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ZVIRIMWA GROUP Projects on: Heyshott Farm, Kia Ora Flowers,

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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 Farm MAZOWE, ZIMBABWE

2 About Us A collection of aligned Zimbabwean companies
Based on corporate farming Focusing on export production roses, horticulture and food crops Export markets in EU, USA, Asia and South Africa Five farming operations form the base of the supply chain Freight logistics & marketing Manage entire cold chain from field to customer Up to 5,000 jobs to be created

3 SME Out-grower Program
A vital part of the expansion of Zvirimwa Designed to enable small-scale and inexperienced farmers to access critical expertise and international markets Each 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 markets Produce supply HUBS Marketing & Logistics Bloomfield & Out-growers Zvirimwa (Pvt) Ltd Heyshott & Out-growers John Sole Management Kia Ora & Out-growers Florinova & Out-growers Future HUBS & Out-growers Irmaos & Out-growers International Markets

5 Market supplier and consolidator
Zvirimwa Supply Chain Grower Pack house Export consolidation Freight Import and clearing Market supplier and consolidator Super market Consumer HEYSHOTT KIAORA FLORINOVA BLOOMFIELD IRMAOS OUT-GROWERS

6 Export Market Wholesale Market Retail Market Volume & price sensitive
Weekly market trade Retail Market Supermarket, discount trade growing Year-round supply of product lines Certification requirements GlobalGAP, MPS-A, Fairtrade, Sedex Traceability from field of origin

7 Zimbabwe in the Market Kenya is the powerhouse of African export and supply to European markets, from a parity position in the late 1990’s with Zimbabwe Today, 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 Opportunity In the last 2 years UK retailers more accepting of Zimbabwean product Kenya has lost some of it’s positive shine in the world press – perception is important! Example: Mange Tout and snap peas Desired 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 winter Baby Corn in summer Last year a total of 350 tonnes of Mange Tout and Sugar Snap Peas were supplied For 2015 the group has secured: a 650 tonne off-take agreement for Mange Tout and Sugar Snap Peas with Van Oers United A contract to supply 300 tonnes of Mange Tout and Sugar Snap Peas to Safari Fresh and Lonrho Fresh Renewed 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 in Over 46 millions stems to be sold this season. Global Flower Trading BV Increase demand for specific packed at source colour-mix bunches of >3.2cm bud-size, with Fairtrade certification direct to Dutch supermarket Jumbo. PMC Holland BV Consistent 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 Crops Through JV partnerships with adjacent land holders, utilising infrastructure, equipment and management from group farms, the food cropping has increased as follows: ha ha ha ha Seed maize 50 ha Soya 250 ha Maize 250 ha

12 Expansion Zvirimwa plans to expand in the next 5 years by adding the following to its portfolio: 47 ha roses 300 ha export horticulture 4,000 ha food crops Total funds required in proposal: US$16 million Roses US$7.8 million Horticulture US$2.2 million Food crops US$4.8 million Livestock US$1.2 million

13 Expansion - Roses 9 hectares per annum, for three consecutive years
5ha (Bloomfield), 2.5ha (Heyshott), 1.5ha (Florinova) in 2015 Further 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 million Greenhouses $3,760,000 Plant material $1,374,750 Greenhouse Plastic Sheeting $846,000 Royalty first installment $716,000 Irrigation $564,000 Construction & Preparation $517,000 Horticultural Equipment $112,000


15 Expansion – Horticulture
Export horticulture is to grow by an additional 60 ha/annum for 5 consecutive years from 2016 to 2021 Expansion will be centred at Bloomfield, Heyshott, Kia Ora, Florinova, Irmaos and surrounding SME out-growers Capital requirements US$2.2 million Irrigation & Centre pivots $675,000 Tractor and implements $510,000 Trellis equipment $360,000 Refrigerated trucks $270,000 Packing and cold facilities $105,000 Pick up trucks $88,000 Fertigation systems $75,000 Grading equipment $63,000 Generators $54,000



18 Expansion - Food Crops Cropping area for season is planned at 2,500 ha Further expansion by 1,000 ha/annum from season Initial capital requirement US$4.8 million Tractors, equipment, irrigation infrastructure, vehicles & grain drying, handling and storage



21 Expansion - Livestock Each hub to develop a feedlot to handle 1,000 head of cattle per annum Feed to be based on crop residue and pack shed waste Cattle to be sourced from local small scale farmers Capital requirement US$1.2 million Feedlot infrastructure, equipment and initial livestock units

22 Employment Creation These expansions will create thousands of positions, both permanent and seasonal, many of which will be filled by women: Roses: 1,600 Horticulture: 1,500 Food 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: Fairtrade GlobalGAP MPS Sedex Community 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 portfolio Interest rate of 8% per annum to be paid every 12 months Year 3 to year 5, 33.3% (one third) of the loan will be repaid per annum Equity Funding Investor provides funding and in return receives shareholding of Zvirimwa Group After 5 years the investor is able to sell the shares back to the remaining shareholders at a market valuation price of each share Group 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 banner Zvirimwa Group can facilitate progress with Government in spearheading the formation of ‘Special Economic Zones’ for the export flower and vegetable proposals Currency fluctuations Euro:USD rate is concerning as it is heavily affected by Airfreight charges in USD Jakana Logistics is constantly monitoring this dynamic and progressively engaging the airline to moderate the freight rate Market access Freight Over supply

26 Benefits Integrated capacities from field to fork
Incorporates small-scale and SME participants Secure export markets, and a transparent marketing channel for these exports Highly competent team of experts and administrators on and off farm Forms a blueprint for the successful expansion of the export agriculture sector and food production in Zimbabwe

27 Conclusion Zvirimwa Group is a proven model for a successful agricultural partnership for all parties concerned A balanced model between export and food crop farming assisting cash flow Investment of US$16 million will see the Group’s annual turnover increasing by US$28 million within 5 years Experienced, hands-on, management team that has a proven track record

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