Tag: soyabean

With soybeans production  in short supply and the country’s demand for the oilseed expanding for food, feed use,  and exports, stakeholders  have called for immediate reforms  aimed at reducing disruptions, ensuring farmers increase   production  to exceed   1.3 million hectares target.

Currently, Nigeria’s soybean consumption estimated at 1.275 million tonnes.

Global soya bean exports are forecast to grow by eight per cent between 2023 and this year  based on data from the United States Department of Agriculture (USDA).

The currently increasing demand for soybeans in biofuel production, animal feed and food products outpaced production growth, resulting in a significant hike in soya prices.

In an interview with The Nation, the Chairman, Board of Trustees, Federation of Agricultural Commodities of Nigeria (FACAN), Dr Victor Iyama  noted that there  was  a need to boost local soyabeans production  in the face of    increased demand from the livestock, poultry, and aquaculture industries, urging local producers to take advantage of the export market and opportunities for soyabeans.

With mounting challenges impacting local and export operations, he stressed that timely reforms  were crucial to mitigate disruptions  in increasing overall national volume.

He emphasised the importance of collaboration between the private sector and government to overcome challenges and capitalise on global opportunities. “ The soyabeans  industry has immense potential to contribute to the economy, and through collective efforts, we can ensure sustainable growth in production and exports.”

According to him, agriculture has emerged as a solution to leading unemployment problem by providing job opportunities to youth in various sectors.

He identified soyabeans as one of the sectors to generate income and create job opportunities through the value chain.

He said FACAN was ready to work with the government and the private sector to promote soybean and support the local youth groups to build their capacity on the agribusiness of Soya bean production.

According to him, several factors contribute to the relative high cost of domestically producing soybean due to high cost of inputs such as land, labor, capital and management.

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Some of the problems encountered by farmers in production and marketing ,he  noted were low yield, high post-harvest losses, lack of capital and planting materials, problems on insects, pests, and diseases, lack technical know-how, low market price, and limited market outlets.

He reiterated there was an opportunity to compete in the global food soybean market urging for the stakeholders to work with the government with the aim of increasing productivity for higher farm income and   consumption of soybeans as food.

Speaking recently during an equipment donation in Kwara State to strengthen soybean farming, Managing Director of Olam Agri in Nigeria,Anil Nair, stressed the importance of the crop as  a cornerstone of Nigeria’s agricultural economy, valued for its critical role in food security, animal feed, and biofuel production.

By investing in local soybean production, he indicated that the organisation aims to create a lasting impact on farmers’ productivity and profitability.

He noted: “Through initiatives such as the Kwara State Soybean Sustainability Program and the recent donation of threshing machines, Olam Agri is advancing the future of agriculture in Nigeria. We aim to create a more sustainable, prosperous future for farmers, communities, and the nation by empowering farmers and strengthening local supply chains.”

The poultry sector is currently grappling with the challenges posed by soaring prices of maize and soybeans,  The Nation learnt. Maize is now being sold at N910,000 per tonne, while soybeans are priced at N714,000 per metric tonne.

The high prices of these essential ingredients for poultry feeds are attributed to decreased productivity caused by insecurity and climate change. Consequently, fewer individuals are engaging in poultry farming due to the increased operational costs and reduced purchasing power of consumers.  The President Poultry Association of Nigeria (PAN), Chief Sunday Ezeobiora, in an interview with The Nation expressed concerns over the detrimental impact of the record-high prices of maize and soybeans on the Nigerian poultry industry, leading to significant job losses.

Two crucial ingredients in the formulation of poultry feeds are soybeans and maize, with the poultry industry in Nigeria requiring over four million metric tonnes of maize each year to fulfill the demand of farmers.

The poultry industry alone needs over 4 million metric tonnes of maize annually to meet farmers’ demand. Last year, the production of soybean meal in Nigeria  was estimated to be 688,000  metric tons,according to Statista, a global business intelligence firm . Between 2010 and 2023, the soybean meal crop in the country increased in output, registering the highest growth in 2015, at about 46 per cent compared to the preceding year. Ezeobiora expressed his concern over the fact that a large portion of the soybeans  produced locally is currently being sent overseas, resulting in challenges for producers due to a reduced domestic supply.

He noted: “ If not because of the Presidential order to allow imports of soyabeans,  the price of a tonne of soyabeans would have gone up to N1million. The  announcement that the government made  stopped the price must  moving up.”

Additionally, he highlighted the various factors such as decreased demand for eggs, disruptions in the supply chain, expensive feed costs, scarcity of foreign exchange, avian influenza, and rapidly increasing inflation, all pose a threat to the survival of numerous farms.

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He called upon the Federal Government to address the insecurity issue to facilitate the return of farmers to their fields and boost maize production for the nation. Furthermore, he highlighted the challenges such as decreased egg demand, supply chain disruptions, costly feed, foreign exchange scarcity, avian flu outbreaks, and increasing inflation that are endangering the survival of many farms.

He urged the government to allocate maize from the National Grains Reserve to poultry farmers. The cost of maize surged from N80,000 per tonne in January 2020 to N200,000 in January 2021, and prior to the new harvest, it was priced at N250,000 per tonne.

Throughout 2022, maize prices varied between N190,000 and N250,000, depending on the market. By January last year, the price surged to N290,000 per tonne,  and fluctuated between N350,000 and N400,000 per tonne.

The current maize price is causing apprehension among consumers and stakeholders in the value chain nationwide.

The State Chairman, PAN  Akwa Ibom State, Solomon Ekong, pointed out the continuous surge in maize prices, which is posing a significant risk to poultry businesses and food security in the nation.

Ekong called on the government to permit maize imports in order to protect the industry.

Maize is a key component of the poultry and feed industries, and is an essential cereal for a wide range of dishes in northern Nigeria. The demand for maize has surpassed supply due to the growth of the poultry and feed industries, population increase, and other value chain activities. The increasing prices of poultry products are creating difficulties for many Nigerians, with the cost of frozen chicken and eggs rising significantly compared to previous years.