The “SoyLink” coalition, a partnership of organizations implementing two complementary projects known as SoPRI and Soya-Seed across the soybean value chain, is actively executing joint initiatives. In this coalition, the Sasakawa Africa Association (SAA) serves as the coordinator, working in collaboration with Green Agro Solution (GAS) and Farm Radio International (FRI).
Financed by AGRA and coordinated by the Oromia Region Agriculture Bureau, the project aims to increase soybean productivity, enhance farmers’ income, and increase domestic production to meet the raw material demands of local industries, according to Dr. Fentahun Mengistu, Country Director of the Sasakawa Africa Association in Ethiopia. The Country Director noted that the projects are anchored on sustainable agriculture, specifically regenerative agriculture. The implementation follows the entire value chain by focusing on three core pillars: access to seeds, technology, and inputs; market linkages; and the integration of extension services and credit facilities.
Ethiopia spends nearly $500 million annually to import edible oil. In 2020, the country spent $451 million to import around 700,000 metric tons of refined and crude oil, severely straining its foreign exchange reserves. According to Dr. Fentahun, this dependency stems from the fact that domestic soybean production accounts for less than 2% of local demand, leaving 98% of the country’s needs to be met by imported palm oil. To address this crisis, the Ministry of Agriculture designed the Oil Seeds and Animal Feed Production Flagship Program (OSAP) to substitute imports by boosting domestic production of soybeans and other oilseeds. Currently, while there are numerous oil and feed processing factories, including those within agro industrial parks, they are operating at less than 50% of their total capacity due to a shortage of raw materials caused by low soybean production and poor productivity. Data from 2024 indicates that the land covered by soybeans was only around 90,000 hectares, yielding just 300,000 metric tons. This reflects a severe supply deficit of inputs required to produce adequate edible oil and animal feed.
Dr. Fentahun highlighted several bottlenecks hindering adequate soybean production, including the supply of improved seeds, low land coverage, and low productivity. Currently, the dominant variety used for seed is “Clark,” a variety introduced over 50 years ago, which has very low productivity, averaging no more than 15 quintals per hectare. He pointed out that although research centers have released various improved varieties capable of yielding over 30 quintals per hectare, they have not been widely adopted or popularized among farmers. A primary challenge remains low land coverage and minimal production volumes, with productivity standing at just 1.2 tons per hectare, which is very low compared to cereals (2.9 tons) and pulses (1.8 tons). In the 2021/22 cropping season, oilseeds accounted for only 5% of cultivated land and contributed just 2.2% to total crop production.
The Country Director added that the entire value chain, including input supply, remains weak. For instance, only a few private institutions multiply and supply seeds, and their production capacity is highly limited. Compounding this is the challenge of linking production with the market; the lack of sufficient supply forces factories to process well below their capacity. On the other hand, when farmers are consulted, they express a willingness to produce but question who will buy their yield.
He emphasized that, unlike teff or wheat, soybeans are not widely consumed directly as food if not sold immediately, exposing producers to heavy financial losses.
Characterizing the value chain as generally weak, Dr. Fentahun stated that AGRA, alongside its partners, is working to accelerate soybean development by tackling complex issues such as weak seed systems, low production volumes, poor market linkages, and lack of credit access. Soybeans offer numerous benefits, including their utilization for edible oil, animal feed, and various food preparations. Additionally, soybeans contribute significantly to soil fertility, including mitigating soil acidity. Dr. Fentahun noted that the projects are currently operating in districts within the Jimma and Bunno-Bedele Zones, where farming systems have historically depended heavily on maize mono cropping. Without crop rotation, the soil in these areas has become highly acidic, leading to declining yields and posing a severe food security risk should maize production fail.
Because the projects follow sustainable or regenerative agricultural practices, farmers have begun rotating their maize plots with soybeans. Dr. Fentahun explained that by rotating maize with soybeans, farmers can gradually reduce their reliance on synthetic nitrogen fertilizers, making soybeans a vital solution for long-term land sustainability, soil health improvement, and the reduction of soil acidity.
Acknowledging that many farmers are unfamiliar with soybeans, Dr. Fentahun stated that the project works on raising awareness, demonstrating that soybeans can be consumed as food, processed into milk, and supplied to the market.
Since traditional soybean threshing is labor-intensive and time-consuming, the Sasakawa Africa Association organized local youth and provided small-scale multi-crop threshing machines to offer threshing services to farmers. This marks the first time such small-scale soybean threshing machinery has been introduced domestically, achieved through SAA’s partnership with a private sector manufacturer.
To address the shortage of seed supply, SAA has established enterprises that multiply and distribute improved soybean seeds released by research centers to farmers. Overall, the initiative engages youth in seed supply, threshing services, and other agribusiness activities. Furthermore, the project has targeted women farmers, providing training on soybean food preparation to encourage household consumption.
Dr. Fentahun explained that the project connects farmers to markets through a dual approach: first, by linking them with input suppliers (input market), and second, by connecting them with aggregators and off-takers (output market). Access to finance is also facilitated; through the partnership with Lersha, where farmers have been linked with Sinqee Bank to access credit for purchasing seeds.
Additionally, the project works to link farmers directly with oil processing factories, enabling factories to source raw materials straight from the producers without intermediaries. This integrated approach ensures farmers gain access to credit, improved seeds, and a direct channel to supply factories. Dr. Fentahun noted that soybeans can be widely grown across many parts of Ethiopia, with the western and southern regions—particularly areas in Amhara, Benishangul-Gumuz, and Oromia—being highly suitable for production.
The AGRA funded projects are currently operating in five districts and 50 kebeles across the Bunno-Bedele and Jimma Zones of the Oromia Region. This footprint serves as a model, with plans underway to scale the approach to other regions in collaboration with various stakeholders Soybeans are highly profitable for smallholders, generating an average income of $1,300 per hectare, which represents a superior alternative compared to Niger seed ($546) and groundnut ($359). Achieving even half of the national import substitution target through soybean production could generate $1.5 billion income for 4.7 million smallholder farmers.
The primary targets of the projects are clear and measurable, aiming to directly benefit 120,000 people. Of these, 95% are smallholder farmers, while the remaining 5% are engaged in commercial agriculture. Demonstrating a strong commitment to gender equality, 45% of the total beneficiaries (approximately 54,000) are women. This focus not only secures household food security but also empowers women to participate in production and marketing decisions.
The projects are being executed in Kersa and Nedi Gibe Districts in the Jimma Zone, and Bedele, Dedessa, and Gechi Districts in the Bunno-Bedele Zone. In total, the development work spans 50 kebeles, with 10 kebeles specifically selected in each district/woreda to implement cluster farming. These clusters serve as learning sites to bring other farmers into the project fold. This layout establishes a foundation to reach at least 150,000 smallholder farmers, increase productivity from 1.6 tons to 2.5 tons per hectare, put 20,000 hectares of land under soybean cultivation, and produce 50,000 metric tons of yield. The selection criteria for participating farmers are outcome-oriented. According to Dr. Fentahun, to join the project, a farmer must be willing to allocate at least 0.37 hectares of suitable land for soybean cultivation, possess the capacity to acquire basic inputs, and be ready to adopt new agronomic practices.
Participating farmers receive extensive training to utilize improved, climate resilient varieties such as Dedessa, Keta, and SCS-1, aiming to increase their productivity by 50%. This process is executed in coordination with the Jimma and Bunno-Bedele Agricultural Research Centers, the Oromia Seed Enterprise, and Menagesha Biotech Industry. This collaborative framework ensures farmers receive certified seed, biofertilizers, and soil treatment chemicals locally, which is critical to achieving the target of producing 2,250 metric tons of certified soybean seed.
“Although Ethiopia has significant shortages of edible oil and animal feed, it should be utilizing its untapped potential to meet the needs of its citizens. However, according to the information available so far, only about 3% of the country’s total edible oil demand is met through domestic production, while the remaining 97% is supplied through imports. This clearly demonstrates the level of attention the sector requires. Moreover, this situation can be considered one of the major contributors to the country’s shortage of foreign currency.
To resolve post-harvest market linkage challenges, the projects have established an efficient system. The value chain model operates through the partner organization Green Agro Solution (GAS), which connects farmers with processors and markets. Lersha utilizes “Lersha”, a localized digital platform to facilitate access to tractor rentals, financial loans, and market linkages.
To maintain product quality, mechanized threshers and improved, pest-resistant hermetic storage bags (PICS bags) have been distributed across project areas. The Country Director noted that by linking farmers with Sinqee Bank and the Warehouse Receipt System (WRS), input and output financing is made accessible, helping smallholders transition into structured market participation.
Furthermore, Farm Radio International (FRI) facilitates knowledge transfer by broadcasting agricultural information through local radio stations in languages understood by the communities. This integrated approach minimizes productivity shortfalls and post-harvest losses, helping farmers secure fair prices for their produce and paving the way for sustainable market linkages through direct relationships with oil factories.
The initiative also aims to improve local soil acidity levels by 20%. In post-harvest management, small and large-capacity threshers—including a unique 12-horsepower thresher introduced in partnership with the private sector—have been deployed. These interventions significantly reduce losses, increase efficiency, create jobs, and reduce the physical labor burden on farmers. Specific strategies have also been designed for gender equality and youth engagement. Capacity building initiatives target female farmers, labor-reducing technologies are introduced, and access to inputs, finance, and markets is being improved. Youth are engaged not only in primary production but also in agribusiness and service provision, extending the focus beyond harvesting to nutrition, food preparation, and long-term agricultural commerce. Sustainability is pursued by strengthening local agricultural extension systems, establishing rural enterprises, and strengthening business to-business (B2B) linkages. Connecting farmers with input suppliers and utilizing Farmer Learning Production Clusters (FLPCs) for experience sharing are critical steps toward future self-reliance. While currently confined to the two zones, plans are in place to expand the model to neighboring zones over the next two years and eventually scale it to other soybean producing regions across the nation.
In conclusion, although these projects are making tangible contributions toward alleviating Ethiopia’s edible oil and animal feed shortages, Dr. Fentahun stressed that certain issues require policy intervention. He noted that clear policy direction is needed to balance the tension between supplying soybeans to domestic factories versus exporting them for immediate foreign currency. Because many domestic companies still lack sufficient oil-refining capacity, strong policy support and incentives are required to align production and processing with national food security targets.
Government support remains essential to harmonize production, processing, and market incentives with national oil and feed security goals. Overall, the actions of the coalition in improving seed supply, increasing productivity, and forging strong market linkages serve as a successful model for Ethiopia’s agricultural transformation. If these efforts are sustained and backed by robust policy support, the country can significantly reduce the foreign currency spent on edible oil imports, meet domestic industry needs, and, most importantly, uplift the livelihoods of smallholder farmers
