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agribusiness sector zimbabwe

The Agri-business Sector in Zimbabwe 2023

Charles Chinya | Zimbabwe | 31 October 2023

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Report Coverage

This report on the agribusiness sector in Zimbabwe includes information on crop, horticulture and livestock production and processing, trade, notable players, recent investments, corporate actions, government support and programmes, competition and barriers to entry. There are profiles of 21 companies including major players across the value chain such as National Foods , tea and horticulture companies such as Tanganda Estates and Ariston Holdings, sugar companies such as Hippo Valley Estates, Triangle Sugar and Starafrica, companies involved in tobacco such as BAT and Rift Valley Estates, and seed companies such as Seed Co and Agriseeds.

Introduction

• The agribusiness industry is one of Zimbabwe’s most important economic growth drivers together with mining and tourism.
• The sector has linkages to other industries such as food manufacturers.
• All farm land belongs to the state and farmers are issued with 99-year lease agreements.
• Major crops are tobacco, maize, cotton, and sugarcane.
• Agriculture represents 8.5% of GDP and provides employment and income to 60% to 70% of the population.
• Most agricultural land is farmed by smallholder farmers.
• The industry provides opportunities to supply tractors, planters, harvesters, irrigation equipment and pesticides and for small stock-rearing and agro-processing such as manufacturing, drying, salting and preservation.

Trends

• Continuous training for employees in crop production and agro-processing.
• Diversification and innovation of processed products for the markets.
• Diversification of crops under production.
• Irrigation rehabilitation and expansion.
• Promotion and adoption of research that improves productivity of seed and animal varieties.

Opportunities

• Agro-processing including drying, salting and preservation methods.
• Availability of land particularly for smallholder farmers.
• Manufacture of irrigation equipment and pesticides.
• Small stock rearing particularly goats.
• Supply of farm mechanisation.

Challenges

• Declining soil fertility.
• Deteriorating transport and market infrastructure.
• High cost of utilities.
• High inflation, exchange rate volatility and high cost of funding.
• High inputs costs such as fertilisers and chemicals.
• Land tenure insecurity.
• Limited access to agricultural finance.
• Pest and disease outbreaks.
• Poor farming practices.
• Shortage of farm equipment (tractors, planters, and harvesters).
• Shortage of professional skills.
• Water scarcity.

Outlook

• Zimbabwe’s GDP growth is projected at 3.2% in 2023 up from 3.0% in 2022, anchored by agriculture, mining, and services.
• In the short-term, agriculture production input costs are expected to remain high.
• Cash crops such as tobacco and cotton are reported to be in good condition in the 2022/2023 planting season.
• The maize harvest is expected to increase in 2023.
• Major risks such as the uncertain global economic outlook, climate shocks, power shortages and exchange rate volatility will continue to undermine opportunities to increase agricultural output in Zimbabwe.

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The Agri-business Sector in Zimbabwe 2023

Full Report

R 20 000.00(ZAR) estimated $1046.67 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 732.67 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 5
3.2. Geographic Position 7
3.3. Size of the Industry 9
4. LOCAL 11
4.1. State of the Industry 11
4.2. Key Trends 17
4.3. Key Issues 17
4.4. Notable Players 17
4.5. Trade 22
4.6. Corporate Actions 24
4.7. Regulations 25
4.8. Enterprise Development and Social Development 26
5. AFRICA 27
6. INTERNATIONAL 31
7. INFLUENCING FACTORS 33
7.1. Unforeseen Events 33
7.2. Economic Environment 33
7.3. Power Outages 34
7.4. Labour 34
7.5. Environmental Issues 35
7.6. Technology, R&D, Innovation 36
7.7. Government Support 37
7.8. Input Costs 39
8. COMPETITIVE ENVIRONMENT 40
8.1. Competition 40
8.2. Barriers to Entry 40
9. INDUSTRY SUMMARY 41
10. OUTLOOK 42
11. INDUSTRY ASSOCIATIONS 42
12. REFERENCES 43
12.1. Publications 43
12.2. Websites 44
COMPANY PROFILES 51
Agri-Milling (Pvt) Ltd 51
Agriseeds (Pvt) Ltd 53
Ariston Holdings Ltd 55
British American Tobacco Zimbabwe (Holdings) Ltd 58
Cairns Foods Ltd 61
Cotton Company of Zimbabwe Ltd (The) 63
Eastern Highlands Plantations Ltd 66
Hippo Valley Estates Ltd 68
National Foods Ltd 71
Parrogate Zimbabwe (Pvt) Ltd 75
Powerful Grand Industries (Pvt) Ltd 77
Profeeds (Pvt) Ltd (Zimbabwe) 79
Pure Oil Industries (Pvt) Ltd 82
Quton Seed Company (Pvt) Ltd 84
Rift Valley Corporation Ltd 86
Seed Co Ltd 89
Starafrica Corporation Ltd 92
Surface Wilmar (Pvt) Ltd 95
Tanganda Tea Company Ltd 97
Triangle Sugar Corporation (Pvt) Ltd 100
United Refineries Ltd 102