Tanzania’s Soybean Sector Positioned for Growth: New Baseline Report Highlights Opportunities and Challenges

Dar es Salaam, Tanzania: The recently published “Baseline Report of the Tanzanian Soybean Sub-Sector,” conducted under the Tanzania Sustainable Soybean Initiative (TSSI)—a program under the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and its partners—offers an in-depth analysis of the current state of the soybean sub-sector in Tanzania. With a clear focus on identifying challenges, opportunities, and areas for strategic intervention, the research provides valuable insights for stakeholders looking to develop the sector and harness its full potential.

Overview of the Report

The report is meticulously structured to give readers a comprehensive understanding of the soybean sub-sector in Tanzania. The baseline survey, conducted between June and July 2023, targeted 1,263 soybean-growing households across seven regions: Morogoro, Iringa, Njombe, Ruvuma, Mbeya, Songwe, and Rukwa. The survey regions represent the agricultural heartland of Tanzania, with the Southern Highlands emerging as the primary hub for soybean production. The findings provide a robust starting point for understanding the socio-economic profile of soybean farmers, their production practices, and the market forces shaping the sector.

The key objectives of the survey are threefold:

1. To analyze the current productivity levels, agricultural practices, and technologies used by soybean farmers in the target regions.
2. To understand the market structure, governance, and coordination within the soybean value chain.
3. To generate baseline data to serve as a reference for strategic interventions and guide future development efforts.

Key Findings and Analysis

One of the report’s standout features is its in-depth demographic analysis. Most soybean-growing households are male-headed (80%), with most household heads aged between 40 and 64. The survey reveals a strong dependence on family labor, with average household sizes larger than the national average. While most farmers have completed primary education, only a small percentage have attained post-primary education, underscoring the need for capacity-building initiatives to improve farmers’ knowledge and technical skills.

Land Use and Agricultural Practices

The report reveals that the average soybean farm size is approximately 0.53 hectares, larger than the national average of 0.43 hectares. However, this constitutes only 12% of the total arable land owned by farmers, indicating a significant potential for expansion. Most farmers practice intercropping or crop rotation, with maize being the dominant crop. While these practices contribute to soil health, they also reflect the limitations of subsistence farming, where farmers prioritize food security over commercial production.

Soybean productivity across all regions averaged 0.721 tonnes per hectare, consistent with the national average of 0.8 tonnes per hectare. However, this is far below the global average of 3 tonnes per hectare, highlighting the low productivity levels and the need for strategic interventions. The report identifies access to quality inputs, adoption of modern farming techniques, and capacity-building as critical areas that could significantly boost productivity.

Market Structure and Value Chain Analysis

The report provides a detailed analysis of the soybean market structure, revealing a fragmented and uncoordinated value chain dominated by middlemen and brokers. This situation leads to significant price volatility and limits farmers’ bargaining power. The average farm-gate soybean prices in the 2022/23 harvesting season ranged between TZS 700 and TZS 1,500 per kilogram, with Morogoro recording the highest prices and Ruvuma the lowest. Intermediaries’ dominance means farmers receive low returns on their investments, discouraging them from scaling up production.

The report highlights the urgent need to strengthen value chain coordination and governance. Currently, most farmers are disconnected from high-value markets and rely heavily on middlemen, resulting in limited access to market information and reduced profitability. Encouraging the formation of farmer cooperatives, establishing contract farming arrangements, and improving market linkages are recommended strategies to address these issues.

Financial Services and Input Utilization

Access to financial services is another major challenge highlighted in the report. Over 90% of farmers reported having no access to financial services to support their farming activities. This lack of access to credit prevents farmers from investing in quality inputs such as certified seeds, fertilizers, and inoculants, which are critical for enhancing productivity. The report calls for the development of targeted financial products tailored to the needs of soybean farmers, such as input loans, crop insurance, and flexible repayment schemes.

Despite these limitations, farmers are willing to adopt improved seed varieties and other modern technologies. Improved seed varieties like Uyole 4 have been shown to significantly increase yields, with some farmers achieving yields of up to 1.171 tonnes per hectare. However, awareness and usage of productivity-enhancing inputs such as inoculants and fertilizers remain low. The report emphasizes the need for greater awareness campaigns and training programs to encourage farmers to adopt these technologies.

Opportunities and Recommendations

The report identifies several strategic opportunities for expanding the soybean sector in Tanzania. Given the rising demand for protein-rich animal feed and edible oil, there is considerable potential for increasing soybean production to meet domestic and regional demand. Integrating soybeans into livestock feed chains and promoting their use in local diets could drive up consumption and improve nutrition outcomes. Furthermore, strengthening linkages between producers and processors can create new value-adding opportunities, enhancing the sector’s profitability.

To effectively address the challenges highlighted in the report, several targeted interventions are recommended:

1. Enhance Access to Quality Inputs and Financial Services: Forge strategic partnerships with agricultural input suppliers, financial institutions, and government bodies to improve the availability and affordability of high-quality seeds, fertilizers, and inoculants. This initiative should focus on establishing reliable supply chains, subsidizing critical inputs, and designing financial products such as input loans and crop insurance specifically tailored to the needs of soybean farmers. Expanding access to credit facilities will enable farmers to invest in productivity-enhancing technologies and scale up their operations.
2. Strengthen Market Linkages and Value Chain Coordination: Promote the formation of farmer cooperatives and producer organizations to enhance collective bargaining power and reduce the dependence on intermediaries. Establish and support market infrastructure development, such as aggregation centers and warehouse receipt systems, to streamline market access and ensure fair pricing. Additionally, fostering direct linkages between farmers, processors, and large-scale buyers can facilitate more transparent and profitable market transactions.
3. Accelerate Technology Adoption and Farmer Capacity Building: Expand the scope and reach of agricultural extension services to disseminate knowledge on best agronomic practices and the use of modern technologies. Establish demonstration plots, farmer field schools, and digital learning platforms to provide hands-on training and support the widespread adoption of advanced farming techniques. Special attention should be given to promoting the use of certified seeds, precision agriculture tools, and climate-smart practices to boost yields and resilience against climate variability.
4. Create a Supportive Policy and Enabling Environment: Advocate for the formulation and implementation of policies that create a conducive environment for the growth of the soybean sub-sector. This includes promoting research and development for new soybean varieties, establishing quality standards for seeds and produce, and implementing regulations that facilitate market transparency. Strengthening collaboration between the government, private sector, and development partners will ensure coherent policy frameworks that drive investments and innovation in the soybean value chain.

ASPIRES Tanzania, Prof. David Nyange, Policy Advisor for the organization, extended gratitude to the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and the Tanzania Sustainable Soybean Initiative (TSSI) for entrusting ASPIRES with this important project. “Their technical guidance and financial support were essential in making this exercise a reality,” Prof. Nyange noted.

The success of the baseline survey also hinged on the contributions of TSSI partners, the International Institute of Tropical Agriculture (IITA) and the Farm to Market Alliance (FtMA), who played key roles during the assessment tool development, training of enumerators, field data collection, and report validation.

ASPIRES Tanzania’s team, consisting of Dr. Ibrahim Kadigi, Benesta Masau, Tumaini Charles, Emmanuel Domonko, Lorna Yoyo, Adelina Mbekomize, Claire Ijumba, Edith Lazaro, and Gloria Kessy, received special commendation for their hard work and commitment throughout the research process.

The Royal Norwegian Embassy in Tanzania made the entire project possible financially. The “Baseline Report of the Tanzanian Soybean Sub-Sector” is an insightful document that provides a solid foundation for understanding the dynamics of the soybean sector in Tanzania. By highlighting the critical challenges and identifying strategic opportunities, the report is a valuable resource for policymakers, development partners, and private sector stakeholders. If the recommendations are implemented effectively, Tanzania’s soybean sector could grow significantly, contributing to national food security, economic development, and agricultural modernization. The report underscores the importance of coordinated efforts and investments to unlock the full potential of this promising sector.