Horticulture_Competitiveness_Strategy_Development_edited_30Sept_2013.pdf

Page%1%of%54%

DRAFT&DOCUMENT&CIRCULATED&FOR&COMMENTS&AND&ADDITION.&SHOULD&NOT&BE&SHARED&

WITHOUT&PERMISSION&OF&HPC&

Zimbabwe&Horticulture&Industry& Competitiveness&Strategy&

2013M2023&

First%Draft%

PREPARED&BY&&

DOMINIC&MUBVUTA&

(HORTICULTURE&PROMOTION&COUNCIL&TECHNICAL/MARKETING&SPECIALIST)&

EMAIL:&& &dmubvuta@yahoo.com&&&&&&

CELL:&& 0772444295&

Draft%document%for%initial%circulation%to%people%in%the%horticulture%industry%for%comments)%

Page%2%of%54%

Contents!

Chapter%1:%Context%setting%...........................................................................................................................%5%

1.% Economic%Background%......................................................................................................................%5%

2.% Development%of%the%Horticulture%Sector%in%Zimbabwe%....................................................................%5%

2.1%%Past%performance%trends%of%horticulture%in%Zimbabwe%.................................................................%5%

3.% Process%leading%to%strategy%document%.............................................................................................%9%

Chapter%2.%Strategy%Alignment%to%National%and%Regional%Policies%for%Economic%Development%................%12%

1.% The%Medium%Term%Plan%(2011Q2015)%.............................................................................................%12%

2.% The%Comprehensive%Agriculture%Policy%Framework%(2012Q2023)%..................................................%13%

3.% The%Zimbabwe%Agriculture%Investment%Plan%(ZAIP)%(2013Q2017)%...................................................%14%

4.% Alignment%to%international%and%regional%trade%policy%....................................................................%15%

5.% Alignment%to%regional%and%International%SPS%agreements%.............................................................%16%

Chapter%3:%Strategy%Framework%.................................................................................................................%17%

1.% Period%of%strategy%..........................................................................................................................%17%

2.% Vision%of%the%horticulture%industry%.................................................................................................%17%

3.% Target%Markets%and%growth%objectives%..........................................................................................%17%

4.% Strategy%objectives%for%value%chain%development%..........................................................................%17%

Chapter%4:%Analysis%of%the%local,%regional%and%international%markets%........................................................%18%

1.% Requirements%for%the%domestic%and%regional%market%....................................................................%18%

2.% Requirements%of%the%international%market%....................................................................................%21%

Chapter%5:%Strategy%objectives%and%implementation%activities%..................................................................%23%

1.% Improved%access%to%finance%across%the%value%chain%.......................................................................%23%

2.% Competitiveness%in%local,%regional,%and%international%markets%.....................................................%23%

3.% Adoption%of%quality%standards%.......................................................................................................%23%

3.1%Improve%product%quality%through%adoption%of%quality%standards%and%certification%.....................%23%

3.2%Development%of%an%industry%code%of%practice%manual.%................................................................%24%

4.% Improved%production%and%productivity%through%training%across%the%value%chain.%.........................%25%

5.% Development%of%market%information%system%................................................................................%25%

6.% Integration%of%smallholder%farmers%in%horticulture%markets%..........................................................%25%

Chapter%6.%Proposed%Implementation%Plan%...............................................................................................%30%

1.% Development%of%a%local%standard%customized%to%GLOBALGAP’s%localgap%standard%.......................%30%

2.% Development%of%a%horticulture%code%of%practice%............................................................................%32%

Page%3%of%54%

3.% Development%and%implementation%of%a%market%information%system%............................................%32%

4.% Proposed%Action%Initiative%working%groups%....................................................................................%32%

5.% Proposed%strategy%implementation%framework%............................................................................%33%

6.% Role%of%stakeholders%in%developing/implementing%strategy%..........................................................%35%

Chapter%7.%Horticulture%coordination%frameworks%in%other%countries%.......................................................%37%

1.% Coordination%framework%in%Kenya%.................................................................................................%37%

2.% Coordination%framework%in%South%Africa%.......................................................................................%39%

3.% Coordination%framework%in%India%...................................................................................................%40%

4.% Coordination%Framework%in%Tanzania%............................................................................................%41%

5.% Coordination%framework%in%Rwanda%..............................................................................................%41%

6.% Coordination%framework%in%Ethiopia%.............................................................................................%42%

7.% Pros%and%Cons%of%the%different%coordination%frameworks%.............................................................%43%

Chapter%8.%Proposed%horticulture%industry%coordination%framework%in%Zimbabwe%..................................%45%

1%Review%of%the%historical%Role%of%the%Horticultural%Promotion%Council%................................................%45%

2%Future%coordinating%role%of%HPC%.........................................................................................................%47%

3%Coordinating%role%of%Government%.......................................................................................................%47%

4%Proposed%coordinated%mechanism%in%Zimbabwe%...............................................................................%47%

Annexes%.....................................................................................................................................................%48%

Page%4%of%54%

List!of!Tables!

Table%1%Sector%Performance%(%%growth):2009Q2015%....................................................................................%5% Table%2%Consultative%meetings%held%after%initial%strategy%presentation%.....................................................%10% Table%3%Performance%of%horticultural%suppliers%against%LOCAL%key%purchase%criteria%...............................%18% Table%4%Performance%and%rating%of%Zimbabwean%suppliers%by%South%African%purchasers%on%key%purchase% criteria%........................................................................................................................................................%20% Table%5%Timeline%for%the%development%of%horticulture%standards%.............................................................%31% Table%6%Tasks%and%timelines%for%the%development%of%the%horticulture%code%of%practice%............................%32% Table%7%Tasks%and%timelines%for%the%development%and%implementation%of%a%market%information%system%32%

List!of!Figures%

Figure%1%Volume%of%Zimbabwe%Horticulture%Exports,%1986Q2010%................................................................%7% Figure%2%%Value%(US$%‘000)%of%Zimbabwe%Horticulture%Exports,%1986Q2010%.................................................%7% Figure%3%South%Africa%Trade%balance%with%Zimbabwe%for%fruits%and%vegetables%..........................................%8% Figure%5%Spectrum%of%Regulatory%and%market%requirements%in%agri%food%systems%....................................%28% Figure%6%Proposed%Strategy%Implementation%and%Management%Framework%............................................%34%

Page%5%of%54%

Chapter!1:!Context!setting!

1. Economic!Background!

Zimbabwe%is%an%agricultural%economy,%and%although%the%contribution%of%agriculture%to%GDP%has%declined% over%time%(Table%1),%the%sector%remains%an%important%contributor%to%GDP,%foreign%exchange,%employment% and% livelihoods.%Agriculture%contributes%16%%to% total%export% revenue,%25%%to% formal%employment,%and% livelihoods%to%over%70%%of%rural%population.%It%provides%more%than%60%%of%the%inputs%required%by%the%agro% processing%industry%(Ministry%of%Finance,%2013).%%

TABLE!1!SECTOR!PERFORMANCE!(%!GROWTH):2009O2015!

Sector$ 2009$ Actual$

2010$ Actual$

2011$ Actual$

2012$ Est.$

2013$ Proj$

2014$ Proj$

2015$ Proj$

Agriculture,% hunting% and% fishing%

21.0% 34.8% 5.1% 4.6% 6.4% 6.4% 6.1%

Mining%and%quarrying% 33.3% 60.1% 25.1% 10.1% 17.1% 22.0% 15.0% Manufacturing% 10.0% Q4.0% 15.0% 2.3% 1.5% 3.2% 2.8% Electricity%and%water% 1.9% 19.1% 7.8% 0.3% 2.2% 6.6% 5.4% Construction% 2.1% 5.4% 6.2% 4.9% 6.2% 5.2% 5.2% Finance%and%insurance% 4.5% 5.6% 2.0% 5.1% 6.0% 7.5% 6.3% Real%Estate% 2.0% 5.4% 3.1% 4.9% 6.2% 5.2% 5.2% Distribution,% hotels% and% restaurants%

6.5% 8.8% 4.3% 3.9% 4.0% 4.6% 4.2%

Transport% and% communication%

2.2% 20.5% 18.7% 5.8% 3.4% 2.6% 2.7%

Public%Administration% 2.0% 0.0% 4.8% 3.0% 2.0% 1.2% 1.0% Education% 2.8% 0.5% 0.5% 1.4% 0.5% 1.0% 1.3% Health% 3.2% 15.8% 10.0% 2.5% 2.0% 3.0% 4.0% Domestic%Services% 2.2% 6.7% 0.4% 1.5% 1.5% 1.5% 2.0% Other%Services% 2.3% 14.6% 10.9% 5.0% 2.5% 2.5% 3.0% GDP$at$Market$prices$ 5.4$ 9.6$ 10.6$ 4.4$ 5.0$ 6.3$ 5.5$ Source:%Ministry%of%Finance,%2013.%Budget%Statement%

2. Development!of!the!Horticulture!Sector!in!Zimbabwe!

Zimbabwe’s% horticultural% subsector% is% extremely% diverse.% The% main% commodities% included% in% the% subsector%are% flowers% (primarily% for%export),%vegetables% (for%export%and%domestic%sales),%and%fruits% (for% export% and% domestic% markets).% Historically,% the% horticultural% subsector% has% generated% significant% amounts%of% foreign%exchange%and%accounted% for%a% large% share%of%Zimbabwe’s%GDP.%Horticulture% is% the% second%largest%foreign%exchange%earner%after%tobacco.%% 2.1!!Past!performance!trends!of!horticulture!in!Zimbabwe!

The%horticultural%industry%in%Zimbabwe%grew%rapidly%from%the%1980s%through%the%1990s.%The%main%drivers% of%this%growth%in%the%horticultural%industry%were%large%scale%commercial%growers.%At%the%time,%there%was% an%estimated%4,000%large%scale%commercial%growers%in%the%country.%%Small%scale%growers%also%significantly%

Page%6%of%54% contributed% to% the%export%market.% In% 2000,% it%was% estimated% that% 4,000% small% scale% growers%providing% 10%%of% total% production%were% participating% in% the% export%markets% through% outQgrower% schemes% (Heri,% 2000).% According% to% the% same% source% some% of% the%major% reasons% for% the% industry% growth% during% this% period%were:% ! Improved%viability%over%traditional%crops% ! Minimum%regulatory%impediments% ! Shared%vision%between%government%and%industry% ! MarketQdriven%production%strategy% ! High%profile%image,%especially%in%Holland%and%the%UK% ! Good%track%record%of%quality%and%service% ! Good%infrastructure%in%addition%to%abundant%land%and%huge%potential%for%irrigation%water% ! Favourable%and%diverse%climate%that%enables%production%of%a%wide%range%of%crops%year%round% ! Existence%of%effective%grower%based%institutions.%

The%horticulture% industry% contributed%between%3.5% to%4.5%%of% the%Gross%Domestic%Product% (GDP),% and% was% second% to% tobacco% in% foreign% currency% earnings% in% the% agriculture% sector.% The% horticulture% export% industry% grew% from% a% total% value% of% US$3.5%million% in% the% 1985/86% season% to% about% US$32%million% in% 1990/91.%The%industry%peaked%with%a%value%of%about%US$143%million%in%the%1998/99%season.%From%2000% the% industry%started% to%decline,%and%by%2005%exports%had%gone%down%to%about%US$72%million.% In%2009,% export% value%was% further%down% to%US$40%million,% and% this%negative% trend%has% continued.% The% industry% was% projected% to% export% about%US$39%million%worth% in% 2010.% Figures% 1% and% 2% show% the% trends% in% the% export%volumes%and%values%for%citrus,%flowers%and%fresh%produce.%

Page%7%of%54%

FIGURE!1!VOLUME!OF!ZIMBABWE!HORTICULTURE!EXPORTS,!1986O2010$

Source:(CIBER(Report,(HPC(

FIGURE!2!!VALUE!(US$!‘000)!OF!ZIMBABWE!HORTICULTURE!EXPORTS,!1986O2010$

Source:(CIBER(Report,(HPC(

Page%8%of%54%

The% graph% above% shows% that% horticultural% exports% have% continued% to% decline% despite% the% general% recovery% in% the% economy.% According% to% the% CIBER% analysis% for% the% horticultural% subsector% (ZimQACP,% 2010),% key% factors% that% have% contributed% to% the% decline% in% horticultural% exports% include% increasing% transport% costs,% limited% access% to% credit,% and% the% high% cost% of% capital.% The% horticultural% sector,% being% capital% intensive,% requires%high% investment%costs%per%unit%area.%Data% from%2011%has%begun% to%show%an% upward%trend%in%export%performance%(ITC).%

In%addition%to%declining%export%performance,%Zimbabwe%is%not%competitive%on%the%local%market,%as%it%now% imports% most% of% the% vegetables% which% used% to% be% produced% and% supplied% locally.% Wholesalers% and% importers% consulted% during% the% market% assessment% study% indicated% that% imports% include% beetroot,% celery,% leeks,% garlic,% bringals% (eggfruit),% % baby% corn,% sweet% corn,% mushrooms,% sweet% potato,% broccoli,% cauliflower,% onions,% cucumbers% (ordinary% and% English),% potatoes,% tomatoes% and% carrots.% Products% imported%for% the%niche%markets% include%asparagus,%herbs,%patty%pans,%Brussels%sprouts,% fancy%cabbage,% fancy% lettuce,% and% the% peppers.% % The% main% fruits% imported% are% stone% fruits% (plums,% peaches,% and% nectarines),%pome%fruit,%pawpaws,%papaya,%mangoes,%pine%apples,%apples,%and%grapes.%% Figure%2%below%shows%that%during%the%period%2007Q2012,%there%was%a%huge%fruits%and%vegetables%trade% balance% in% favour%of%South%Africa,%based%on%data% from%the%Global%Trade%Atlas.% %The%value%of%vegetable% exports% from,% and% of% imports% to,% South% Africa% is% shown% in% annexes% 4% and% 5% respectively.% Similarly,% annexes%6%and%7%show%the%value%of%fruit%exports%from,%and%of%imports%to,%South%Africa.%

FIGURE!3!SOUTH!AFRICA!TRADE!BALANCE!WITH!ZIMBABWE!FOR!FRUITS!AND!VEGETABLES

Source:%Global(Trade(Atlas%

The% Horticulture% Task% Force% recognized% the% following% forces% that% will% be% shaping% the% growth% and% development%of%%%horticulture%in%Zimbabwe:%

Page%9%of%54%

i. uncompetitive%position%of%Zimbabwe%in%supplying%export%markets%in%Europe%due%to%high%freight% costs%and%logistic%complications%emanating%from%low%production%volumes;%

ii. expanding%markets% for% fresh% fruit% and% vegetables% in% domestic% and% regional%markets% ,% such% as% South%Africa%and%Tete%in%Mozambique,%%presenting%opportunities%for%Zimbabwe%growers;%

iii. adoption%of%regional%trade%agreements%(with%SADC%and%COMESA)%that%will%facilitate%movements% of%agricultural%produce%with%reduced%barriers%that%will%introduce%competitive%pressures%for%local% produce;%

iv. demand% for% quality% fruit% and% vegetables% in% the% local% (Zimbabwe)% market% as% the% economic% environment%improves;%

!The%challenges%for%the%Horticulture%Industry%are:%

i. Enhancing%the%quality%and%reliability%of%fresh%fruit%and%vegetable%produce%supply%in%Zimbabwe;%

At% present,% there% are% not% enough% quality% products% in% sufficient% quantity% or% of% a% suitable% quality% to% provide%the%basis%for%concerted%export%market%development%or%consolidation.%%

ii. Improving%and%strengthening%quality%assurance%and%certification%procedures%and%practices%in%line% with% regional/international%market% requirements% in%preparation% for% regional% trade%agreements% and%private%standards%in%destination%markets;%

Meeting% international% requirements% for% standardization% of% fresh% produce% quality% and% adoption% of% international% operating% standards% will% be% necessary% to% enhance% Zimbabwe’s% competitiveness% in% local,% regional% and%global%markets% given% the% thrust% to% remove%barriers% to% regional%movement%of% agricultural% produce.% Zimbabwean% new% and% smallholder% producers% are% not% yet% able% to%meet% the% requirements% of% these%markets.%

iii. Facilitating%the%development%of%smallholder%and%new%farmers%to%meet%the%quantity,%quality%and% standards%requirements%in%local%or%external%horticultural%markets;%%% The% horticulture% performance% in% Zimbabwe% has% declined,% and% this% decline% needs% to% be% addressed% in% terms%of:%

i. Demand(in(domestic(and(external(markets.( The%country%has%lost%its%domestic%and%external%markets%to%competitors.%

ii. ProBpoor(market(linkages.( Linking% smallholder% producers% to% markets% will% be% expected% to% have% effect% of% increased% production%of%produce%meeting%the%quality%requirements%of%the%market.%

iii. Income(and(employment(growth.((( Increased% production% and% productivity% of% quality% produce% as% demanded% by% the% market% is% expected%to%result%in%increased%income%and%employment%growth.%

3. Process!leading!to!strategy!document!

The% process% of% coming% up% with% this% strategy% document% is% a% result% of% wide% stakeholder% consultations% carried% out% during% the% Competitiveness% Impacts% of% Business% Environment% Reforms% (CIBER)% analysis,% horticulture% task% force% meetings,% % the% SPS% capacity% assessment% study,% as% well% as% the% Domestic% and% regional%market%assessment%study.%%

The%series%of%consultative%meetings%culminating%in%this%strategy%document%were%as%follows:%

Page%10%of%54%

• 1Q2%September%2011Q%Horticulture%CIBER%preparatory%meetings%

• 5Q6%September,%2011%Q%Horticulture%CIBER%preparatory%meetings%

• 7%September%%to%31%October2011Q%Horticulture%CIBER%Stakeholders%consultative%meetings%

• 02%November,%2011%–%Horticulture%CIBER%Feedback%presentation%to%stakeholders%

• 02%November,%2011%–%Formation%of%Horticulture%Task%Force%

• 15%November%2011%Q%%Horticulture%CIBER%Feedback%presentation%to%stakeholders%

• 14%February,%2012%Q%Horticulture%Task%Force%Meeting%

• 25%April,%2012%–%Horticulture%Task%Force%Meeting%

• 2%August%2012%–%Horticulture%Task%Force%meeting%

• 25%April%2013%–%Horticulture%Industry%consultative%meeting%

• 28%June%2013%–%Strategy%Preparatory%meeting%

• 8%August%2013%–%Presentation%of%the%first%draft%strategy%document16%August%2013%–%Presentation%of% strategy%to%Ministry%of%AMID%

• 23%August%2013%–%Presentation%of%strategy%to%ZFU%Mash%West%provincial%leaders%

• 28%August%2013%–%Presentation%of%strategy%to%horticulture%farmer%leaders%at%Harare%Agricultural%Show%

• 29% August% 2013% –% Presentation% of% strategy% to% ZFU% Mash% West% leaders% during% gender% training% workshop%

• 3%September%2013%–%Presentation%of%strategy%to%Manicaland%%horticulture%provincial%leaders%

• 5%September%2013%–%Presentation%of%strategy%at%ZFU%Mash%East%provincial%horticulture%meeting%

• 10%September%2013%–%Presentation%of%strategy%to%Manicaland%provincial%tree%crops%leaders%

Details% of% the% consultative%meetings% that%were% carried%out% to% further% develop% the% strategy% are% shown% below.%

TABLE!2!CONSULTATIVE!MEETINGS!HELD!AFTER!INITIAL!STRATEGY!PRESENTATION!

Date$ (2013)$

Meeting$objective$ Where$ Response$to$strategy$ No.$of$ participants$

8%August%% Initial%strategy%presentation% to%Task%force%for%feedback%

HPC% Strategy%accepted.%% 24%

16%August% Present%Strategy%to%MAMID% for%feedback%

MAMID%

Offices%

Strategy%accepted.% Incorporation%of%alignment%to% national/regional%policies%

10%

23%August% Present%strategy%to%ZFU% Mash%west%provincial% leaders%for%feedback%

Chinhoyi% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

28%

28%August% Present%strategy%to% horticulture%farmer%leaders% at%Harare%Agricultural%Show% for%feedback%

Harare% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

53%

29%August% Present%strategy%to%ZFU% Mash%West%leaders%during% gender%training%workshop% for%feedback%

Chinhoyi% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

38%

Page%11%of%54%

3% September%

Present%strategy%to% Manicaland%%horticulture% provincial%leaders%for% feedback%

Mutare% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

35%

5% September%

Present%strategy%at%ZFU% Mash%East%provincial% horticulture%meeting%for% feedback%

Murehwa% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

81%

10% September%

Present%strategy%to% Manicaland%provincial%tree% crops%leaders%for%feedback%

Mutare% Strategy%accepted.%In%line%with% their%areas%of%service%provision%

29%

Page%12%of%54%

Chapter!2.!Strategy!Alignment!to!National!and!

Regional!Policies!for!Economic!Development!

This%chapter%shows%the%alignment%of%the%strategy%to%the%different%national%and%regional%policies%for% economic%development.%In%doing%so,%an%analysis%will%be%made%of%how%the%strategy%objectives%contribute% towards%attainment%of%the%national%and%regional%policies.%%The%objectives%of%this%strategy%are:%

• Objective%1:Improved%access%to%finance%across%the%value%chain%

• Objective%2:%Competitiveness%in%the%local%and%external%markets%

• Objective%3:%Product%quality%improvement%(through%adoption%of%quality%%standards%and%certification,% and%code%of%conduct)%

• Objective%4:%Skills%Development%through%training%across%the%value%chain%

• Objective5:%Development%of%Market%information%system%

• Objective%6:%Integration%of%smallholders%producers%in%horticulture%

1. The!Medium!Term!Plan!(2011O2015)!

Zimbabwe’s% Medium% QTerm% Plan% (2011Q2015)% policy% on% agriculture% is% to% ensure% food% and% nutrition% security% at% household% and% national% level,% improve% agricultural% productivity,% increase% production% for% export,% strengthen% agricultural% financing% infrastructure% and% farmer% support% institutions,% promote% improved% natural% resources% conservation% in% the% production% systems% and% strengthen% research% and% extension%service%delivery%(FAOQZimbabwe%Country%Program%Framework,%2012Q2015).%The%Medium%Term% Plan%(MTP)%recognizes%the%private%sector%as%the%engine%for%economic%recovery.%%%

The% MTP% recognizes% the% importance% of% horticultural% production% to% Zimbabwe’s% export% generation% capacity%and%employment%creation%(Medium%Term%Plan,%2011Q2015,%page%110).%

Strategy%Alignment%to%Medium%Term%Plan%(MTP)%priorities%

MTP$priorities$ Contribution$to$MTP$per$strategy$objectives$ Objective$ 1$

Objective$ 2$

Objective$ 3$

Objective$ 4$

Objective$ 5$

Objective$ 6$

Infrastructure% Development% x% % % % x% x%

Employment%Creation% x% x% x% x% x% x% Human%Centred% Development% % % x% % % %

Macroeconomic%Stability% x% x% x% x% x% x% ICT%and%Science%and% Technology%Development%% % % % x% % %

Investment%Promotion% x% % % % % % Resource%Utilization%and% poverty%Reduction% % % x% x% x% x%

Gender%Mainstreaming%into% Economic%Activities% x% x% x% % x% x%

Page%13%of%54%

2. The!Comprehensive!Agriculture!Policy!Framework!(2012O2023)!

According%to%the%FAOQZimbabwe%Country%Programme%Framework,%2012Q2015,%Zimbabwe%does%not%have% a%functional%longQterm%agricultural%policy%as%the%one%that%was%crafted%in%1995%to%cover%the%period%up%to% 2020%was% rendered%nonQoperational%by% the% changes%brought%about%by% the% land% reform%programme.%A% draft%agricultural%policy,%the%Comprehensive%Agriculture%Policy%Framework%(2012Q2023)%is%currently%going% through%the%approval%processes.%%

The% Comprehensive% Agriculture% Policy% Framework% (2012Q2023)% outlines% the% vision% of% the% agriculture% sector% to% be:% ‘a! prosperous,! diverse! and! competitive! agriculture! sector,! ensuring! food! and! nutrition!

security!significantly!contributing!to!national!development’.!This%horticulture%competitiveness%strategy% contributes%to%this%vision.%

The% strategy% is% aligned% to% the% Comprehensive% Agriculture% Policy% Framework% (2012Q2023),% which% recognises%the%huge%potential%of%horticulture%for%agricultural%growth.%%The%policy%envisages%growth%in%the% sector,%and%its%projected%medium%term%growth%targets%for%the%period%2012Q2015%are%shown%below.%

Medium%term%horticulture%growth%targets% Year$ 2012$ 2013$ 2014$ 2015$ Volume$(‘000s$MT)$ 75% 80% 110% 150% Source:%Comprehensive%Agriculture%Policy%Framework%(2012Q2023)%

In% line% with% the% Comprehensive% Agriculture% policy% Framework% (2012Q2023),% the% horticulture% competitiveness% strategy% will% contribute% towards% fulfilling% some% of% the% policy% objectives% of% that% framework,%as%shown%below.%

Strategy%Alignment%to%Comprehensive%Agriculture%Policy%Framework%(2012Q2023)%objectives%

Comprehensive$Agriculture$ Policy$Framework$objectives$

Contribution$to$Agriculture$Policy$$Framework$per$strategy$objectives$ Objective$ 1$

Objective$ 2$

Objective$ 3$

Objective$ 4$

Objective$ 5$

Objective$ 6$

National%and%Household%food% and%nutrition%security% % x% x% x% % %

Maintaining%and%improving% existing%agriculture%resource% base% x% x% % x% x% x%

Income%and%employment% generation% % x% x% x% x% x%

Increase%agriculture’s% contribution%to%GDP% % x% x% x% x% x%

Contribution%to%sustainable% development%through% provision%of%home%grown% agricultural%raw%materials%

% x% x% x% x% x%

Expand%sector’s%contribution% to%national%balance%of% payments%

% x% x% x% x% x%

Page%14%of%54%

The% horticulture% competitiveness% strategy% is% also% in% line% with% the% four% major% elements% of% the% agricultural%policy.%These%are:%

• Productivity! and! growth! oriented:% The% horticulture% competitiveness% strategy% recognizes% the% need,% in% line%with%the%Comprehensive%Agriculture%Policy%Framework%(2012Q2032),% for%sustained% production% and% productivity% of% horticultural% products,% in% order% to% supply% enough% products% in% sufficient% quantity% and% quality% to% provide% the% basis% for% concerted% local% and% export% market% development%or%consolidation.%

• Proactive:% %The%horticulture%competitiveness%strategy% is%contributing%towards% % informing%policy% makers% and% implementers% on% programmes% and% projects% that% are% required% to% meet% the% horticulture%sector%objectives%

• Practical,!Feasible!and!attainable:!!The%strategy%realizes%the%need%for%the%horticulture%industry% to%grow,% in%an% incremental%and%realistic%manner,% from%the%current% low% level%of%production%and% productivity.%

• Participatory! and! responsive:! !The% horticulture% competitiveness% strategy% has% been% developed% through% a% process% of% wide% stakeholder% consultation,% in% line% with% this% element% of% the% Comprehensive%Agriculture%Policy%Framework.!

The% Comprehensive% Agriculture% Policy% Framework% (2012Q2032)% recognizes% the% importance% of% agricultural%legislation%and%regulation%in%providing%quality%agricultural%inputs%and%products%to%farmers% and%other%stakeholders%in%the%agricultural%value%chain.%It%pronounced%the%following%policy%objective:% ‘Adherence!to!internationally!accepted!quality!standards!for!agricultural!inputs!and!products’!

Some%of%the%policy%statements%made%under%this%objective%were%as%follows:%

• Facilitate%participation%in%for%international%standards%development%

• Enforce%compliance%with%local%and%international%sanitary%and%phytosanitary%standards.%

3. The!Zimbabwe!Agriculture!Investment!Plan!(ZAIP)!(2013O2017)!

The% Zimbabwe% Agriculture% Investment% Plan% (ZAIP)% (2013Q2017)% is% the% sector% development% plan% for% implementing% the% Comprehensive% Agriculture% Policy% Framework% (2012Q2032)% and% contributing% to% the% attainment%of%the%Zimbabwe%Medium%Term%Plan%(MTP)%(2011Q2015),%in%line%with%core%CAADP%principles% such%as%broad%stakeholder%consultation%and%participation,%accountability%and%coordination.% The% overall% objective% of% ZAIP% is% to% facilitate% sustainable% increase% in% production,% productivity% and% competitiveness% of% Zimbabwean% agriculture% through% building% capacity% of% farmers% and% institutions,% improving% the%quantity% and%quality%of%public,% private% and%development%partner% investment% and%policy% alignment.%%The%four%Intermediate%Result%Areas%of%ZAIP%are%as%follows:%

Intermediate(Result(Area(1:%Increasing%production%and%productivity%through%improved%management%and% sustainable%use%of%land,%water,%forestry%and%wildlife%resources%

Page%15%of%54%

Intermediate(Result(Area(2:%Increased%participation%of%farmers%in%domestic%and%export%markets%through% development%of%an%efficient%agricultural%marketing%system%and%an%enabling%environment%for%competitive% agricultural%production,%investment%and%trade.%

Intermediate(Result(Area(3:%Ensuring%food%and%nutrition%security%by%facilitating%a%cohesive%multiQsectoral% agricultural%response%

Intermediate(Result(Area(4:%Improving%agricultural%research,%technology%dissemination%and%adoption.%

For% increased% participation% of% farmers% in% domestic% and% export% markets,% some% of% the% sub% results% of% Intermediate%Result%Area%2%are:% Sub( result( area( 2:% Strengthening% of% the% capacity% of% key% institutions% in% agricultural% marketing% and% development%of%facilitating%legislation%in%the%area%of%agricultural%trade.% Sub( result(area(3:% Increased%access% to%agricultural% finance% services%and%value%of% agriculture% credit% and% facilitate%both%domestic%and%foreign%investment%in%the%agricultural%sector%with%emphasis%on%FDI%in%areas% of%huge%capital%outlays.% The% above% analysis% shows% that% the% objectives% of% the% horticulture% competitiveness% strategy% are% in% line% with%the%ZAIP%objectives,%intermediate%results%and%sub%results.%

4. Alignment!to!international!and!regional!trade!policy!

Policy% issue% 3% under% the% Comprehensive% Agriculture% Policy% Framework% is% on% “Taking! advantage! of!

regional! and! international! trade! agreements.’% % It% recognizes% that% Zimbabwe% is% a% member% of% the% Southern%African%Development%Community% (SADC)%and%the%Common%Market% for%Eastern%and%Southern% Africa% (COMESA)% and% is% a% signatory% to% the%World% Trade%Organization% (WTO).% % For% example,% under% the% COMESA% treaty,%Article% 129,% two%of% the%objectives% for% cooperation% in% agricultural% development%within% member%countries%are:%

• An%increase%in%the%productivity%of%crops,%livestock,%fisheries%and%forestry%for%domestic%consumption,% exports%within%and%outside%the%Common%Market%and%as%inputs%to%agro%based%industries;%and%

• Replacement%of%imports%on%a%regional%basis% This%is%in%line%with%the%proposed%objectives%of%the%horticulture%competitiveness%strategy.% In% addition,% Zimbabwe% is% eligible% for% special% and% preferential% treatment% providing% concessions% and/or% lesser% obligations% in% market% access,% tariff% and% other% areas% provided% for% in% several% bilateral% trade% agreements.% %It%was%noted%in%the%comprehensive%agriculture%policy%framework%document%that%the%Zimbabwe%has%yet% to% reap% full% benefits% from% these% arrangements,% mainly% due% to% supply% side% constraints% and% unfair% competition.% The% horticulture% competitiveness% strategy% seeks% to% enhance% the% production% and% productivity% of% quality% horticulture% products% as% required% by% the% market,% thus% contributing% towards% addressing%the%supply%side%constraints.%%

Page%16%of%54%

5. Alignment!to!regional!and!International!SPS!agreements!

Zimbabwe%is%a%signatory%to%regional%and% international%SPS%agreements,%such%as%for%COMESA,%WTO%and%

SADC.%

The%WTO%Agreement%on%the%Application%of%Sanitary%and%Phytosanitary%Measures%(SPS%Agreement)%seeks% to%strike%a%balance%between%the%need%to%ensure%that%a%country's%consumers%are%being%supplied%with%food% that%is%safe%to%eat%and%at%the%same%time,%the%need%to%ensure%that%strict%health%and%safety%regulations%are% not%being%used%as%an%excuse%for%protecting%domestic%producers%and%thus%restricting%international%trade.%

Under% the% COMESA% treaty,% Article% 132% paragraph% (d)% proposes% that% member% states% harmonize% their% policies%and%regulations%relating%to%phytoQsanitary%and%sanitary%measures%without%impeding%the%export%of% crops,%plants,%seeds,%livestock,%livestockQproducts,%fish%and%fishQproducts.% For%SADC,%access%to%international%markets%for%agricultural%products%requires%the%countries%to%benchmark% to%WTO/SPS%measures%aimed%to%protect%human,%animal%and%plant%health%and%to%prevent%entry,%spread% and%establishment%of%pest%and%diseases.%SADC%Member%States%have%so%far%not%harmonized%and%enforced% fully% regulations% on% SPS% measures% and% in% particular% on% Maximum% Residue% Levels% (MRLs),% which% constitute%an%important%technical%barrier%to%trade%within%and%outside%the%Region.%SADC%has%designed%the% Food% Safety% Capacity% Building% on% Residue% Control% (FSCBRC)% project% to% fill% in% the% gap% and% build% the% capacity%of%Member%States%to%set%a%comprehensive%control%system%framework%to%address%and%harmonize% WTO/SPS% standards% in% order% to% have% smooth% trade% of% agriQproducts% within% and% outside% the% region.% The%overall% objective% of% the% FSCBRC% project%is% to% promote% regional% trade% through% regional% integration% and% greater% access% by% SADC%Member% States% exporters% to% the% EU% and% world% markets% for% agricultural% products.%This%is%in%line%with%the%objectives%of%the%horticulture%industry%competitiveness%strategy.%

Page%17%of%54%

Chapter!3:!Strategy!Framework!

The% overall% objective% of% the% strategy% is% to% increase% the% competitiveness% of% Zimbabwe’s% horticulture% industry% in% the% local,% regional% and% international%markets.% % Competitiveness% in% the% local%market% implies% that%Zimbabwe%no%longer%needs%to%import%produce%during%those%times%when%such%produce%can%be%grown% locally.% Competitiveness% in% regional% and% international% markets% requires% accessing% new% markets% or% regaining%lost%markets.%

1. Period!of!strategy!

This%strategy%is%intended%to%guide%the%development%of%the%horticulture%industry%for%a%period%of%10%years,% from%2013%to%2023.%%

2. Vision!of!the!horticulture!industry!!

‘To$ be$ a$ vibrant$ and$ internationally$ competitive$ horticulture$ industry$ contributing$ to$ sustainable$development$through$import$substitution$and$export$development’$

3. Target!Markets!and!growth!objectives!

The%industry%stakeholders%have%identified%local,%regional%and%international%markets%for%the%growth%of%the% horticulture% industry,% in% accordance%with% the% vision%and%mission%of% the% strategy.%At% the%end%of% the%10% year% strategy% implementation% period,% the% industry% intends% to% have% achieved% the% year% 2002/3% export% output% in% terms% of% volume% and% value.% The% Horticulture% Promotion% Council% (HPC)% indicated% that% the% combined% export% volume% of% flowers,% produce% and% citrus% in% 2002% was% 81,883% metric% tonnes,% with% a% combined%value%of%US$124,502,000.%That%output%was%achieved%after%16%years%of%growth,% from%1986%to% 2002.%Industry%stakeholders%indicated%that%it%should%be%possible%to%achieve%this%growth%within%a%shorter% period% of% 10% years,% since% most% of% the% infrastructure% is% now% in% place.% Chapter% 4% presents% a% detailed% analysis%of%the%local,%regional%and%international%markets.%

4. Strategy!objectives!for!value!chain!development!

In% response% to% the% issues% raised% by% stakeholders,% the% strategy% objectives,% as% defined% by% industry% stakeholders%during%consultative%meetings,%are%listed%below.%These%are%elaborated%in%chapter%5.% Objective$1:$Improve$access$to$finance$across$the$value$chain$

Objective$2:$Competitiveness$in$local,$regional,$and$international$markets$

Objective$3:$Improve$product$quality$through$adoption$of$quality$standards$and$certification$$

Objective$ 4:$ Training$ across$ the$ value$ chain$ (e.g.$ efficiency$ of$ production,$ cold$ chain$ management,$use$of$chemicals,$etc).$$

Objective$5:$Development$of$market$information$system$

Objective$6:$Integration$of$smallholder$farmers$in$horticulture$markets$

Page%18%of%54%

Chapter! 4:! Analysis! of! the! local,! regional! and!

international!markets!

Value%chain%stakeholders%are%in%agreement%that%Zimbabwe%needs%to%be%competitive%in%the%local,%regional% and%international%markets.% In%order%to%access%the%regional%and%international%markets,%Zimbabwe%needs% to% meet% the% mandatory% and% voluntary% standards% required% by% those% markets,% in% addition% to% meeting% Zimbabwe’s%own%sanitary%and%phytosanitary%requirements.%This%chapter%will%provide%an%analysis%of% the% domestic%market%as%well%as%an%analysis%for%the%regional%and%international%markets.%

1. Requirements!for!the!domestic!and!regional!market!!

As%discussed%in%chapter%3,%the%industry%stakeholders%would%like%to%target%domestic%and%regional%markets,% in%addition%to%international%markets.%%

The%domestic%market%analysis%focuses%mainly%on%the%fruits%and%vegetables%subsectors%of%the%horticultural% industry.% In% Zimbabwe,% there% are% basically% no% commonly% agreed% upon% standards% for% produce% that% is% destined%for%the%local%market.%%The%main%vegetables%grown%for%the%domestic%market%include%the%brassicas% (e.g.%cabbages),%tomatoes,%onions,%and%potatoes.%%Most%of%the%vegetables%predominantly%destined%for%the% lower%end%of%the%market%are%sold%through%the%main%informal%Mbare%Musika%market%in%Harare%and%other% municipal%markets%located%in%urban%areas.%The%informal%markets%are%less%demanding%in%terms%of%quality% of% produce,% packaging% and% other% attributes% in% order% to% maintain% prices% at% levels% affordable% by% the% majority% of% the% population.% However,% there% is% increasingly% a% middle% income% class% that% is% now% more% demanding%in%terms%of%quality,%packaging%and%presentation%of%the%products.%These%types%of%products%are% supplied%in%the%formal%markets.%This%formal%value%chain%flows%from%producers%to%wholesalers%and%then%to% main%retail%outlets.%The%key%buyer%purchase%criteria% for% the% local%market%are%shown% in%the%table%below% (USAID/ZimACP,%2013).%%

TABLE!3!PERFORMANCE!OF!HORTICULTURAL!SUPPLIERS!AGAINST!LOCAL!KEY!PURCHASE!CRITERIA$

Criteria Performance Description Average Smallholder farmers rating

Average Large scale farmers rating

Variety& of& products& supplied&

Farmers& are& keen& to& try& new& crops& if& the& market& asks& for& them,& so& variety& can& be& grown&on&demand.&

2.8/5& 3.2/5&

Delivered&price& Zimbabwe&prices&are&considered& too&high& compared&to&South&Africa&

2.5/5& 2.5/5&

Delivery&lead&time& Depending&on&the&market,&some&require&2& to&3&days&if&the&supplier&is&new.&

2.4/5& 3.3/5&

Consistency&of&supply& Performance& depends& on& markets& supplied.&Performance&is&usually&not&good& for& one& time& suppliers& compared& to& contract& suppliers& who& normally& deliver& products&according&to&schedule&

2.2/5& 3/5&

Quality&of&produce& For& both& large& and& small& farmers,& there& are& farmers& who& deliver& extremely& very& good& quality,& but& also& some& that& deliver& extremely& very& poor& quality.& Some&

3.1/5& 3.3/5&

Page%19%of%54% wholesalers&reject&subMstandard&products.& Compliance& with& set& standards&

This&was& only& applicable& to& farmers&who& are& contracted& to& supply& specific& outlets,& otherwise& there& were& no& specific& standards&set&for&the&majority&of&suppliers&

2.6/5& 3.3/5&

Ability& to& meet& contractual& terms&

Most& wholesalers& and& retailers& do& not& have& written& contracts& with& local& suppliers.& Most& of& the& contractual& agreements&are&verbal&and&nonMbinding&to& both&parties.& For& contracted& outMgrowers,& side&marketing&can&be&a&problem.&

2.6/5& 3.1/5&

Ability& to& meet& volume& requirements&

Supply& far& exceeds& demand& on& general& crops.& Specific& needs& of& full& range& mean& there&is&always&short&supply.&

2.1/5& 2.8/5&

Overall& rating& (Average& for& all&criteria)&

& 2.5/5& 3.1/5&

Source: USAID/ZimACP Market assessment study.

From%the%table%above,%local%producers%are%generally%perceived%as%failing%to%adequately%supply%the%variety% and%quality%of%products% required%by% the% top%end%of% the%market,% and% this% has% led% to%many%wholesalers% sourcing%imports,%particularly%from%South%Africa,%in%order%to%meet%the%demand%in%the%local%market.%%Thus,% local%producers%need%to%improve%on%all%the%purchase%criteria%above%in%order%to%be%competitive%in%the%top% end%of%the%local%market.%Rapid%urbanization%and%per%capita%income%growth%are%driving%strong%growth%in% demand% for% marketed% fresh% produce% within% Africa.% The% growing% middle% class% stimulates% demand% for% healthier%foods%including%fresh%fruits%and%vegetables.%It%has,%however,%been%noted%that%demand%growth% will%be%more%rapid%for%fruits%than%for%vegetables%because%fruit%demand%is%comparatively%more%responsive% to% income% changes.% Local% and% regional%markets% have% also% been%observed% to% be% far% larger% than% export% markets%and%will,%therefore,%dominate%growth%in%marketed%quantities%and%values%over%the%next%20%years.% Assuming%a%consistent%pattern%in%the%rates%of%urbanization,%per%capita%income%growth,%income%elasticity% of%demand% for% fresh%produce,%and%current% size%of% local% and% regional% compared% to%global%markets,% it% is% predicted%that%the%local%and%regional%markets%will,%over%the%next%20%years,%provide%higher%annual%growth% in% demand% than% growth% in% exports% to% developed% countries.% This% is% mostly% linked% to% the% fact% that% expenditure%on% fresh%produce% rises%much%more% rapidly%with% income% in% these%countries% than% it%does% in% high%income%countries;%per%capita%fresh%produce%consumption%in%Africa%is%hardly%a%third%of%the%developed% country% levels.% In% particular,% Zimbabwe% has% one% of% the% lowest% food% budget% share% committed% to% fresh% produce,%at%6%%to%10%1,%and%this%implies%that%there%is%still%lot%of%room%for%further%growth.%

Key%buyer%purchase%requirements%for%the%regional%market,%as%represented%by%the%South%African%market,% are%shown%in%the%table%below.%%

1 USDA’s%Economic%Research%Service%(Regmi%and%Seale,%2010)%

Page%20%of%54%

TABLE!4!PERFORMANCE!AND!RATING!OF! ZIMBABWEAN!SUPPLIERS!BY! SOUTH!AFRICAN!PURCHASERS!ON!KEY!

PURCHASE!CRITERIA$

Criteria Performance Description Rating

Product&safety&and& traceability&

Importers& use& the& availability& of& third& party& accreditation& such& as& GLOBALGAP& as& a& proxy& for& a& supplier’s& to& provide& safe& and& traceable& food.& HACCP& certification& is& required& for& packhouse& facilities.& The& majority& of& Zimbabwean& suppliers& are& still& perceived&to&be&lagging&behind&their&South&African&counterparts&on&this&point.&

3/5&

Ability& to& meet& commodity& requirements&

Zimbabwean&growers&are&seen&as&limited&in&their&ability&to&provide&enough&volumes&to& cope&with&demand&peaks&in&South&Africa.&This&was&especially&mentioned&with&regards& to&strawberries,&mange& tout,&gooseberries&and&chillies.&Some& importers& indicated& that& there&is&no&awareness&on&what&Zimbabwean&growers&can&supply.&

3/5&

Supply&reliability&& Zimbabwean& suppliers& were& perceived& to& have& a& lower& reliability& rating& in& terms& of& consistency&of&supplies&and&ability&to&maintain&a&flawless&cold&chain&system.&Delays&at& the&border&were&cited&as&contributing&to&variations&in&the&delivery&condition&of&produce.& Importers&expressed&reservations&about&the&quality&of&cold&chain&facilities&

3&

Price& competitiveness&

Whilst&prices&for&Zimbabwean&suppliers&were&rated&as&competitive&compared&to&most& African& source& countries,& importers& indicated& that& the& high& cost& of& transportation& makes& it& more& costMeffective& to& source& from& South& Africa& and& as& a& result& the& Zimbabwean&option&is&only&considered&when&products&are&not&available&in&South&Africa&

3.5/5&

Quality&of&produce& The&quality&of&Zimbabwean&is&regarded&as&top&notch&and&comparable&to&that&supplied& by& top& growers& in& South& Africa.& Importers& are& confident& that& Zimbabwe& can& provide& produce&that&can&be&easily&reMexported&to&Europe&with&no&quality&glitches.&

4.5/5&

Source: USAID/ZimACP Market assessment study

Zimbabwean% suppliers% have% a% solid% reputation% for% quality% produce%but% tend% to% lag%behind% in% terms%of% their% ability% to% meet% volume% needs% of% customers,% consistency% of% supply,% price% competitiveness,% compliance%with%private%and%voluntary%standards%and%overall%reliability.%These%perceptions%are%held%using% South%African%suppliers%as%a%benchmark.%There%is%a%strong%need%for%Zimbabwean%fresh%produce%suppliers% to% invest% more% effort% towards% building% relationships% with% South% African% buyers% and% especially% demonstrating% the% industry’s% collective% ability% to% execute% on% supply% commitments% to% the% expected% standards% on% a% consistent% basis.% Apparently,% buyers% have% more% faith% in% the% Kenyan% horticulture% industry’s%capabilities%because%of%the%image%that%has%been%created%and%reinforced%through%performance.%

Entry%into%the%South%African%market%requires%compliance%to%the%Zimbabwean%SPS%requirements,%as%well% as% to% the% South% African% SPS% and% other%mandatory% and% voluntary% standards.% The%most% widely% applied% standard% in% South%Africa% is%GLOBALGAP%which% is,% so% far,% treated%as% the%most% comprehensive% standard% regime.% Import% agents% interviewed% indicated% that% compliance% with% the% standard% is% mandatory% for% all% produce%meant%for%reQexportation%though%it%is%not%always%required%for%commodities%meant%for%the%South% African% market.% Private% standards% also% take% the% form% of% inQhouse% and% storeQspecific% certification% requirements%such%as%Woolworths’%Farming%for%the%Future%scheme.%The%latter%group%of%standards%is%not% as% widespread% as%major% retail% chains% like% Pick% n% Pay,% Shoprite% and%Massmart% have% not% codified% their% safety%and%quality%standards%into%distinct%standard%regimes.%

Page%21%of%54%

The%sanitary%and%phytosanitary%requirements%of%Zimbabwe%and%South%Africa%should%be%adhered%to.%For% example,%certain%produce%from%Zimbabwe%cannot%be%allowed%into%South%Africa%because%of%the%fruit%Fly% Bactrocera( invadens.% %Regulatory%standards% in%South%Africa%are%contained% in%the%Agricultural%Standards% Act% (Act$ No.$ 119$ of$ 1990)$ and% these% standards% apply% to% both% local% and% imported% fresh% produce% commodities.%This%act%came%into%force%on%the%September%1,%1991.%The%objective%of%the%act%is%to%regulate% the% sale% locally% and% export% of% specific% agricultural% products% by% requiring% that% agricultural% products% be% graded%or%classed%according%to%standardized,%objective%and%measurable%minimum%quality%standards,%be% marked%or%labeled%accordingly,%and%be%packed%in%a%certain%manner.%%

2. Requirements$of$the$international$market$ As% discussed% in% chapter% 3,% the% industry% stakeholders% would% like% to% target% international% markets,% in% addition%to%domestic%and%regional%markets.%%

Entry% into% the% international% markets% requires%meeting% the%mandatory% requirements% of% Zimbabwe,% as% well% as% the% mandatory% and% voluntary% standards% of% the% export% market.% % The% European% Union% is% Zimbabwe’s% biggest% market% for% horticultural% products,% accounting% for% 70%% of% vegetables% and% 50%% of% citrus%(USAID/ZimACP%market%assessment%study).%An%exporter%of%food%products%into%the%EU%needs%to%take% into% account% that% food% safety% is% the% most% important% requirement.% The% EU% has% laid% down% numerous% regulations%and%directives%that%aim%to%guarantee%that%only%safe%food%enters%the%EU%market.%The%basis%of% EU’s%food%safety%legislation%is%Regulation%(EC)%178/2002,%also%known%as%the%‘General%Food%Law’.%Behind% all% the% legislations% that% the% EU% established% to% guarantee% food% safety% lie% five% main% principles.% These% principles% are% anchored% in% the% General% Food% Law,% and% reflect% the% EU’s% philosophy% on% safe% food.% Understanding%these%principles%may%help%the%exporter’s%potential%to%gain%access%to%the%EU%market.%

Principle1:!Food!Safety!

Safety%is%the%most%important%ingredient%of%food%exported%to%the%EU.%Food%is%considered%unsafe%when%it%is%%

• Injurious$ to$ health:% Injuries% relate% to% probable% immediate,% short% term% and% long% term% effects% on% health% (including% on% future% generations),% probable% cumulative% toxic% effects% and% particular% health% sensitivities%of%a%specific%category%of%consumers%(e.g.%children);$

• Unfit$for$human$consumption:$When%the%food%is%unacceptable%for%human%consumption%according%to% its% intended%uses,%due%to%contaminations%caused%by%extraneous%matter,%putrefaction,%deterioration% or%decay.$

Based% on% these% two% criteria,% a% food% can% be% appointed% unsafe% even% when% it% complies% with% all% supplemental%safety% legislations%established%by%the%EU,%eg.%When%new%hazards%are%found%for%which%no% legislation%exist%yet.%

Principle!2:!Responsibilities!

All%actors%active%in%the%food%supply%chain%(production,%processing%and%distribution)%have%to%ensure%that% food%under%their%control%meets%the%EU%safety%requirements%at%all%times.%This%is%an%important%requirement% for%food%business%operators.%However,%the%EU%cannot%regulate%the%activities%of%food%business%operators% outside%the%EU.%In%principle,%it%is%the%EU%importer%who%is%responsible%that%the%food%he%brings%on%the%EU% market%complies%with%all%relevant%EU%legislations.%Ensuring%food%safety%at%the%final%market%is%as%important%

Page%22%of%54% as%ensuring%safety%at% the%beginning%of% the%supply%chain% (e.g%at% the%production%stage).%This% implies% that% one% is%expected%to%use%appropriate%hygiene%practices%that%assure%that%potential%biological,%chemical%or% physical%hazards%are%prevented,%eliminated%or%brought%down%to%an%acceptable%level%of%safety%(in%line%with% the%limits%laid%down%in%EU%legislation).%

Most% external% markets% will% require% that% one’s% products% and/or% processes% are% certified% by% an%…