Soyfutures Essay Example | Topics and Well Written Essays - 2500 words

Soyfutures - Essay Example ..12 Bibliography Chapter 1 Executive Summary The soya bean (or soybean in the US) is a legume grown mainly because of its edible bean which also has other multiple uses (Sidney & Smith 1972). A native crop of East Asia, the UN Food and Agricultural Organisation classifies it as an oilseed and not a pulse. Of the entire soya bean crop produced worldwide, 85 percent is processed into vegetable oil and soya bean meal. 60 pounds of soya bean bushel yields 11 and 47 pounds of crude soya bean oil and soya bean meal respectively when processed. The high protein content makes soya beans ideal in the manufacture of livestock feed, especially in the United States. Human consumption is mainly in the form of dairy and meat substitutes, edible oils, soya flour, and infant formula. The use of soya beans in the non-food industry has also been on the rise, most significantly in the energy sector. Through the process of transesterification, biodiesel fuel can be obtained from soya bean oil for use i n diesel engines (Drapcho, Nghiem & Walker 2008). The process simply removes glycerine from soya bean oil. Because soya biodiesel burns cleaner than petroleum based diesel oil, it is non toxic, environmentally friendly and renewable. Environmentally friendly solvents can also be produced from soya oil that remove oil from shorelines, streams and creeks without causing any harm to the environment, humans, animals and marine life. It is also used in the manufacture of industrial solvents, lubricants, paints and cleaners. In the building industry, soya bean extracts are used in the manufacture of building materials, known as biocomposites, replacing the traditionally used wood in furniture making and flooring (McCormick 2006). Another use of soya bean oil is the manufacture of crayons, which makes them safer for children because they are non toxic. Candles made from soya bean oil produce less smoke and burn longer. With the growing non-food use of soya beans, this report will identify and analyse international market opportunities as well as risks involved for Soyfutures in their bid to develop market for soya bean oil. The US remains the world’s highest producer of soya beans, as shown in the table below, provided by UN Food and Agricultural Organization. Country Million Metric Tons in 2011 United States 90.6 Brazil 68.5 Argentina 52.6 People's Republic of China 15.0 India 9.8 Paraguay 7.4 Canada 4.3 Uruguay 1.8 Ukraine 1.68 Bolivia 1.63 With an annual soya bean production of 500,000 metric tons that is mostly used locally, Nigeria can produce and export biodiesel to Latin America, Asia and Europe where there is extensive use of diesel engines in farm equipment, automobiles, trains, generators and marine machinery. Although the focus of Soyfutures was to venture into markets outside Africa, the research found that Africa