Business and Finance

Malawi fails to meet soybeans demand

Malawi fails to meet soybeans demand

By Esnart Tembo

A report by Mwapata Institute has shown that Malawi is failing to meet a 650,000 metric tonnes (MT) annual soya production target.

The report, titled ‘Policy Options for Unlocking the Potential of Malawi’s soybean Value Chain’, recommends enhanced investment towards the crop’s production.

Malawi’s failure to meet the demand comes at a time the government identified soybean among crops whose production output has to be enhanced as a step towards agricultural production diversification. It is aimed at reducing dependence on tobacco.

The Mwapata Institute data show that for the 2023-24 season, soybean production was only 245,401 mt, an equivalent of just 47 percent of the processing capacity.

The trend has been attributed to factors such as El Niño-induced drought, limited access to inputs and outdated farming practices.

The report shows that Malawi’s yields average between 0.41 and 0.92 tonnes per hectare, but potential yields, with proper crop management, could reach between 2.5 to 3.0 tonnes per hectare, aligning with countries like Argentina, Brazil and Zambia.

According to a partial equilibrium model and economy wide modelling framework approach, focusing on national gross domestic product (GDP) growth employment creation and poverty reduction), this would translate to a gross income of $97.1 million for Malawi’s GDP by 2030, if proper soybean production methods are leveraged.

“This would also potentially create 35,700 new jobs, with 90 percent of them in rural areas where poverty is most prevalent,” the report reads.

“The results show strong poverty impacts, with between 20,500 and 101,700 people lifted out of poverty by 2030 relative to baseline poverty of 9.4 million people. Most poverty reduction is in rural areas, which is also where most poor people live”.

Agriculture policy expert Leonard Chimwaza said Malawi’s seed is more expensive than seed from other countries.

“Most of the farmers find it difficult to access the seed and they end up using recycled seed which also affects the crop,” Chimwaza said.

Chimwaza said Malawi’s failure to meet soybean demand is due to negligence in pest and control measures for the crop, among other factors.