Soybean Oilseed Presses

Introduction to Nepal

Nepal is a landlocked country located between China and India, as shown in figure 7 (CIA, 2015). Nepal has a large variation in climate, with cool summers and severe winters in the north and subtropical summers and mild winters in the south. (CIA, 2015). The population of Nepal is around thirty million people, with an average gross income per capita of $340 in Canadian funds (World Health Organization, 2015). As such, Nepal is one of the poorest countries in the world with one quarter of the population living below the poverty line (CIA, 2015). Nevertheless, agriculture is an integral part of the Nepalese economy, providing income for over 70% of the population, and accounting for over one third of the gross domestic product (CIA, 2015). There are several challenges facing Nepal that inhibit its growth and economic success, including the country’s landlocked geographic location, the persistent power shortage across the nation, the underdeveloped transportation infrastructure, as well as the country’s statistically high susceptibility to natural disaster (CIA, 2015).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 7: Map of Nepal showing geographic location between China and India

(Retrieved from http://bestworldmapsrota.tk/nepal-map/)

 

Evidence Supporting the Need for an Economical Soybean Press in Nepal

The production of soybeans in Nepal has been steadily increasing over the past decade, with a total yield of nearly 30,000 tonnes in 2013, yet there has been a steady decline in the production of soybean oil (FAO, 2015). This is emphasized in Figure 8 which shows Nepal’s steady increase in soybean production from 2008 to 2013, and figure 9 which shows the substantial yield increase that was realized from 2012 to 2013. Additionally, figure 10 shows the recent decline in soybean oil production which is apparent from 2011 to 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 8: Soybean production in Nepal from 2008-2013, illustrating the steady increase in production (FAO, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 9: Soybean yield in Nepal from 2008-2013, illustrating the steady increase in yield (FAO, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 10: Production of soybean oil in Nepal from 2007-2013, illustrating the drop in production from 2011-2013 (FAO, 2015)

 

The decline in soybean oil production despite the increase in yield and total production of soybeans could indicate that Nepalese farmers cannot reach a large enough scale of soybean production to economically press their own seeds, especially given that each family holds less than one hectare of land on average (Manandhar, 2005). Resultantly, Nepalese communities have become reliant on importing soybean oil, instead of being able to locally produce the commodity (FAO, 2015). This is emphasized by the fact that soybean oil was Nepal’s top agricultural import by value from 2008 to 2011 (FAO, 2015). A small-scale oilseed press could benefit Nepalese farmers, allowing them to produce their own high quality protein supplement for their livestock from an already existing oilseed crop, with the additional benefit of being able to use and market the resulting oil.

 

Health Benefits of Soybean Oil

According to Drewwnowski (2000), soybean oil provides approximately five thousand calories per dollar spent in US grocery stores, making it an excellent source of energy in human diets. Although vegetable oils have been a major cause of obesity in certain developed nations such as the US, the oil can serve as an excellent source of energy in countries such as Nepal where there is a high prevalence of starvation (World Health Organization, 2015). Adding more soybean oil in the diet could substantially increase caloric intake to combat the considerable starvation in Nepalese communities. Soybean oil is also rich in polyunsaturated fatty acids which have been shown to have a positive impact on human health in contrast to the saturated fatty acids found in oils from animal fats (Drewwnowski, 2000). Further, Oomah and Mazza (1999) indicate that soybean oil is rich in linoleic acid which can be used to synthesize conjugated linoleic acid, yielding many anti-atherogenic, anti-lipogenic and immuno-suppressive properties. This indicates the benefit of soybean oil as a preventative health measure for Nepalese citizens, which is important given the rather limited access to health care in Nepal (World Health Organization, 2015). Another benefit is that soybean oil has a high heat transfer coefficient, making it an excellent cooking medium, allowing food to be prepared in less time, while also providing the substantial health benefits previously mentioned (Miller et al. 1994).

 

Markets for Soybean Oil

Although soybean oil can provide substantial health benefits when used in food products and cooking, one of the largest opportunities for the resulting oil may be the production of biodiesel. Biodiesel is produced by a process known as trans esterification, whereby the raw soybean oil is combined with methanol and a catalyst, which converts the triglycerides in the vegetable oil to glycerol and three methyl ester groups. (Lardy, 2008). Methanol is produced as a by-product, which can be recycled along with the glycerol. Figure 11 shows the general process for biodiesel production from raw soybeans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 11: General schematic of biodiesel production (Lardy, 2008)

 

Halek et al. (2009) showed that only limited resources are required to convert pressed soybean oil into biodiesel, while Hill et al. (2006) determined that biodiesel from soybean oil yields ninety-three percent more energy than the energy invested in its production. According to Lardy (2008), 53 gallons of biodiesel can be produced form one tonne of soybeans, highlighting the efficiency of the extraction process. This provides evidence for the significant economic advantages for Nepalese communities to harbour the technology required to press soybeans. Biodiesel can then serve as an economical and environmentally conscious alternative to diesel fuel in various engines, with minimal mechanical modifications required (Agarwal & Das, 2001). In circumstances where Nepalese farmers do not have access to a power source to run the small motor on the Canadian made oilseed press, biodiesel can mitigate the problem. With a small additional investment, these communities could purchase a diesel generator that could use the biodiesel as a fuel source, to then power the oilseed press. This increases the self-sufficiency of the farmers, eliminating their reliance on an outside source of hydro to power their oilseed press. This may help to make the purchase of an oilseed press more feasible in isolated locations of Nepal where achieving a reliable power source may be impossible.

 

If the Nepalese farmers do not choose to market the resulting oil as biodiesel, there is also a significant global market for the oil to be used in other applications including the production of industrial materials, food products and other nonedible merchandise (Cahoon, 2003). Nepalese communities could form cooperatives to market products produced from the oil, creating entirely new enterprises. The opportunities to impact the Nepalese economy could be substantial for farmers with access to a Canadian oilseed press.

 

Benefits of Soybean Meal as a Livestock Feedstuff

According to Lardy (2008), soybean meal is the gold standard to which all other oilseed meals are compared, mainly attributed to its high digestibility, low fibre and balanced amino acid profile. These qualities allow soybean meal to be fed to many different animal species, even those with lower abilities to digest fiber such as monogastrics (Lardy, 2008). The nutrient content of soybean meal is compared to other oilseed meals in figure 12 below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 12: Nutrient content of various oilseed meals (Lardy, 2008)

 

As shown in figure 12, soybean meal excels in terms of protein content, total digestible nutrients, and energy content, providing good evidence to suggest that soybean pressing should be prioritized over the pressing of other oilseeds in Nepal. Because of its clear advantages as a feed supplement, soybean meal is often the most expensive oilseed meal, so many Nepalese farmers may not be able to afford it given their low income (World Health Organization, 2015). Nepalese farmers that can produce their own soybean meal on-farm may benefit immensely by feeding this high quality supplement to their livestock, or alternatively, they may benefit financially by the sale of the feedstuff to other livestock producers.

 

Transport from Canada to Nepal

Energrow’s ES3750B oilseed press weighs 660 pounds and measures 2 metres by 2.6 metres by 2.1 metres (Energrow, 2015). Because of the substantial size and weight of each individual unit, transport from Canada to Nepal would be a considerable cost associated with exportation of the oilseed presses. Since it is expected that only a few units will be sold in Nepal, there is limited opportunity to receive bulk shipping discounts. As such, the units would be ideally shipped through a large international freight company that can offer competitive prices on worldwide freight. A1 Freight Forwarding, is headquartered in Toronto, Ontario with delivery points across the world. A shipping quote was received from A1 Freight Forwarding and is displayed in Figure 13 for the shipment of an individual Energrow ES3750B oilseed press from their warehouse in Toronto, Ontario to the airport in Kathmandu, Nepal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 13: Air freight quote number 152157 from A1 Freight Forwarding (A1 Freight Forwarding, 2015)

 

As shown in figure 13, the cost of the freight for Energrow’s oilseed press is approximately 6,500 dollars. Combined with the purchase price of approximately 30,000 dollars (Energrow, 2015) the total cost of the press once it arrives in Nepal is 36,500 dollars. The route that the cargo would take is shown in figure 14 below. It is assumed that the cost of transporting the oilseed press from Energrow’s manufacturing facility in Listowel, Ontario to A1 Freight Forwarding’s warehouse in Toronto, Ontario would be negligible. The substantial cost associated with freight from Toronto to Kathmandu does, however, pose a burden on the export potential of the Canadian oilseed presses, especially given the small per capita income of Nepalese citizens (World Health Organization, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 14: Air transport route taken from warehouse in Toronto to airport in Kathmandu, Nepal (retrieved from www.google.ca/maps)

 

Competitive Products from Other Nations

Energrow’s ES3750B is considered a small oilseed press as it has a marginal five horsepower motor and a small capacity of around one tonne of material per day (Energrow, 2015). There are competing oilseed presses produced in other nations that have similar output capacities and design. These products have been presented in table 4, to compare the various features of each model.

 

Table 4: Comparison of products from other nations that are competitive with Energrow’s ES3750B Canadian-made oilseed press

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The actual costs of these competing oilseed presses would need to be recovered to complete a more thorough comparison; however, the competing presses all offer the advantages of reduced shipping costs. Two of the manufacturers listed in table 4 are located in the neighbouring countries of China and India, while the third is still located much closer than Canada. Additionally, Shreeji Expeller Industries is well prepared for exports since it already sends its products to over thirty countries worldwide (Ahreeji Expeller Industries, 2015). However, Energrow’s press may actually be more desirable in Nepal since it further processes the resulting oilseed cake into feed grade pellets, which can then be fed directly to livestock, unlike the competing units which do not have this feature (Energrow, 2015). This added feature may make the exportation of the Canadian oilseed press more feasible than oilseed presses from other nations, because it allows Nepalese producers to achieve greater financial benefit through feeding the pelleted feedstuff to their livestock. The setup for the Shreeji VK-10, Gemco YZS-68 and Alvan Blanch XP100 oil expellers are illustrated in figures 15, 16 and 17 respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 15: Shreeji VK-10 Oil Expeller (Shreeji Expeller Industries, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 16: Gemco YZS-68 Screw Oil Expeller (Gemco Energy, 2015)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 17: Alvan Blanch XP100 Oil Expeller Press (Alvan Blanch, 2015)