Soy protein in baking
Gregory PennerSoy 20/20February 25th, 2004
Overview
• Canadian soybean production• Overview of soy protein uses in
baking• Market analysis• Constraints to growth• Summary
Soybean composition
Protein, 38%
Soluble carbohydrates,
15%
Insoluble carbohydrates,
15%
Oil, 18%
Moisture, ash, other, 14%
Soy processing
Oil
Meal
Crush
Protein 49%Oil 1%Soluble carbohydrates19%Insoluble carbohydrates19%Moisture, ash, other12%
Soyflour
Soygrits
TSP
Fine grind
Coarse grind
Extruded
Soy protein processing
Soymeal Soy proteinconcentrate
Soy proteinisolate
Solublecarbohydrates
Solublefibre
70% protein 95% protein
Uses of soy protein in
baking
What is being used now
• Heat treated commodity soy flour• $0.28/lb FOB Toronto• Mixture of GMO/non-GMO
Value that is being missed1.) Natural bleaching
Lipoxygenase capable of whitening bread flour
Lipoxygenase primary cause of off-flavour1% to 2% soyflour off-flavour not a problem
Enzyme present insoybean
Wheat flour
2.) Low off-flavour soybean
This picture createsexpectations.
Products cannot disappoint.
Soybean varieties with low off-flavour exist.
3.) Functional synergy with wheat flour.
• There are soybean varieties that have the capability of interacting positively with wheat flour.
4.) Okara as an additive
Okara
Protein
Fibre
Probiotic sugars
Market analysis
Ontario bakery exports to the U.S.
0 100 200 300 400
1998
1999
2000
2001
2002
Export value (M Cdn $)
Per capita wheat flour consumption
0 20 40 60 80 100 120
Kg wheat flour/person/year
U.K.
France
U.S.
Canada
Wheat flour consumption
0.0 5.0 10.0 15.0 20.0
Wheat flour consumed MT
Canada
U.S.
U.K.
France
Market penetration assumptions
AssumptionsAmount of soyflour added 1%Market penetration (Canada) 50%Market penetration (U.K.) 30%Market penetration (France) 25%Market penetration (U.S.) 15%
Soy flour opportunity
0 5,000 10,000 15,000 20,000
MT soyflour
Canada
U.S.
U.K.
France
Soyflour value
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
So
yflo
ur
valu
e (C
dn
$)
Canada U.S. U.K. France
Summary of value analysis
• Soyflour cannibalizes wheat flour sales.
• Value add in North American markets leverages wheat product sales.
• Non-GMO/Value add in Europe leverages wheat product sales.
Constraints to growth
Value chain analysis
Variety development
Grainhandlers
Crushingplants
Proteinprocessing
Soyfoodcompanies
Consumers
RetailersFood
companies
Soy protein value chain in Canada
Variety development
Grainhandlers
Crushingplants
Soyfoodcompanies
Consumers
RetailersFood
companies
How the gap has been filled
U.S.Crushers
Soyfoodcompanies
Consumers
RetailersFood
companies
U.S.protein
processing
Why has this happened?
Hexane Soy flour$0.28/lb
Non-hexane Soy flour$0.35/lb
Existing soy protein
suppliers
Companies with capacity
• Hayhoe Mills• Jackson Seeds• NewlyWeds
Lots of other companies considering development of capacity.
Need to be able to identify clients.
Summary
• Soyflour use in the bakery industry is growing
• Value-added opportunities in Canada are being missed.
• Incorporation of these opportunities will leverage wheat product sales.
• We need to creatively build a value chain to capture these opportunities.
Objectives for today
• Obtain feedback on market issues• Create linkages• Determine if perceived
opportunities are worthwhile• Identify constraints to removing
them