Soybean is the world’s most important, most traded oilseed. Processed, it is a source of high-quality, high-protein animal feed in the poultry and pork industries—and a source of edible oil. There is also a growing market for human consumption of processed soy, such as corn-soy blend, which offers a low-cost source of protein.
Africa, a net importer of both soybean and processed soy products, has the capacity to produce substantial soybean volumes. Although major soybean-producing and -processing countries can achieve low unit production costs, emerging information suggests that local production is not necessarily at a significant price disadvantage when compared with imports. As a result, soybean has the potential to capture an import-substitution opportunity, as well as to address generally high-price elastic markets in Sub-Saharan Africa for meat or protein in general.
*This report is a Dalberg study commissioned by ACET as background for the 2014 African Transformation Report.