15 December 2023
The South African soybean industry reached an important milestone when the first shipload of soybeans for the Chinese market was successfully delivered.
The shipment was unloaded at Guangzhou port in mid-November, with two more shipments on the way. In total, 147 000 tons will be delivered to China during this marketing year.
A trade protocol between China and South Africa, signed in June 2022, paved the way for this achievement. The South African Cereals and Oilseeds Trade Association (Sacota) said in its latest newsletter that the milestone reflects the growth potential in the cereal and oilseed sector when the government and the private sector collaborate to find markets.
China, the world’s largest consumer and importer of soybeans, is expected to import about 100 million tons this year. South Africa joins 11 other nations that have supplied soybeans to China in the past. The major suppliers are Brazil (60%), the US (32%) and Argentina (4%). While these countries are the largest international exporters of soybeans, Sacota says there is still ample room for smaller exporters like South Africa.
Access to the Chinese market is crucial for the South African industry to find markets for its surplus stock. According to Sacota director Dr André van der Vyver, the expectation is to export nearly 600 000 tons in this marketing year.
Other deep-sea exports include 267 000 tons to Malaysia (nine shipments), 55 000 tons to Vietnam (two shipments), 55 000 tons to Bangladesh (one shipment), 30 000 tons to Portugal (one shipment) and 33 000 tons to Thailand (one shipment). An additional 15 000 tons are exported to African countries. This year witnessed a record harvest of 2,755 million tons, a 24% increase from the previous year.
Dr Werner Rossouw, director of Silostrat, says 510 000 tons of soybeans were exported between the start of the marketing year in March and the end of October. “This is the largest export programme ever, with four months remaining in the marketing year. The most exported in the past was 278 000 tons in the 2022/23 marketing year.”
According to Sacota, the growth in the soybean industry is due to technological advancements, new cultivars and soybean cultivation in regions where the crop was not grown before. “An important reason for the remarkable expansion is that soybeans can currently be grown more profitably than most other crops. Growth is expected to continue, albeit at a slower pace,” it says.
Profitability calculations
Grain SA profitability calculations in October showed, for example, that it would be more advantageous to plant soybeans than maize in North West this season. Without reasonable yields, it can be difficult to grow maize profitably there.
Based on a yield target of 4,5 tons/ha for maize and a Safex price of R4 040/ton (July 2024), as well as variable costs of R13 889/ha and fixed costs of R2 690/ha, a net margin of -R168/ha is projected for maize.
Based on a yield of 2 tons/ha and a Safex price of R8 448/ton (July 2024), as well as variable costs of R9 474/ha and fixed costs of R1 865/ha, the net margin for soybeans will be R4 893/ha.
Meanwhile, the port of East London can play an increasingly important role in the export of grain and oilseeds. The port’s first shipment of soybeans departed to Malaysia on September 5.
Naliya Stamper, terminal manager at the port, revealed the plans during Sacota’s annual meeting. She said there is a silo capacity of 66 000 tons and 5 000 tons can be loaded per day. There are no delays, and the port is geographically well-positioned for the export of white maize and soybeans.
Ameropa, the soybean exporter, has already sent a second shipment from East London to Malaysia and a third shipment is scheduled for this month. The shipments range from 30 000 tons to 33 000 tons, and exports from East London represent about 18% of the season’s soybean exports.
Earlier this year, three ships were loaded with yellow maize for export and two ships with imported wheat were unloaded.
