2015 U.S Soy Global Trade Exchange “Why I buy, What I buy, Where I Buy ” 10 th September 2015 Dr. Neoh Soon Bin Managing Director, Soon Soon Group Malaysia

Asia’s Soybean Imports in Marketing Year 2013/14 and 2014/15 ( Mn Mt) Source from oil world 2014/ /142014/15 China Japan South Korea Taiwan Thailand Vietnam Indonesia Malaysia Bangladesh Total

Where do Asia buy Soybean from in 2014 ? Source from Oil world 2014/15 Importing Countries Origin of Soybean imported by Asia Countries(1000 mt) USBrazilArgentinaChina Others Indonesia1, Japan1, Malaysia Taiwan1, Thailand502.71, Vietnam S.Korea Bangladesh China PRC30, , , , Total37, , , ,550.40

What are the key Quality parameters for Crush Soybeans? How much value is attached to these key quality parameters ?

Key Quality Parameters in Crush Soybeans Moisture Protein Oil content FFA in the Oil Protein Dispersion Index ( PDI )

Value of Protein and moisture in soybean 1% protein or moisture is worth 1% of the price Current price in Asia =USD 400/MT

Value of Oil in Soybean RBD Soybean oil in Asia, price = USD 800/MT Dehulled Soybean Meal in Asia, price = USD400/MT Difference = USD 400/MT 1% oil = 1% x USD 400 = USD4.00/MT

Erosion of Value of FFA in Soybean Oil and Soybean FFA of Crude Soy Oil % oil Refining loss per MT of crude Soy Oil oil loss ( converted to Acid oil) per MT crude Soy Oil Loss in value per MT of crude Soy Oil during refining Loss in value per MT of Soybean assuming an 18% oil yield 0.50%0.75%7.5kgUSD 2.25 USD %1.50%15.0kgUSD 4.50 USD %2.25%22.5kgUSD 6.75 USD %3.00%30.0kgUSD 9.00 USD %4.50%45.0kgUSD USD 2.43 Refining factor = 1.5% RBD Soybean Oil = USD800/mt Acid Oil = USD 500/mt Difference: USD 0.3/kg

Quality of US, Argentine & Brazilian soybean imported by Soon Soon Oilmills in the year 2014 & 2015 Source from Soon Soon Laboratory. OriginYearMoisture (%)Oil (%)Protein (%)FFA (%)PDI (%) AvgMinMaxAvgMinMaxAvgMinMaxAvgMinMaxAvgMinMax US Argentin e Brazilian

Relative Values of Soybean imported by Soon Soon in Year 2014 USABrazil Diff in Value (USD/MT)Argentine Diff in Value (USD/MT) Moisture Protein Oil FFA Total difference in value

Relative Values of Soybeans imported by Soon Soon in Year 2015 USABrazil Diff in Value (USD/MT)Argentine Diff in Value (USD/MT) Moisture Protein Oil FFA Total difference in value

Discussion on relative values of Soybean The relative value of crush soybean from USA, Brazil and Argentina will vary from year to year In general US soybean have a better physical appearance, higher PDI and lower FFA in their oil However protein levels in US soybean fluctuate from region to region, and northern soybean have lower protein than those in the midwest and the south Brazilian soybean normally have higher protein levels but not so in In general their soybean have high levels of heat damage and higher FFA levels in their oils.

Q: What are the other quality parameters in Soybean that has value? A: Amino acids especially methionine and threonine

Value from higher Levels of Methionine and Threonine in Soybean Amount od Dig. AA in 1mt of SBM Extra 50% Extra 100% Extra 150% Extra 200% MethionineKg/mt Value of extra Methionine for SBM, USD Value of extra Methionine for Soybean*, USD ThreonineKg/mt Value of extra Threonine for SBM, USD Value of extra Threonine for Soybean*, USD In 1mt of soybean meal, the amount of digestible methionine and threonine 6.7kg and 18.7 kg respectively. (Data adapted from NRC 1994) Price of crystalline AA per kg : methionine $5.93 and threonine $2.33 (prices as at Sept 15) *Conversion factor for value from soybean meal to soybeans X0.75

Comparison of Canadian and US Non GM IP Food Soybeans

Comparison of US White Hilum Food Grade Soybean with Canadian IP Soybeans Canadian IP soybean Varietal 1Varietal 2Varietal 3Varietal 4Varietal 5 OriginCanadianUSA Moisture.% Protein, % ( Dry basis) Oil, % ( as is) Seed coat appearance Dull yellowBright yellow Bright and lighter yellow Bright yellow Bright yellow Germination test Water uptake factor Soymilk yield, gram Tofu yield, gram The results showed “”Varietal 1”” gave higher tofu yield than Canadian IP Soybean and “”Varietal 2”” quality is also acceptable.

Discussion We contract farm most of our food soybeans in Canada. Recently we have also tested some non-gm soybean varieties from the USA and found that the quality of some varieties are comparable to our existing source from Canada. We have purchased some of these varieties to test market and found that their quality to be acceptable. However the Malaysian market preference is still for Canadian soybean because of historical reasons and the regular promotion efforts by the Canadians on food soybean.

Thank You!