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1 FULLFAT SOYBEAN MEAL: AN OPPORTUNITY BEYOND VEGETABLE OIL AS ENERGY SOURCE FOR ANIMAL FEEDS Livestock & Poultry Expo Clark, Pampanga February 28 - March 1, 2017 Basilisa P. Reas, DVM MSc Technical Manager USSEC- SEA

2 Major components of swine & poultry diets; Energy sources About 50-55% Cereal grains & fat/oil sources Protein & Amino acid About 30-35% Oilseeds & animal by-products 80-85% of feed cost 2

3 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , ,969 0 Philippine Feed wheat Imports, (PAFMI, December 2016) 146,066 50,340 % according to origin 293, ,892 1,535, ,700 1,172, , , , , , , , ,000 45, , , ,201 43, , , , ,000 US INDIA Australia Brazil Blacksea RUSSIAN Canadian EU Year US India Aus Bra Black Sea RU S/B ul CND EU Total amount, MT % 1,172, % 0.69% 1,645, % 26% 50% 1,050, % 4% 33% 4% 37% 3% 13& 1,149, % 17% 24% 23% 15% 2.5% 10% 1,719, % 31% 2,208,190

4 Philippine Yellow Corn Imports, * (PAFMI, December2016) 1,000, , , , ,000 0 US Argentine Vietnam Thai Indonesia India mymar % according to origin Year US Arg Viet Thai Indo IND MYM Total amount in Mt % 37% 74, % 94, % 4% 303, % 6% 5% 69% 2% 1% 637, % 23% 19% 37% 215, % 525,109

5 Philippine Soybean meal Importation, Source: PAFMI, December.2017 US India Arg. China Total 2,489,286 1,811,835 1,871,009 1,800,097 1,869,344 1,549,848 1,296,770 1,211,560 1,298, ,097 1,015,164 1,184, , , , , , ,240 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , , ,015 8, , % according to Origin Year US ARG India Brazil TOTAL Vol, MMT ,811, ,800, ,871, , , * ,565,64

6 ME of major ingredients DDGS Cassava Wheat Corn Fish meal FFSBM SBM, DH SBM, NDH Palm Kernel Meal Copra meal ME, kcal/kg Copra meal Palm Kernel Meal SBM, NDH SBM, DH FFSBM Fish meal Source: ASA-IM Tech Bull 2004

7 Raw Material Average raw material prices & farm gate prices as of February 15, 2017 Price, PhP/kg Y corn (COD) Feed wheat US SBM Arg SBM NA Fish meal, Peru Fish meal, local Ricebran Pollard Copra meal Coco oil Palm oil Farm gate prices Price, PhP/kg Broiler, Integrator Broiler, commercial DOC Hog, commercial Hog, backyard Source: PAFMI, Feb 15, 2017 Mollasses 11.20

8 SOYBEAN COMPOSITION Source: Nutritional and Health Benefits of Soy; The Soybean Fact Book: Nutritional and Health by ASAIM; c2007.

9 All SBMs are not the same!!; Classification of SBM according to processing involved: DH SBM High protein, low fiber NDH SBM Low protein, high fiber Fullfat SBM High energy, high protein (high energy;high protein Soy Protein Concentrates Soy Isolates, etc.. Soybeans Temper, dehull, flake Hexane extract Desolventize, toast Soybean meal Soy protein concentrate Extrude, expand or roast and cool Crude soy oil White flakes Ethanol extract Soy molasses Refine RDB Soy oil Soy hulls FFSBM

10 Fatty acid sources differ Animal-sources Beef tallow 50% Saturated Mutton fat /pork lard 45% Saturated Poultry fat 30% Saturated Plant sources Palm oil Saturated ; Palmitic Palm kernel oil Saturated; Lauric, Myristci Coco oil Saturated; Lauric, Myristic Soy oil, sunflower, maize Unsatuarted; Linoleic Rapeseed Unsaturated; Oleic Linseed Unsaturated; Linolenic

11 Fatty acids in diff vegetable oil 600 g/kg Palm oil PKO Soy oil Coco oil Palm olein Capric Lauric Myristic Palmitic Stearic Oleic Linoleic Linolenic Palm oil PKO Palm Olein Coco oil Soy oil U/S Source:

12 What is Fullfat SBM? Produced by either extrusion, expansion, roasting, etc. What can we get from FFSBM? Which ingredients are replaced by FFSBM? Is FFSBM and economical alternative?

13 FFSBM production process Soybean (start w/ good quality beans) Processing;(Extrusion, Expansion, Toasting, etc: (reduce TIA, ruptures oil cells; increase digestibility of nutrient) FFSBM (high energy, high Linoleic acid, high protein/aa)

14 WHY FFSBM? Contains not only energy but also protein and amino acids; Contains good quality oil (Essential Fatty Acid content) Increasing prices of energy sources; (vegetable oil and grains) Continuous improvement in animal genetics higher nutrient requirement; Better uniformity in mixing Availability & Freshness; Plant base less risk of contamination

15 Fullfat soybean meal; Energy source beyond coconut oil Nutrient components of FFSBM ME Swine, kcal/kg Crude Protein 36-38% Crude Fat, % 18.0 % Amino Acids, total Lysine 2.65 Methionine 0.54 Threonine 1.69 Linoleic acid (Polyunsturated fatty acids) (52% of oil) - Prevents dry hair & hair loss - Promotes wound healing Lecithin (Phospholipids) ( mg/kg) - Improves fat digestion Vitamin E (Tocopherol) 42 mg/kg - Powerful anti oxidant - Blocks damaged during storage more stable Tryptophan 0.52

16 FFSBM production & usage in SEA, 2016, (MT) Thailand 950, ,000 Vietnam 275, ,000 Indonesia 160, ,000 Philippines 110, ,000

17 Fatty acids in diff vegetable oil g/kg Palm oil PKO Soy oil Coco oil Palm olein 0 Capric Lauric Myristic Palmitic Stearic Oleic Linoleic Linolenic Palm oil PKO Palm Olein Coco oil Soy oil U/S Source:

18 Economic Evaluation Shadow pricing; other energy sources and (regular) SBM Quality less risk of contamination (ie: PED) Supply Animal performance

19 Nutrient contribution of FFSBM Diet Inc. Rate,% MEkcal/kg CP Linoleic acid Pre-starter /11.0% 3.8/18.0% 0.80/49.0% Starter /8.8% 3.0/16% 0.64/53.0% Lactating /16.3% 5.5/34.5% 1.16/64.7% Layers /6.8% 1.8/10.58% 0.40/26.7%

20 Animal Performance is the ultimate test!

21 Study 1. Different Levels of FFSBM & Coco oil in Layers Batangas, Philippines July 2016 Production Parameters (Egg) T1 (FarmDiet) T2 T3 (US) FFSBM, % Coco oil, % Prod'n, % ADFI, g FCR, g/g Egg wt, g Egg mass, g Liveability, %

22 Study 1. Different Levels of FFSBM in Layers Batangas Philippines July 2016 Economic Parameters T1 T2 T3 Total Eggs prod (pcs) 27,201 27,348 26,867 Sale Value (PhP) 118, , , Feeds Consumed (kg) Cost of Feed Cons (PhP) IOFC (PhP) 55, , ,976.88

23 Study 2. Different Source of FFSBM in Layers Batangas Philippines August 2016 Production Parameters T1 Fam Diet (2.5% US FFSBM) T2 (5.0%; US Extruded FFSBM) T3 (5.0%; Unknown origin/ Unknown process) Coconut oil Prod'n, % ADFI, g FCR, g/g Egg wt, g Egg mass, g Liveability, %

24 Study 2. Different Source of FFSBM in Layers Batangas Philippines August 2016 Economic Parameters T1 Fam Diet (2.5% US FFSBM) T2 (5.0%; US Extruded FFSBM) T3 (5.0%; Unknown origin/ Unknown process) Total Eggs Prod (pcs) 27,201 27,348 26,867 Sale Value (PhP) 118, , , Feeds Consumed (kg) 3, , , Cost Feed Cons. (PhP) 62, , , IOFC (PhP) 55, , ,976.88

25 Conclusion on Layer Performance The level of FFSBM inclusion rate affects performance; 5% is better than 2.5% The addition of coconut oil further improves performance; improving EFA levels The source (Quality & Process) of soybeans affect performance; ME, DEAA, Degree of heating Uniformity

26 Comparison of two FFSBM sources with & without coconut oil in piglet diets. Batangas, Philippines. May T1 - EXTRUDED FFFSBM made of US soybeans #2 with COCO OIL 2. T2 - EXTRUDED FFFSBM made of US soybeans #2 without COCO OIL 3. T3 - EXTRUDED FFSBM made of Non-US soybeans, with COCO OIL 4. T4 - EXTRUDED FFSBM made of Non-US soybeans, without COCO OIL 5. T5 - CONTROL- Regular farm diet (Corn, US DHSBM, EXTRUDED FFSBM made of US soybean and COCO OIL)

27 FFSBM in Piglets. Performance summary TX# Ini wt, kgs Final wt.kgs Wt gain, kg ADG ADFI,g FCR Feed cost, Php/lkg T ªᵇ ᵇ ($0.59) T ᵇ ªᵇ ($0.60) T ᵇ ᵇ ($0.59) T ª ($0.60 T5 Farm diet ᵇ ($0.57) Feed cost/kg gain, PhP Feed cost/kg gain, US$ P- value

28 Performance summary, day coco oil No coco oil + coco oil No coco oil US FFSBM ARG FFSBM Farm diet Dietary treatment ADG, kg ADFI, kg FCR

29 Quality Parameters Soybeans Fullfat SBM Quality of beans Processing technique Handling & storage

30 Effect of Soy Oil on SID of AA in SBM and SPC Without oil With oil a b a b a b a b Lys Met Thr Trp H. H. STEIN. USSEC FTNW MANILA

31 Economic comparison of FFSBM & coco oil based on ME & EAA content Coconut FFSBM L- Lysine Dl-Meth L-Threo L-Tryp oil ME,Kcal/kg CP, % Lysine, % Methionine Threo,% Tryp,% US$/MT 1, US$/1000 KCAL ME US$/ % CP US$/ % AA Add l value of AA in FFSBM Additional value of FFSBM = US$ (ME) (EAA) = US$84.91

32 Per Capita consumption, kgs Philippines Vietnam* Thailand Pork Beef Chicken Source: FAO OEC Data 2015 *Vietnam is based on liveweight

33 Per capita egg consumption of some countries PHILIPPINES: 94 Source: G Cervantes, PCPP 2016

34 Raw material opportunity indicators for the Feed industry (For 100M people): An extra 100 g chicken per year/person; needs 200,000 MT of feeds; 100,000 MT of corn 50,000 MT of SBM ( inc rate 25%) An extra egg per year/person; needs 100,000 MT of feed 50,000 MT of corn 10,000 MT of SBM (10% inc rate) An extra 200 g pork per year/person; needs 625,000 MT of feeds; 312,500 MT of corn (inc rate 50 %) 125,000 MT of SBM (inc rate 20%)

35 Conclusions FFSBM is a great source of both energy and essential amino acids; Can replace vegetable oil, higher ME with better essential fatty acid profile (52% linoleic acid). FFSBM has other important components; phospholipids and lecithin Improves palatability and reduces dustiness thus increasing feed intake; fresh source of oil Can be used w/o limit; up to 25% - better performance Currently, has a premium of moretahn US$ 80,.00/MT vs coconut oil.

36 Recommendations; FFSBM utilization Nutrient requirement of feeds; Energy content- kind of feeds (others; linoleic acid req) Other raw material available Quality: Beans - protein, oil Processing: (extrusion, expansion, roasting.. etc.) degree of cooking, moisture, handling & storage ( TIA, Urease activity/pskoh, EE/acid hydrolysis) Price: relative to coconut or palm oil/sbm other energy sources (grains, cassava meal, tallow, etc)

37 THANK YOU

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