Two major soybean processing plants in the Ashanti Region are on the brink of closure due to a severe shortage of raw materials, exacerbated by large-scale exports despite government-imposed restrictions.

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Vester Oil Mills Limited, located in Kuntanase-Deduako, and Thomas W. Bello Enterprise, operating in the Bosomtwe District and Asokwa Municipality, have significantly downsized their workforce as a result.

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The shortage has had a far-reaching impact on several sectors, especially the poultry, aquaculture, and livestock industries, which rely heavily on soybean products for animal feed.

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During a visit by The Ghanaian Times on Monday, Vester Oil Mills was found operating with only 30 of its regular 150 workers, while Thomas W. Bello Enterprise had reduced its workforce from 120 to 40.

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Speaking to the press, Kwasi Nyamekye, Chief Executive Officer (CEO) of Vester Oil Mills Limited, explained that their primary product is soybean oil, with soya cake as a byproduct for the poultry industry.

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He noted, however, that production had been halted for nearly four months due to the raw material shortage, forcing them to lay off staff.

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Mr. Nyamekye, who also serves as the Zonal Chairman (Ashanti, Bono, Ahafo) of the Association of Ghana Industries (AGI), attributed the soybean shortage to increased exports by foreign traders.

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Thomas Bello, CEO of Thomas W. Bello Enterprise, blamed the situation on what he termed an "unrestrained export push" by Chinese and Indian traders.

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He explained that his company’s primary product is soya cake for the poultry industry, with oil production being a secondary output.

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Mr Bello, who is also the President of the Soya Value Chain Association of Ghana, admitted that the government’s Planting for Food and Jobs Initiative assisted members in producing soyabeans in abundance for the last two years, “but it is a surprise the initiative has taken a nosedive.”

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In his view, there should not have been any shortage, even though the Planting for Food and Jobs Initiative was not as suc­cessful as expected, attributing the current situation to crop exportation, especially by foreigners.

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The two CEOs have, therefore, urged the government to reinforce the ban and particularly monitor the borders, claiming that the produce is being smuggled to neighbouring countries, especially Togo, for export.

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They expressed worry about the ongo­ing exportation despite the ban but were hopeful the government would stem the tide to help sustain the industry.

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The Export and Import Restriction of Soybeans Regulation was passed by Parliament in October 2020 to regulate the export of soyabeans, and it came into effect on December 22, 2020.

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In August 2024, the government again announced a ban on the export of grains, including soyabeans, to ensure food securi­ty in the country.

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The ban was also to ensure the avail­ability of soyabeans for domestic use and to meet local processing requirements for animal production.

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The country’s soyabean production potential stands at an impressive 700,000 tonnes per year, but currently, only about 26 per cent of this potential is being realised.

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