INTERVIEW: US soybean gains ground in African markets; insights from US Soy Export Council Lead in Nigeria

Some African countries have made significant strides in resuming US soybean imports. This resurgence marks a pivotal shift in the region's agricultural landscape, as nations seek to enhance their livestock and aquaculture sectors through high-quality feed options.

Platts, part of S&P Global Commodity Insights, interviewed Foluso Alabi, the US Soy Export Council lead in Nigeria and SSA, who said US soy is gaining more market share in the Sub-Saharan Africa region and shared insights into the market outlook for US soy in the coming years. Following is a Q&A lightly edited for clarity.

Platts: Give us an overview of the animal feed market in Nigeria in the last few years

Foluso Alabi: In Nigeria's livestock industry, the poultry subsector has emerged as the dominant force, with the country producing approximately 6 million mt of animal feed annually. A significant portion of this feed, estimated at around 80%, is utilized for poultry, while aquaculture also accounts for a considerable share. The rapidly growing population in Nigeria poses a significant challenge in meeting the rising demand for food. This situation underscores the urgent need to increase the production of eggs, meat, and overall animal protein.

Currently, Nigeria produces about 1 million metric tons of soybeans, which falls short of the requirements needed to support feed production for the livestock sector, especially considering that poultry alone requires a substantial amount of soybean meal.

In recent years, Nigeria has primarily relied on local supplies for animal feed, even though local production has not been sufficient. This has led to the temporary shutdown of some feed mills due to the unavailability of grains, resulting in a cyclical pattern of operation. The situation has worsened following a disappointing soybean harvest in 2024, prompting the country to open up to international markets for imports. This shift aims to alleviate the local supply shortage and ensure that the livestock industry is not hindered by a lack of essential feed ingredients, thereby supporting the overall growth of the sector.

Platts: As a soy importer in Nigeria, why should I choose US soy?

Foluso Alabi: A recent survey assessing soybean quality across various locations revealed a strong correlation between the production site and the value of the soybeans. Notably, soy from the US is recognized for its superior quality on a global scale. The key attributes contributing to this quality include the amino acid profile, which is crucial for animal nutrition. While many people initially focus on crude protein content, it is the amino acids that animals ultimately utilize. US soybeans boast an exceptional amino acid profile, particularly in terms of lysine and methionine, which are vital for animal growth and health.

Another significant factor is the digestibility of US soy, as it has been shown to provide the highest digestibility rates for various animal species. This means that animals fed with US soybean meal can better absorb and utilize the nutrients, leading to improved health and productivity. Additionally, US soybeans experience less damage during processing compared to those from other regions, which positively impacts the quality of the protein and amino acid profile in the final feed products.

Moreover, US soybeans are distinguished by their low carbon footprint throughout the entire production process, from planting to transportation. This sustainability aspect is a priority for US farmers and agricultural professionals, reflecting a commitment to environmental stewardship that has not been matched by competitors like Brazil or Argentina. The emphasis on sustainability and reduced carbon emissions highlights the US soy industry's leadership in producing high-quality, environmentally friendly soybeans, reinforcing its position in the global market.

Platts: Are you gaining more market share in African markets?

Foluso Alabi: South Africa has recently opened its market to US soy, with imports reaching approximately 55,000 tons of soybean oil, meal, and beans over the past few months. This marks a significant change, as there has been a long hiatus in US soybean imports, with the last occurrence in Nigeria dating back to 2018. The renewed interest in US soy is not limited to South Africa; countries like Senegal and Ghana are also beginning to import US soy products, while Kenya is exploring the possibility of importing US soybean oil. In North Africa, nations such as Morocco, Algeria, Egypt, and Tunisia have consistently relied on US soybeans, meal, and oil for their agricultural needs.

Overall, there is a growing demand for US soy across the African continent, reflecting a broader trend of openness to US agricultural products. This shift is driven not only by trade and economic considerations but also by a strong belief in the quality and reliability of USsoy. As African countries increasingly recognize the value of US soy, there is hope for sustained growth in imports, which will benefit both producers and consumers alike in the region.

Platts: Access to foreign exchange, currency devaluation, and unstable government policies are some of the challenges that importers face in Nigeria. How are you navigating these challenges?

Foluso Alabi: This makes it difficult to prepare invoices because if you prepare one today, you wonder what price you will be selling at when you want to consummate the transaction.

What we did was to look at what is the best window of opportunity. You need to have your ears and eyes on the ground to seize the right opportunity. You need to be aware of the optimal timing when the currency is favorable and prices are competitive. This awareness allows importers and eventual off-takers to consider buying an imported commodity over locally available options.