CAPTURING VALUE IN THE SUPPLY CHAIN: THE CASE OF HIGH OLEIC ACID SOYBEANS

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.