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agri-business sector zambia

The Agri-Business Sector in Zambia 2019

Alex Conradie | Zambia | 23 July 2019

The Agri-Business Sector in Zambia 2017

Alex Conradie | Zambia | 01 July 2017

The Agri-Business Sector in Zambia 2014

Ingi Salgado | Zambia | 25 November 2014

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Report Coverage

This report covers the agri-business sector in Zambia, with comprehensive information on the size and state of the sector, production figures, investment and government actions in the sector, trade regulations and barriers to entry. There are profiles of 39 companies operating in the Zambian agri-business sector, including Zambeef Products, the largest vertically integrated food retailer, which uses more than 16,000ha each year to produce irrigated and rain-fed crops such as maize, wheat and soya beans, Mount Meru Millers Zambia, which has a 20% share of the edible oil market, Zambia Sugar, which produces more than 90% of the country’s sugar. There are profiles of a number of cotton companies including Parrogate Ginneries, China-Africa Cotton Zambia, Grafax Cotton Zambia and Alliance Ginneries, and tea companies such as Zaffico Tea, which announced plans to increase production.

Introduction

Although the agricultural sector contributed only 6.7% to Zambia’s gross domestic product (GDP) in 2017, according to figures published by the World Bank, the sector is the most important to the country from a socio-economic point of view. International Labour Organisation (ILO) data shows that 3.7 million people, or 53.9% of the labour force, were employed by the agricultural sector in 2018. Some of the challenges facing Zambia’s agri-business sector are the increasing cost of inputs such as electricity, fuel and wages, and competition from illegally imported edible oil.

Strengths

• A favourable climate with an abundance of water and fertile soil for the cultivation of a wide range of agricultural products.
• Established agro-processing capacity.
• Low-wage labour available.
• Support for the sector from the government.

Weaknesses

• Highly dependent on imports, from equipment to inputs, which makes the sector susceptible to currency fluctuations.
• Limited access to credit by smallholder farmers.
• Low rainfall leads to lower output due to a reliance on rain-fed production.
• Management and technical skills shortages.
• Most small-scale farmers cannot afford production inputs such as fertiliser, pesticides and improved seed.

Opportunities

• Increasing regional demand for food due to rapidly increasing urban populations, changing consumption patterns, and growth in per capita income.
• Investment opportunities in farm blocks that are undergoing infrastructure development.

Threats

• Continuing illegal imports of edible oil.
• Increasing cost of inputs such as electricity, fuel and wages.

Outlook

According to the Food and Agriculture Organisation, maize output is expected to decrease in 2019 to between 2.0 and 2.2 million tons, mainly due to lower than normal rainfall, while the ministry of Agriculture forecasts a decline in production volumes of groundnuts, rice, tobacco, cassava, sorghum, millet, soya beans, seed cotton, sweet potatoes, cowpeas, and sunflower seed in the 2018/2019 agricultural season. Output of potatoes, mixed beans, barley and wheat is however expected to increase.

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The Agri-Business Sector in Zambia 2019

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Agri-Business Sector in Zambia 2017-07-01

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Agri-Business Sector in Zambia 2014-11-25

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 6
4. SIZE OF THE INDUSTRY 10
5. STATE OF THE INDUSTRY 11
5.1. Local 11
5.1.1. Trade 17
5.1.2. Corporate Actions 20
5.1.3. Regulations 20
5.2. Continental 22
5.3. International 22
6. INFLUENCING FACTORS 23
6.1. Government Support 23
6.2. Economic Environment 24
6.3. Technology, Research and Development (R&D) and Innovation 25
6.4. Environmental Concerns 26
6.5. Labour 26
6.6. Imports of Edible Oils 27
7. COMPETITION 27
7.1. Barriers to Entry 28
8. SWOT ANALYSIS 28
9. OUTLOOK 29
10. INDUSTRY ASSOCIATIONS 29
11. REFERENCES 30
11.1. Publications 30
11.2. Websites 31
APPENDIX 1 32
Summary of Notable Players 32
COMPANY PROFILES 39
AFGRI OPERATIONS (PTY) LTD 39
AFRICA FEEDS LTD (ZAMBIA) 43
ALLIANCE GINNERIES LTD 46
AMATHEON AGRI ZAMBIA LTD 48
AMIGO FOODS LTD 50
ANTELOPE WHOLESALE MERCHANTS LTD 52
CARGILL ZAMBIA (2009) LTD 54
CBL AGRI ZAMBIA LTD 56
CHINA-AFRICA COTTON ZAMBIA LTD 58
CONSOLIDATED FARMING LTD 59
GOUROCK ZAMBIA LTD 61
GRAFAX COTTON ZAMBIA LTD 64
KALOMO GRAIN MARKETING LTD 65
KHAL AMAZI LTD 67
MONSANTO SOUTH AFRICA (PTY) LTD 69
MOUNT MERU MILLERS ZAMBIA LTD 72
MRI SEED ZAMBIA LTD 74
MUNALI COFFEE LTD 76
NATIONAL MILLING CORPORATION LTD 77
NORTHERN COFFEE CORPORATION LTD 79
NUTRI FEEDS (PTY) LTD 81
NWK AGRI-SERVICES LTD 84
OMG GROUP HOLDINGS LTD 86
PANNAR SEED (ZAMBIA) LTD 88
PARROGATE GINNERIES LTD 90
REGITECH SOYA PROCESSING INDUSTRIES LTD 92
SEED CO ZAMBIA INTERNATIONAL LTD 94
SIMBA MILLING LTD 97
SPECIALITY FOODS (ZAMBIA) LTD 99
STAR MILLING LTD 101
SUPERIOR MILLING COMPANY LTD 102
UNIFIED CHEMICALS ZAMBIA LTD 104
YATU FOODS LTD 106
YORK FARM LTD 107
ZAFFICO TEA COMPANY LTD 109
ZAMANITA LTD 110
ZAMBEEF PRODUCTS PLC 111
ZAMBIA SUGAR PLC 117
ZAMPALM LTD 120

Report Coverage

The detailed Agri-Business in Zambia report examines current conditions, investment in the sector and factors that influence the success of the sector including the rapidly increasing urban population and government support. Profiles are provided for 31 role players ranging from market leader, National Milling Corporation Ltd which has an estimated market share of 25% and 30% in the wheat flour and maize meal markets, to Amigo Foods Ltd which owns one potato farm and one factory that manufactures potato crisps.

Introduction

This report focuses on the growing of crops and horticulture, as well as the manufacture of edible oils, animal feeds, grain mill products, sugar coffee, and tea, and the provision of agricultural husbandry services in Zambia. Despite the fact that the agricultural sector contributes only 5.3% to the country’s GDP, it is still the most important sector from a socio-economic point of view. African Statistical Yearbook data shows that 62.5% of the economically active population are involved in agriculture, most of them small-scale farmers who depend on the sector for their livelihoods and employment. While more than 1.5 million smallholder households grow crops in Zambia, the country is also home to an estimated 3,000 medium-scale and large-scale farmers. Some of the problems confronting Zambia's agri-business sector are a reliance on rain-fed growing due to poor irrigation infrastructure, inadequate transport infrastructure, and competition from illegally imported edible oils.

Strengths

• Established agro-processing capacity.
• In general, a favourable climate with an abundance of water and fertile soil for the cultivation of a wide range of agricultural products.
• Low-wage labour available.
• Support for the sector from the government.

Weaknesses

• Highly dependent on imports, from equipment to inputs which makes the sector susceptible to currency fluctuations.
• Inadequate transport infrastructure adds costs to exports, reducing competitiveness.
• Limited access to credit by smallholder farmers and the high cost of finance.
• Management and technical skills shortages.
• Most crops are grown using a rain-fed production system and limited mechanisation.
• Most small-scale farmers cannot afford production inputs such as fertiliser, pesticides and improved seeds.

Opportunities

• Cashew Infrastructure Development Project.
• Government assistance to emergent farmers.
• Government investment in irrigation schemes.
• Investment in oilseeds now that customs duty on semi-processed edible oil was raised in 2017.

Threats

• Continuing illegal imports of edible oils.
• Increasing deforestation and soil degradation.
• Termination of FISP could lead to large numbers of farmers not growing crops, because they cannot afford production inputs.

Outlook

According to the World Bank’s Macro Poverty Outlook report, normal rainfall levels are predicted during 2017 and Zambia’s agricultural sector is expected to grow by 3.5% in 2017, 3.8% in 2018 and 3.7% during 2019. The Indaba Agricultural Policy Research Institute expects Zambia’s maize output to increase from the current 2.9Mt to more than 4Mt by 2025, mainly as a result of yield increases because of the greater use of fertilisers and improved seed. According to the Zambia Association of Manufacturing (ZAM), numerous opportunities for both small-scale and large-scale investments exist in most sub-sectors of the country’s agro-processing sector. Maybin Nsupila, CEO of the ZAM, commented, “The country needs to adopt a robust and vibrant strategy that will develop the manufacturing industry in the country by further exploiting agricultural productivity through creating deliberate linkages and value chains that will not only create a readily available market for farmers, but as well, grow the manufacturing industry in the country.”

Read More..
The Agri-Business Sector in Zambia 2017

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Agri-Business Sector in Zambia 2019-07-23

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Agri-Business Sector in Zambia 2014-11-25

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 16
4.1. Local 16
4.1.1. Corporate Actions 26
4.1.2. Regulations 26
4.2. Continental 28
4.3. International 28
5. INFLUENCING FACTORS 29
5.1. Government Support 29
5.2. Economic Environment 31
5.3. Technology, Research and Development (R&D) and Innovation 31
5.4. Environmental Concerns 32
5.5. Labour 32
5.6. Imports of Edible Oils 33
6. COMPETITION 34
6.1. Barriers to Entry 34
7. SWOT ANALYSIS 35
8. OUTLOOK 35
9. INDUSTRY ASSOCIATIONS 36
10. REFERENCES 36
10.1. Publications 36
10.2. Websites 37
COMPANY PROFILES 39
AFGRI OPERATIONS (PTY) LTD 39
AFRICA FEEDS ZAMBIA LTD 43
AFRICAN CROPS LTD 45
AMATHEON AGRI ZAMBIA LTD 47
AMIGO FOODS LTD 49
ANTELOPE WHOLESALE MERCHANTS LTD 50
CARGILL ZAMBIA 2009 LTD 51
CBL AGRI ZAMBIA LTD 54
GOUROCK INDUSTRIES LTD 55
KHAL AMAZI LTD 57
MOUNT MERU MILLERS ZAMBIA LTD 59
MRI SEED ZAMBIA LTD 60
MUNALI COFFEE LTD 62
NATIONAL MILLING CORPORATION LTD 63
NORTHERN COFFEE CORPORATION LTD 65
NUTRI FEEDS (PTY) LTD 66
NWK AGRI-SERVICES LTD 68
OMG GROUP HOLDINGS LTD 70
PANNAR SEED (ZAMBIA) LTD 72
PIONEER DUPONT ZAMBIA LTD 74
SEED CO ZAMBIA INTERNATIONAL LTD 75
SIMBA MILLING LTD 77
SPECIALITY FOODS (ZAMBIA) LTD 78
SUPERIOR MILLING COMPANY LTD 80
UNIFIED CHEMICALS ZAMBIA LTD 82
YATU FOODS LTD 84
YORK FARM LTD 85
ZAFFICO TEA COMPANY LTD 86
ZAMANITA LTD 87
ZAMBEEF PRODUCTS PLC 88
ZAMBIA SUGAR PLC 93
ZAMPALM LTD 96

Introduction

This report focuses on the growing of crops, market gardening and horticulture as well as the manufacture of edible oils, particularly cooking oil. More than 1 million smallholder households grow crops in Zambia. The country is also home to around 1,500 large-scale commercial farmers. The agricultural and agro-processing sectors are key elements of Zambia’s economy and contribute 13% and 11%, respectively, to GDP. Zambia currently produces more than 500,000 tons of soybean, cotton, sunflower and groundnut, which are used to produce edible oils and other products. In addition, it has a nascent palm oil industry following a recent large investment by ZamPalm, with production set to start at the end of 2014. The country consumes an estimated 90,000 tons of cooking oil annually but produces only about 25,000 tons, mostly from soybeans. Imports comprise the bulk of Zambia’s cooking oil market. There has been a recent surge in imports of cheap edible oils from Asia and Africa, alongside concern over customs fraud. The Zambian government has acceded to calls from agricultural producers and manufacturers to raise the import duty on edible oils in 2015.

Strengths

• Established production and processing capacity.
• Government incentives.
• Has an ideal climate for the cultivation of flowers.
• One of the best locations in the world to grow sugar cane in terms of quality and yield.
• R&D facilities available.
• Vast land resources.

Weaknesses

• Currency fluctuations
• Distance to global markets.
• High cost of air freight.
• High cost of finance within the sector.
• Inadequate infrastructure and agronomy extension services.
• Lack of access to electricity and unreliable electricity supply.
• Lack of transport infrastructure, with the poor condition of roads and the long distances to remote areas adding to the cost of inputs and the price of goods.
• Management and technical skills shortages.
• Small domestic market and production volumes.

Opportunities

• Demand for vegetables and flowers from the emerging middle class in Zambia.
• Exports facilitated by trade agreements and depreciated Kwacha.
• Higher import duties on refined edible oil in 2015.
• Incentives for farmers with expertise from other countries.
• Potential for diverse crop production.
• Re-establishment of a commodities trading exchange.

Threats

• Cheap imports and customs fraud.
• Continuing subsidised production in other countries.
• Deforestation and soil degradation.
• Diversion of oil seed crops to biofuels.
• Increasingly stringent sanitary and phytosanitary measures for exporters.
• Unpredictable weather conditions.

Outlook

Zambia has the potential to produce significantly higher quantities of edible oil feedstock. This would mean the country could meet domestic demand, replace imports, export in bulk to regional markets and supply high-value commodities globally. To do so, it needs to enhance the supply of edible oil feedstock from smallholders to supplement commercial production. Cheap and unregulated imports are the immediate problem facing Zambian edible oil producers, who, since 2013, have also faced new competition in the form of new crushing capacity. Those companies that are vertically integrated are able to withstand some of the sector’s challenges more easily via strong backward linkages. Zamanita, the industry leader, expects a modest 3% soybean price rise in 2015, which should encourage higher utilisation of crushing capacity. The agricultural sector has the potential to become the leading sector for economic transformation and employment creation so the government is expected to continue with agricultural reforms in the medium term. Through its land development programme the government is opening up new farming blocks for commercial development and expansion of the agricultural sector, but for the sector to reach its full potential, the following issues need to be addressed:
• Access to reliable and stable electricity, which is critical in ensuring constant food production;
• Access to reliable and constant water supply for production;
• A system of reliable feeder roads linking rural and urban areas; and
• Access to qualified local labour.

The Agri-Business Sector in Zambia 2014

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Agri-Business Sector in Zambia 2019-07-23

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Agri-Business Sector in Zambia 2017-07-01

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 4
2.2. Geographic position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 17
4.1.2. Regulations 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 22
5.1. Economic Environment 22
5.2. Input Costs 23
5.3. Government Support 23
5.4. Information Technology and Technology 24
5.5. Labour Resources 25
5.6. Weather 25
5.7. Biofuels 25
5.8. Genetic Engineering of Seeds 26
5.9. Environmental Concerns 26
6. COMPETITION 26
6.1. Barriers to Entry 27
6.2. Research and Development (R&D) and Innovation 27
7. SWOT ANALYSIS 28
8. OUTLOOK 29
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 31
COMPANY PROFILES – EDIBLE OILS 32
GOUROCK INDUSTRIES LTD 32
UNIFIED CHEMICALS ZAMBIA LTD 33
ZAMANITA LTD 34
ZAMBEEF PRODUCTS PLC 36
COMPANY PROFILES – GRAINS, VEGETABLES & ANIMAL FEED 38
AFGRI CORPORATION LTD 38
AFRICA FEEDS ZAMBIA LTD 40
AFRICAN CROPS LTD 42
NATIONAL MILLING CORPORATION LTD 44
NUTRI FEEDS (PTY) LTD 46
OLYMPIC MILLING GROUP LTD 48
SIMBA MILLING LTD 49
YORK FARM LTD 50
ZAMBEEF PRODUCTS PLC 51
COMPANY PROFILES – SEEDS & HORTICULTURAL PRODUCTS 53
KHAL AMAZI LTD 53
MONSANTO SOUTH AFRICA (PTY) LTD 55
MRI SEED ZAMBIA LTD 57
PANNAR SEED (ZAMBIA) LTD 58
PIONEER DUPONT ZAMBIA LTD 60
SEED CO ZAMBIA INTERNATIONAL LTD 61
COMPANY PROFILES – FOOD PROCESSING COMPANIES 63
AMIGO FOODS LTD 63
NORTHERN COFFEE CORPORATION LTD 64
SPECIALITY FOODS (ZAMBIA) LTD 65
ZAMBIA SUGAR PLC 67
COMPANY PROFILES – COTTON 70
CARGILL ZAMBIA 2009 LTD 70
NWK AGRI-SERVICES ZAMBIA LTD 72