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The Growing of Crops and Horticulture in Zimbabwe 2016

Alex Conradie | Zimbabwe | 11 March 2016

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Report Coverage

Horticulture and the Growing of Crops in Zimbabwe describes the local agricultural sector, the impact of the drought which has resulted in 26% of the population suffering from starvation, and factors influencing the success of the sector. The report profiles ten major players including sugar cane producer, Hippo Valley Estates Ltd, and sugar and ethanol producer Triangle Sugar Corporation Ltd which employs more than 11,800 people at its mill, refinery and ethanol plant. Also profiled are Seed Co Zimbabwe (Pvt) Ltd, which produces 29,018 tons of seed per annum, and Cottco Holdings Ltd, which has five established cotton ginneries and 25 depo

Introduction

This report focuses on the growing of crops and horticulture in Zimbabwe. The agricultural sector forms the backbone of the country’s economy by underpinning economic growth, food security and poverty eradication. According to World Bank data, agriculture contributed around 14% of GDP during 2014, while more than 60% of Zimbabwe’s population depend on agriculture for their employment. During January 2015, the agricultural sector contributed 21% to the country’s export earnings. High inputs costs, low prices for most commodities, the reliance on erratic rainfall, electricity shortages and the lack of finance for farmers are some of the problems confronting Zimbabwe’s agricultural sector.

Strengths

• Availability of agricultural expertise in the form of former commercial farmers operating as consultants.
• Zimbabwe has an ideal climate and fertile soils for the cultivation of various crops.
• Zimbabwe is a globally competitive sugar producer.
• Zimbabwe\'s flue-cured tobacco is of higher quality and achieves higher selling prices than the burley tobacco grown in neighbouring countries.

Weaknesses

• Current infrastructure and equipment is dilapidated and there is limited access to the latest technologies.
• Existing smallholder irrigation schemes are performing poorly and most smallholders cannot afford irrigation systems.
• Farmers have difficulty obtaining good quality seed and are unable to afford pesticides.
• Farms are often long distances from markets or processors.
• Lack of a clear agriculture and land policy.
• Lack of investment in the sector.
• Non-functional cold chain means that the quality of many vegetables and fruit is inferior.
• The contract system is not always beneficial to either party.

Opportunities

• Increased availability of land to small-scale farmers.
• The government’s provision of farming inputs.
• Tongaat Hulett needs more smallholders to take up sugar cane farming.

Threats

• Continuing electricity shortages.
• Continuing lack of finance for farmers as banks remain reluctant to lend to new farmers.
• Increasing competition from imports.
• Increasing production costs.
• Low international commodity prices.
• The continuing drought.

Outlook

Zimbabwe’s real GDP growth is expected to improve to 2.8% in 2016, according to the World Bank’s latest Global Economic Prospects report. The mining sector, especially gold production, which represents 12% of export income, is forecast to continue to drive economic growth, but the agricultural sector’s contribution to the economy is expected to be moderate, due to unfavourable weather conditions and low world commodity prices. According to analysts, the revival of Zimbabwe’s agricultural sector will require the collective participation of the government and the private sector. Some of the solutions proposed include the expansion of contract farming, the re-establishment of a commodity exchange, the creation of public private partnerships or joint ventures between the government and the private sector, and the co-ordination of donor projects run by development partners such as the EU, Care International, the UK\'s Department for International Development, FAO and World Vision.

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The Growing of Crops and Horticulture in Zimbabwe
The Growing of Crops and Horticulture in Zimbabwe 2016

Full Report

R 1 900.00(ZAR) estimated $108.87 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 76.21 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Value Chain 2
2.2. Geographic Position 7
3. SIZE OF THE INDUSTRY 8
4. STATE OF THE INDUSTRY 14
4.1. Local 14
4.1.1. Corporate Actions 17
4.1.2. Regulations 18
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 21
5.1. Economic Environment 21
5.2. Rising Input Costs 21
5.3. Lack of Credit 21
5.4. Government Support 22
5.5. Foreign and Private Sector Aid 23
5.6. Environmental Concerns 24
5.7. Labour Resources 24
5.8. Technology, Research and Development (R&D) and Innovation 25
6. COMPETITION 26
6.1. Barriers to Entry 26
7. SWOT ANALYSIS 27
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 30
COMPANY PROFILES 32
Ariston Holdings Ltd 32
British American Tobacco Zimbabwe Holdings Ltd 36
Cottco Holdings Ltd 40
Eastern Highlands Plantations Ltd 44
Hippo Valley Estates Ltd 45
Parrogate Zimbabwe (Pvt) Ltd 48
Quton Seed Company (Pvt) Ltd 50
Rift Valley Corporation Ltd 52
Seed Co Zimbabwe (Pvt) Ltd 56
Triangle Sugar Corporation Ltd 58
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