Tanzania’s Soybean Sector: A Sleeping Giant Awakens

Kilimokwanza.org Reporter

Tanzania is making strides in soybean production, yet the industry remains an untapped goldmine with immense potential. In 2023, the country exported $92.7 million of soybeans, making it the 18th largest soybean exporter globally and ranking it as Tanzania’s 16th most exported product. The primary export destinations were China ($37.4M), India ($33.4M), Pakistan ($19.8M), Rwanda ($1.36M), and Kenya ($282K). Notably, the fastest-growing markets between 2022 and 2023 were China ($24.6M increase), Pakistan ($19.8M increase), and India ($16.9M increase)—a strong indicator of the rising global demand for Tanzanian soybeans (Source: OEC, 2023).

Despite these export gains, Tanzania still grapples with a domestic supply gap, as national demand exceeds 150,000 metric tons annually, driven by the expanding poultry and livestock feed industry. In 2023, Tanzania imported $13.4M of soybeans, ranking as the 71st largest importer globally. The bulk of these imports came from Zambia ($7.91M), Malawi ($5.16M), and Zimbabwe ($266K)—a sign that the local industry has yet to reach its full production potential (Source: OEC, 2023).

Smallholder farmers, who contribute over 99% of total soybean output, face persistent challenges, including low productivity, averaging 721 kg per hectare, far below the global average of 2,814 kg per hectare. Yet, Tanzania boasts over 2 million hectares of arable land suitable for soybeans, which is underutilized due to limited access to high-yielding seed varieties, mechanization, and structured markets. Furthermore, market fragmentation has led to price volatility, with farm-gate prices fluctuating between TZS 700 and TZS 1,500 per kilogram during the 2022/23 season (Source: Kilimo Kwanza, 2023).

Recognizing this untapped potential, initiatives such as the Tanzania Sustainable Soybean Initiative (TSSI) and SAGCOT’s value chain interventions are working to close the gap. These programs focus on improving seed access, promoting mechanization, and training farmers in best agronomic practices.

With the right investments, Tanzania is poised to transition from a major soybean exporter to a leading producer and processor, driving food security, economic growth, and sustainable agricultural transformation. By unlocking its full potential, Tanzania’s soybean industry can reduce dependence on imports and establish itself as a powerhouse in global oilseed markets (Source: OEC, 2023).

References:

Add a Comment

Your email address will not be published. Required fields are marked *