LOBITO CORRIDOR – FRUIT MAPPING Current Production, Potential & Business Cases

Joep van den Broek – Katrien van Krieken – Ambrosio Fernandes – Armindo Fernandes – Nelson Marula – Osvaldo Panzo – Isáu Quissindo

LOBITO CORRIDOR – FRUIT MAPPING Current production, potential & business cases

NOVEMBER 2019

Commissioned by:

ACKNOWLEDGEMENT

The authors would like to thank the team of the Embassy of the Kingdom of the Netherlands in Luanda, Mr Anne van Leeuwen, Mr Armindo Teuns and Mr Alex Oosterwijk, for the exceptional support in organizing the missions, presentations and events that were part of this study; as well as for bringing up new ideas and feedback for this report. In the same vein we want to thank Mr Jack Vera, the Netherlands Agricultural Counsellor for South Africa and Angola, and Mr Abel Neering of RVO, for the technical advice and practical support in implementing this project. From the Angolan side we are grateful for the high-level collaboration with the Ministries of Commerce and Transport, and in particular the help of Mr Catarino Perreira of the Conselho Nacional de Carregadores and Mr Nelson Martins of the Gabinete Técnico do Corredor do Lobito. They have been true Ambassadors of the fruit sector of the Lobito corridor, both inside and outside of Angola. We further much appreciate the collaboration with the Universidade José Eduardo dos Santos (UJES) in Huambo, and in particular the support of Dr Imaculada Henriques Matias, the Dean of the Faculty of Agricultural Sciences. A special word of appreciations goes to all the companies and institutes that participated in our interviews and meetings. We are grateful for their time and the high level of openness in sharing their knowledge and experience. Lastly, we would like to thank Mr Tiago Teixeira Cepeda, for the editorial support, ensuring correct use of the Portuguese language in all our reports, presentations and communica- tions, and Ms Erika Endrődiné Benkő, for making the beautiful designs of our presentations and reports. CONTENT ACKNOWLEDGEMENT 3 EXECUTIVE SUMMARY 5 INTRODUCTION 10 BACKGROUND 11 OBJECTIVES 11 METHODOLOGY 12 METHODOLOGICAL FRAMEWORK 13 FOCUS AND SCOPE 13 EU DEMAND ANALYSIS 13 ANGOLA AND LOBITO SUPPLY ANALYSIS 13 FRUIT MAPPING: REMOTE SENSING AND GIS 14 GENERAL RECOMMENDATIONS AND BUSINESS CASES 14 ANGOLA’S FRUIT SECTOR 15 FRUIT PRODUCTION IN ANGOLA 16 FRUIT TRADE TO AND FROM ANGOLA 17 GENERAL CHARACTERISTICS OF ANGOLA’S FRUIT SECTOR 18 EU MARKET DEMAND AND GLOBAL TRENDS 19 EU IMPORTS: VOLUMES AND VALUES 20 GLOBAL TRENDS 22 THE LOBITO CORRIDOR AND THE PROVINCES OF BENGUELA AND HUAMBO 23 THE BENGUELA RAILWAY AND PORT OF LOBITO 24 AGRO-ECOLOGICAL CONDITIONS 25 FRUIT PRODUCTION AND CROP SELECTION 26 FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS 27 MAIN FRUIT PRODUCING COMPANIES 28 MAIN FRUIT PRODUCING AREAS AND CHARACTERISTICS: BENGUELA 29 MAIN FRUIT PRODUCING AREAS AND CHARACTERISTICS: HUAMBO 31 AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION 33 AGRONOMIC SUITABILITY 34 FRUIT SECTOR SWOT ANALYSIS 37 STRENGTHS 39 WEAKNESSES 40 OPPORTUNITIES 41 THREATS 41 PSD CHALLENGES ANALYSIS 42 BENGUELA: BANANA 43 HUAMBO: CITRUS 43 BENGUELA: MANGO 44 BENGUELA: PINEAPPLE 44 TOP-10 COMPANIES 44 BUSINESS CASES 45 VALLE DO CAVACO – EXPORT BANANA 46 DOMBE GRANDE – EXPORT MANGO 50 CONCLUSIONS AND RECOMMENDATIONS 54 GREAT PRODUCTION CONDITIONS AT ANGOLA’S LITORAL 55 ANGOLA’S POTENTIAL: ‘THE PERU OF AFRICA’ 55 AND HOW TO GET THERE…: A SECTOR STRATEGY 56 REFERENCES 57 EXECUTIVE SUMMARY EXECUTIVE SUMMARY [ 6 ] [ 6 - - - The organizing principle the of Lobito Corridor is the that runs railway from the Port Lobito of in Katanga in Province the west the to Tenke of town DRCthe of in east. Both the and port railway of Lobito offer excellentlogistics for moving fruits out theof country. Prices for a 40 shipping foot reefer container are competitive, between 2,500 US$ and 3,000US$ Rotterdam/Antwerp, to with a route that firstconnects a feeder boatto Namibe and Luanda, before time is between transiting Europe. Transit to from and days 18 Rotterdam. 21 to Luanda The two provinces Benguela of and Huambo have distinct agro-ecological conditions. Benguela, situated the at coast with the city major Benguela as its capital, has a 50 km coastal the at plain west, gradually the running to up planalto the ‘litoral’, Litoral Benguela’s is characterized Huambo. of rainfall and low night and temperaby high day EU DEMANDEU FRUITS FOR demandThe for EU quality fruits increases on year the with Netherlands Germany, year, and the UK the biggest importers. is the The EU largest importer fruitsof importing globally, more than 40% the of total traded value. The most traded fruits, value, by are: banana, citrus, grape, and melons.mango Prices and for citrus banana avocado, pineapple, beenhave stable for the lastten years and average 0,80US$ per kg 1,05 and for per US$ banana kg for citrus (import avocado Crops like and grape value). are generally more high-value commodities, with average prices over the last five years tively US$ of 2,60 and US$ 2,25 respec per kg. Specifictrends in the EU are: greater(1) emphasis on certification: socially certified; stricter (2) phytosanitary regu the Directive, newlations EU (following 2019/523); and more emphasis on seafreight,(3) replacing air freight, and reducing carbon dioxide emissions. THE LOBITO CORRIDOR tures. Temperatures fluctuatewithdistinct a season winter during between June and the year, The September. province Huamboof is largely situated on a highland with plain hills, the planalto with cooler temperatures and higher rainfall (1,366 permm year). - Thesupermarket sector is welldeveloped with Kero and Shoprite. like chains major Visual quality mostof fruits appears decent, with attention for quality standards producer at level. Domestic supermarket and wholesale prices for fruit citrus, crops like pineapple and grape appear lucrative, and higher than world market prices. There is a large fruit segment, juice with numerous domestic brands that produce in-country. There is limited availability of young plants (seedlings orplantlets) of improved cultivars avocado, citrus, e.g.of mango, pineapple and passion fruit. Map existingMap and potential fruit production areas thein Benguela and Huambo provinces. Assess production and market opportunities for sixfruit major commodities with higha potential for export the market. to EU Selected fruit crops are: avocado, banana, citrus, grape, mango and pineapple. Develop business cases for geographic hotspots that can start exports the the in to short EU to medium term. [ [ [ [ [ [ [ The Provinces Benguela, of Huambo and Kwanza representSul 40% total of Angolan fruit production. fruit 2015 Roughly since imports stabilized have between23 US$ and Out 32 million. these of imports apple and pear rank highest, followed citrus by exportsand grape. Angola’s are a more of recent that year Since andnature basically started 2017. in exports increased have steadily, growing from US$ 400,000 and 2.5 close to US$ to 2018, in million are expected General character double 2019. in to ANGOLA’S FRUIT SECTOR [ [ [ [ istics fruit sector Angola’s of are: [ [ [ The main objectiveThe main the of studyprovide isto the privatesector and the government both of Angola and thethe / EU Netherlands with the necessary information for investments in the Angolan fruit sector and the development the of Lobito corridor. Specific objectivesof the studywere to: INTRODUCTION EXECUTIVE SUMMARY [ 7 ] [ 7 m s K e · i 90 r on i t da n on c n o i i t t c du c ou o B r 0 du

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13°0'0"E D Map of main fruit production areas in the province of Benguela a n Based on imagery satellite the production areas of the six crops were mapped. ‘hotspots’ production of stand out with clusters clear Specific areas or and pineapple production mango banana, of areas For citrus the(see above). map geographic cluster consolidation was less explicit. The report further provides detaileddescriptions the of fruit farming systems; in terms of: yields, varieties, production windows, farm gates prices, and pest and diseases. FRUIT PRODUCTION AREAS IN BENGUELA AND HUAMBO Throughout the two provinces 83 commercial fruit farm were identified.pineapple farms are well represented Especially Benguela in citrus and with and farms Huambo, and 32 27 respectively. The Bocoio of Municipio has a large number pineapple of farms, mostly between and 15 10 ha. The Municipio mango farms bigger five has Benguela in Farta Baia of with average an around of hectares. 20 Whereas most citrus farms and mango use furrow irrigation mostfarms commercial banana use drip irrigation. Avocado and pineapple farms are rainfed. FRUIT COMPANIES IN BENGUELA IN AND COMPANIES FRUIT HUAMBO i m i k E S S S " " " 0 0 0 ' ' ' 0 0 0 ° ° ° 4 3 2 1 1 1 EXECUTIVE SUMMARY [ 8 ] [ 8 - - Climate change: Unpre change: Climate dictable rains & floods Panama diseases: Spread of & citrus greening Level of sector organization of Level The phytosanitary system Access to finance Doing business: Rule of law corruptionand for Domestic prices market fruits some inputHigh prices THREATS WEAKNESSES s s e e i i · r · r · a a - s s m d d m e e K i n s i n 0 K r r 0 e u 9 u i m a a 9 r o o K d a d 0 s B B n d 9 n

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e OPPORTUNITIES Government focus on export and import substitu tion Availability of reefers and cargo space Specialty niche products (organic) UJES & the Research Centre Cavaco in STRENGTHS Agro-ecological conditions at the coast Land and water availability Domestic market for quality fruit and juice Banana & mango meet EU requirements InfrastructurePort rail and connection Lusophone The Su Su 1 2 3 4 5

a 1 2 3 4 5 c SWOT AnalysisSWOT of Angola’s fruit sector ed o c e FRUIT SECTOR SWOT ANALYSIS Basedin-depth on 20 sector and 16 company inter views,interviews4 with Dutchimporters, and the GISand Sensing Remote analyses, the study arrived theat SWOT analysis: following of theof currentlybest producing farms which were interpolated and extrapolated the (in case grape) of taking into account: temperature, rainfall, altitude and availability. water n c u g u p a u n d d d a n o o r a o Ma r P G B Pr Pr -

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grape mango banana able. Asable. a result a series were maps of developed, particular in indicating that the litoral is very suitable for the expansion grape banana, of and The threemango. below maps highlight this GIS- supported exercise that was based on the results Suitability maps of: banana, mango and highlighting grape; excellent conditions litoral in Benguela’s The study further investigated the potential for expanding the current production locations, making projectionswhere of conditions are most favour AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION EXECUTIVE SUMMARY [ 9 ] [ 9 - - Clear privateClear sector incentives invest to export in fruit farms, including loans at favourable terms: with loans interest lower longer-term rates and years.grace periods 1–2 of for that investorsA land has land bank available fruit key at production locations. Development large of irrigation schemes along the coast, possibly organized a public-private in partnership. A sound phytosanitary system, with well-trained inspectors and electronic certification. Sectorsupport services, professional like nurseries for plants young and agronomic advice. [ [ [ [ [ CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS analyses, all account into one winner clear Taking Benguela, of Province the in area litoral the emerges: and the production grape banana, of andmango. Looking the citrus at planalto grows lower well at altitude areas between of 1,400 and 1,550 masl and rainfallslightly annual 1,000-1250 of lower mm. These areas are interesting for the domestic market, substituting for imports from South Africa and Spain. For exportproduction see don’t we enough opportunities given the high farm prices, gate high disease pressure and strict phytosanitary EU regu lations for citrus. Looking the at litoral area, Angola become could the ‘Peru Africa’ of very having production similar conditionsterms and in temperaturesnight day of andand the humidity, absence rainfall. of order In getto there it is recommended implement to a broader fruit sector development strategy, ingre dients be: which of could [ [ [ [ [ - - - - presents cluster a mango more of covers around3,500 do Cavaco Vale land of ha Dombe Grande tion. The valley has sufficient water crop production and is situated for next the to railway irrigated that runs the to Port do Cavaco The Lobito. of Valle has excellent production conditions, with high temperatures high relative humidity 26°C), of (average A number rainfall annual = 80%)and (250 low (rH mm). the in companies of apply valley good agricultural practices and crop yields are more high at than 30 t/ha. the doCompanies Cavaco the in have opportu Vale nity start to exports the to European Union. The cost price is acceptable, their quality and productivity is high, and the scale production of is interesting for foreign buyers. Importantly, do not require bananas strict phytosanitary measures, making it an easy there’ get start‘to order to exports In crop first with. the activities following need be to implemented in the next 2–3 years: (1) socially start Global certified GAP certification and a process; (2)access to organize finance to invest in farm expansion, infra structure and certification; (3) organize the logistics ensuring fast transit times from Lobito to process; Rotterdam/Antwerp (maximum of21 days). than 50 companies, together comprising more than 1,000 ha. The areas hosts a number professional of farms that produce 15–20 t/ha quality of mangoes Atkins varieties. Kent,of Keitt and the Tommy Like Dombe do Cavaco, GrandeVale has high average temperatures, humidity and low rainfall; with rela tively disease low pressure. The cluster mango is situated on fan an alluvial with rich soils. Mango prices are modest 0,21 US$ at per kg delivered in Luanda, creating good opportunities for exports. In order facilitate to exports, investments are required packhouses in with storage cold facilities requires mango banana, for certification.Unlike and strict phytosanitary measures, for which Angola’s Ministry Agriculture of the take to lead, have will developing protocols/guidelines to control fruit flyat farmlevel (using a systemic approach). Good potential exists and Organic Trade for both Fair export production. The with more than 700 dedicated ha produc banana to BUSINESS CASES: EXPORT BANANA AND AND BANANA EXPORT CASES: BUSINESS MANGO FROM VALE DO CAVACO AND DOMBE GRANDE 1 INTRODUCTION introduction [ 11 ] [ 11 - Map existingMap and potential fruit production areas thein Benguela and Huambo provinces. Assess production and market opportunities for sixfruit major commodities with higha potential for export the market. to EU Develop two business cases for geographic hotspots that can start exports the the in to EU short medium to term. OBJECTIVES [ [ [ The objective main this of study provide is to the privatesector and the government both of Angola and the Netherlands withthe necessary informa tion for investments the in Angolan fruitsector andthe development Thesethe of Lobito corridor. investments potentially restore could the status of Angola as agricultural an powerhouse and provide jobs for the localpopulation. Specific objectivesof the studywere to: [ [ [ - - - - - BACKGROUND As this study reveals, Angola more and more is able substituteto for fruit imports domestic by produc The Lobito Corridor, and in specific the provinces and Benguela, Huamba of is known for its excellent conditions for fruit production. Whereas the lower situated Benguela province produces tropical fruit the pineapple Huambo and banana, mango, like province, with altitudes higher than 1,200 masl, iswellpositioned for fruit avocado crops like and citrus. At higher altitudes even strawberries, peach and pear grow well. At the moment these crops are mostly produced for the domestic market, with a sizeable middle class present in bigger cities like andLuanda Benguela. ment the over past years. particular In Angola’s MinistriesTransport of and Commerce, and the Port Authorities visited and Luanda of Lobito have the Netherlands on a number occasions of explore to partnerships.At one these of visits a presentation was made that included Ethiopia’s of Mapping a Fruit fruit highlighting sector, opportunitiesmulti for modal transport At the to (EU). European Union the time, Minister Angola’s of Transport, attending thepresentation, andDutch representatives from Foreign Affairs and studya similar be for would assessing valuable Agriculture, indicated fruitAngola’s that export opportunities. tion (see Chapter 3 on the Angolan fruit sector), while exports a number of fruits of are on the increase. As such, Angola instead a net of importer fruits, of becomingis slowly a net exporter fruits. of Acceler ating this trend, are the plans and ambitions the of Angolan government, highlighted the in PRODESI plan: the plan to Support Production, Export Diver sificationand Import Substitution.Increasing fruit exports is important reduce to forex dependency, in a world with prices. oil highly volatile Angola and the Netherlands been have strong partners agri-logistics in andagricultural develop 2 METHODOLOGY METHODOLOGY [ 13 ] - - - - tion companies. In-depth interviews with a selection larger 20 of and more professionally run companies. In-depth company interviews focused on: farm andsize production, yields, production windows, varieties, pest and disease management, irri gation, input and output markets and prices, certification, labour, transport andfinance. access to Sector16 interviews with government repre sentatives, fruit wholesalers and traders, input suppliers, train stations and the Port Lobito. of market Interviewsinputsavailability, focused on: services, government activities, research prices, infrastructure development, farmer organizations and cooperatives), transport(e.g. options and costs. A map showing key production showingkey map A areasAngola, in based on information provided a study by that Support wasTrade part Project the ACOM, of EU’s de Apoio ao Comércio). (Projeto Developmenta database of with85 fruit produc and certification;market windows;volumes and specificprices;crop and issues diseasesto related and phytosanitary measures. Literature studyon market global trends; e.g. certi fication, climate change, consumer preferences and logistics innovations. ANGOLA AND LOBITO SUPPLY SUPPLY ANGOLA AND LOBITO ANALYSIS [ [ [ [ [ [ [ The results of these analyses are mainly reflected fruit Chaptersin sector 3 and 8 on Angola’s and the PSD challenges analysis. The supply analysis looked both at market and production issues. At the heart these of are the fruit production companies,as well as the fruit markets and input suppliers. The project undertook the activitiesfollowing this to end: [ [ [ Results these of analyses are presented Chapter 4 in Market demandEU and trends. global - - market and production Analysis of EU importvolumes andvalue, price development, major data (ITC Trademap): sources production of importing and key countries. Interviews with four Dutch importers, looking at their requirements in terms of: varieties, quality Establishing the study’s Crop and scope: focus selection and hotspot initial areas DemandEU analysis: market requirements and global trends analysis: Angola supply conditions determining mapping: Fruit existing and potential fruit production areas General recommendations and business cases: exportmain opportunities and boundary condi tions for realizing them EU DEMAND ANALYSIS DEMAND EU FOCUS AND SCOPE FOCUS METHODOLOGICAL FRAMEWORK [ [ [ [ The EU demandThe analysis EU on the is built basis key of importand export thedata market. of EU Further, the study analysed fruit trends major the in EU’s contributed that activities The patterns. consumption theto analysis are: The undertook team an inception mission the at start theof project select to the six fruit crops, develop thedetailed methodology discus initial an and have Some the of outcomes the of inception mission are included Chapters in 5 and 6 on respectively the Lobito corridor and the mapping. Fruit sion on key marketsion on key and production constraints. At an inceptionmeeting Huambo on in Thursday 13 June, attended government key by andprivate sector representatives, the six fruit crops were selected. 1. 2. 3. 4. 5. The study worked fiveinterrelated along activity areas: METHODOLOGY [ 14 ] - - - A validation meeting on 17 July in Benguela, July in A validation meeting on 17 discussing the preliminary PSD challenges analysis and envisaged business cases. A meeting with Dutch importers the at Fresh Produce September, 3 Tuesday on Zoetermeer, Center, discussing export opportunities from Angola. A meeting with actors key the in Lobito Corridor, Lobito on in Tuesday theat Hotel Terminus 10 discussingSeptember, production supply and logistics topics. A final meetingin Luanda withkey government partners, and companies foreign missions, on Thursday 12 September Sana, Luanda). (Epic Afterwards, ArcGIS10.4.1was used forinterpola tion theof six fruit crops,Interpolation using IDW theof Analyst extension. Spatial Tools As a result, three interpolated altitude, of maps precipita tion and temperature, were generated for each fruit crop. In the final stage, theseintegrated, algebraic using operations,with as a maps were result one interpolation for map each fruit crop. GENERAL RECOMMENDATIONS GENERAL RECOMMENDATIONS AND BUSINESS CASES [ [ [ [ Based on the interviews, the fruit and mapping secondary information sources, two business cases wereselected. The business cases are a combination a geographicof hotspot and fruit crop the having potential for short medium to term exports the to EU. For the selected business cases additional detailed level, farm at cost-price on: collected was information transport modalities and overall margins the in chain both the exporting(at and importing side). Furthermore, preliminary findings were presented and discussed at: [ [ [ [ Based on the feedback during these meetings, and analyses,own a number general of recommenda tions were formulated on ‘what does get it to take including boththere’, company-level and sector- recommendations. level Results these of activities are highlighted in Chapters 6 and 7 of this report: Fruit mapping and Agronomic suitability.

------Existing fruit sensing). production areas (remote Because limited agricultural statistical informa Angola, in tion resorted we is available satellite to imagery for existing mapping this fruit areas. To end, used we 25 the of images Sentinel-2 satellite, Zone33S of theof WGS-84with0% cloud cover, with resolution a spatial UTM, taken July 2019 in meters. The 25 10×10 of were images united using the mosaicking tool available of enhance filtering, of number A 5.3.ENVIprogram the software ment andextraction steps were implemented afterwards, in order to Classification improve of pixels for the data six fruit crops was quality. performed, pixel pixel, by the using Maximum Likelihood classifier, with an acceptance threshold 99%. of was maps of under Validation taken by field visitsof trainedUJES (Labsigder) of number a collectedpointsGPS staff. were from fruit producing farms the (i.e. in-depth company interviews), which were superimposed on the clas sifiedmaps, verifying whether production areas corresponded computed to fruit crop classes. In the end, five out theleaving one on grapes, as there were too fruit maps were developed; little grape production activities present the in two provinces high potential (though having for it). develop The Agronomicsuitability mapping (GIS). ment the of agronomic suitability is maps based on key factors that influence cropaltitude, growth, temperature and precipitation. this, In i.e. werewe restricted the by availability free of and accessible data. The classificationinformedthe by data that was provided by as further farm interviews; particular in those farms with the highestproductivity. For these farms the preciseinformation on altitude, temperature and precipitation As was brought together. such, the coordinates the of farms with the highest produc tivity served as a reference for identifying ideal conditions for fruit production both in provinces. FRUIT MAPPING: FRUIT REMOTE SENSING AND GIS [ [ [ [ In parallel In with the supply analysis worked we on thefruit mapping. The consisted mapping two of main activities: (1) the mapping of the existing fruit production projections areas, and (2) on potentially suitable fruit production areas, a suitability analysis: 3 ANGOLA’S FRUIT SECTOR ANGOLA’S FRUIT SECTOR [ 16 ] [ 16

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a S l o FRANCE, SPAIN AND AND SPAIN FRANCE, PORTUGAL COMBINED 31X 0 a e b 2 z u 3 g 2 an am n 9 u w e 1 , K B H 7 1 9 , 0 5 GDP PER CAPITA US$ 4,101 :

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rov rov m a d 26°0'0"E P P W e N d c ands u n POPULATION (2017) POPULATION 29.8 million29.8 GDP (2017) 124.2US$ billion OIL EXPORTS (2018) 29US$ billion (2nd largest in Africa) LAND AREA 1,246,700 km2 d e o ! . g r Key figuresKey of geography and economy of Angola

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e n e a ! . ! . r 0 e 4 2 i d B ! . ! . 3 ! . ! . ! . a B 0 ! . n 6 ! . 4 Z a 1 ! . 2 3 u ! . e L ! . b 8 i c ! ! A a A 2 m d a 1 n i N 3 b 3 ! . ! . Figure 1 Figure companies of Angola (ACOM, 2018) a FRUIT PRODUCTIONFRUIT IN ANGOLA 12°0'0"E C Limited data is available on theLimited and data is available size value of fruitAngola’s sector. Only aggregated informa Before the Angola civil used out broke 1975, war in be to a major exporter of banana, in addition to coffee, sisal, sugar cane and cotton, and it was self-sufficient forall food crops except wheat. Currently Angola imports more its of than half food. For those less acquainted to the economy and geography Angola, of the following figureskey can give some roughoverview: The red highlighted figures present theaggregated production volumes fruit all of crops Angola. in The twoprovinces thatstand out are the province of Benguela, as the largest fruit producer with more fruits, tons of than 1 million with Sul and Kwanza more than 800 thousand fruits.tonsof Together with Huambo province they represent 40% total of Angolanfruit production. the largest Additionally, fruit production are companies plotted on the map, with Novagrolider particular of interest this to study, as it is the exporter main fruits of this at moment. tion overall was fruit obtained sector, on Angola’s bringing together production main areas and key production companies. The presents above map this information. S S S S S " " " " " S S S 0 0 0 0 " 0 " " ' ' ' ' ' 0 0 0 0 0 0 0 ' 0 ' ' ° ° ° ° ° 0 0 0 8 6 4 2 0 ° ° ° 1 1 1 1 1 8 6 4 ANGOLA’S FRUIT SECTOR [ 17 ] [ 17 - - 0 0 0 0 7,000 2,000 5,000 4,000 17,000 21,000 61,000 33,000 198,000 2,455,000 2,274,000 6,536,000 2,063,000 US$ (2018) US$ (2018) 26,059,000 11,904,000 0 0 0 9,000 2,000 2,000 1,000 3,000 6,000 6,000 15,000 14,000 407,000 507,000 323,000 2,030,000 8,466,000 US$ (2017) US$ (2017) 32,225,000 14,702,000 0 0 7,000 1,000 1,000 1,000 5,000 83,000 11,000 10,000 16,000 15,000 46,000 14,000 211,000 2,023,000 5,645,000 US$ (2016) US$ (2016) 32,225,000 11,186,000 especially and for citrus. pineapple, mango Though non-recordedinformal trade canstill be substan tial. Table 2 below portrays Angola’s first steps in the international fruit export arena.At this speed (basicallyAngoladoubling from onwards), 2018 becomecould a net exporter fruits of 2022. by The likelihood this of happen to depends a large to extent on the number exporting of companies stepping their up production volumes and produc tion quality. fruitlower imports. fruit 2015 Roughly since imports stabilizedhave between 23 US$ and 32 million. Outthese of imports apple and pear rank highest with 2018, in a value 12 close of US$ million to followed citrus by and grape with more than US$ respectively.6 and 2 million The table following provides the fruit details imports: Angola’s of

- 0 0 5,861 9,000 6,000 8,000 4,000 55,000 10,000 10,000 30,000 15,000 13,000 14,000 258,000 120,000 2,429,000 US$ (2015) US$ (2015) 23,215,000 11,356,000 0 0 0 0 0 0 0 0 0 0 62,000 52,000 73,000 251,000 209,000 7,044,000 US$ (2014) US$ (2014) 32,238,000 15,099,000 66,046,000 Angola’s fruit exports 2014–2018 (Source: ITC Trade Map) Trade ITC Angola’s fruit (Source: exports 2014–2018 Angola’s fruit imports 2014–2018 (Source: ITC Trade Map) Trade ITC (Source: Angola’s fruit imports 2014–2018

Pineapple Papaya Banana Citrus Grape Mango/guava Melon (sweet) Melon FRUIT TOTAL Avocado Citrus FRUIT TOTAL Apple/pear Grape Melon (sweet) Melon Papaya Pineapple Banana Avocado Mango/guava FRUIT TRADE TO AND FROM TRADEAND FROM TO FRUIT ANGOLA Table 2 Angola’s exportsAngola’s area more of recent and nature exports that year Since basically started have 2017. in increased growing from 400,000 US$ steadily, to Based 2.5closeUS$ to 2018. in on informa million largesttion from exporter, Angola’s Novagrolider, this figure will probably double in 2019. exportmain crop taking Angola’s is banana, more than 90% of the total. Export destinationsPortugal and South Africa, Limited that order. in include: Spain, other exports DRC and to place take Namibia, Table 1 Mainly due to the due to Mainly boom oil that started earnest in 2008, in Angola hasbeen importer major a fruits of The boom which oil in now. peaked to up 2012, in Angolayear imported After million. 75 close US$ to 2012 oil prices went down, which is reflected in ANGOLA’S FRUIT SECTOR [ 18 ] [ 18 There are basically twoparallel marketstreams, thehigher quality supermarket channel that is estimated do 20% to the of fruit consumer sales and the informalmarkets that are supplied by wholesale markets Mercado like Treinta Luanda, Mercadoin Quatro Benguela in and The Huambo. Alemanha in informal market is estimated do 80% to the of fruit sales. are the or aggregatorsTraders (quitandeiras) between link main the small-scale producers and the wholesale markets. They typically rent a truck transport to fruits from the province to the market. There is limited availability of young plants (seedlings or plantlets) of improved cultivars avocado,citrus, e.g.of mango, pineapple and passionfruit. There University issmall a nursery theat University José of dos Eduardo Santos (UJES) and a few Huambo, in small-scale initiatives. [ [ [ [ [ [ Domestic supermarket and wholesale prices for fruit citrus, crops like pineapple and grape appear lucrative, and higher than world market prices. Thesupermarket sector is welldeveloped with Kero and Shoprite like chains major present in the country. Visual quality most of fruits appears decent, with some attention for quality standards producerat level. There is a large fruit segment, juice with numerous domestic brands that produce in-country. This roomleaves for B-grade processing fruits. of Locally produced the in market juices available include: mango, passion fruit, mucua, pineapple and guava. GENERALCHARACTERISTICS OF ANGOLA’S SECTOR FRUIT [ [ [ [ [ [ Based on number a wholesale of market and sector interviews Luanda, Huamboin and Benguela, the generalfollowing observations can be made about fruitAngola’s sector; also comparing Angola to other sub-Saharan African countries: 4 EU MARKET DEMAND AND GLOBAL TRENDS

EU MARKET DEMAND AND GLOBAL TRENDS [ 20 ] [ 20

10,000,000 8,000,000 $ ns US to

‘000 8,000,000 6,000,000 lume e in UK France Poland Poland Spain Spain UK Italy UK Belgium 5 lu Vo

Va 6,000,000 4,000,000 18 18

20 20 4,000,000 17 17 20 20

Spain UK UK France France Germany Netherlands Belgium Germany France 4 16 2,000,000 16

20 20 2,000,000 15 15 20 20 14 14 20 20 Fruit importsFruit and volume (above) in value EU-28

) ) r r s s e e a a a a o/ o/ ya ya et et he he ap ap ado ado pa pa we we Ot Ot Citru Citru Gr Gr oc oc guav guav Melon Melon (s (s Pa Pa Banan Banan Mang Mang neapple neapple Av Av Pi Pi UK Germany Netherlands Netherlands UK UK UK Spain France Italy 3 Figure 3 Figure (below), 2018 (Source: ITC Trade Map) Map) Trade ITC (Source: 2018 (below), Germany, theNetherlands Germany, and theUK, that order;in with the three most traded commodities banana, citrus Figure and 3 presents grape value). (in the main imported fruits the to EU. - 39.1% 26.1% 47.6% 37.8% 39.3% 38.5% 45.2% 56.8% 44.7% 40.6% VALUE Netherlands 2 France Germany France Germany Germany Netherlands Portugal Germany Spain 35.1% 37.3% 37.6% 41.7% 31.0% 36.3% 45.3% 11.8% 38.5% 36.3% VOLUME Germany 1 Netherlands Belgium Germany Netherlands Netherlands France Germany Netherlands Netherlands Top-5 ImportersTop-5 Map) of fruits Trade ITC in the (Source: by value EU EU fruitEU imports as a percentage world of total

OVERALL * Includes: Tamarinds, cashew apples, jack fruits, lychees, passion fruit, pitaya and pomegranate AVOCADO BANANA CITRUS GRAPE MANGO/GUAVA (SWEET)MELON PAPAYA OTHER* PINEAPPLE FRUIT TOTAL Avocado Banana Citrus Grape Mango/guava (sweet) Melon Papaya Pineapple Other* EU IMPORTS: EU ANDVOLUMES VALUES imports (Source: ITC Trade Map) imports Trade ITC (Source: Total importsTotal fruits of and nuts the stood to EU at Trade (ITC 55 and 34 billion US$ 2018 tons in million HS-codeMap, The top-3 08). biggest importers are Table 4 ages of 45% andages 45% of higher. The table also shows that the especially EU is a large importer sweet of Cantaloupe), Galia, melons (e.g. citrus, and pineapple, with banana import percent * Includes: Tamarinds, cashew apples, jack fruits, lychees, passion pomegranate and fruit, pitaya Table 3 Based on data from the last five years the(including UK) remains the largest importer the EU-28 terms In of fruitsMap). of Trade the in world (ITC the importsvolume EU 36% the of total world’s It shows the is also EU and value it in reaches 41%. morepaying than other countries fruits. for (quality) 3 below illustrates this: Table EU MARKET DEMAND AND GLOBAL TRENDS [ 21 ] [ 21 0.95 2.51 2.53 2.37 1.05 2.30 0.81 1.09 1.86 PINEAPPLE High volume commodity at 1.3 million tons import (fourth largest by volume) A low value at around US$ 1.00 per kg Costa Rica Costa US$ (2018) PAPAYA Small traded volumes A bit more than 50 thousand tons per year Fluctuates Fluctuates between US$ 2.00 and US$ 2.40 per kg Brazil 2.97 0.97 1.94 1.98 0.99 2.37 2.28 1.04 0.80

US$ (2017) SWEET MELON Low value, bulky export commodity Yearly volumes of more than 1 million tons Import prices are stable at around 1.00 US$ per kg Brazil, Costa Rica, Honduras 2.74 0.95 1.94 2.18 2.27 0.77 2.07 1.03 1.00 US$ (2016) MANGO over over the last five years of 2.25and US$ per kg. The table above provides an respectively US$ 2.60 overview the of price development fruits major of theover last fiveyears. General lessons that can be drawn from these data are: Volume growth of 6% per year Volume reaches 660 thousand tons in 2018 (including guava) Prices have gone down slowly at 2% per year, now averaging US$ 1.85 per kg Brazil, Peru, Ivory Coast - PRICE LEVEL PRICE

MARKET AND VOLUME AND MARKET 2.19 0.93 GRAPE 0.78 0.96 1.99 2.47 1.01 2.04 2.09 MAIN EXPORTING COUNTRIES MAIN EXPORTING Very little growth in the market both in terms of price and volume The third largest traded fruit commodity by volume at US$ 4.4 bil lion per year High-value crop at US$ 2.20 per kg (outside EU-28): South Africa, Peru, Chili US$ (2015)

- - - - CITRUS Very competi tive market with stable prices and slowly grow ing demand at 2% per year The second largest traded fruit com modity by volume The number tradedone commod fruit ity by value (outside South EU-28): Africa, Egypt, Morocco 2.27 1.13 2.07 1.03 1.06 0.88 2.40 2.40 2.44 US$ (2014) US$ 0.80 BANANA Slowly growing demand at 3–4% per year The largest traded fruit commodity worldwide Low, stableLow, levelsprice at per kg Panama, Costa Rica, Ecuador AVOCADO Pineapple Papaya Other* Mango/guava (sweet) Melon Citrus Grape Banana Increased Increased demand (volumes doubling every five years) * Includes: Tamarinds, cashew apples, jack fruits, lychees, passion fruit, pitaya and pomegranate Avocado At generallyAt high volumes of close to 1 million tons per year A stabilizing price level at US$ 2.50 per kg Peru, Chili, South Africa The graphs also and show citrus that banana are by far the most traded commodities taking volume, by moreup than imported 70% all of (selected) fruits. Prices for these two commodities been have stable for the lastten years 0.80 and average US$ per kg 1.05 andfor US$ per banana kg for citrus (import avocado Crops like and grapevalue). are generally more high-value commodities, with average prices Yearly average 5 Yearly import Map) Table prices per Trade major ITC fruit crop (Source: EU MARKET DEMAND AND GLOBAL TRENDS [ 22 ] and margins are very this in market. low Though there are possibilities Trade for scale smaller Fair producers. Importers lookingare always for new sourcing areas; especially because recurring of droughts Southin Africa and Mexico. Angola is part the of (Africa, ACP Caribbean and Pacific) trade agreement of the EU, having reduced import tariffs on fruitsbanana. like consumptionGlobal fruit of and vegetables will grow from € 4.8 € 2.1 to trillion between 2015 and 2030. The market main forfruits and vegetables will remain the with European Union a population of 500 consumers, million that are quality conscious and with a high purchasing power. Because of transport climatic become will evenmore important; change, benefitting fuel seafreightoverairfreight. efficient Multimodal transport systems, reefer using containers road, rail and combining and seafreight, become will more important; decreasing travel time and bringing down costs. Certification will become even moreimportant; looking beyond Global GAP at socially certified labels.and climate [ [ [ [ [ [ [ [ [ study A major onfruit global trendswas presented theat Wyman, Logistica Fruit (Oliver 2018); 2018 of Disruption fruitin and vegetabledistribution. numberA generalof trends, relevant Angola, to can be distilled from this report: [ [ [ [ [ - Peru has gone rapidly up the in last decade as a major exporter of fruits (especially: avocado, grape and mango), benefited by good climatic conditions, availability water and professional growers, andlogistics. This shows the potential a newof country the if total is right. package ProductionAngola in largely followsthe seasons distinct a with Southern hemisphere, the of colder season during the months June, of July, August This and is opposite September. the to productionmain seasons Northern of hemisphere countries Costa like Rica, Egypt and Morocco and targeted. be can windows market specific such as Countries seasons, with similar and hence competitors South are: Africa, Peru and Chili. Phytosanitary regulations are becoming stricter and stricter, especially for citrus and mango. Pests and diseases that are particularly looked after are: fruit fly,false coddlingmoth and black spot latter (the two For a relatively for citrus). new fruit exporting country it will be difficult to implement measures all the at same time. Certification products:bare of the Global-GAP now is minimum; companies need other certificateswell as like socially certified (e.g. FairTrade or SMITA). and pineapple theFor banana market is consoli dated by a few multinational players: Chiquita/ Fyffes, Delmonte and Dole. Competition is high GLOBAL TRENDS [ [ [ [ [ [ [ [ [ [ Talking to a number to importers of Talking the in Netherlands they indicatethe trends following termsin market of demand and production: 5 THE LOBITO CORRIDOR AND THE PROVINCES OF BENGUELA AND HUAMBO THE LOBITO CORRIDOR AND THE PROVINCES OF BENGUELA AND HUAMBO [ 24 ] - The Benguela-Katanga (en.wikipedia.org) railway

Figure 4 Figure iting to Europe. Terminal Handling Costs Handling are around Europe.iting Terminal to time is Transit 400US$ are negotiable). (which between from and days 18 Rotterdam. 21 to Luanda Rotterdam/Antwerp, with a route that first connects first that route a withRotterdam/Antwerp, a feeder and boat Namibe Luanda, to before trans - THE BENGUELA RAILWAY AND LOBITO OF PORT tions. At the moment the Port receives around 450 reefer containers and meat fruits per month (mainly exporting while and vegetables), around 5 reefer containers(mainly fish). The train reaches directly to loading sufficient are there andport the of inside the trucks lines shipping Dutch, Main are Nile available. MSC, Bolloré. Prices for a 40 shipping foot reefer container are between 2,500 US$ 3,000 and US$ to The Port Lobito of has been reconstructed between and can now serve and 2016 2013 ships and 20 50,000 (twenty-foot TEU equivalent containers) The total capacityper day. the of port is estimated at 11 million tons capacity for reefer per containers connec with 370 year. There is sufficient The organizing principle the of Lobito Corridor is the that runs railway from Lobito and Benguela in Katanga in Province the west the to Tenke of town DRCof the in east. The is 1,866 railway km and long connects the Port Lobito of with important mining cupperareas both in belt. the DRC and Zambia’s On the Angolan side the corridor runs through the provinces Benguela, of Bié The and Huambo, Moxico. was reconstructedrailway between 2006 and 2014. THE LOBITO CORRIDOR AND THE PROVINCES OF BENGUELA AND HUAMBO [ 25] - s n n o

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l r e l l B a F ai E V 0 C R 0 0 , 0 d 0 4 n e !. g e L 0 !. 0 0 , 0 5 !. 16°0'0"E 3 !. 0 0 0 , 0 Monthly temperature in Huambo andrainfall 0 !. 3

!. e l 0 i f 0 !. 0 o , r 0 P 5

2 c !. i h reducing the crop growth and pineapple. banana of is veryRainfall an average 250 of at low per mm Figure 6 below presentsyear. the average tempera tures and rainfall data per month Benguela. in The province Huambo of is largely situated ona highland with plain hills, the with cooler planalto temperatures and higher rainfall. The capital city of masl and has average Huambo is situated 1,718 at temperaturesannual around of 20°C and an annual average rainfall 1,366 of mm. Night temperatures Augustin can below go July and 5°C in August temperatureswith day relatively stable 25–30°C at throughout the year. Figure 7 Figure (Source: climatedata.org) (Source:

15°0'0"E p a r !. g o p 0 0 o 0

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13°0'0"E u H - a l 0 e S S S S S u 0 " " " " 0 0 0 0 0 0 0 0 0 " 0 0 0 0 0 0 0 0 0 0 g 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n 0 0 0 0 0 9 8 7 6 5 4 3 2 1 9 ' ' ' ' 8 7 6 5 4 3 2 1 0 e ' , , , , , , , , , , B 0 0 0 0 1 1 1 1 1 1 1 1 1 1 0 ° ° ° ° ° 5 3 4 2 1 1 1 1 1 1 is characterized by low rainfall Litoral Topographic map of theTopographic Provinces of Huambo

Monthly temperature in Benguela andrainfall

Figure 5 Figure and Benguela stations with railway AGRO-ECOLOGICAL CONDITIONS AGRO-ECOLOGICAL CONDITIONS Figure 6 Figure (Source: climatedata.org) (Source: tures fluctuateduring the seasonwinter between June and September. year, with distinct a Night temperatures August,in can16°C down to go and high day and nightand temperatures. high day Tempera Benguela’s Benguela’s Thetwo provincesBenguela of andHuambo have distinctagro-ecological conditions. Benguela, situated theat coast with the city major Benguela as its capital, has a 50 km coastal the at plain west, the ‘litoral’, gradually Huambo. the running of to up planalto Most areas Benguela in are below 1,200 masl. THE LOBITO CORRIDOR AND THE PROVINCES OF BENGUELA AND HUAMBO [ 26 ] [ 26

– Absent Upcoming (seafreight) Absent Absent Small (airfreight) Absent ANGOLA EXPORTS EXISTING

– ANGOLA AGRO-ECOLOGICAL POTENTIAL High, in lower areas of Huambo High, in litoral of Benguela High, throughout province Huambo High, in lower areas High, in litoral of Benguela High, in intermediary zone of Benguela

– In theIn end, passion fruit, and were guava papaya not selected because of the limited import volumes as well as relatively theof high domestic EU, prices Angola.in Still, for niche markets these crops can be interesting, e.g. airfreight organic passion fruit. The market for sweet melons Brazil isdominated by and Costa Rica and prices are though low; there be (before window during a small could May–June the sets cold forproduction in) the along Benguela coast not melons (hot and line dry). have For now, been taking account. into - - Low High Medium Low Medium High ANGOLA CURRENT PRODUCTION EU MARKET DEMAND (price/kg) High & stabilizing Low & stable Low & stable High & stable decreasing & High Low & decreasing EU MARKET DEMAND (volume) Medium-high & increasing High & stable High & stable High & stable Medium-high & increasing High & stable AVOCADO BANANA CITRUS GRAPE MANGO PINEAPPLE FRUIT PRODUCTIONFRUIT AND CROP SELECTION Table 6 SummaryTable of crop selection criteria atures some in areas. (lower) the In end, grape was selected as the sixth crop because the of EU’s demand and high prices. Also, promisingproduc tion results been have achieved other in parts of the country summary, In the Bengo). (especially in reasons for the six selected crops are as follows: In general,In the Benguelaof Province has for long been and producer a major mango banana, of pineapple. Feedback from government officials and private sector representatives indicated that mango growsbasicallywell– from Benguela Balombo, to and pineapple production islargely concentrated around theNorthern Benguela area of the in Bocoio. citrus of Municipio For Huambo, stands out as the fruit major with crop, avocado as a potential crop given the high rainfall and conducive temper 6 FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 28 ] -

d e c u

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e DOMINANT DOMINANT IRRIGATION IRRIGATION p 0 y ! !C A T XW 2 c 0 furrow irrigation furrow irrigation furrow rainfed

rainfed drip irrigation 3 8 , 9 7 0 , 0 1 : 1 0 4 ) 5 0 ha 19 15 23 14 15 2 ( SIZE 0 AVERAGE s e i r a i a b d e m c n o - a e n u g e i Z c n o c v n o 9 i B o n i 1

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PANIES u z u c r NUMBER i OF COM a n A m g e i

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m K B H M W d a e d N c n u e d g o Farms in the corridor Lobito and their main charac r e

P L Mango Pineapple CROPS Avocado Banana Citrus TOTAL teristics Table 7 with farms 32 and 27 respectively. For citrus the focus on orangesis mainly and lemons, and a lesser to degree also on tangerines and limes. The Municipio Bocoio of haslarge a number pineapple of farms, mostly between and 15 10 ha, though two farms 40have and 100 production of ha the (increasing The 19 peraverage ha to same farm). holds for the Farta, fivemango farms in Baia where one farm had 67 hectares, compared the to average the of other four farms 12 of hectares. Whereas most citrus and farmsmango use furrow irrigation most commercial farmsbanana use drip irrigation. Though there were a few citrus farms and mango that used drip as well. Avocado and pineapple farms are rainfed. -

16°0'0"E 7 6 3 4 3 1 5 6 1 3 3 ! A 5 1 8 8 ! 9 7 6 A 4 2 5 1 1 1 1 3 ! A ! 9 !! A 9 4 AA ! 8 A ! 1 1 A o 4 7 0 1 ! b 1 A 2 4 1 am 8 !C u 2 3 H l 1 u 1 S 3 8 a 3 3 1 z 3 1 ! 1 A an 3 ! A 2 u 1 C 4 0 9 3 1 1 3 2 1 0 1 3 0 1 3 1 a l

14°0'0"E e u g n e B 8 7 Presence of fruit companies in Benguela, Huambo

0 0 XW 7 1 XW c c XW XW XW XW 3 3 XW XW XW 1 0 3 3 4 9 0 2 3 5 XW c c c 0 4 1 Figure 8 Figure and Kwanza Sul and Kwanza MAIN PRODUCING FRUIT COMPANIES Throughout the provinces Benguela of and Huambo the producers main the of six selected fruits were mapped. This exercise was informed interviews by with representatives key from the Ministry Agri of Thetable shows that especially citrusand pineapple farms are well represented Benguela in and Huambo, Citrus farms are spread throughout the Province whereas Huambo, of pineapple farms were more concentrated the in Bocoio of Municipios and Ganda. The bigger farms banana located are all the along coast and especially close Benguela. to The larger farmsmango are also located the along coast and especially the in Farta. Baia of Municipio the In underlying database brought we together 83 farms, and described we their characteristics. main 7 Table provides summarized information the of farms. culture andculture wholesalers the at markets, main knowing their suppliers. The shows above map the presence of those farms larger than five hectares dedicated to fruit production. exercise included we three farms as Sul Kwanza in For this specific well,as these were advised professional as larger, farms with export potential. S S S " " " 0 0 0 ' ' ' 0 0 0 ° ° ° 4 2 0 1 1 1 FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 29 ] m s K e · i 90 r on i t da n c on n o i i t t c du c ou o B r 0 du

du P 0 60 s o o

r a 0 17°0'0"E r e , P n P

0 pl u a o 5 p n m g a 2 a , e n n 1 a n : om a i 30 1 C M B P d n 15 e g e L 0 o b a m d o BANANA l n a a B G l a b o u C oi o c b o

16°0'0"E 9 B m i 1 a o Well-managed farms obtain yields of 40 tons/hectare than more Cavendish: Williams and Grand Nain Especially nematodes, and a little bit sigatokaof planting from material Improved South Africa, propagation local All drip with boreholes using shallow groundwater with professional farms of number A washing, grading, packing and storage) (cold chambers ripening Akz 100–120 per kg (US$ 0.30–0.35) for higher end retail No certification yet October till May o t b 0 i r o m 2 a ob g

a l i t L e a s on u C h g u C n g e u B A

a t r n i a

F d a í e a c B u d o r YIELD P PRICES INPUTS WINDOW DISEASES VARIETIES FARM GATE IRRIGATION PROCESSING PRODUCTION PRODUCTION CERTIFICATION

15°0'0"E a m o u b k i o h m a b C r du e m e n a i o k l b h e a a s C B a B K ga o n g ba n a E d a l go n n a i ba G h o m C l a e a L l i B

h e l C t n ba o u C M o a be d p n u m i e p v u a a o K Q C be oi c a l o oi om e B g a m i gor y bo ha on W n m a h i a C a e K ba i r s

14°0'0"E v P m s a i - a l a a y a o j P t a K n C gi a E K e gu o i n o e t t op i a B a obi K l a L l e be u a m l g u e n t e a gu B K n a o l g o n a B h a l a K a t r a Current fruitCurrent production in Benguela: Banana, e F

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13°0'0"E D Figure 9 Figure mango and pineapple a MAIN PRODUCING FRUIT AREAS AND CHARACTERISTICS: BENGUELA n i The shows map that the largest production of is locatedbananas the along coast the in Municipios of Catumbela Lobito, Kanjala, and Benguela. are Farms irrigated with subsurface that can water be found reasonableat depths The (10–50 meters). area is popular for construction given the vicinity major to citiesBenguela like and Lobito and establishedan tourism industry. There are signs salinization of closer to the coast. As such the first few kilometres next the to sea are less suitable for agricultural production. general, In is sensitive banana salt to stress and farmers the in area should be cautious theirdraining soils well. Some general characteristics cluster theof banana are main shown on the right. Basedimagery on satellite the current production locationswere mapped; also taking account into the producers. smaller The shows above map the current production areas for the three selected crops in Benguela province. m i k E S S S " " " 0 0 0 ' ' ' 0 0 0 ° ° ° 4 3 2 1 1 1 FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 30 ] [ 30 PINEAPPLE No certification yet November till May Well-managed farms obtain yields yields obtain farms Well-managed between 30–35 tons/hectare variety local a and Cayenne, Smooth called Fruit fly is present, limited other diseases materials,Local multiplied locally Rainfed No packhouses, and washing and packaging facilities Akz 150–200 per kg (US$ 0.45–0.60/kg) higher end retail YIELD PRICES INPUTS WINDOW DISEASES VARIETIES FARM GATE IRRIGATION PROCESSING PRODUCTION PRODUCTION CERTIFICATION Pineapple productionPineapple concentrated is mainly the in intermediate zone betweenthe litoral and the planalto altitudesat ranging from 800 1,200to masl. There is a large clusterpineapple of farms the in Municipio Bocoio and particular in the in Commune of of Monte Belo. The cluster consists both of larger and growers. Specificsmaller characteristics the of crop and the area: MANGO No certification yet tillDecember March Improved planting material from planting from material Improved South Africa from irrigation boreholes using Furrow groundwatershallow No packhouses, and washing and grading facilities High season: Akz 100 per kg (US$ 0.30/kg) for higher end retail Fruit fly is present, limited other diseases Well-managed farms obtain yields yields obtain farms Well-managed tons/hectare 20–25 between Keitt, Kent and Atkins Tommy YIELD PRICES INPUTS WINDOW DISEASES VARIETIES FARM GATE IRRIGATION PROCESSING PRODUCTION PRODUCTION CERTIFICATION The key mango area is moreThe mango the situated to key south of Benguela province, particular in the in of Municipio Farta.Baia Mangoes higher growto well up altitudes Balombo of and Ganda, though farms are more scatteredand depending on rainfall. cluster A of farmslarger mango can be observed the at border theof Communes Dombe Grande and Farta. Baia hereFarms use furrow irrigation and are general larger than the in other parts the of province. Some specificinformation from the farmsinterviewed in the area: FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS 9 [ 31 ] [ 31 17°0'0"E 9

17°0'0"E 1 1 0 0 2 2

t s s · u · u g g u u A A

n i n i

d d e e c c ma u ma u d d o o nha o o r g nha o r g n o P n u P i Chi u ng i h Chi a ng go h c a g go t c g t n a hiu ge n a a hiu ge C c a o C bo c l n Mu m o o bo l Mun m o o g Ka lo Lun o bo K h g n Ka lo Lun K bo 0 h um go c n u 0 m um go c T 9 u gu n - m T M 9 gu n - e nga a M l Sa e nga Chi a l Sa Chi ha ca bu Hun i ha ca bu Hun i m ch m ch T hilo T hilo 16°0'0"E Ka

16°0'0"E Ka -T -T e do a l e do 1 a v 0 l 1 a v 0 0 a 6 c lun 0 ima o 6 c i l e b lun ima o b i l be ,1 b Mba ,1 m Mba o Thi Ba 3 Ka m a o Thi Ba 3 Ka a a m i B 4 u a Bim o 4 u mb H o d ima mb H ,1 d l pip ima n ba ,1 l pip n u ba 4 l i u 4 m l Hua Ka i a m la Hua Ka e Chi a 0 e :2 la B e Chi a a 0 e :2 B a 3 a 1 3 1 m u g m Ka Luv gu a a a n o Ka Luv a l a a a i a n o h a l á i a U h n á a U e H 5 n nh pe a ng He 5 C nh ku pe 1 u ng ta C e ku 1 u hi ta E l e a li Alto hi E l t c a li a Alto Ek e i t c l T a Ek e i Ka l T a p o Ka Ka a p j b la o Ka j 0 b n la imb Le 0 m n imb i o Le m a i bo o g u a bo du g u a a n d du njo t a a n d o n ng njo t o n ng L o a s L o l o go L a om Ka Lon s l o go L om Ka la Lon e k i la e a k nd e Ga i r a bi ma nd s e Ga r m ta Lon bi Ka ma s a u m ta Lon u Ka e ok a du u i la u e d k ok du s i la r d k n U n Uk s r n Kum U a n Uk o Kum u a Chi Us i o d u Mun e Chi Us j i t o nje n d Mun e j t n o nje n n c o B n

15°0'0"E n e c a u j i o 15°0'0"E B u e a u j t nje i c d u o s t nje c d d c a n o s i d e c a n B o i i u e

B o r Chi i t u

ch s i d r Chi t ch T Chi l P s i d T Chi a

o l P a a

o r n o a r p n o - P u i d p

P u i d

c a s m i c a s m i g u n g u r m o n t r u m o o i v t u o i v C M C A S S S C A C M d S S S d " " " n " " " 0 0 0 n ' ' ' 0 0 0 e ' ' ' e g °0 °0 °0 g °0 °0 °0 e 4 3 2 e 4 3 2 L 1 1 1 L 1 1 1 Current fruitCurrent production in Huambo: Avocado

Figure 10 Figure and citrus MAIN AREAS PRODUCING FRUIT AND CHARACTERISTICS: HUAMBO lence of citrus lenceof farms. These are spread throughout the province though more the towards west the of province than further inland. Especially the western partthe of and Muncipiothe Bailundo, of Municipios and Caála the Longonja up take Londuimbale, of largest production areas the of Huambo. of Province Thegrey shaded highlightsarea the avocado main producing areas, whichwere detect hard to on meter grid as they grown are in a 10×10 mainly backyards or more scattered throughout the farm. TheHuambo of particularly map shows thepreva FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 32 ] [ 32 -

AVOCADO NA Margarida, Fortuna, Hass and Geada Mealybug, Botryosphaeria ribis No certification yet September–December Local nurseries, limited use of fertilizer pesticides and furrow supplemented by Rainfed irrigation No packhouses and packaging facilities Akz 250 per kg (US$ 0.75/kg) YIELD PRICES INPUTS WINDOW DISEASES VARIETIES FARM GATE IRRIGATION PROCESSING PRODUCTION PRODUCTION CERTIFICATION tionsthat of farm the to Benguela province (having production similar results conditions); this of are presented the in next chapter. Foravocado limited information isavailable because the of dispersed production. of nature Some key findings from the market and one farm interviewed are below. The case grapes of study couldn’t we detail in because non-existent of production Benguela in visit did we a grape farmand However, Huambo. in Bengo, and extrapolated we the production condi lemons and and Clementine tangerines, Clementine and CITRUS and Siciliano , often more than 200 hectares, No certification yet December till May Most farms obtain yields of around tons/hectare5 Baía, Valencia and Navel oranges, Mexerica Rugoso Local and own nurseries, limited use of fertilizer and pesticides furrow supplemented by Rainfed irrigation Except for a few no packhouses and packaging facilities Akz 150–200 per kg (US$ 0.45–0.60/kg) oranges for Tahiti limes Fruit fly, blackspot, mealybug, powdery mildew, Phytophthora hibernalis YIELD PRICES INPUTS WINDOW DISEASES VARIETIES FARM GATE IRRIGATION PROCESSING PRODUCTION PRODUCTION CERTIFICATION Forcitrus see we orchards are older thatof many origin with mostly local varieties produced. The farms are larger fazendas with between 50 to 20 hectareswith dedicated citrus. to The remainder the of farm is usedfor grazing or Farmers a few hectares have fallow. lays mainly focusing on oranges and lemons. Coloring of oranges does the due to place take colder months of June–September, in unlike other tropical countries. Blackspot was observed a number at farms, of and appears be to a problem throughout the province applying right(though manageable agronomic practices). More detailed characteristics the of production system for most the of farms: 7 AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION s e i · r · a s m d e K i n 0 s r 9 e u i a m r o K d a 0 B s n d

17°0'0"E 9

17°0'0"E e i n u s 0 r u e o 0 a i o t d 0 B 0 i ,

B l n 6

0 a a u s l 0 s 5 e o p e 0 0 n i 2 ti B , 6 u 0 i

o c l , i 1 a g ti a : 0 l n n y p e 1 5 i u 0 a e u 2 c Sta , i

3 g w B M l n 1 B i n : a F e 0 1 5 3 R C B Mu 1 5 ! 1 0 9 0 1 s 0 a 2 e r t ) s ) s 9 A

16°0'0"E d a 16°0'0"E 1 d ) u e e ) y 0 r e t e t g t e 2 i c A g

c i u t g i i ) a r s ) ) r a ty t ) b r A i t u r h

l h s e i a w g s e w g

AGRONOMIC SUITABILITY: POTENTIALt FOR EXPANSION g n [ 34 ] b i e v u i i e o v i o

A u H A L R ta H A L R

i ( ( ( ( ( ( ( ( d n

S i

1 2 3 4 5 1 2 3 4 5 Su a

c ed o n u c g a u d n n d o a o Ma r B P Pr

15°0'0"E 15°0'0"E o o a b a b d d m n m n o a s o l a l e a G i a G · r B B ! a s · m d e K i n 0 r l 9 u l a s a o a e d b i m b B r n u 17°0'0"E K u a 0 u s s C 0 d o 9 C e o

i 17°0'0"E e o 0 i n i i r o t 0 B u 0 o ! i a ,

c l o 6 c d 0 a a o l B o n 5 o

p o e B u s i 2 B 0 b s , b u e o c 0 0 n i 1 ti m g B 6 : 0 i m

o ! n l , a n 1 a a ti i 14°0'0"E a 0 u l o 0 b i e 14°0'0"E o b t p y o e 5 t 3 i i o B M r i a u m r 2 c Sta b m , i

b o g a w o l a i o n 1 B n i i g 5 o : g a L e a F 0 1 a L n 1 n 3 a C B Mu R C ! a o C l o l e h e h 0 u 5 C u C ! 1 g g 9 ! n n 1 e s e 0 0 a B B 2 e ! r t ) s A

16°0'0"E d

) s u ) e 9 y a t e

t 16°0'0"E 1 g d i e c ) g 0 l r e a i u i a t e t ! 2 ) a r ! A t )

t c b r t A g r h i

a s s e ) a w r a ty a ) g t i t u r n F e i v l h i o F i

i g s e w

g u R H A L a b u e i v a o í ( ( ( ( d í

A S ta a A L R H

i e a 5 1 2 3 4 ( ( ( 13°0'0"E ( n

13°0'0"E a B i c B

2 3 4 5 1 Su n u

a ed o d Suitability for irrigated mango production in Suitability forirrigated banana production in c n g

o u n a d B o Pr Ma r P S S S S S S " " " " " " 0 0 0 0 0 0 ' ' ' ' ' ' 0 0 0 0 0 0 ° ° ° ° ° ° 2 3 4 2 3 4 1 1 1 15°0'0"E 1 1 1 Benguela province Benguela Benguela province Benguela Figure 12 Figure Figure 11 Figure 15°0'0"E o a b o d a m n b d o a l m n - - a G o a l B a G B ! l a l b a u b C o u i o C o i c o ! o o c , a fungal B b o o B m b a

14°0'0"E i m o b ! t o a i r 14°0'0"E i m o b b t o o a i i o r m g b a L o a n i o a C g o l a L n e h ! a C o l u C e h g u C n g e ! n B e B ! a t r a ! ! a t r F

a a F í

13°0'0"E a í B 13°0'0"E a B S S S " " " 0 0 0 S S S ' ' ' " " " 0 0 0 0 0 0 ° ° ° ' ' ' 2 3 4 0 0 0 ° ° ° 1 1 1 2 3 4 1 1 1 AGRONOMIC SUITABILITY Starting see we with banana that especially the strip alongside the coast is very suitable for banana production. Given the consumption high water of thebanana existing irrigation schemes around the cities Lobito of and Benguela, as well as the scheme more the to south Farta, Baia in stand out. These dark green coloured areas are highly suitable productionfor banana because the of warm and humid production conditions, and good avail water The suitability lines as follows similar mango of Bestthat banana. of production areas are adjacent theto sea and run North-South, with line in the land strip that is 50 km wide and roughly sea at level. Due the to colder period winter the mangoes develop a distinct single harvest season. Flowering starts during the coldest months July and of August, after which fruits start maturing from September onwards. The harvest main is between December and March. Production the along coast is advan ability. Towards the Chongoroi of Municipio good Towards ability. production conditions exist as little well (currently explored) because the of altitude low conditions and availability water through the Coporolo River. If rail transport the to Port Lobito of is the objective then the area from Bimbas do Cavaco Lobito is to bestserved. This isstretch a km 43 of and runs three times per day. tageousbecause theof rainfall, low thatremains around 250 mm per year, and hence significantly reduces pest pressure anthracnose for disease, and bacterial blackspot. Fruit fly presence should be aslower well. Based on the results from the performing top farms termsin yield of and production risks pest like diseases made interpolations have we and and extrapolations mostof suitable growing areas of the six selected crops. The do maps not indicate that fruit growing is impossible outside the of dark and greenlight coloured areas, only be that it will more difficult to achieve high yields, e.g. in terms of water assumptions Specific temperatures. and availability are explained for each the of crops below. s e i r · a s d m e i n K r 0 u a 9 o d B n 17°0'0"E u s s e o 0 i e i 0 t B i r

· 0 l 0 a , a 6 a m l 0 d s K p e 5 5 n i e i 7 u u 2 c r , i g o a 1 n n : B d

u 1 e n s 0 u B M e 0 3 i o 0 t 0 i 0 l B 5 ,

a 5 0 o p 1 0 i b 0 c , i

18°0'0"E m 1 n a : 0 u 1 u 5 s H M 9 2 a 1 e 5 0 r . 2 2 A 1

t y s ) 16°0'0"E t 0 i u l d i ) e 9 g t e b 1 s u c g a i 0 a t ) a r A i ) 2 e

t r h ) r u t s e w AGRONOMIC SUITABILITY: POTENTIAL FORn EXPANSION g [ 35 ] [ 35 d i A s S i e v o

)

u te H A L R e d e ty ( ( ( ( g l c i g

e i l u p ) i 1 2 3 4 5 a c ) tr r p h b A

u s e w a g n i e ta v d o i e i

o u n (H (A (L (R d i

S e

1 2 3 4 5 Pr P c s u u d tr

17°0'0"E i o C Pr

15°0'0"E o a b d m n o a l a G s e B o i r g · a a n m g d u s s K i l n 5 n e e h i a a 7 i u r c r b o · o t l a a u o a B d s o

d g C C m h n e o s i n i n c u K e r 0 0 i u u T o o 0 t a - 9 0 i c o 0 l M B a d 5 ,

l o a B 0 n o a

o p B 17°0'0"E 0 i c u b s b i 0 c e o 16°0'0"E , 0 i h m i 18°0'0"E m 1 0 t n c B a : i a

0 T l 0 u i 1 14°0'0"E u , o b o 5 a 6 a t l o H M 0 2 i b r p e m 5 i b m o a u 5 2 c i o o . , a i g g a 2 L d 1 u n n n : 1 n a C H u o l 1 e u 0 l e h i B M 0 3 u a C 9 g B a a 1 l s n 5 h á 0 a 1 e n a 2 e e u B l ) r C t k a d A s 0 E b

) u te e s m ty 9 g i c i g a i l 1 u u ) i a e o ) tr r j d 0 r h b A a

s n e t n w 2 g A r n i e ta o v a o

o t i i a

L g y m s u ) F t (H (A (L (R

16°0'0"E n d

u u S l d o e

1 2 3 4 5 a k i ) í e L g e c s t j U e b a u u u c 13°0'0"E n g a i B t d e )

a 15°0'0"E tr r A i j )

17°0'0"E i t r o h d u s e w n C g n i S i e Pr i Suitability forrainfed pineapple production in v Suitability for citrus production in Huambo o

h H A L R d e ( ( ( ( c l

e T p 1 2 3 4 5 c p u a S S d e " " S S S o 0 0 ' ' n " " " i 0 0 0 0 0 ° ° ' ' ' Pr P 2 3 0 0 0 1 1 ° ° ° 2 3 4 1 1 1 o Benguela province Benguela Figure 14 Figure Figure 13Figure province g a n g u i n h a c o t

15°0'0"E l o a o - - g C h o n c a b u T - d M a m n l o a a l c a i G 16°0'0"E h B c T o b l m a o a b d u u n H C o u l i i o a c B a a o l h o á B n b a e u l C m k a a E b

14°0'0"E i o b t m o i i r m u b o o a j d i o g n n a L n o o a a C o l L g m e h n u u o C k L e g j U n n e

15°0'0"E e j B d n i h c T a t r S S " " a 0 0 ' ' F

0 0 ° ° a 3 2 í 1 1 13°0'0"E a B S S S " " " 0 0 0 ' ' ' 0 0 0 ° ° ° 2 3 4 1 1 1 For citrus focussed we on the Huambo, of Province lookingmainly oranges at and lemons. Huambo In thebest production areas can befound the in lower areas 1,200 of 1,600 to masl as temperatures and the Generally, there. higher general growth are crop northern Bailundo, of Municipio part Huambo of and the southern part Caála of stand out as suitable production given the areas. high rainfall However, and humidity during the months November of to April the trees can be affectedby many pests and diseases evidenced the (as in and earlier chapter); rigorous pest and disease management is required. As such, forexport production, other areas (globally) look more suitable. Pineapple prefersPineapple temperatures between and 20 30°C, as well as high relative humidity between of and 70 80%, and a more loose soil enhancing drainage. These temperatures, humidity and soil types are throughoutavailable the Benguela province. Given the distinct colder season in Angoladuring the months June of September till pineapple produc tionsand warmer temperatures. It is for these reasons that pineapple production in Benguela can beProvince mainly found altitudes at between 800 and 1,200 masl that receive around 1,000 of mm average temperatures have rainfall per of (and year Given the tradition 22–23°C). growing pineapple of rainfed Angola,in used we rainfed production as the basis for our interpolation exercise. This does not meanthat pineapplecan’t grow lower well at altitudes irrigation. using tion seriously drops during these months. Growing pineapples at lower altitudes with irrigation could extend season. the Rainfed pineapple production prefers humid condi s e i r · a s d m e i n K r 0 u a 9 o d B n 17°0'0"E u s e o 0 i 0 t B i

0 l 0 , a 6 a l 0 p e 5 i s u 2 c e , i i g · r 1 n n : a u 1 e d s 0 n B M e 3 i u r m o a K 0 B 5 d

6 1 n s u e i 5 o t i 6 l B 0

3 a ,

18°0'0"E 0 o p 1 9 4 i b 7 s 1 c i 9 m a 0 : n a 1 e 2 u u r t 0 H M ) 2 A s

16°0'0"E d ) u e 0 t e ty 1 g i c l g i u i ) a r 0 ) t b r A h

s e w 9 g ta n s i e AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION v 1 o i i [ 36 ] [ 36

a 0 H A L R e ( ( ( ( d 2 r

Su e t

1 2 3 4 5 A

s c e ) y u u t p d i g l ) d a i te u r b o A a

G ) age t ) tric i Pr n i er u

igh es v ow S d

e o c d 1 (H 2 (A 3 4 (L 5 (R u 17°0'0"E a c d o o v Pr A 15°0'0"E o a b d m n s o a e l i a G r s · a e B i s · r d m e a i n K o r d 0 u s g a l n 9 a e o i n a u d g r m u B o b n i n a

K 0 a h B 17°0'0"E u d u s

6 c o n e o 0 s C l t o i u i o e 0 a o t B i i 5 o

g o t 0 h l 0 C i , 6 a l n B c c 6 a l

3 0 a u T , 0 18°0'0"E o p o - e 5 p o i 1 4 M i a b B u 2 l 7 c b c , i i a 9 g m 1 : n n c m a n : i 1 u a u u 1 16°0'0"E e h

14°0'0"E i o 0 0 b H M c M B t o 2 3 i T r m o b o a 0 b i o 1 5 g a L m 1 n o a a C 0 o l d u e h n H 9 0 u u C s 1 l i a g 0 9 a e n 2 s 1 r B e a a t a 0 l A h

s B á e 2 ) y n u a r t t e u i ) g l l ) C k A i s a ted

d u 16°0'0"E E b ) b u e A a t

e ty ) age t g ) m i tric o i i c n l g j a i u i i er u u

t n ) a r igh es ) v ow r S d t b r A o d

n a s e w g e o g ta n o a F n i e c v o i i d

1 (H 2 (A 3 4 (L 5 (R L

o u a m H A L R 17°0'0"E a í L ( ( ( ( d c d u

Su a k o e o

13°0'0"E 1 2 3 4 5 e v B U c j e Pr A n u p

15°0'0"E e j d a d Suitability forrainfed avocado production in r Suitability for irrigated table grape production in o

n i G h Pr c T S S S S S " " " " " 0 0 ' ' 0 0 0 ' ' ' 0 0 ° ° o 0 0 0 2 3 ° ° ° g 1 1 2 3 4 a n

1 5°0'0"E 1 1 g u i n Benguela province Benguela Figure 16 Figure Figure 15Figure Huambo province a h o c o l t a b o a o d g h C m n n c o a l u T - a G M a - - l B a c 16°0'0"E i h c l T a o b b u m C o o a i d u o n H c u l o i o a B b B a a l m h á a n a

14°0'0"E i o e u b l t C o k i a r m E b b o a i o g m o i a L j n u n a C o l d o e h n g o u a C n L g o m L n u e k e U B j n

15°0'0"E e j d n i h a c t T r a F S S

" " 0 0 a ' ' í 0 0 a ° ° 13°0'0"E 3 2 B 1 1 S S S " " " 0 0 0 ' ' ' 0 0 0 ° ° ° 2 3 4 1 1 1 Lastly, looked we table at grape production. For this used we map the existing grape productionlocations Catetein and Caxito Bengo of and Province extrapo lated the underlying agro-ecological conditions to theBenguela. of Province canWhat be observed, isagain, the high suitabilitycrop for producing this sufficientthehas The coastarea along line. ground andwater soils are well drained, sandy soils. The richer alluvial soils along the coast fit thisand can be very profile suitable for grape production; higherhaving pH and calcium levels. Avocado presents itself as a special case, as we observed high limited productivity farms the in two provinces Benguela of literature and From Huambo. knowwe that avocado grows well between 900 and 1,300 tropical masl in areas, with relatively high levelsrainfall of between of 1,000 and 1,500 mm per with mean temperatures betweenyear, and 20 25°C. These temperatures and altitudes can be found in the especially Huambo; of Province the at western part the of and Tchindjenje. Ukuma of Municipios For this study focused we on rainfed production, though plantations Peru in are and situated Chili thealong desert coast large using volumes of AndesSomething irrigation be could similar water. exploredAngola in (see also Business Chapter 10, cases). 8 FRUIT SECTOR SWOT ANALYSIS FRUIT SECTOR SWOT ANALYSIS [ 38 ] [ 38 - - - Climate change: Unpre change: Climate dictable rains & floods Panama diseases: Spread of & citrus greening Level of sector organization of Level The phytosanitary system Access to finance Doing business: Rule of law and corruption for Domestic prices market fruits some inputHigh prices THREATS WEAKNESSES - SWOT AnalysisSWOT of Angola’s fruit sector

UJES & the Research Centre Cavaco in Specialty niche products (organic & socially certified) Availability of reefers and cargo space tion The Lusophone connection Lusophone The Government focus on export and import substitu Port and rail InfrastructurePort rail and OPPORTUNITIES Banana & mango meet EU requirements Domestic market for quality fruit and juice Land and water availability Agro-ecological conditions at the coast STRENGTHS Figure 17 Figure Though Angola’s fruitThough exports Angola’s started have earnest in during the last two years, there are still chal of a lot lenges – as expressed – that companies hold by back further growth. These out both at challenges play macro-economic level (e.g. access to finance forex level availability) as well as company at and (e.g. selection inputs of and technical knowledge). In this chapter try we highlight the to strengths main and weaknesses fruit sector; Angola’s of looking at the agro-ecological, economic and logistical condi tionspresent. addition In analysewe number a of opportunities that can be seized and threats that could hinder further growth the of sector. A summary of the analysis SWOT is provided below: FRUIT SECTOR SWOT ANALYSIS [ 39 ] [ 39 - - seem THE LUSOPHONE CONNECTION LUSOPHONE THE Historical relations with Portugal and Brazil provide Angola with potential linkages professional to fruit growers and investment capital these of countries. Brazil and melon mango is in big exports and could assist Angola providing in the right inputs and expertise. addition In the Portuguese fruit market, though much than smaller the one north-western of Europe, provides good export opportunities. PORT ANDPORT RAIL INFRASTRUCTURE The facilities and prices offeredLobito are other comparable to exporting destina by the Port of tions like Chili, Peru Chili, tions and South like Africa. time Transit is reasonable Rotterdam Luanda) to (from days 18 of and portcosts handling are moderateand still nego tiable. Reefer containers are sufficiently available, givengreater imports than meat) exports(of the at moment. feeder Currently, routes from Lobito run first through Namibe and then Luanda, taking an additional transfer days nine cargo larger to vessels connectto For most the to fruits EU. three weeks transit time ensure is the quality). maximum (to BANANA AND MANGO MEET EU MARKET MARKET EU MEET MANGO AND BANANA REQUIREMENTS prices gate Farm producers of the along litoral competitive, also at a global level. Specifically the prices (both and for mango roughly banana at Akz 100 0.30 or US$ per kg during the high season) withare line in world market prices. addition, In the varieties cultivated are demand in varieties Cavendish,of and Keitt and for Kent banana respectively.and mango addition, In the peakof harvest banana Angola’s coincides with the highest demand the (December–May). in EU - -

that runs adjacent to harbours excellent produc has good groundwater and surface water STRENGTHS Angola has a well-developed high-value fruit market, controlled supermarket by Maxi Kero, chains and Shoprite.These introduced have chains quality standards for fruit and source directly from larger farmers. addition, In Angola has a well-developed juice market, offering fruit farms an outlet for their lower grade fruits. DEVELOPED DOMESTIC MARKET FOR QUALITY FRUIT AND JUICE LAND AND WATER AVAILABILITYLAND AND WATER Though land around Lobito and Benguela is getting more scarce planned due to estate real investments and tourism opportunities, the wider area that runs the down to has ample Namibe of Province for fruitland available farm investors. Anecdotal evidence further suggests that land, fallow owned absenteeby farmers, can be leased reasonable at rates.The the land along coast as aswell the at planalto especiallyavailability, the in vicinity the of main rivers Catumbela of and Corporolo Benguela, in and the Kunene, Balombo and Ceve rivers Huambo. in These fertile areas have soilsalluvial well-suited for fruit production. cially thecially coastal (litoral) plain the plateau (planalto) tion conditions for a large number tropical of and subtropical fruits. The advantage main this of coastal stretch roughly of 250 km and long 50 km wide is therainfall, low constant temperatures, slope,limited well-drained fertile soils and high water The conditions pestavailability. limit and disease pressure and ensure steady maturation quality of fruits; particular in and grapes. banana mango, As presented previous in chapters, Angola is endowedwith favourable natural resources. Espe AGRO-ECOLOGICAL CONDITIONS: AGRO-ECOLOGICAL CONDITIONS: THE LITORAL FRUIT SECTOR SWOT ANALYSIS [ 40 ] - - - HIGH INPUT PRICES PRICES INPUT HIGH Input prices for e.g. pesticides, fertilizers and seedlings are higher than neighbouring countries. It is estimated that bags urea, NPK, of and potassium aswell as pesticidessulphate, a Mancozeb, like fungicide, and Nemacuri, a nematicide, are double the price South of Africa. imported Similarly, young plants, seedlings mango like plantlets, and banana are triple double to the price South of Africa. ABSENCE OF CERTIFICATION Apart started haven’t companies from Novagrolider, Global-GAP certification yet. thatcompanies are the in process start to certi There are a few DOING BUSINESS: RULE OF LAW OF AND RULE BUSINESS: DOING CORRUPTION Angola out 190 ranks of countries 173rd the in Doing BusinessBank’s that list.World Topics Angola specifically scores low at are: getting credit enforcing trading across 184), (rank borders (174), contracts A number these of topics (186). touch on an underdeveloped law’ of the ‘rule in country. corruptionFurther, is a problem, with Angola ranked countries on the Inter Transparency 164th out 176 of Corruptionnational 2016). Index (of DOMESTIC MARKET NUMBER A FOR PRICES OF FRUITS For citrus, grape and pineapple domestic market prices are higher than world market prices (FOB The advantage isthat, hence, Luanda). there isan interesting business opportunity for these crops domestically; also the in import of light substitu tion. For exports, the at moment Angola however, is not competitive. Possibly these crops can be but grown for the regional market (DRC, Namibia), this market size. is in limited fication, and are applying the basic For those quality that companies have Global GAP. principles of products and the ambition export, to this be would a first step. - - WEAKNESSES Hardly any of the of any Hardly interviewed had companies taken fora loan their investments. Companies indicate that access to finance and excessiveinterest rates bottlenecksare major for their expansion plans. The new PRODESI addresses plan these concerns, and the fruit sector is prioritized these in plans. It is the at not clear moment small- if and medium sized enterprises can also access have these to facilities. ACCESS TO FINANCEACCESS The EU has enactedThe EU a new phytosanitary Directive The directive poses stricter (2019/523). March on 21 requirements for the export fruits of and vegetables, and particular in the export citrus of For and mango. the latter two crops systems need be to put place in that monitor the presence harmful of organisms like fruit fly and false coddlingand protocols moth need be to designed control to and/ (for citrus), or introduce effective treatments for theseinsects. At the moment, Angola has limited implementation capacity with comply to theseregulations. On the positiveand pineapple doside, not banana need a phytosanitary certificate. PHYTOSANITARY SYSTEM ment, irrigation infrastructure, targeted finance for fruit companies, phytosanitary services and input A number these of supply. topics are elaborated below; but it is theon that sum is greater than the parts and successful export been nations have able to organize their fruit sector tions and development programmes Ethiopia’s (e.g. through specific instituintegrated flower export strategy or Kenya’s Horticultural Crops Development Authority). At the moment there is coordination limited of sector activities; e.g. terms in knowledge of and education on fruit production, research and develop LEVEL OF SECTOR ORGANIZATION FRUIT SECTOR SWOT ANALYSIS [ 41 ] [ 41 - THREATS CLIMATE CHANGE: UNPREDICTABLE RAINS RAINS UNPREDICTABLE CHANGE: CLIMATE AND FLOODS The weather patterns both in Huambo and Benguela has causedare said change be to changing. Climate heavy rains and floodsin Benguela, Catumbela and Huambo been In rainshave and 2019. 2015 in Lobito, less predictable Given the continued and heavier. increase in global carbon dioxide emissions, more extreme weather is likely to affect fruit production bothin Benguela and Huambo. AND PANAMA DISEASES: OF SPREAD GREENINGCITRUS Increased international trade and limited inspec tions ports at entry of can cause introduction of new pathogens Angola. into Diseases most feared Panama (i.e. for banana (TR4) 4 Race arethe Tropical disease) and citrus greening disease. Diseases can be imported through affectedmaterials. planting - OPPORTUNITIES The University Jose of dos Eduardo Santos Huambo in has a strong Agricultural of Faculty Sciences which offers Bachelor and Agronomy in Masters and Agricultural Economics. A new programmes Masters programme be developed could for Horti UJES AND THE RESEARCH CENTRE OF CAVACO lookingculture, both the at Agronomy and Business Economics the of fruit value-chain. addition, In the ExperimentalResearch Station be Cavaco in could revived support to fruit with companies applied research on, e.g. pest and disease, and soil fertility management. Though not specifically studiedin this report there are goodopportunities for airfreight exports of nicheproducts limes, passion (organic) fruit like and Current papaya. prices lime look competitive, and someat farms the right varieties are being grown. The same holds for passion fruit and papaya, both requiring less demanding measures in terms of phytosanitary control. SPECIALTY NICE PRODUCTS LIKE PASSION LIMES AND PAPAYA FRUIT, Both the in Ports and Luanda of Lobito there is excess availability reefer of containers, that arrive empty.full The and leave same holds for the cargo space of major passenger flightslike KLM andTAP. As such rates lower can be negotiated for fruit export shipments. AVAILABILITY OF REEFER AND CONTAINERS CARGO SPACE The government’s Programa de Apoio à Produção, Diversificação das Exportações e e das Importações (PRODESI) has Substituição recently started; it supports a range activities of diversify to Angola’s exports (beyond and also oil) focuses on import substitution. Access to financecomponent the of programme, and the fruit sector is an important has been selected as one the of priority sectors. GOVERNMENT ONEXPORT FOCUS AND IMPORT SUBSTITUTION 9 PSD CHALLENGES ANALYSIS PSD CHALLENGES ANALYSIS [ 43 ] - (a fungus), citrus rust fungus), mite, (a , a bacteria), powdery mildew (a fungus), powdery, a bacteria), fungus), (a mildew , a fungus), citrus canker (caused, a fungus), by HUAMBO: CITRUS Good practices for planting material are generally well-developed and almost all farmers use techniques citrus for multiplying grafting varieties. Theyeither the nursery of the from seedlings grafted buy or that do agricultural research spacing Plant centre Huambo. in isalso with 6×4spacing a of similar quite meter most common. Some fertilizer NPK is used most by farms. Pruning trees of is also a common practice. Atthe same time, yields are very The farms low. interviewed achieved yields below of 5 t/ha marketable of fruits for lemons and oranges. This is compared 30–50 to t/ha on the best farm, or e.g. South in Africa more than 40 t/ha on average for oranges. The largest differences, andment,can be observed the in irrigation room and for improve pest- and disease management practices. All the farms selected for this analysis used a combination rainfedof and supplementary furrow irrigation. The source the of comes mainly water from a river, and is pumped the to farm and distributed small by canals and furrows. Given the costs for the pumps and fuel farmers leading tend irrigate to minimally, shortage water to for the especially crop, the in months the till September May of dry (the period) that coincides with the maturation and harvesting period. Pest and disease far management has by the biggestimpact on yield. observedWe number low fruitsof per tree, and high level disease of pressure. Typical disease include: Guignardia blackspot (caused Xanthomonas by Phytophthora hibernalis aphids, weevils and fruit flies(allinsects). This long list is compiled based on eight farm interviews and shows the extent disease of pressure the in area. This is related the to high rainfall environment in Huambo with around 1,350 rainfall of mm seven in months, from October April. till These are also the months that flowering andearly maturation takes which canplace; explain the number low fruits of per tree. Any support should focuson training of farmers on scouting pest of and diseases and their management (both biological as this and chemical), seems be to the most factor limiting for productivity increase.Given the high domestic prices, related importsworld and low market prices for citrus, the emphasis main should be onproducing quality fruit for the domestic market. - - BENGUELA: BANANA Production practices are generally for banana at a high level compared the to other three crops presentedAll farms interviewed this in chapter. madeuse drip of irrigation, improved cultivars, and applied relatively high levels agrochemicals. of Yields of the five farms interviewed are moderate high betweento 25 and 35 Farms t/ha per year. (Cavendish abroad from material planting buy often as a startWilliams) and do local multiplication through suckers afterwards. The thein area is the presence nematodes of the (in main problem forsoil) which pesticidesare being used,either applieddirectly or through theirrigation system. In addition, farms apply a rotation after the banana is ready for every renewal (about eight years). Rotation crops onions include and cabbages. maize, Probably some yield improvements can be made applyingby better rotation practices and a slightly period fallow longer e.g. The two sandy (of years). soils the in production main areas are very in low organic matter; to increase this it would be benefi cial to apply to compost cial This can manure. or animal turnin also increase the the of uptake inorganic fertilizers. addition, In given the proximity most of commercial farms the to ocean, salt levels appear to be high. Some form of flushingof salts is recom mended, combined prevent as with to (so drainage the salts of accumulation the in soil). Apart from the more generalSWOT analysis the study looked at specific farm level constraints for increasing crop productivity For and this quality. analysis looked we those at farms that more or less present the averagefor inputuse, agricultural practices and postharvest handling. Specifically we looked how ways these at farms can further develop and expand. In this chapter we specifically do not focus on the frontrunner farms already that have optimized their productionpractices; these farms rather serve as examples on bridge how to thegap. We specifically focussed on the four cropsmedium-sized with most farms: banana, citrus, mango pineapple. For bothavocado and grape too little and information was available. PSD CHALLENGES ANALYSIS [ 44 ] - - - FRUIT banana banana banana banana citrus / fruit passion citrus citrus mango mango mango mango pineapple LOCATION Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela Calenga, Caála Cuima, CaálaCuima, Catemo, Chipipa, Chipipa, Catemo, Huambo Ganda Dombe Grande, Grande, Dombe Farta Baia Monte Belo, Belo, Monte Bocoio COMPANY Francisco Bernardo BP Agro BP Fazenda MAM Fazenda Fernando Marques Fazenda MMM Fazenda Fazenda Simba LS & SS Ltd Fazenda Kavili Fazenda Vissoma Fazenda OtchivilisoFazenda TOP-10 COMPANIES COMPANIES TOP-10 Out the of twenty that interviewed companies we the it to next make the ten could following level qualityof production for the high-end domestic marketand exports; this is based on their current practices, yields, motivation and interest: Pineapple in general in Pineapple prefers well-drained soils as the crop cannot stand logging. water The crop can withstanddrought well as it is a Xerophytic crop, whichmeans thatits stomatacan be closedkept during the hot hours when the of evapotran day spiration is highest. Still, for optimal productivity, pineappleprefers rainfall annual an higher than well-distributed mm, 1,100 throughout the year. BenguelaIn rainfall Monte Belo) province (Ganda, is between 1,100 and 1,300 mm with five without months It is during these rain, May–September. months that productivity (colder) is seriously reduces no if irrigation is applied. Another solution canbe more intensivemulching, order in reduce to evaporation from the soil and increase soil temperatures. for farmers consist could Training supportof for more intensive cultivation tech niques that include (plastic) mulching, organic and inorganic fertilizer use, and supplementary irri gation. The added benefit of irrigation that the pineapple season can be extended, would also be producing thein months JuneSeptemberof till when market prices are highest. - - - BENGUELA: PINEAPPLE BENGUELA: MANGO Pineapple cultivationPineapple the in areas Monte Belo of and Ganda is characterized rainfed by production of local varieties that are mostly reproduced (through on thesuckers) farm. own are typically Farms between and and ha are 20 run 10 extensively, with m. Disease pressure densities plant low is 1×1 of and farmslow generalin hardlyuse pesticides. any Also fertilizer general, In use input low is a low low. output farming system is applied. Compared the to ‘top-farm’ the in area yields are the much at lower average farms with between t/ha, 5 and 10 the while No 1 farm achieved more than 30 t/ha. Improvements can be made terms in integrated of pest management to fight fruittraps and baits addition (in the to use pesticides) of fly; e.g. through and strict hygiene protocols removing and (e.g. destroying fruits onthe ground that serve as a startsource insects). of To exports, the farms would need to have strict fruit fly protocols,certification and packhouses. Training and be financial consideredcould develop to this e.g. starting support turn that in with supports farmer, a lead a number farmers smaller of around him. tion with from water a river or stream. Varieties grown are Keitt, Kent and Atkins,Tommy and often the grafted seedlings are purchased from South Africa use fertilizers NPK Farms cost. and both high a at insecticides Insec and fungicides mancozeb). (like ticides are used against fruit against anthracnose. Yields are relatively high at fly and fungicides more than 30 t/ha. The trees are often quite tall and wide, which makes harvesting difficult.Main issues observed do with to the controlling have white fly (which can spread diseases) andmanagement. At the moment none the of inter postharvest viewed a professional have companies pack house for grading, cleaning and packaging. Especially the along coast a number commercial of farmers small- and aresituated medium- that have farms.sized mango Apart from one large farm with theother 67mango, of ha farmsthe in cluster main farming, formango Dombe Grande, hasbetween 5 ha. Theseand 10 farms use gravity furrow irriga 10 BUSINESS CASES BUSINESS CASEs Valle do Cavaco – Export Banana [ 46 ] -

In additionIn the to infrastructure water the railway was developed from Lobito Port This Cavaco. to impliesthat goods can be transported directly container) from(by farm station to the to port. The distance between the station Cavaco of and the Port Lobito of is 40 km. includes lastproject,theThe finalized, be stillto expansion the of electricity grid. enable This will the farms use to electro pumps instead fuel of pumps for their irrigation systems and cold stores and ripening chambers. BANANA a e o ac Ar · r av an e b C v r i f o R U s o o a b ac ac m av i av C B C d n e g e L a VALLE DO CAVACO – EXPORT l e INTRODUCTION do Cavaco situated is a valley nextThe Valle the to River Cavaco the in close vicinity Benguela of city The covers valley (see around Figure 18). 3,500land of with ha more than 700 dedicatedha production banana to and the remainder is used for other horticultural onion, tomato, crops like cabbages and papaya. The received valley substantial government support, focused mainly at securing sufficientwater forirrigated crop production and extending the Therailway. infrastructure development project included the rehabili tation the of and dam a transversal Dungo 5,800 meter tunnel long that redirected from water the River This the allowed Cubal to Cavaco river. for the rechargethe of groundwater do As Cavaco. level the in Valle a result meters the in companies can valley a depth drill at water deep, 8–10 of significantly reducing the costs proximity for to the sea there is a drilling risk of salinization. Sufficient and flushing of soil pumping. saltsisand required drainage keep Givento the current high productivity place. in the u g n e B r ve Ri co va Ca O C A V A C

F O

S A B M I B m 2 K 9 o c 3 1 a 0 v 2 a

C t s u Valle do Cavaco do Cavaco Valle 0 g

2 6 u 3 A ,

3 n i 6

: d 1 1 e c u 5 d . o 0 r P 0 Figure 18 Figure BUSINESS CASEs Valle do Cavaco – Export Banana [ 47 ] [ 47 80%). The receives valley 80%). rainfall of = around 250 mm per year reducing pest and disease pressure significantly. As indicated has excellent irrigation above the Valley infrastructure and sufficient available. water The Valle do Cavaco has excellentThe production Valle conditions during least at with high temperatureseight months the of (October–May), (average year and 26°C) of relative humidity (rH COMPANIES THE theIn there valley are around 35 farms that on produce an area of banana 720 ha. A number these of applycompanies good agricultural practices; they use improved (often imported) varieties bananas their protect of they agro-chemicals; and quality banana and sufficient apply plantlets; they against bruising the (through use The production plastic of main bags). challenges include nematodes and a lesser to extent siga toga. Nematodes are being controlled by crop rotation and nematicides; leaves affectedby Crop yieldssiga toga are removed are high, with immediately. more than 40 t/ha the at more professionally run farms. A number the of farms have professional washing and facilities. cooling Current buyers include Kero and Shoprite, and prices are between Akz per the 100–120 kg peak(during or around 0.30–0.35 US$ season), per kg. THE AGRO-ECOLOGY An exemplary farm in do the Cavaco Valle

Photos 1–2 BUSINESS CASEs Valle do Cavaco – Export Banana [ 48 ] - - 0.02 0.07 0.41 $0.50 US$/kg 6 27 * AKZ:US$ 369 (1/10/2019): 150 Akz/kg AOA 183 AOA

UNIT kg 18 kg box 19.44 tons reefer 19.44 tons

AOA 150AOA AOA 480AOA UNIT PRICE UNIT AOA 117.000 AOA Companies in the Valle do Cavaco have the do CavacoCompanies have the opportunity in Valle start to exports to the European Union. Their cost price is acceptable, their quality and produc export to that want Farms need will invest to infrastructure, in record keeping and certification. Costs for this vary per of the the size farm and the existing infrastructure.Therefore, no detailed budgeting has been included here, rather provided have we a premium for the farms banana 50%of ontheir current farm price gate that should cater for the additional costs, as well as their system. There change to incentive the provide to margin profit higher a is a carton boxes factory Benguela, in available which can, with some adjust THE BUSINESS CASE tivity is high, and the scale production of is interesting for foreign buyers. Importantly, do not require bananas strictphytosanitary measures, it an making easy first cropto start exports with.Further, Angola ispart theof regulations ACP the of with reduced EU import tariffs. Also, looking the at current farm prices gate the export case can be an interesting proposition for the farmers banana Including Cavaco. of additional costs of certification, carton boxes and transport, it shouldpossible sell to 9 per US$ Angolan at kg 18 bananas box FOB Lobito: be ments and investments, small produce quality boxes a competitive at price. TOTAL COST PRICE (FOB Lobito) Farm gate price (per kg) * Carton boxes Transport to port to (reefer) Transport Table 8 ProjectedTable costs for banana exportsfrom Lobito BUSINESS CASEs Valle do Cavaco – Export Banana [ 49 ] - Start a Global GAP and probably socially certifiedcertification socially processprobably and GAP Global Starta with3–4 companies, thatare alreadyimplementing good agricultural practices, a certain and have ha). farm 20 (> size finance to access ensuring supportedfurther by be canSelected farms favourable invest to farm terms) in infrastrucexpansion (at (land), Some improvements need be to made the at boxes factory produce to the right quality boxes of (strong enough with appealing branding). Organize the logistics process from farm port;to ensuring and loading reefersealing of containers the at farm, and faster transit times from Rotterdam/AntwerpLobito to (these should stay below days). 21 newInvite investors the to area (probably the including greater Litoral of Benguela) start to that want export production. Other crops that can be considered melons, are: passion fruit and grapes. For the medium term (3–5 investments years) tissue a plant in and lab a more professional agronomy research centre need be to made. This can help the cluster Cavaco stay of to competitive continuously by reducing cost price and introduce innovations. ture (irrigation, processing facilities and cool houses) and certification. PRODESI be approached could for this. [ [ [ [ [ [ [ [ [ [ [ [ In orderIn ‘to get there’ a number issues of need be to addressed. Overall, transition year probably a 2–3 period is needed start to exports a at substantial scale with a consistent Proposed quality. activities: CONSIDERATIONS AND NECESSARY INVESTMENTS BUSINESS CASEs Dombe Grande – Export Mango [ 50 ] - - - , 2016). Cultiva , 2016).

MANGO EXPORT DOMBE GRANDE – INTRODUCTION The second business casefocusses on mangoes andin around Dombe Grande. The cluster main is situated the along delta the of intermittent river Corporolo that concludes fan an alluvial in the towards ocean.The below two show maps the overlap between the soil type and most important farms.mango The underlying reasons being the higherfertility and moisture retention theseof soils, aswell asthe availability irrigation of (bothwater surface and subsurface). As the second shows map there farms a number are quite mango of in with around ten farmsthis cluster, farms having between with ha 5 and 10 These sizescommercial varieties are compa Keitt (Kent, and Tommy). rable e.g. to Ivory Coast where the majority the of commercial farmers also cultivate between den Broek (van 5 and ha 20 et al. tion practices are professional with yields 15–20 of t/ha. This is higher than the northern parts Ivory of Coast where most production is rainfed and average yields t/ha are around 10 (id.). Because rainfall the low of along coastline the spread diseases of is generally than lower the farms more aroundmango inland humid (e.g. making productsGanda), more suitable for exports. Fruit fly and anthrac nose are present but farmers thein area indicate that its threat can be controlled the by use insecticides of and fungicides. Geographical map of Dombe Grande, Baia Farta and the presence of mango farms

Figures 19–20Figures BUSINESS CASEs Dombe Grande – Export Mango [ 51 ] [ 51 - Dombe Grande has excellent production conditions with for mango high and relativetemperatures 24°C) of humidity The valley = 80%). (rH (average receives rainfall around of 280 per mm reducing year pest and disease highest rainfall average the has March of month The pressuresignificantly. aroundof 100 mm. This coincides with the end the of season mango and increasecould the spread fruit of fly. COMPANIES THE DombeIn Grande there commercial farmers are around 10 that produce on moremango than 200 ha. A number these of farms apply good agricul THE AGRO-ECOLOGY tural practices and use imported grafted plantsof Keitt, Tommy Kent and from South Africa. spacing is typically Plant 200–250 trees per hectare or 5×8 spacing). furrow They a 5×10m have irrigation(using shallow using and apply properground or river water pruning keep to water, the trees and broadlow branching. Prices formangoes are around kwanza 75 per kilo, 0,21or US$ per kg; delivered Luanda. in Below a picture larger a of mango farm Dombe in Grande. An exemplary mango farm inDombe Grande

Photo 3 BUSINESS CASEs Dombe Grande – Export Mango [ 52 ] [ 52 - - 7.78 83.33 66.67 13.89 13.89 12.00 60.83 208.33 208.33 $675.06 $2,449.94 $3,125.00 Total (US$) Total 1,612 5,000 5,000 21,900 75,000 75,000 70,000 30,000 600,000 Total (AOA)Total AOA 1,125,000AOA 135 3,750 3,000 5,000 5,000 35,000 50,000 15,000 AOA 75 AOA 5,475,000 ( AOA)( PRICE PER UNIT

UNIT SIZE UNIT system per ha per tons 10 liters/week (20w) grafted from RSA land preparation 25 kg bags of NPK liter of Mancozeb liter of Canjila tons 1 5 1 2 8 1 1 40 15 Larger farms mango West in Africa invested professional in packhouses where grading, and packing cleaning takes Pack houses place. tend automatic washing and simple, sorting have to lines, where mangoes are sorted according to size. The sorting takes blemishes and other visible defectscolour, and is done hand. by place More according to: and more packhouses pre-cooling have and storage cold facilities. investment a packhouse in Typical with storage cold ranges from 200,000–300,000. US$ Certification will needto beimplemented, requiringinvestments in toilets/showers for staff and record keepingAdditionally organic or Fair of agrochemical Trade certificationuse. could beconsidered. Given the rich the of nature soils the in area and the disease limited pressure, converting to organic should be feasible; though requires the introduction new of soil fertility and pest management practices. 200 [ [ THE BUSINESS CASE Though not as advanced the farms as the cluster, Dombe Cavaco in banana Grande the have potential start to exports the to European Union. Also, potential profit margins look healthier than for banana, given themarket the in around of European Union, 1.85 US$ per kg (price destina at higher The currenttion cost the in price EU). the of studied farms looks acceptable; the most important costs for farmers consist fertilizer of 83 per (US$ ha), 67 per plantingmaterial a 25 (US$ ha, using depreciation year period), pesti irrigation and 73 per 208 (US$ per ha) labour ha), (US$ 28 percides ha), (US$ transport At a conservative costs 208 for 15 (US$ Luanda mango). tons of to yield of 15 t/ha, revenues are US$ 3,125 per ha; arriving at a gross profitof tax. and rent overheads, land include not does Grossprofit ha. per 2,450 US$ This shows the sound profitabilityof a professionalrunning mango farm. At a farm price gate around of 0.20 US$ it should be possible start to exports to the European Union. Areas that farms need to invest in are: professional packhouse, certification andpackagingmaterial: [ [

AMOUNT Diesel pump + generator + Diesel pump Labour Transport costs Transport Irrigation – fuel Tractor Total costs of goods sold ITEM Fertilizer Fungicide Insecticide Planting material Total revenue Total Gross profit per ha Table 9 Profit analysis of a 25 Table ha mangofarm US$ in (1 = Dombe360 Grande kwanza) BUSINESS CASEs Dombe Grande – Export Mango [ 53 ] [ 53 - Selected farms can be supported by ensuring access to favourable invest to terms) pack house in and storage cold facilities, finance (at and certification.PRODESI could be approached for this. Global GAP certification is required, and probably socially certifiedcertification as well. This could spearheaded with onepossibly larger working together with a number scale smaller of farmers farm, 2 certification).(option Some improvements need be to made the at boxes factory produce to the right quality boxes of (strong enough with appealing branding). Organize the logistics process from farm port; to ensuring and loading reefersealing of containers the at farm, and faster transit times from Rotterdam/AntwerpLobito to (these should stay below days). 21 There is a business opportunity develop to local production planting of varietiesmaterial for mango key Kent, Keitt like and Tommy. Packaging material is currently mostly imported though investments beenhave made local in carton factories. Box sizes 4 and of 8 kg are common and materials need be to strong enough hold to the boxes on ply 5 forthe 8 kg (e.g. pallet boxes andply 3 for 4 kg boxes). [ [ [ [ [ [ In orderIn ‘to get there’ a number issues of need be to addressed. Overall, transition year probably a 2–3 period is needed start to exports a substan at scaletial with a consistent Proposed quality. activities: [ [ [ [ [ The most important investment be the will in government’s capacity to run an effective phytosanitary system.Following the IPPC guidelines, the Ministry Agriculture, of as the competent authority, needs the take to lead this. in Specifically beennew regulationsmango have approvedfor recently by the EU (specifically for fruit fly); and theAngolan government will need presentto protocols the on how to farmers EU this are controlling pest. Given the presence of fruit flyin the area two options areavailable to open up trade with thehaving a (1) EU: pest free production site and information available on traceability; or (2) an effective treatment. With respectto the warm treatment water latter, is being appliedother in countries (especially Latinin America). For now it looks an integrated like system’s approach biological and chemical(combining is the control) most practical for Angola. The Ministry Agriculture of should quickly develop move to a protocol/ guideline with detailed measures export farmers need implementto in order EU. convince and controlthe to fruit fly, [ With these measures Angola place in still competes with large exporters Brazil,like Peru and a lesser to extent South Africa for the December– March Aswindow. such Angola will need to be very competitive in terms of: price, quality and consistent supply. CONSIDERATIONS AND NECESSARY INVESTMENTS 11 CONCLUSIONS AND RECOMMENDATIONS

Conclusions and recommendations [ 55 ] [ 55 April 77% 81% Ica avg avg Ica Benguela avg Benguela avg 100 % 80 60 40 20 RH July

January October Ica relative humidity relative Ica Benguela relative humidity ANGOLA’S POTENTIAL: AFRICA’ OF PERU ‘THE January ... July ... December ... July January 0 Looking the at again litoral area, Peru can serve asgreata example. this In light, it is interesting to look the at similarities between the two countries and their coastal strips. As an example, used we the Ica, of valley one the of fruit main production areas Peru,of and the irrigation scheme close Cavaco, of Benguela.to Both are located latitudes similar at on the Southern hemisphere, with Ica a latitude at South and Benguela a latitude at 14.1° of 12.5° of South. Also, rainfall and relative humidity are similar; bothvery dry and with a humidity around of 80%. In terms temperatures, of Ica shows a more extreme differences. day-night pattern weather with greater On average Benguela has a temperature 24°C of and Ica 19°C; of temperatures with minimum Ica in with on average 13°C,lower, compared Benguela to Benguela make This could more21°C. suitable for and Ica and mango; forbanana grape and avocado. Also,terms in distance of andtransit timesthe two locations are rather with a slight advantage similar for Benguela/Lobito being closer the to ports main Europe.of As such, the Angola emulate could success Peru of and become exporter a major of tropical fruits. 20 60 40 80 100 mm - - - 1 mm 21 mm Ica avg avg Ica Benguela avg Ica max Benguela min Ica min Benguela max C C C ° ° ° 19.3 25.5 13.1 Ica min avg avg min Ica Ica max avg max avg Ica Ica annual avg avg annual Ica Comparison between data of climate Benguela

C C C ° ° Current fruitCurrent production in Huambo: Avocado and citrus °

and Ica, Peru (Source: en.climate.data.org) and Ica, Peru (Source: Figure 19 Figure GREAT PRODUCTIONGREAT CONDITIONS LITORAL ANGOLA’S AT Taking into account all the all analyses, account into agronomic and Taking economic, looking both the at demand and the supply winneremerges: oneclear side, the thein litoralarea Benguela, of Province and the production bananas of and mangoes. The specific examplesof the clusters and for Farta, Cavaco, Baia of banana, can for mango, be looked more at broadly as the entire litoral area of Angola, including the provinces of Bengo, Kwanza Sul for irrigation, canand If Namibe. water, be secured these provinces excellent production have condi Looking the citrus at planalto grows well, espe tions for banana, mango, grape,tions mango, for melons banana, and passion fruit. At its current disadvantage is the transit time from Lobito Europe. and This to is Luanda mainly andrelated as lack current such of to poses supply, a bit a chicken-and-egg of problem; once Angola starts producing sufficientvolumes of tropical fruits faster routes with shorter transit times be will developed. the at cially altitude lower areas between of 1,400 1,550 and masl and rainfall slightly annual lower of 1,000–1250 mm. These areas are interesting for domestic production, substituting for current imports from South Africaand Spain. For export production currently we see don’t enough oppor tunities given the high farm prices, gate the high disease pressure the in producing areas and very strict phytosanitary EU measures on citrus. Benguela min avg Benguela avg min 20.5 Benguela annual avg Benguela avg annual 24.2 Benguela max avg 27.9 Ica avg Benguela avg January ... July ... December ... July January 0 5 10 20 25 30 15 C ° Figure 13Figure Conclusions and recommendations [ 56 ] [ 56 - pest situation, develop protocols on how to control harmful organisms farm at level, and beadvise to able fruit farms on (integrated) pest managementpractices. fastFacilitating logistics between Lobito and Peruthough Rotterdam/Antwerp:Even and Luanda is geographically farther from north-western away Europe,because theof scale productionof faster lines been have developed. Angola could initially a fastsubsidize between line Lobito and Luanda ensure to road transit by (either or sea) times remain below 21 days. Specific sector support services, needed tofruit farms assist withthe right inputsand services; in particularquality seedlings and plantlets, export quality carton boxes and agronomic advice. missions attract to Trade foreign to companies invest and in trade with Angola. Participants of trade missions can consist fruit of production companies, traders, input suppliers, service providers and investment firms. [ [ [ cientand competitively cargocapacity, priced (air) soft loans and tax incentivesemergence of a 400US$ flowermillion export sector. that prompted the Something similar is probably required for Angola. [ [ [ Each these of elements provides a part the of jigsaw puzzle that a competitive fruit sector For is made of. it was theexample Ethiopia goodof in combination agro-ecological conditions, land availability, suffi - - - ChavimochicPeru, in organizing irriga tion facilities three in Valleys. A sound phytosanitary system, with well-trained inspectors and electronic phytosanitary service should monitor the current certification. The Privatesector incentives invest to export in fruit farms, including loans at favourable terms: with loans interest lower longer-term rates and years.grace periods 1–2 of for that investorsA land has land bank available fruit key at production locations. Development large of irrigation schemes along the coast, possibly organized a public-private in partnership with engineering and construction companies, as well as agricultural investors. A good examplethis of isthe new 78,000 irrigation ha scheme of AND HOW TO GET THERE…: GET THERE…: TO AND HOW A SECTOR STRATEGY [ [ [ [ [ [ [ [ mended (e.g. see Westenbrink et al, 2017). Taking the Taking mended see (e.g. Westenbrink et al, 2017). Angolan fruit sector as the starting point, the inter vention logic can onthe build SWOT analysis and in particular the weaknesses. addition, In Angola can learn from successful other countries that developed a strong horticulture export sector from almost scratch two decades Peru like and Ethiopia. ago, In this context, ingredients key for an Angola fruit sector development strategy are: In orderIn get to there, a sectoral approach is recom [ 57 ]

REFERENCES

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