Horticulture

Zimbabwe
Updated June 2012

Compiled By N. Kuhudzai
CONTENTS

1. Definition of the sector

• Description
• Coverage
2. Overview of the Zimbabwe agricultural sector developmental situation
3. Major players
4. Production –supply capacity
5. Major export markets
6. Export-volumes, growth percentage.
7. Challenges faced by the sector and sector needs analysis
8. Programme of intervention/ action
9. Address of sector associations
Definition of the sector

Description
The sector, like the broad agriculture sector, is dualistic in nature. There are large
commercial farms and pack houses and also small-scale producers. Most of the small-
scale farmers become out-growers for the established pack houses and exporters who
wield the export markets.

Coverage
The horticulture sector covers all the products as classified under HS 06, 07, 08 and
parts of HS12. That is flowers, vegetables and fruits.

Overview of the Zimbabwe agricultural sector developmental situation

The Zimbabwean agricultural sector is dualistic, comprising large and small scale-
farmers. Until recently, the large scale sector comprised about 4000 large scale farmers
with sophisticated production systems and occupying 11 million hectares of land
primarily located in the areas of high agricultural and economic potential. The communal
and small-holder farmers on the other hand occupied areas of lower natural potential in
agriculture in terms of rainfall, soils and water for irrigation. Generally, the communal
farmers produce mainly for home consumption while the large-scale farmers produce
for commercial purposes. As a result, while the main agricultural produce from the
communal or small holder farmers include the staple maize, groundnuts, cotton, beans,
vegetables, meat and milk, commercial farmers concentrate on cash crops such as
tobacco, horticultural products particularly cut-flowers, coffee, maize, groundnuts,
sorghum, sugar, soybeans, sunflower, cattle for slaughter, pigs, goats and sheep.

Major players

Major Pack houses/exporters

Selby

Fresh Trade

Natfresh

Rollex

Major wholesalers

Interfresh

Harare Produce Sales

Manica Produce

Freshpro

FAVCO
Major retailers

OK supermarket

TM supermarket

Spar

Bon Marche

Food World

Production –supply capacity

Output has declined over the years especially after 2000 when most large scale
mechanized producers were removed from the farms.

Major Export Markets

Flowers 85%- Netherlands auctions (from hence Germany, UK, USA, France, Italy etc)

Fresh Vegetables 90%- UK, South Africa, Zambia, Namibia

Fruits 80%- UK, South Africa

Zimbabwe Horticultural Exports from 1986 to 2010

Year Mass in Tonnes Estimated Value in US$ (thousands)

Flowers Produce Citrus Flowers Produce Citrus Total
1986 338 396 2272 1555 1188 772 3515
1987 593 610 5026 2728 1830 1709 6267
1988 1326 748 7352 6100 2244 2500 10844
1989 2411 1413 8002 11091 4239 2668 17998
1990 2872 2823 8780 13211 8469 2985 24665
1991 3722 4215 6300 17121 12645 2142 31908
1992 4758 4354 8930 21885 13063 3036 37984
1993 5206 3999 9000 23948 11996 3060 39004
1994 5770 5202 15000 26541 15607 5100 47248
1995 9095 8989 20000 41839 26967 6800 75606
1996 11630 10202 24000 53497 30605 8160 92262
1997 13832 9792 30000 63628 29377 10200 103205
1998 14729 10948 30000 67753 32844 10200 110797
1999 18411 14232 45000 84692 42697 15300 142689
 2000 17857 10217 44289 81323 30346 13561 125230
2001 21749 9955 45840 78297 26341 14510 119148
2002 22801 10950 48132 86189 23983 14330 124502
2003 20171 10236 47767 72616 25179 14221 112016
2004 16271 7277 34228 58578 18193 11637 88408
2005 14327 4553 26311 51576 11383 8946 71905
2006 12327 3631 25850 45106 9078 7985 62169
2007 10420 3445 24730 36470 8640 7591 52701
2008 9535 3240 23500 32895 8100 7010 48055
2009 7670 2800 23670 26078 6810 7260 40148
2010 7500 2753 2400 24375 6600 8200 39175

Source: HPC

Export trend

Horticulture Export Trend

250000

200000
Value in US$

150000

100000

50000

0
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

Horticulture Export Trend

Growth percentage

In terms of export volumes, the sector has declined an average of 21% per year since
1986 based on the above table.

Horticulture’s contribution to Zimbabwe exports in comparison to other sectors

in 2008

Source: RBZ

The chart above shows horticulture’s contribution to the country’s exports standing at
2% in 2008 from 13% in 2007.

For the period 1 January 2008 to 31 December 2008 total shipments under the
horticulture sub-sector amounted to, US$24,646,949 compared to US$27,703,307 in
2007, representing a decline of 11,0%. The main reasons for the sustained decline are
given as the challenges below.

Contribution to GDP
Agriculture contributed about 17% of Zimbabwe’s GDP in 2011.
Challenges faced by the sector and needs analysis

Challenge
Power outages- this grossly affects fresh
produce exports which require certain
temperatures to be maintained and also
affects irrigation of the crops.
Need
Need to solve the national power
problem especially as it affects
agriculture. There is need for
investment in electricity generation.

Labour shortages- due to low pay farm There is need to pay farm workers
workers are opting for gold/diamond realistic salaries.
panning as a source of livelihood.

Lack of transport or prohibitive cost of hiring It would help to have government or an

transport to markets for small scale farmers institutional investor willing to secure a
fleet of vehicles that can be leased to
farmers a t concessionary rates
Lack of a national policy specifically There is need for government to drive
targeting development of horticulture. recovery of the sector by formulating
Efforts have been made to come up with policies that are horticulture specific
the National Horticultural Liaison and empower organizations like the
Committee, however it needs funding and HPC. Partnerships can also be forged
government buy-in at the highest level with the private sector.
possible.

Very high start up costs especially for new Need for massive investment in
farmers (infrastructure like greenhouses, infrastructure. There is dire need for
cold rooms and working capital). our banking sector to extend support to
farmers for infrastructure development.
Political influence and mistrust. Most Need to rebrand Zimbabwe as a
foreign buyers who used to buy from country and correct misconceptions
Zimbabwe do not want to buy from the new about the land reform, politics and
farmers partly for political convictions and economics of the country.
also fear of lack of supply consistency.

Dilapidated irrigation infrastructure, Need for rehabilitation of all irrigation

particularly in communal areas infrastructure and seek investment in
new ones
Highly technical requiring specialized skills There is need to capacity build small
and labour intensive at the same time scale farmers on the expertise required
in handling fresh and highly perishable
produce
Stringent phyto-sanitary Need to develop a local standard
 demands/measures on quality, food safety
and hygiene especially from Europe.
Logistical problems because of distance
from market. The biggest market for our
horticulture produce is Europe.
which can be benchmarked to the
GlobalGap standard
Need to establish air cargo hub in
Harare and have national cargo carrier
that can fly directly to Europe.

Horticulture exports are prone to price Need to capacity build farmers on price
fluctuations because of global supply and trends and how they can benefit from
demand factors. them

Sophiscated markets. The EU market, There is need to build relationships

which is the biggest, is controlled by Cartels
who determine the prices and who buys
from whom and who sells to whom. Our
producers are price takers hence make thin
profits. These Cartels mainly buy for resale.
In order to sell in these markets especially
Netherlands you have to know someone i.e.
have an agent. This does not always work
to our advantage. Revenue is lost going the
cartels/agents route.
with the markets. It is important to
support farmers on excursions to target
markets were they can now obtain vital
contacts and build business
relationships. Were possible farmers
can also form their own producer
cartels to tackle these markets.

Programme of intervention/ action

• Train farmers on the importance of quality

• Obtain project proposals from sector members and market these to potential
partners.
• Assist farmers and companies to participate in local and regional fairs
• Visit companies to understand their progress and challenges alike so as to give
relevant advice.
• Send out market opportunities to sector members.

Address of sector associations

Horticulture Promotion Council

23 Sloane Street
Highlands
Harare