Examining the Profitability of Soya Beans Production in Agri-business: A Case Study of Mumbwa District in Farm Block A

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Date

2025

Author

Tamara Banda, Marvin Kabubi

Publisher

International Journal of Advanced Multidisciplinary Research and Studies

Abstract

This study investigates the profitability of soya bean production in Mumbwa District, Central Province, Zambia, by examining demographic factors, input prices, and market prices as key determinants. Data from 70 respondents reveal that age and farming experience positively influence profitability, with each additional year of experience increasing profitability by 856 units. Older, experienced farmers achieve better financial outcomes due to efficient resource use and market access, while younger farmers show potential for adopting innovative practices if provided with training and support.

Input prices, particularly for fertilizers and transportation, were found to negatively affect profitability. Fertilizer prices showed a strong negative correlation of -0.572, while transportation costs exhibited the strongest impact with a correlation of -0.637. Rising input costs disproportionately affect subsistence farmers, who often lack economies of scale and face higher production costs relative to their output. The study highlights the need for interventions to reduce these costs through subsidies and infrastructure improvements. The findings emphasize the importance of addressing demographic disparities, input price challenges, and market accessibility to improve profitability in soya bean farming. Policy recommendations include targeted training for younger farmers, subsidies to offset input costs, and strategies to stabilize market prices. These measures can enhance the economic sustainability of soya bean production, benefiting farmers and stakeholders in Zambia's agricultural sector.

Keywords

zambiaagri-businesssoya bean