ABSTRACT

Introduction .........................................................................................................249 Soybeans Differ ...................................................................................................250 Commodity Beans...............................................................................................251 Variety Holds the Key ........................................................................................252 Selection Guide....................................................................................................252 Consumer Values ................................................................................................254 Processor Values .................................................................................................255 Farmer Values......................................................................................................257 Seed Suppliers .....................................................................................................258 Supply Systems Compared ...............................................................................259 Logistics Comparison.........................................................................................259 Contract Manager ...............................................................................................260 Third-Party Verification.....................................................................................260 Transgenic Sensitivity ........................................................................................261 Process Verification ........................................................................................... 262 Layered Sampling and Testing .........................................................................263 Summary ..............................................................................................................264

When the product, process, and client have been determined, the immediate challenge becomes one of optimizing the product and production process while distinguishing the product from those of others and cementing a good relationship with the client. Raw material selection addresses each aspect of this challenge (Figure 13.1). Sophisticated buyers select soybeans by variety and production geography. They spurn commodity soybeans as inadequate

and established grade standards as irrelevant. They use contract production and identity-preserving supply systems to guarantee availability of their preferred soybeans when they want them. Such buyers have done so for centuries to obtain better flavor, nutrition, consistency, process yield, market access, market differentiation, and improved income. More recently, food buyers have begun to use the same systems to ensure traceability as well as compliance with cultural standards such as organic certification and the avoidance of certain pesticides or genetically engineered traits. To control raw material issues, buyers develop a supply chain that starts with a contract manager and includes several key links: (1) seedsmen, (2) farmers, (3) consolidators to condition and handle, (4) a freight agent, and (5) an independent, third-party verification agent.