daniel chigunwe
Edgar Vhera
Agriculture Specialist Writer
THE horticulture sector is set for growth this year as successes scored to date far out-weigh the challenges encountered, the Horticultural Development Council (HDC) has said.
In its 2023 quarterly seasonal report for June, the HDC noted some of the positives that occurred in Zimbabwe’s macro-economic environment which favour production and growth of the sector.
The report cited improved power supply as one of the success factors for growth.
Following the expansion of Hwange Power Station which saw the addition of Units 7 and 8, both of which are generating a combined 600MW, Zimbabwe now has adequate electricity, a development that has excited farmers who depend on electricity for irrigation.
Last year, farmers had challenges with load-shedding, and struggled to irrigate their crops, with wealthy farmers resorting to generators.
Another positive development was the convergence of the official and parallel market exchange rate, which allowed farmers to plan.
Exporters used to complain that the 25 percent liquidation of their export receipts worked as a tax as they were paid at the low interbank rate, yet they bought inputs from the market at high parallel market rates.
Producers also heaved a huge sigh of relief as their main input component, fertiliser prices, had receded from the high rates that used to prevail.
Reads the report in part: “High fuel and fertiliser prices continue to be a challenge and producers have had no option but to cut back on inputs and expenses, this will no doubt have a negative impact on production going forward.
“These increases also affect the cost of new orchard establishments, and as a result, may discourage potential new farmers and investors.”
The report also said the actual planted area had gone up from the December 2022 forecast provided by farmers.
Export Fresh Produce Growers Association of Zimbabwe (EFGAZ) said their members had forecasted a decline in pea production from 351 hectares in 2022 to 181 hectares this year.
Actual statistics on the ground show that there was a 40 percent jump from the predicted 181 hectares to 254 hectares, though it was still 73 percent of the 2022 figure.
The June seasonal report also noted an improvement in the Euro to United States dollar exchange rate.
There is also enough water to undertake production as dams were full, due to the above normal rainfall received last season.
All the above factors coupled with the opening of the Chinese market under the Zimbabwe/China citrus trade protocol, is expected to spur horticultural growth.
Access to finance, delayed issuing of water permits, small allocation of local currency fuel facility, warm winter that has resulted in increased pest pressures and the slow process of the 99-year lease application process, ranks among some of the processes that might affect horticulture growth this year, reads the report.
Online Reporter