Soybean Meal Production Cost Analysis Report by Procurement Resource

Endru SmithEndru Smith
5 min read

Procurement Resource, a global leader in procurement intelligence and market research, proudly presents its latest Soybean Meal Production Cost Report. This in-depth report offers a strategic overview for investors, agribusinesses, animal feed manufacturers, and supply chain professionals seeking insights into the cost structure, production dynamics, and market potential of Soybean Meal, one of the most vital feed commodities worldwide.

Soybean Meal: A Cornerstone of Global Livestock Nutrition

Soybean Meal is a high-protein by-product of soybean oil extraction and serves as a key ingredient in livestock, poultry, aquaculture, and pet food diets. Its high digestibility, amino acid profile (notably lysine and methionine), and affordability make it the most widely used plant-based protein supplement in animal nutrition.

Key Applications:

  • Animal Feed: Especially for poultry, swine, and cattle

  • Aquaculture: As a sustainable alternative to fishmeal

  • Pet Food: Protein enrichment

  • Industrial Use: As a nitrogen source in fermentation and bioprocessing

With rising global meat consumption and expanding dairy industries, Soybean Meal continues to grow in demand, especially in developing economies.

Soybean Meal Production Cost Analysis

The Soybean Meal Production Cost Report by Procurement Resource offers a detailed examination of cost components involved in producing this protein-rich product. It provides stakeholders with critical data on raw material sourcing, processing steps, utility requirements, and financial modeling for various production scales.

Production Process of Soybean Meal

Primary Method: Mechanical and Solvent Extraction of Soybeans

Soybean Meal is obtained as a by-product during the extraction of oil from soybeans. The process involves cleaning, dehulling, flaking, and solvent extraction, followed by desolventizing and toasting to produce the final meal.

Step-by-Step Process:

  1. Cleaning and Conditioning: Removal of impurities and moisture adjustment

  2. Dehulling: Separation of hulls to improve protein content

  3. Flaking: Breaking soybeans into thin flakes for better oil extraction

  4. Solvent Extraction (Hexane): Oil is removed using hexane in an extractor

  5. Desolventizer-Toaster (DT): Removal of residual hexane and inactivation of anti-nutritional factors

  6. Grinding and Packaging: Meal is cooled, ground, and packed

Depending on the processing method—mechanical press or solvent-based extraction—the protein content and oil residue vary, influencing both product quality and cost.

Raw Material and Feedstock Analysis

Primary Raw Material: Whole Soybeans

Soybean procurement accounts for the largest portion of production costs. The price of soybeans is influenced by:

  • Crop yields in major producing regions (U.S., Brazil, Argentina)

  • Global commodity markets and futures

  • Trade policies and tariffs

  • Weather patterns and climate risks

The report provides detailed raw material pricing forecasts, regional sourcing opportunities, and seasonal cost variations.

Utility and Operational Cost Structure

Utility Requirements:

  • Steam and heat for conditioning, toasting, and hexane recovery

  • Electricity for grinding, conveyance, and process control

  • Hexane and recovery systems for solvent-based extraction

  • Water for cleaning and cooling operations

Utility costs can vary significantly depending on geographic location, energy source, and scale of operation. Procurement Resource provides benchmark data and optimization strategies.

Machinery and Infrastructure Needs

Key Equipment:

  • Cleaning and conditioning systems

  • Dehullers and roller mills

  • Flakers and extractors

  • Desolventizer-Toaster (DT)

  • Evaporators and condensers for hexane recovery

  • Meal coolers, grinders, and packing units

For both small-scale and industrial plants, the report outlines machinery specifications, suppliers, and capital investment estimates based on different levels of automation (manual, semi-automatic, automatic).

Capital Investment Overview (CAPEX)

The report provides investment projections based on:

  • Plant capacity (e.g., 100–1,000+ tons/day)

  • Location-specific construction and utility costs

  • Compliance with local food safety and environmental standards

CAPEX includes:

  • Land acquisition and civil work

  • Equipment purchase and installation

  • Licensing and certification

  • Initial staffing and commissioning

The report includes customizable models tailored for:

  • Integrated oil and meal facilities

  • Standalone soybean meal production units

  • Retrofits in existing edible oil plants

Operating Cost Breakdown (OPEX)

Operating costs include:

  • Soybean procurement

  • Energy and solvent usage

  • Labor and plant maintenance

  • Hexane recovery system operations

  • Quality assurance and storage

The report provides cost per metric ton of soybean meal, factoring in variable elements such as:

  • Oil yield fluctuations

  • Soybean market pricing

  • Energy source changes (diesel, electricity, natural gas)

Top Producing Countries:

  • United States

  • Brazil

  • Argentina

  • China

  • India

Major Consumers:

  • Asia-Pacific (especially China and India): Driven by poultry and aquaculture sectors

  • Europe: High demand with increasing focus on GMO-free meal

  • North America: Steady demand from cattle and poultry industries

Key Market Drivers:

  • Global meat and dairy production

  • Urbanization and rising protein consumption

  • Substitution of fishmeal in aquaculture

  • Volatility in soybean oil and biodiesel markets

The report also analyzes export-import dynamics, government policies, and feed industry regulations impacting production planning.

Sustainability Considerations and Certifications

With increased focus on deforestation-free sourcing, GMO content, and traceability, sustainability is a rising cost and value factor.

The report evaluates:

  • Carbon footprint of processing methods

  • Water usage efficiency

  • Hexane recovery efficiency

  • Compliance with Round Table on Responsible Soy (RTRS) and ProTerra certification

Labor and Manpower Requirements

Depending on the automation level, labor requirements vary. The report outlines:

  • Technical operators and mechanical engineers

  • QA/QC personnel

  • Warehouse and logistics teams

  • Safety and environmental compliance staff

It also provides a region-wise labor cost index and productivity benchmarks.

Profitability, ROI, and Break-Even Analysis

The report presents:

  • Gross Margin Analysis

  • Return on Investment (ROI)

  • Net Present Value (NPV)

  • Payback Period

  • Break-even Production Volume

Financial modeling includes multiple market scenarios based on:

  • Soybean price volatility

  • Feed demand surges

  • Regulatory shifts in solvent use or GMO restrictions

Request a Free Sample Report

Whether you're entering the soybean processing industry or optimizing an existing plant, our report delivers the insights you need.

Request a Free Sample Now: https://www.procurementresource.com/production-cost-report-store/soybean-meal/request-sample

Why Choose Procurement Resource?

Procurement Resource combines deep market intelligence with advanced cost modeling tools to empower strategic decision-making. Our Sulfadiazine Production Cost Report provides:

  • Comprehensive cost data

  • Process efficiency recommendations

  • Sourcing and procurement insights

  • Financial planning and feasibility models

Our tailored support helps clients in agribusiness, feed manufacturing, and commodity trading reduce costs, mitigate risks, and plan sustainably.

Contact Information

Company Name: Procurement Resource
Contact Person: Ashish Sharma (Sales Representative)
Email: sales@procurementresource.com
Location: 30 North Gould Street, Sheridan, WY 82801, USA
Phone:
UK: +44 7537171117
USA: +1 307 363 1045
Asia-Pacific (APAC): +91 1203185500

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Written by

Endru Smith
Endru Smith

Hi, my name is Endru and I'm working for a Market Research and Business Consultant company (Procurement Resource). If you have any inquiry we can help you. you can visit our website.