Horticulture earnings stagnant at US$71m as
production costs soar
HORTICULTURE export earnings have remained static at US$71 million for the period
January to November 2022 compared to the same period the previous year with 121
million kilogrammes of horticulture products being sold versus 127 million kilogrammes
in 2021.
Statistics availed by ZimStats yesterday exposed the development, which highlighted
that the average price for horticultural products for 2021 was US$0, 59 per kilogramme
against last year’s figure of US$0, 56.
ZimStats figures on external trade for the period January to November 2022 show that
the country exported horticulture produce worth US$70 909 597 last year against US$70
611 813 for the same period in 2021.
Horticulture Development Council (HDC) chairman Mr Stanley Heri said he was not
surprised by the lack of change in earnings as the logistics sector had negatively
impacted on horticulture export viability and growth.
“The costs involved in the movement of our products to our main market, the European
Union, have astronomically risen. In the past airfreight costs were around US$2,14 per
kilogramme but this has risen to between US$2,80 to US$3 with the aviation sector citing
high fuel cost,” he said.
Mr Heri added that the depreciation of the pound and euro against the US dollar was
working against them, as they received their earnings in pounds or euros yet costs of
production and the whole logistics value chain were denominated in the US dollar.
“The European market is competitive as it offers premium prices unlike the Middle East,
which is closer but has prices are on the lower side and hence not attractive.
“This coming winter, the country is likely going to see a drop in vegetable production,
especially peas, due to increased freight rates,” continued Mr Heri.
On a positive note, the berries sector contributed immensely to 2022’s gross earnings
after netting US$12 204 553 against US$7 051 955 from the previous year, representing a
73 percent surge.
The volume of exports under the berries umbrella (cranberry, mulberry, blueberry, and
so on), rose from 3 269 060 kilogrammes in 2021 to 5 067 326 kilogrammes last year,
marking a 55 percent increase.
The average price for berries in 2021 was US$2,41 per kilogramme against last year’s
US$2,16 a 12 percent increase.
Zimbabwe Berry Growers Association vice chairman Mr Stuart Torr, maintained that
blueberries production was the major cause for the increased production within the
berries sector.
Mr Torr said new blueberry plantings of 2021 and orchards that are getting older had
contributed to the increased production, as yields naturally increase as the trees mature.
“I don’t see that increasing year on year.
“It will probably drop due to competition in the blueberry industry coupled with barriers
to expand production.
“Among the factors that might slow down blueberry expansion are the 75 percent foreign
currency account (FCA) retention, the unavailability of patient capital for short-term
borrowing, as well as increased production costs,” added Mr Torr.
The Government last year introduced a US$30 million horticulture export revolving fund
to spur horticulture exports growth, as well as fulfil the dictates of the Horticulture
Recovery and Growth Plan (HRGP).
This is in addition to other incentives such as suspension of duty on agriculture capital
equipment (S.I. 6 of 2016), anchor farmer incentive, value added tax (VAT) zero rating of
farm inputs and foreign currency account (FCA) retention on incremental export receipts
of 100 percent.
The Horticulture Recovery and Growth Plan being operationalised aims to boost output
of key commodities such as blueberries, fresh produce, citrus, macadamia, coffee and
high-value emerging crops such as industrial hemp and medicinal cannabis.-The Herald
