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COMPETITIVE VALUE CHAIN ANALYSIS SOYBEAN-CONSTRAINTS TO PRODUCTION AND MARKETING IN WEST AFRICA-2020

VALUE CHAIN ANALYSIS SOYBEAN-CONSTRAINTS TO PRODUCTION AND MARKETING IN WEST AFRICA. This value chain analysis Soybean will consider key constrain hampering the production and Marketing of Soybean in Nigeria, West Africa. Soybean is a leguminous crop that is cultivated for its edible seeds and highly rich in protein. The world’s total consumption of soybean is about 11 million MT.

 

In Africa, the total consumption is 618,000 MT annually, and another 4,800 tons was used for animal feed. Nigeria is the largest consumer of soybeans in SSA followed by Uganda. In Africa, dry soybean is used to produce milk substitutes and flour.

VALUE CHAIN ANALYSIS SOYBEAN

 Current Situation-Value Chain Analysis Soybean

Nigeria is one of the largest Soybean producers in Sub-Saharan Africa; as the crop grows well in many states in the country and Kaduna is among the top producing States. The majority of the farmers are smallholder farmers with an average farm size of 1.5ha and yield mostly less than 1.0Mt/ha. Nigeria’s annual average production is around 680,000 tons. This is approximately 25% of the country’s national demand of 2.7 million tons. The deficit is met through imports from major global producers such as Argentina, Brazil, and the USA.

Value Chain Analysis Soybean -Soybean in Kaduna State

The value chain analysis Soybean will consider Kaduna State as one of the most important States in Nigeria for Soybean production. The State is blessed with abundant rainfall and soil conditions suitable for better yield. The presence of many grains markets in the State offers opportunities for bulk purchase while marketing agents see the state as a major destination for the procurement of this special commodity

Similarly, the value chain analysis Soybean will consider the proximity of the State to Kano which is the center of commerce with Dawanau Market – the largest grain market in West African; the presence of many small and medium soybean processing companies provides an unprecedented demand for Soybean grains and its by-products in the State. Due to these abundance opportunities, multinational companies that see soybean as a major commodity have their presence in Kaduna State. Among them is OLAM International Limited, an Agrochemical Company with one of the largest feed mill processing plant in Nigeria with an annual Soybean processing capacity of more than 200,000Mt.

 

The Challenges-Value Chain Analysis Soybean

However, these numerous advantages are yet to be maximized due to several constraints that limits the efficiency of production, processing and marketing of Soybean in the State. Some of the constraints identified are

(i) Poor access to improved seeds in terms of availability, accessibility, and quality

(ii) Poor adoption of good agricultural practices (iii) limited availability of processing equipment and quality farm inputs

(iii)Poor market structure and linkages

(iv) Lack of access to finance and price instability

(v) Inconsistent  policy implementation

Case Study of Cassava Value Chain Analysis and Production Trend Analysis

Value Chain Analysis Soybean- Key Market Players in Nigeria Soybean Value

Value Chain Analysis Soybean- Poultry Industry:

Soybean and maize play major roles in feed composition used in the poultry industry. The Two types of commercial farmers that occupy Soybean value chain in this industry: the integrated large farms that produce their own feed and the small farmers that purchase branded feed from specialized feed producers are both in constant demand for Soybean

Some Integrated Farms &Companies in Nigeria Soybean value chain

  • Amo byng Farm,
  • Obasanjo Farms
  • Anadariya Farms,
  • Dayntee farms.

Edible Oil Industry: Soybean is one of the oilseeds with the highest oil content. It has up to 18.2% oil content in Nigeria. Extracted oil from Soybean is usually further processed and packaged for human consumption in the domestic market. In Nigeria, groundnut is next in rank to Soybean in terms of oil content

Some key players in the edible oil industry in Nigeria

  • Camela Vegetable Oil Co. Ltd
  • Ground Cereal Ltd
  • Sunseed Nigeria Ltd
  • Sunola Pure Refined Soya beans
  • Power Oil,
  • Golden Oil Industries Ltd among others

 

Fast Moving Consumer Goods (FMCG) Companies:

 The FMCG companies made use of different derivatives of soybean such as oil, concentrates, girts and soybean flour.

 

Some key FMCG companies which use soybean derivatives include

  • Nestle,
  • Chi Limited,
  • AACE Foods,
  • Spectra Nigeria Ltd.

Local Processing of Soybean:

Local processing of soybean occurs in rural communities where soybean is processed into soybean soup, soybean cake, pap etc. Soybean is also used as a protein alternative in low-income households where complementary animal proteins such as fish, meat, egg, milk are not affordable.

Soybean is also processed into soybean cheese and consumed with local dishes

Some Soybean Processing Companies in Nigeria

  • SALMA Oil Mills in Kano,
  • Grand Cereals in Jos,
  • ECWA Feeds in Jos,
  • AFCOT Oil Seed Processors, Adamawa State,
  • PS Mandrides in Kano.

 

VALUE CHAIN ANALYSIS SOYBEAN

Value Chain Analysis Soybean- Support Programme ATASP

In order to reduce import bill on Soybean, Nigeria launched some initiatives such as State-sponsored Agricultural Transformation Agenda Support Programme (ATASP) which targets sustainable increasing of incomes for smallholder farmers and rural entrepreneurs in the production, processing, storage and marketing of some selected commodity value chains including Soybean. This is one of the efforts to create a domestic market for Soybean in both raw and processed forms and hence trigger increased production in Soybean high producing States such as Kaduna, Benue, Adamawa, Kwara, Katsina, Taraba and Kano.

 

Value Chain Analysis Soybean- CBN Anchored Borrower Programme (ABP):

Soybean is one of the major commodities under the Anchor Borrower Programme of the Federal Government of Nigeria whose aim is to create market linkage between anchor companies involved in the processing and smallholder farmers (SHFs) of the required key agricultural commodities. The program thrust of the ABP is provision of farm inputs to smallholder farmers to boost production of these commodities, stabilize inputs supply to agro-processors and address the country’s negative balance of payments on food. With this, government works to reduce import bill on Soybean and increase local production

 

Value Chain Analysis Soybean- Policy Recommendation.

A sustainable business networking platform that creates synergies between the public, private and donor agencies was recommended.

The following are specific policy recommendations to move the value chain forward in Kaduna State.

  • There is a need to develop financial models that fit Soybean Value Chain and provide bespoke services to promote value chain operators.
  • Set modalities for Seed Sector development and intensified the use of quality seeds, including the availability of and access to good quality seeds.
  • Creation of seed industry in the State and building capacity of young seed breeders
  • Lead and proactively identify markets for Soybean value chains that fits into the strategic investment plan of Kaduna State Government
  • Create a private sector-oriented extension services solution that is suitable to Soybean value chain in Kaduna State
  • Development of investment promotion services and products that will attract investors into Soybean value chain in Kaduna State
  • Identify and recommend solutions to all post-harvest challenges in Soybean value chain in the State
  • Improved seed varieties from the International Institute of Tropical Agriculture (IITA) and the National Cereal Research Institute (NCRI) IITA and business model by AGRA can be promoted for adoption by the actors in the value chain.
  • Creation of action groups that will work with the Kaduna State Ministry of Agriculture to proffer practical solutions to challenges identified in the value chain. The action group will be led by an independent private sector expert – practitioner in the Kaduna State Soybean value chain

Value Chain Analysis Soybean- Conclusion on Soybean Production.

The Ministry of Agriculture should be supported in the development of a policy road map for the Soybean sub-sector. The policy should drive cost-efficient practices that will promote an increase in profitability in the activities of the value chain actors in the State. Good Agronomic practices, adequate finance and investment, as well as institutional strengthening across the Kaduna State economic landscape, must be pursued.

 

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