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Lobito Corridor (Angola) - Fruit Mapping

Lobito Corridor (Angola) - Fruit Mapping

Lobito Corridor () - Fruit mapping

Commissioned by the Netherlands Enterprise Agency Preface

Anyone who has travelled through the countryside of Angola, has surely been inspired and impressed by the sheer beauty of the scenery, and by the richness and fertility of nature and the potential for agriculture.

It is completely evident that there are abundant possibilities for increasing the agricultural productivity of Angola. This is of utmost importance to reduce poverty in the countryside and to increase rural employment. On a macro-economic level it is also of great significance for Angola in terms of import-substitution and export-promotion. Agricultural is an important sector in the context of the much needed diversification of the Angolan economy.

The Netherlands -with a surface area that is only 1/30th of Angola- is the world’s second largest exporter of agricultural products and has record levels of efficiency and productivity. This position, combined with the great expertise and experience in the field of transport and logistics, makes it only logical that the Embassy of the Kingdom of the Netherlands in Angola is highly interested in and committed to cooperating with Angolan partners in the field of agriculture and logistics.

We do feel that there is a win-win position for Angolan and Dutch entrepreneurs, as well as for both countries, in working together to further develop agricultural production and exports in Angola.

This report aims to assist in increasing the productivity, quality standards and agro-logistics in Angola, particularly by assisting the development of the Angolan fruits sector & the corridor. The report provides valuable information about the production and market potential for a variety of fruits, particularly in the provinces of and . It furthermore identifies potentially interesting other crops with a high potential for export to the EU market. It also identifies possible next steps and business cases to improve and implement priority adaptation strategies.

An important quality of the fruit-mapping research that was done for this report is that it demonstrates how integrated logistical solutions have a positive influence on the economical agricultural value chain along the Lobito Corridor.

The aim of this mapping is to provide the private sector and the government of both Angola and the Netherlands with the necessary information for investments in the Angolan fruit sector and the development of the Lobito corridor. These investments could potentially restore the status of Angola as an agricultural powerhouse and provide jobs for the local population.

The Embassy of the Kingdom of the Netherlands in believes that this report makes a valuable contribution to the further development of the fruit producing sector in Angola and we remain gladly available to all interested partners to be of further advice and assistance.

Anne Gerard van Leeuwen

Ambassador of the Kingdom of the Netherlands to Angola

Jack Vera

Agricultural Counsellor for Angola

Embassy of the Kingdom of the Netherlands 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 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 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 AND 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 – 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

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trends

certification: Specific on kg. per emphasis 2,25

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 . 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$ respec 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). in in the EU are: greater(1)

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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 withhigha 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 study were to: INTRODUCTION EXECUTIVE SUMMARY [ 7 ] [ 7 Km · 90

60 17°0'0"E

30 1:1,250,000 CommunasBoundaries Mango Production BananaProduction Pineapple Production 15 Legend 0 Ganda 16°0'0"E Lobito Caiambambo Chongoroi Benguela

Baía Farta Produced in 2019August Produced

15°0'0"E farms Chikuma

Chindumbo Balombo Kaseke Ganda Chingongo Lambala

Chila Cubal Monte Belo Kapupa Cavimbe Bocoio Wyiagombe Chongoroi 14°0'0"E Kanhamela Passe Kaimbambo Cayavi - Kanjala Biopio Katengue Lobito identified. Especially citrus and Benguela Katumbela Bolonguela Kalahanga were

Baia Farta

13°0'0"E Dombe Grande Map of main fruit production areas in the province of Benguela 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 FRUIT COMPANIES IN BENGUELA IN AND COMPANIES FRUIT HUAMBO 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. pineapple farms are well represented Benguela in 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 bigger five has Benguela in Farta Baia of Ekimina 14°0'0"S 13°0'0"S 12°0'0"S EXECUTIVE SUMMARY [ 8 ] [ 8

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- altitude rainfall,

Climate change: Unpre change: dictable & 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 WEAKNESSES

- temperature, account:

into

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 The SWOT AnalysisSWOT of Angola’s fruit sector and water availability. and availability. water 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

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Ganda Ganda Ganda Balombo Balombo ! Balombo Cubal Cubal Cubal ! Bocoio Bocoio Bocoio ! Lobito Lobito Lobito ! Caiambambo Caiambambo Caiambambo Chongoroi Chongoroi Chongoroi ! Benguela Benguela Benguela ! ! !

Baía Baía Farta Baía Baía Farta Baía Baía Farta

13°0'0"S 12°0'0"S 13°0'0"S 12°0'0"S 13°0'0"S 12°0'0"S

grape 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

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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 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 Africaand 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 , absence rainfall. of order In getto there it is recommended implement to a broader fruit sector development strategy, ingre dients be: which of could [ [ [ [ [

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presents cluster a mango more of certified certification process; (2) organize

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 GAP and a structure and certification; (3) organize the logistics ensuringfast 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. access to finance to invest in farm expansion, infra 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

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Map existingMap and potential fruit production areas thein Benguela and Huambo provinces. Assess production and market opportunities for sixfruit major commodities withhigha 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

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 study were to: [ [ [ The objective main this of study provide is to the privatesector and the government both of Angola and the Netherlands withthe necessary informa

- - - - - that fruit

indicated Increasing

Agriculture,

Substitution. and Import and Affairs

BACKGROUND BACKGROUND exports is important reduce to forex dependency, in a world with prices. oil highly volatile 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 ’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 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 sification 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 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. Angola and the Netherlands been have strong partners agri-logistics in andagricultural develop studya similar be for would assessing valuable fruitAngola’s export opportunities. 2 METHODOLOGY [ 13 ] METHODOLOGY METHODOLOGICAL FRAMEWORK and certification; market windows; volumes and prices; and crop specific issues related to diseases The study worked along five interrelated activity areas: and phytosanitary measures. [ Literature study on global market trends; e.g. certi- 1. Establishing the study’s focus and scope: Crop fication, climate change, consumer preferences selection and initial hotspot areas and logistics innovations. 2. EU Demand analysis: market requirements and global trends Results of these analyses are presented in Chapter 4 3. Angola supply analysis: market and production EU Market demand and global trends. conditions 4. Fruit mapping: determining existing and potential fruit production areas ANGOLA AND LOBITO SUPPLY 5. General recommendations and business cases: ANALYSIS main export opportunities and boundary condi- tions for realizing them The supply analysis looked at both market and production issues. At the heart of these are the fruit production companies, as well as the fruit markets FOCUS AND SCOPE and input suppliers. The project undertook the following activities to this end: The team undertook an inception mission at the start of the project to select the six fruit crops, develop [ A map showing key production areas in Angola, the detailed methodology and have an initial discus- based on information provided by a study that sion on key market and production constraints. At an was part of ACOM, the EU’s Trade Support Project inception meeting in Huambo on Thursday 13 June, (Projeto de Apoio ao Comércio). attended by key government and private sector [ Development of a database with 85 fruit produc- representatives, the six fruit crops were selected. tion companies. [ In-depth interviews with a selection of 20 larger Some of the outcomes of the inception mission are and more professionally run companies. included in Chapters 5 and 6 on respectively the In-depth company interviews focused on: farm Lobito corridor and the Fruit mapping. size and production, yields, production windows, varieties, pest and disease management, irri- gation, input and output markets and prices, EU DEMAND ANALYSIS certification, labour, transport and access to finance. The EU demand analysis is built on the basis of key [ 16 Sector interviews with government repre- import and export data of the EU market. Further, sentatives, fruit wholesalers and traders, input the study analysed major trends in the EU’s fruit suppliers, train stations and the Port of Lobito. consumption patterns. The activities that contributed Interviews focused on: inputs availability, market to the analysis are: prices, research activities, government services, infrastructure development, farmer organizations [ Analysis of EU import data (ITC Trademap): (e.g. cooperatives), and transport options and costs. volumes and value, price development, major sources of production and key importing countries. The results of these analyses are mainly reflected [ Interviews with four Dutch importers, looking at in Chapters 3 and 8 on Angola’s fruit sector and the their requirements in terms of: varieties, quality PSD challenges analysis. [ 14 ] METHODOLOGY FRUIT MAPPING: REMOTE Afterwards, ArcGIS 10.4.1 was used for interpola- SENSING AND GIS tion of the six fruit crops, using Interpolation IDW of the Spatial Analyst Tools extension. As a result, In parallel with the supply analysis we worked on three interpolated maps of altitude, precipita- the fruit mapping. The mapping consisted of two tion and temperature, were generated for each main activities: (1) the mapping of the existing fruit fruit crop. In the final stage, these maps were production areas, and (2) projections on potentially integrated, using algebraic operations, with as a suitable fruit production areas, a suitability analysis: result one interpolation map for each fruit crop.

[ Existing fruit production areas (remote sensing). Results of these activities are highlighted in Because limited agricultural statistical informa- Chapters 6 and 7 of this report: Fruit mapping and tion is available in Angola, we resorted to satellite Agronomic suitability. imagery for mapping existing fruit areas. To this end, we used 25 images of the Sentinel-2 satellite, with 0% cloud cover, of Zone 33S of the WGS-84 GENERAL RECOMMENDATIONS UTM, taken in July 2019 with a spatial resolution AND BUSINESS CASES of 10×10 meters. The 25 images were united using the mosaicking tool available of the software Based on the interviews, the fruit mapping and program ENVI 5.3. A number of filtering, enhance- secondary information sources, two business cases ment and extraction steps were implemented were selected. The business cases are a combination afterwards, in order to improve data quality. of a geographic hotspot and fruit crop having the Classification of pixels for the six fruit crops was potential for short to medium term exports to the EU. performed, pixel by pixel, using the Maximum For the selected business cases additional detailed Likelihood classifier, with an acceptance information was collected on: cost-price at farm level, threshold of 99%. Validation of maps was under- transport modalities and overall margins in the chain taken by field visits of trained UJES (Labsigder) (at both the exporting and importing side). staff. GPS points were collected from a number of fruit producing farms (i.e. the in-depth company Furthermore, preliminary findings were presented interviews), which were superimposed on the clas- and discussed at: sified maps, verifying whether production areas corresponded to computed fruit crop classes. [ A validation meeting on 17 July in Benguela, In the end, five fruit maps were developed; discussing the preliminary PSD challenges leaving out the one on grapes, as there were too analysis and envisaged business cases. little grape production activities present in the two [ A meeting with Dutch importers at the Fresh Produce provinces (though having high potential for it). Center, Zoetermeer, on Tuesday 3 September, discussing export opportunities from Angola. [ Agronomic suitability mapping (GIS). The develop- [ A meeting with key actors in the Lobito Corridor, ment of the agronomic suitability maps is based at the Hotel Terminus in Lobito on Tuesday on key factors that influence crop growth, i.e. 10 September, discussing production supply and altitude, temperature and precipitation. In this, logistics topics. we were restricted by the availability of free and [ A final meeting in Luanda with key government accessible data. The classification as further partners, companies and foreign missions, on informed by the data that was provided by Thursday 12 September (Epic Sana, Luanda). farm interviews; in particular those farms with the highest productivity. For these farms the Based on the feedback during these meetings, and precise information on altitude, temperature and own analyses, a number of general recommenda- precipitation was brought together. As such, the tions were formulated on ‘what does it take to get coordinates of the farms with the highest produc- there’, including both company-level and sector- tivity served as a reference for identifying ideal level recommendations. conditions for fruit production in both provinces. 3 ANGOLA’S FRUIT SECTOR 12°0'0"E 14°0'0"E 16°0'0"E 18°0'0"E 20°0'0"E 22°0'0"E 24°0'0"E 26°0'0"E 28°0'0"E 30°0'0"E 32°0'0"E [ 16 ]

4°0'0"S 343

Cabinda .! .! NOASFUTSCO ANGOLA’S FRUIT SECTOR .! .! .! 6°0'0"S ! .! A Zaire c Uíge 262 ! A 549 .! 8°0'0"S .! .! c.!.!.! .!.! Lunda Norte 33 A! .! 144 Luanda Cuanza Norte 8 A! .! 161 Bengo .! .! 403 10°0'0"S A! Lunda Sul ! .! Cuanza Sul A 71 .! 811 .! Legend 12°0'0"S A! .! .! Provincial Capitals .! ! Huambo Bié Kwanza Sul Province A .! Benguela 112 279 211 Province Boundaries Benguela Province 1008 Water Courses 14°0'0"S Dem. Huíla .! Rep. of Congo .! .! 324 0 80 160 320 480 Namibe Km 16°0'0"S Cuando Cubango 128 1:5,917,192 Cunene 90

54 .! · 18°0'0"S Produced in August 2019 Figure 1 Fruit production and major fruit producing companies of Angola (ACOM, 2018)

FRUIT PRODUCTION IN ANGOLA Figure 2 Key figures of geography and

Limited data is available on the size and value of Angola’s fruit sector. Only aggregated informa- tion was obtained on Angola’s overall fruit sector, bringing together main production areas and key

production companies. The above map presents The Netherlands this information.

The red highlighted figures present the aggregated production volumes of all fruit crops in Angola. The two provinces that stand out are the province of Benguela, as the largest fruit producer with more than 1 million tons of fruits, and Kwanza Sul with more than 800 thousand tons of fruits. Together with Huambo province they represent 40% of total 31X THE NETHERLANDS OR , SPAIN AND Angolan fruit production. Additionally, the largest COMBINED fruit production companies are plotted on the map, LAND AREA with Novagrolider of particular interest to this study, 1,246,700 km2 ANGOLA as it is the main exporter of fruits at this moment. POPULATION (2017) 29.8 million Before the civil war broke out in 1975, Angola used to be a major exporter of banana, in addition to , sisal, GDP (2017) GDP PER CAPITA cane and , and it was self-sufficient for all US$ 124.2 billion US$ 4,101 food crops except wheat. Currently Angola imports more than half of its food. For those less acquainted to OIL EXPORTS (2018) the economy and , the following US$ 29 billion (2nd largest in Africa) key figures can give some rough overview: ANGOLA’S FRUIT SECTOR [ 17 ] [ 17

- - 0 0 0 0 7,000 7,000 2,000 2,000 5,000 5,000 4,000 17,000 17,000 21,000 21,000 61,000 61,000 33,000 33,000 198,000 198,000 2,455,000 2,274,000 2,274,000 6,536,000 6,536,000 2,063,000 2,063,000 US$ (2018) US$ (2018) 26,059,000 26,059,000 11,904,000 11,904,000 0 0 0 9,000 9,000 2,000 2,000 2,000 2,000 1,000 1,000 3,000 3,000 6,000 6,000 6,000 6,000 15,000 15,000 14,000 507,000 507,000 323,000 323,000 2,030,000 2,030,000 8,466,000 US$ (2017) US$ (2017) 14,702,000 0 0

7,000 7,000 1,000 1,000 1,000 1,000 1,000 1,000 5,000 5,000 83,000 83,000 407,000 11,000 11,000 10,000 10,000 16,000 16,000 15,000 15,000 46,000 46,000 14,000 211,000 211,000

2,023,000 2,023,000 5,645,000 US$ (2016) US$ (2016) 32,225,000 32,225,000 32,225,000 11,186,000 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 (basically Angoladoubling fromonwards), 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. lower 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 9,000 6,000 6,000 8,000 4,000 55,000 55,000 10,000 10,000 10,000 10,000 30,000 30,000 15,000 15,000 13,000 13,000 14,000 258,000 258,000 120,000 120,000 2,429,000 2,429,000 US$ (2015) US$ (2015) 23,215,000 11,356,000 11,356,000 0 0 0 0 0 0 0 0 0 0 62,000 62,000 52,000 52,000 73,000 73,000 251,000 251,000 209,000 209,000 7,044,000 7,044,000 US$ (2014) US$ (2014) 32,238,000 32,238,000 15,099,000 15,099,000 66,046,000 Angola’s fruit exports 2014–2018 (Source: ITC Trade Map) Map) Trade ITC Angola’s fruit (Source: exports 2014–2018 Angola’s fruit imports 2014–2018 (Source: ITC Trade Map) Map) Trade ITC (Source: Angola’s fruit imports 2014–2018

Pineapple Papaya Papaya Banana Citrus Grape Mango/guava Melon (sweet) (sweet) Melon FRUIT TOTAL Avocado Avocado Citrus FRUIT TOTAL Apple/pear Apple/pear Grape Melon (sweet) (sweet) Melon Papaya Pineapple Banana Avocado Avocado Mango/guava FRUIT TRADE TO AND FROM TRADEAND FROM TO FRUIT ANGOLA Table 2 basically started in 2017. Since that year exports that year Since basically started have 2017. in Angola’s exportsAngola’s area more of recent and nature 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 , 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.

[ [ [

pineapple mucua, fruit, passion mango,

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: 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 8,000,000

$ US tons

‘000 8,000,000 6,000,000 lume in e in UK France Poland Poland Spain Spain UK Italy UK Belgium 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 a a a a o/ o/ ya ya et et he he ape ape 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 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% 45.2% 56.8% 44.7% 40.6% 40.6% VALUE Netherlands 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 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 AVOCADO BANANA CITRUS GRAPE MANGO/GUAVA (SWEET)MELON PAPAYA OTHER* PINEAPPLE FRUIT TOTAL Avocado Avocado Banana Citrus Grape Mango/guava (sweet) Melon Papaya Pineapple Other* EU IMPORTS: IMPORTS: EU ANDVOLUMES VALUES 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% and higher. 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 imports (Source: ITC Trade Map) Map) imports Trade ITC (Source: 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 2.51 2.53 2.53 2.37 1.05 2.30 0.81 1.09 1.86 PINEAPPLE tons import (fourth largest by volume) at 1.3 million commodity A low value at around Costa Rica Rica Costa US$ (2018)

PAPAYA PAPAYA volumes A bit more than 50 tons per year Fluctuates Fluctuates between US$ 2.00 and US$ 1.00 US$ 2.40 per kg per kg

2.97 0.97 1.94 1.98 0.99 2.37 2.28 1.04 0.80

US$ (2017)

SWEET MELON bulky export commodity Low value, Small traded High volume Yearly volumes of 1 million tons Import prices around 1.00 US$ per kg Costa Rica, Honduras

2.74 0.95 1.94 2.18 2.27 0.77 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 Volume reaches 660 (including guava) Prices have slowly at 2% per year, now averaging US$ 1.85 per kg Brazil, Peru, Brazil,

PRICE LEVEL LEVEL PRICE

MARKET AND VOLUME VOLUME AND MARKET 2.19 0.93 GRAPE 0.78 0.96 1.99 1.99 2.47 1.01 2.04 2.09 MAIN EXPORTING COUNTRIES COUNTRIES MAIN EXPORTING volume US$ 4.4 bil- per year by volume at High-value crop at US$ 2.20 per kg gone down are stable at Peru, Chili Peru, Chili EU-28): US$ (2015)

- Very little - - of price and

CITRUS slowly grow ing demand at 2% per year tive market growth in growth of 6% Very competi modity by volume commodity tons in 2018 The number tradedone commod fruit ity by value Africa, , South Africa, EU-28): South South EU-28): (outside (outside 2.27 1.13 2.07 1.03 1.06 0.88 2.40 2.40 2.44

US$ (2014)

US$ 0.80 BANANA BANANA year 3–4% per prices and both in terms growing demand at with stable the market per year Slowly The largest The second The third worldwide Low, stable Low, levelsprice at per kg Ecuador Costa Rica, Panama,

AVOCADO Pineapple Papaya Papaya Other* Mango/guava Mango/guava (sweet) Melon Citrus Grape Banana every five years) doubling doubling demand (volumes Increased Increased * Includes: Tamarinds, cashew apples, jack fruits, lychees, passion fruit, pitaya and pomegranate Avocado At generally At high volumes traded fruit of close to largest traded 1 million largest commodity tons per year fruit com- traded fruit thousand more than thousand A stabilizing price level at US$ 2.50 per kg South Africa Peru, Chili, 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 ]

efficient

fuel

change, climatic of

and margins are very this in market. low Though there are possibilities Trade for scale smaller Fair producers. Importers looking are always for new sourcing areas; especially because recurring of droughts Southin Africa and . Angola is part the of (Africa, ACP Caribbean and Pacific) trade agreement of the EU, having reduced import tariffs on fruits banana. 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 transport become will evenmore important; benefitting seafreightoverairfreight. 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 , 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 andblack spot latter (the two For a relatively for citrus). new fruit exporting country it will be difficultto 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 marketof 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 ]

- ) en.wikipedia.org The Benguela-Katanga ( 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

-

fish). The train reaches directly to (mainly

THE BENGUELA RAILWAY AND LOBITO OF PORT 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 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 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]

-

17°0'0"E 2617 2089 1561 1034 506 -22 ·

Elevation Value CFB Stations CFB Railroad ) !. Legend Legend !.

16°0'0"E !. !. Monthly temperature in Huambo and rainfall !.

!. !. !. 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 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.

15°0'0"E 7 Figure climatedata.org (Source: !.

- !.

Km Km

!.

14°0'0"E !. !. !. !. 25 25 !. !. 0 50 100 150 13°0'0"E

15°0'0"S 15°0'0"S 13°0'0"S 13°0'0"S 14°0'0"S 11°0'0"S 11°0'0"S 12°0'0"S ) 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 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 situated Benguela, conditions.agro-ecological distinct 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 Absent Upcoming (seafreight) Absent Absent Small (airfreight) Absent ANGOLA EXISTING EXPORTS EXISTING

– ECOLOGICAL - ANGOLA AGRO POTENTIAL 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 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 AVOCADO PINEAPPLE MANGO GRAPE CITRUS BANANA 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 ]

-

20°0'0"E ·

Km TYPE 120 Avocado Avocado Pineapple Banana Citrus Fruit Mango

DOMINANT IRRIGATION IRRIGATION ! !C A XW Type of Produced Fruit Type c furrow irrigation furrow irrigation rainfed

rainfed drip irrigation 80 80 1:10,079,320 40 40 5 19 15 23 14 15 20 20 (ha) (ha) SIZE 0 AVERAGE - Zambia Zambia

5 18°0'0"E 1

27 32 18 83

Dem. Dem. of Congo Rep.

PANIES PANIES NUMBER OF COM

Kwanza Sul Province Sul Kwanza Benguela Province ProvinceHuambo Municipalities Boundaries Courses Water Namibia Namibia Farms in the corridor Lobito and their main charac

Produced in 2019August Produced Legend Legend Mango Pineapple CROPS Avocado Banana Citrus TOTAL Table 7 teristics 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 farmhad 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 1467 1467 1533 1533 ! A 83 ! A 1683 1716 14 1595 1595 ! A ! !! A AA ! A ! 1432 1432 A 1489 1489 ! 1719 1719 A

1420 1420 !C Huambo Huambo 1328 1331 1331 1338 1338 ! A ! A 1231 1231

Cuanza Sul 1304 1304 1319 1319 1302 1301

14°0'0"E Benguela Presence of fruit companies in Benguela, Huambo

0 0 78 78 0 XW XW c c W X WW XX 31 37 W X W X W X W X 31 30 0 294 294 53 XW c c c 140 and Kwanza Sul Sul and Kwanza Figure 8 Figure MAIN FRUIT PRODUCING PRODUCING MAINFRUIT 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. 14°0'0"S 12°0'0"S 10°0'0"S FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 29 ] Km · 90

60 17°0'0"E

30 1:1,250,000 Mango Production BananaProduction Pineapple Production CommunasBoundaries 15 Legend 0

BANANA BANANA Balombo Ganda Cubal 16°0'0"E Bocoio No certification yet October till May 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 Lobito Caiambambo

Chongoroi Benguela

Baía Farta YIELD Produced in 2019August Produced PRICES INPUTS WINDOW WINDOW DISEASES VARIETIES VARIETIES FARM GATE IRRIGATION IRRIGATION PROCESSING PRODUCTION CERTIFICATION CERTIFICATION

15°0'0"E Chikuma

Chindumbo Balombo Babaera Kaseke Ebanga Ganda Chingongo Lambala

Chila Cubal Monte Belo Kapupa Quendo Cavimbe Bocoio Wyiagombe Chongoroi 14°0'0"E Kanhamela Passe Kaimbambo Cayavi Egito-Praia Kanjala Biopio Katengue Lobito

Benguela Katumbela Bolonguela Kalahanga Current fruitCurrent production in Benguela: Banana,

Baia Farta

13°0'0"E Dombe Grande mango and pineapple Figure 9 Figure MAIN PRODUCING FRUIT AREAS AND CHARACTERISTICS: BENGUELA The shows map that the largest production of is locatedbananas the along coast the in Municipios of 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 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. Ekimina 14°0'0"S 13°0'0"S 12°0'0"S FRUIT MAPPING: COMPANIES AND PRODUCTION AREAS [ 30 ] [ 30

PINEAPPLE No certification yet November till May Well-managed farms obtain 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 WINDOW DISEASES VARIETIES VARIETIES FARM GATE

IRRIGATION IRRIGATION PROCESSING PRODUCTION CERTIFICATION 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 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 obtain farms Well-managed tons/hectare 20–25 between Keitt, Kent and Atkins Tommy

YIELD PRICES INPUTS WINDOW WINDOW DISEASES VARIETIES VARIETIES FARM GATE IRRIGATION IRRIGATION PROCESSING PRODUCTION CERTIFICATION 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 [ 31 ] [ 31 P Catchiungo Mungo Km Km Kachiungo Lunge Mungo Sambo Hungulo Tchicala-Tcholoanga Kambuengo Thicala-Thilohanga Kalima Bimbe Huambo Huambo Kalima Bailundo 1:24,143,101 1:24,143,101 Kaala Caála Alto Uama Ekunha Tchipeio Kalenga Katata 0 15 30 60 90 Lepi Londuimbale Katabola Galanga Longonjo Kakoma Ukuma Ussoke

Chinjenje

-

Communas BoundariesCommunas Municipalities Boundaries Production Citrus ProductionAvogado Legend Legend 13°0'0"S 13°0'0"S 12°0'0"S 12°0'0"S 14°0'0"S 14°0'0"S

Current fruitCurrent production in Huambo: Avocado

and citrus Figure 10 10 Figure 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

-

Botryosphaeria ribis

AVOCADO NA Margarida, Fortuna, Hass and Geada Mealybug, 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) No certification yet September–December

YIELD PRICES INPUTS

WINDOW WINDOW DISEASES VARIETIES VARIETIES FARM GATE IRRIGATION IRRIGATION PROCESSING PRODUCTION CERTIFICATION CERTIFICATION For avocado limited information is available 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 tionsthat of farm the to Benguela province (having production similar results conditions); this of are presented the in next chapter.

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 WINDOW DISEASES VARIETIES VARIETIES FARM GATE IRRIGATION IRRIGATION PROCESSING PRODUCTION CERTIFICATION 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 AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION [ 34 ]

Ganda Ganda · Balombo Balombo ! · Km 90

Km Cubal 90 Cubal !

60

Bocoio Bocoio 60

! 1:1,250,000 30 BenguelaBoundaries Municipalities Boundaries

Lobito 15 Lobito 1:1,250,000 30 Caiambambo Benguela Boundaries Municipalities Boundaries CFB Stations Railway ! Caiambambo 0 Chongoroi Chongoroi ! 15 ! 0 Benguela Benguela ! ! !

1 (High) 1 (Average) 2 3 (Low) 4 5 (Restricted) 5

Baía Baía Farta Baía Baía Farta

2 (Average)2 3 (Low)4 (Restricted)5 1 (High)1

Suitability for irrigated mango production in Suitability forirrigated banana production in

Banana Suitability Areas Areas Suitability Banana ProducedAugust in 2019 Mango Mango SuitabilityAreas Produced AugustinProduced 2019 12°0'0"S 13°0'0"S 14°0'0"S 12°0'0"S 13°0'0"S 14°0'0"S Figure 12 Figure province Benguela Figure 11 11 Figure province Benguela

- - , a fungal assumptions Specific

anthracnose

temperatures. and

AGRONOMIC SUITABILITY SUITABILITY AGRONOMIC 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 warmand 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 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 availability are explained for each the of crops below. AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION [ 35 ] [ 35

Ganda Balombo · Km 75 ·

Catchiungo Cubal Km 90 Mungo 50

Bocoio E

Tchicala-Tcholoanga Tchicala-Tcholoanga 1:1,000,000 60 Huambo Boundaries Municipalities Boundaries 25 Lobito 12.5 Caiambambo Huambo 1:1,250,000 BenguelaBoundaries Municipalities Boundaries 0 30 Chongoroi Bailundo 15 Benguela Caála 0 Ekunha

Londuimbale

1 (High) 1 (Average) 2 3 (Low) 4 (Restricted)5 Longonjo Ukuma

Baía Baía Farta E Citrus Suitability AreasSuitability Citrus ProducedAugust in 2019 Suitability forrainfed pineapple production in Suitability for citrus production in Huambo

Tchindjenje Tchindjenje 1 (High)1 (Average)2 3 (Low)4 (Restricted)5 ProducedAugust in 2019 Pineapple SuitabilityAreas 12°0'0"S 13°0'0"S 12°0'0"S 13°0'0"S 14°0'0"S Figure 14 Figure province Figure 13Figure province Benguela

- -

For citrus focussed we on the Huambo, of Province lookingmainly oranges at and lemons. Huambo In thebest production areas can befound thein 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 loosesoil 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 rainfallper of (and year Given the tradition 22–23°C). growing pineappleof rainfed Angola,in used we rainfed productionas 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 AGRONOMIC SUITABILITY: POTENTIAL FOR EXPANSION [ 36 ] [ 36

Ganda · Balombo · Km 90

Km

60 Cubal

Catchiungo 60

40 Mungo Bocoio 1:971,365

"E 1:1,250,000 Huambo Boundaries MunicipalitiesBoundaries Municipalities Boundaries BenguelaBoundaries 20 30 Tchicala-Tcholoanga Tchicala-Tcholoanga 10 Lobito 15 Caiambambo 0 Huambo 0 Chongoroi Bailundo Benguela Caála Ekunha

1 (High) 2 (Average) 3 4 (Low) 5 (Restricted) Londuimbale

Longonjo

1 (High) 2 (Average) 3 4 (Low) 5 (Restricted) Baía Baía Farta Ukuma ProducedAugust in 2019 "E Areas SuitabilityAvocado Suitability forrainfed avocado production in Suitability for irrigated table grape production in

Grape SuitabilityAreas ProducedAugust in 2019 Tchindjenje Tchindjenje 12°0'0"S 13°0'0"S 12°0'0"S 13°0'0"S 14°0'0"S Figure 16 16 Figure province Benguela Figure 15Figure Huambo province

- -

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. Lastly, looked we table at grape production. For this used we map the existing grape production locations Catetein and Caxito Bengo of and Province extrapo 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 WEAKNESSES

- SWOT AnalysisSWOT of Angola’s fruit sector

selectioninputs of and technical knowledge).

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 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 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 lenges – as expressed – that companies hold by back further growth. These out both at challenges play macro-economic level (e.g. access to financeforex level availability) as well as company at and (e.g. 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 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 peak of harvest banana Angola’s coincides with the highest demand the (December–May). in EU

- -

that runs adjacent to harbours excellent produc

(planalto)

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 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 ]

- - -

specifically scores low at are: getting credit

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 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.

- -

organize their fruit sector through specific institu

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 tions and development programmes Ethiopia’s (e.g. integrated flower export strategy or ’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 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

-

Substituição e e

Exportações

das

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 thereis 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 GOVERNMENT ONEXPORT FOCUS AND IMPORT SUBSTITUTION das Importações (PRODESI) has 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. 9 PSD CHALLENGES ANALYSIS PSD CHALLENGES ANALYSIS [ 43 ]

- by (caused

blackspot

(a fungus), citrus rust fungus), mite, (a include: , a bacteria), powdery mildew (a fungus), powdery, a bacteria), fungus), (a mildew , a fungus), citrus canker (caused, a fungus), by disease

HUAMBO: CITRUS 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 numberlow fruitsof per tree, and high level disease of pressure. Typical Guignardia Xanthomonas Phytophthora hibernalis aphids, weevils and fruit flies(allinsects). Thislong 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 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. Specificallywe 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 the gap. 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 pineapple pineapple

LOCATION LOCATION Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela Bimbas/Cavaco, Bimbas/Cavaco, Benguela , Caála , CaálaCuima, Catemo, Chipipa, Chipipa, Catemo, Huambo Ganda Dombe Grande,Dombe Farta Baia Monte Belo,Monte Bocoio

COMPANY Francisco Bernardo BP Agro 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: 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 , May–September. months that productivity (colder) is seriously reduces no if irrigation is applied. Another solution canbe more intensivemulching, order in reduceto evaporation from the soil and increase soil temperatures. for farmers consist could Training supportof for more intensive cultivation tech niques that include () 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. 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

- - -

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 ]

-

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. In additionIn the to infrastructure water the railway BANANA

· Cavaco River River Cavaco of Cavaco Bimbas Area Urban Cavaco Legend Legend VALLE DO CAVACO – EXPORT 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 Benguela Benguela

Cavaco River

BIMBAS OF CAVACO CAVACO OF BIMBAS Km Km Cavaco2 Valle do Cavaco do Cavaco Valle

1:63,360 1:63,360 0.5 0.5 Produced in 2019August Produced 0 1 2 3 Figure 18 Figure BUSINESS CASES Valle do Cavaco – Export Banana [ 47 ] [ 47

The Valle do Cavaco has excellentThe production Valle conditions during least at with high temperatureseight months the of (October–May), (average year The receives valley 80%). rainfall of = and 26°C) of relative humidity (rH around 250 mm per year reducing pest and disease pressure significantly. As indicated has excellent irrigation above the Valley infrastructure and sufficient available. water 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$/kg US$/kg 6 27 * AKZ:US$ (1/10/2019): 369 150 Akz/kg AOA 183 AOA

UNIT kg 18 kg box reefer 19.44 tons

it an easy first cropto start exports with.Further, Angola ispart

AOA 150AOA AOA 480AOA UNIT PRICE PRICE UNIT AOA 117.000 117.000 AOA ments and investments, small produce quality boxes a competitive at price. Farms that want to 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 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 THE BUSINESS CASE tivity is high, and the scale production of is interesting for foreign buyers. Importantly, do not require bananas strictphytosanitary measures, making 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 TOTAL TOTAL COST PRICE (FOB Lobito) Farm gate price (per kg) * Carton boxes Transport to port (reefer) 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), ture (irrigation, processing facilities and cool houses) and certification. PRODESI be approached could for this. 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.

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 MANGO

DOMBE GRANDE – EXPORT 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

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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 $3,125.00 Total (US$) (US$) Total 1,612 5,000 5,000 5,000 21,900 75,000 75,000 70,000 70,000 75,000 30,000 30,000 600,000 600,000 Total (AOA)Total AOA 1,125,000AOA 135 3,750 3,000 3,000 5,000 5,000 5,000 35,000 35,000 50,000 50,000 15,000 15,000 AOA 75 75 AOA 5,475,000 5,475,000 ( AOA)( PRICE PER UNIT

UNIT SIZE SIZE UNIT system grafted from RSA land preparation liters/week (20w) tons 1 5 per ha 1 per tons 10 2 8 25 kg bags of NPK 1 liter of Mancozeb 1 liter of Canjila 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 certification use. 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 costs Transport Tractor Tractor Irrigation – fuel Total costs of goods sold revenue Total Gross profit per ha ITEM ITEM Fertilizer Fungicide Insecticide Planting material Table 9 Profit analysis of a 25 Table ha mangofarm US$ in (1 = Dombe360 Grande kwanza) BUSINESS CASES Dombe Grande – Export Mango [ 53 ] [ 53

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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 [ 55 ] RH Benguela avg 77% Figure 13 Current fruit production in Huambo: Avocado and citrus Benguela relative humidity January Ica avg Benguela annual avg Ica annual avg 100 % 81% 24.2 °C 19.3 °C Ica relative humidity 80 RECOMMENDATIONS CONCLUSIONS AND Benguela max avg Ica max avg 60 27.9 °C 25.5 °C 40 Benguela min avg Ica min avg mm 20.5 °C 13.1 °C 20 100 °C April 30 Benguela max October Ica max 25 Benguela avg 80 Benguela min 20 Ica avg 60 July 15 Ica min

10 40

5 Benguela avg 21 mm 20 0 January ... July ... December Ica avg 1 mm 0

Figure 19 Comparison between climate data of Benguela January ... July ... December and Ica, Peru (Source: en.climate.data.org)

GREAT PRODUCTION CONDITIONS ANGOLA’S POTENTIAL: AT ANGOLA’S LITORAL ‘THE PERU OF AFRICA’

Taking into account all the analyses, agronomic and Looking again at the litoral area, Peru can serve economic, looking both at the demand and the supply as a great example. In this light, it is interesting to side, one clear winner emerges: the litoral area in the look at the similarities between the two countries Province of Benguela, and the production of bananas and their coastal strips. As an example, we used the and mangoes. The specific examples of the clusters valley of Ica, one of the main fruit production areas of Cavaco, for banana, and Baia Farta, for mango, can of Peru, and the irrigation scheme of Cavaco, close be looked at more broadly as the entire litoral area of to Benguela. Both are located at similar latitudes Angola, including the provinces of Bengo, Kwanza Sul on the Southern hemisphere, with Ica at a latitude and Namibe. If water, for irrigation, can be secured of 14.1° South and Benguela at a latitude of 12.5° these provinces have excellent production condi- South. Also, rainfall and relative humidity are similar; tions for banana, mango, grape, melons and passion both very dry and with a humidity of around 80%. fruit. At its current disadvantage is the transit time In terms of temperatures, Ica shows a more extreme from Lobito and Luanda to Europe. This is mainly weather pattern with greater day-night differences. related to lack of current supply, and as such poses a On average Benguela has a temperature of 24°C bit of a chicken-and-egg problem; once Angola starts and Ica of 19°C; with minimum temperatures in Ica producing sufficient volumes of tropical fruits faster lower, with on average 13°C, compared to Benguela routes with shorter transit times will be developed. 21°C. This could make Benguela more suitable for banana and mango; and Ica for grape and avocado. Looking at the planalto citrus grows well, espe- Also, in terms of distance and transit times the two cially at the lower altitude areas of between 1,400 locations are rather similar with a slight advantage and 1,550 masl and slightly lower annual rainfall for Benguela/Lobito being closer to the main ports of 1,000–1250 mm. These areas are interesting of Europe. As such, Angola could emulate the for domestic production, substituting for current success of Peru and become a major exporter of imports from South Africa and Spain. For export tropical fruits. production we currently don’t see enough oppor- tunities given the high farm gate prices, the high disease pressure in the producing areas and very strict EU phytosanitary measures on citrus. CONCLUSIONS AND RECOMMENDATIONS [ 56 ] [ 56

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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

- - - The

certification.

in Peru, in organizing irriga

electronic and Chavimochic

tion facilities three in Valleys. A sound phytosanitary system, with well-trained inspectors 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 phytosanitary service should monitor the current

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

… Agrix, 2017, Report on a field trip to the Huambo region: Opportunities for private and public cooperation between Angola and the Netherlands on agriculture and food, 28 January – 5 February 2017. … Broek, J. van den, Apenteng-Sackey, N., Arnoldus, M., Keita, S., Waardenburg, R., 2016, West Africa – Fruit scoping study, Resilience / Sense / The Rock Group (commissioned by RVO – Netherlands Enterprise Agency). … CBI, 2018, Exporting mangoes to Europe (www.cbi.eu – updated 24 October 2018). … EABG Servicos Lda, 2016, Developing Angolan–Dutch private sector cooperation, Fact finding Agriculture in Southern Angola Provinces, (commissioned by RVO – Netherlands Enterprise Agency). … Fresh Produce Centre, 2019, Factsheet: New phytosani- tary (plant health) requirements for the export of fruit & vegetables to the European Union. … ITC Trade Map, 2019, Trade data of Angola and the EU; consulted in August and September 2019. … Oliver Wyman, 2018, Disruption in fruit and vegetable distribution, Fruit Logistica Trend Report 2018, Messe Berlin GmbH / Oliver Wyman. … Peperkamp M., 2016, Factfinding horticulture Peru, ICI Business / Access Latin America / Fruit Consultancy Europe BV (commissioned by RVO Netherlands Enter- prise Agency). … Westenbrink G., Beers, G., Joosten, F., Dijkxhoorn, Y., van den Broek, J., van der Lee, J., de Groot, N., 2017, Agricultural sector development: Guidelines for Aid & Trade support in Dutch PSD-partner countries, Ministries of Agriculture, Nature & Food Quality and Foreign Affairs in the Hague, the Netherlands.

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