By Ray Hansen, content specialist, AgMRC, Iowa State University, hansenr@iastate.edu. 
 

Updated April 2008 by Diane Huntrods, AgMRC, Iowa State University.

Production

More soybeans are grown in the United States than anywhere else in the world. Farmers in more than 30 states grow soybeans, making them the second largest cash crop and the highest valued crop export. Soybeans were planted on 63.6 million acres in 2007, down from the 75.5 million acres in 2006. U.S. soybean farmers harvested 2.6 billion bushels of soybeans,19 percent below 2006's record production, and the yield was 41.2 bushels per acre, making 2007 production and yield figures the lowest in three years. The national average price paid to farmers in 2007, $10.40 per bushel, was dramatically higher than the average price paid for the 2006 crop, $6.43 per bushel. Not surprisingly, the value of U.S. soybean production in 2007, $26.8 billion, was also dramatically higher than the 2006 value.

Worldwide, the United States produced the most soybean meal and soybean oil in 2006 but also consumed 80 percent of its meal and 92 percent of its oil domestically.

Processing
Soybean processing yields a number of products. There are industrial applications as well as food and feed applications. Although they can be eaten whole after being boiled or roasted, most soybeans are transformed into a variety of foods.

In the main form of processing, or "crushing" as it is often called, the soybeans are cleaned, cracked, dehulled and rolled into flakes. The crushing process ruptures the oil cells for efficient extraction. The "crude" oil is removed with solvents or screw presses, and after further processing, the refined soybean oil goes into such products as margarine, salad dressings and cooking oils.

Soybean oil is a natural source of vitamin E. The portion of vitamin E that is extracted as part of the refining process is recovered and marketed with other vitamin supplements. Lecithin, also extracted from soybean oil, is used for everything from pharmaceuticals to protective coatings. Because it is a natural emulsifier and lubricant, lecithin can be used, for instance, to keep the chocolate and cocoa butter in a candy bar from separating. 

After the oil is extracted, the flakes are toasted and ground to produce soybean meal, most of which is used as a high-protein component of animal feeds. However, some of it is also processed into products for human consumption. These products include soy flour, soy protein concentrate and soy protein isolate, which can be incorporated into breads, cereals and snacks. In recent years, isoflavones and other phytochemicals found in the soybean meal portion have been found to have documented health benefits. These are now being extracted and marketed as nutriceuticals in functional foods.

Sales and Trends

From 1992 to 2006, soyfood sales in the United States increased from $300 million to $3.9 billion over 14 years. This increase can be attributed to new soyfood categories being introduced, soyfoods being repositioned in the market place and new customers selecting soy for health and philosophical reasons.

Between 2005 and 2006, there was a 1.4 percent increase in total soyfood sales. This trend represents a general leveling off of sales, but some categories, like soymilk, have experienced greater growth and others, like energy bars, have not. Growing opportunities in foodservice should boost sales of meat alternatives, soymilk, tofu and other soyfoods. New soy food categories (for example, soy-based drinks, soy dairy-free frozen desserts and soy entrees) are emerging and steadily growing.

Since many consumers now incorporate soy into their diets and supermarkets have brought soyfoods to their shelves, new growth spurts for soy will come with more consumers making a commitment to following healthier diets and more consensus evidence linking soy with disease prevention. The wide variety of soyfoods will help consumers meet the 2005 Federal Dietary Guidelines that call for eating foods like soy that are high in fiber, omega 3 fatty acids, key vitamins and minerals, and lower in saturated fat, cholesterol and calories.

From 2000 to 2007, food manufacturers in the United States introduced over 2,700 new foods with soy as an ingredient, including 161 new products introduced in 2007 alone.

Trade
The United States is still the world's largest exporter of soybeans, exporting between 40 to 45 percent of its yearly soybean production. These exports are critical to the world market, accounting for 35 to 40 percent of the global trade in soybeans and soybean products. Since 2002, the United States has ranked third in both soybean meal and soybean oil exports, following Argentina and Brazil.

More than 1.2 billion bushels of U.S. soybeans and soybean products, valued at $8.9 billion, were exported during the 2006 marketing year. The top four export destinations for U.S. soybeans that year were (1) China, (2) Mexico, (3) Japan and (4) the European Union (EU). China alone accounted for more than 38 percent of total U.S. soybean exports with purchases totaling $2.5 billion. Mexico was the second largest market with purchases of $906 million. Other significant buyers included Japan with purchases of $863, and the European Union with purchases of $720 million. 

Soybean meal export numbers recorded a 5 percent increase over 2005. Mexico was the largest customer for U.S. soybean meal at $377 million. Canada was second with purchases of $283 million and the Philippines was third with purchases of $123 million. Japan, with purchases of $118 million, ranked fourth.

Mexico was also the largest customer for U.S. soybean oil with purchases of $60 million, and China was second with purchases of $59 million. Canada ranked third with purchases of $51 million.

Consumer Attitudes and Demand

In 2007, 85 percent of consumers viewed soy products as healthy, continuing the gradual increase in awareness of soy's benefits. One-third of consumers are aware of the Food and Drug Administration claim that consuming 25 grams of soy protein per day reduces the risk of coronary heart disease. The use of soy isoflavones to prevent osteoporosis is also growing rapidly in fortified foods and nutritional supplements.
 

According to the 2007 Consumer Attitudes Report, 33 percent of Americans consume soyfoods or soy beverages once a month or more. The report also states that over half of consumers have tried soyfoods or beverages in restaurants, and over one-third said they would order soy products in restaurants if they could find soy on the menu. 
 

What Does the Future Hold for the Demand of Soyfoods?

The market for soyfoods is predicted to increase. The traditional uses for soybean meal (high-protein animal feed) and soybean oil (edible and inedible uses) are expected to rise gradually, roughly at the pace of U.S. population growth. Soybeans for nontraditional uses such as renewable fuels and bioproducts are expected to increase more quickly.

Commercial development of a biodiesel industry has built up momentum and is becoming an important new source of demand for soybeans. Although biodiesel can be made from other oils and fats, soybean oil is the predominant raw material currently used in U.S. biodiesel production.

More industrial applications or food uses (such as soy isoflavones and soy beverages) for soybeans hold some promise for supporting prices through higher overall demand and/or premiums for value-enhanced characteristics.

Types of Soyfoods (listed alphabetically)
This section focuses on soybean foods. The soyfood descriptions below represent the most common soyfoods on the market today.
  
Green Vegetable Soybeans (Edamamé)
These large soybeans are harvested when the beans are still green and sweet tasting. After being boiled in slightly salted water for 15 to 20 minutes, they can be served as a snack or a main vegetable dish. The beans are high in protein and fiber and contain no cholesterol. Edamame is more often found in Asian and natural food stores, shelled or still in the pod.

Hydrolyzed Vegetable Protein (HVP)
HVP is a protein obtained from any vegetable, including soybeans. The protein is broken down into amino acids by a chemical process called acid hydrolysis. HVP is a flavor enhancer that can be used in soups, broths, sauces, gravies, flavoring and spice blends, canned and frozen vegetables, meats and poultry.

Infant Formulas, Soy-Based
Soy-based infant formulas are similar to other infant formulas except that a soy protein isolate powder is used as a base, instead of cow's milk. Carbohydrates and fats are added to achieve a fluid similar to breast milk.

Lecithin
Extracted from soybean oil, lecithin is used in food manufacturing as an emulsifier in products high in fats and oils. It also promotes stabilization, antioxidation, crystallization and spattering control. Powdered lecithins can be found in natural and health food stores.

Meat Alternatives (Meat Analogs)
Meat alternatives made from soybeans contain soy protein, or tofu, and other ingredients mixed together to simulate various kinds of meat. These meat alternatives are sold as frozen, canned or dried foods. Usually, they can be used the same way as the foods they replace. With so many different meat alternatives available to consumers, the nutritional value of these foods varies considerably. Generally, they are lower in fat but read the label to be certain. Meat alternatives made from soybeans are excellent sources of protein, iron and B vitamins.

Miso
Miso is a rich, salty condiment that characterizes the essence of Japanese cooking. The Japanese make miso soup and use it to flavor a variety of foods. Miso, a smooth paste, is made from soybeans and a grain such as rice, plus salt and a mold culture, and then aged in cedar vats for one to three years. Miso should be refrigerated. Use miso to flavor soups, sauces, dressings, marinades and pâtés.

Natto
Natto is made of fermented, cooked whole soybeans. Because the fermentation process breaks down the beans' complex proteins, natto is more easily digested than whole soybeans. It has a sticky, viscous coating with a cheesy texture. In Asian countries, natto traditionally is served as a topping for rice, in miso soups and is used with vegetables. Natto can be found in Asian and natural food stores.

Nondairy Soy Frozen Dessert
Nondairy frozen desserts are made from soymilk or soy yogurt. Soy ice cream is one of the most popular desserts made from soybeans and can be found in natural food stores.

Soy Cheese
Soy cheese is made from soymilk. Its creamy texture makes it an easy substitute for sour cream or cream cheese and can be found in variety of flavors in natural food stores. Products made with soy cheese include soy pizza.

Soy Fiber (Okara, Soy Bran, Soy Isolate Fiber)
There are three basic types of soy fiber: Okara, soy bran and soy isolate fiber. All of these products are high-quality, inexpensive sources of dietary fiber.

Okara is a pulp fiber by-product of soymilk. It has less protein than whole soybeans, but the protein remaining is of high quality. Okara tastes similar to coconut and can be baked or added as fiber to granola and cookies. Okara also has been made into sausage. Look for okara in natural food stores.

Soy bran is made from hulls (the outer covering of the soybean) that are removed during initial processing. The hulls contain a fibrous material that can be extracted and then refined for use as a food ingredient.

Soy isolate fiber, also known as structured protein fiber (SPF), is soy protein isolate in a fibrous form.

Soy Flour
Soy flour is made from roasted soybeans ground into a fine powder. Three kinds of soy flour are available: (1) Natural or full-fat, which contains the natural oils found in the soybean; (2) Defatted, which has the oils removed during processing; and (3) Lecithinated, which has had lecithin added to it. All soy flour gives a protein boost to recipes. However, defatted soy flour is an even more concentrated source of protein than full-fat soy flour. Although used mainly by the food industry, soy flour can be found in natural food stores and some supermarkets. Soy flour is gluten-free so yeast-raised breads made with soy flour are more dense in texture. Replace 1/4 to 1/3 of the wheat flour with soy flour in recipes for muffins, cakes, cookies, pancakes and quick breads.

Soy Grits
Soy grits are similar to soy flour except that the soybeans have been toasted and cracked into coarse pieces, rather than the fine powder of soy flour. Soy grits can be used as a substitute for flour in some recipes. High in protein, soy grits can be added to rice and other grains and cooked together.

Soy Protein Concentrate
Soy protein concentrate comes from defatted soy flakes. It contains about 70 percent protein, while retaining most of the bean's dietary fiber. Increasingly, food manufacturers recognize soy protein as a versatile food ingredient with functional and nutritional properties that greatly enhance the value of finished foods in every consumer category. Products containing soy protein can now be found in nearly every aisle of the supermarket, including baked good; breakfast cereals; pasta; meat, poultry and fish products; dairy-type products and milk blends.

Baked Goods
Soy protein is used in the manufacture of breads, cookies, crackers and other baked goods. Soy protein improves texture; holds moisture; creates cake richness; whitens bread; extends shelf life; reduces breakage and crumbling; enhances nutrition; improves manufacturing, handling and machine ability; and improves mouth feel and overall quality as perceived by the consumer.

Breakfast Cereals
Soy protein is used extensively as an ingredient in hot cereal mixes and breakfast bars to boost protein value and quantity.

Pasta
Pasta products can be fortified with soy protein to increase nutritional value. Soy-fortified pastas with a 15 to 17 percent protein content are used today by the U.S. National School Lunch Program.

Meat, Poultry and Fish Products
Processed and whole meat products can be improved by adding soy protein, which provides the product flexibility and cost stability consumers demand. Adding soy protein to meat and poultry products can enhance moisture holding, texture, binding and cohesion, product yield, juiciness, protein quality, appetizing color and appearance, longer shelf life, palatability and total nutrition.

Dairy-Type Products
A number of dairy analog products have been developed with soy protein, including imitation milk, imitation cheese, non-dairy frozen desserts, coffee whiteners, yogurt and others. Soy protein lowers cost, improves nutrition and reduces allergenic response.

Milk Blends

Many companies produce soy and milk protein blends for food manufacturing. The two are often combined to offer a protein content similar to milk. The different blends are used as a complete or partial replacement for non-fat dry milk in baked goods, sauces, meat products and various fabricated foods. 

Soy Protein Isolates (Isolated Soy Protein)
When protein is removed from defatted flakes, the result is soy protein isolates, the most highly refined soy protein. Containing 92 percent protein, soy protein isolates possess the greatest amount of protein of all soy products. They are a highly digestible source of amino acids.

Beverages and Toppings
Soy isolates are used in coffee whiteners, liquid whipped toppings and pre-whipped toppings. They also are used in sour cream dressings to emulsify fat, control viscosity and provide textural characteristics. Instant beverages used as meal replacements often contain soy concentrates and soy isolates as a source of protein.

Soy Protein, Textured
Textured soy protein (TSP) usually refers to products made from textured soy flour, although the term can also be applied to textured soy protein concentrates and spun soy fiber.

Textured soy flour (TSF) is made by running defatted soy flour through an extrusion cooker, which allows for many different forms and sizes. When hydrated, it has a chewy texture. It is widely used as a meat extender. One of the more popular brands of TSF is made by Archer Daniels Midland Company, which owns the right to the product named Textured Vegetable Protein (TVP).

Textured soy flour contains about 70 percent protein and retains most of the bean's dietary fiber. Often referred to simply as textured soy protein (TSP), textured soy flour is sold dried in granular and chunk style. It can be found in natural food stores and through mail-order catalogs.

Soy Sauce (Tamari, Shoyu, Teriyaki)
Soy sauce is a dark brown liquid made from soybeans that have undergone a fermenting process. Soy sauces have a salty taste but are lower in sodium than traditional table salt. Specific types of soy sauce are: shoyu, tamari and teriyaki. Shoyu is a blend of soybeans and wheat. Tamari is made only from soybeans and is a by-product of making miso. Teriyaki sauce can be thicker than other types of soy sauce and includes other ingredients such as sugar, vinegar and spices.

Soy Yogurt
Soy yogurt is made from soymilk. Its creamy texture makes it an easy substitute for sour cream or cream cheese. Soy yogurt can be found in a variety of flavors in natural foods stores.

Soybeans, Whole
As soybeans mature in the pod, they ripen into a hard, dry bean. Most soybeans are yellow. However, there are brown and black varieties. Whole soybeans (an excellent source of protein and dietary fiber) can be cooked and used in sauces, stews and soups. Whole soybeans that have been soaked can be roasted for snacks and can be purchased in natural food stores and some supermarkets. When grown without agricultural chemicals, they are referred to as organically grown soybeans.

Soymilk, Soy Beverages
Soybeans that have been soaked, ground fine and strained produce a fluid called soybean milk, which is a good substitute for cow's milk. Plain, unfortified soymilk is an excellent source of high-quality protein, B vitamins. Soymilk is most commonly found in aseptic containers (non-refrigerated, shelf stable), but also can be found in quart and half-gallon containers in the dairy case at the supermarket. Soymilk is also sold as a powder that must be mixed with water.

Soynut Butter
Made from roasted, whole soynuts that are then crushed and blended with soyoil and other ingredients, soynut butter has a slightly nutty taste, significantly less fat than peanut butter and provides many other nutritional benefits as well. Soynut butter can be found in a few supermarkets or through mail-order companies.

Soynuts
Roasted soynuts are whole soybeans that have been soaked in water and then baked until browned. Soynuts can be found in a variety of flavors, including chocolate covered. High in protein and isoflavones, soynuts are similar in texture and flavor to peanuts. You can find roasted soynuts in natural food stores and through mail-order catalogs.

Soyoil and Products
Soyoil is the natural oil extracted from whole soybeans. Soybean oil's use in manufactured food products is widespread, making it the world's most widely used edible oil. It is also the most widely used oil in the United States, accounting for about two-thirds of total consumption of vegetable fat and oil intake. Oil sold in the grocery store under the generic name "vegetable oil" is usually 100 percent soyoil or a blend of soyoil and other oils. Soyoil is cholesterol free and high in polyunsaturated fat. Soyoil also is used to make margarine and shortening.
 

The price, adaptability and performance of soybean oil make it appropriate for a broad range of food manufacturing applications. Soybean oil is commonly used in the production of liquid shortening, margarines, soft spreads and low-fat spreads. It is an important ingredient in products as diverse as salad dressings, non-dairy creamers, whipped toppings, breakfast cereals, ice cream, soups, confectionery products, cooking oils, frozen dairy desserts, peanut butter, sandwich spreads and snack foods.

Sprouts, Soy
Although not as popular as mung bean sprouts or alfalfa sprouts, soy sprouts (also called soybean sprouts) are an excellent source of nutrition, packed with protein and vitamin C. They can be sprouted in the same manner as other beans and seeds. Soy sprouts must be cooked quickly at low heat so they do not get mushy. They can also be used raw in salads or soups, or in stir-fried, sautéed or baked dishes.

Tempeh
Tempeh, a traditional Indonesian food, is a chunky, tender soybean cake. Whole soybeans, sometimes mixed with another grain such as rice or millet, are fermented into a rich cake of soybeans with a smoky or nutty flavor. Tempeh can be marinated and grilled and added to soups, casseroles or chili. It can be purchased in Asian food stores.

Tofu and Tofu Products
Tofu, also known as soybean curd, is a soft cheese-like food made by curdling fresh hot soymilk with a coagulant. Tofu is a bland product that easily absorbs the flavors of other ingredients with which it is cooked. Tofu is rich in high-quality protein and in B vitamins as well as being low in sodium. Firm tofu is dense and solid and can be cubed and served in soups, stir fried or grilled. Firm tofu is higher in protein, fat and calcium than other forms of tofu.

Soft tofu is good for recipes that call for blended tofu. Silken tofu is a creamy product and can be used as a replacement for sour cream in many dip recipes. Salad dressings offered by companies in this Directory include creamy dressings made with tofu or some other soyfood product. Several types of tofu can be found in supermarkets and natural health food stores. Tofu is also available as a powder.

Whipped Toppings, Soy-Based
Soy-based whipped toppings are similar to other nondairy whipped toppings, except that hydrogenated soyoil is used instead of other vegetable oils.

Yuba
Yuba is made by lifting and drying the thin layer formed on the surface of cooling hot soymilk. It has high protein content and is commonly sold fresh, half dried and dried. In the United States, dried yuba sheets (called dried bean curd, bean curd sheets or bean curd skin) and u-shaped rolls (called bamboo yuba or bean curd sticks) can be found in Asian food stores.

Where To Find Soyfoods
The more popular soyfoods, such as tofu, meat alternatives, soy sauce, soy flour and soybean oil, can be found in supermarkets. Supermarkets are now carrying both national soyfood brands and their own store brands of soy products. In fact, the June 2006 Mintel Soy-Based Food and Drink Report states that 75 percent of the sales of soyfoods and drinks now come from supermarkets. However, you are still likely to find the greatest variety of soyfoods in natural and health foods stores. Asian food stores carry most of the soyfoods used in East Asia. Several products, such as textured soy flour, textured soy protein concentrates, soynuts and soynut butter, can be obtained through mail-order catalogs. If you have questions about these soyfoods, call your local health or natural food store, a manufacturer of the product, a mail-order company or one of the information resources.

Sources

Oil Crops Outlook, ERS, USDA - Provides commentary and statistics on the latest U.S. market outlook.

Soybean Backgrounder, ERS, USDA, 2006.

Soyfoods Association of North America (SANA) - Provides information about the health benefits and nutritional advantages of soy consumption.

U.S. Soybean Export Council.


Resources and Contacts
 

American Soybean Association.

Illinois Center for Soy Foods.

Oil Crops Yearbook, ERS, USDA - This publication contains more detailed information and longer time series than the monthly publication.

Oilseeds: World Supply and Distribution, Foreign Agricultural Service, USDA - This publication provides a good overview of the world situation for oilseeds and products.

Soy Information Clearinghouse, United Soybean Board.

Soy Isoflavone Database, NAL, USDA.

Soy Protein Council, Washington, D.C.
 

Soy Stats 2007, The American Soybean Association - This guide is a comprehensive resource for statistical information about the U.S. soybean industry and its relationship to world oilseed production. 

U.S. Soyfoods Directory - List of over 323 soyfood manufacturers.   

List of soybean-related government and university publications available online:
http://www.ers.usda.gov/briefing/soybeansoilcrops/links.htm