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Potential soymeal glut a dilemma as soybean crush capacity grows
There are concerns growth in domestic soybean crushing capacity will result in a glut of soybean meal.
Global oilseed consultant John Baize says there are at least five expansions and about a dozen new plants coming online by 2025.
“We’re going to need to crush maybe 540 million more bushels of soybeans every year to run those plants, and that’s great. We’re going to get high premiums for the oil most likely, but we’re going to be producing about 12 or 13 million more tons of soybean meal that we’re going to need to get rid of out of the U.S or exported because we’re not going to have the domestic demand.”
The renewable diesel industry is consuming more and more soybean oil, but Baize tells Brownfield if there’s no market for the soymeal.
“We don’t crush the soybeans, that’s the plain reality. So that’s the big challenge we face in the next five to seven years.”
New soy crush facilities are being built in the Dakotas, Minnesota, Iowa, Nebraska, and Kansas, with several others planned in the South.
Brownfield interviewed Baize during the Minnesota Soybean Future of Soybean Retreat in Brainerd Wednesday.
