Watering the prospects for horticulture… Local produce cheaper than imports

02 Oct, 2016 - 00:10 0 Views
Watering the prospects for horticulture… Local produce cheaper than imports

The Sunday Mail

Livingstone Marufu
THERE was a time, especially after the switch to the multi-currency system dominated by the United States dollar in 2009, when ornately-packaged deciduous fruits and fresh products from South Africa dislodged locally produced goods from supermarket shelves.

At the time, foreign goods made up more than 60 percent of products in local retail outlets.

Imported farm produce such as plums, cucumbers, grapes, frozen vegetables, carrots, bananas and beetroot ruled the roost.

As the exchange rate of the South African rand against the US dollar slumped from US$1:R10,9 on October 25, 2014 to US$1:R12,6 on June 5, 2015, the appetite to buy across the borders increased.

Zimbabwe National Statistics Agency official figures show the country took in horticultural products worth US$4 million in the first three months of 2015.

But a series of interventions by Government, which classified agricultural and horticultural produce as restricted goods, including further restrictions under Statutory Instrument 64 of 2016, have tipped the scales in favour of local producers.

Now, imports of such products can only be approved through a special permit granted by the Agriculture Ministry.

Production up, prices down

The legal instruments used by Government to ward off competition from foreign suppliers are not the only reason for soaring horticultural production.

Much work has been invested by farmers, the private sector and various Government agencies.

An official from the Fresh Produce Manufacturers Association of Zimbabwe (FPMAZ), an affiliate of the Horticultural Promotion Council, Mr Godwin Mushori, said there had been a noticeable increase in production for most major classes of vegetables, except onions.

He noted that during the just-ended winter season, when tomato production is traditionally low, output actually exceeded demand.

“A lot work has been done centred around the need for increased and co-ordinated private sector support for agriculture, and horticulture in particular.

“Several high-level meetings were done together with the Ministry of Agriculture, Ministry of industry and commerce, CZI (Confederation of Zimbabwe Industries), the Agricultural Marketing Authority and the producer association to share information that facilitate effective decision making, organised production and marketing of fresh produce in a manner that promotes both local farmers and local fresh produce industry in general.

“This resulted in creating confidence in the local farmers who responded very well with improved production on the majority of vegetables, except onions.

“So we have never doubted the capacity of our local farmers in as far as vegetables are concerned but it was a matter of assuring them of a market,” said Mr Mushori.

Though onion production did not fare well, increased competition helped drive down prices.

FPMAZ says in early August, imported onions were traded at US$1 per kilogramme but when local supply improved prices fell to as low as USc60/kg.

“At this point I would like to mention the great effort being done by ZimTrade in association with PUM (Dutch consultants). They are bringing in experts in specific product lines to promote the horticulture industry.

“We have already received one who is an onion expert and they are looking at ways of assisting in drying as well as storing. We are working closely with them and if done well, we are pushing for a complete ban on onion imports,” said Mr Mushori.

Fruitful fruits

Producers of deciduous fruits such as apples, plums and peaches are equally confident.

Deciduous Fruit Growers Association (DFGA) chairman Mr Edward Buwu told The Sunday Mail Business that the horticultural industry is poised for reasonable growth due to improved agricultural practices, import restrictions and increased networking among growers.

Apple growers plan to increase the hectarage under production to 400 hectares in the next decade.

Claremont Estates — one of Zimbabwe’s biggest apple producers — is replanting 40 hectares to improve yields as the old age of trees in Nyanga was affecting the average national yield.

“Zimbabwe’s production of both apples and peaches is expected to increase when compared to last season owing to improved farming practices and better chilling units, for example, a good winter during which more frost days were experienced.

“Even though the country experienced a below normal rainfall pattern in the last season, the apple growing area of Nyanga benefited from prolonged rainfall patterns that extended into June.

“As a result, most large dams, particularly those supplying water to large-scale deciduous fruit producers, had very good supply of water for irrigation, entailing that any dry season water deficit to the trees was adequately met,” said Mr Buwu. It is believed that demand for apples grew substantially from 2008 to such an extent that demand outstripped supply.

DFGA, which used to produce an average of 5 000 metric tonnes yearly, expects apple yields to improve to 3 200mt in 2017 from 3 025mt last year.

Value addition

Producers are upbeat about the prospects of the sector going forward especially after investments made in cold storage facilities for high-volume markets such as Mbare (Harare), Bulawayo and Sakubva.

A new fruit processing plant in Norton has also lifted the spirits of fresh fruit producers.

The plant was established by Best Fruits Processors — a joint venture between Beitbridge Juicing Private Limited, a wholly-owned subsidiary of Schweppes Holdings Africa Limited, and the Agricultural Rural Development Agency.

The BFP plant has annual production capacity of 30 000 tonnes of raw fruit, which is processed into purees and pastes.

To date, 300 farmers are benefiting from BFP’s out-grower programme. Since January 2016, BFP has collected fruits from more than 700 farmers from areas such as Mhondoro-Ngezi (Watyoka), Murombedzi, Honde Valley, Hwedza, Lower Gweru, Chigondora, Macheke, Mamina, Goromonzi, Selous and Domboshawa.

The business model for contract-growing for fruit is based on a mix of community irrigation schemes, smallholder farmers and a few commercial growers.

There have also been investments in jam production facilities by Cairns Foods.

Large-scale fruit producers export 15 percent to 20 percent of output to Europe while the remainder is for the local market.

Explained Mr Buwu: “The industry players need to establish a platform to promote their products on various networks so as to become competitive on the domestic market and continue to investigate export opportunities.

“Potentially, Zimbabwe can become the region’s second-largest export source for deciduous fruits after South Africa given its existing infrastructure and favourable weather. South Africa has already opened up networks on the African continent which Zimbabwe can tap into.”

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