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

Author

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  • Darroch, Mark A.G.
  • Akridge, Jay T.
  • Boehlje, Michael

Abstract

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.

Suggested Citation

  • Darroch, Mark A.G. & Akridge, Jay T. & Boehlje, Michael, 2002. "Capturing Value In The Supply Chain: The Case Of High Oleic Acid Soybeans," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-17.
    • Handle: RePEc:ags:ifaamr:34577
    DOI: 10.22004/ag.econ.34577
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    Citations

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    Cited by:

    1. Julien Milanesi & Marion Desquilbet & E. Luch & R. Rocha de Santos, 2009. "Current and future availability of non-genetically modified soybean seeds in the U.S., Brazil and Argentina," Working Papers hal-02285602, HAL.
    2. Dinggao Liu & Zhenpeng Tang & Yi Cai, 2022. "A Hybrid Model for China’s Soybean Spot Price Prediction by Integrating CEEMDAN with Fuzzy Entropy Clustering and CNN-GRU-Attention," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    3. Vera Sadovska & Lena Ekelund Axelson & Cecilia Mark-Herbert, 2020. "Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    4. Martinez, Stephen W., 2007. "The U.S. Food Marketing System: Recent Developments, 1997-2006," Economic Research Report 55962, United States Department of Agriculture, Economic Research Service.
    5. Ortmann, Gerald F., 2005. "Promoting the competitiveness of South African agriculture in a dynamic economic and political environment," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-35, September.
    6. Krishna, Vijesh V. & Erenstein, Olaf & Sadashivappa, Prakash & Vivek, B. S., 2014. "Potential Economic Impact of Biofortified Maize in the Indian Poultry Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(4), pages 1-30, November.

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    Keywords

    Industrial Organization; Marketing;

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