2023
Estimating the Impacts of Increased Crushing Capacity
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Contributor/Checkoff:
United Soybean Board
Category:
Feed
Keywords:
Broiler chickensDairyEconomic studiesMarket researchSoy mealSwineTurkeys
Parent Project:
This is the first year of this project.
Lead Principal Investigator:
Todd Doehring, Centrec Consulting Group, LLC
Co-Principal Investigators:
Project Code:
23-105-D-C-1-A
Contributing Organization (Checkoff):
United Soybean Board
$120,385
Institution Funded:
Centrec Consulting Group, LLC
$120,385
Brief Project Summary:
The objective of this proposal is to deliver a forecasting model that estimates the impact of additional crushing capacity on the U.S. Soy complex, enabling U.S. soybean farmers to be more resilient to changing market dynamics. U.S. soybean processors have maintained strong crushing margins, driven by robust soybean oil (SBO) demand. These profits are leading to new investments in crushing capacity.
Information And Results
Project Summary

Project Objectives

Project Deliverables

Progress Of Work

Final Project Results

This project developed a forecasting model that estimates the impact of additional crushing capacity on the U.S. Soy complex. This forecasting model can be used to inform strategic decision making, equipping USB leadership to proactively respond to changing market forces and strengthening USB’s reputation as a trusted resource within the industry.

Benefit To Soybean Farmers

The analysis from this project demonstrates various scenarios of increased soybean crush capacity to quantify the potential impacts to U.S. soybean farmers (dollars per bushel) and the rest of the soy complex (SBO price and SBM price). The analysis can provide insight into the implications of current and future structural change in the industry, including how shifts in supply and demand impact soybean farmers, particularly from increased renewable fuel demand.

The United Soybean Research Retention policy will display final reports with the project once completed but working files will be purged after three years. And financial information after seven years. All pertinent information is in the final report or if you want more information, please contact the project lead at your state soybean organization or principal investigator listed on the project.