Revisiting potential for peas exports

09 Oct, 2022 - 00:10 0 Views
Revisiting potential for peas exports

The Sunday Mail

Trade Focus
Allan Majuru

The inherent potential for vegetable and fresh fruit export growth cannot be over-emphasised.

The country enjoys favourable climatic conditions and good soils, which make it easy for farmers to produce high-end, quality and tasty products that can compete in export markets.

President Mnangagwa’s Government has already been actively working towards creating a robust agricultural sector that can contribute to higher foreign currency earnings, job creation and improved livelihoods, as the country endeavours to achieve an upper middle-income economy by 2030.

But why focus on agriculture?

Compared to other countries in the region, agriculture, particularly the horticulture sub-sector, is one of the areas in which Zimbabwe enjoys competitive and comparative advantage.

In terms of low-hanging fruit in the sector, the Horticulture Recovery and Growth Plan being implemented by the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development prioritises areas that stimulate export growth.

The plan is aimed at growing exports of vegetables to around US$285 million, as well as increase the area under vegetables to 4 000 hectares.

The plan seeks to integrate smallholder farmers and outgrowers into the export market through mentoring and identification of special horticulture development zones.

Thus, key to realising full potential of the sector will be leveraging on specific crops that are easy to grow and can be produced by smallholder farmers, including youths and women.

This is where peas, as an export crop, come into play.

The Horticulture Recovery and Growth Plan earmarks 1 333 hectares for peas production, with potential to rake in US$77,4 million in export value in the short term.

Peas, therefore, provide options for farmers who want to venture into the export business.

Varieties of export-targeted peas and trends

Sugar snap and mangetout peas are the most common varieties grown in Zimbabwe. In international markets such as Europe, these are some of the highly sought-after varieties from developed countries.

The mangetout, also known as the snow or sugar pea, is a flat-podded variety that is eaten whole. No wonder the French name mangetout, which means “eat everything”.

Sugar snap peas have thick pods that are eaten whole, and they are mainly used in salads and stir-fry recipes.

These can be served raw, lightly steamed, boiled or stir-fried, and are commonly
used in restaurants and hotels across the world.

The growing global demand for peas is anchored in changing eating habits, where people are increasingly moving towards vegetables and organic foods.

Both varieties are rich in good protein, which makes them ideal meat substitutes for vegetarians.

Food blogs, culinary professionals and retailers are encouraging people to eat more exotic and healthier vegetables like sugar snaps and mangetout.

Convenience has also contributed to an increase in the demand for peas, as European consumers, particularly in the north, spend less time cooking.

Fresh peas benefit from this because they are quick and easy to prepare.

To make fresh meals more appealing and convenient, fresh peas and pea pods are also premixed and used.

Sainsbury’s, for example, sells several packaged mixes of mangetout with baby corn; as well as sugar snaps with asparagus and tender stem broccoli.

Fresh processing and packaging are critical requirements for capitalising on the growing interest in convenience products.

To ensure customer satisfaction, buyers frequently request pea pods be free of strings and, in some cases, trimmed (cutting off the ends).

Offering a broader range of small vegetables and packaging options can also be a unique selling point for exporters who intend to capitalise on the convenience trend.

Export potential

The global import market for shelled or unshelled peas (HS Code 071021) has been on an upward trajectory, from around US$461 million in 2017 to around US$503 million in 2021, according to Trade Map.

The relatively high value of these peas, combined with a steady market, makes producing and exporting mangetout and sugar snap peas a profitable business.

Last year, some of the importers of peas were the United States (US$46,5 million), Italy (US$43,1 million), Germany (US$38 million), China (US$30,4 million), Belgium (US$29,5 million), Algeria (US$27 million) and France (US$26,5).

At the same time, Trade Map notes exports of fresh or chilled peas (HS Code 070810) grew from around US$418 million in 2017 to US$485 million in 2021.

Top exporters in this category last year were the US, the Netherlands, Belgium, the United Kingdom, Canada and Germany.

Looking at specific markets, the UK and the Netherlands are some of the potential markets for Zimbabwean peas, as other local fresh produce are already performing well.

The UK market is well-developed, directly supplied from the source and expanding.

For several reasons, the UK will continue to be a valuable market for non-European suppliers.

The Netherlands, on the other hand, can provide a gateway to other European countries, as it is one of the largest re-exporters of fresh produce in the world.

Fresh peas require efficient logistics, which the Netherlands can provide, as well as several specialised trading companies.

The Netherlands’ fresh pea (re-)export is still growing, so the country’s trade position remains important for foreign exporters.

Mangetout and sugar snaps are not traditional vegetables in Germany, but the country’s large population and emphasis on health create opportunities for exporters who can supply fresh pesticide-free peas.

Dutch importers have good coverage in Germany, and German traders prefer to import from the Netherlands because it is the quickest way.

Demand for organic vegetables other than peas also remains high in Germany.

In addition, fresh peas are a popular vegetable in French cuisine, although edible pea pods such as sugar snaps are still somewhat exotic.

The French market for exotic peas has a multi-channel character, and mangetout peas are more common in France than sugar snaps.

Most supermarkets offer mangetout peas, while sugar snaps are more of a specialty.

This means the wholesale channel is relevant for marketing fresh peas to specialised shops and culinary outlets.

Norway has a high per capita consumption rate and imports a significant amount from suppliers outside the European Union.

Sugar snap peas and mangetout peas are popular in Norway and other Scandinavian countries.

However, because Norwegian consumers can only rely on a very short season of locally grown sugar snaps in July and August, the country’s reliance on imports will continue.

In Belgium, the fresh pea industry consists of the processing of common garden peas, as well as the trade in exotic pea pods.

Belgian trade is particularly well-connected with France, the Netherlands and Scandinavia, and local farmers can consider these countries as a gateway to the market.

Allan Majuru is ZimTrade’s CEO

 

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