO. Even smaller suppliers will get involved because of the increasing demand for non-GMO food products.