VOL. 7, No. 3, October, 2000

In This Issue

• The Future Direction of Research at the NSRL
• Enhancing Soybean Productivity
• Evaluating The Changing Commodity Market Channel
• Expanding Feed Utilization

• Creating New Food Uses

The Future Direction of Research at the NSRL

From its inception, the National Soybean Research Laboratory (NSRL) has strived to facilitate research on a wide range of topics, from the genetics of the soybean to the needs of consumers. Many of those specific research investigations and their accomplishments already have been highlighted in the Bulletin. In this issue, however, we will focus on the broader dimensions of the research programs and identify future directions for those efforts.

The accompanying figure provides a visual depiction of the overall organizational structure that frames our current and future activities. The vision of the industry leaders who worked to establish the NSRL focused on the idea that the research here would directly respond to the needs and problems of the marketplace. The left-hand portion of the figure identifies several components of the soybean value chain. On the right side, the four areas of research emphasis at the NSRL are clearly "matched" to the value chain. Those four areas are:

        -- Enhancing soy productivity

        -- Evaluating the changing commodity market channel

        -- Expanding feed utilization

        -- Creating food uses

Because the soybean crop is so important to both U.S. and world agriculture, sustained efforts to improve productivity will continue as a cornerstone of the NSRL program. To further enhance that effort, our production research activities are being organized into formal programs. Despite those changes, the creativity and dedication of the individual researcher, whether faculty, student, or staff, will continue to be the key for successful scholarship.

Over the last decade, the industry also has seen many changes in the commodity market channel. Decision makers are constantly bombarded with ever cheaper and more powerful tools for managing information. Although market channels are usually thought of in terms of the flow of physical commodities and cash, the transmission and use of information has become another essential aspect of their operations.

The soy commodity market channel, however, came into existence at a time when information was scarce, analysis was difficult, and communication was expensive. All three of those conditions have undergone a dramatic transformation, which will undoubtedly impact the way in which soybeans are marketed in the future. Starting with the creation of the successful StratSoy site on the Internet, the NSRL has helped lead the soybean community in understanding the implications of this new technology on soybean markets.

A recent project, known as the Varietal Improvement Program for Soybeans (VIPS), is aimed at investigating the potential diversity of yield and quality attributes in soybean varieties. The VIPS program will be expanded this year to include work on the disease characteristics of varieties. Other investigations are underway to examine how forces such as biotechnology and consumer attitudes about specialty products can drive changes in the marketplace.

A further effort is attempting to map the dynamics of marketplace change. The goal is to produce tools that can assist decision makers in anticipating and exploiting the possible impact of changes to the market channel.

The diversity of the soybean presents a wide-ranging set of possible food and non-food applications. Its use as a source of protein for animal feed, especially for swine and poultry, however, remains the major source of revenues earned each year in the soybean industry. Although soybean meal occupies a dominant position in the animal feed industry, continual improvement is the only means by which that position can be maintained. The Soy / Swine Nutrition Program, which was initiated two years ago, continues as an important effort aimed at conducting the research necessary to determine the performance of soybean meal in animal production.

Although the soybean serves as an important source of protein in animal feed, the industry is becoming increasingly aware of its potential as a source of edible protein for direct human consumption. The success of the Functional Food for Health Program has already contributed significantly to the expanding interest in soybean consumption as a means to enhance health in the United States and other developed nations.

Soy protein also offers considerable potential in the world’s developing nations, where diets that are deficient in protein restrict millions of people from reaching their full potential. In collaboration with soybean producer organizations and other industry sources, the NSRL is undertaking significant efforts to identify means to more effectively employ soybeans as a source of vegetable protein in developing nations. In each of these cases, the programs underway at the NSRL remain firmly based in the guiding principal that research should directly respond to the needs and problems of the marketplace.

One area of special emphasis at the NSRL is research aimed at enhancing productivity in soybean fields. A new Germplasm Initiative will place special emphasis on enhancing the germplasm resources available in the USDA and other soybean collections housed at the University of Illinois. In the area of weed science, other programs are aimed at developing new management systems for the priority weeds that affect Illinois producers.

A major focus of the programs on insects and diseases is research aimed at identifying and integrating new sources of resistance to both pathogens and insect pests. The goal to is develop effective strategies for managing disease and insect problems and implementing outreach and information management systems for producers.

As part of this effort to ensure the future of soybean productivity, scientists are working to identify and develop responses to emerging diseases in Illinois. Some soybean diseases, such as soybean cyst nematode, sudden death syndrome, and white mold, are found in many Illinois fields every year. Several other soybean diseases, such as rust and red leaf blotch, are considered exotic and never occur in Illinois.

Nevertheless, there are a number of other diseases that fall somewhere between the common and the exotic diseases which have the potential to emerge as important problems for growers in the state. Two diseases in this group that have recently attracted special attention from plant pathologists and entomologist affiliated with the NSRL program are green stem and stem canker.

"Green stem appears to be a stress-related disease of soybeans that lowers seed quality and yields," says Glen Hartman, plant pathologist with the USDA’s Agricultural Research Service at the University of Illinois "The presence of significant numbers of green-stem affected plants in fields also can delay harvest by clogging combines or forcing growers to delay harvest until the affected plants mature."

Recent data from Iowa State University and the University of Wisconsin suggest that plant viruses are the most common biological cause of green stem symptoms.

"In 1998 and 1999, the profitability for some growers was directly reduced by lower yields and poor seed quality resulting from green stem disease," Hartman says. "One grower even reported a yield of only four bushels per acre in a field with green stem plants."

One virus, bean pod mottle, is transmitted to soybeans by beetles. Although the viruses have been documented in soybean fields in Arkansas, Kentucky and North Carolina, the distribution and the extent of occurrence in Illinois is not known.

"The research pathology group at the NSRL and entomologists from the Illinois Natural History Survey recently received funding from the Illinois Soybean Checkoff Board to conduct research on this emerging problem," Hartman says. "We have already germinated seeds from several fields that had plants with a significant amount of green stem during the 1999 growing season and have started sampling seedlings to record seed transmission of the viruses."

He indicates that the researchers have not yet documented any virus transmission from seeds obtained from green stem plants. They have, however, detected viruses from leaves that were collected from green stem plants, indicating that the virus was in those plants. They also have found the virus associated with field-collected corn rootworm beetles.

"During the past growing season, we collected soybean leaf samples in a preliminary survey in areas of Illinois where green stem or the virus were reported in 1999," Hartman says. "Information gained from these analyses should help define some of the range of viruses present in Illinois soybean fields. We also conduct a statewide survey for incidence of virus in fields."

Using seed samples obtained from the USDA Statistical Service at the end of the season, they also will analyze seedborne occurrences of the viruses.

"In addition, we are collecting virus strains and typing them for comparison to other known stains," Hartman says. "As part of this project, we will collect insect pests, including bean leaf beetles, northern and western corn rootworm beetles, and soybean thrips from in or near fields with green stem to determine whether they can transmit soybean viruses."

In addition, the NSRL research team is keeping a close eye on two similar, but distinct, diseases of soybean called northern (DPC) and southern (DPM) stem canker, which are caused by related fungi. These diseases are capable of killing full-grown plants from mid-season to maturity.

He points out that researchers do not presently know if the type in Illinois is the northern (DPC) or the southern variety (DPM). Hartman further notes that seed infection has been proposed as a means of spreading the fungi that cause the disease, although the role of seed infection in either the northern or southern stem canker is unclear.

"With assistance from the Illinois Soybean Checkoff Board, we plan to characterize the isolates that caused stem canker in 1999," Hartman says. "This information is essential for developing control recommendations and for future evaluations of resistance. Although the exact course of these emerging diseases remains uncertain, the support from growers through the Checkoff will allow us to be prepared in case there are major outbreaks in the future."

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From its inception, the NSRL has taken a leading role in assisting the soybean industry to use emerging technologies in ways that will position it at the forefront of the new information age. One of the hallmarks of this effort has been the Strategic Soybean System (StratSoy), which was established in 1994. Through StratSoy, the soybean community now has access to an innovative Web-based system that provides for direct communications and exchanges of information among soybean offices, industry, producers, and the public.

"With this system, we have created the most comprehensive source of soybean information available on the Web," says project coordinator Sarahelen Thompson, professor of agricultural marketing in the U of I’s Department of Agricultural and Consumer Economics. "We currently are receiving more than 500,000 visits a month to the website. Hundreds of people from all over the world subscribe to various ‘soybean answer’ services and our buy-sell page."

The StratSoy system also provides the first user-friendly means to exchange information about new developments that are impacting the soybean market channel.

"Having access to this system has contributed to the expansion of market demand for soybeans, both within the U.S. and internationally," Thompson says. "Through the ‘Soy and Human Health’ and "Soy utilization’ areas, StratSoy has increased awareness of the health and nutritional effects of soy. The Buy-Sell Page has created a unique forum to match demand with supply and provides an opportunity for increased sales of U.S. soybeans."

The NSRL’s commitment to cutting-edge use of new information technologies was never more evident than at Global Soy Forum ‘99 in Chicago. All registrations and scheduling for the 1,800 participants from 65 different countries were handled electronically. Even the abstracts and proceedings of the sessions were produced and distributed on-line.

The latest developments in information technology specific to the soybean industry also were prominently highlighted at the Knowledge Management Center during the four-day Forum. The center featured special exhibits, computer kiosks, interactive demonstrations, and hands-on experimentation with many of these new technologies. Leadership for this effort at Global Soy Forum was provided by Pradeep Khanna, program coordinator at the NSRL.

The NSRL also has been actively involved in Electronic Information Systems for Food and Agriculture. With support from the Illinois Council on Food and Agricultural Research (C-FAR), this project is aimed at discovering how advanced information technologies can be most effectively employed by agricultural decision makers to enhance access to global markets and improve market coordination between producers and customers.

As one part of this effort, the PorkLift information system was developed to explore the viability of the Internet as an information resource for the pork industry. This prototype project is designed to provide useful information to the pork industry by linking users to national and international resources, University of Illinois swine experts, and national organizations. Another project, known as Soya Notices/Mexican Soy News, was established as a bilingual information resource for U.S. soy merchandisers and Mexican soy buyers.

The new Varietal Information Program for Soybeans (VIPS) project represents a further effort to help soybean producers prepare for the transition from commodity marketing to marketing of soybeans based on end-use attributes. Funding for this project was provided by the Illinois Soybean Checkoff Board.

"This change provides an opportunity for growers to capture greater value from the beans they produce," says Thompson, who is co-coordinator of the project. "To do this they must have access to basic information about their capacity to produce and deliver seed components of known value to processors. At the same time, processors planning to improve product quality or establish component-based markets must know what seed components growers can supply."

The project database contains information on more than 1,700 different soybean varieties grown in Illinois and Iowa. In most cases, more than 30 different compositional attributes are listed for each variety.

"The database enables growers to determine and compare selected attributes of individual varieties according to custom-selected criteria," Thompson says. "Users can register on-line to access the information as they need it. The database also will be used to identify genotypes and environmental sources of variation for seed components."

In another new project, a pilot electronic information and certification system is being developed for value-added soybeans that will identify the entire history of production, storage handling, and transportation activities from the time of seed planting to the time of delivery to a processor or export terminal.

"The need for this detailed information arises from the changes in the marketplace in which customers and consumers reward the value-enhancing activities of suppliers," says project director Karen Bender, senior research specialist in agricultural marketing. "In turn, this will increase value and returns available to participants in the market channel."

She further notes that the ability to deliver the non-GMO soybeans demanded by some food companies is also dependent on the ability to develop segregated or identify-preserved market channels.

"These issues will be even more important in the near future if commercialization takes place for the ‘second generation’ of GMO crops produced for pharmaceutical, industrial, and other specific uses," Bender says. "With these crops there will be even more need for stringent quality control and full documentation of production, handling, and processing practices."

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Although soybean meal occupies a dominant position in the animal feed industry, the soy meal used today differs very little from that manufactured 50 years ago. The result is an increasing challenge from other oilseed meals to the dominance of soybean meal as protein source in animal feed, especially in swine diets.

To meet this challenge, the NSRL and the Animal Sciences Department at the U of I have helped launch a comprehensive research program for evaluating and improving the fundamental nature of the soybean meal used in swine diets. Primary support for the Soy/Swine Nutrition Research Program is being provided by the Illinois Soybean Checkoff Board. Administrative leadership for the project is provided by Marilyn Nash from the NSRL.

"The goal of this project is to insure that soybean meal from the U.S. will remain the favored protein source in swine feed formulas, both domestically and globally," says Bob Easter, head of the Animal Sciences Department at the U of I. "An improved understanding of the soybean’s unique nutritional qualities is essential to counter the increasing competition from other oilseed and amino acid supplements in swine diets. Through this program, we are exploring the ways that soybean meal can become a higher quality feed component that cannot be duplicated by any other protein source."

Easter emphasizes that the project is being carried out in collaboration with researchers from leading universities across the country.

"The project represents an attempt to bring together the best talent available in swine nutrition," Easter says. "We have diligently worked to include top-notch scientists from a number of universities as partners in each of the major areas of this study."

The program is designed to build on existing knowledge through five interrelated lines of investigation, which can provide guidance for work in other research areas and help establish future priorities.

"By identifying the various ways that products from U.S. soybeans can produce pork with optimum qualities for varying global regions, we may be able to actually increase their use," Easter says. "This could happen based on the research from any one of our studies. The hoped-for result is to provide U.S. soybean meal with a competitive advantage in the global marketplace."

One major area of this research has focused on the factors that cause variability and limit utilization of protein and minerals in soybean meal.

"The work to date indicates that variation in amino acid digestibility exists in soybean meal from different regions and processors," Easter says. "We also know that digestibility in soybean meal and soy protein concentrates is not 100 percent. As a result, opportunities certainly exist to increase digestibility and utilization of soy products by swine. We also have found considerable variation in composition among samples of soybeans from Brazil, China, and the U.S."

Easter notes that crude protein content was more variable in the U.S. samples than those from other sources. The U.S. soybeans, however, had higher amino acid concentrations and higher protein solubility. The research further has found differences in soybean meal produced by different processing techniques.

"In other research, scientists found that increasing the doses of isoflavones and other biologically active molecules of soybeans in feed can have an impact on body growth and muscle growth in swine," Easter says. "This result is particularly encouraging because it could create a reason other than nutritional value to include soybean meal in swine formulations."

Work is also underway to examine the effects of feeding soybean meal and other proteins on the taste and quality characteristics of pork. In the final phase of the projects, researchers are developing an economic model for evaluating scenarios for soybean producers under varying market conditions.

Easter points out that all participants in the project are encouraged to share their results with the feed industry at large and in public forums, such as Global Soy Form ‘99.

"The results of this research already have demonstrated the superiority of U.S. soy products in terms of component quality, digestibility of nutrients, and contributions to efficient gains in swine growth and meat quality," Easter says. "Although there is much work remaining to be done, we have taken a strong step in identifying several existing and potential characteristics that will continue to make soy meal the protein source of choice for swine diets far into the future."

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Creating New Food Uses

Although soy meal already serves as the most important source of protein in animal feed, the market for soybeans as a source of edible protein for direct human consumption remains largely untapped. Many of the greatest opportunities for expanding the use of soy protein in human food undoubtedly will come in the world’s developing nations, where diets that are deficient in protein today restrict millions of people from reaching their full potential.

In a cooperative effort with soybean producers and industry organizations, the NSRL is undertaking several projects aimed at better employing soybeans as a source of vegetable protein in developing nations. In one major project, researchers are working with specialists at the National Center for Supercomputer Applications at the University of Illinois to develop a model known as the Protein Consumption Dynamics (PCD) System which can provide soybean industry leaders with a better understanding of future protein needs in the world marketplace.

"This model directly relates population and income growth to regional protein needs," says Donna Fisher, graduate research associate at the NSRL. "It tracks estimated annual consumption of six different commodities that serve as sources of protein in eight major regions around the world. The model is designed so that alternative scenarios of the future can be examined using population and income projections from the World Bank and the United Nations."

The project, which has been funded by the Illinois Soybean Checkoff Board, utilizes a system dynamics approach that is specifically designed to analyze complex situations which are subject to rapid change. Fisher notes that such an approach is especially useful for looking at future protein needs because it is not limited to following only the most likely set of parameters.

"A key reason for developing this modeling capability is to allow us to explore a full range of future scenarios," she says. "We can then compare the effects of different assumptions on the desire and need for protein across a whole range of possibilities."

Fisher points out that the model for this system is based upon historic relationships between food consumption and malnutrition and per-capita income by region. The effects of regional cultures and dietary preferences are reflected in specific econocentric relationships between income growth and food consumption in each region.

"The effects of per-capita income and cultural influences are combined to develop estimates of consumption and malnutrition in all eight regions," Fisher says. "Those per-capita estimates are then multiplied by the appropriate population estimate to compute total demand in the marketplace."

Experience with the system to date indicates that there is a gap between some of the key skills and capabilities in the industry and those who will need them in the future.

"Marketing and policy expertise today is heavily focused on the needs of customers in the developed countries," Fisher says. "However, most of the significant volume growth for soy protein will probably take place outside those countries."

She points out that, although the demand for animal protein also is likely to grow substantially in China, East Asia, and South Asia, the ability to produce and deliver the necessary product may not develop because of ecological and policy reasons. As a result, such regions may ultimately offer more potential for increased use of vegetable protein sources.

The model further indicates that the projected growth in demand for protein is relatively robust in relationship with population growth, but is even more sensitive to income growth.

"Even with optimistic income growth projections, malnutrition in sub-Sahara Africa, north Africa, and west Asia persists at frightening levels," Fisher says. "With lower income growth, malnutrition is projected to increase in other parts of the world. For both moral and business reasons, the strategies that heighten the role of the soybean industry in humanitarian responses deserve careful consideration."

Adding to the impact of the system are the recent advances in computing power. The capability to use this system in conjunction with a powerful visualization tool is now becoming available on workstations and personal computers, where it was once only possible on a supercomputer.

The initial public demonstration of the visual capabilities of this new system took place at Global Soy Forum 99, where it played a key part in the opening keynote session and provided a common reference point for future protein demand during the four-day event.

"Since then these tools have been used numerous times in public presentations and in small-group strategic discussion meetings," Fisher says. " Several key insights from this study, in fact, are already being used to form the basis for further strategic discussions within in the soybean industry."