Output for soya beans this year is expected to drop by about 7.2 percent to 350 000 metric tonnes (MT) largely due to seed challenges and El Nino-induced drought, it has been learnt.
The expected output is against the national requirement of 400 000MT, which means 50 000MT will have to be sourced from elsewhere to close the deficit.
Ministry of Agriculture director of crop development Elida Kazira said in an interview yesterday that the situation is worrisome because after the first crop production estimates projected a drop of soya beans, the outlook worsened during the second round production estimates.
She said: “This year does not look good in terms of soya beans. The dry spells impact was huge and as you might be aware the El Nino weather.
“This means for agro-processors and traders, it will be the survival of the fittest because players will have to scramble for the produce which will be in limited supply.”
Kazira said competition will be tough on the market and despite some industry players looking for special consideration, the ministry wants the market to be fairer.
On average, Malawi produces 400 000MT of soya beans with the vision of tripling output to one million MT by 2030 in line with Malawi 2063, the country’s long-term development strategy, to increase demand for exports.
Agriculture extension expert Leonard Chimwaza, in an interview yesterday, described the situation as a crisis, urging authorities to maintain some restrictions to avoid exports that will diminish the produce.
He said: “As you know, the dry spells affected southern African countries such as Malawi, Zambia and Zimbabwe.
“This means that the drop in supply will also affect neighbouring countries, as such, there will be scramble for the crop within the sub-region.”
National Association of Small and Medium Enterprises executive coordinator William Mwale said the drop in soya beans output will affect cross-border traders who depend on legumes as maize is a protected crop.
“Our exports, especially by small and medium enterprises, have mainly comprised groundnuts, soya beans and other legumes.
“In the case of soya beans, its preservation needs are easier for these traders to afford compared to other crops.”
Meanwhile, agro-processors said the the situation is beyond their control.
In an interview yesterday, Napoleon Dzombe chairperson of Mtalimanja Holdings Limited, whose firm processes soya beans, said the current scenario is likely to raise prices of commodities as agro-processors will struggle to access the raw materials.
“This means processors will be buying soya beans at elevated prices and this will affect products produced from soya beans,” he said.
In 2023, Malawi exported $6.9 million (K12 billion) worth of soya beans, a rise from $2 million (K3.5 billion) the previous year, according to the 2024 Malawi Government Annual Economic Report.
