Soybean Market Value Chain Profile

Image: Flickr, Toshiyuki IMAI
Image: Flickr, Toshiyuki IMAI

Methodology

Combination of quantitative data and qualitative research.

Research Objective

Provide an overview of supply and demand trends of soybean production and processing in South Africa.

Synopsis

  • Soybean production in South Africa has more than tripled over the period of observation (2003 – 2013). During this period, production outstripped domestic consumption, allowing for export opportunities.
  • Soybean production geared towards oil and oilcake, animal feed and human consumption – crushed soybean (oil/oilcake) have seen an increase in demand, while processing for feed and human consumption has been fairly consistent.

Policy Recommendations

  • Two key factors influencing production includes weather conditions and land allocated to soybean production.
  • Increase in domestic processing capacity can lead to increase in domestic demand, and as a result more crops geared towards soybean production.
  • Marketing infrastructure plays a key role in boosting production and exports.
  • Production of relatively minor commodities are centred around key export hubs.
  • As soybeans (and soybean-products) increase in popularity, there are increasing SPS measures adopted by countries (which can often act as NTBs, restricting trade flows).
2 Jun 2016

Sector

Agriculture, Agro-processing

Institution

South African Department of Agriculture, Forestry and Fisheries

Commodity

Soybean

Region

Sub-Saharan Africa

Country

South Africa

Tags

Data, Market Analysis