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Edgar Vhera
Agriculture Specialist Writer
The Horticultural Development Council (HDC) innovative hub and spoke model can create 445 500 new jobs if patient capital worth US$417 million is secured in the avocado, citrus, coffee, and fresh produce sub-sectors.
This was announced at the recent third edition of the horticulture investment forum hosted by the HDC in Harare, as the country forges ahead with plans to attain a US$1 billion horticulture export industry by 2030.
The hub and spoke model resembles a bicycle wheel, with farmers acting as the spokes attached to a central hub that links them to processors.
The HDC said opportunities abound in the avocado, citrus, coffee and fresh produce sub-sectors under this innovative model.
“Cicada Agriculture, the avocado out grower programme, is linking small and large-scale producers to expand production areas and exports based on market demand.
“Under the hub and spoke model, farmers are empowered to grow and export quality products in a win-win situation, where smallholder farmers secure off-take agreements while the hub obtains extra products,” said the HDC.
Value addition activities, such as oil extraction, provide enhanced income to farmers and create employment.
The sub-sector, currently covering 2 800 hectares with an annual output of 42 000 tonnes valued at US$6, 3 million, is targeting 5 500 hectares to generate US$12 million, according to the HDC.
The HDC has since indicated that the sub-sector requires an initial investment of US$35 million and has the potential to create 17 000 jobs.
“The citrus sub-sector aims to triple its hectarage and output from the current 2 800 hectares and 62 000 tonnes valued at US$18, 5 million to 8 000 hectares worth US$53 million.
“An investment of US$62 million is needed to generate 24 000 new jobs,” added the HDC.
The out grower, Dodhill, has created entry options for medium-scale producers through private funding, off-take agreements and technical support based on strong demand.
The Dodhill citrus scheme enables many medium-scale farmers and groups, such as irrigation schemes, to participate and contribute to production with the minimum required area.
Exports will be handled by the hub (packhouse), which provides a secure market using its high market and underutilised juicing capacities.
The fresh produce sub-sector aims to double its area and output from the current 58 000 hectares and 2, 5 million tonnes valued at US$1 billion (local and export) to 80 000 hectares worth US$1, 8 billion.
The HDC added that an investment of US$300 million was required to create 400 000 jobs.
“Kuminda and Monty’s are facilitating smallholder/out-grower production under the hub and spoke model.
“The model links smallholder farmers to production and value addition initiatives while providing a working model for a wide selection of products with massive demand,” added the HDC.
Lastly, the coffee sub-sector is targeting to double its area and quadruple its production through increased productivity.
Currently, coffee is being produced on 680 hectares with an output of 680 tonnes valued at US$3, 8 million.
The HDC seeks to expand production to 1 500 hectares with an envisaged output value of US$15 million.
To achieve this, an investment of US$20 million is required, which could create 4 500 jobs.
On the one hand, Nespresso’s hub and spoke model is integrating smallholder farmers to produce special coffee, which has high international demand.
Among the challenges impeding the HDC’s objectives in the four value-chains are limited appropriate funding, lack of incentives and smallholder training, high production costs, and regulatory constraints.
The HDC is hopeful that complementary and conducive policies from Government will make it possible for set targets to be attained.
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