Creating Opportunities for Domesticating and Commercializing Miombo Indigenous Fruit Trees in Southern Africa - Indigenous Fruit Trees in the Tropics: Domestication, Utilization and Commercialization - page 161

move from subsistence to a cash-oriented economy. However, it is important to
recognize that the best scenario occurs when the domestication and
commercialization of agroforestry tree products occur in parallel (Wynberg et
al ., 2003; Akinnifesi et al ., 2004a), in order that problems of the seasonality
and reliability of supply, diversity and inconsistency of fruit quality are
overcome throughout the supply chain (Akinnifesi et al ., 2006).
Market assessments for fresh fruit in the region indicate that a substantial
amount of trade occurs, but that it is generally informal. Ramadhani (2002) also
showed that there was equitable sharing of market margins from indigenous fruit
marketing in Zimbabwe. The price of fruits charged by retailers (Z$11.2/kg) was
observed to be double that charged by producers (Z$5.1/kg) and wholesalers
(Z$5.24/kg). This was attributed to much higher costs for the retailer (Z$7.14/kg)
than for wholesalers (Z$4.8/kg) and producers (Z$1.73/kg). Retailers made more
profit than wholesalers, and producers' profits were intermediate. The relative
market margin was 45% for producers, 2% for wholesalers and 53% for
retailers. The wholesalers made up for their lower margin by purchasing large
amounts of fruits. Women dominated the retail market, men predominated in
the wholesale component, and children predominated as producers.
In another report (Ham, 2005), communities collectively harvested about
2000 tons of Sclerocarya birrea in South Africa and collectively earned
US$180,000 annually, representing more than 10% of average household income
in the communities. Collection was done when agricultural activities were minimal.
The Southern African Natural Products Trade Association (Phytotrade) reported a
gross revenue of US$629,500 from the sale of natural tree products by members.
The key fruit tree products among them fetched US$126,420 for Sclerocarya
birrea , US$44,120 for Ximenia caffra , US$22,250 for Adansonia digitata (baobab)
and US$20,000 for Kigelia spp. (Phytotrade M&E Report, 2005).
Several market studies were conducted in southern Africa by CPWild and
ICRAF (Ramadhani, 2002; Schomburg et al ., 2002; ICRAF, 2005; Ham et al. ,
Chapter 14, this volume). The marketing of indigenous fruits is characterized by
the following factors:

● Wild harvesting . Wild harvesting of indigenous fruits predisposes it to

seasonality of fruit yield, variation, and limited supply. Drought may also
lead to reduction in fruit production. Consumption is greatly affected by
the nature of supply in terms of quantity, quality, time, location, price,
scarcity value, etc. There is a general tendency to move to year-round
supply of fruits and other food products in conventional markets. A key
implication is that the supply of fruit has to be adapted to demand, which
calls for greater consistency in the quantity and nature of supply.

● High transaction costs . Marketing and postharvest handling generally have

high transaction costs. Transaction costs are high because of product losses,
delivery delays, the costs of monitoring transactions and agents in markets,
negotiation or haggling costs, transport and logistic inefficiencies, and less
informed market behaviour. Transaction costs are better addressed through
improved coordination and information flows in supply chains. This is a key
challenge for economic development efforts in emerging markets.