Survey results: Impacts of COVID-19 on the horticultural sector in Zimbabwe

COLEACP’s surveys in the early months of the pandemic aimed to gather first-hand information on the impact of Covid-19 on operators of horticultural businesses, and assess how support from COLEACP and other partners could best be redirected as a response. These were not intended to be systematic surveys – respondents were self-selecting, and the operators taking part varying greatly in size and operation. But the results provide an illuminating qualitative snapshot of the key impacts of Covid-19 to date, and have been used to inform COLEACP’s and partner organisations’ priorities going forward.

Key points:

• 45% of respondents saw orders reduced by more than 50%, and a significant percentage were not able to honour existing contracts.
• 45% reported that prices were lower than in March–May 2019, although 27% reported higher prices than in 2019.
• 72% of companies had reduced the number of casual workers they employed, with half of those companies ceasing to employ casual workers altogether.

In June, COLEACP conducted surveys to learn from our members and partners in the horticultural sector about the impacts of the current health and economic crisis throughout March–May. The survey was carried out with the assistance of ZimTrade, the national trade development and promotion organisation. Eleven companies responded, and the main crops affected are berries, sugar snaps, green beans, French beans and sweet potatoes.

Export companies reported a big impact on their markets in Europe; the local Zimbabwean market is also affected for the vast majority of respondents. Food service and wholesale markets have been badly affected, while retail has stayed strong.

Most companies reported reduced market demand from prospective clients and reduced orders from existing supply contracts. 45% of respondents saw orders reduced by more than 50%. No company experienced increased market demand, and a significant percentage were not able to honour existing contracts. 45% reported that prices were lower than in March–May 2019, but 27% reported higher prices than in 2019.
Companies are facing cashflow challenges, which mostly cause difficulties in covering overheads costs and affect the ability to purchase enough inputs for the coming production season. Disturbance to domestic logistics, causing limited supply and market demand for fresh produce, was clearly a major factor.

More than half of the companies report having sold more on domestic markets during the crisis, but most companies were still identifying potential alternative markets. One positive spin-off was establishing a retail store to continue supply. Unsold produce was mostly donated to employees, but sometimes went to waste or was used as compost. Two companies have started up processing, making juice, banana chips and dried vegetables. Companies used social media (Facebook and WhatsApp) to sell produce online, but no better equipped online platform is available.

The companies that use outgrowers had reduced order quantities from them, as they were not able to guarantee a market for their produce. One company reported ceasing to source from more than 20 outgrowers with whom they usually work. The crisis also had a major impact on casual workers, with 72% of companies reducing the numbers employed; half of those companies stopped employing casual workers altogether.

Companies did employ workforce protection measures (face masks; social distancing measures; etc.) and implement WHO recommendations at packhouse and production levels, but did not extend these practices to outgrowers.

Most of the companies were not receiving any government support. Difficulties cited included lack of funds to pay wages, limited access to foreign currency, unstable and unpredictable working capital, police road blocks, and cash payments making it difficult to respect social distancing. Also mentioned was a pre-existing rural bias about the virus, with some feeling that the remoteness of the farm, away from the city, meant the virus was unlikely to be spread to them and so that containment measures should not apply to them.

Suggested support actions include lobbying for export support measures such as more flights to Zimbabwe; support to farmers to reduce post-harvest losses using solar drying technologies, packaging and value addition; helping to educate farmers to be flexible regarding payment terms and to open accounts for payment; links with financial institutions to access resources to boost working capital; links to regional markets; and capacity building through training, including on value addition (in particular on drying vegetables and safe packaging), utilising sustainable and smart technologies along the value chain, and gathering market intelligence and data analysis to connect better with domestic and global markets.