Zimbabwe Horticulture Sector Bulleti nn - ZimTrade

Zimbabwe Horticulture SectorBulletinPublished Quarterly March, 2009 Issue No. 3Horticulture Workshop“Turning Around the Economy through Horticulture Exports”Rainbow Towers Harare, 23 April 2009ZimTrade invites all farmers, horticulture service providers, financiers, input suppliers andeveryone with an interest in this sector to participate at this one-day workshop to be held on the 23April 2009. This is an opportunity for you to turn around our economy and make money throughhorticulture exports.The workshop will focus on these areas among others:• The New Agricultural Marketing Regime and its implications on horticulture• Market Access Factors• Finances for Agriculture• Contract Farming and out grower schemes• Markets and Growth prospectsTime: 0830hrs – 1620hrsDate: 23 April 2009Venue: Rainbow TowersFor registration please contact Mr N. Kuhudzai on (04) 369330-42 or 0912 374 890 or Mr C.Tsimba on (04) 369330-42 or 011 801 359.You can also send an email to ctsimba@zimtrade.co.zwor nkuhudzai@zimtrade.co.zw

AGRICULTURAL TRADE AND MARKETINGPROJECTZimTrade in conjunction with the EU havelaunched the Agricultural Trade and MarketingProject. The objectives of the project are to bringthe small-scale rural farmer into the mainstreamlocal and export trade of horticulture products. Itwill seek to alleviate poverty and bring reasonablereturns to the ordinarily disadvantaged ruralPHYTOSANITARY CERTIFICATES AND SERVICESThe Plant Protection Unit of the Ministry of Agriculture has revealed the following newcharges for phyto-sanitary services with effect from 1 st March 2009. For any queriesplease contact the department on (04) 704531 - 9NEW FEESCOMMERCIAL NON-COMMERCIALService Per Year US$ Rand Pula USD Rand Pula1 Application form fee 1 10 8 1 10 82 Advisory Services 10 100 803 Phytosanitary Certificate 10 100 80 5 50 404 Plant Import Permit (Agric Product) 10 100 80 5 50 405 Phytosanitary Certificate with Lab Analysis 20 200 1606 Supervised Import Permit (Agric Product) 20 200 1607 Supervised Importation (Wood Packaging Material) 20 200 1608 Field and Laboratory Inspection for Export Crops 50 500 4009 Tobacco Premises Licence 50 500 40010 Registration/Licence (Export Produce) Per Year 100 1 000 80011 Registration/Licence (Potted Plants) Per Year 50 500 40012 Pack House Registration/Licence (Citrus) Per Year 50 500 40013 Re-Export Phytosanitary Certificate 10 100 8014 Transit Permit 10 100 8015 Treatment Fee (Kiln and Fumigation Registration) Per Year 50 500 40016 Certificate of Registration (Product/Manufacturer of50 500 400Wood Packaging Material17 Inspection Fee 20 200 16018 Incineration Fee 20 200 16019 Fumigation Fee 50 500 40020 Penalty for Non-Compliance to Destruction of CropResidue: (Tobacco, Cotton and Paprika)”100 1 000 8004

SOME PREREQUISITE INTERNATIONAL QUALITY AND SAFETYFOOD STANDARDSGood Agricultural Practices and Food SafetyGlobalGAP- most widely used and sought certificate in goodagricultural practices. It certifies that the product entering themarket has been produced in the safest ways, which do notendanger health and human lifeISO 22000 –2005 –food quality certificates= issued by theInternational Organisation for StandardsHACCP – Hazard Area Critical Control Point also ensuresquality and safety of food at the farm/processing houseEnvironment, Health and EthicsOrganic Certificate – certifies that a product has been producedwithout using chemicalsLow Carbon Footprint – implies the production of cropsminimising carbon dioxide emissions that hurt the environmentFairTrade –certificate certifies the ethical production of cropsTOP TEN PRODUCTS ZIMBABWE CAN SUPPLY TO THE EUProduct Pack Average Maket Price US$Avocado 4kg 8.87Baby Corn 12x125g 6.98Chilli 2kg 9.09Melon 5kg 1.25Okra 2kg 3.76Passion fruit 2kg 5.64Peach 5kg 1.88Mangetout Peas 2kg 5.02Sweet Potatoes 10kg 2.51Mango 4kg 1.88Source: MNS Reports Prices for February 20095

EXPORT CONSORTIA PART 1Source: METCO Publication 1998DEFINITION“A” consortium “can be formally defined asan “ad hoc or ongoing, informal or formal,sometimes “shell” association, of two ormore entities to profitably pursue, generally,one or more common commercial activitieswhich are either complementary to, anextension of, or in addition to, regularactivities of its members.A more down to earth description of anexport consortium in relation to SMES is thecoming together of a number of individualscompanies that are seeking to enterinternational markets.As individuals operations such companiesare often restricted by the cost of exportsmarketing and sales function and the cost oftransportation of small volumes to themarket place. In such instances, by cooperatingwith a number of like –mindedcompanies, each financially contributingtowards forming an export consortiumcompany, the individual cost of exportingbecomes more affordable.an organization can provide export servicesto companies, which may be equityshareholders in the consortia, but choose tobe associate members; however usually for afee .It therefore follows that those interestedin forming such an export consortium shouldsee themselves as investors on which areturn is expected.A consortium cannot be managed on acommittee basis and consensus baseddecision making often does not work inpractice. An export consortium must be seenas a separate entity from that of its foundermembers and as such should have a flexiblestructure allowing change according tomarket needs and demands.The structure of an export consortiumcompany should be very lean and not overstaffed. An example of a possible structurecould be: Board of Directory (probably aChairman and two Directory, elected fromthe investing members for a specified term),Chief Executive and /or Sales and MarketingExecutives /Manager and a FinancialExecutive Manager, who could initially atleast also have administrativeresponsibilitiesHOW TYPICAL EXPORTCONSORTIA OPERATEAn export consortium is a business, just likeany other business. It is simply and typicallyan export –marketing organization foundedby a number of companies sharing acommon business interest.A consortium is therefore a business concernowned by those companies/persons who putup the initial capital. However, associatedcompanies/persons not wishing to befounding members and /or shareholders canbe members of an export consortium. Such6Typical, export consortia personal usuallyconsist of 2 to 3 full time employees. Stafflevels may increase in due course if thevolume of business justifies it.The activities of export consortia usuallyfocus on:• Export market research• Overseas promotion in advertisingand publicity development• Product demonstrations• Potential buyer and distributoridentification• Trade show /fair participation

• Technical and sales seminar• Assistance in contacting agents anddistributors• Transportation and logisticalarrangements along withdocumentation• Communication of specific salesopportunities• Arrangement of necessary legalservicesCOMMENTSmall-scale farmers are encouraged to create export consortia, which will assistthem in exporting. The farmers become the owners of the consortia and it works totheir best interests. Most importantly a consortia covers the knowledge and skillsgap, which an individual farmer usually does not have.Entrenching the Business Planning Culture in Zimbabwean AgricultureIntroductionIf there is one factor that sets apart developing from developed countries, it is the ability of thedeveloped economies to deliberately plan, implement, monitor, and take the necessary remedialaction whenever there are deviations from projected performance. It is their ability to recognizeand inculcate into their corporate cultures, that practically every business endeavour is a project;that has a limited lifespan and is composed of various activities or tasks which must take time toimplement and will necessarily require manpower, material and financial resources to see itthrough to accomplishment.Because planning is inherently difficult, the activities often being diverse and their scope wide,extensive use is made of purpose-built planning frameworks or models to help ease the planningprocess. These models could be, in descending order: econometric, financial, operational ortechnical, depending on the nature of the problem at hand.The principal fatal weakness of the Zimbabwean economic landscape is the dearth of suchplanning models, the implication being that the value of planning gets lost in the attendanttedium and drudgery, rendering most businesses strategically rudderless. In the majority of cases,the only reasons they continue to remain in business are either sheer luck or chance occupationof a monopolistic position in their respective markets. This is in contrast to the cold anddeliberately calculated maneuvering that is characteristic of their counterparts in the developedworld.Cold and calculating are the twin imperative attributes that Zimbabwean businessmen must haveas we emerge from a decade of economic decline and seek to increase our productive capacityand productivity and also re-assert ourselves on the global marketplace. This is particularlypoignant now as we enter an era of heightened competition as a result of the creation of acommon market in the region and also lower prospects of foreign investment due to the globaleconomic meltdown.The Production and Financial Planning Model for Crop AgricultureIt is in the light of this background that we are introducing our initial product – a productionplanning, financial planning and decision-support system for crop agriculture branded taguta tm .In developing this model, we were cognisant of the fact that agriculture is the prime engine of the7

Zimbabwean economy and that it must determinedly start chugging again. We believe that inavailing this model to the agricultural industry, we are equipping the new agriculturaldispensation with superior planning capacity which should hold it in good stead from bothoperational and financial planning perspectives.Built on Microsoft Visual Basic, taguta tm enables you to effortlessly create productionprogramme scenarios of any mix of any number of crops. You can then proceed to computecomprehensive short-term and long-term financial forecasts for each scenario in a ‘what-if’scenario analysis fashion.For each scenario you can generate the following forecasts: production output, sales revenues,variable costs, fixed assets and depreciation, overheads, profit & loss, programme costs &financing structure, loans & repayments, debtors, creditors, stocks, cash flows, balance sheets,financial ratio analysis, sensitivity analysis and scenario comparative performance analysis overboth the short-term 12-month planning horizon and the longer-term 5-year horizon.taguta tm includes the following key attributes:• Inventory classification and coding scheme design and registration functionalityincluding tracking of suppliers, inventory and prices.• Production budgeting - materials, labour and operations, equipment usage and directpurchases.• Production operations, materials, equipment, manpower and financial resourcescheduling for each production scenario.• Financial planning and appraisal functionality.• Multi-currency planning support.This is a strong management tool to assist managers to take a glimpse into the future and alsoexercise control, and in viewing the business in the way outsiders would. Financial ratioinformation provides information regarding future performance and possible actions.While this model has been developed to primarily give farmers some operational and financialplanning leverage, it is an industry-wide model in that:• Financial institutions can use it as a project appraisal facility with its capacity forimporting for analysis, planning data from individual farmers.• Equity investors being demanding and comprehensive users of financial information withinterest spanning all aspects and stages of operations, profitability, liquidity, capitalstructure and valuation, would take a keen interest in the reports generated.• Credit grantors, short-term and long-term, would be interested in the profitability of thebusiness as well as the capital structure because the level of financial leverage determinesthe level of financial risk and indicate the extent that debt will be covered by assets.Expected Outcomes and Benefits:The following outcomes and benefits are expeceted:• Enhanced agricultural production planning, financial planning and decision support in thevalue chain.• Greater operational control and improved produce quality and delivery via documentedproduction procedures and performance standards, true to total quality management8

dictates.• Rapid short and long term business plan formulation.• Enhanced communication between financial institutions and farmers via use of acommon planning platform, which allows for the setting of agreed performance standardsprior to implementation.• Promotion of clustering and networking in agriculture with this new possibility for jointagricultural planning resulting in informed stakeholder involvement in agriculturalprojects.• An effective decision-making framework for contractors who will now be able to plan forall their geographically dispersed projects from a single platform.• Enhanced agricultural extension serviceTarget MarketsIndividual and Corporate Farmers; Contractors; Consultants; Financial Institutions; Research &Extension Organisations; Local and Central Governments; Non-Governmental Organisations;Agricultural Colleges; Farmers’ Unions, Associations and Syndicates.BUSINESS OPPORTUNITIESBUYERS (as attached)Trade Fairs & Exhibitions…Malawi Int. Trade Fair: Blantyre(19 –27 June)Zambia Int. Trade Fair: Ndola,(1 – 7 July)Africa Big Seven (Processed Foods, Fresh Produce& Related Equipment): Jo’burg, South Africa(19 – 21 July)Maputo Int. Trade Fair: Mozambique (31 Aug- 6Sept.)Decorex (Furniture and Interior Décor): Jo’burg,South Africa(6 – 10 August)Luanda Int. Trade Fair: Angola(14 – 19 July)Zambia Agric & Com. Show: Lusaka(July-Aug)Ongwendiva Show: Namibia(21 – 29 August)UNITED KINGDOMFood and Drink Expo6 th –9 th April 2009BirminghamWebsite: www.foodanddrinkexpo.co.ukINDIAFresh Produce India2 nd –3rd April 2009MumbaiWebsite: www.freshproduceindia.coWindhoek Commercial and Agricultural Show:Namibia(25 Sept. – 3Oct)9

YOUR COMMENTS AND CONTRIBUTIONS ON THE ISSUES RAISED IN THIS BULLETIN ARE WELCOME. EXPERTS INVARIOUS FIELDS ARE ALSO INVITED TO WRITE AND SHARE THEIR EXPRIENCES WITH OTHERS THROUGH THISBULLETIN. PLEASE WRITE TO: nkuhudzai@zimtrade.co..zwHead OfficeMount Pleasant Business Park Regional Office:Premium Close Tel: (263 4) 369330 - 41 48 Josiah Tongogara Street Tel: (263 9) 62378PO Box 2738 Fax: (263 4) 369244 PO Box 3090 Fax: (263 9) 62397Harare, Zimbabwe E-mail: nkuhudzai@zimtrade.co.zw Bulawayo E-mail:info@byo.zimtrade.co.zwInternet: http://www.zimtrade.co.zwAll information in the Zimbabwe Horticulture Bulletin is derived from sources, which ZimTrade considers reliable, and it is passed on to our readers ingood faith. However, ZimTrade does not accept any responsibility for the accuracy of the information supplied, nor any third party included in thisBulletin. Similarly opinions expressed by third parties in abstracts and/or interviews are not necessarily shared by ZimTrade.ZimTrade- Developing Sustainable International Trade10

Local OpportunitiesContact person Details Products Concerns/RequirementsCall Farai 00 263 7926449, email:Farai@mitchellandmitchell.co.zwFine Beans, Red Onions, Garlic,Courgettes, Mange tout,Tenderstem Broccoli.Looking for offers from suppliersRegional Opportunities to ExportGeorge Mathew[george@brookehouse.net]SOUTH AFRICABrooke HouseTel: 27 119752650Fax: 27 119752637E-mail:info@brookehouse.netWebsite:www.brokehouse.netFresh Cut Flowers(e.g. roses,flora, green proteas,bouquets, etcWe import from a number of countries but stoppedthe import from Zim in 2001 due to irregular supply.We would be more than happy to do business if thesupply is regular.Payment after 30 days for when we sell at fixed (prices)sales10% commission charged on auction salesMr Dawie LeiebenbergMark KlassTips South AfricaTel: 012 803 0439Fax: 0027 86 621 7089Website: www.tips.co.zaEmail: dawie@tips.co.zaSouth AfricaMALAWIUniversal IndustriesLimitedTel: 265 1870055Fax: 265 1877408Cell: 265 8206700E-mail:universal@unibisco.comBaby corn, finebeans, baby gems,baby cabbagePotatoes for makingchips (20 tonnes perweek)Quantity Requirements:Initially 1 FTL of 25 tons of Potatoes per week overa 6-week period.Packaging:-10/20 kg paper pockets or 50kg Hessian bags.Price:-US$400 (Four Hundred US Dollars) per ton C+F,Blantyre.Payment:-Payment can only be effected after goods havebeen received in Malawi as per Malawi ExchangeControl Regulations. Payment in the form oftelegraphic transfer to seller’s bank account in11

International Opportunities to ExportMorestaff Chibanda UNITED KINGDOMUtopia UK LtdEnterprise WayPinchbeckSpaldingLincolnshirePE11 3YRJeeneshT: +44 (0) 1775 716800M: +44 (0) 7896 417112F: +44 (0) 1775 716808E:mchibanda@utopiauk.comUNITED KINGDOMUnifruit Ltd+44 1923 212191+44 1923 218742Email:tolia@unifruit.co.ukPineapplesLimeGuava (Red Flesh)PapayaPomeloDragon FruitPhysalisLycheeCarambolaSweet PotatoesMix veggies, finebeans, extra finebeans, mangetout andsugar snaps, citrus andlemonsZimbabwe, within 7 days of receipt.General:-All documentation for the import of potatoes fromZimbabwe to Malawi for the Seller to organize.To be able to supply to the EU/UK the growersneed to be certified to Eurepgap, registered withSedex, are prepare to complete and sign our duediligence documentation which include pesticide,packaging undertakings, send spraying records,Process flow information. This is over and abovethe ability to continuity of supply, good qualityproducts. On our part we are prepared to worktogether with suppliers to acquire theserequirements, provide technical assistance andprovide the channel into the lucrative UK retailmarket.Develop a strong long term business relationshipSalesUNITED KINGDOMAegean Heritage LimitedTel: 44 01283740040Fax: 44 01283740420E-mail:sales@aegeanheritage.cFruits and VegetablesEurepGap Certification12

o.ukWebsite:www.aegeanheritage.co.ukAllanUNITED KINGDOMAllan& Anderson(Importers) LtdAly Banks7 Queen AvenueDale Street, LiverpoolL2 4TZTel: 0151 236 2701Fax: 0151 236 7817E-mail: aly@allananderson.co.ukWeb site:http://www.allananderson.co.ukCitrus fruits, peas,beans, vegetablesfresh/chilled/frozenEurepGap CertificationSalesUNITED KINGDOMFarm Foods LimitedLlambed EstateLampeter, CeredigionWalesTel: 01570 423 099+44 1570 423 099Fax: 01570 423 280Email:webmaster@organicfarmfoods.co.ukWebsite:http://www.organicfarmfoods.co.ukFruits and vegetablesEurepGap Certification13

EdSalesJacana Produce LtdTel: 44 0 386 760080Fax: 44 0 1386 760 200www.jacanaproduce.comsales@jacanaproduce.comAuthentic Products187 Plashet RoadLondon. E13 0QZMangetout,sugarsnaps, chilliesPeas, beans, lentils,nuts, chestnuts,Consistent supplySalesTel: 020 8598 8967Fax: 020 8598 8967E-Mail CustomerService:info@spiceswarehouse.comE-Mail Sales Team:sales@spiceswarehouse.comE-Mail Wholesale Team:wholesale@spiceswarehouse.comGrapes Direct LimitedFort BridgewoodMaidstone RoadRochester, Kent ME13QJGrapesTel: +44(0)1634 820400Fax: +44(0)1634 820401E-mail:gdl@grapesdirect.co.ukWeb site:http://www.grapesdirect.co.uk14

SalesTerraSana® BVP.O. box 70NL-2450 AB LeimuidenTel.: +31 (0) 172 50 3333Fax: +31 (0) 172 50 3355E-mail:info@terrasana.comStrawberries, oranges,raspberries,gooseberries, lemons,grapes, kiwifruitsSalesWeb site:http://www.terrasana.com/ENWing Mau Trading CoLtd1-3Floor, No.1 BuildingLengsi FoodstuffWarehouse YardCrossroad of Mei YuanRoad &Bao An Bei RoadShenzhen 518023Apples, pears andquinces, fresh- Pearsand quinces, grapes,citrus fruitsTel:(86 755) 25182988(Main Switch)(86 755) 25182988(Sales Hot Line)Fax:(86 755) 2518 2258SalesWeb site:http://www.wingmaufruit.comBRAZILCaladi Trading Brazil LtdTel: 55 712439373Fruit juices, CannedFood Products, Freshfrozen poultrySupply Contracts15

Fax: 55 712439235E-mail:mail@caladibrazil.comWebsite:www.caladibrazil.comR GavelliSalesITALYAliflor Export-ImportTel: 39 184510404Fax: 39 184510935E-mail: aliflor@rosenet.itBasFoods Australia423 Victoria St.Brunswick Vic, 3056Cut Flowers (roses,gopsophilia, satice,lilium)Beans, vegetablesAdvantageous if one could have Fair Tradecertification for flowersYuka TachikawaTel:(03) 9381 1444Fax:(03) 93811799E-mail:enquire@basfoods.com.auJapanJapan Flower TradeAssociationTel: 81 3 57057056Fax: 81 3 5411 5295E-mail:jfta@zas.att.ne.jpCut FlowersImport permits are requested andPhyto-sanitary certificate16