The ‘Nigeria: NOW Conference’ was recently hosted in Lagos by the U.S. Soybean Export Council (USSEC), bringing together leading U.S. soybean industry leaders and exporters with key industry leaders from the Nigerian soybean value chain.
On the sidelines of the event, Kevin Roepke, Regional Director – South Asia and Sub-Saharan Africa at USSEC and Robert Alpers, Director of the United Soybean Board, had an interview with JOSEPHINE OKOJIE-OKEIYI. They spoke about the Nigeria-U.S. soybean trade and USSEC’s support for the country’s feed industry. Excerpts:
Can you tell us about the Soy Excellence Centre (SEC) and how it is helping solve Nigerians’ protein needs?
Roepke: The Soy Excellence Center is now in its fifth year here in Nigeria. It’s a global initiative, predominantly supported and funded by U.S. farmers and their state associations, through the U.S. government. It is a workforce training initiative focusing on entry and mid-career level professionals in protein enterprises. In Nigeria, we’ve developed various learning tracks across aquaculture, feed milling, poultry and swine. We are also looking to expand our offerings to increase efficiencies, share knowledge, and ultimately improve the protein enterprises here in Nigeria.
To date, we’ve put over 4,000 Nigerians in our SEC program. It has become a hallmark programme for us over the past five years as we continue this journey of collaboration and partnership with Nigeria’s industry.
We also have a Regional Advisory Council (RAC), which is a group of industry professionals from Nigeria. The RAC advises us on how we can tailor our curriculum to the needs of the market and the areas we should focus on the most.
Through the SEC, we focus on building a community of lifelong learners. We don’t want the participants to end their journey with graduation. We aim to encourage continuous learning as they progress in their careers to become executives and decision-makers.
Soybeans are one of the most affordable sources of protein. We’ve seen 40 percent food inflation in Nigeria decline to 21.7 percent. At the same time, we’ve also seen the poultry industry begin to rebound.
We think that’s a positive sign, with around 75 percent recovered compared to its peak. The SEC is proud to play a role in helping the Nigerian poultry sector develop and grow, ultimately leading to increased poultry consumption in the long term.
Nigeria consumes just over 2 kilograms of poultry per capita, which is basically one bird per year per person. When compared to other countries consuming 40 to 50 kilograms or more, there’s tremendous scope and need for increased poultry consumption — especially when you compare it to India’s overall protein efficiency. This is where the two programmes that USSEC has operationalized in Nigeria come together.
Apart from the SEC, our other key USSEC initiative in Nigeria is the Right to Protein (RTP) campaign. RTP raises awareness and advocates for increased protein consumption, emphasizing the societal benefits, particularly for pregnant women and children, including cognitive development, muscle development, and immune system support.
We’ve seen some illnesses in Nigeria over the years, and we believe that protein can play a pivotal role in strengthening the immune system, especially for women, children, and the elderly. Soybeans have a critical role to play in all of this.
What’s great about the Right to Protein is that it’s also protein agnostic. Soybeans have a unique position in the protein supply chain. It is the primary component of feed for the poultry sector and can also be directly consumed by individuals. So, whether you’re a vegetarian or vegan or an animal protein lover, soy plays a vital role for everybody.
Nigeria is now increasing its soybean imports from the U.S. What do you think is driving this?
Roepke: We have seen two vessels of U.S. soybeans coming to Nigeria this marketing year. The primary drivers of this have been the rebuilding or rebound of the Nigerian poultry industry, as well as increased demand for soybean oil and vegetable oil.
As incomes and disposable incomes rise, one of the primary things that consumers do in response is to add more protein to their diets. That can take many forms, but in many countries globally, specifically Nigeria, the first thing that they do is to demand more poultry, so adding chicken meat and eggs to their diets in addition to using more vegetable oil for frying, crispy chicken and dressings.
Apart from the Trump tariffs, are there other issues you think might impact global soybean trade?
Roepke: We strongly believe in free and fair trade. We understand that the concept of comparative advantage has elevated more people out of poverty than anything in human history. Our message is that the U.S. is a consistent and reliable supplier of soybeans and will remain so for the foreseeable future.
Driven by the investments of the U.S. soybean farmers, largely through the United Soybean Board and the check-off system, along with the technology and their dedication, U.S. Soy will remain a very reliable supplier of soybeans for the world.
As an importer of soybeans in Nigeria, why should I import U.S. soybeans?
Alpers: We have the highest quality soybeans in the world. More importantly, we can provide a consistent supply. We have soybeans available for 12 months. Some of our competitors don’t have the infrastructure that we have and I think that’s going to play a big, big role.
Roepke: The U.S. has a very unique advantage: a consistent and large supply, which reduces the variability that a feed mill or a poultry operator must account for in feed formulation.
It also reduces risks related to shrinkage (moisture loss) and cash flow challenges.
If you have to carry your entire annual supply of soybeans at 35 percent interest, that’s a significant tie-up of working capital. By accessing your national market, you can spread out purchases and minimize that financial burden.
In recent years, drastic weather changes have significantly impacted production yields and added pressure to exportable supplies, posing a food security challenge on several occasions. How are the U.S. Soybean farmers adapting to the changing climate?
Alpers: I think part of our adaptation comes from our seed breeding programmes. We’ve seen shifts in where our crops are grown. Soybeans are now being grown further north because the climate has warmed up. Plant breeders are helping us with this. As the climate changes and our needs change, breeders adapt and develop seeds for those changing conditions.
Foreign exchange volatility and policy inconsistency are some of the challenges that importers face in Nigeria. How are you navigating these challenges?
Roepke: We’ve seen currency issues in many countries around the world. Food security and nutrition security should be prioritized and emphasized when determining foreign currency allocations. Everyone should have access to well-nourished meals. The human capital of any country begins with what its population consumes. It’s a smart investment to prioritize and emphasize nutrition security from a national development perspective.
What would be your major takeaways following the interactions and listening to stakeholders in Nigeria?
Alpers: Overall, it looks like there are very positive developments on the horizon. Nigeria is bouncing back, and I’m enthusiastic that we’ll be part of supporting Nigeria’s protein needs.
As Nigeria’s population grows and gains more purchasing power for protein, I believe we will be able to fill the gap as demand continues to rise. I think the outlook is very positive and long-term.
Roepke: Broadly speaking, from my five years of coming to Nigeria, my biggest takeaway is that the people are incredible to work with. They’re extremely optimistic – they’re eternally optimistic, and I love spending time with them.
Nigerians are resilient and creative, and these qualities combine to make Nigeria a country you should bet on. Nigeria has a very positive future because it has the human capital that is so unique and exciting to be around.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp