Benin implements soybean export ban to boost local processing industry

BENIN – Benin, a leading producer of soybeans in West Africa, has enacted a ban on the export of unprocessed soybeans, effective April 1, 2024, to enhance local processing capabilities and add value to the nation’s agricultural sector.

The Council of Ministers announced that the purchase price for soybeans during the 2024/2025 marketing campaign, which commenced on December 5, 2024, has been set at 275 CFA francs (US$0.44) per kilogram, a slight increase from 270 CFA francs (US$0.43) the previous year.

The said campaign, which will end in April 2025, will be the first marked by the entry into force of the ban on exports of oilseeds to the international market. This measure announced by the government 2 years ago aims to make the raw material available for local processing and improve the creation of added value in the sector.

Authorities have expressed concerns about the potential for illegal exports to neighboring countries, which could undermine the objectives of the ban. A government press release emphasized that such activities are detrimental to the sector’s growth and industrialization efforts.

“Such a situation is detrimental to the growth of the sector, to the industrialisation efforts underway in our country and to the creation of the many jobs that result from it,”  stated the press release.  

Soybean production in Benin has been on an upward trajectory over the past five years.

According to data from the Directorate of Agricultural Statistics (DSA), the soybean harvest increased by an average of 15.17% per year between 2019 and 2023, rising from 257,000 tonnes to over 520,900 tonnes.

The government’s focus on local processing is exemplified by the establishment of facilities like Benin Organics within the Glo-Djigbé Industrial Zone (GDIZ).

Launched in March 2023, this plant aims to process more than 30,000 tonnes of organic soybeans annually, supplied by over 25,000 local producers. The facility plans to double its production capacity by 2024, producing crude soybean oil, degummed soybean oil, de-oiled meal, and lecithin, all certified to international standards.

In addition, the export ban is expected to stimulate the local economy by encouraging the establishment of processing industries, which can create employment opportunities and increase the value-added output of the agricultural sector.

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