Abstract
The objectives of
this study were to develop and present a detailed and clear picture of what
small and medium agro-processing systems require to effectively manufacture and
market processed products; and to review agro-processing service provision,
research and extension linkages in Zimbabwe. The study was implemented through a desk-review
of literature focusing on commodity-specific cases of agro-processing
enterprises. Informal discussions with
key players in agro-processing were also conducted.
Prior to Zimbabwe’s
independence in 1980, manufacturing, distribution and sales of agro-processing
equipment as well as processing of commercial agricultural products have been a
preserve of the large scale conglomerate companies. In the mid-1990s, there was
rapid growth of both formal and informal small and medium scale manufacturers
of equipment; a trend that could be attributed to the Economic Structural
Adjustment Programme (ESAP) implemented by the government then. This was
characterised by a dramatic increase in small and medium scale agro-processing
enterprises. A wider variety of processed food and non-food products became
available on the market.
Despite the resultant increase in the number of
agro-processors and the employment opportunities thereby created, the current
market forces and the prevailing economic environment tend to favour more
growth of medium scale enterprises by down-sizing of large scale processing
systems and upgrading of small scale processing enterprises. The loss of
business by large-scale processors has led to massive retrenchments and even
closure of factories whilst women clubs got disempowered by loss of individual
and co-operative agro-processing enterprises.
The Zimbabwe
agro-processing industry plays a vital role in the national economic
development and has potential to meet the local needs and export requirements. The
supporting infrastructure for this industry in terms of electricity supply,
through the government-funded rural electrification programme, and road and
telecommunication network, is well established. There are also well established
skills training programmes in manufacturing (tool making, welding), for rural
artisans and users. However, the
sector currently faces many challenges emanating from the poor performance of
the national economy, uncertainties that exist over access to both local and
foreign finances, limited research, limited technical advice, limited marketing
information and lack of reliable markets.
Key lessons that
emerged from the study are that equipment ownership (individuals, farmer groups
or entrepreneurs) has been left for people to decide without adequate technical
advice. Equipment costs are beyond the reach of individuals and the prevailing
economic environment favours technology access rather than ownership. One survival strategy being adopted by many large-scale
processors is sub-contracting medium-scale processors that meet the required
standards, to supply processed products in bulk for large-scale companies to
pack and market.
Literature on small
and medium scale agro-processing often leaves out meat, mopani worm, fish and non-food
products such as hides and skins, timber and medicinal plants. However, some people may argue that the areas
of timber and medicinal plants are more into natural resources than
agro-processing. Documented studies are
commodity-based such as grain milling, vegetable oil pressing. The case study
helped to collate and synthesise the scattered literature.
A key PHILA process
learning is that there is hidden agro-processing information and expertise
among technocrats that has been deliberately kept unpublished for commercial
purposes and people are reluctant to share this information. Studies of this type require good
connectivity to be able to access relevant and up-to-date information.
1.
Introduction
One of the major
policies of the Government of Zimbabwe (GoZ) at independence in 1980 was
“Growth with Equity” aimed at eliminating previous economic and social
disparities which existed along the racial divide. Although considerable effort
has been made towards social and economic stabilisation over the years, limited
progress has been made in achieving equitable distribution and growth in
agro-industrial development. The fast track land redistribution that the GoZ
implemented in 2000-2, has benefited thousands of indigenous farmers who
received land allocations under the resettlement models A1[1]
and A2.[2]
The resettlement exercise is expected to increase levels of agricultural
production as under-utilised land in large commercial farms is opened up for
farming activities, communal areas are de-congested and farm sizes are reduced
to manageable sizes. The World Food Programme has reported that the area
planted to cereals increased by 9% in the 2004/05 season with maize increasing
by 14% due to expansion of farming land (Elich, 2005). Though the new local farmers are currently
battling to raise production amid lack of funding, agricultural inputs and
commercial farming skills, given enough time there should be an increase in
productivity. Research has established that productivity increases
exponentially with decrease in farm size in all natural regions of Zimbabwe
(Elich, 2005).
As increased
agricultural production is envisaged, there is need to have proportionate
improvement in the agro-processing industry.
Agro-processing industries refer to those activities that transform
agricultural commodities into different forms that add value to the product.
Agro-processing industries, especially food manufacturing, tobacco and textile processing
dominate the commercial industrial sector of Zimbabwe. These are mainly owned by
multinational conglomerate companies with interest in farm produce supplied by
large-scale commercial farmers. For example, Cairns Foods Company is the
largest food processing company in Zimbabwe. The company requires a
minimum of 100 tonnes of groundnuts per year for peanut butter processing and a
small proportion of that is produced by small-scale farmers. The company’s
demand for potatoes and fruits (guava, pineapple, mangoes etc) is largely met
by large-scale commercial growers (Acquah, 1997). At present, the small-scale
farmers are not organised or prepared to produce for such large-scale
processing companies. However, they are for other commodities such as cotton
through the Cotton Company of Zimbabwe
(CottCo).
Small-scale farming
in Zimbabwe
rarely provides sufficient means of survival in many rural areas. It is
therefore imperative to explore alternative income generating opportunities to
support poor families who can no longer fend for themselves from the land-based
activities alone. Recent research demonstrates that rural households depend on
a diverse portfolio of activities and income sources. Some households are
looking towards activities such as food processing as a means to enhance the
livelihood they can achieve from a limited area of land (Simalenga, 1996).
Small-scale food
processing activities represent a potential source of livelihood for many poor
people in Sub-Saharan Africa. The overall potential of agro-processing is huge
as it can:
- Increase the value of crops of poor farmers and thus yield higher returns;
- Expand marketing opportunities;
- Improve livelihoods of people;
- Extend shelf-life of commodities;
- Improve palatability of commodities;
- Enhance food security;
- Overcome seasonality and perishability constraints; and
- Empower women who are often involved in agro-processing.
In Sub Saharan
Africa, it is estimated that 60% of the labour force find part of its work in small-scale
food processing enterprises and the majority are women (ITDG, 2005). The greatest potential growth in small-scale
agro-industries is in fruit and vegetable processing as many horticultural
producers experience problems in marketing of fresh produce such as lack of readily
available marketing information and lack of market integration, lack of data on
supply and demand trends and prices, reliance on spot or road-side markets,
transport constraints and spoilage (Mhazo et
al., 2003, Boyd et. al, 1997).
Adoption of improved and validated food processing technologies,
enforcement of good standards of quality and hygiene and regulatory instruments
may assist local small- and medium-scale agro-industries to compete favourably
in the market place. Small to medium scale enterprises are those organisations
with a total fixed capital base, excluding land, that does not exceed five billion
Zimbabwe Dollars (equivalent to US$66 667) and employ not more than 75
permanent employees (Personal communication; Small Enterprise Development
Corporation, Zimbabwe).
However, research has
shown that a number of factors may constrain the ability of small- and
medium-scale agro-based enterprises to effectively manufacture and market
processed food products.
·
On a macro level, many policies implemented
by governments have served to hinder the development of small-scale industries
(Dawson, 1994; Simalenga, 1996).
·
At the firm level, limited access to credit
(Chakwera, 1996); limited access to foreign currency (Nazare, 2005); lack of
appropriate technologies (McPherson, 1996; Mugova, 1996); lack of technological
capability; the unreliable supply of raw materials (Mosha, 1983); lack of
management skills (Odunfa, 1995); poor product quality control (Jaffee, 1993); and
poor markets, amongst other things, have constrained the development of
small-scale industries.
These problems apply to
many developing countries and are particularly applicable to Zimbabwe.
The purpose of the
current study is to develop and present a detailed but clear picture of what
the present agro-processing systems (small, medium and large with emphasis on
the medium-scale) require to effectively manufacture and market processed food
products. The main areas of interest included considering the service provision,
linkages with research and extension, demand-led services, agro-processing
technologies, farmer empowerment, policy implementation, gender issues and
government vision.
2.
Agro-processing
Definitions
Agro-processing
activities comprise two major categories; primary and secondary operations. Primary processing operations involve
activities such as crop drying, shelling/threshing, cleaning, grading, and
packaging. These activities are mainly carried out at the farm and only
transform the commodity into a slightly different form prior to storage,
marketing or further processing. Secondary
processing operations entail increasing nutritional or market value of the
commodity and the physical form or appearance of the commodity is often totally
changed from the original. Some examples of secondary processing are milling
grain into flour, grinding groundnuts into peanut butter, pressing oil out of
vegetable seeds, pressing juice out of fruit, making cheese out of milk and
manufacturing of mince meat. Depending on type of commodity, equipment needed
for primary processing is completely different from that used in secondary
processing or major adjustments/modifications need to be done to suit
either.
3.
Agro-processing
Equipment Supply Chain
Historically, formal
manufacturing, distribution and sales of agro-processing equipment have been a
preserve of conglomerate companies such as Precision Grinders, G. North and Son
(Pvt) Ltd and Zimplow Limited.
Processing systems were split into manual tools and machines for
small-scale users (mainly for communal farmers) and motorised equipment for
large-scale processors. Since the mid 1990s, many new small- to medium-scale
formal and informal manufacturers entered the market resulting in a dramatic
increase in medium-scale motorised systems for processing food crops. It is now
possible at medium-scale level to process cereals into various flours and stock
feeds, groundnuts into peanut butter, sunflower, cotton and soybeans into
edible oil and fruits and vegetables into jams, pulps, juices, pastes, sauces,
pickles, and confectionery products.
Some of the major
manufacturers of primary processing equipment in Zimbabwe are presented in Table 1.
The range of processing equipment is limited to manual and motorised
shellers/threshers for cereals and pulses. Most of the manufacturing activities
are located in Harare,
Norton and Bulawayo
with distribution networks in the major cities, towns and Growth Points or
Rural Service Centres (RSCs). The local industries have the capacity to manufacture
complete shellers/threshers. However, for motorised equipment, the sources of
power (electric motors and engines) have to be imported from South Africa
and/or Asia. This obviously has a negative
bearing on the availability and final cost of motorised equipment as foreign
currency supplies in the country are limited. The major consumers of primary
processing equipment are individual farmers or farmer groups and private
contractors.
Table 1: The major
manufacturers and distributors of primary processing equipment in Zimbabwe.
|
Company
|
Location
|
Retail outlets
|
Product range and
Power source
|
Product sourcing
|
|
Practical
Action*
|
Harare
|
Harare, Bulawayo, Mutare
|
Manual
and motorised shellers, threshers
|
In-house
manufacturing
|
|
G.
North and Son
|
Harare
|
Harare
|
Manual
and motorised shellers, threshers; winnowers
|
In-house
manufacturing
|
|
Tanroy
Engineering
|
Harare
|
Harare,
Mutare, Bulawayo
|
Motorised
multi-crop shellers and threshers
|
In-house
manufacturing
|
|
Zimbabwe Oil
Press Project (ZOPP)
|
Harare
|
Harare, Rusape,
Mutare
|
Manual
groundnut shellers
|
Subcontracting
the informal manufacturers
|
|
Hastt
Zimbabwe
|
Norton
|
Harare,
Norton
|
Tractor
PTO-driven crop shellers and threshers
|
In-house
manufacturing
|
|
Precision
Grinders
|
Harare
|
Harare
|
Motorised/PTO-driven
multi-crop threshers, manual shellers.
|
In-house
manufacturing and importation
|
|
Zimplow
Ltd.
|
Bulawayo
|
Harare, Bulawayo
|
Manual
groundnut shellers
|
In-house
manufacturing
|
|
Institute
of Agricultural Engineering, Ministry of Agriculture
|
Harare
|
Harare
|
Multi-crop
threshers,
Manual
groundnut shellers
|
In-house
manufacturing
|
*formerly
Intermediate Technology Development Group (ITDG)
The growth of
secondary agro-processing in Zimbabwe
is quite evident in the rapid rise in numbers of equipment manufacturing
companies, dramatic increase in processing enterprises and the widespread
availability of various processed foods on both the formal and informal market.
Growth has been greater in the small- and medium-scale enterprises than the
large-scale sector; for example there has been a huge increase in millers of
maize and other cereals, processors of peanut butter, manufacturers of
livestock feeds and soybean products. Five of the seven major manufacturers of
secondary processing equipment listed in Table 2 were established in the last
decade.
Table 2: The major
manufacturers and distributors of secondary processing equipment in Zimbabwe.
|
Company
|
Location
|
Retail
outlets
|
Product
range
|
|
Renox
|
Harare
|
Harare
|
Vegetable oil
mills, cereal grinding mills, dehullers, peanut butter mills
|
|
Intermediate
Technology
|
Harare
|
Harare, Bulawayo, Mutare
|
Vegetable oil
mills, cereal grinding mills, Manual and motorised peanut butter mills
|
|
Appropriate
Technology Africa
|
Harare
|
Harare, Mutare
|
Vegetable oil
mills, cereal grinding mills, dehullers, manual and motorised peanut butter
mills, motorised juice extractor
|
|
Tanroy Engineering
|
Harare
|
Harare,
Mutare, Bulawayo
|
Vegetable oil
mills, cereal grinding mills, dehullers, groundnut roasters, Manual and
motorised peanut butter mills, cassava and sweet potato chippers.
|
|
Zimbabwe Oil
Press Project (ZOPP)
|
Harare
|
Harare,
Rusape, Mutare
|
Vegetable oil
mills, groundnut roasters, Manual and motorised peanut butter mills
|
|
Precision Grinders
|
Harare
|
Harare
|
Cereal grinding
mills, dehullers, Manual and motorised
peanut butter mills, mixers
|
|
Institute of
Agricultural Engineering, Ministry of Agriculture
|
Harare
|
Harare
|
Cereal grinding
mills, dehullers, Motorised peanut butter mills,
|
|
Stainless Steel
Products.
|
Harare
|
Harare, Bulawayo
|
Industrial pots,
steam pots, pasteurizers, meat mincers, sausage makers, blenders, bakery
ovens, potato chippers and peelers, mixers
|
There is clear
evidence of widespread activities in manufacturing of cereal flour, peanut
butter and animal feeds as indicated by the increased number of manufacturers of
related equipment. This development should in theory lead to a wider choice of
equipment and a level of competition that would benefit the consumers (Nazare,
2005). It is however, important to point out that while there are many players
in the manufacturing sector; variety in equipment design is very limited. Most
of the manufacturers rely heavily on procuring equipment and/or components of
equipment from Asia as well as the local
formal and informal outlets. This approach may result in poor equipment quality
control and certainly results in limited consumer choice. Ultimately, there are also costs associated
with fixing poor quality machines when they break down. Nonetheless, the positive side of it is that
it reduces the cost of tooling for individual manufacturers, may guarantee
inter-changeability of spares among equipment from different manufacturers and
creates employment for the locals.
4.
Research
and Development
Development of
agro-processing equipment has not received the level of research support it
deserves. There are limited and isolated research efforts in the private
sector. In the public sector, budgets for Research and Development have been
cut down drastically and furthermore there is a critical shortage of qualified
research staff to carry out the work. However, considerable research in the
development of crop shellers, threshers, vegetable oil mills, peanut butter
mills and crop dryers has been conducted by the Ministry of Agriculture (MoA)
through the Institute
of Agricultural Engineering,
the University of Zimbabwe (UZ) and ENDA Zimbabwe since 1990. Useful research results have been generated but
extension of the results to the private sector (manufacturers) and farmers has
generally been poor.
UZ usually works in
partnership with the private sector in equipment manufacturing. Transfer of
technologies to end-users is facilitated by the linkages that exist between the
university and the public sector and NGOs. Involvement of students in various
research activities also helps in the dissemination of research results. The development and extension of the peanut
butter technology has been a major success story for the Development Technology
Centre (DTC) at the UZ. Technology
manufacturing and marketing is now fully market-driven. However, there are
issues surrounding intellectual property rights and patenting which are not in
place. Many a time, technology generated
by academic or public sector research organisations ends up being used for
commercial purposes without due recognition of the people involved in knowledge
development.
There is no evidence
of real budgets for research and development in the private sector save for
Precision Grinders, Hastt Zimbabwe
and Practical Action that have established research and development divisions.
Others depend on technology importation (plus adaptations) and research results
from local work.
5.
Extension
and training
Training in
agro-processing is at three levels; manufacturers, distributors and end-users
who are either farmers or entrepreneurs. Training in manufacturing techniques
is not a limitation in Zimbabwe.
Training of artisans (tool makers, welders, fitter and turners, sheet metal
workers etc) is well established and of high standard. Training Institutions such
as Silveira House, Glen
Forest, Hlekweni Friends,
the Institute of Agricultural Engineering of MoA offer training in
blacksmithing targeted at rural artisans. Rural blacksmiths carry out minor
repairs on equipment at local level. However, most of these institutions are
operating below normal capacity due to financial constraints or high staff
turn-over.
There is very limited
training offered to distributors as basic knowledge about the operations of
equipment is frequently missing at points of sale. This is often exacerbated by lack of
operational manuals on some products. Where attempts are made to provide
manuals, they sometimes lack necessary assembling and trouble-shooting details.
Very few small- and
medium-scale agro-processors have received formal training in food processing
techniques. Most of the formal training
support for small-scale food processors has been provided by Ranche House
College with funds
provided under a Dutch-funded programme called “Food Processing as a Small
Business” (Mhazo et al., 2003). The training included solar drying of fruits
and vegetables, technical and business skills, and entrepreneurship and
financial access and management.
MoA has a mandate to
disseminate research outputs to farmers and other clients via the Department of
Agricultural Engineering and Technical Services which is represented at
provincial level and more recently, in some districts. However, coverage at ground level is not as
good as the Department of Agricultural Research and Extension (AREX) which is
responsible for the conventional agricultural extension. Most AETS staff have generally failed to keep
abreast of current technology development trends in agro-processing and their
capacity to provide technical, training and advisory services is limited.
Private sector manufacturers
have their own marketing and extension strategies driven mainly by their own
staff particularly at forums such as agricultural shows (at various levels) and
the Zimbabwe International Trade Fairs.
Training for end-users is provided in a number of ways comprising short duration
demonstrations offered by sales personnel, formal and informal skills training
and technical training offered during installation and commissioning of
equipment.
6.
Constraints
in the agro-processing industry
Zimbabwe is currently
going through a critical economic recession. International development
assistance to the country has declined in real terms. Given this scenario, it
is necessary for Zimbabwe
to develop innovative strategies to complement dwindling donor participation in
fostering industrial development.
Growth of the
agro-processing industry is hampered by various constraints that range from
equipment supply to problems faced by consumers of the technologies. In the
manufacturing sector, progress is limited by:
- Difficulties in accessing foreign currency;
- Reduced demand for equipment as most clients fail to mobilize resources to acquire equipment;
- Limited transfer of technology from research;
- Limited access to working capital;
- High duty and tax on imported raw material and spares. In some cases the government policies on duty and taxes charged on imported equipment discourage local manufacturing. For example industrialists are charged value added tax (VAT) on imported materials used in the manufacturing process yet the finished piece of equipment is sold without VAT making it impossible to recover costs. The manufacturers get frustrated when they pay high duty and taxes on raw materials while the competing finished products are imported at low duty; and
- The manufacturing sector has also been characterised by poor quality products, especially from the informal sector, as the enforcement of standards has not been effective. The prevalence of substandard equipment on the market at times forces the government to create conditions for importation of high quality products to protect the consumers.
Agro-processors face
numerous constraints including:
- Poor equipment back-up service rendered by dealers, shortages and high cost of equipment and spares;
- Limited access to information from extension service;
- Limited access to appropriate packaging material for processed products, lack of marketing skills;
- Inadequate support services from training institutions, private sector consultants, small enterprise advisors, research institutions and engineering workshops;
- Erratic supply and increased cost of fuel coupled with frequent power cuts;
- Unreliable supply of raw materials, reduced demand for processed food products;
- Poor cash flow emanating from low volumes of raw materials hence low income is realised from processing;
- Failure to meet food processing regulations pertaining to food safety and hygiene practices which need to be adhered to in the industry. Attention to hygiene and basic food safety procedures is found, at times, to be limited among informal enterprises. Knowledge of specific regulations and legislation governing food safety and hygiene issues is only evident among those processors who market their product through formal outlets. The required costs of meeting the Standard Association of Zimbabwe regulations are viewed by the more informal processors as prohibitive (Mhazo et al., 2003);
- High cost of processing equipment; and
- Limited capacity to mobilise capital for equipment purchase and working capital.
Constraints faced by
producers of raw material include:
- Frequent droughts resulting in crop failure;
- Current high costs of production inputs (seed, fertilizer, chemicals etc.) resulting in a decline in the levels of production hence shortages of raw material. This factor together with the preceding one could have a compound effect;
- Lack of funding and unfavourable borrowing conditions; and
- Lack of commercial farming skills.
7.
Opportunities
in the agro-processing industry development
Agro-processing
opportunities in Zimbabwe
currently tend to favour growth and development of medium-scale processing
industries that match the current production levels and the distortions in
marketing of produce. Market forces and the prevailing economic environment
favour more down-sizing of large-scale processing systems and upgrading
small-scale processing industries. This
is mainly due to the fact that the demand for raw materials by large-scale
manufacturers is currently not being met due to low national production levels
hence the enterprises are operating below capacity. This has resulted in
scaling down of business, massive staff retrenchments and/or closure of
factories. For example Aroma Bakeries in Harare
sold their peanut butter business (equipment and franchise) to a medium-scale processor.
Some large-scale operators contemplate sub-contracting small and medium
processors who can meet their set standards. The contractor would provide
packaging materials and take responsibilities for transporting and marketing
the product. This arrangement shifts raw material sourcing and processing risks
away from the large-scale processor.
Small-scale
enterprises which are characterised by use of manual equipment are losing
business to the medium-scale as the latter use motorised equipment which have
advantages of both higher capacity and efficiency. Manual equipment is either
abandoned or upgraded to match the demand. Examples are: (i) the rapid
obsolescence of manual sunflower oil presses in the 1990s following the
importation of motorised multi-crop oil expellers from Asia
and (ii) the current requests by peanut butter processors to upgrade manual
mills by installing motors. Small-scale processors who cannot afford to improve
their processing systems are likely to get out of business.
The merits and
de-merits of the development/expansion of medium-scale enterprises are
summarised in Table 3. Generally, it
appears that currently, there are more merits than demerits in going for the medium-scale
enterprises.
Table 3: Summary of merits and demerits of the
medium-scale agro-processing enterprises.
|
Merits
|
Demerits
|
|
Empowerment of
women’s clubs through increased throughput
|
Dis-empowerment of
individual women through loss of business opportunities
|
|
Decentralisation of
industries resulting in employment creation
|
|
|
Improved adherence
to manufacturing regulations and standardisation of equipment
|
|
|
Provision of
service processing facilities and relieving small-scale processors of the
burden of equipment operation and maintenance
|
Rapid obsolescence
of manual equipment leading to loss of capital investment.
|
|
Improved chances of
standardisation of equipment
|
|
|
Improve planning
and time management by clients who would otherwise budget time for processing
activities
|
Loss of business by
large scale processors, scaling down of operations, massive retrenchments,
closure of factories
|
|
The poor may be
able to access custom processing as even small quantities can still be
service processed for household consumption without investing into the
processing equipment.
|
Loss of business by
small scale processors
|
|
Creation of local
markets for producers of raw material which could stimulate local production
|
|
|
Higher chances of
formalisation of businesses and competition among processors which could lead
to improved revenue to central government and reduced prices for consumers
respectively
|
|
There is great
potential in the development of medium-scale grain milling, bread-making
enterprises, livestock feed manufacturing, peanut butter and vegetable oil
processing as opportunities of market entry by medium-scale entrepreneurs
increase. Fruit and vegetable processing and preservation offer a new viable
opportunity though more effort needs to be put into product promotion and
marketing. For example Lamin and Son in Nyanga started processing a wide range
of fruits as a pastime but later expanded into a medium-scale factory capable
of producing half a tonne of dried products per day for both domestic and
export markets (Acquah, 1997). There are widespread shortages of fruits and vegetables
in the drier parts of the country yet during peak production periods there is a
glut and large amounts of fruits and vegetables are put to waste. Fruits can be
processed into pulps/juices, wine, jams, jelly, marmalade, pickles, dried
products and confectionery items.
Small and
medium-scale agro-processing industries at RSCs are strategically located to
take advantage of both raw material and local markets. The dominant activities
in RSCs are cereal milling, peanut butter milling, and vegetable oil
processing. There are also opportunities for fruit and vegetable drying,
canning, bottling, juicing and freezing in the RSCs (Price Water House, 1994).
Equipment required for small-scale fruit processing is based on the usual home
kitchen gadgets including stoves, pots, knives and spoons which are widely
available in hardware shops around the country. For medium-scale enterprises,
more specialised equipment such as stainless industrial boilers, pulpers,
pasteurizers and canning machines become necessary. These are again available
from Stainless Steel Industries and Ag-Venture respectively. The Development
Technology Centre of the University
of Zimbabwe reported
limited awareness of the Zimbabwean market to dried fruit products as a
constraint to the uptake of solar dryers (Nazare, 2005).
One less developed
area and normally not addressed in post-harvest discussions is that of
processing of meat and fish for preservation and value addition. With the
current high costs of commercial products, consumers turn to informal sources
of beef, chicken, pork and fish. Small
to medium-scale handling, processing and packaging of meat into value added
products such as sausages and dried meat deserve greater attention. Meat mincers
and sausage makers are available in the country. Slaughtering of the animals is
predominantly manual using axes and knives. Mechanized plucking machines for
removing chicken feathers are known to exist but are rarely used at small and
medium-scale.
Common utilities such
as roads/rail, power, water and communication are vital to the development of
industries in both rural and urban areas. Most of these are well-developed in Zimbabwe.
However, electricity which is an important element to agro-processing and rural
engineering is not yet readily available in most rural areas despite the GoZ-driven
accelerated rural electrification programme currently underway.
8.
Specific
cases of small- to medium-scale agro-processing enterprises in Zimbabwe.
A sample of
commodity-specific case studies of agro-processing enterprises is given in the
following sections.
Case 1: Processing of
cereals
The
hammer mill has revolutionised cereal processing into flour in both rural and
urban areas. The technology can be
easily combined with a dehuller to produce pearl flour preferred by most urban
dwellers or to enhance palatability of small grains widely produced in the
semi-arid areas of the country. The
introduction of dehullers has been largely perceived as one intervention that
can alleviate the drudgery women undergo when processing small grains using the
traditional pestle and mortar to remove the bran followed by grinding on a stone
mill to produce the flour. Considering
the HIV/AIDS pandemic which has hit the country, and the general labour shortage
in most rural areas, traditional processing of cereals, especially small
grains, has become a formidable challenge.
With
the persistent shortages of fuel in the country, many people in rural areas
have to walk as far as 20km to access grinding mills running on electricity
instead of the more usual diesel. This
is particularly problematic in areas not yet reached by the GoZs’ rural
electrification programme.
Case 2: Oil seed
processing
There
is critical shortage of vegetable oil in Zimbabwe. The little stock that trickles
in is too expensive for most Zimbabwean families. Oil expression has mainly
been from sunflower seed using manual ram presses at the lowest level or
motorised systems at the medium-scale level.
Sunflower is a drought-tolerant, low management crop, which can be grown
by many rural households to supply rural entrepreneurs.
One
entrepreneur can own several ram presses operated by people specifically
employed to press the seed and who are paid based on the quantity of oil
produced. Mechanised oil expression is
based on the Tiny Tech; a technology imported from Asia
but now locally manufactured by several companies including Tanroy
Engineering. Most entrepreneurs are
located at Rural Service Centres (RSCs) such as Gokwe, Shurugwi, Murombedzi,
Chivi and Bikita
Key
challenges associated with this enterprise include:
1.
Lack of back-up service and spare parts when
these machines breakdown;
2.
Limited access to skills training for staff;
3.
The parts may be available but lack
standardisation, making it difficult to access the compatible parts. Rural entrepreneurs are forced to travel back
to the source of the machine say in Harare;
4.
There have been 5 successive droughts in the
country which has significantly reduced production; this means that sourcing of
the pressing seed is an enormous challenge which requires entrepreneurial
innovation;
5.
Low management capacity of entrepreneurs; and
6.
Inconsistent supply of raw materials which
limit system capacity utilisation.
Another
oilseed whose production is expanding rapidly despite the droughts is
soyabean. The crop is high in protein
and can be processed into numerous products which can significantly improve the
livelihoods of rural people. Some examples include manufacture of soya mince
meat, oil, soya milk, soya yoghurt, baby feeds, stock feeds etc. However for the oil extraction process,
chemical methods are usually more efficient and need to be introduced in RSCs.
Case 3: Processing of
root and tuber crops
Sweet
potato utilisation is traditionally limited to consumption as a snack, dessert
or a substitute for bread at breakfast, when the root is boiled. However, the market is often flooded for up
to three months, thereby depressing the prices and making the production of
sweet potatoes a non-viable enterprise.
Most rural households are then forced to buy the conventional wheat
bread, which is becoming increasingly unaffordable. Since sweet potatoes are widely produced in
the country by most smallholder farmers and the flour from the potatoes have
been demonstrated to have the potential to partially substitute wheat flour
(Nyakudya et al, 2004), this can help
cut down on the wheat component which makes bread expensive. In addition, Vitamin A deficiency is
widespread in rural areas and yet certain sweet potato varieties are known to
be rich in this nutrient. The
introduction of sweet potato flour may enhance accessibility of the rural poor
to bread, many of whom can no longer afford the wheat-based bread. Commercial processing of sweet potatoes into
baking flour can stimulate production of the crop, increase incomes, improve
food and nutritional security, and create employment opportunities, thereby
helping to alleviate poverty in rural areas. In the long term, this might also
be a strategic intervention at national level in that the much-needed foreign
currency required to import supplementary wheat could be reduced. It can also
increase rural incomes through marketing of the raw material when the
processing enterprise creates a local demand for the sweet potatoes.
Appropriate
processing systems at small-scale level have not yet been fully developed.
There are various options of washing, peeling, slicing, drying and grinding the
dried sweet potato chips. There are, however, still a number of questions
regarding these processing techniques.
Previous researchers have noted a lack of information on sweet potato
flour quality (Van Hal, 2000). The quality of flour is a function of the
variety of the raw material used and processing system employed.
Mutungamiri
et al. (2001) demonstrated that sweet potatoes can be processed into
jam. Other by-products that can be derived from sweet potatoes include juice,
ketchup and fresh chips.
Case 4: Peanut butter
processing
Processing
of groundnuts into peanut butter is a very important household activity in the
rural areas of Zimbabwe.
Peanut butter is used as a spread on bread, as an ingredient in soups or eaten
as a snack and is an essential source of protein and fats in the diet of most
Zimbabwean families. There is no need to add preservatives because heat
produced during processing, destroys enzymes and microbial contaminants, and
because of its relatively low moisture content, recontamination is inhibited
(Fellows, 1997). The traditional processing method of first pounding roasted
nuts with a pestle and mortar then fine grinding on a stone mill is
characterised by high labour input, low throughput (Mhazo et al., 2002) and is often viewed as unhygienic. The problems
associated with food quality, safety and hygiene limit the appeal of
traditionally processed peanut butter particularly to the formal markets; hence
reducing the income realised by processors.
The
Development Technology Centre (DTC) introduced mechanised systems for peanut
butter processing in 1996 and has since been working towards improvement of the
systems. Both manual and motorised peanut butter mills and roasters are now
locally manufactured and readily available on the market. Production systems
for machines, packaging materials and the related accessories have been
established and guidelines for equipment distribution and operation have been
developed. Techniques have been developed for producing high quality and safe
peanut butter. As the product is often not re-heated before consumption and
since it is a low-acid product, strict hygiene rules for safe food handling
should be observed. The new systems have tremendously increased the levels of
production and quality of peanut butter by small and medium-scale
entrepreneurs, even in urban areas. The
groundnuts should be completely and uniformly roasted before grinding to
produce a good quality peanut butter. Under-roasting produces a poor flavour,
whereas over-roasting results in a darkened product and burnt flavour. The degree of grinding and size of the
particles of the product depends on consumer preferences and in Zimbabwe a
smooth paste has a higher market value. A great number of women groups are now
able to supply the formal markets after meeting the high safety and quality
standards set by the Standard Association of Zimbabwe (SAZ). A few enterprises
have met export requirements to neighbouring countries. A combination of adoption of the medium-scale
processing technologies and low groundnut production levels has resulted in a
shortage of the raw material for small-scale processors.
The
major challenges in mechanisation of peanut butter processing are:
1.
The increase in cost of new machines and
spares; especially burrs and electric motors;
2.
Lack of enforcement of manufacturing
standards for processing equipment. This has resulted in consumers accessing
substandard machines as these are normally low priced;
3.
Lack of equipment design patents hence
unlicensed manufacturing;
4.
Reduced supply of groundnuts due to frequent
droughts;
5.
Difficulties in attaining SAZ accreditation
so as to access formal markets; and
7.
Increase in cost of packaging material.
Growth
in the peanut butter medium enterprises is evidenced by the numerous brands
found on the shelves of most local supermarkets.
Case 5: Fruit and
vegetable drying
Fruits
and vegetables play an important role in providing the body with essential
vitamins and minerals which when deficient, can cause malnutrition (Utete and
Tembo, 1996). In the smallholder sector
of Zimbabwe,
fresh vegetables are available in large quantities in the dry season while
fruits are abundant in the wet season. When production exceeds the family
consumption needs and demand levels of the local markets, producers face huge
problems in trying to access urban markets. These include lack of market information
and marketing intelligence, high perishability of horticultural commodities and
lack of refrigerated transport services and poor road networks. More often than
not, high value produce is put to waste.
A
wide variety of vegetables and fruits are processed into dried products and the
majority of vegetables processed are indigenous varieties. Preservation relies
on the removal of moisture by drying. An acid dip sulphur dioxide may also be
used to reduce the number of contaminating micro-organisms (Fellows, 1997) but
this is not commonly practised in Zimbabwe. Dried products are
obtained from apple, mango, guava, banana, paw-paw, tomatoes, onions, cabbages,
rape, covo, cowpea leaves, pumpkin
leaves, mustard leaves and okra. It is more common to find dried vegetables
rather than fruits on the vendors market.
For a significant number of processors, processing is a traditional
activity adopted to enhance household food security during the agricultural
off-season when access to fresh produce is limited. Some surplus may be sold
locally to generate income. The few enterprises that produce the dried products
at medium-scale, sell their products in the up-market shops and local tourist
resort areas. The Murewa Food Processors’ Association is one of the few enterprises
which exports small volumes of dried fruits, but it does not have firm
contracts in export markets.
Most
of the existing fruit and vegetable processors are informal in nature and range
in size from small to medium. They are normally referred to as cottage
industries as they operate from residential homes. Drying of fruits is still a novel idea among
both processors and local consumers. However, there is evident increase in the
supply of processed fruits and vegetables as various such commodities are now
available in the up-market shops in towns and tourist resort areas but in
better quality.
There
are, however, many constraints that may hinder development of small and
medium-scale fruit and vegetable processing enterprises. These include:
1.
Reduced crop production levels as the costs
of seed, fertilizers and chemicals have gone up. Small-scale producers also
have limited access to fertile land and irrigation facilities.
2.
Lack of appropriate processing technology.
Most of the processors use the usual home kitchen utensils as their basic
equipment and sun-dry their fruits and vegetables. Grading, peeling and cutting
are done by basic hand tools. The
vegetables are dried by spreading out cut and blanched/par-boiled pieces in
thin layers on flat surfaces. There is lack of cold storage facilities to store
raw or semi-processed products for use in the off season.
3.
Lack of access to appropriate packaging
material for processed products especially for those enterprises who wish to
market their products through the formal markets. Some enterprises resort to
using recycled packaging materials but this raises food safety and hygiene
concerns.
4.
Poor marketing of products. Marketing of
small-scale processed food products is largely informal. Enterprises located in
rural areas rely on demand from local informal markets, which are small and
unreliable. There is a general lack of marketing skills and information.
5.
Lack of appropriate training in food
processing. A few processors have received formal training in food processing
techniques.
6.
Failure to adhere to the general food safety
requirements and hygiene practices as required by the food safety regulations.
7.
Lack of working capital as most processors
experience poor cash flows.
There
is however, potential to create viable business ventures in fruit and vegetable
processing as long as appropriate processing equipment, processing skills,
packaging material, and marketing information are made available.
Case 6: Juice
extraction
Despite
the high level of fruit production in many districts of Zimbabwe, there
is food insecurity, poverty, hunger and malnutrition at household level. There
is little processing of fruits at small or medium-scale level and farmers are
losing out as they often sell their fresh fruits within a few weeks of
harvesting at give-away prices. Recent case studies by the DTC (Mhazo et. al 2003) suggest that small-scale
fruit and vegetable processing has potential to provide improved returns to
horticultural producers as long as appropriate processing equipment, processing
skills, packaging materials and marketing information are made available.
Pulps/juices
can be made from almost any fully ripened fruit, but common types include
apple, pineapple, orange, grapefruit, passion-fruit, guava and mango. The pulping, filtering and pasteurising
stages of the process should be monitored and controlled to produce a
consistent product quality. As the product is acidic there is little risk of
food poisoning, but normal hygiene practices should be enforced (Fellows,
1997). Currently juice extraction is being done by large companies such as
Mazoe Citrus Estates. These big companies produce a juice concentrate which
they sell to other companies for juice-making.
Most
companies that produce the ready-to-drink juices operate at medium-scale level
and do not procure the fruits directly for processing. They procure most of
their juice concentrate from Mazoe Citrus Estates and blend it with ingredients
like sugar, preservatives, citric acid, water, colorants and some flavours.
This operation does not require heavy investment in equipment. The equipment
that is needed is mainly cold rooms, storage tanks and mixing tanks. Products
from these enterprises include Mr Juice, Jet Juice and Cascade. The challenges
being faced by these medium-scale enterprises are the shortage of the juice
concentrate, high distribution costs and high cost of packaging.
Case 7: Feed
processing
The
country is experiencing a critical shortage of livestock feed in the country
mainly due to scarcity of soyabeans. During
the 2004/05 agricultural season, production was about 40,000mt yet the total
market demand (including oil extraction) is in excess of 200,000mt. Soyabeans
is an important protein source for livestock.
Because of this shortage, the Zimbabwe Government, through the Reserve Bank
of Zimbabwe,
has availed funds to the National Soyabean Promotion Programme, specifically to
boost soyabean production in the country.
Equipment
for livestock feed manufacturing at medium-scale level is widely
available. The addition of a mixer and a
bag stitcher/sewing machine to an ordinary grinding mill is all that is
required. However, there is lack of
information on feed ingredients and limited flexibility in substitutes of raw
material. Maphosa et al. (2002)
showed that dried sweet potato chips can be used as a partial substitute for
maize in manufacturing of broiler chicken feed.
Processing of animal
products
Meat,
fish and dairy products are highly perishable and have a high risk of food
poisoning as they are low acid foods that can support the growth of a wide
range of bacteria. Processing of these products should be done quickly and
properly and should not be carried out by inexperienced people, and training to
deal with the risks associated with these products should be given (Fellows,
1997).
Dairy Products
Milk
is always in high demand because of its nutritional value and pleasant flavour.
It is used for domestic consumption, for use with other products like tea and
porridge and can be processed into butter, cheese and yoghurt. In Zimbabwe
there are very few small-and medium-scale processors because milk is relatively
difficult to process, requiring careful control over hygiene, relatively high
capital expenditure and short distribution channels to markets as the
shelf-life is short (three to five days). Dairibord Zimbabwe (Ltd) is the major company
that is involved in milk processing. The company invested heavily in capital
equipment like chillers, storage tanks, pasteuriser, line separators,
homogenisers, sterilizers, and packaging equipment. However, currently they are not operating at
full capacity because of the shortage of raw milk. Their milk products include
ice-cream, yoghurt, sour milk (lacto) and pasteurised and sterilised milk. The
few small and medium-scale processors who are based on farms mainly produce
pasteurised milk and sour milk because these products require relatively less
sophisticated capital equipment. They get most of their processing equipment
from Stainless Steel Products (Pvt), Zimbabwean company. There are no milk
processors at growth points in Zimbabwe.
Meat Products
Butcheries
are found in towns and at almost alI Rural Service Centres in Zimbabwe.
Butchers in towns procure most of their meat from Cold Storage Commission (a
Zimbabwean company based in towns) or abattoirs located on peri-urban farms.
The meat is stored in cold storage rooms or refrigerators and the meat is
sliced using electric blades just before sale.
Butchers at growth points procure most of their meat from the
surrounding villages and the slaughtering is usually done with an axe. The
villagers sell their beasts to generate income for food, school fees, to pay bride
price etc. Where electricity is accessible storage of the meat is done in
refrigerators/freezers. Those without access to electricity preserve the meat
by sun-drying.
Fish Products
Fish
is an important source of protein and minerals. Many women in Zimbabwe depend
on buying and selling fish. Some travel to places over 300 km away to procure
this product for sale in towns. Most of the fish comes from fresh water dams
and lakes. Fish is preserved by treating it with salt and laying it on raised
platforms under the sun for 2 – 10 days. The dried fish is then packed in
polythene bags. The key challenge in fish processing is to reduce the drying
time by developing appropriate hybrid driers. Prolonged drying periods often
promote the rotting of fish hence wastage and can cause food poisoning.
A typical SME concern
is profiled in the following section to highlight the real situation in the
industry.
Case 9: Tanroy
Engineering
Tanroy
Engineering is a medium-scale manufacturing operation based in the Msasa
Industrial area of Harare.
The company is well-equipped and adequately staffed to handle manufacturing of
small and medium-scale agro-processing equipment that include maize mills,
dehullers, peanut butter mills, peanut roasters, shellers, chippers and
graters. Many of their products have both manual and motorised versions and
tailor-made sizes can be fabricated to suit different consumer preferences. The
motorised versions of their products are powered by electric motors or diesel
engines. All their products bear the brand name “TAN TAN” and this is already a
household name in Southern Africa. Locally the
TAN TAN products are retailed in Harare,
Mutare and Bulawayo
and there are plans to open a branch in Masvingo.
Though
the company has made substantial progress in establishing itself in light
engineering, there are currently difficulties in sourcing electric motors and
engines. Electric motors are sourced from local importers such as RENOX and
Appropriate Technology Africa. However, they have direct import arrangements
for diesel engines from Asia. The current
shortage of foreign exchange in the country both directly and indirectly
affects Tanroy as this hinders the supply of engines and electric motors.
Case 10: Muchinjike
Agricultural Development Oilseed Processing Project; Murewa District; Zimbabwe: a
novel agro-processing business model.
In 2002,
the Avondale Rotary Club of Harare, introduced a unique crop production and
processing innovation in the Muchinjike Communal Area of Murewa District in
Mashonalnd East province
of Zimbabwe. Muchinjike
is 15 kilometres to the north-west of Murewa Rural Service Centre (RSC). The
innovation is a participatory rural development concept based on the hypothesis
that if communal farmers pool their land resources together to constitute the
size of a commercial farm, have centralised technical planning and management,
are provided with adequate production inputs and mechanisation equipment, their
productivity will improve to commercial level. The argument behind it is that
productivity in communal areas is poor because of (i) lack of good planning, (ii)
poor management, (iii) low mechanisation inputs, (iv) limited production inputs
(seed, fertiliser, chemicals etc.) and (v) lack of crop value addition options.
Fifty
households from in Muchinjike were selected for the initial registration of the
project. These and other unregistered farmers pooled together about 200
hectares from their pieces of land as their shareholding contribution. The
Rotary Club provided funds to implement the project. The money was used to hire
a manager, purchase a 100 horsepower tractor, a 2.5m Rome harrow, a 3-disc plough, a 5 tonne
double axle trailer, a Helix 80 motorised oil press, planting seed, fertiliser
and chemicals. The bulk of the planting seed input was hybrid sunflower seed as
this was seen to be the most viable cash crop. Hybrid seed have a soft hull and
therefore easier to press compared to open pollinated varieties. In addition, the oil yield of the former is
higher than the latter. Sunflower seed
was planted on 100 hectares in the first season and this was conceived to be
adequate to provide pressing seed for the oil press.
The oil
press is temporarily located at rented premises provided by a local businessman
at Murewa RSC as the project area is not yet electrified. In the first harvest
season in 2003 (which was a drought year), about 15mt of sunflower were
produced by the project and 40mt were sourced from local farmers. However, the
quantities were too little to match the oil press capacity of 2.5mt per day.
Typically the machine operated at between 600 and 700kg per day for a limited
period of time in the year.
A critical
participatory evaluation of the project conducted in 2004 revealed that it was
more profitable for the project to source sunflower seed from the local farmers
than producing its own. Service pressing[3] was also shown to be a
viable income generating window. Based on the findings, the project is this
season reducing the sunflower hectarage to 10 hectares for the sole purpose of
producing supplementary seed to the outsourced supply so as fill machine time.
The project has also opened a sunflower planting seed and fertiliser shop that
sells the commodities to local farmers at commercial rates. Though the
objective is to promote sunflower production to ensure viability of the oil
press business, the new venture constitutes a viable business line on its own
but without any obligations to the buyers towards the project. The demand for
the sunflower seed is impressive indicating local farmers’ realisation of the
profitability of value addition to the crop. As the number of growers from
outside the project area increases, permanent citing of the oil press at Murewa
RSC becomes favourable because the RSC is central and well-serviced with good
road and telecommunication networks.
The
sunflower oil produced is more viscous than commercial brands of vegetable oil
and is perceived by the local consumers to cook better when the same quantities
are used hence sunflower cold pressed oil lasts longer in the home.
The
advantages resulting from this model are:
1.
It has allowed farmers to add value to their
produce without necessarily needing to invest in processing equipment;
2.
It has freed up farmer time which would
otherwise be wasted using the manual oilseed processing methods which are slow;
3.
It has opened up local market opportunities
with potential for bulk selling e.g. to boarding schools or hospitals; hence
increasing household income levels;
4.
In its present form, the model does not call
for product certification because the oil belongs to the farmers, and not to
the entrepreneur;
5.
Incentives for increased production of
sunflower and diversification of cropping enterprises which have previously
been dominated by maize and no cash crops; and
6.
The communities now have improved diets from
the cooking oil (which is cholesterol-free; with no artificial additives) or
through purchase of food using the income generated from sunflower oil sales.
In
this case it is a win-win situation between the entrepreneur who generates
income through service provision at a fee and through selling the cake; while
the farmers get the oil. The biggest
challenge facing the entrepreneur is that last year GMB refused to sell
pressing seed to them; yet they are the biggest buyer and seller of grain in Zimbabwe. GMB, located within the same RSC, are now
setting-up their own plant for processing sunflower oil, setting the scene for
possible market competition. However,
the flexibility in-built in the medium-scale enterprise, whereby farmers can
bring in any quantity for processing and carry away their own oil, coupled with
economies of scale might carry the day for the Project.
9.
Recommendations
The agro-processing
industry in Zimbabwe
has potential to meet the local needs and export requirements. Medium-scale enterprises
have potential to create employment opportunities especially if the enterprises
are nurtured to produce for both domestic and export markets. However, the
sector currently faces many problems that emanate from various negative aspects
of the national economy, uncertainty that exists over access to finance,
advice, information and reliable markets . The major areas that need
improvement in the industry are:
- The response of the agro-processing industry to the changes in the agrarian sector. With the reduced farm sizes and increased number of farmers, there is need to develop small- and medium-scale processing equipment that cater for the full spectrum of agricultural commodities produced in the country. Emphasis should then shift from small-scale farmers aspiring to own the processing technology to improving access to the technology such as the custom milling case. This can be achieved by creating conditions that favour establishment of agro-enterprises to encompass processing of meat, milk and the related products, as well.
- There is no lack of clear government policy on agro-processing yet it has potential to drive the economy. Government policies that enhance performance of medium grain milling enterprises, livestock feeds manufacturers, peanut butter and vegetable oil processors need to be put in place as a tool for empowering indigenous entrepreneurs. The institutional framework to support and enable trade initiatives is provided by organisations such as Zimtrade, Zimbabwe Investment Centre and the Export Processing Zone.
- Fruit and vegetable processing is a viable business venture given that there is a high level of production of the products and a wide range of small- and medium-scale processing equipment available in the country and in the region. Establishment of medium-scale fruit and vegetable processing enterprises will help reduce heavy losses experienced by producers and ensure product availability on the market. Entrepreneurs need to be exposed to available technologies and the range of products that can be manufactured to encourage uptake of this new business.
- There is need to enforce food safety and hygiene standards as well as protect consumers against nutrient insecurity and undesirable tastes.
- The current farming practices require higher levels of mechanisation and a wider diversity of equipment designs so as to keep pace with changes in production techniques as new crops are introduced. It may no longer be viable now for individual farmers to own primary processing equipment as the reduced farm sizes may not justify such investment. Encouraging establishment of processing service providers may lead to optimum utilisation of equipment and will take away from the farmer the worries associated with repairs and maintenance of equipment.
- Research in agro-processing equipment does not meet national expectations. The public and private sectors must be mandated to undertake collaborative research with the formal equipment manufacturers and offer research and testing services to the informal sector which does not have the capacity to conduct serious and meaningful research.
- Training offered to agro-processors needs to include business management skills as these are lacking in most business people. This entails that training in agricultural colleges and universities should also encompass the same to ensure competence of extension officers in the subject.
- The Department of Agricultural Engineering and Technical Services in the Ministry of Agriculture should broaden their knowledge and capacity to offer technical assistance and advice, support and extension services that cover a much bigger range of equipment, ownership modalities and financing models.
- The most critical limiting factor in equipment manufacturing is limited access to foreign currency. This has led to delayed delivery of orders or complete failure to do so. Agro-processing equipment manufacturing has a strong bearing on the success of the agrarian reform hence the manufacturers need to make a collective presentation to the government for them to be classified as a special facility by the Reserve Bank of Zimbabwe.
- The limited capacity of processors to purchase equipment can be alleviated in a number of ways that include conducting research on how costs of production can be reduced, advocating for removal of VAT on imported materials used in manufacturing, introducing low cost finances for both manufacturers and processors, and preferential allocation of foreign currency to manufacturers and promotion of service providers.
10.
Lessons
learnt
- Equipment ownership (individuals, farmer groups or entrepreneurs) has been left for people to decide without proper technical advice
- Equipment cost is beyond the reach of individuals; hence technology access through service provision rather than ownership of the hardware is more favourable
- There is hidden agro-processing information and expertise among technocrats that has been deliberately kept unpublished for commercial purposes
- Literature on small- and medium-scale agro-processing often leaves out meat, mopani worm, fish and non-food products such as hides and skins, timber and medicinal plants. However it maybe argued that the last two could be regarded as more inclined towards the area of natural resources.
- Documented studies are commodity/sector-based e.g. grain milling, vegetable oil pressing. This exercise has helped to synthesize isolated literature.
- Currently, one survival strategy for large-scale processors is by sub-contracting medium-scale processors, that meet the required standards. The medium-scale enterprises would then supply processed products in bulk for large-scale entrepreneurs to pack and market.
11.
Conclusion
Small- and
medium-scale agro-processing enterprises play a vital role in the national
economic development of Zimbabwe
yet they do not receive due attention from the government. There is a need to
critically look at how equipment manufacturers can be assisted in the
manufacture of good quality machines that are affordable to processors. This
may call for preferential treatment of the sector by the Central Bank in terms
of foreign currency allocation. Research could also contribute by investigating
how equipment production costs can be reduced. Business viability is enhanced
by good training, service back-up, attractive financial packages and strategic
equipment ownership arrangements.
Training institutions and extension services should develop business
models that can be adopted by entrepreneurs. Equipment manufacturers and
processors need to coordinate with farmer organisations and organise themselves
into a lobby group in order to alleviate the constraints faced in the sector.
There is need to
review the technology supply chain for a wide range of commodities produced in
the country. The reviews help to
identify chain constraints which need addressing. The dynamic nature of the agro-processing
industry necessitate frequent and periodic reviews.
Based on this review
of the agro-processing industry in Zimbabwe, it is concluded that the
country is self reliant with regards to manufacturing of cereal mills, dehullers,
mixers, crop dryers, oil presses and peanut butter mills. The following are the
major sub-sectors that have been identified as having potential to boost
indigenous small and medium agro- industries in the country:
·
Establishment of medium-scale grain milling
enterprises
·
Manufacturing of livestock feeds at local
level
·
Processing and marketing of peanut butter
·
Processing and marketing of processed fruits
and vegetable products
·
Manufacturing of medium-scale vegetable oil
processing equipment
·
Feed processing.
With initial support
to medium-scale entrepreneurs in RSCs, the livelihoods of small-holder farmers
can be greatly enhanced through local value addition resulting in improved
incomes and diets as well as releasing farmers’ time for other activities when
motorised systems are introduced compared to the conventional manual methods.
Acknowledgements
The authors are grateful
to Tirivangani Koza, Department of Agricultural Engineering and Technical
Services in the Ministry of Agriculture for critically reviewing a draft of
this document. Small Enterprise
Development Corporation is also thanked for providing definitions of SMEs in
the Zimbabwe
context.
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[1] The A1 model has plots
with 5-6 hectares arable and in excess of 6 hectares for grazing.
[2] The A2 model has farms
ranging from 15 to 50 hectares in the peri-urban areas, 15 to 250 hectares in Agro-ecological region 1 and
350 to 2000 hectares in Agro-ecological region V.
[3] Service
pressing involves farmers bringing their own pressing seed, they get the seed
pressed and the resultant crude oil filtered all at a fee. The farmer then carries away the oil. No packaging costs are incurred as the
farmers bring their own packaging material.
The farmers then have the option to sell the oil within the community or
consume it.