Farmers need to continue boosting blueberry production

Trade Focus

Allan Majuru

ZIMBABWE has been experiencing rapid growth in the production of horticultural produce earmarked for regional and international markets.

In recent years, the country has been in the headlines for having the fastest-growing blueberry production, with export figures of the crop on an upward trend.

Figures show that Zimbabwe’s blueberry exports grew by 85 percent from US$6,3 million in 2021 to US$11,7 million in 2022, despite a 1 percent decline in global trade of the product.

Growth of the blueberry subsector has also been partly driven by support from the Government.

Over the past few years, President Mnangagwa has focused on improving agricultural infrastructure, including the construction of dams and irrigation systems.

These efforts aim to provide reliable water sources for horticultural activities, especially in areas prone to drought.

The Second Republic has pushed for policies that support the horticulture sector, making it more attractive and profitable for local farmers.

Further, the national trade development and promotion agency, ZimTrade, has intensified efforts to open new markets for local horticultural products by creating direct linkages between local producers and leading buyers across the world. In addition to the Government’s support towards boosting production, the country’s climatic conditions make it possible to produce a better-quality fruit than what is grown in other countries.

Zimbabwe has suitable climate for blueberry farming, with temperatures ranging from 15 to 25 degrees Celsius.

The country also has adequate rainfall and soil conditions that support blueberry farming.

Further, Zimbabwe’s location in the Southern African region provides an opportunity for exporting blueberries to other countries in the region and beyond. With the current support from the Government and related institutions, local farmers need to boost production of blueberries, as buyers are considering Zimbabwe as a prime supplier of top-quality produce.

Global market growth analysis

Peru has consistently been the largest exporter of fresh cranberries, bilberries and other fruits of the genus Vaccinium since 2019, having overtaken Chile.

The South American country contributes approximately 30 percent of the global trade, with a record revenue of US$1,35 billion in 2022.

Its production actually grew 12 percent for 2021-2022. Major export destinations are the United States of America (US$703 million), Netherlands (US$309 million) and China (US$138 million).Experts, however, noted a sharp decline in blueberry exports from Peru in 2023, which had a huge impact on the global market.

Production volumes declined due to abnormally high air temperatures, especially during blueberry flowering.

The El Niño weather phenomenon led to excessive stress on blueberry plantations, which is reflected in lower yields.

The Netherlands is now the second-largest exporter of blueberries with a 11,6 percent market share after Peru suffered a 2 percent decline in growth for the 2021-2022 period.

The Dutch agricultural sector is known for its innovation and adoption of advanced technologies.

Also, the Netherlands’ proximity and access to the European Union gives it a comparative advantage over producers from the Americas.

On the other hand, Chile’s blueberry sector has shown signs of distress over the five years under review.

In 2022, the country contributed 10,7 percent to global blueberry exports.

However, there was a 10 percent decline in growth.

Growth is expected to remain subdued this season due to the ongoing varietal replacement that is taking place within the Chilean blueberry industry.

Reports indicate that growers have uprooted 1 164 hectares of old varieties with lower productivity and poor post-harvest life and have replaced them with 607 hectares of new varieties.

In Africa, Morocco and South Africa are the largest exporters of blueberries on the continent, with 6,15 percent and 3,19 percent market share, respectively.

Both countries suffered a decline in exports during the year ending December 2022. Morocco experienced a cold snap at the end of 2022, which severely impacted several crops, including blueberries, which have been missing from the shelves and whose prices have reached unprecedented levels.

Zimbabwean export analysis

Zimbabwe is the 22nd largest exporter of blueberries, having a 0,25 percent global market share. The Berries Association of Zimbabwe estimated that approximately 570ha were under production in 2023, with 6 500 tonnes exported.

The increase in exports was from maturing orchards rather than new production. Despite the increase in the cost of production and decrease in returns per kilogramme, Zimbabwe has thrived in the export market.

The main challenges experienced in the 2022 farming season included the mandatory retention of export proceeds and inconsistencies in power supply.

Access to finance remains one of the major impediments to growth in the sector. The obtaining market conditions make it increasingly tough to borrow from banks as the interest rates are counterproductive.

Competitiveness of Zim’s blueberry exports

Zimbabwe has been expanding its export market for blueberries, particularly targeting European and Middle Eastern countries.

Access to these lucrative markets has boosted the competitiveness of local blueberries by increasing their visibility and demand on an international scale.

Zimbabwe’s temperate climate and fertile soils provide ideal conditions for blueberry cultivation.

The country’s diverse agroecological zones allow for year-round production, giving Zimbabwe a competitive edge.

Zimbabwe’s blueberry exports are negatively affected by high transportation costs, which reduce their competitiveness. There is heavy reliance on air freight for fresh produce and the use of sea freight helps exporters increase their profit margin.

However, over-reliance on the port of Durban makes it less competitive.

The road leg from Zimbabwe to Durban is long and time-consuming, adding to the overall costs.

To meet export standards, growers and exporters are heavily investing in on-farm and near-farm cold chain infrastructure to meet food safety and quality requirements to reduce losses.

However, the capital requirements are not readily met by the Zimbabwean financial market.  Global GAP certification plays a crucial role in enhancing the competitiveness of horticulture exports from Zimbabwe by ensuring compliance with international standards, improving market access, enhancing reputation, accessing premium markets, mitigating risks and promoting sustainable agriculture practices. The certification, however, comes at a cost and reduces the export margins for local producers.

While Zimbabwe has access to several markets, expanding into new ones could provide further growth opportunities. This would require strategic planning and investment in marketing and branding efforts by ZimTrade in partnership with the exporters. Changes in climate patterns could impact blueberry production negatively. However, this also presents an opportunity for research into climate-resilient varieties.

Allan Majuru is the chief executive officer of ZimTrade.