Cooking oil industry imports soya

ZIMBABWE’s cooking oil industry has been forced to import 150 000 tonnes of soya beans to meet national demand after local producers failed to reach target.
The crude soya oil import bill stood at around $119 million in 2016, enough to produce 550 000 tonnes of the commodity.
The 60 000 tonnes produced this year ― up from 36 000 tonnes in 2017 ― not only ranks poorly within the region, but falls far short of the required 340 000 tonnes annually.
The decrease in productivity over the years, on the back of a subdued agricultural sector, has seen the country import from Malawi, South Africa and Zambia.
According to a report on soya beans value chains in Zimbabwe by the Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU), the country has not only been heavily dependent on imports of soyabean, but also crude oil, refined cooking oil and soya meal.
Local production is just enough to meet five percent of the country’s oil needs.
Busisa Moyo, United Refineries Limited chief executive, said production for 2018 reached 60 000 tonnes and the industry will be importing the rest.
“We will be importing 150 000 tonnes of soya beans and 100 000 tonnes of crude oil,” he said.
To increase production and reduce imports, the sector will, during the 2018/2019 agricultural season, increase the hectarage under the crop, which requires $35 million.
“We will work together with willing and capable banks to support farmers to increase the hectarage,” Moyo said.
Challenges faced by the sector include the high cost of doing business.
Major cost drivers include inputs such as fertiliser, seed, herbicides, fuel and labour, all resulting in low yields as farmers cannot adequately procure the inputs.
“The sector and government are working together using various studies conducted by ZEPARU and will be looking for support from the International Finance Corporation and other large institutions to improve hectarage in the next eight years to cover installed capacity of 400 000 tonnes and become self-reliant in terms of edible oil production, stock feeds and other plant protein requirements. This will create a significant number of jobs in agriculture on farms and in manufacturing,” Moyo said.
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