High costs hamper horticultural exports

HIGH costs of obtaining international compliance certification by local horticultural producers are constraining access to lucrative international markets at a time there is growing interest in local fresh produce from overseas markets.

While Zimbabwe is making significant strides in re-entering global markets, particularly the European Union – the world’s largest consumer of horticultural products –  small -scale producers are finding it difficult to be certified largely due to high certification costs.

Given the nature of horticultural produce, most which are consumed, there is a global drive to certify horticultural practices and produce to ensure human safety.

The sector—promising to be one of the country’s major foreign currency earners— is showing positive signs of recovery,  and exports have been rising.

Exports in 2018 rose 116 percent last year to US$112 million from US$52 million recorded in the previous year, lifted by new products which were previously not exported.

“The Global Gap Certification seeks compliance with various good practices and has a major advantage of unlocking access to export markets,” ZimTrade, the national trade development and promotion organisation,  said.

“However, small-scale producers find it difficult to be certified for a number of reasons such as the costs of the certification process. ZimTrade remains committed to assisting local sector players to be satisfied so that they can access international markets.”

The European Union is the largest market for Zimbabwe’s horticultural products.

The main EU market include Netherlands, which accounts for 43 of total horticulture exports, according to Trade Map. Other importers are United Kingdom Portugal, Italy, Spain, Ireland, Sweden, Belgium, Malta, Romania and Greece.

Major export crops are citrus, macadamia, avocado, peas, stone fruits, berries and flowers.

Mr Edwin Moyo, chairman of Nhimbe Fresh Exports,  said adherence to international standards was key to create a good reputation for Zimbabwe as an exporter.

“As a result of high costs, we have producers doing shortcuts and as a result, we do not meet the EU standards and this affects the reputation of the country,” said Mr Moyo.

“As a country, we need proper systems so that we do not compromise ourselves.”

He also noted that the quality of fresh produce was being compromised by power shortages, the use of antiquated cold-chain facilities and lack of such facilities in some areas.

Potential markets

The launch of the African Continental Free Trade Area (AfCFTA) will, however, create huge opportunities for Zimbabwe to export into the region, mainly in Mozambique, Zambia, Botswana and the Democratic Republic of Congo, which have lesser controls.

Other potential markets exist in Germany and Asia, particularly in Japan. Dubai is also emerging as a strong market for Zimbabwean horticultural produces.

In efforts to assist local farmers to the EU, ZimTrade facilitated the participation of five companies at the Fruit Logistica Expo in Berlin, Germany, in February 2018.

The total value of deals generated in the six months after the expo was US$9,3 million. Twenty-three leads were identified.

In Zambia, ZimTrade facilitated the participation of 10 local firms in the farm equipment and inputs sectors, which met with over 200 potential buyers at the Agritech Expo.

Interventions

ZimTrade has started various projects aimed at stimulating horticultural production and exports as well and increasing the diversification of horticulture products in Zimbabwe.

Currently, it is implementing a Best Model Farm project, which seeks to develop production and diversification of export products. ZimTrade has identified three model farms where it will assist with developing new products. Through a memorandum of understanding with PUM, a Netherlands-based organisation of senior expert consultants, ZimTrade conducts expert missions to assist in the project.

ZimTrade partnered COLEACP to carry out capacity building for smallholder farmers and relevant entities in the horticulture value chain in Zimbabwe. To date 17 applications for support have been approved. ZimTrade hosted a team from the organisation to assess current projects they are funding and visit potential beneficiaries.

ZimTrade also put together a Horticulture Capacity Development project, which was approved by the EU-funded Trade Comm II programme. The project is targeted at smallholder farmers in irrigation schemes producing niche products for export.

On the other hand, the Government says it is considering setting up a horticulture department committed to create a conducive regulatory environment.

Early this year, Government launched the Zimbabwe Smallholder Horticulture Empowerment and Promotion project (ZIM-SHEP),  which is expected to boost production and improve livelihoods of people in farming communities.