Processed Foods
Zimbabwe
Last Updated January 2011
Compiled By V. Bhonyongwa
©
Introduction
Traditionally, the processed food and beverages sector in Zimbabwe was well established and highly
diverse. This is because; the Zimbabwean economy has been supported by an agricultural sector that has
been very successful. The success of agriculture has provided opportunities for agro-processing and
value addition of agricultural produce. Besides its linkage to the agricultural sector the processed foods
and beverages sector also have other strong backward/forward linkages with sectors such as packaging,
technology, transport and distribution.
The processed foods sector
The sector is most described as the industry that manufactures semi-finished and finished products ready
for human consumption.
Currently there are over 102 manufacturers/processors in this sector. Production is located in the main
cities of Harare, Bulawayo, Mutare and Gweru.
The concentration of factories is high in Harare (about 63% of total number) and the other cities share
the 37%.
Processed foods can be defined as edible products that have gone through a process of value-addition.
Typical processes that are common in Zimbabwe include;
• Canning
• Milling (Grinding)
• Baking
• Drying
• Brewing
• Oil expressing
2.
Overview of the food Processing sector in Zimbabwe
Sub sectors are:
• Milling (products) produce
• Confectionaries and bakery
• Dairy products
• Food additives
• Beverages (alcahol and non alcahol)
• Canned products
• Tobacco cigarettes manufacturing
Milling sector
Major players (Big players) are Blue Ribbon, National Foods, Victoria Foods, GMB and Premier
Milling.
Company name
Products
Hs chapter /code
Export destinations
Zambia, Malawi, Botswana,
Blue Ribbon
• Wheat flour
1102.90
South Africa, DRC
• Biscuits
1905/1901
• Maize-meal
1103.11
• Salt
2501.00
• Sugar beans,
0713.39
• Rice
2302.20
National Foods
Victoria Foods
Grain
Board
Marketing
Premier Milling
United Refineries
Anchor Yeast
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Flour
cooking oil
maize meal
rice
Wheat flour
Snacks
Rice
Salt
Millet
Sorghum
Sunflower
Ground nuts
Soya beans
• kapenta,
• beans,
• salt
• Rice
• Cooking oil
• Margarine
1102.90
1516.20/1512.11
1103.11
2302.20
1102.90
1905.90
2302.20
2501.00
Malawi,
South
Africa,
Zambia, DRC, Namibia
Botswana, Mozambique
Botswana, Malawi
Burundi, DRC
Zambia
1008.20
1212.99/1214.90
Malawi
Botswana
DRC
Zambia
Mozambique
South Africa
Malawi
Mozambique
2306.30/1512.11&19
1202.02/1202.20&10
1517.90/1507.90
0305.10/0304.90
0713.39
2501.00
2302.20
1516.20/1512.11
1517.90/1517.10
Zambia, Malawi,
Botswana, Netherlands
South Africa,
Malawi, Botswana
Mozambique, Zambia
DRC
• Active dried yeast, 2102.10/2102.20
Active brewer’s yeast 3004.50
Most entities in this sector are privately owned with the exception of GMB which is a parastatal.
All the players have own brands and there are no franchises known yet.
Inter linkages with other industries-backward and forward linkages;
Most of these millers are only producers of Mealie-meal and flour. Some of them have own wholesales
and retail outlets such as Victoria Foods and National Foods.
There are also linkages in stockfeeds and packaging industries.
Confectionaries and bakery
The bakeries do both confectionaries and bread production. Except for a few that specializes with bread
and biscuits only. Major players are Mitchell’s bakery, Lobels bread, Proton bakery, Bakers inn and
Aroma bakery.
Sugar
Sugar manufacturers, both are big players i.e. Zimbabwe Sugar Refineries (Gold sugars) and Hippo
Valley Estates. This is mainly caused by high initial working capital for machinery and raw materials.
The following are retailers, importers and exporters of sugar, Country choice, Zimbabwe Sugar Sales, S
& T Import & Export and Pantry Pride.
HS chapter for sugar and confectionaries is chapter 17/18.
HS chapter/code for bread and biscuits is 19.
Confectionaries companies are:
Company name
Products
Hs chapter /code
Export destinations
Gold sugars
Hippo Valley Estates
Crystal candy
Bakers inn
Proton bakery
Lobels bread
Dandy Zimbabwe
M E Charhons
Arenel sweets
Mitchell’s bakery
Lebena Biscuits
Sugar
1701.91
Sugar syrup
1702.90
Sugar
1701.91
Sugar syrup
1702.90
1704.90
• Sweets,
1806.90/1806.20-90
• Chocolates,
Chewing
Gum,
1702.90
Syrups,
1806.31/1702.90
• Caramel,
1704.90
Biscuits,
1905.90/1901.20
1905.30
Bread
1905.40/1905.90
Bread
Biscuits,
Bread
Sweets,
Chocolates,
Chewing Gum,
Syrups,
Caramel,
• Biscuits,
1905.40/1905.90
1905.90/1901.20
1905.30
1905.40/1905.90
1704.90
1806.90/1806.20-90
1702.90
1806.31/1702.90
1704.90
1905.90/1901.20
1905.30
Botswana,
Zambia
South
Africa,
Malawi,
Mozambique,
Botswana, Zambia, Angola,
DRC, Sweden, Denmark,
Netherlands
Botswana, Zambia
South Africa
Mozambique,
Zambia
Malawi,
Tanzania,
Botswana,
Malawi, Zambia, Namibia,
DRC, Mozambique
• Sweets,
1704.90
• Chocolates,
Chewing Gum,
• Syrups,
1806.90/1806.20-90
• Caramel,
1806.31/1702.90
1704.90
• Sweets,
1704.90
• Chocolates,
Chewing Gum,
1806.90/1806.20-90
• Syrups,
1702.90
• Caramel,
Bread
1806.31/1702.90
1704.90
1905.90/1901.20
1905.30
1905.40/1905.90
Malawi, Mozambique
Botswana, Namibia
Zambia
Biscuits,
1905.90/1901.20
Botswana, Malawi
Biscuits,
1702.90
Botswana , Namibia
Mozambique
Iris Manufacturing,
Chocolates
• Biscuits,
• Sweets,
• Chocolates,
Chewing Gum,
• Syrups,
Innscor Bakeries
1905.30
1806.90/1806.20-90
1905.90/1901.20
1905.30
1704.90
1806.90/1806.20-90
Namibia
1702.90
• Caramel,
1806.31/1702.90
1704.90
Biscuits,
1905.90/1901.20
1905.30
1905.40/1905.90
Bread
DRC, Zambia
Dairy products
There are few companies in this sector. HS chapter/code for dairy products is 04.
Company name
Products
Hs chapter /code
Export destinations
Botswana, Malawi, Zambia,
Dairibord Zimbabwe
• Fresh Milk,
0401.20
•
•
•
•
•
•
Long Life Milk,
Fermented Milk,
Cheese,
Butter,
Powdered Milk,
Yoghurt,
• Icecream
Nestle
(Pvt) Ltd
0403.90
0406.30/20/90/10/40
0405.00
0402.10
0403.10
1517.90
Zimbabwe • Maggi Soups,
• 2104.10
• Infant Milk Formula, • 0401.20-20
Mozambique,
Tanzania
DRC,
Botswana, Zambia, Malawi,
Mozambique, Kenya
Infant Milk Cereal,
• Full
Cream
Milk • 0402.10
Powder,
• Breakfast Cereals,
• 1904.10
• Malt Extract,
Lyons Zimbabwe
• 1901.90
• Cocoa
Based • 2202.90
Beverages,
• 0402.99
• Condensed Milk
• Tea, Coffee,
2106.90/10
•
•
•
Cordials,
Mayonnaise,
Salad Cream,
0901.12/11/22/21
2208.90
2103.90
1517.90
Malawi, Mozambique
Botswana, Namibia
Zambia
Food additives
This sector has few players that are supplying the local market only. More investment into this sector is
needed. HS chapter for additives is 21.
Company name
Four seasons foods
Pure
Enterprises
Products
• Tea,
• Coffee, and spices,
• Herbs
Hs chapter /code
2101.20
2106.90/10
0901.12/11/22/21
1211.90
2101.20
2106.90/10
0901.12/11/22/21
1211.90
2101.20
2106.90/10
0901.12/11/22/21
1211.90
2101.20
2106.90/10
0901.12/11/22/21
1211.90
Export destinations
Products
Hs chapter /code
• Clear and opaque 2203.00/2206.00
beer
2202.90
• Soft drinks
2208.20
• Spirits,
2207.10
• Wines,
2201.10/2201.90
• Water
2202.10
2208.90
• Cordials
Export destinations
Products
• Canned fruits and
vegetables,
• Frozen vegetables,
• Dried fruits and
vegetables,
• Fruit juices,
• Jams
and
marmalades
• Snacks
Export destinations
seasons • Tea,
• Coffee, and spices,
• Herbs
Tanganda Tea Co
• Tea,
• Coffee, and spices,
• Herbs
ARDA Katiyo
• Tea,
• Coffee, and spices,
• Herbs
Botswana, Zambia,
Namibia
Germany, South Africa
UK, Austria
Sweden, Netherlands
Italy
Beverages
Company name
Delta
Afdis
Schweppes
USA, UK, South Africa,
Namibia, Botswana, Zambia
Mozambique
Zambia
South Africa, Botswana,
Zambia,
Malawi,
Mozambique, Mauritius
UK
Canned products
Company name
Cairns Foods
Cold
Company
Colcom
Storage • Sausages,
• Canned meat
products, biltong,
cold meats, salami
• Sausages,
• Canned meat
Hs chapter /code
2006.00
2001.90
2001.90
2009.90/80
Namibia,
Mozambique,
Botswana, Malawi, South
Africa, Zambia, Sweden,
UK,
Mauritius,
USA,
Tanzania, DRC, Norway
2007.91
1905.90
1601.00
0210.90/0210.11-19
0208.90
1601.00
1601.00
0210.90/0210.11-19
U/Kingdom, DRC
Tanzania
DRC, Mauritius
Angola, South Africa
Olivine Industries
Lake harvest
products, biltong,
cold meats, salami
• Canned fruits and
vegetables,
• Frozen vegetables,
dried fruits and
vegetables,
• Jams and
marmalades
0208.90
1601.00
2006.00
• Dried fish, fish
fillets
1604.11-20/0305.69
0302.11-19
2001.90
2001.90
2009.90/80
Namibia
Botswana, Malawi, Zambia,
Mozambique,
Tanzania,
South Africa
2007.91
UK, USA
Germany, France
Italy, Portugal
Belgium, Netherlands
SA, Zambia
Tobacco
Tobacco is part of the processed foods, it also have the sector giants, i.e.
Company name
Products
Hs chapter /code
Export destinations
DRC, Zambia, Botswana,
British
American • Cigarettes
2401.20
South
Africa,
China,
tobacco
Netherlands,
Savanna tobacco
Processors (Pvt) Ltd
• Cigarettes
2401.20
Zambia, Botswana, South
Africa,
Cut Rag Processors
(Pvt) Ltd
• Cigarettes
2401.20
Netherlands, Zambia,
Botswana, South Africa,
DRC, China,
Stage of industrial development.
The industry has few developed players and the rest upcoming players are still in the process of
acquiring machinery and equipment in order to fully commercialise their operations. However,
persistent droughts and economic downturn that have robbed the country for years had frustrated
development in this sector. Of late the economy is regaining on a slow pace.
Geographical distribution of companies
• They are all situated in main cities and towns i.e. Harare, Mutare and Bulawayo.
The Quality of processed products continue to improve with some local brands becoming household
names beyond Zimbabwe’s borders e.g. Mazoe Orange Crush, Zambezi Lager, Mukuyu Wines, Sun
Jam, gold and red seal, among others.
Also there are companies scattered around the country who re-pack imported products such as rice and
salt and locally produced dried fish (kapenta) and beans into their brands. Large packers include:
• Grain Marketing Board-Silo brands
• National Foods-red seal, gold seal, mahatma,
• Victoria Foods
• Blue Ribbon Foods-Chibataura
• Pro brands
4. Production
The processed foods and beverages sector relies heavily on the agricultural sector for raw materials.
Major ingredients/raw materials such as grain, meat (beef & pork), fruit & vegetables, sugar, oil seeds
(soyabean and sunflower) and milk have traditionally been produced in Zimbabwe with imports being
regarded as top-ups. However, since 2001 agricultural output has been on a negative trend and thus
impacted negatively on the performance of the processed foods sector. Availability of raw materials has
a huge bearing on productivity in this sector. Production has gone down in the last few years due to lack
of continuity on the farms after the land reform programme and the shortage of inputs like seed and
fertilisers. The amount of rainfall received during the cropping season also affects the quantity and
quality of the inputs for the processed foods sector.
The sector has some big companies that are slightly gaining market share and are now improving their
production efficiency to enable themselves to fight competition, for example Delta beverages managed
to acquire new bottling line machines for alcohol (beer) and soft drinks that gave the company any edge
to outcompete imports from the market.
Other vital raw materials for the sector include packaging materials, additives and preservatives.
Some packaging materials are designed and manufactured in Zimbabwe from the raw materials, (e.g.
plastic and tinplate) being imported.
Technical skills for the sector are also locally available since the processes are fairly simple. Locally
available Food Science courses (up to university level) also complement the sector.
During recent years the major production constraint has been the inadequacy of local inputs (raw
materials) due to poor performance by the agricultural sector.
The other challenge is that of technological backwardness, mostly caused by failure to re-equip
(modernise machinery and equipment).
Multi currency
The introduction of multi-currency (use of ZRand and US Dollar) gave breath to all the manufacturing
companies, even though working capital is still a challenge to many organisations.
Key inputs in to the processed food manufacturing (major):
•
•
•
•
•
•
•
Agriculture produces. e.g.
1. Horti culture-(all horti culture produce with exception of cut flowers)
2. Animal husbandry (ranching- meat, pork)
3. Fishing-fish
Concentrate- Beverages-drink (coke)
Preservatives
Packaging.
Industrial catalysts (Acids).
Flavours
Packaging. –It is a necessity since all manufactured products are required to be protected from
unfavourable environment
•
Imports-
machinery, spares and lubrications.
Quality standards
The manufacturers (processors) are aware of the food quality standards that should be adhered to. A
number of companies in the sector are certified under;
• Standards Association of Zimbabwe (SAZ)
• ISO 9001:2000 quality standard
• Hazard Analysis Critical Control Points (HACCP)
• ISO 22000 Food Safety Management Standard
Some other companies are working on the EOSH (Environmental) certification e.g. Olivine and
Schweppes.
Labeling
Just like packaging, most of the labeling products and services are available within the country. It is a
statutory requirement that consumer packaging should include:
•
Name & address of producer, packager or importer
•
List of ingredients, including additives and colorants
•
Quantity of the ingredients (QUID)
•
Net weight/net volume
•
Expiration date of the product
•
Storage instructions
•
Usage instructions
NB
Also guarantee that the product has not been subject to:
•
•
•
Child labour
Has caused pollution
Harmed the environment (use of banned pesticides)
5.
Exports
Zimbabwe has been the bread basket of the region exporting both unprocessed and processed food
products to neighbouring countries. These export markets have however remained the main destination
for the processed foods & beverages sector. Major markets are Zambia, South Africa, Malawi,
Mozambique and DRC. Proximity, similarity of cultures and practices and the duty concessions under
the COMESA and SADC Trade protocols are the major market access factors. Zimbabwe is rich in raw
materials (inputs) that are locally produced; exporters do not have challenges in producing the Rules of
Origin under both trading blocs.
Most of the processed foods manufactured in Zimbabwe are export quality products. Of recent, the
government introduced a regulation that governs all basic goods (groceries) not to be exported as the
nation is struggling to feed the nation. The export destinations for the processed foods are shown in the
table previous shown above.
6.
Challenges
•
•
•
•
•
•
•
•
Capacity utilisation is low due to shortage of local inputs
Outdated technology being used in food processing, packaging and labeling
Insufficient working capital for production, banks are not giving long term loans.
Producers are fighting stiff competition on the market. Price is the major tool being used by
importers since they are pricing their products lowly due to low production cost, therefore, living
the majority with no option but to do impulse buying.
Production cost is too high therefore making it difficult for price strategy and to break through
into regional markets.
High operational costs- maintenance for machinery (high tools and spares costs).
Electricity and water cuts
High raw materials costs.
7.
Sector needs
The following factors remain the most challenges that need to be addressed;
• Working capital to finance their operations. i.e. The working capital remain the main challenge for
all the manufacturers since the operation costs are high that results in pricing strategy being difficult,
since competitors priced their products lowly due to low operational costs.
• The manufacturers are requesting favourable payment terms for raw materials from suppliers
• Product quality (quality management) to be improved
• Breakthrough in to external markets (exports)
• Power and water cuts to be addressed
• Electricity costs to be revised downwards
8.
Programme of intervention/action
a. ZimTrade to organise workshops on the following topics:
i. Export training –8 module handouts
ii. Quality management
iii. Capacity building
b. Help the companies to identify the source of working capital (loans and credit lines).
c. SMEs to be nurtured very well and help to produce quality products
d. Encourages Research and Development, for companies to continuously be innovative and research
more information about new arrivals in the market that can be: new information, new machinery,
new distribution pattern and new technologies
9.
Sector Associations (Key sector cluster)
The associations that represent the interests of manufacturers are:
• The Grocery Manufacturers’ Association
• The National Bakers’ Association
• Alcoholic Beverages Manufacturers Association
• Zimbabwe Tea Growers Association
• Grain Millers Association
• Processed Food Sub Sector Association
Chairman Kwirirai Chigerwe of Tanganda tea
kwirirai@tanganda.co.zw
Tel; 263-4-703786/9
Fax; 263-4-705785
Cell; 263-712-278814
•
Zimbabwe Poultry Association
The Administrator
Mr. Mario Beffa
Tel; 756600, 772915, 777391 or 0912 307 566.
Chairman
Mr Solomon Zawe
Tel; 781604, 0912 800 269 or 0712 800 269.