How much is the Trump trade war helping African consumers of soybean?

According to the IITA, Africa imports about 1.5 million tons of soybean a year.  Let’s say that Trump’s trade war with China has been the reason that soybean prices have fallen from $10 a bushel to $7.50 a bushel over the last year or two.  There are 36 bushels in a ton so African countries are saving $2.5 x 54 m bushels = $135 million each year. Not enough to change consumption or nutrition very much unless there is a huge import surge. of course, we must also remember that soybean has been a rapidly growing crop in many production regions in Africa, and a price slump could slow that growth, and the consequently the externalities that come from developing the export market and the processing market.

About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
This entry was posted in Burkina Faso, International trade issues. Bookmark the permalink.

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