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Capturing Value In The Supply Chain: The Case Of High Oleic Acid Soybeans

Listed author(s):
  • Darroch, Mark A.G.
  • Akridge, Jay T.
  • Boehlje, Michael

The oil produced from high oleic acid soybeans (HOS) offers benefits to both consumers and food manufacturers. It is lower in saturated fat and more heat-stable than commodity-grade soybean oil. Optimum Quality Grains L.L.C. is working with seed distributors, elevators, and crushers across the Midwestern U.S. to develop a new supply chain which keeps the HOS and the resulting oil separate (identity preserved (IP)) from commodity-grade soybean oil. This case illustrates the challenges and key issues facing three players - an agricultural inputs dealer, a grain elevator, and a soybean crusher - that must decide whether to join the new supply chain as the HOS research commercialization. The case can be used to create a discussion about how each player can create and capture value from this specialty crop. The case works well either as part of an undergraduate capstone course or a graduate course in agribusiness, or in an executive education course, especially such a course aimed at managers from seed and life sciences companies.

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Article provided by International Food and Agribusiness Management Association (IFAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 05 (2002)
Issue (Month): 01 ()

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Handle: RePEc:ags:ifaamr:34577
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