# Soybeans: Extraction

The nitrogen-fixing trick that pairs soy with maize

Source page: https://www.materialinsights.org/commodities/soybeans/extraction/

What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.

Soybeans were grown in China more than 4,500 years ago (Geman, pdf p. 155). The plant is a legume that fixes its own nitrogen, so it rotates well with maize. US farmers sow in April and May, and pod-setting in August decides the yield (pdf p. 155). Brazil's soy frontier pushed north into the Cerrado grasslands, where yields now match the US (pdf p. 157). Most beans are not eaten whole. Crushers crack and flake them, extract the oil with solvent, and toast the remaining meal, which is 75-80% of the bean by weight (pdf p. 159).

Soybeans are an annual legume grown on large mechanised farms in Brazil, the United States, Argentina and Paraguay, and on small rainfed plots in India and China. The bean is rarely the end product. Most of it is crushed into meal and oil near the farm (Argentina, India) or near the consumer (China, EU). The main split is therefore between farming systems, which set cost per tonne, and the crushing step, whose margin (the 'board crush') decides whether beans move as beans or as meal and oil. Export taxes and import tariffs push countries toward one model or the other.

#### Methods compared

| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| **Brazil: large mechanised no-till farms, soy then second-crop maize** | 42% of world output in 2025/26 (180.5 of 429.2 Mt, WASDE) | national area 47.35 million ha in 2024/25 (Conab); SLC Agricola, a listed grower, planted about 425 thousand ha of soy in 2025/26 | yield 3,621 kg/ha nationally in 2024/25 (Conab); 3,961 kg/ha at SLC Agricola | rotation with maize and cotton | n/a |
| **United States: corn-soy rotation on family farms** | 27% of world output in 2025/26 (115.97 Mt, WASDE) | 81.2 million acres planted in 2025/26 (WASDE) | 53.0 bu/acre in 2025/26 (about 3.56 t/ha, WASDE) | nitrogen credit to the following maize crop | indicative (basis: farmdoc daily Illinois crop budget, April 2026): total cost about $878/acre in 2025 (about $2,170/ha), or about $12.54/bu (about $460/t) at 70 bu/acre including land |
| **Argentina and Paraguay: crush-and-export model** | Argentina 11% of world output (49.3 Mt, 2025/26, WASDE) | Argentina crushed 43.0 Mt in 2025/26 and is the top exporter of soybean meal (22.4% of world value) and soybean oil (44.4%) in 2024 | n/a | meal, oil, biodiesel | n/a |
| **India: rainfed smallholder kharif soybean** | about 2.5% of world output (10.5 Mt of 429 Mt in 2025/26, SOPA and WASDE) | 120.45 lakh ha sown in 2025; Maharashtra and Madhya Pradesh grow about 83% of output | about 0.9-1.0 t/ha (derived: SOPA crop 125.82 lakh t on 129.55 lakh ha in 2024; 105.36 lakh t on 120.45 lakh ha in 2025) | non-GM meal, which earns a premium in some export markets | no cost per tonne found; price reference only: MSP Rs 5,328/quintal for 2025-26 (a support price, not a cost) against mandi prices of about Rs 4,617/quintal in September 2025 (APMC data) |
| **Crushing: solvent extraction into meal and oil** | 87% of world soybean use is crushed (375.8 of 432.3 Mt, 2025/26) | Bunge processed 41.0 Mt of soybeans in 2025 | US: about 11.9 lb oil and 47.3 lb meal per 60 lb bushel (derived from WASDE 2026/27 US crush, oil and meal output); India: meal about 79% of crush (SOPA Oct-Nov 2025) | hulls, lecithin, soapstock, glycerine (from biodiesel) | n/a |

#### How each method works
**Brazil: large mechanised no-till farms, soy then second-crop maize**

Soy is planted September-December on the Cerrado and in the South, often followed in the same year by safrinha maize. Farms run from thousands to hundreds of thousands of hectares. Beans move by truck, barge and rail to southern ports or the newer Arco Norte ports.

Lowest-cost frontier supply and room to expand, but long inland haul and deforestation scrutiny (EU deforestation rules).
 Conab Sept 2025 (via Safras & Mercado); SLC Agricola 2025 results (via Revista Cultivar); USDA WASDE Oct 2026 **United States: corn-soy rotation on family farms**

Soybeans alternate with maize across Illinois, Iowa and the Midwest, using GM seed, no-till and large machinery. Beans are sold to local crushers or moved by barge down the Mississippi to Gulf export terminals.

Reliable logistics and data, but higher land cost than Brazil and exposed to Chinese tariffs.
 USDA WASDE Oct 2026; farmdoc daily, 'Cost to Produce Corn and Soybeans in Illinois 2025' **Argentina and Paraguay: crush-and-export model**

Farms in the Pampas grow soy under no-till. Most of the crop is crushed in large plants on the Parana river near Rosario and shipped as meal and oil rather than beans, partly because export taxes are lower on products.

Efficient river crushing cluster, but export taxes and drought (2023) make supply volatile.
 USDA WASDE Oct 2026; UN Comtrade 2024 **India: rainfed smallholder kharif soybean**

Sown with the monsoon on black soils of Madhya Pradesh, Maharashtra and Rajasthan, mostly on small farms with little irrigation. Farmers sell in mandis; the state buys at the minimum support price (MSP) when market prices fall below it.

Non-GM and close to Asian feed markets, but yields are a third of Brazil's and the crop depends on the monsoon.
 SOPA estimates 2024-25 and 2025-26; Global Agriculture (APMC data), Oct 2025; PJTAU market outlook, May 2025 **Crushing: solvent extraction into meal and oil**

Beans are cleaned, cracked, dehulled, conditioned and flaked; hexane dissolves the oil, which is then recovered by distillation. The defatted flakes are toasted into meal. Crush margin = value of meal plus oil minus cost of beans.

Low-margin, high-volume business; plants located either at origin (Argentina, India) or destination (China, EU) depending on tariffs.
 USDA WASDE Oct 2026; Bunge Q4 2025 earnings release; SOPA Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.

#### Who does it: global

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **Bunge** | US (Swiss-domiciled) | crushing, origination, refining | 54.2 Mt oilseeds processed (41.0 Mt soybeans) | 2025 | [Bunge Q4 and full-year 2025 earnings release (includes Viterra after the 2025 combination)](https://investors.bunge.com/~/media/Files/B/Bunge-IR/documents/financial-information/press-releases/q4-2025-earnings-release.pdf) |
| **Wilmar International** | Singapore | crushing, merchandising (Asia's largest) | 30 Mt oilseeds and grains sales volume | 2025 | [Wilmar FY2025 results briefing presentation](https://links.sgx.com/1.0.0/corporate-announcements/PYS9LAOYNCGL6401/876240_Wilmar%20FY2025%20Financial%20Results%20Briefing%20Presentation.pdf) |
| **COFCO International** | China | origination and export from Brazil, crushing | 17 Mt grain and oilseed exports from Brazil | 2024 | [The AgriBiz, 3 February 2025 (company interview)](https://www.theagribiz.com/international/how-cofco-prepares-to-gain-more-ground-in-brazils-exports) |
| **ADM** | US | crushing, origination, biodiesel | not published | 2025 | [World Grain, ADM 2025 results](https://www.world-grain.com/articles/22369-adm-earnings-dip-amid-lower-crush-margins) |
| **Louis Dreyfus Company** | Netherlands | origination, crushing, merchandising | not published | 2025 | [World Grain, LDC 2025 results](https://www.world-grain.com/articles/22537-ldc-2025-results-resilient-in-face-of-challenges) |
| **Cargill** | US | origination, crushing, merchandising | not published | 2025 | not available |
| **SLC Agricola** | Brazil | farming (one of the largest listed growers) | 425 thousand ha soybeans planted (2025/26 estimate); 2024/25 yield 3,961 kg/ha | 2025/26 | [SLC Agricola 2025 results (Revista Cultivar)](https://www.revistacultivar.com.br/noticias/slc-agricola-registra-receita-recorde-de-rdollar-8-6-bilhoes-em-2025) |

#### Who does it: India

| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| **SOPA (Soybean Processors Association of India)** | India | industry body; crop and soymeal data | 10.54 Mt soybean crop estimate (105.36 lakh t) | 2025-26 | [SOPA supply-demand estimate, Dec 2025 (Global Agriculture)](https://www.global-agriculture.com/india-region/india-is-crushing-more-soybean-even-as-production-falls-in-2025-26/) |
| **NAFED and NCCF** | India | state procurement at MSP under the Price Support Scheme | 2 Mt soybeans procured (about 20 lakh t), later auctioned at a loss | 2024-25 | [Global Agriculture, citing SOPA, 2025](https://www.global-agriculture.com/agriculture-industry/india-faces-rising-soybean-procurement-burden-sopa-suggests-direct-farmer-price-support/) |
| **AWL Agri Business (formerly Adani Wilmar)** | India | soybean crushing (Vidisha), port refineries, Fortune brand | 2.98 Mt edible oil sold in 9M FY25 (all oils); about 18% share of consumer packs | 9M FY2025 | [AWL investor presentation, January 2025](https://nsearchives.nseindia.com/corporate/AWL_27012025151051_Investor_Presentation_SE.pdf) |
| **Patanjali Foods (formerly Ruchi Soya)** | India | soybean crushing, edible oil refining, Nutrela soya chunks | not published | FY2026 | [Patanjali Foods annual report FY2025-26 (FilingReader summary)](https://filingreader.com/news-wire/mumbai/2026-09-05/patanjali-foods-crosses-40000-crore-in-annual-revenue) |

India is the fifth-largest grower (3.8% of world output in 2024, FAOSTAT) but a net importer of soybean oil. Its non-GM soymeal exports were 22.75 lakh t in oil year 2023-24 (SOPA), led by Iran and Bangladesh, and 21.27 lakh t in FY2024-25. Official and industry crop numbers differ widely: the Agriculture Ministry's second advance estimate for 2024-25 was 151.32 lakh t against SOPA's 125.82 lakh t.

## Other sections

- [Summary](https://www.materialinsights.org/commodities/soybeans/index.md)
- [Overview](https://www.materialinsights.org/commodities/soybeans/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/soybeans/correlation/index.md)
- [Production](https://www.materialinsights.org/commodities/soybeans/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/soybeans/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/soybeans/cycles/index.md)
- [Trading](https://www.materialinsights.org/commodities/soybeans/trading/index.md)
- [Movement](https://www.materialinsights.org/commodities/soybeans/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/soybeans/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/soybeans/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/soybeans/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/soybeans/links/index.md)