Introduction
Investing in a soybean processing plant is more than just a technical affair. It is a strategic and financial decision that depends on not only soybean processing machinery but also the market in which you operate, industry standards, your quality control protocols, avenues for value addition, and more.
In this two-part blog post, we’re going to explore everything you need to consider before you set up a soybean oil extraction plant. Your EPCC partner will take care of your soybean processing machinery; you need to think about which markets you want to sell in, how you can improve meal quality, compliance with industry standards, opportunities to generate additional revenue through value-added products and beyond. These are, after all, the factors that transform a high-quality and efficient soybean processing plant into a successful, sustainable business.
If you want to understand the soybean processing and soybean oil extraction processes, you can refer to our previous posts that cover these topics. For now, let’s dive into the market your soybean processing plant is stepping into.
The market for soybean and its products
Soybean oil, one of the main products of the soybean processing industry, is a crucial commodity in the global market. The versatility, nutrition, and affordability offered by this product have made it a popular choice in a world of increasing consumer awareness, plant-based diets, and prioritization of sustainable food production.
But soybean oil is only one part of the picture. Generally meant for domestic consumption, soyabean oil comprises only about 20% of the soyabean seed. The de-oiled cake, or the soyabean meal, forms the other 80% of the seed and is a major product derived after oil extraction. So, setting up a successful soybean processing plant means also learning how to process and market the meal.
Broadly, there are three types of soyabean meal. Commercial grade soya DOC (de-oiled cake) is a common soya product consumed domestically and internationally as animal and poultry feed. Compared to the other types of soy meal we're going to talk about, commercial grade DOC plants have a lower CAPEX.
Then comes Hypro soya mean. With a higher protein content than commercial grade DOC, this value-added product requires a slightly higher CAPEX. This is partly because the preparatory section for a plant producing Hypro soya meal has more equipment, specifically for processes like partial dehulling. Hypro soya is also meant for animal and poultry feed.
Finally, we have white flakes. White flakes represent a next-level product upgradation of soyabean meal. It has higher protein content, lower fiber content, and moderate PDI (Protein Dispersibility Index). White flakes are used to make products for human consumption, like soya chunks. The CAPEX for a white flakes plant is significantly higher than it is for the two lower grades of processed soyabean meal. This is because the preparatory section requires sophisticated equipment with complete automation to eliminate hulls, fibers, and other unwanted components. Moreover, the Desolventising section must be fitted with advanced systems to ensure that the meal retains its maximum nutritional value.
The increasing number of soybean processing plants is being driven by advancements in not just technology but also agricultural practices. This is simply a matter of supply catching up to meet demand: as demand has grown over the years, so have the needs for efficient soybean processing plants and technologies.
Catering to the health-conscious consumer
Investing in a soybean processing plant or a soybean oil extraction plant is a sound business decision, in large part, due to the growth in the number of health-conscious consumers.
Soybean oil is chock-full of nutrients like healthy fats, vitamin E, and omega-3. Given the presence of omega-3 and omega-6 in soybean oil, it is considered to possibly reduce inflammation, which is associated with the development of diseases like cancer, diabetes, and heart disease.
With its high content of vitamin E, which is an anti-inflammatory, soybean oil is also a potential support for skin health, protecting us against skin damage and conditions like acne.
Soybean oil is also a rich source of polyunsaturated fatty acids like linoleic acid and alpha-linoleic acid, which have been linked to heart health, weight management, and diabetes management. Interestingly, among all seed oils, soybean oil has one of the highest amounts of polyunsaturated fats.
As you may have guessed, these factors have contributed to (and will continue to contribute to) the growth of the global soybean market. If you’re considering stepping into the oils and oilseeds markets, there’s no time like the present to set the ball rolling.
Factors affecting soybean oil and meal quality
As you prepare to invest in a soybean processing plant, there are several factors that you should pay special attention to as they can impact, for better or for worse, the quality of your final products.
Raw material quality. While assessing your options for soybean processing machinery and how they will impact your soybean processing plant cost are important, it is equally important to plan where and from whom you will source your raw materials. The quality of soybeans, including their variety, ripeness and storage conditions, can and will influence the quality of the soybean oil and meal you produce.
Processing methods. The techniques used to prepare, extract, and refine your soybean oil and its byproducts like soyabean meal can influence product quality. Ensure that you choose your EPCC partners wisely.
Storage conditions. In a similar vein as above, make sure that storage facilities that you or your logistics partners use should have cool, dark conditions to prevent the soybean oil from going rancid or getting oxidised. Consistent exposure to heat and light is the surest route to rapid deterioration of your product. Conversely, proper transportation and handling practices can protect your soybean oil from damage and contamination. When it comes to soyabean meal, too, you should follow appropriate storage and handling protocols depending on the type of meal you are producing.
Industry standards for soybean processing plants
Soybean oil and meal are subject to different regional and international standards to ensure the safety and quality of the product for human and/or animal consumption. Typically, these standards are defined in terms of physical properties (like colour, odour, taste, and texture), chemical composition (like peroxide value, free fatty acid content, and fatty acid profile), the presence of contaminants (like heavy metals, pesticide residues, and alkatoxins), and the presence of pathogens.
Depending on where in the world your soybean oil extraction plant or soybean processing plant is located and where you sell your products, you should be familiar with the appropriate regulations. The Codex Alimentarius Standard for Edible Vegetable Oils sets global standards for edible oils. The European Union Regulation No. 178/2002 governs general food law within the EU. Every country may have its own national standards for food production in general and soybean oil in particular. In India, for instance, the FSSAI governs food business operations.
Understanding and adhering to these standards is a foundational aspect of successfully running a soybean processing plant. For your investment to give you good returns in the long term, you should ensure that you never compromise on compliance with industry standards and regulations.
Quality control in soybean oil and meal production
To safeguard your investment in your soybean processing plant, you absolutely must have robust quality control protocols in place.
All through the production process, from harvest to refining, you must carry out rigorous testing to guarantee that the oil and meal meet safety and quality standards as prescribed by applicable regulations. You should regularly test for contaminants, the correct chemical balance, and the absence of unwanted elements or residues.
Regular and timely monitoring and testing are indispensable if you want to identify and remedy any quality issues before it’s too late. When you invest in quality control, it shows in your product quality. It shows in the consistency of your product. And it earns and maintains consumer trust.
As the global landscape – in terms of business, technology, and sustainability – evolves, so must your business if you want to stay relevant, profitable, and successful in the long run. In this part of the blog post, we’ve covered the basics of what you need to know before investing in a soybean processing plant. In the next part, we’re going to go over how you can develop a forward-looking vision that ensures your business’s relevance and future-readiness in our dynamic world. Stay tuned.
A quarter of the way through the 21st century, you cannot make any investment or business decision without considering its ESG implications. With the rapid pace at which technology is evolving, you also need to keep in mind technological innovations that can give you an upper hand and keep you future-ready in dynamic circumstances.
While in part one of this blog, we discussed the market, regulatory concerns, quality control, and raw material sourcing, part two is more focused on strategic concerns that will help you make a solid investment. Think sustainability, value addition, and adaptability to new technologies. Let’s explore each of these in more detail.
Sustainability in soybean processing plants
Like with the cultivation and processing of any plant, soybean, too, presents some concerns when it comes to sustainability, particularly how it affects biodiversity and land use.
In some parts of the world, for instance, parts of South America, soy cultivation has expanded rapidly, giving rise to concerns about deforestation. Meanwhile, intensive farming practices to meet global demand may lead to overreliance on chemical pesticides; this can hurt local ecosystems if there aren’t adequate checks in place.
As an investor in a soybean processing plant, there are ways you can ensure that the raw materials you source are cultivated responsibly. After all, you want to be part of the solution, not part of the problem. Globally, there are efforts underway to promote sustainable farming practices. As a soybean oil or meal manufacturer, you can do your part by sourcing raw materials from producers certified by relevant sustainability standards or by supporting farmers practising crop rotation, reduced pesticide use, and other ecologically-friendly practices.
As a soybean oil manufacturer, you also have a critical role to play in the technologies you deploy and the soybean processing machinery you invest in. You can work with your EPCC partner to ensure that your soybean processing machinery has a relatively low carbon footprint through high energy efficiency and streamlined transportation practices.
You can also make a massive difference to the planet and your bottom line by taking a step into a circular economy through by-product utilisation. At Kumar, we’re big on value addition, for profit and for the planet. So let’s take a deeper look at what we mean here.
Producing value-added products at your soybean processing plant
Soyabean oil is only one of the many, many useful products that you can get from the soy crop. What a waste it would be to just throw all these other parts of the plant, right?
Soybean oil production, if planned well, can generate useful by-products, reduce waste, and promote sustainability.
Soybean meal. When oil is extracted from soybeans, the solid component left behind is called soybean meal. Soybean meal is a good source of protein, providing essential amino acids. It contains fibre, great for digestive health. And it also has various vitamins, minerals, and antioxidants like isoflavones. This nutrient-rich meal is a common ingredient in animal feed for cattle, pigs, sheep, poultry, and even fish and shrimp.
If you sell your soybean meal to an animal feed mill, not only are you increasing your revenue by supplying useful raw materials, but you are also helping the planet by reducing animal farmers’ reliance on other protein sources.
Soybean hulls. Soybean hulls are the outer covering of the soybean. The hulls are separated from the soybean prior to oil extraction. Like the meal, soybean hulls are rich in fibre, vitamins, minerals, and antioxidants. They have applications in animal feed production, as a fermentation substrate, in composting, and in industrial applications like insulation and paper-making.
Technological advancements that can be deployed within and beyond your soybean processing plant
There’s no time like the present to invest in a soybean processing plant because you can enjoy the benefits of the significant technological advancements that have taken place in recent years. These advancements have resulted in greater efficiency, improved product quality, and better sustainability.
For starters, advances in extraction technology have resulted in soybean oil extraction plants giving higher yields while consuming less energy. Genetically-modified soybean varieties can lend soybean crops beneficial properties, like altered fatty acid profiles, higher levels of omega-3, etc. Meanwhile, nanotechnology is being used to develop new applications for soybean oil, for instance, in biofuels, adhesives, coatings, and more. Technological applications such as these have helped make soybean processing a whole lot more sustainable, efficient, and versatile.
Investing in a future-ready soybean processing plant
New advancements are shaping (and will continue to shape) how we produce food products. These advances are largely catered to improving the sustainability of these products without significantly spiking their costs, as well as maintaining the quality and efficiency we enjoy today.
Investing in a future-ready soybean processing plant means staying abreast of the latest in the industry and deciding when it’s the right time to incorporate innovations in your venture. In the world of biotechnology, genetic modifications may lead to the development of higher-yielding soybean strains or strains resistant to certain diseases or pests. Research and innovation may also develop alternative extraction methods that minimise environmental impact, optimise yield further, and enhance process efficiency.
At the end of the day, your soybean processing plant is only as future-ready as your EPCC partners and soybean processing machinery are! So make sure you invest in the right ones.
At Kumar, we’ve been in this industry for over 80 years. And we know more than a thing or two about setting up sustainable and operationally profitable plants. If you have a project in mind, reach out today for a chat with our team of experts.
