Some productivity-increasing and quality-changing technology for the soybean complex: Market and welfare effects

Simulations suggest that soybeans with less protein and more oil would alter quality and change quantities on the market. Substitution toward other protein feeds, like fishmeal, would mitigate the benefits from restricted soymeal supply. Thus, there would not be a net welfare gain for the United States, only a redistribution of benefits. But a joint yield increase and composition change would benefit the United States, mainly because livestock producers would pay lower feed prices. Also, industrial processing of soybean oil would become competitive. Hence, soybean research should pursue yield increases by allowing protein reductions.