Malawi Moves to Harness Soya Market In China

Source: The Times Group Malawi
Author: William Kumwembe

DONE DEAL -- Malawi Ambassador to China receives the consignment

Malawi has exported the first lot of about 240 tonnes of soya to China, the world's largest importer of agricultural products, as part of the country's drive to diversify and broaden its export base.

Shipping of the commodity this week by local firm, Paramount Holdings Limited, has been done under the Chinese Soya Beans Protocol -- an open trade pact which would see Lilongwe exporting the crop to Beijing.

Other commodities earmarked for the Chinese market include chilli, sesame and macadamia nuts

China already certified Paramount Holdings Limited as the local firm to export the soybeans to Asian country, and the deal is expected to help in creating structured markets and forex generation for the country.

State-owned Malawi Investment Trade Centre (MITC) has been facilitating the processes.

MITC Chief Executive Officer Paul Kwengwere yesterday commencement of the export process under the deal marks a crucial step in testing the market for Malawian soya beans in China.

He said the venture does not only hold immense promise for Paramount Holdings but also reflects positively on Malawi's potential to expand its agricultural exports and strengthen its economy.

"It is an open contract. For us, it is an achievement that we have broken into the Chinese market. That means as long as we are able to get enough soybeans that are balanced, we can easily export to China.

"We could have a challenge of low production, but we know that the market is available. We need to pay attention to coordinating efforts as a country. We are proving all the necessary information on the requirements of the buyer," he said.

While commending the move in a separate interview, local agricultural policy expert Tamani Nkhono Mvula said the country should work towards enhancing output to satisfy the available markets.

He recommended revamping of the extension services, among other interventions.

"If you look at the demand that is there in most international markets, Malawi fails to meet. Last year there were demands from Kenya and Tanzania of over 150,000 metric tonnes of soya, but the country could not produce even half of that.

"In most cases farmers complain that we have market challenges but there is huge demand. So, there is a need for the country to ensure that we address all the supply side constraints, in this case we are looking at the production constraints," he said.

This year, the country is projected to produce about 235,487 metric tonnes of Soya Beans this year according to the third and final round estimate from the Ministry of Agriculture.

Farm gate price for the commodity is pegged at K800 per kilogramme.