Kitwe & District Chamber of Commerce and Industry

SOYA BEANS SUPPLY ON MARKET DWINDLES

SOYA BEANS SUPPLY ON MARKET DWINDLES

Supply of soya beans will reduce as stocks held by farmers have dwindled and this will result in the price of soya meal increasing from the currently US$460 per tonne an agricultural commodity researcher has said.  Nkandu Mwenge said stocks have reduced as most soya beans farmers have sold the commodity to crushers and traders.  In an interview on Friday 28th August 2020, Mwenge said feed producers and oil crushers have bought the commodity. “Soya meal is trading at US$460 per tonne with some crushers selling at US$400, stating they are trading at export parity into Kenya.  This year’s soya beans production was slightly under 300,000 tonnes with the larger chunk being produced by small-scale farmers.  Supply will further be affected by demand for the commodity by other countries within the region.  Zambia produced more soya beans compared to other countries within the region.  The price of soya beans produced by small –scale farmers has generally remained stable at K6,200 a tonne while beans produced by commercial framers is trading at US$337 a tonne.  The depreciating Kwacha and reduced supply of small-scale soya beans will provide price support.  In other agricultural commodities, wheat, which is currently being harvested, is trading at the forward contract price of US$430 a tonne.  Meanwhile, Government says there is need for farmers to understand the importance of entrepreneurship in farming if they are to produce more for markers.  Ministry of Agriculture director of agriculture Moses Mwale said most farmers lack knowledge of taking farming as a business.  Mr. Mwale said time is ripe for farmers to become more market-oriented and take calculated risks to open or create new markets for their products.

“We urge our farmers to seek information so they can choose the right enterprise and the right crop, looking at where they are operating from so they can achieve maximum benefits from the enterprise they choose.  In terms of boosting agricultural productivity, we talk a lot about agriculture being a business.”  He said in an interview recently.  Mr. Mwale said the agriculture sector needs players who are innovative and forward –looking manage their businesses as long-term ventures with a view to make them sustainable.  Source: Daily Mail

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