Organic soybeans remain a hot topic in early 2022 prompting interest in alternatives
Published: February 1, 2022
Category: Market News
With continually rising organic soybean prices remaining a key point of market concern, the question for many becomes which alternative source of organic protein makes the most sense in the current market? This month we explore supply, pricing, and potential substitutes for organic proteins in the Mercaris Monthly Market Update.
Soybeans remain a primary source of protein for livestock, but with the rising cost of organic soybeans—as well as the possibility of supply decreasing with the restriction of imports – some may be looking for new sources for organic proteins. Two possible answers? Organic sunflower and organic canola.
“Domestically, the availability of organic sunflower and canola meal is likely to grow this year. Over the 2021/2022 marketing year harvest, Mercaris estimates U.S. organic sunflower production increased 28 percent year-over-year,” says Henry Wilson, economist with Mercaris. “Although smaller, relative to organic sunflower, U.S. organic canola production is estimated to have grown even more, with organic canola up 42 percent year-over-year.”
While U.S. production remains a primary source for organic sunflower and canola, there is also a growing number of imports into the country. As a result, Mercaris’ organic Maritime Imports Report has been expanded to capture these growing markets and provide even more information to Mercaris subscribers. Overall, this extra supply of organic canola and sunflower adds extra viability for organic producers searching for organic soybean substitutes in protein feeds.
So, what is Mercaris’ suggested takeaway moving further into 2022 involving organic protein options?
“While organic soybeans will remain a large part of many feed rations, the changing landscape of the organic soybean market may lead some to look for changes,” says Wilson. “As these decisions are made, it will be important to not only continue watching the organic soybean market, but to keep a close watch on the market of substitutes such as organic sunflower and canola.”
To find more details and information on other organic and non-GMO markets, visit www.mercaris.com.
Organic & Non-GMO Insights February 2022