The Association of Kenya Feed Manufacturers (Akefema) is raising alarms over an acute shortage of soybeans, with prices having surged by over Sh15 per kilo. Previously priced at Sh97, a kilo of soybeans now costs Sh115. This significant price hike is attributed to a global shortage, presenting a substantial challenge to feed millers in Kenya.
Soybeans are an indispensable component in the production of animal feed, being the most preferred source of high-quality vegetable protein. The recent surge in prices is thus a critical concern for the animal feed sector, which relies heavily on this raw material.
Global Shortages and Local Production Challenges
The global shortage of soybeans has severely impacted Kenya’s supply chain. Traditionally, Kenya imports soybeans from Zambia and Malawi. However, these countries have ceased exports, exacerbating the local shortage. Uganda, another potential source, has also faced a poor harvest, further limiting available supplies.
“We are now left with India and Ethiopia as alternative sources,” stated Akefema CEO Paul Kamau. “Produce from Ethiopia will hit the market soon, although Zambia remains a higher producer. However, there are logistical challenges in sourcing raw materials from these countries, making shipping expensive.”
Government’s Call to Action
Recognizing the severity of the situation, Livestock Principal Secretary Jonathan Mueke has urged Kenyan farmers to ramp up the production of soybeans and sunflowers. These crops are essential for ensuring a steady supply of raw materials for animal feed production. Mueke emphasized that the shortage of raw materials is a major obstacle to the growth of the animal feed sector.
“Farmers in Western, Nyanza, and Eastern regions have started embracing soybean and sunflower farming,” Mueke noted. “In Mt Kenya and Western regions, sunflowers are being cultivated, while in Migori County, farmers are growing soybeans. If local production becomes sustainable, we may start seeing a reduction in feed costs in the coming years. The existence of a ready market should motivate farmers to increase production of these raw materials.”
Industry’s Appeal for Support
In response to the escalating prices, Akefema has requested an extension of the duty waiver on the importation of raw materials. This waiver is crucial to prevent the additional costs from being passed on to farmers, which would further strain the already struggling agricultural sector.
“In January last year, we requested the government to extend the duty waiver on raw materials to make animal feeds more affordable,” said Kamau. “Extending this waiver is now more critical than ever to stabilize the industry and support our farmers.”
Potential Solutions and Future Outlook
To mitigate the current crisis, concerted efforts are needed to boost local production of soybeans and sunflowers. Encouraging more farmers to cultivate these crops can help ensure a steady supply and reduce dependency on imports. Additionally, improving logistics and reducing shipping costs from alternative sources like India and Ethiopia can provide short-term relief.
The Kenyan government, alongside industry stakeholders, must prioritize these initiatives to safeguard the animal feed sector. By increasing local production and securing more reliable import channels, the industry can overcome the current shortages and stabilize feed prices.
Conclusion
The surge in soybean prices poses a significant challenge to Kenya’s animal feed sector. While global shortages have strained supply chains, local initiatives and government support can pave the way for sustainable solutions. By fostering local production and extending duty waivers on imports, Kenya can ensure the continued growth and stability of its animal feed industry. The proactive steps taken today will determine the resilience of the sector in the face of future global market fluctuations.
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