The Sunday Mail
Trade Focus Allan Majuru
Over the past few weeks there has been rising interest from smallholder farmers to export meat, with some actively seeking to consolidate operations to meet expected demand.
Meat exports remain untapped despite potential in areas such as Matabeleland South, Masvingo and Mashonaland West.
There are several meat export opportunities ranging from poultry meat, beef, goat meat, fish and exotic meat such as crocodile.
According to Zimstat, local exports of fish, meat and edible meat offals amounted to US$8,4 million in 2019, which is markedly lower than previous exports to lucrative European markets, particularly the United Kingdom, Germany and Netherlands.
The United Nation’s Africa Renewal magazine reports that Zimbabwe’s beef cattle herd “topped 1,4 million and raked in about US$50 million yearly from exports to the European market” at its peak.
The report reveals that “for most beef-producing provinces of Zimbabwe, commercial beef sales accounted for about 80 percent of income”.
To get back to these high figures, there is need to develop the entire value chain, focusing on capacity development and financing.
Value addition to raw meat, as well as processing into products like tinned meat, biltong and cured beef can increase earnings from the sector.
For producers, they will need to consider product diversification so that they have more offerings for their export markets.
Currently, the major market for local meat is Zambia, which imported products worth US$5,1 million last year.
Meat exports to Zambia comprised mostly of fish.
Trade Map estimates that the neighbouring country took in 79 percent of the country’s fish exports.
Mozambique is second-biggest meat export market, having imported US$1,2 million from Zimbabwe in 2019.
Last year, exports of meat and edible meat offals to Mozambique were US$1,1 million, while fish exports were US$100 000.
African countries offer opportunities for Zimbabwean meat and local producers can leverage on existing multilateral trade agreements under the Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC).
According to Trade Map, African countries imported meat worth US$5 billion in 2019.
The major African importers last year were Egypt (US$2,1 billion), South Africa (US$587 million), Angola (US$375 million), Ghana (US$303 million) and Democratic Republic of Congo (US$181 million).
With the coming on board of AfCFTA, it is important that Zimbabwean companies target the African market.
Beef
One of the low-hanging fruits for those planning to venture into meat exports is beef, which traditionally has been a top export product from the sector.
According to Trade Map, global beef imports stood at US$50 billion in 2019, with major importers being United States of America (US$3,5 billion) and Netherlands (US$3,4 billion).
As Netherlands is currently the largest importer of horticultural produce from Zimbabwe, local beef producers can ride on this success to increase exports of beef into Europe.
African countries that are leading in beef imports as of 2019 and offering opportunities for Zimbabwe are Egypt (US$1,5 billion), Algeria (US$74 million) and Angola (US$45 million).
Zimbabwean producers have favourable access to Egypt under trade arrangements created under the COMESA Free Trade Area.
As Angola is also a member of SADC, local producers can leverage on the SADC Protocol on Trade to increase meat exports.
To export beef, the first step is for Zimbabwe to deal with several challenges such as sanitary issues following the outbreak of foot-and-mouth disease (FMD).
FMD has been one of the major constraints to beef exports, particularly to markets such as Europe.
The incapacitation of the Cold Storage Company (CSC) has been hindering exports, as at its peak, the beef processor used to handle up to 150 000 tonnes per annum of beef and associated by-products annually and exported it to the European Union.
Related to this, there is need to financially support cattle farmers so that they rebuild the national herd, as well as increase the quality and output of beef.
The focus here could be on commercial cattle breeding and other supporting activities such as pen fattening.
Fish
Zimbabwe last year exported fish worth US$6,5 million.
There is potential to increase exports to new markets in countries such as DRC.
Africa imported fish worth US$1,2 billion in 2019, with South Africa and Mauritius topping the import bill.
Chicken
There is opportunity to export chicken meat to Southern African countries, which should be easy to access considering the short distances between Zimbabwe and markets.
Total chicken meat imports in the SADC region in 2019 were US$14,4 million, with Mauritius, Namibia, South Africa, Botswana, Angola and Mozambique being the biggest importers.
The participation of small-scale producers in poultry production can positively impact on chicken exports if they are main-streamed in main economic activities.
To draw better results from chicken exports, there is need to address current challenges affecting production, which went down between January-May this year compared to the same time last year.
According to Zimbabwe Poultry Association, broiler growing and in-production breeding stocks declined from 499 415 and 325 120 in May and June 2019 to 379 839 and 228 545 in May and June 2020, respectively.
Movement restrictions under the Covid-19-induced lockdown saw small and medium producers failing to access feed and other inputs from agro-dealers.
Decentralising activities, including stock feed centres, will also benefit small-scale producers who might face challenges in accessing services that are concentrated in urban centres.
Crocodile meat
There has been an up-tick in demand for exotic meat such as crocodile meat.
Exports amounted to US$700 000 in 2019, which was a 16 percent increase per annum for the period 2015-2019.
Currently, major global importers of crocodile meat that are also potential markets for local producers include Hong Kong (US$2,5 million), Netherlands (US$1 million) and Germany (US$600 000).
In Asia, crocodile meat is considered a delicacy.
For Europe, consumption of crocodile meat is mainly associated with high-end speciality restaurants.
Zimbabwe is currently producing top-end crocodile skin, whose investment requirements are usually high.
However, for crocodile meat, small producers can participate in the chain, focusing on the gap created as established producers often concentrate on skin exports.
Goat meat
Further opportunities are also in goat meat.
According to Trade Map, global goat meat imports were US$309 million in 2019, representing a 4 percent increase from 2015.
Although Zimbabwe’s share of this total import bill was only US$200 000, there is room to grow this if meat value chains are developed along areas that have historically concentrated on animal husbandry.
Last year, major global importers of goat meat in 2019 were the United States (US$138,6 million), United Arab Emirates (US$40,8 million) and Saudi Arabia (US$15,4 million). Local producers have a shot at the Asian markets and the Middle East region, which are currently easy to access. There is normally a surge in demand for goats, sheep and cattle across Asia and in most parts of the world during the Eid al-Adha — the festival of sacrifice — observed by Muslims.
Export procedure of meat
It is necessary for the exporter to obtain written permission from relevant authorities where the exports are destined.
This permission is usually in the form of an import permit.
To make this process easier, it is important for local producers to land meat in export markets through a buyer or distributor, who will obtain the import permit as per requirements of that country.
On this permit, the conditions under which the meat will be allowed entry into the country are specified.
These usually comprise both animal health and public health specifications.
Following this, veterinary offices from the Ministry of Lands, Agriculture, Water and Rural Resettlement will then issue an export permit and confirm if the requirements of the destination are complied with.
To ensure the safety of the end-consumer, a health certificate is required.
Here, a hygiene management system (Hazard Analysis Critical Control Point) must be implemented at any establishment wishing to export meat.
It is also prudent to research about the intended market destination in terms of certification as some markets prefer certain voluntary standards such as Halaal.
If it is a country that has a trading agreement with Zimbabwe such as those in COMESA, SADC and Europe, the exporter needs to register with Zimbabwe Revenue Authority and obtain a relevant Certificate of Origin from ZimTrade or any business-member organisation.
This enables the exporter to avoid duty by the importing country.
Allan Majuru is ZimTrade’s CEO.
