In June and early July , COLEACP conducted surveys to learn from our members and partners in the horticultural sector about the impacts of the current health and economic crisis throughout March–May. The following are brief summaries of some of these national surveys.
Côte d’Ivoire
Key points:
- All participating companies have been negatively impacted by the current crisis, whether they are active on local or European markets.
- The main impacts are on logistics (high cost of freight) and on labour (reduction in the maximum labour capacity of workplaces due to social distancing).
- Participating companies saw an average decrease in turnover between 10 and 50%.
- 59% of businesses had to take some action regarding permanent staff, but only 12% had to lay off permanent staff. 88% of businesses had to take measures concerning seasonal workers, with a large drop in recruitment.
- A majority of companies have not applied for government aid due to a lack of information, documents and financial resources. Of the businesses that did apply, half received aid.
- The majority of WHO recommendations are known and understood by companies and their workers. However, some COVID-19 measures are not applied in daily activities, and support is needed for harvesting personnel and producers in complying with these measures.
The survey was carried out by COLEACP and Intermangue (the mango interprofessional organisation in Côte d’Ivoire). The majority of the 17 companies that responded are active simultaneously in several production chains, with mango being the most mentioned (13 enterprises), followed by pineapple, then coconut. Most respondents sell their products on the European market (77%, mainly the Netherlands and France); the remaining 23% are active on local markets.
Three months after the start of the crisis, the majority of respondents (70%) reported that turnover was suffering losses of 10–50%. 18% of companies had losses between 50 and 80%, and one company mentioned lost revenue of more than 80%. The main impacts are in terms of volume sold, with 71% of companies seeing a reduction in the volume requested by customers; and in terms of productivity, with decreased maximum capacity in the workplace (following social distancing) for 54% of companies, and reduced working hours (following curfew) for 42%.
59% of respondents decreased the products purchased from producers; 41% reported difficulty in sourcing certain inputs from suppliers (packaging, pallets, etc.). 47% of participating companies experienced a reduction in the logistics offer, limiting the volumes traded.
The impact of the crisis on volumes marketed has been significant. For 80% of responding companies, the decrease in the volume requested by customers was the most important consequence (between 25% and 75% decrease in volume). On the other hand, 20% experienced an increase in the volume demanded by customers. Concerning prices on the market compared to the same period in 2019, the response of the companies was divided: 38% saw prices similar to 2019, and 37% said prices were lower than in 2019. More than half of the participating companies are still trying to identify potential markets for their products, and none of the companies have access to an online platform to sell their products.
Regarding permanent staff, 59% of companies had to take measures during the first half of 2020. The most mentioned was stopping recruiting new employees, followed by a reduction in salaries. Two companies confirmed that they had been forced to lay off permanent staff: in one case two staff, and in the other three staff. 88% of companies had to implement measures concerning seasonal staff during the first half of 2020. For a majority, 25% fewer seasonal workers were recruited compared to the 2019 season.
The majority of companies (88%) work with external growers, and have seen a significant impact on supplies. The main difficulties were in terms of volume of supply, with decreased order, and difficulties for producers in supplying the volumes initially planned.
The WHO recommendations most transmitted to subcontractors, and most understood by employees, are to avoid close contact and to wash hands frequently. In the station, measures are applied by an average of 71%, compared to 63% at harvest time, and less than 69% transmitted measures to subcontractors. Difficulties preventing the implementation of COVID-19 measures included obtaining supplies of face masks; the cost of implementing certain measures for third parties; and the difficulty of distancing harvesters by 1 metre when transporting them.
On awareness of government assistance, respondents were fairly evenly split: 53% were aware of government aid to support the sector, while 47% said they were not aware of such aid. Companies mentioned the Support Fund for SMEs (Fonds de Soutien aux PME, FSPME), the Financial Support Programme for Cooperatives and Producers, and the Ivorian State Economic Support Fund within the framework of COVID-19. However, a majority of companies that were aware of this aid had not applied for it. Reasons included difficulties in acquiring the documents requested, lack of financial resources, lack of information support, and that the proposed aid is intended for cooperatives and producers, not exporters. Of the 22% of companies that had applied for assistance, 50% said it had been granted.
A large proportion of respondents requested financial assistance. In addition, some were hoping for a continuation of training activities, particularly on COVID-19. Facilitating market access remains an important demand from companies. Additional suggestions included a support system to assist with obtaining government funding; supporting interprofessional discussions between producers and exporters, especially on prices for the coming mango campaign; and initiating an interprofessional platform to monitor the evolution of markets (European and others).
Nigeria
Key points:
- The majority of respondents (64%) saw orders for March–May reduced by more than 25%, with 35% seeing a reduction of over 50% of orders; about a fifth of companies saw a positive increase in sales.
- Almost half of respondents received higher prices for their produce in comparison with 2019; only a small minority indicated that prices had fallen.
- Only one company had applied for a COVID loan issued under the guidance of the National Bank of Nigeria, and only 15% of the requested amount was granted.
The survey was shared with COLEACP partners and members of the Agricultural Fresh Produce Growers & Exporters Association of Nigeria (AFGEAN). The majority of the 16 companies that responded are operating on the domestic fresh produce market, and the main crops affected are chillies, bell peppers, leafy vegetables, lettuce, cucumber and carrots, followed by tomatoes and herbs.
All respondents reported that domestic markets have been impacted by coronavirus, largely due to disturbances to logistics. Closing of markets, hygiene measures and social distancing on the Nigerian open markets have impacted sales of fresh produce. The majority of respondents described medium to high impact on market demand, from both prospective customers (40% of respondents) and existing supply contracts (33%).
Some companies have observed changes in consumer behaviour and are responding to demand for home delivery of fresh produce. Half of the respondents have access to an online platform to sell their products, mainly through social media platforms (WhatsApp, Facebook, Instagram) and an occasional online shop or website.
The majority of respondents (64%) reported reduced orders for March–May of more than 25%, with 35% seeing a reduction of over 50% of orders. About a fifth of companies saw a positive increase in sales. Notably, almost half of respondents received higher prices for their produce in comparison with the same period in 2019. Only a small minority indicated that prices had fallen.
In terms of cashflow, companies face challenges in covering overheads (66.7%), inputs for new production cycles (47%), and fulfilling commitments to financial institutions (26.7%). Only three respondents had benefited from a moratorium on the repayment of loans or delayed payments of taxes. One company mentioned a temporary suspension of lease costs and better payment terms from its buyers.
43% of respondents were not employing any casual workers specifically due to the crisis. One third of respondents said there had been no impact on casual workers.
Four companies had laid off a total of 23 permanent staff, a reduction of 10% on the total number of permanent employees in January 2020. Although most respondents are still maintaining employment of staff (53%), other measures taken to reduce overheads include reducing wages (33%), putting a stop on recruitment (20%), or encouraging staff to take unpaid leave.
Companies that are working with outgrowers are not able to guarantee a market for their small-scale suppliers (43% of respondents), or to pay outgrowers for their fresh produce (29%). Five companies are scaling down on new planting schedules.
The majority of respondents (87%) have taken preventive measures to limit spread of the virus by distributing protective equipment (face masks, hand sanitisers, etc). Over half of the companies have had to change their daily operations, and 40% have set up virtual systems for remote or home working. WHO measures have been implemented at packing and production levels (57% of respondents).
Only one company had applied for a COVID loan issued under the guidance of the National Bank of Nigeria, and only 15% of the requested amount was granted. Respondents mention that funding is still a major bottleneck for many companies’ operations due to increased costs of logistics, safety measures, protective clothing, etc.
Types of support companies would like to receive include negotiation skills to get more out of partnerships (69%); COVID-19-related procedures for farming and production operations (69%); cashflow management (61%); contingency planning (54%); COVID-19-related procedures for packhouse operations (54%); and HR management in times of economic slowdown (46%). Additional topics suggested include risk management; financing and processing skills; post-COVID market support; regular updates/information on health-related issues; advocacy and pressure groups for improved logistics of fresh produce export at the ports; assistance in getting passes to move products around; market access for bulk purchases by processors or institutions.
Uganda
Key points:
- 33% of respondents saw their orders reduced by more than 75%, 42% said orders were reduced by less than 50%, and 17% reported no impact.
- 70% of companies said cashflow challenges had affected their ability to cover overheads.
- 61% of respondents had employed fewer casual workers than usual, with 15% ceasing to employ them altogether due to the crisis.
The survey was carried out with the assistance of the Uganda Fruits and Vegetables Exporters and Producers Association (UFVEPA). Thirteen companies responded, and the main crops affected chillies, avocado, sweet potato and aubergine.
The markets affected by respondents are mainly international (EU and Middle East), with three companies reporting that local markets were also impacted. The majority reported reduced market demand, although two companies reported increased demand. The supply of fresh produce seemed not to be disturbed too much, but limited airfreight options, high cargo costs, disturbances to domestic logistics and limited market demand had a big negative impact.
Most companies reported reduced orders from existing supply contracts. 33% of respondents saw their orders reduced by more than 75%, and 8% by 50–75%. 42% saw orders reduced by less than 50%, and 17% reported no impact. Nine out of 13 companies reported big losses in revenue, but three companies had seen their revenue increase. There was no clear impact on prices, with about one third of respondents reporting increased prices and a quarter experiencing lower prices.
The majority of respondents (69%) were still identifying potential markets for their reduced market demand; some companies had begun processing produce. Many companies reported that produce went to waste, was sold at lower prices, was donated, dumped or used as manure in the garden. According to the respondents, no online sales platforms are available in Uganda for fruit and vegetables.
Cashflow challenges mostly affected the ability to cover overheads (70% of companies). Half of the respondents reported difficulties in covering payments to outgrowers, commitments to financial institutions (credit, loans, etc), and challenges in covering freight payments and inputs for new production cycles.
Half of the companies had taken no measures regarding permanent staff. Five companies had to lay off permanent staff (between 2 and 10 people per company), and four had reduced staff wages. Three companies had to close down the business. 61% of respondents had employed fewer casual workers than usual, with 15% ceasing to employ them altogether due to the crisis. Half of the companies reported that they were not able to guarantee a market for outgrowers, or were unable to pay them. 30% of the companies said that their outgrower base is scaling down the planting schedule. However, 20% of the companies reported an increased supply from outgrowers.
Companies did employ workforce protection measures (face masks; social distancing measures; etc.) and implement WHO recommendations at packhouse and production levels. Almost all companies extended these good practices to outgrowers.
Most of the companies reported receiving no support from the government. The only support mentioned was clearing of consignments and field inspections.
Suggestions for support include regular updates on export guidelines and market requirements; lobbying for access to finance; information on access to markets and facilitation of market linkages; technical training and digital learning.
Zimbabwe
Key points:
- 45% of respondents saw orders reduced by more than 50%, and a significant percentage were not able to honour existing contracts.
- 45% reported that prices were lower than in March–May 2019, although 27% reported higher prices than in 2019.
- 72% of companies had reduced the number of casual workers they employed, with half of those companies ceasing to employ casual workers altogether.
The survey was carried out with the assistance of ZimTrade, the national trade development and promotion organisation. Eleven companies responded, and the main crops affected are berries, sugar snaps, green beans, French beans and sweet potatoes.
Export companies reported a big impact on their markets in Europe; the local Zimbabwean market is also affected for the vast majority of respondents. Food service and wholesale markets have been badly affected, while retail has stayed strong.
Most companies reported reduced market demand from prospective clients and reduced orders from existing supply contracts. 45% of respondents saw orders reduced by more than 50%. No company experienced increased market demand, and a significant percentage were not able to honour existing contracts. 45% reported that prices were lower than in March–May 2019, but 27% reported higher prices than in 2019.
Companies are facing cashflow challenges, which mostly cause difficulties in covering overheads costs and affect the ability to purchase enough inputs for the coming production season. Disturbance to domestic logistics, causing limited supply and market demand for fresh produce, was clearly a major factor.
More than half of the companies report having sold more on domestic markets during the crisis, but most companies were still identifying potential alternative markets. One positive spin-off was establishing a retail store to continue supply. Unsold produce was mostly donated to employees, but sometimes went to waste or was used as compost. Two companies have started up processing, making juice, banana chips and dried vegetables. Companies used social media (Facebook and WhatsApp) to sell produce online, but no better equipped online platform was reported to be available.
The companies that use outgrowers had reduced order quantities from them, as they were not able to guarantee a market for their produce. One company reported ceasing to source from more than 20 outgrowers with whom they usually work. The crisis also had a major impact on casual workers, with 72% of companies reducing the numbers employed; half of those companies stopped employing casual workers altogether.
Companies did employ workforce protection measures (face masks; social distancing measures; etc.) and implement WHO recommendations at packhouse and production levels, but did not succeed in fully extending these practices to outgrowers.
Most of the companies reported that they were not receiving any government support. Difficulties cited included lack of funds to pay wages, limited access to foreign currency, unstable and unpredictable working capital, police road blocks, and cash payments making it difficult to respect social distancing.
Suggested support actions include lobbying for export support measures such as more flights to Zimbabwe; support to farmers to reduce post-harvest losses using solar drying technologies, packaging and value addition; helping to educate farmers to be flexible regarding payment terms and to open accounts for payment; links with financial institutions to access resources to boost working capital; links to regional markets; and capacity building through training, including on value addition (in particular on drying vegetables and safe packaging), utilising sustainable and smart technologies along the value chain, and gathering market intelligence and data analysis to connect better with domestic and global markets.
Madagascar
Key points:
- While participating Malagasy companies have been negatively impacted by the current crisis on both local and international markets, impact has been low because the important lychee harvest takes place later in the year.
- Respondents reported an average decrease in turnover of 10–50%. Half the respondents saw no impact on orders and trade, and 70% experienced no impact on volumes sold.
The 10 companies that responded to the survey, carried out with the assistance of the Syndicat Malgache de l’Agriculture Biologique (SYMABIO), are active in Madagascar’s fresh production and export sector (mainly lychee and, to a lesser extent, chilli pepper) and in fruit processing (multi-industry). As the lychee campaign takes place at the end of the year (November–December, with sales until January), companies exclusively focused on selling fresh lychees have experienced little direct impact. Others operate both in the lychee sector and in other sectors (fruit, vegetables, nuts and spices) and in processed products. All participating companies market their products on the international market (100%), while 30% are also active on local markets, and 20% on regional markets.
56% of respondents experienced losses between 10 and 50%; 22% reported no impact and 22% did not know. 30% of companies reported a reduction in market demand from potential customers in the period March–May, whereas 50% of companies have not suffered any consequences. Sales volumes have also changed little from initial projections, with 70% of participating companies claiming that they have not been impacted. 50% of participating companies saw no impact on orders, 30% saw their orders reduced by 50–70%, and one company reported a slight increase in orders. Regarding prices for current supplies, 67% of companies reported purchase prices were much the same as in 2019.
The highest impact was on the disruption of inland logistics (for 70% of companies). Freight prices were little affected.
80% of respondents have not developed alternative market segments to sell their products in response to the COVID-19 crisis: of these, half are still looking to identify new markets, and the other half are not aiming to enter new markets. 67% of respondents do not have access to an online platform to sell their products. Among the 33% that do have access, the platforms cited are Alibaba and Espace Agro.
The companies that responded vary greatly in size. Very few have had to make any staff changes: only one company made employees redundant, dismissing 11 out of 351 permanent staff. Employment of seasonal workers has not been affected, probably because the lychee harvest takes place in November.
COVID-19 measures – frequent hand washing, distancing, not shaking hands – are generally known and understood by most employees. Additional measures applied include taking temperatures, systematic disinfection of work areas, and the distribution of masks and soaps. However, most respondents are not passing on these measures to subcontractors, and it will be important to support producers in complying at this level. Some respondents cited difficulties such as the level of understanding, lack of financial means, and restrictions on movement.
The majority of participating companies benefited from a delay in the payment of taxes. In addition, 30% have a delay in VAT refund and a (longer) grace period for loan repayment.
Participating companies suggested several ideas for support, including sharing information related to the epidemic; defining health measures; standardisation of health measures throughout the value chain; support to identify outlets in the face of declining demand; support with logistics in light of rising costs and difficult connections; and defining business strategies.