Presentation on theme: "ZVIRIMWA GROUP Projects on: Heyshott Farm, Kia Ora Flowers,"— Presentation transcript:
1 ZVIRIMWA GROUP Projects on: Heyshott Farm, Kia Ora Flowers, Florinova, Irmaos Enterprises &Bloomfield FarmMAZOWE, ZIMBABWE
2 About Us A collection of aligned Zimbabwean companies Based on corporate farmingFocusing on export production roses, horticulture and food cropsExport markets in EU, USA, Asia and South AfricaFive farming operations form the base of the supply chainFreight logistics & marketingManage entire cold chain from field to customerUp to 5,000 jobs to be created
3 SME Out-grower Program A vital part of the expansion of ZvirimwaDesigned to enable small-scale and inexperienced farmers to access critical expertise and international marketsEach of the farming units manages out-growers ensuring the produce supplied to the international markets conforms to numerous global certified standards
4 Zvirimwa Group Dynamics Establishment of funding, production and linkages to marketsProduce supply HUBSMarketing & LogisticsBloomfield &Out-growersZvirimwa (Pvt) LtdHeyshott &Out-growersJohn Sole ManagementKia Ora &Out-growersFlorinova &Out-growersFuture HUBS &Out-growersIrmaos &Out-growersInternational Markets
5 Market supplier and consolidator Zvirimwa Supply ChainGrowerPack houseExport consolidationFreightImport and clearingMarket supplier and consolidatorSuper marketConsumerHEYSHOTTKIAORAFLORINOVABLOOMFIELDIRMAOSOUT-GROWERS
6 Export Market Wholesale Market Retail Market Volume & price sensitive Weekly market tradeRetail MarketSupermarket, discount trade growingYear-round supply of product linesCertification requirementsGlobalGAP, MPS-A, Fairtrade, SedexTraceability from field of origin
7 Zimbabwe in the MarketKenya is the powerhouse of African export and supply to European markets,from a parity position in the late 1990’s with ZimbabweToday, 3 dedicated freighter flights a DAY out of Nairobi vs. 3 shared freighter flights a WEEK out of Harare.Zimbabwe, along with Ethiopia, Uganda, Morocco and Zambia, plays a significant role in supplying market windows or product lines.
8 OpportunityIn the last 2 years UK retailers more accepting of Zimbabwean productKenya has lost some of it’s positive shine in the world press – perception is important!Example: Mange Tout and snap peasDesired from Southern Africa between April and October.Kenya struggling with MRL (chemical residue) and duty (NPA) issues.Definite shift in ordering from ZW, airfreight kg significantly up year on year (approx 30% per annum last two years)
9 Current - Horticulture European and UK vegetable consolidators are giving the Group an opportunity to supply:Mange Tout and Sugar Snap Peas in winterBaby Corn in summerLast year a total of 350 tonnes of Mange Tout and Sugar Snap Peas were suppliedFor 2015 the group has secured:a 650 tonne off-take agreement for Mange Tout and Sugar Snap Peas with Van Oers UnitedA contract to supply 300 tonnes of Mange Tout and Sugar Snap Peas to Safari Fresh and Lonrho FreshRenewed supply contracts to SIIM International in France and Jacana Produce in the UK from last season
10 Current - Roses Increased demand from our established markets 42 million stems sold inOver 46 millions stems to be sold this season.Global Flower Trading BVIncrease demand for specific packed at source colour-mix bunches of >3.2cm bud-size, with Fairtrade certification direct to Dutch supermarket Jumbo.PMC Holland BVConsistent sales of intermediate roses year round.Floflora (Pty)Increase direct sales to Spar and Pick n Pay for pre packed roses in sleeves with flower food.
11 Current - Food CropsThrough JV partnerships with adjacent land holders, utilising infrastructure, equipment and management from group farms, the food cropping has increased as follows:hahahahaSeed maize 50 haSoya 250 haMaize 250 ha
12 ExpansionZvirimwa plans to expand in the next 5 years by adding the following to its portfolio:47 ha roses300 ha export horticulture4,000 ha food cropsTotal funds required in proposal: US$16 millionRoses US$7.8 millionHorticulture US$2.2 millionFood crops US$4.8 millionLivestock US$1.2 million
13 Expansion - Roses 9 hectares per annum, for three consecutive years 5ha (Bloomfield), 2.5ha (Heyshott), 1.5ha (Florinova) in 2015Further 18ha across the 3 sites (9ha 2016; 9ha 2017)Plus 20 ha on Bloomfield (10 ha 2018, 10 ha 2019)Capital requirements US$7.8 millionGreenhouses $3,760,000Plant material $1,374,750Greenhouse Plastic Sheeting $846,000Royalty first installment $716,000Irrigation $564,000Construction & Preparation $517,000Horticultural Equipment $112,000
15 Expansion – Horticulture Export horticulture is to grow by an additional 60 ha/annum for 5 consecutive years from 2016 to 2021Expansion will be centred at Bloomfield, Heyshott, Kia Ora, Florinova, Irmaos and surrounding SME out-growersCapital requirements US$2.2 millionIrrigation & Centre pivots $675,000Tractor and implements $510,000Trellis equipment $360,000Refrigerated trucks $270,000Packing and cold facilities $105,000Pick up trucks $88,000Fertigation systems $75,000Grading equipment $63,000Generators $54,000
18 Expansion - Food CropsCropping area for season is planned at 2,500 haFurther expansion by 1,000 ha/annum from seasonInitial capital requirement US$4.8 millionTractors, equipment, irrigation infrastructure, vehicles & grain drying, handling and storage
21 Expansion - LivestockEach hub to develop a feedlot to handle 1,000 head of cattle per annumFeed to be based on crop residue and pack shed wasteCattle to be sourced from local small scale farmersCapital requirementUS$1.2 millionFeedlot infrastructure, equipment and initial livestock units
22 Employment CreationThese expansions will create thousands of positions, both permanent and seasonal, many of which will be filled by women:Roses: 1,600Horticulture: 1,500Food crops:Livestock:Indirect jobs created through local businesses growing and diversifying with increased monthly earnings introduced into circulation
23 Social Responsibility Registered with four globally recognised certification bodies:FairtradeGlobalGAPMPSSedexCommunity development through Fairtrade Premium Committees and The Rose Collection which is a community based business initiative
24 Financing Options Loan Equity Funding 5-year loan to Zvirimwa Group based on the export book of the group & company banking portfolioInterest rate of 8% per annum to be paid every 12 monthsYear 3 to year 5, 33.3% (one third) of the loan will be repaid per annumEquity FundingInvestor provides funding and in return receives shareholding of Zvirimwa GroupAfter 5 years the investor is able to sell the shares back to the remaining shareholders at a market valuation price of each shareGroup aiming for a public listing in 5 years
25 Risks Land and tenure security Currency fluctuations Market access Zvirimwa Group is well placed to secure ‘Offer Letters’ and 99 year leases for all production hubs under the Zvirimwa bannerZvirimwa Group can facilitate progress with Government in spearheading the formation of ‘Special Economic Zones’ for the export flower and vegetable proposalsCurrency fluctuationsEuro:USD rate is concerning as it is heavily affected by Airfreight charges in USDJakana Logistics is constantly monitoring this dynamic and progressively engaging the airline to moderate the freight rateMarket accessFreightOver supply
26 Benefits Integrated capacities from field to fork Incorporates small-scale and SME participantsSecure export markets, and a transparent marketing channel for these exportsHighly competent team of experts and administrators on and off farmForms a blueprint for the successful expansion of the export agriculture sector and food production in Zimbabwe
27 ConclusionZvirimwa Group is a proven model for a successful agricultural partnership for all parties concernedA balanced model between export and food crop farming assisting cash flowInvestment of US$16 million will see the Group’s annual turnover increasing by US$28 million within 5 yearsExperienced, hands-on, management team that has a proven track record
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