Zimpapers Logo

Edgar Vhera and Sharon Shayanewako

THE growing import bill for soya bean products, which hit a whopping US$279 million in 2021 alone is scuttling the country’s import substitution drive amid revelations that 80 percent of national soya bean crude oil requirements are being imported.

Statistics availed by Zimstats have shown that between the period 2019 and 2021 there was a giant 206 percent increase in the importation of soya bean products from US$91 million to US$ 279 million.

Ministry of Lands, Agriculture, Fisheries, Water and Rural Development principal agriculture extension specialist, Mr Kennedy Mabehla highlighted that present soya bean production was not meeting the national requirements.

“Current production stands at around 82 000 tonnes against the national requirement of 240 000 tonnes. Industry has installed crushing capacity of 460 000 tonnes and imports oil from South Africa, soya beans and cake from Zambia and recently cake from India to augment local requirements.

“Soya bean is important for both cooking oil and stock feed manufacturing, while residue from oil expression is also utilised in soap and paint manufacture,” he added.

Mr Mabehla also pointed out that the demand of soya bean was being driven by the growth of the livestock sector.

“The growth of livestock industry, especially poultry, piggery and fish as well as changes in eating habits wherein an increasing number of consumers prefer white over red meat has driven the demand for soya beans,” he said.

There has been observed an upward increase in the importation of soyabean products from 2010 to 2021 from a low of US$46 million to US$ 279 million an astonishing 513 percent increase. Soyabean is a strategic crop and a raw material for oil expressing, stockfeed manufacturing and food industries.  Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr Anxious Jongwe Masuka recently highlighted that the country under the National Enhanced Agriculture Productivity Scheme (NEAPS) would fund the soya bean production in upcoming 2022/23 season. He said CBZ Bank would fund 20 000ha of the legume with AFC augmenting by funding 5 000ha.

“The main private sector contractors – Staywell, PHI, Delta and Northern Farming under the aegis of the Food Crop Contractors Association (FCCA) are targeting to produce 31 000ha of soya beans,” said Dr Masuka.

Private players have since indicated that US$43m was needed to fund the production of 35 000ha of soya beans. At this costing structure, if private players were to increase their hectarage to 80 000 at an average yield of three tonnes per ha, then the country will be soya bean self-sufficient by producing 240 000 tonnes from US$100m funding.

The Government has also made a call for local industries to fund at least 40 percent of their raw material requirements locally.

Oil expressers therefore need to embark on establishing contract arrangement withsoyabean farmers to increase access to locally produced soyabean. Food Crop Contractors Association chairman Mr Graeme Murdoch highlighted that a number of stock feed manufacturing companies contract farmers through private sector arrangements to secure their essential raw material needs.

“There are a number of stock feed manufacturing companies that have entered into soya bean contract farming arrangements with farmers. The farmer gets funding to grow the crop, a guaranteed market and technical support from contractor throughout the life cycle of the crop.

“United Refineries are currently the only oil processor who contract farmers directly,” said Mr Murdoch.

Oil Expressers Association of Zimbabwe chairman, Mr Busiso Moyo said in 2021 their organisation only managed to contract 10 percent of their raw material needs due to limited finances for inputs.

“Last year we only managed to produce 10 percent of our needs as a result of limited funds for inputs.

“This year we are in negotiations with potential funders and financiers to secure 25 percent of our requirements locally. We should be able to reach between 40 and 50 percent by 2025 as we are doing this organically within our network”, he explained.

An analyst who preferred anonymity commented that if the country’s nine edible oil processing plant companies were to contract soyabean farmers, the country would not need to import soyabean products.

Since 1980 the area planted to soya beans and yields have been on a gradual decline with the highest achieved area being in 2009 with 85 227ha while the lowest was in

2017 with only 21 561ha. In terms of total soya bean output the largest output was in 2001 when 140 793 tonnes were harvested with the lowest in 2017 when a total production figure of 35 743 tonnes was recorded.

On productivity the lowest yield was in 2008 at 0,67 tonnes per hectare with the highest in 1999 at 2,28 tonnes per hectare.