FAS forecasts 27% growth in South African oilseed production

South Africa has increased its soybean acreage eightfold over the past 20 years, from 135,000 to 1.2 million hectares in the 2023/24 season. Soybeans now account for more than 25% of the planted area, up from 4% 20 years ago, World Grain reports, citing a new report from the US Foreign Agricultural Service (FAS USDA).

Oilseeds are important rotational crops in South Africa, with soybeans alternating with maize and canola typically alternating with wheat.

FAS estimated South Africa’s oilseed production in the current season to increase by 27% to 3.36 million tons. The surge is being driven by growing farmer interest in using soybeans as a rotation crop alongside maize (due to nitrogen fixation), as well as growing demand for beans due to massive investment in oilseed processing plants and the introduction of GMO soybeans.

“Stable domestic demand for oilseed processing, combined with potential export markets, should motivate producers to maintain acreage under these crops,” FAS said.

Most of the soybeans, sunflower seeds and canola produced in the region are processed. Total oilseed processing capacity in the region is estimated at 2.7 million tons. A record 2.6 million tons of oilseeds were processed in 2022/23, and the same level of processing is expected in 2023/24 and 2024/25.

Oilseed exports are projected to recover to around 380,000 tons in 2024/25 due to increased production after oilseed exports fell by more than 90 percent in the 2023/24 season.

“In the past, South Africa’s oilseed trade has been generally limited as most of the production was destined for local processing, but as growth in local soybean and rapeseed production has outstripped processing capacity, exports will reach historically high levels,” the department said.

Overall, South Africa’s agricultural sector is extremely diverse compared to other countries in sub-Saharan Africa. This diversity is due to the climate, which ranges from dry and arid to Mediterranean in the west and subtropical on the east coast. Compared to the rest of Africa, the country has the most modern and productive agricultural economy.

Tags: soybean