Zambia Agricultural Marketing Support Project Market Potential for Fruits, Vegetables, and Minor Field Crops

Assistance to Resource Institutions for Enterprise Support Zambia Agricultural Marketing Support Project Market Potential for Fruits, Vegetables, and Minor Field Crops Sponsored by the U.S. Agency for International Development Undher Ci("¢,rl t N,,. I)AN.1090-( '-00-5124.00 und PI( tI' No. 090-0206- 11-3-70016 j)t tcte'd 11 v Robert R. Nathan Awiolaes, Inc. itaisocmiaiottn wlJh Agmniark itmited, L~usaka June IM8 AESAssistance to Resource Institutions for Enterprise Support Zambia Agricultural Marketing Support Project Market Potential for Fruits, Vegetables, and Minor Field Crops * June 1988 * Submitted to Submitted by USAID/Zambia Edgar Ariza-Nino, Team Leader Philippe Daudel, and Agmmark Limited TMe views andinttrpr tadontinthis publcr0onare thos of the auhorsandshoud not be anwibred to the U.S. Agency for Intrnarwonal Dewloapwnt. 0 MINKCWt w 00kok"A W0w 4ft, I"1 00"00 1%'.e* fts * *.Wp.. 0 C w" amS =w few MWS NO"ToN I* ~ W*,~ * wo. Tua^sq 44~040 0Cw"' 0w&C.WWOWi * i4ftU ioo" o Maee9AwwO owawv 40thO swTV06" 0I~MtTCOW tAt0U@4I4 AIESResource Ittutio for Enterprise Support The ARIES project is designed to strengthen the capabilities of support organizations in developing countries to implemnt small-scale and micro-enterprise devalopment programs. ARIES builds on the work of the Agency for International Development's former Program for Investment in the Small Capital Enterprise Sector (PISCES) and Small Business * Capacity Development projects. It vorks vith Intermediary support organizations thac provide services to small and micro-businesses and industries, such as private voluntary organizations (eOs), banks# chambers of commerce, management training centers, business people's organizations, and othei: developing country goverment and non governmental organizations (NGOo). The contract for this five-year project has been awarded to Robert R. Nathan Associates, Inc. (RANA) with subcontractors Harvard Institute for Internationl Dvalopment (HIlD), Control Data Corporation (CDC) and Appropriate Technology International (ATl). ARIES to core funded by the Bureau for Science and Technology's Office of Rural and Institutional Development (6T/IRD) and the Bureau for Food for Peace and Voluntary Assistance's Office of Private and Voluntary Cooperation (FVA/PVC). Mission funded technical assistance represents $3.8 million, or almost three-fifths of the five-year budget of $6.8 million. Th@ ARIES project has three major components -- research, training, and technical assistance -- designed to cross-fertilize each other. The applied research component focuses on economic, social, and orgsniustional issues surrounding Intermediary support organizations to inform AID missions and host country actions in this subsector. The training component Includes design, testing, conduct and follow-up of training program n such areas as finance, management and evaluation for PVO and M0 personnel. The technical assistance component provides short-term technical asaistance to AID missions and intermdiary orantistions to assist small and micro-enterprise development. "*ACT Otit 8~U A h~ *w p* wA 1WQ ftwobA4 4.Av~ to* *9w~~9 OC P=04 tW 30 sft %iW 1ee44 OW td MA000"I"A 0 AWWi W bvW%4W4 ~**no~ * C~w Oft CvuW..A a M5FVWV IW4 kv VIp4w OielpimeI * 9OAO.NY sNgA941~4& O1SLO~~4TC~tTRA PREFACE This study of the marketing system for fruits, vegetables, and minor field crops was entrusted by USAID/Lusaks to Robert R.-Nathan Associates of Washington D.C. In addition, USAID engaged Agmmark Limited of Lusaka to support RRNA in the collection of basic field information on marketing of the selected commodity groups. Two RRNA consultants were primarily responsible for the study, Edger J. Ariza-Nino and Philippe Dardel. Each component report reflects the joint work of several persons, but final responsibility rests with the individuals named as principal authors. We both express our appreciation and gratitude for the support of our colleagues at USAID and Agmmark in the course of this assignment (April-May 1988). Dr. J. Snell of USAID was especially helpful In orienting the course of the studies. P. Flemming and S. Haley of Agmmark shared with us their knowledge of Zambia's agricultural sector and its problems. Finally, 0 we are especially indebted to the numerous farmers, traders, and other marketing participants who were so willing to be inconvenienced by our questions. TABLE OF CONTENTS Executive Summary Vol. : Fruit and Vegetable Marketing in Zambia Philippe Dardel Vol. If: Market Pro.wpcts for Cassava, Millet, and Sorghum Edgar J. Ari/ta-Nino VoL III: Other Minor Crop Sludies Agnimark hI~nit.d Annexes 1. Cooperatives and Agricultural Marketing in Zambia 2. Agricultural Markelitig olicy in Zambia I Rural T°lmport anid Oxcarts 4. ZAMS l h anid Zambia's Debts &. Scope of Wo~rk EXECUTIVE SUMMARY Introduction USAID/Lusaka commissioned this study to gather esmtil background information on the marketing system for selected farm products in order to enable a subsequent team to design the Zambia Agricultural Marketing Support pro/ect (ZAMS). Two groups of commodities were originally Identified: fresh fruits and vegetables for the domestic market, and three traditional staple • crops -- cassava, millet, and sorghum. Part of the rationale for selecting these crop categories was that government programs have not affected them products directly. The assumption was that private trade in these commodities could be enouraged by ZAMS. For the CNMS crops (casva, millet. and sorghum) it was quickly concluded that current pricing and subsidies policies towards maize have * completeiy displaced these staples from urban diets and from part of rural dials as well. Fruits and vegetables, being less subject to substitution by maize, offer a more fertile environment for private initiatives in marketing The report consists of three separate volumes concerning fruits and vegetables (Volume 1), cassava, millet and sorghum (Volume I1 and other * minor crops and initiatives (Volume 1ll) Several appendices are also Included (Volume IV)concerning specific issues and agricultural marketing constraints In Zambia. Summaries from each volume of the principal flndinp and implications for possible ZANIS initiatives ire given below. 0 Fruits and Vegeabe M atn Three components of the Zambian fruit and vegetable market are analyzed separately the domestic market for fresh prodwte exports of high-value products to Europe, anl the domestic procea.ing i W try " Fresh vegetables and fruits ire consumo throughout the country all through the ymar, There are no spocialed producers of fruits and veptabk s for the domestic market, not even near large ties Farmers all over the country produce small quantities of vegetables for their own camumption, but only among a few does this production constitute the major commercial farm * activity, Mfore oftefn vegetable production Isa sideline to other farm or coanomic enterpriss~[ Production areas are not well defined. Good climate and favorable soils * and water conditions for vegetable production are present through the country. Each major consumption center is supplied from area farms along the main p&,ved roads. Vegetable farming and marketing for the domestic market is mostly In the hands of indigenous Zamblan farmers and traders. Most local producers are small, with half a hectare of vegetables, at 0 most. Large-scale and advanced 'commercial* farmers are conspicuously absent in the production of produce for the Zambian population. The expatriate and elite commtunity consuming European-type vegetables and fruits constitutes a small market, involving some special producers and marketing channels. Most of the following observations concern the popular Zambian market. * The absence of a greenbelt around Lusaka and other major towns (s surprising and puzzling to marketing professionals from other countries. Vegetablei to feed large cities in developing couniries often come from Intensively cultivated garden plots around those cities, to minimize transport cosis. which are by far the major marketing cost componenL The empty spaces surrounding Lusaka and other Zamblan cities are economic anomalies * perhaps better explained by historical reasons. Lands around Lusaka are owned by the District Councils, and their use and alloxAton are strictly controlled. Housing construction Is allowed only according to well planned development schemes, normally drawn up by the state-ow ned housing authorities; therefore, land cannot be easily bought and * used. Farm land all along the major rail line and paved road was allocated in colonial times to expatriate commercial farmers, and no major land reform has been made since Independence. Today. large-sale commercial farmers along the moin transport arteries show little interest In vegetable production for * local consumption, Vegetables for local consumption are produced almost entirely by small African farmers in areas removed from the big cities and the better highway. Every day It is estimated that bO to 70 tons of produce arrive in Lut.ka, mainly through the Soweto wholesale market. This time of year 0 (April-May). rou hly half of the volume is tomaloes, and rape leaves (similar to collard leaves) are the second most common item, Other vegetobles are also present but ;n relatively small amounts compared with tomatoes and rape. The main difficulty encountered by farmers in marketing tOlmatoes and other vegtables Is transport. It Is especially difficult to got produce from the farms to tile nearest town or roadside colleiction point.

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