Horticulture, Tanzania's Green Gold Earnings Soar by 86 percent in Six Months

 
By ADAM IHUCHA -- Tanzania’s earnings from horticultural exports rose by 86 percent in January to June 2014, compared with the same time last year, fresh data shows.

Horticulture is a third source of foreign exchange for Tanzania alongside tourism and mining, which together play a significant role in the country’s GDP.

Exporters say that bigger orders attributed by the European economic recovering from Euro-crisis that brought the demand for flowers to its knees, helped the trade boom.

The country exports most of its horticultural produce to Europe, where officials are optimistic of a better performance this year due to an improving economic outlook.

Data from Tanzania Horticulture Association (TAHA) indicates that the industry has earned the economy over $155 million from January to June 2014, compared with $83.4 million accrued from the same period in previous year.

This, officials say, is bolstering the country’s hope to attain its target this year.

Official forecast shows that this year the industry is expected to bring in a $414 million, which is a growth of $39 million compared with the $375 million earned in 2013.

In real terms, TAHA Marketing Manager, Ms Cyrila Anton says that the period of January to June 2014; the country exported a total of 191,859 metric tonnes of horticultural produces, netting $155.6 million.

“The industry performance this year is remarkable because the period under review, is normally a low season to most horticultural exporters in comparison with last year where the country raked in $83.4 million” Ms Anton explains.

She says that this is obvious that coming December 2014 these exports will increase drastically as the high export season begins at the end of June with most vegetable exporters. 

Official data from TAHA indicates the earnings and quantity of fruits, flowers and vegetables exported from Tanzania recorded a steady growth. 

TAHA Executive Director, Ms Jacqueline Mkindi says that horticultural earnings also rose in 2013 compared with a similar period in 2012.

“Horticulture brought home $375 million in 2013, representing a growth of $25 million compared to a similar period in 2012, where the industry earned $350 million” Ms Mkindi noted. 

Ms Mkindi says that in total the industry exported a total of 256,429,133 kg of horticultural produces, comprising flowers, vegetables, fruits spices and seeds. 

TAHA project that by the end of the 2014, the industry will earn nearly $414 million, which is a growth of $39 million compared to the 2013 earnings.

“We expect to export nearly 283,122,345kg in 2014 mostly in European market” she explained.

According to Ms Mkindi the year 2013 was good for horticulture industry as the sector expanded its markets and increased local investments by 25 percent, the factor that boosted the earnings.

Other factors included the lift of Kenyan export ban on flowers and levy on vegetable exports from Tanzania through Jommo Kenyatta International Airport (JKIA).

However, the statistics from the United Nations Comtrade assumption of projections from 2010 to 2020 based on average annual growth rate of 25 per cent, Tanzania's horticulture exports would earn $1000 million in 2018 and double in two years' time to reach $1,850 million by 2020.

 The figure also suggests that more than one million Tanzanians will be working directly in horticulture industry by 2020. The global demand of horticulture on the other hand stands at $153 billion.

Tanzania has more than what it takes to become a major floriculture and horticulture exporters in the East African region:

Its varied topography provides ideal water, soil and climate conditions for a complete range of floriculture and horticulture products, from temperate highlands ideal for European flowers and vegetables, to tropical lowland zones ideal for warm-climate fruit and flowers.

Labour costs are also among the most competitive in Tanzania and the region boasts of good air-cargo infrastructure and connections to key markets.

Arusha is just 45 minutes drive to Kilimanjaro international Airport (KIA) with a large cold-storage facility for fresh-produce and daily flights to Europe and the Middle East.

No wonder, therefore, nearly 85 percent of Tanzania’s total horticulture greenhouses are under the slope of the splendid Meru Mountain in Arusha region and the rest in Kilimanjaro.

Horticultural production started on the slope of Mount Meru in the 1950s, but it was until 1970s that the produce was exported to Europe. The first cut flower farm was established in 1989. 

Exports of vegetables commenced in the 1970s but it was in 2000 that exports of significant volumes started.

Registered a rapid growth of up to 25 per cent per year and tremendous achievements since 2004, the horticulture in Tanzania is booming.

The sub-sector also saw direct foreign investment registering 61 per cent increase and expansion of existing investment 23 per cent, over a decade.

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