Zimbabwe’s blueberry farmers are seeking more affordable financing as they look to expand production for the growing Chinese market.
The southern African country sent its first shipment of blueberries to China in July following a new trade agreement.
Farmers now see China as an important new market. However, high production costs and limited access to affordable finance are slowing expansion.
Zimbabwe blueberry exports target China
Forrester Estates, around 100 kilometres north of Harare, plans to more than double its blueberry-growing area to 50 hectares next year.
Farm manager Albert Chakala told AFP that financing remains the main challenge.
He said current production is not enough to meet demand.
According to Chakala, developing one new hectare of blueberries requires an initial investment of between $50,000 and $55,000.
The money is needed for irrigation systems, planting material and other infrastructure.
Farmers face high financing costs
The Horticultural Development Council (HDC), which represents growers and exporters, has also identified access to affordable finance as a major obstacle.
Zimbabwe’s blueberry industry expects to export around 12,000 tonnes this year from about 850 hectares, according to HDC figures.
That compares with 9,500 tonnes produced from 650 hectares last year.
HDC chief executive Linda Nielsen said the industry is discussing more competitive export financing with the government.
The sector is also seeking targeted tax incentives for irrigation, solar power and cold-chain infrastructure.
New market creates opportunities
Zimbabwe already exports blueberries to Europe, Britain and the Middle East.
China has now emerged as another major destination after the two countries reached a phytosanitary agreement and Beijing removed tariffs on imports from 53 African countries.
Zimbabwe is Africa’s third-largest blueberry producer after Morocco and South Africa, according to the HDC.
Clarence Mwale, chairman of the Export Produce Growers Association of Zimbabwe, told AFP that access to the Chinese market could also create opportunities for more local farmers to enter blueberry production.
However, he said cheaper long-term financing would be needed to make that possible.
For Zimbabwe’s blueberry industry, access to new markets is creating room for growth. Securing affordable financing could determine how quickly farmers can expand production to meet that demand.