The Feasibility of Small-scale Indigenous Fruit Processing Enterprises in Southern Africa - Indigenous Fruit Trees in the Tropics: Domestication, Utilization and Commercialization - page 274

crops grown on-farm (Mithöfer, 2005; Akinnifesi et al. , 2006). An ex ante impact
analysis in southern Africa (particularly in Malawi and Zimbabwe), indicates that
households marketing fruits have been able to maintain income flows above the
poverty line throughout the year (Mithöfer et al. , 2006). Tree crops are long-
term assets that can help smallholder farmers diversify their household income
and product portfolios, becoming capable of producing multiple streams of
income and meeting domestic needs throughout the year (Akinnifesi et al. ,
2004).
A large number of fruit trees in southern African have, throughout the
ages, been used as sources of nutrition, food and medicine (Akinnifesi et al. ,
2006). Traditionally these have been collected from the wild mainly for
household consumption and, as a result, very few commercial products from
indigenous plants have emerged. Many rural poor communities are located in
regions of southern Africa that are rich in indigenous plants. Population growth,
poverty, and a lack of alternative income-generating opportunities are,
however, contributing to severe degradation of these natural resources through
overgrazing, uncontrolled burning, and the gathering of fuelwood. A possible
solution to the increasing trend of poverty in resource-poor communities and
the accompanying destruction of natural resources is to add value to the
currently underutilized natural resources available to these rural communities.
Such initiatives are expected to provide income-generating opportunities for
these communities and could serve as an incentive for conserving the natural
resources.
In partnership with various institutions, ICRAF has developed strategies
for indigenous fruit tree (IFT) domestication, product development and com-
mercialization (Akinnifesi et al. , 2006). The major goal of this initiative is to
improve the well-being of rural dwellers in the miombo ecosystem and develop
their products. The efforts include studies along the value chain: production
economics and ex ante analysis (Mithöfer, 2005; Mithöfer et al ., 2006), species
and product prioritization (Ham and Akinnifesi, 2006), IFT horticulture,
processing, pilot enterprise development and market chain analysis (Ramadhani,
2002; Akinnifesi et al. , 2006; Ham et al ., Chapter 14, this volume), and grassroots
training and capacity-building of communities and partners (Akinnifesi et al .,
2004, 2006). In establishing small-scale indigenous fruit processing plants, it is
recognized that natural product businesses and supply chains have unique
characteristics and, consequently, problems that differentiate them from ordinary
businesses and supply chains. These include the biological nature of production,
seasonality, product quality, short shelf life, underdeveloped markets, geographical
dispersion and distance from markets. Because of these unique characteristics and
problems, a detailed feasibility study must be conducted before embarking on
investment in a commercial fruit-processing venture. A feasibility study is a
structured way to efficiently organize information that is needed for confident
decision making regarding whether a specific proposed business venture is
profitable and technically, financially and environmentally viable. The purpose of
this chapter is to undertake feasibility studies for three non-wood tree product
enterprises based on indigenous fruits from the miombo ecosystem in Malawi,
Tanzania and Zimbabwe.