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
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 22 nd 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 14 th -19 th 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 Actual Mills Amount of Soya Amount of Soya Capacity/Month Operating Processed for processed for human (Mt) capacity/month (Mt) Stock feed consumption (Mt/M) (Mt/M) 30,025 21,819 10,229 1,103 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 Soya Cake, oils, chunks/human Stock feed with soya as Total
( Mts) foods (Mts) ingredients Imports (Mts) (Mts) 2010 29 808 84 921 2011 478 100 226 804 (Jan- March) Source: ZRA Table 3 below shows that about 49% of total soya related exports was soya beans. Table 3: Amount of Soya Beans and it s Related Products Exported Year Soya Beans Soya Cake, oils Total Exports (Mts) and soya residues (Mts) (Mts) 2010 14,536 15,233 29,769 2011 ( Jan-March) 504 3,648 4,152 Source: CSO 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 stakeholder s consultation meetings. Encourage all soya beans players to use ZAMACE as a trading platform.
Annexes: Annex 1. Estimation of Soya Requirement using Hatcheries NAME HATCHERY OF Chicks /week hatched Chicks hatched/ Month Broiler Pullet Rossi Breeders 300,000 Hybrid 250,000 25,000 Zambia Poultry Breeders 40,000 Bokomo 60,000 20,000 Master Chicks 20,000 Panda 70,000 data not yet Chipata hatchery available Sub-total 740,000 45,000 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 Actual operating capacity per month Amount of Soya used for stock feed preparation Amount of Soya used for Human foods Mts Mts Mt /month 1 CMR Feeds 200 150 150 2 Bokomo 35 30 30 3 Farm feed ltd 600 (inactive) Nil Mt/ month 4 National milling 1100 950 880 5 Zamanita 4500 4200 3,300 775 6 Chakwakwa ltd 60 3 3 7 Agri Options 1250 1000 1000 8 Nutri feeds 4500 3200 700 9 Seba Foods 1150 400 200 200 10 Olympic CBT 9000 6500 500 11 Emman Farming 30,000 (inactive) 12 Astral 250 120 120 13 Quicksave 30 30 25 14 Golden Lay Ltd 500 336 336 15 Tiger animal Feed 1250 600 138 16 Quality Commodities 2000 1700 1450 125 17 Novatech 3500 2300 1200 18 Simba Milling 700 300 200 Total 30,025 21,819 10,229 1,103
Annex: 2 Milling Companies/processors visited in various Districts Serial No District Visited Name of Milling/processor 1 Ndola Olympic Milling CBT, Golden lay Ltd, Astral, Quick Save, 2 Chingola Mega Eggs 3 Luanshya Emman Farming Enterprise 4 Mkushi Agric Options 5 Kabwe