Soybean is a legume that is very nutritious with high protein content. It is gaining ground internationally due to its multipurpose use as human food and livestock feed. It is used as input for food processing and energy. Currently it comes to be the world’s most important source of vegetable oil. According to FAO, unlike most other beans it contains high protein compared to protein content in meat and egg, respectively. Farmers need to be linked with soybean processing factories to enable them secure market for the produce. Production and processing of soybean by small holders engaged in subsistence farming ensures food security if linked to the processing factories.
In Ethiopia, the production of soybean is uneven, due to price fluctuations and marketing problems. The farmers tend to shift to other produces when prices fluctuate. Due to lack of technical assistance, farmers carelessly engage in the production of the crop. This calls for future intervention either by government or NGOs for improving farmers’ ability of processing soybean and creating favorable market condition. As there is high price fluctuation in the domestic market, it is very crucial to link commercially oriented small and large scale farmers to value chains. This means, enterprises engaged in the processing of oil crops to produce edible oil need to be supported or encouraged to start processing soybean. This requires a link with a group of soybean producing farmers.
Soybean contains non-cholesterol oil and its fortified foodstuffs are considerably low-priced than other sources of high quality protein. According to G. E. Fentahun, it may be utilized directly for nourishment in the form of soy milk and cooking oil. Enterprises engaged in raising poultry use soybean as a source of feed. Soybean crop residues have high protein content used for feeding domesticated animals. It is also used as a basis for compost manure. It is a source of edible oil, which is the second most consumed oil in the world after palm oil. It contributes to a large share of gross output of global vegetable oil among the cultivated oil crops.
Food insecurity and malnutrition are among the major difficulties that the developing countries are facing currently. The significant staple food in most Sub-Saharan Africa is maize, which contains low protein. Maize is intensely used in Ethiopia particularly in rural than in urban areas. This is due to low level of income to buy animal protein for a “balanced diet.” Producing and consuming more soybean would have contributed to food security as it gives a nutritious mix of both calorie and protein. It is the most nutritious food item as it contains the high protein and oil content among legumes with a balance of the essential amino acids. It is a rich source of protein for poor farmers, who have less access to animal protein. According to T. Urgessa, soybean is a source of protein to the rural families and is a source of income when marketed.
Many other products with a soy basis are also directly used for human consumption in the form of soymilk, tasty soy, soy yogurt, soy snacks, soy sauce, protein extract and concentrates. In the major soy producing countries, it contributes to the GDP of the agriculture sector. In these countries, soybean and its bi-products also occupy an important part in total export earnings. Producers engaged in other produces also earn significant income whenever they export soybean and related bi-products. In spite of the fact that it is recently introduced in Ethiopia compared to other oil seeds, records indicate that production and yield of soybean have relatively increased.
The current economic development plan of Ethiopia has given due emphasis to soybean production as an export crop. Its production is also expected to increase to meet export requirements. To meet the market demand, it requires making a linkage between local producers, processing plants and exporters. The lowland of Ethiopia is suitable for achieving soybean production targets. The entire maize belt of the country is also suitable for soybean production. Ethiopia’s strategic location is closer to the countries that are major consumers of soybean. This reduces the cost of transportation for exporters thereby improving the future of soybean as a major earner of foreign exchange.
Despite the importance of soybean to address food insecurity problems prevailing in the country, little emphasis had been given to it in the past as an important export commodity. According to H. Mekonnen, the soybean trade performance of Ethiopia will enhance production and trade. Studies have been conducted on the current status and trends on production, productivity, marketing and price, including major constraints of soybean in Ethiopia. There are good climatic and soil conditions for soybean production in South and Western Ethiopia. These are helpful for both farming and commercial purposes. However, the problem of producing soybean is not only limited to market access. Lack of capital, processing facilities and market information negatively affect production and sales.
The total area used for cultivation and the whole volume of production of soybean has been increasing over years. According to K. Kaleb, the increase in total production of soybean has been due to allocation of more land to it. The increase in hectares of land for the production of soybean has been derived from a rise in demand for the produce both at local and international markets. According to FAO, despite the tremendous increase in the amount of production, the amount of land allotted for soybean is still very low as compared to land earmarked for other oil crops. This is indicative of productivity gains of soybean, which is instrumental for sustainable agricultural growth in the country.
Marginal productivity or net additional productivity level of soybean is low compared to its potential contribution. This depressed productivity was due to failure to use more land and new improved varieties that are highly productive. As an agricultural country, one may not expect that Ethiopia will import more produces than it exports. However, trade deficit in soybean has been recorded for some time due to low export of “processed” soybean. But, in recent years export of “raw” soybean has been on the rise. The major problem in soybean export has been its output “fluctuation.” Also, the value of imported processed soybean has been greater than the raw export. Studies show that there is a huge domestic demand for soybean which encourages local investors to engage in its production.
Normally, when the gap between domestic and international prices is close, soybean exporters take advantage, while producing farmers are disadvantaged. They do not get the full export price. Exporters enjoy the prevailing high price but producing farmers are discouraged. This is partly caused by high expectation of favorable market prices. Some producers may face global price variation. In urban areas where there is a better infrastructure and market information prices may be favorable and stable unlike remote areas. Soybean producing farmers sell large quantity of the produce within the first few months after harvest. Though the quantity is high, the price of the produce is also observed to be low immediately after harvest and high at the end of the production season.
Although soybean production have been going on in Ethiopia for several decades, it was not easy to achieve wider dissemination and production of the crop. The main limitations were lack of know-how of the local farmers on the utilization aspect of the crop and unavailability of attractive market for the produce. Also, there were shortages of systematic approach in popularizing the crop, which required training of farmers on the production, utilization, and market potential. The land allotted for growing soybean in the country was very limited and discouraged production for several years.
The following are major problems related to soybean. It has weak market linkage between producers, processors, exporters and consumers. The contribution of research to improved varieties and associated agronomic practices has little contribution to the improvement of soybean production and productivity. In other words, there is little practical application of improved varieties. The trend in the yield of other cereals shows considerable increase in the past decades which is associated with the use of improved varieties, application of fertilizer and better extension services. Another factor that contributes to low yield is limited knowledge in land and seedbed preparation, cultivation, harvest and storage of soybean.
Studies have investigated the status and trends of production and marketing of soybean in Ethiopia. Records of yield per hectare, total production, and area covered by the crop in the past decades have shown uneven developments. These force farmers to carelessly engage in the production of soybean. This needs serious attention for future intervention by agricultural agents for creating favorable market condition for the crop. Where there is high price fluctuation in the domestic market, it is very crucial to link commercially oriented small and large scale farmers to value chains. This helps industries to engage in the processing of edible oil linked to soybean producing farmers. This linkage secures market for farmers, making them confident thereby promoting soybean production.
Soybean production has been on the rise in Ethiopia. The growth in production has been due to slight increase in land allotted to soybean cultivation by farmers. Studies show that the recent increase in soybean total production has been due to land augmentation and technical inputs. The increase in production is a response to a rise in demand for the produce at local and international markets. According to some studies, despite the tremendous increase in demand for soybean, the land allotted for its production is low compared to land allocated to other oil seeds. Soybean has high productivity per unit of land, which is critical for sustainable agricultural growth and development in Ethiopia.
As mentioned earlier, the net productivity of soybean is low compared to its potential. This is due to inability to apply improved varieties that are found to be highly productive. However, this is not an excuse for importing more processed soybean than Ethiopia exports in its raw form. Trade deficit has been recorded for some time due to low export of processed soybean. However, in the recent past, export of raw soybean has been rising. But, sales fluctuation in its export has been a major problem. The value of “raw” soybean export has been lower compared to the value of imported and processed one. Local investment is being encouraged for processing soybean for export and for meeting the huge “domestic” demand for it.
BY GETACHEW MINAS
The Ethiopian Herald 22 July 2021
