Tinaye Agere
PRESIDENT MNANGAGWA’S engagement and re-engagement drive has placed Zimbabwe at the heart of global supply chains.
Trade Focus
Allan Majuru
Leading economies are increasingly warming up to doing business with Zimbabwe.
For example, at the recently held Zimbabwe-China Business Forum, China’s private sector expressed huge interest in investing in local tourism, investment and trade.
The forum — organised by ZimTrade, with support from the Zimbabwe Investment and Development Agency, and the Zimbabwe Tourism Authority — also gave local businesses an insight into some of the key export opportunities in China, including requirements that will make it easy to land products in the market.
Among the many areas of export potential, the horticulture came out as a low-hanging fruit that can provide local businesses with easy access to the market.
Zimbabwe is already growing some of the crops that are performing well in the market and are fetching premium prices.
Fresh produce opportunities
A quick market scan conducted by ZimTrade on the sidelines of the forum revealed opportunities for local farmers to get premium value on a wide range of crops.
Top-end retail markets and convenient stores in China import some of the fresh produce, which, in most cases, is sold at a premium.
For example, a 250-gramme punnet of blueberries or middle-sized watermelons can cost 68 yuan (around US$9,60), whilst four large-sized oranges can cost around 58 yuan/kg (around US$8,15) in some stores.
A punnet of three avocados (Hass variety) can fetch around 55 yuan (US$7,7), 150 grammes of fresh peas — 8,90 yuan (US$1,25), 300 grammes of fresh okra — 9,90 yuan (US$1,4) and 400 grammes of fresh peanuts — 8 yuan (US$1,12).
In addition, 650 grammes of neatly packaged sweet potato can cost around 19 yuan (US$2,67),100 grammes of fresh chillies — 12,80 yuan (US$1,80) and two large-sized green pepper — 13,60 yuan (US$1,91).
While having top-quality produce in large quantities to sustain supply is important, how it is presented will also determine success as China is big on packaging.
Chinese consumers, just like in most markets around the world, are now looking for convenience in products that are packaged and easy to carry, prepare and eat.
Local farmers need to improve on packaging when entering the Chinese market, with focus on packaging that enhances the ease of use, both at home and on the go.
Where packaging can be conveniently sourced in China, local producers need to work with reliable local distributors that can assist in meeting packaging expectations and requirements.
Bigger market
The market for horticultural produce has almost doubled in the past five years, from US$11,5 billion in 2018 to US$21,6 billion in 2022, according to Trade Map.
The fact that import figures for horticultural produce in China are in double digits alone shows the inherent huge potential for the market to contribute immensely towards Zimbabwe’s export growth.
The top imported horticultural produce in China last year were berries (US$6,1 billion); stone fruits (US$3,14 billion); roots and tubers (US$2,04 billion); nuts (US$1,81 billion); legumes (US$1,75 billion); bananas (US$1,16 billion); and dates, figs, pineapples, avocados, guavas, mangoes and mangosteens (US$987 million).
Other top imported produce last year were coconuts; Brazil nuts and cashew nuts; tea and coffee; grapes; citrus fruits; apples, pears and quinces; flowers; other vegetables; and dried fruits.
Zimbabwe has potential to supply most of these products, as they are already in production.
Some local producers are already exporting to markets such as Netherlands, the United Kingdom and United Arab Emirates.
Leading exporters of fresh produce to China last year were Thailand (US$8,19 billion), Chile (US$3,37 billion), Vietnam (US$1,74 billion), Canada (US$776 million), Australia (US$760 million) and the United States (US$709 million).
Other top exporters include the Philippines, New Zealand, Peru and Myanmar.
From Africa, leading exporters of fresh produce into China in the same period include South Africa (US$514 million), which shipped nuts, citrus, grapes, apples and flowers.
Ethiopia is the second-largest exporter of fresh produce from Africa, selling US$240 million worth of produce, up from US$18 million in 2018, according to Trade Map.
Top export produce from Ethiopia include coffee, tea, maté and spices, oil seeds and edible vegetables.
Zimbabwe’s exports of fresh produce to China are still minimal, but indications are pointing to growth when local producers start exporting citrus fruits to the market, riding on the protocol that exists between the two countries.
More protocols and infrastructure
Whilst the Chinese market offers premium prices for fresh produce, Government can help make it easy for local exporters.
For example, the approved citrus protocol is a major step that is expected to boost Zimbabwe’s exports of oranges, lemons and other citrus fruits to the market.
What is also important is for local farmers to meet the requirements of the protocol and maximise on its benefits so that it becomes easy for the authorities to lobby for additional protocols.
There is also need for more protocols focusing on other produce that local farmers have capacity to produce.
Further to this, there is need for supporting infrastructure, such as cold-room facilities that will make it easy for producers across the country to export fresh produce to China.
For bulky products such as potatoes and sweet potatoes, sea freight is the most viable option, with the port of Beira in Mozambique identified as the most convenient route for those looking to export.
Deliberate investments in more storage and handling facilities along the corridors that connect Zimbabwe to nearby ports should be considered to help exporters and freighters handle huge volumes of fresh produce exports.
Allan Majuru is the ZimTrade CEO
Online Reporter