Soybean oil and fractions market in South Africa

Earlier Report Observations

Production of soybean oil and fractions in South Africa increased steadily from 185 thousand tons in 2018 to 323 thousand tons in 2023. This growth was driven by capital investments that added 600 thousand tons of annual crushing capacity over two years, raising total processing capacity to 2.9 million tons. Simultaneously, the area planted with soybeans more than doubled over the past decade, leading to record harvests such as 2.75 million tons in 2023, supported by public-private partnerships.

The domestic market volume for soybean oil rose to a peak of 332 thousand tons in 2020, partly due to increased imports that year. Subsequently, market volume declined to 268 thousand tons in 2023 as import substitution progressed. Imports of soybean oilcake for animal feed dropped sharply from over 900 thousand tons to around 220 thousand tons, reflecting greater self-sufficiency. Demand for oil and oilcake was fueled by the growing middle class's appetite for high-protein foods, which stimulated animal feed production.

Regulatory developments included the introduction of new futures contracts on the JSE to improve price discovery, deregulation of genetically modified traits scheduled for 2025/2026, and new draft labeling regulations requiring front-of-pack warnings for saturated fat and disclosure of GM content. Health claims highlighting soybean oil's cardioprotective properties also influenced consumer preferences.

Production soybean oil and fractions in South Africa

In kind, 2018-2021, K t

Globally, South Africa ranked as the 26th largest producer of soybean oil and fractions between 2018 and 2021.

Top producers of soybean oil and fractions, 2018-2021

World map of production of soybean oil and fractions, 2018-2021

South Africa's production of soybean oil and fractions grew for the third year in a row. In 2021, the country produced 254.6 thousand tons, marking a moderate increase of 8.4% compared to 2020. From 2018 to 2021, production rose by 37.6%, which translates to an average annual growth rate of 11.2%.

Annual dynamics of production in South Africa in kind, 2018-2021, K t

Exports soybean oil and fractions from South Africa

Exports in kind, K t

South Africa's exports of soybean oil and fractions expanded for the second consecutive year. In 2021, exports reached 67.6 thousand tons, up 27.2% from the previous year. Over the 2018-2021 period, exports increased by 20.5%, with a compound annual growth rate of 6.4%. The lowest export volume was recorded in 2019 at 46.1 thousand tons, which represented a decline of 17.8%.

Annual dynamics of product's exports from South Africa in kind, 2018-2021, K t

From 2018 to 2021, Zimbabwe, Zambia, and Botswana were the key export partners for South Africa's soybean oil and fractions in terms of volume. Zimbabwe accounted for 40.1% of exports, Zambia for 26.6%, and Botswana for 13.0%. Together, these three countries made up 79.7% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from South Africa in kind, 2018-2021

Exports in value, M $ US

The market showed significant volatility during this period. Export values reached their peak in 2021 and hit their lowest point in 2019, with a 2.2-fold difference between these years. In 2021, South Africa exported soybean oil and fractions worth 103.1 million US dollars, an increase of 87.1% compared to the previous year. The minimum value was recorded in 2019 at 46.3 million US dollars, reflecting a decline of 15.4%.

Annual dynamics of product's exports from South Africa in value, 2018-2021, M $ US

Between 2018 and 2021, Zimbabwe, Zambia, and Botswana were the main buyers of South Africa's soybean oil and fractions by value. Zimbabwe represented 41.7% of exports, Zambia 25.1%, and Botswana 13.8%. Collectively, these three partners accounted for 80.6% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from South Africa in value, 2018-2021

Imports soybean oil and fractions to South Africa

Imports in kind, K t

In 2021, South Africa imported 98.7 thousand tons of soybean oil and fractions, a decrease of 34.5% from the previous year. Over the 2018-2021 period, imports fell by 30.6%, with a compound annual decline rate of 11.5%. The lowest import volume was in 2019 at 97.6 thousand tons, while the highest was in 2020 at 150.6 thousand tons, which saw an increase of 54.2%.

Annual dynamics of product's imports to South Africa in kind, 2018-2021, K t

From 2018 to 2021, the Netherlands and Argentina were the primary sources for South Africa's imports of soybean oil and fractions by volume, together accounting for 84.2% of total flows. Other countries had relatively minor shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to South Africa in kind, 2018-2021

Imports in value, M $ US

South Africa's imports of soybean oil and fractions by value grew for the second year in a row. In 2021, imports totaled 122.2 million US dollars, up 5.3% from the prior year. Between 2018 and 2021, import value increased by 13.9%, equivalent to an average annual growth rate of 4.4%. The lowest value was recorded in 2019 at 70.0 million US dollars, which marked a decline of 34.7%. The largest increase occurred in 2020, with a rise of 65.9%.

Annual dynamics of product's imports to South Africa in value, 2018-2021, M $ US

Throughout 2018-2021, the Netherlands and Argentina remained the leading sources for South Africa's imports of soybean oil and fractions by value, jointly representing 83.9% of total flows. Other partners each held significantly smaller shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to South Africa in value, 2018-2021