Post by Trade Coach on Jan 14, 2024 10:46:00 GMT 1
Brief Product Description:
The Soya bean is a species of legume native to East Asia, widely grown for its edible bean which has numerous uses. The plant is classed as an oilseed rather than a pulse by the UN Food and Agricultural Organization. Soya beans occur in various sizes, and in many huller seed coat colors, including black, brown, blue, yellow, green and mottled. The hull of the mature bean is hard, water-resistant, and protects the cotyledon and hypocotyls (or “germ”) from damage.
Soybeans are an important source of high quality and inexpensive protein and oil. With an average protein content of 40% and oil content of 20%, Soyabean has the highest protein content of all food crops and is second only to groundnut in terms of oil content amongst food legumes. Soybeans are used in the production of milk, edible oil and animal feed.
This crop was first introduced in Nigeria in 1908 and was first planted in Benue state for export. The Malayan variety was the first to be planted and mixed cropping was a common practice as it was grown alongside maize or sorghum or as an intercrop in citrus orchards. Since then, the production of the crop has increased and it has become an important crop that is synonymous with the country.
Nigeria soya bean can be found in almost all states of the country because conditions are suitable for its growth. It has several economic and nutritive benefits that make it one of the most significant food crops grown in the country.
In Nigeria Soya bean cultivation starts in May/June with land clearing. The crop is planted between June and August and, and harvesting time is usually between September through November every year in the country. Benue State is the dominant Soybean Producing area but several other states, such as Kaduna, Plateau, and Nasarawa are increasing production. The crop is harvested 3 - 4 months after planting, depending on the time of sowing and seed variety. It requires an annual rainfall of 700mm to perform well and it can grow in soil that has pH levels between 4.5 and 8.5. It is vital to avoid waterlogged soils as the crop will not perform well in these circumstances and, 3 to 4 seeds should be planted per hole and separated at an interval of 10cm.
The crop usually provides itself with nitrogen through nitrogen fixation. However, it is ideal to use fertilizer, specifically potassium and nitrogen fertilizer that will assist the plant to grow well. As long as the soil is well-drained, then the crop can grow well within three months.
Soya bean should not be manually pulled out of the ground because this might affect the fertility of the soil. When the pods turn brown, they are ready for harvesting and sickles, cutlasses or hoes can be used to cut the mature plant at ground level.
Malnutrition is endemic in Nigeria and soybeans are a near-perfect crop to address the problem. Soybeans are affordable as they cost only one-fifth of the price of beef and poultry yet carry twice the protein as these animal products and also offer essential amino acids. Soybeans are also good for the environment because they require fewer insecticide sprays. They also fix atmospheric nitrogen and thus reduce fertilizer used by farmers.
Not only does it have excellent nutritional value, but the crop is also suitable in the management of soil fertility because it improves the quality of the soil and also helps in Striga control. The plant has several essential purposes, most notably for food such as soy-cheese, infant weaning food and soymilk. It is also used for manufacturing vegetable oil and is a good livestock feed.
Soya bean Major Producing States in Nigeria
Overview of Soya Beans Export in Nigeria
For many years, Nigeria has concentrated on exportation of Agricultural products as one of the main sources of generating foreign exchange in the non-oil export sector.
However, the real export potential of Agricultural commodities has not really been explored because there is no philosophy driving the desire for export growth in the country. Many are simply exporting just to make money with no strategic direction on the implication on the economy. The government has also not done enough in this regard because the Agricultural products that the government is promoting and supporting for exportation are the regular products like Cocoa, Sesame seeds, Raw cashew nuts, Ginger and Hibiscus flower.
Out of the Agricultural commodities regularly exported out of Nigeria every year, the ones that constantly feature on the top 10 exported Agricultural commodities and also among the top ten exports of Nigeria in general include Cocoa, Sesame seeds, Ginger and Raw cashew nuts and neglecting a commodity like Soya bean. This is probably because Nigeria exports have mainly been done by default based on what is most convenient and available and not based on what could really make the difference.
It may interest you to know that the total export market of Cocoa, Sesame seeds, Ginger and Raw cashew nuts is around $20billion while that of Soya bean alone is about $60billion. According to the 2017 global export data from The Observatory of Economic Complexity, the total export volume of Cocoa beans traded in the world was $9.35billion, that of Sesame seed was $2.2billion, that of Ginger was $845million while the exported value of raw cashew nut was $6.84billion. The total value of all these most promoted and celebrated exports of Agricultural commodities in Nigeria is $19.24billion while the world traded value of Soya bean in the same period was $58.1billion.
Anyone looking to invest in exports should consider the exportation of Soya bean. Nigeria currently generates about $47.6million from the exportation of Soya bean and this is just a meager 0.082% of the total export value.
There is therefore a need to increase the volume of Soya bean production. The government has shown that this can be done with what it has achieved with rice production and It is strongly believed that the Government and individuals can replicate the same efforts put in other agro-export product to grow the output of Soya bean cultivation in the country to further the growth in the country’s non-oil export.
Uses of Soya Bean
Soya bean has so many uses and because of its numerous uses, soya beans are in great demand and this opens an opportunity for interested investors to export the product.
Production of milk
treatment of malnourished children
Food for Human Consumption
Feed for Animals
Engine Oil, solvents, cleaners and paints.
Soy based foams
Soy-based hydraulic fluid and rail flange lubricants etc.
Major Countries Importing Soyabean
Export Potential of Soybean
The demand for soya bean has been increasing globally and, farmers are becoming more aware of the importance of the crop. The large demand for this agricultural product in Nigeria by international buyers makes venturing into the export of Soybeans from Nigeria to several countries around the world a lucrative export business to start up.
Packaging, Storage and Transportation
Packaging: It is usually sold in sacks of all sizes depending on customer preferences.
However, for export, Clean propylene woven bags (pp) are used in packaging soya bean. They must be packed in 50 kg or 100 kg sacks to transport as many of them as possible. In recent times, they have been known to be packed in 25kg PP Plastic bags too.
The seeds are packed into large sacks for export with the chief markets being Africa and Europe. The Middle East also acquires large quantities of soya bean from Nigeria and they are flown to other different parts of the world depending on the demand.
Storage condition: They are stored under dry conditions with a moisture content of 10% or less, room temperature 15-21 degrees celsius.
Note: They must be stored in dry conditions for them to remain fresh and suitable for consumption uses/purposes.
Transport Conditions: Transportation of soya beans for export stipulates that they must be put in clean and dry containers, with a temperature of between 15-21 degrees celsius. They should be transported usually within ten days from harvest so they're fresh and in very good condition.
The return on investment on the export of soya bean is estimated between 10%- 15%.