Zim supplies 60pc of UK peas, as HDC call for freight payments review

The Horticultural Development Council (HDC) has urged Government to allow the payment of freight in foreign currency prior to the application of the 70:30 surrender requirement to capitalise on the growing niche market for peas.

According to the United Kingdom Ambassador to Zimbabwe, Peter Vowles post on X, Zimbabwe accounts for 60 percent of the United Kingdom’s (UK) sugar snap peas market under the Economic Partnership Agreements (EPA).

The export of peas to various destinations is set to commence from end of April to early May.

The Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mushayavanhu reviewed downwards the foreign currency retention in exporter nostro accounts from 75 to 70 percent, while presenting the 2025 monetary policy statement.

“In order to guarantee continued stability in the interbank foreign exchange market through augmenting the supply of foreign currency, as well as building the critical foreign currency reserves needed to anchor the local currency (ZiG), the foreign currency retention level for exporters has been reduced from 75 to 70 percent, with immediate effect.

“This implies that the effective surrender portion of export proceeds has been increased from 25 to 30 percent,” he said.

HDC’s Export Produce Growers Association of Zimbabwe chairman, Mr Clarence Mwale yesterday said while exporters were looking forward to the Government’s review of taxes and regulatory fees for businesses to enhance the ease of doing business and make the country more investor-friendly in the coming six months, they also wanted this move to enhance grower viability from these winter exports.

“All our mangetout and sugar snap pea orders from the international market are Cost, Insurance and Freight (CIF) denoted and these are required in winter to fill shortage as supplies from the largest supplier dwindle.

“We pay for most of our production cost line items like export licences, inputs and services in foreign currency and if we are subjected to the 70:30 split before payment of freight we incur losses,” he said.

A CIF incoterm arrangement is one where the seller fulfils his obligations by placing the insured goods on board the vessel nominated by the seller at the agreed port of loading or by procuring the goods already so delivered.

The exporter bares all the risks and insurance costs.

HDC chairman, Mr Stanley Heri said the planting of peas starts in mid-February and ends in May for the country to take advantage of the window period when prices are lucrative on the international market.

“The country’s peas should exploit the niche period when prices are high on the international market as a result of low supply from main supplier, Guatemala.

“Any peas planted in June will reach the European Union (EU) market when demand is low due to school closures and many consumers on holiday,” he said.

Mr Heri lamented the closure of KLM/Martin Air Service and high freight costs which he said were eating into farmers’ profits.-herald