malvernmugadzikwa
Business Reporter
Zimbabwe and China entered into a citrus export agreement (CEA) in 2015, which opened new opportunities to boost agricultural trade and value chains for the Southern African country.
The deal smoothens the movement of shipments from registered companies that have met compliance requirements.
According to the Competition Tariff Commission (CTC), “this deal strengthens the agriculture sector through increasing the contribution of agricultural exports to total exports. The CEA deepens the Zimbabwe-China bilateral trade relations going forward”.
The agreement was signed to enable Zimbabwe to secure a market for the Shashi Irrigation Scheme smallholder citrus growers’ produce. China requested post-risk assessment information for Zimbabwean fresh fruit exports to China, which delayed market access.
Once this was provided, the agreement opened export opportunities for local citrus products, and the General Administration of Customs of China (GACC) — on June 1, 2023 — announced the list of registered Zimbabwean orchards and pack houses that were given the green light to export to China.
Eleven citrus orchards and six citrus pack houses from Zimbabwe were selected to be part of the citrus exporters to China.
Zimbabwe’s citrus fruit production and exports have been increasing over the past eight years, with the highest export value of US$33,8 million recorded in 2022. Fresh or dried oranges are the main exports.
“In 2021, citrus fruit production in Zimbabwe was 138 264 metric tonnes and has been growing at an average annual rate of 2,89 percent, according to the World Bank. It exported 57 283MT of citrus produce to the UK, Singapore, UAE, Malaysia, Hong Kong, Netherlands and Zambia,” the CTC said.
According to Trade Map, China imported citrus fruits worth US$594 million in 2019 alone. China’s orange production has slightly increased over the past three years from 2018/2019 to 2020/2021, from 7,2 million tonnes to 7,5 million tonnes, while consumption increased from 6,99 million tonnes to 7,3 million tonnes.
In the same period, there has been a drastic reduction in imports.
CTC added: “Before the pandemic, China’s orange imports witnessed seven consecutive years of growth and this indicates that China has a great national demand for oranges that can be fulfilled by importation.
“With stability coming into play post-pandemic and sudden growth in demand, this creates growth opportunities for Zimbabwean agricultural citrus farmers.”
As a result, Zimbabwe can tap into the Chinese citrus fruit market, which has been affected by the citrus imports reduction due to sudden increases in freight and labour costs.
Commercial Farmers Union (CFU) chief executive Sam Miller said this deal has resulted in economic growth through agri-value chains.
“Citrus can be processed into various value-added products. Leaves, flowers, peels, fruits and dried citrus bark have important medicinal values such as production of insecticides, cosmetic and soap industries,” he said.
According to Mr Miller, the CEA will, thus, increase local production of citrus fruits to meet rising demand and local farmers will have an opportunity to value-add citrus fruits exports, increasing agricultural contribution to GDP.
According to the National Development Strategy 1, the fruits and vegetable value chain sub-sector is a priority area. The value chain covers production, processing and marketing, development of domestic and export marketing skills, development of competitiveness for export growth, import substitution and economic diversification.
“Government has in place a Horticulture Sector Skills Strategy to develop specific skills training in the sector. The strategy strengthens the sector’s business capabilities for enhancing export diversification, quality employment, and right skills,” he added.
Economist Dr Prosper Chitambara added that the deal has a significant economic impact if taken seriously and executed to perfection.
“Increased demand for agricultural produce and improvement in balance of trade China’s import of Zimbabwean citrus produce will increase citrus exports compared to 2022. The CEA facilitates citrus exporters’ access to a bigger market and market diversification opportunity reducing dependence on local markets,” he said.
The deal will also lead to the transformation of the farming industry and gaining new markets given that farmers are complying with GACC standards, this means investment into machinery and processes to ensure that products meet standards.
Dr Chitambara said, “Improvements in local farms and orchards transform the farming industry through innovations and adoption of new technologies. To safeguard the varieties supplied, there will be a need for continuous analysis of market trends to ensure that the varieties supplied are what is demanded by the market.
“This is against the background that Zimbabwe has ideal climatic conditions that promote the growing of many fruits in high demand globally.”
This agreement opens new frontiers outside reliance on the European market and accessing the Chinese market hedges against price volatility experienced when concentrating on a single market. The CEA thus aligns with Zimbabwe’s export development strategy supporting rapid economic growth towards an upper middle-income economy by 2030.
Online Reporter