News in brief:
- Surging soybean exports in Nigeria, driven by agro firms, are causing prices to soar, reaching â¦43,000 per 100kg bag from â¦35,000.
– Farmers’ profits are being eroded, leading to concerns about food security, prompting calls for government interventions
Despite a bountiful soybean harvest in 2023, Nigerians may face a shortage due to a surge in exports. According to a news report, agro firms have descended on markets, scooping up beans for foreign buyers, sending prices skyrocketing and raising concerns about food security.
The reports reveal a buying frenzy in Kano’s Dawanau International Grain Market, with companies mopping up soybeans, driving the price of a 100kg bag to a staggering â¦43,000 (up from about â¦35,000 in July). Farmers, who were reportedly initially pleased with the bumper harvest, now see their profits swallowed by the export boom.
Alhaji Abdulrasheed Magaji Rimin Gado, chairman of the Kano State All Farmers Association of Nigeria (AFAN), acknowledges the threat to food security. He attributed the price hike to basic supply and demand, while emphasising the need for interventions to protect local food availability.
Gado urges the government to revive the warehouse system, allowing farmers to store their produce instead of being forced to sell early for immediate cash. Also, he recommends enacting a law prioritizing domestic needs by banning the export of certain crops, including soybeans.
Overall, the influx of exporters’ merchants has ignited a fierce competition for soybeans, driving prices to an unsustainable â¦400,000 per tonne. This windfall for some has become a nightmare for many indigenous oil millers. Many of those millers opine that they are being priced out of the market and face the prospect of closure, jeopardising jobs and local production.
With a booming export market and rising domestic prices, the fate of Nigeria’s soybean supply remains uncertain. While farmers may benefit from the increased demand, the potential impact on food security demands immediate action.
