China’s decision to impose a 25 per cent levy on US soybeans could pose a risk to US farmers. China is projected to import 103 million metric tonnes of soybeans in the next marketing year that starts on September. According to Kenya’s Ministry of Agriculture demand for soya is estimated at between 50,000 and 70,000 metric tonnes a year while production was at 10,000 tonnes in 2017. Despite the demand and the fact that soybean grows well in Kenya we don’t plant it allot. This is the net Gold as US farmers are cut out. Credits Business Daily. Below is it in full
Inaweza mea wapi? This is a good opportunity
Soya beans Embu western Nyanza… Basically Any place kunanyeshaga kiasi and ni 45 to 60 days to full maturity
Soy is so much subsidized in the US that it’s cost of production near nil. Next the farming there is so mechanized, that they produce the highest quality seeds that is sort in China. Now put the African type of jembe production and waiting for the heavens to feel pity on us for some little rain???.. Come on! The only people able to try and fill in the shortage are Brazilians and maybe the Russians.
It’s all a financial markets play. Money distribution.
Think local, not global. The data provided by the ministry of Agriculture shows a local deficit of over 50,000 metric tonnes. Satisfy that demand first before thinking about exportation.
Ever traded soybean futures?
something worth shocking i read from your pdf is Triple Super phosphate fertilizer costs $150 in Europe, ferking $800 in kenya and ooh my God another ferking $900 in rwanda . Right here is what i have been complaining . The cost of input for agriculture in africa slows down speedy growth.
As @Deorro calls me that i have a minute brain, this brain has sent me to do some research … at this point ill pick a fertilizer producing company called http://www.bohraindustries.com/images/bohra-industries.png located in india . I dug deep into the financials and paid a little bit attention on their asset base and what i discovered is amazing ;
The company total assets is 1,755,800,000 indian rupee( this includes all the machines , cash at bank and vehicles… )= ksh 2,516,839,423.17!!!
begs me to ask a question: how many saccos in this country can combine resources to set up similar factory with a capital base of 2.5 billion that produces fertilizer that reads “MADE IN KENYA”!!!
Foolish us find solace and peace in importing staff with middle men making a killing($800-$150= $650) . A fertilizer in Europe cost $150, hapa kenya goes 8 times more, do you expect farming to break even. Saccos and private sector should tap this opportunity .I know ,i know just like sugar barons there are fertilizers barons who will either adulterate or weed off anything that threatens their niche , but this is where the govt has to come in and encourage this local growth.
Weed out these barons by striffling their necks and their network will collapse.Whoever wants the financial books ya Super phosphate manufacturing company in India hii hapa
cc @Okwonkwo ,
That was my work at FuturesFirst(K). Did Wheat too.
muTeso kumbe unawesa fikiria hiyo yote
I never quite understand why talented traders work for companies instead of being freelancers. Unless you are looking for capital to kickstart your career.
if you know what i do for life … wacha tu :D:D:D:D
My friend nilisoma degree haiko marketable in Kenya. I had the option of couch potatoing or picking a job that needed aptitude. It is fortunate that even after the job I gained skills that feed me. Now I can’t blame joblessness for anything I get into.
Yeah. You were there for the experience and perhaps capital. Would you join a local trading firm now?? I mean, if a firm like Goldman etc hired you, that is a different case, but a local tiny firm, would you? Ni degree gani hiyo kwanza
Degree nitakuambia inbox. Goldman is quite a dream. I interviewed for Bunge after FFK. Didn’t make it. Local firm’s tutasumbuana tu. I run my own desk and it’s been the best thing thus far.
Farm inputs is our own undoing
:oops: kweli
Actually everything in the farm inputs… The equipments that could fasten and reduce capital intake, is 5times what the European and Americans cost them. The cartels eat everywhere and anywhere…
So commodity futures is a viable endeavour in Kenya? Interesting… I’d like to learn more if you’re open to sharing the knowledge!
I’m not sure we should use the phrase ‘cartels’…to me it seems like we use it to cover up for failure to plan and lack of strategy. Si eti GoK has put in place support for farming and watu wanapotosha resources; ki ukweli they have not put anything. We have talked about Big 4, lakini gova haisaidii wakulima to access affordable credit, haijapunguza tax on farm implements (machines, irrigation systems, greenhouses, etc), fertiliser and agrochemicals are overpriced vile @Abba amesema, and of course, the cost of fuel/elec is ridiculous. Without a major change in the way we do things, we can forget these lofty dreams of large scale agriculture benefiting the common man.