 |
| Soya Beans |
The Growing utilisation of soya bean in human food and animal feed industries has created domestic supply gap leaving massive opportunities for investments in production of the commodity.
Coordinator, Community of Agricultural Stakeholders of Nigeria (CASON), Sotonye Anga, stated few months ago that the demand for soya beans in Nigeria is about N300 billion.
Prices
According to Novus Agro Commodity September index report, the lowest price of a ton of soya bean currently goes for N130, 000 in Mutum Biyu market, Taraba State and the highest price is N216, 670 in Relief Market, Anambra State while it is sold for N150, 000 in popular Mile 12 Market in Lagos. Average price of a ton of the commodity computed from the price it is sold in nine major markets spread all over the country is N161, 149.
About six months ago, a ton of soya bean was sold for N135, 000 in Lagos and this was the average price for the different markets all over the country.
Demand
The fact that prices have gone up within these six months indicates that the demand gap estimated at N225 billion had still not been met adequately. This N225 billion demand gap is 75 percent of the total N300 billion soya bean market demands. Hitherto, Nigeria has been producing only 25 percent of its annual soya bean demand leaving a gap of about 75percent. Part of this demand gap is being met by importation but with scarce supply of foreign exchange, it is imperative that the country look more and more inwards for supply of commodities that can be produced domestically.
A Central Bank of Nigeria (CBN) Report on Grains Demand and Commodity Prices of 2013 had put industrial demand for soya bean seed at a total of about 2,270,700 tons.
About four months ago, Anga also confirmed the Global Alliance on Improved Nutrition (GAIN) report which put Nigeria’s current annual production of soya beans at about 500,000 to 600,000 metric tons (10million to 12million bags of 50kg). This is about 25percent of the 2, 270,700 in the CBN report. By computation, this indicates that domestic supply gap of about 1.5 million metric tons of soya beans (30 million bags of 50kg) worth N225 billion existed and even currently, this is yet to be met.
Production
According to various reports, Nigeria’s domestic production of soya beans is no doubt trending upwards, but there is still a shortfall in supply to demand due to heavy usage of the commodity by the livestock industry, especially the poultry industry and for human food formulations. Soya bean crushers in the country are operating below capacity and are unable to satisfy the growing demand for soya bean meal and oil.
Usage
The International Institute of Tropical Agriculture (IITA) in one of its reports says leading infant food manufacturers in the country use soya beans because of its high nutritional value. Soya bean is also processed into flour and its oil is used in local paint, cosmetics, and soap making industries.
Direct human consumption of soya beans and its usage as animal feeds are also very significant in Nigeria, especially among rural low-income groups that cannot really afford animal protein sources such as meat, fish and eggs.
Chief Executive Officer, Royal Farm Produce, Seyi Gbadamosi, affirmed that there is an all year round demand for soya bean. According to him, “after sorghum, soya bean is the most profitable grains to invest in, whether the investor wants to grow it or trade in it. Processing or reprocessing it for the industrial market is also highly profitable. In fact, the profit from processed soya beans is higher.”
Constraints
Despite this steady increase, domestic output continues to lag behind rising demand. Higher production is constrained by low yield levels resulting from the high cost of seeds and scarcity of superphosphate fertilizers. Average yield levels are approximately 1.2 metric tons per hectare. Soya beans are produced on smallholder farms, averaging no more than one hectare, as a result, it is non-mechanised. Therefore, investors that want to produce sufficient quantities would have to do mechanised farming.
Cultivation
In Nigeria soya bean cultivation starts in May/June with land clearing and harvesting normally occurs in late October through November every year. The crop is harvested three to four months after planting, depending on the time of sowing and seed variety. Benue state is the dominant soya bean producing area but several other states in the north, middle belt do produce soya bean. States in the Southwest and Southeast can also produce soya bean when rains have reduced significantly.
Other issues
Apart from industrial demand, the insurgency in the Northern States also contributed to the huge shortfall in domestic supply of soya bean. Though insurgency is receding, many of the displaced persons have not yet fully resettled to go back into massive production of the commodity.
ReplyDeleteHello,
If you want to go into soybeans farm business, There are so many company website this days like http://www.virtatrade.com that will enable you as a beginner to raise the fund you need to start up your soybeans farm business without you seeking for a loan.
This company is where many business dealers from all over the world generate fund that backup their various businesses financially.
I used this company to backup my cocoa beans export business each time my business is running down.
You can visit and register with the company website here http://www.virtatrade.com to raise the fund you need now to go into your soybeans farm business.