Vegetable growers and exporters in Tanzania are having a tough time as they struggle with returns that have plummeted 25 per cent year on year.
According to Jacqueline Mkindi, executive director of the Tanzania Horticultural Association (TAHA), changes to supermarket practices in key markets such as the UK are part of the problem.
She told freshinfo: “The situation for growers is quite difficult, in part due to the global economic crisis, but also because there has been a restructure in buying by the retailers where there is a prioritisation of domestic produce. As an association, we are advising our members to diversify their production into a number of different product lines. We are also working around the clock with key stakeholders to see if we can get some financial support for producers. Most of them are operating on loans, and with such a drastic drop in returns they are worried about servicing them. We are talking to our development partners, to the banks and to the government to see what help we can get for them.”
Producers are also concerned that UK consumer confusion about airfreight and its contribution to damaging the environment may be leading to a shift towards buying locally at the expense of imports. One trade analyst said: “If someone wants to buy local, then that is fine, but I wish consumers would not always assume that because they do that their impact on the environment is less.”
Mkindi said: “We want to make sure our voices are heard worldwide through the Horticultural Council for Africa; we are growing in an environment-friendly manner and most produce is shipped on passenger aircraft.”
But one UK importer specialising in African produce believes that the issue of concern around airfreight is just a minor one. He said: “Really there are two aspects: sales of airfreighted produce are about 10 per cent down year on year mainly because there is strong market promotion on domestically produced vegetables.
“Then there is the issue of sterling losing value against the dollar, which is what exporters have to pay for their airfreight in. Some 40 per cent of the cost of vegetables from East Africa is airfreight and with a 30 per cent decline in the value of sterling to the dollar in 12 months, that is part of the problem.”
