A Look at Soybean Production in Zambia

AllAfrica -- April 2, 2012 -- Agriculture is not only one of the biggest sectors but it also contributes immensely to the gross domestic product (GDP) of Zambia. It contributes more than 20 per cent to the country's GDP, and 70 per cent of the actors (farmers) are small-holder. In a series of articles under the heading 'Agribusiness chat', we shall try to discuss some commodities (both crops and livestock) and try to follow them through using the value chains analysis models. Our entry point will be the production through to processing/value addition, marketing/distribution up to consumption. In today's article, let's talk about soybeans business in agriculture. Soya bean is a crop that belongs to the same family as beans, groundnuts, sunflower, tomato, egg plant and many more. They are collectively called leguminous crops. Unlike maize, the bulk of soya beans consumed in Zambia are grown by the commercial farmers and some of the emergent farmers. Though, it is a crop that is not too difficult to grow, if one judiciously follows its requirements. It is not by design that small-holder farmers don't grow much of it, but for some reasons have to do with the way it is marketed. However, with problems of late payments in maize marketing by Food Reserve Agency (FRA), there has been an upswing in the growing of soya beans by small-holder farmers. For instance, in the last planting season, no seed suppliers had certified seed by November 2011. All the stocks had been bought due to the high demand for this commodity, unfortunately, not only in Zambia but the whole of Southern Africa. Soya beans belongs to the family Leguminosae and genus Glysine L. It is a crop native/indigenous to East Asia (China), which is one of the five oldest crops cultivated by the Chinese for food before 2500BC.

It is a crop that can be grown in a wide range of soils, though it does very well in deep well drained sandy loam to clay loam. For economic yields, avoid growing it in sandy soils. However, the soils should also not have a PH less than 5.6. PH is scale on which we measure soil condition in terms of acidity. The scale is from 0 to 14, with values near zero being very acidic while the opposite is true for 14. Soils that have pH 7 are neither acidic nor alkaline, they are said to be neutral, 0 to 6.9 is very acidic to slightly acidic while 7.0 is neutral and 7.1 to 14 is slightly basic to very basic). Preferably, soils are recommended to have a pH range of 5.5 to around 7.1 because that is the range which promotes most crop production. Thought I should mention that it is relatively cheaper to reclaim a soil that is acidic unlike one which has higher pH values, and luckily enough most lands in Zambia have soils that are acidic especially in region III. The topic of soil acidity will be dealt with later in the future articles. Therefore, the range of 5.6 to around 7.1 would be the ideal range for our soya beans production. The problems with soils that are very acidic are that some elements that are important for soya beans growth will not be in the unavailable form for the crop to access them. One of the elements which are critical for soya beans growth is phosphorus and at very low pH, it is found in amounts that are not available to the crop (complexed form or fixed in soils. I will not delve into the science behind the availability as this could be too detailed for this space. Some people might be tempted to say even if the soil is quite acidic (lower than 5); I will apply too much fertiliser. My advice to such lines of thinking is that you are just wasting your resources because it is like putting one table spoon of sugar in five litres of water and expecting the solution to be as sweet as zig(sugar solution). However, for some farmers that might be found in soils that are in such conditions, the remedy is to apply lime (mind you, one can find very acidic soils even in region I, it doesn't just come about due to high rainfall but also the agricultural practices such as continual application of acidifying fertilisers like urea and ammonium nitrates for a very long time without liming. This crop also needs rainfall ranges of between 500millimetres to around 1000millimetres depending on the variety that one wants to plant. The rainfall has to be well distributed. Our farmers are encouraged to seek advice from agricultural extension staff from the Ministry of Agriculture, ZNFU and some private companies such as Seed-Co, MRI, ZamSeed, Pannar,

Pioneer and many more. The crop also needs a frost-free season and do not need to be grown in areas where temperatures go beyond 400C for a long time. With this information, you will see that it can be grown in a wide geographical coverage of Zambia. In areas where rainfall is not well-distributed and falls on the lower bracket, irrigation can supplement its growth if one can afford. After being satisfied by the environmental conditions, the next thing that the farmer who we shall be calling a 'green entrepreneur', needs to search for a suitable variety in the area he/she is found. Just like maize, we have varieties that are early maturing and those that are late maturing. The other very cardinal point to note is that some varieties do shatter (explode when they are mature) while others take long or may not at all. This is a very important characteristic to know because if one plants a shattering variety and goes in late to harvest, they will have high losses. Planting soya beans can be done on ridges or flat land. You can also use conservation methods in planting this crop and the plant specification depends on the level of management one will implore. However, farmers should not plant less that 60 kilogrammes per hectare if one wants to get near the yield potentials of most varieties. The recommended rates for most of the varieties are around 80 to 100 kilogrammes of seed per hectare, and the newly released varieties have yield potential of between 3.0 to about 6.0 tonnes per hectare as compared to old varieties that would yield around 1.5 tonnes. Mind you, if you want more money in your pockets, you need to plant improved varieties that will give you maximum yields. At planting, there is some material that you can plant with soya beans, this is called inoculum. Inoculum is not fertiliser but these are small living things (bacteria -harmless to people) which when well applied will help soya beans use the atmospheric nitrogen and convert it into nitrates. We all know that nitrogen is one of the most important macro nutrients needed for not only soya beans growth but even other crops. A word of caution is that this inoculum should not be used to substitute the fertiliser because then we shall starve the plant off other necessary nutrients like phosphorus, potassium, boron and many others. It's like my friend Donald Mwape who would day-in-day-out, feed on cassava and fish and boast

to his cousins from Chipata that he eats well. Donald should also take in some fruits and vegetables to have a balanced diet. All those that want to venture in soya beans should take note that unlike some crops, it does not compete well with weeds in the early stages of its growth (first four weeks). However, we are lucky that just like maize, there are herbicides that one can spray in order to control the level of weed infestation. There are some herbicides that can be sprayed before germination and others that can be sprayed after germination (over the soya beans). Farmers need to visit various chemical companies to be advised on what kind and type of herbicides to use on particular soils. The types of weeds that are predominant will tell what kind of herbicide to apply, is it broad leaves or grass? In 2005, I remember visiting a farmer who was complaining that the herbicide he had applied was not effective as the weeds where not killed, and when we went into his field to verify, he was right. After a thorough inspection and questioning, it was learnt that the farmer had applied the right type of herbicide but in a wrong type of soil. The clay content will determine what type of herbicide to apply and what rates, this was not followed. Just like people, soya beans are living things and they can get diseases and die. There are so many diseases that affect soya beans but the disease infestation is not so much pronounced with the small-holders as it is with the commercial farmers. The one major reason for the disparity is that commercial farmers follow intensive type of cultivation due to limited land unlike small-holder farmers who may leave some land furrow for sometime (however, smallholder farmers must also practise better land management as taught by our colleagues from CFU- Zambia is limited). It is affected by both fungal and bacterial diseases such as rust, powdery mildew, and bacterial blight, red leaf blotch and others. There are also several pests that affect soybeans, such as caterpillars, aphids, cutworms and birds. There are some chemicals that may be used to control these except for birds (please avoid baiting birds as you may end up killing other people, just scare them away). The best preventive measure to control pests and diseases is to follow what I call field hygiene which starts with proper crop rotation, physical barriers and use of chemicals. For this week, we shall end here but please let's continue with our article next week.

The author is an agribusiness specialist. Copyright The Times of Zambia. Distributed by AllAfrica Global Media (allAfrica.com). Copyright notice This is a news service of NewsEdge Corporation 2012. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.

SOYA BEANS ASSESSMENT REPORT

Prepared by the Agricultural Consultative Forum Secretariat Plot 8857, Alick Nkhata Road, Longacres P/Bag 16, Woodlands, Lusaka, Zambia Tel/Fax 258157

April, 2011

Contents

TABLE OF CONTENTS 1.0 Introduction 1.1 Objective and Terms of Reference 2.0 Methodology 2.1 Data Collection Methods 2.1.1 Areas Visited 3.0 Challenges 4.0 Findings and Analysis 4.1 Soya beans Production 2009/2010 4.2 Major off Takers of Soya beans 4.3 Current Installed Processing and Operating Capacities- 2010 4.4 Export and Import Figures 4.5 Key Findings 4.6 Recommendations from Stakeholders 5.0 Conclusions Annexes: Annex 1: Processors and their Installed Processing Capacities Annex: 2 Milling Companies/processors visited in various Districts

1.0 Introduction The soya beans stakeholders held a meeting on 22nd February 2011 where they resolved that the Agricultural Consultative Forum (ACF) should undertake an

independent assessment of the national consumption of soya beans for the country. This mandate came as a result of lack of credible, verifiable and unanimously agreed soya beans national consumption requirements.

1.1 Objective and Terms of Reference

The main objective was to assess the national consumption requirements of soya beans for the country. The specific terms of reference of the study were to: Determine the total soya beans production for the season 2009/2010. Identify the major off takers of the soya beans from the farmers in the value chain. Establish the current installed processing capacity for the stock feed manufacturers and their current operating processing capacity. Determine soya beans monthly stock requirements for the current operating processing capacity or demand for stock feed needs. Determine the volumes of soya beans processed for human consumption Establish the export import figures for soya cake, soya beans and soya stock feed (as an ingredient) in 2010.

2.0 Methodology The exercise was undertaken by two teams from 14th -19th March 2011. One team went to the Copperbelt Province while the second team covered Lusaka and some parts of Central Province.

2.1 Data Collection Methods Predesigned questionnaires and informal interviews were used to collect primary data from the processors. Secondary data was collected from Zambia Revenue Authority. 2.1.1 Areas Visited The areas visited were chosen based on the criteria that they are involved in soya beans processing. The two teams visited soya beans processors and Zambia Revenue Authority on the Copperbelt, Central and Lusaka provinces. (See Annex for the places visited).

3.0 Challenges

The research teams experienced delays in getting information from the contact persons of the soya beans processors thus making collection of data slow. Some contact persons suggested that appointments should have been made in advance.

4.0 Findings and Analysis

The following were the key findings of the study:

4.1 Soya beans Production 2009/2010 The total soya beans production last farming season (2009/10) is 111,888 Mts against the area of 27,991 Ha. The crop forecast result for 2011 indicate an increase of soya beans production by 4651 Mt.

4.2 Major off Takers of Soya beans The major off takers of soya beans from the farmers in the value chain are; Traders ( individual and corporate entities) Millers/processors Supermarkets Livestock farmers Export market

4.3 Current Installed Processing and Operating Capacities- 2010 Table.1 below shows that most of the soya beans reaching the milling companies/processors have mostly been used for stock feed formulation. The total national installed processing capacity for stock feed manufactures or processors is about 30,025 Mt per month. Out of this capacity, 73% or 21,819Mt is the current operating processing capacity. Table 1: Installed Mill Capacity and Amount of Soya Processed
Total Installed Mill Capacity/Month (Mt) Actual Mills Operating capacity/Month (Mt) Amount of Soya Processed for Stock feed (Mt/M) 10,229 Amount of Soya processed for human consumption (Mt/M) 1,103

30,025

21,819

The national monthly soya mill requirement was calculated by first establishing the individual monthly mill requirements (capacities) of all the mills in the country dealing with soya beans. (18 Mills were identified and 16 released the required information while the other 2 could not give information because they are yet to start production). Then the capacities were added and the total came to 30,025 Mt per month. Then this amount was multiplied by twelve (12) months to get annual mill capacity of 360,300 Mt. (when operating at 100%). In addition, there are two newly built mills which are due to start operations before the next soya beans marketing season. The combined mill capacities of these two new plants are 30,600 Mt per month. Therefore, it is anticipated that the total national mill requirement for 2011 will increase to 60,625Mt per month The import figures for 2010 were gotten from Zambia Revenue Authority.

The mill capacities for two new plants that are scheduled to start soya beans processing this year (2011) have been excluded from the above figures. The estimated mill operating capacity of the two new plants is 30,600 Mt per month. This brings the installed processing capacity for stock feed to 60,625 Mts.

4.4 Export and Import Figures

Table 2 below shows that in 2010, the majority of the imports (88%) were for human consumption. This may be as a result of local mills not processing much for human consumption as can be seen from table 1 Table 2: Amount of Soya and related Products Imported
Year Soya Beans Mts) ( Soya Cake, oils , chunks/human foods (Mts)

Stock feed with soya as ingredients (Mts)

Total Imports (Mts)

2010 2011 (Jan- March)

29 478

808 100

84 226

921 804

Source: ZRA

Table 3 below shows that about 49% of total soya related exports was soya beans.

Table 3: Amount of Soya Beans and its Related Products Exported

Year Soya Beans (Mts) 2010 2011 ( Jan-March) Source: CSO 14,536 504 15,233 3,648 Soya Cake, oils and soya residues (Mts) Total Exports (Mts) 29,769 4,152

4.5 Key Findings

Arising from the above analysis is the following: The current installed processing national monthly mill capacity is estimated at 30,025 Mt. This is likely to increase to 60, 625 Mt per month when the two new mills are brought on board. The actual average operating national monthly mill capacity is estimated at 21,819 Mt The total national monthly consumption of soya/products at these mills is estimated at 11,332 Mt, out of which 1,103 Mt is for human consumption and 10,229 Mt is used for stock feed formulation. (See annex 1 for comparison) The total soya beans imports for 2010 was found to be 29 Mt while the total imports of stock feed with soya as an ingredient for 2010 was 84 Mt.

The total amount of soya cake/oils (human foods) imported for 2010 was 808 Mt. The total soya imports for 2010/2011 (up to March 2011) is 1,725 Mt. The surplus (production less consumption) is estimated at 19,000Mt. The total exports of soya beans/products for 2010 was 29,769 Mts, out of which 14,536Mts was Soya beans and 15,233 was soya cake, oils and soya residues. The total exports of soya beans/products for the first quarter of 2011 was 4,152 Mts, out of which 504 was soya beans and the rest being soya cake, oils and soya residues. 4.6 Recommendations from Stakeholders Stakeholders contacted during the study recommended that:

 The industry and other partners should engage more small scale farmers in soya beans production by building their capacities and providing them with adequate market information Only processed stock feed and not soya cake should be eligible for export.

The industry should maintain minimum levels of soya beans stock in the country.

5.0 Conclusions

Arising from the findings of this study, the following are our recommendations: FISP programme should consider including soya beans as a crop to support to promote production. The industry should undertake programmes that support soya beans production and also intensify seed certification. ZNFU and other partners should encourage soya beans sub-sector stakeholders consultation meetings.

Encourage all soya beans players to use ZAMACE as a trading platform.

Annexes:

Annex 1. Estimation of Soya Requirement using Hatcheries

Chicks hatched/ NAME OF HATCHERY Chicks hatched /week Month

Broiler

Pullet

Rossi Breeders Hybrid Zambia Poultry Breeders Bokomo Master Chicks Panda Chipata hatchery Sub-total

300,000 250,000 25,000

40,000 60,000 20,000 70,000 data not yet available 740,000 45,000 20,000

Total amount of soya used/year

4,100 Mts

Method Used 740,000 broiler Chicks plus 45,000 layer chicks = 785,000 chicks hatched every week. One year (52 week) so 785,000 x 52 weeks = 40,820,000 chicks every year

Each chick will need on average 3kg to grow = 40,820,000 X 3 kg = 122,460 Mt of Stock feed[m1] . Per month we need 122,460 Mts of stock feed divide by 12 months = 10,205 Mts. The Actual Soya in this stock feed is 0.3 X 10,205 = 3,061 Mt per month If 3,061 Mt constitutes 75% of soya beans used in the country for poultry, then 25% = 1020 Mt for others. This means that the monthly soya beans consumption stock feed formulation, is estimated at 4,100 Mts

Annex 1: Processors and their Installed Processing Capacities

S/N Name of processor/miller Installed mill capacity per month Mts 1 2 3 CMR Feeds Bokomo Farm feed ltd 200 35 600 (inactive) Actual operating capacity per month Mts 150 30 Nil Amount of Soya used for stock feed preparation Mt /month 150 30 Amount of Soya used for Human foods Mt/ month

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Total

National milling Zamanita Chakwakwa ltd Agri Options Nutri feeds Seba Foods Olympic CBT Emman Farming Astral Quicksave Golden Lay Ltd Tiger animal Feed Quality Commodities Novatech Simba Milling

1100 4500 60 1250 4500 1150 9000 30,000 (inactive) 250 30 500 1250 2000 3500 700 30,025

950 4200 3 1000 3200 400 6500

880 3,300 1000 700 200 500 200 775 3

120 30 336 600 1700 2300 300 21,819

120 25 336 138 1450 1200 200 10,229 1,103 125

Annex: 2 Milling Companies/processors visited in various Districts

Serial No 1 2 3 4 5 6 District Visited Ndola Chingola Luanshya Mkushi Kabwe Lusaka Name of Milling/processor Olympic Milling CBT, Golden lay Ltd, Astral, Quick Save, Mega Eggs Emman Farming Enterprise Agric Options CMR farms, Chakwankwa farms, Bukomo National Milling, Zamanita, Seba Foods, Simba Milling, Trade Kings, Tiger Animal Feeds, Nutri Feeds, Nova Tech, Farm Feeds, Quality Commodities, Trade kings and Chico Estates Kwacha Milling

Chipata

Note: Other millers/processors were also visited to find out if they deal in soya or not. These are Antelope milling, Olympic Milling (Mufulira) and Mpongwe milling. They do not process any soya beans

did you get 3kg average? Layers need about 9kg/cycle and broilers 3.5 to attain marketable weight

[m1]How

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