5. Results

The results presented in this section are a synthesis of all the information collected by the methods used.

5.1 Current National Fish Supply

The main supply of fish within Zimbabwe comes from Lake Kariba. Smaller reservoirs and rivers in communal areas probably contribute around 2,000 tonnes, assuming yields of 100 kg/hectare. Privately owned reservoirs are, in general, not exploited significantly, so yields are on average, less than 50 kg/hectare giving a very rough total production figure of 3,000 tonnes. Fish produced by aquaculture makes a negligible contribution to total fish supply and has been estimated to be in the region of 750 tonnes per annum. Yields from the rivers also make a negligible contribution to total fish supply.

Table 3 Estimated Fish Supply 1992

In addition to locally produced fish, imports of fish and fish products have increased over recent years partly due to the more liberalised trade in the region and also to the fact that customs duties are no longer payable on many fish products. Table 4 gives information on imports of fish since 1990. At the time of the study, data were only available up until April 1993. The large amount of tinned fish (“Mackerel prepared or preserved” and “other fish prepared or preserved”) in 1991 and 1992 were imports from Canada, as part of the drought alleviation programme. Import data should be interpreted with some caution, as it appears that some difficulty might have been encountered in accurately coding some of the fish products.

Zimbabwe exports small amounts of fish, mainly to neighbouring countries. Export data for the years 1990 – 1992 are given in Table 5. Exports have increased over the period, but the quantities are very small. Exports of dried kapenta are shaded, assuming that dried kapenta is placed under the SITC code “dried fish”. In 1992, 15 tonnes of dried kapenta were exported, mainly to South Africa.

Adding import data, catches from Lake Kariba and estimates of production from reservoirs and rivers, and subtracting exports, the estimated supply of fish and fish products in Zimbabwe was 27,698 tonnes in 1992.

5.2 Changes in Per Capita Fish Consumption since 1992

Information presented in Table 6 provides estimates of per capita fish consumption in 1992 and 1994.

Using 1992 population census figures, which show the population to be 10,401,767 persons, annual per capita fish consumption in 1992 can be estimated to be 2.66 kilos.

However, since February 1993, the supply of fish has been greatly increased due to imports of horse mackerel from Namibia. Although import data are not available from either Namibia or Zimbabwe for this period, estimates from Namibia (Ministry of Fisheries) indicate that an average of 3,500 tonnes of frozen mackerel is arriving per month. This is equivalent to 42,000 tonnes of fish per annum. This means that per capita fish consumption has increased to 6.35 kgs representing an increase of 139 % or just under 4 kilos per person. Charting the monthly increase in per capita fish consumption since 1992 is not possible as import figures are not yet available. However, it is unlikely that this increase is uniform.

The current distribution of frozen fish is limited to areas where there are shops with refrigeration facilities, whilst most fish captured in small reservoirs is eaten close to where it has been caught. Commercially farmed bream and most of the catches from Lake Kariba is mostly sold in urban and peri-urban areas. It is therefore likely that the biggest increase in fish consumption is in the urban areas and rural growth points.

Table 4 Imports of Fish and Fish Products in Zimbabwe 1990 – April 1993

* January - April 1993 only

Table 5 Exports of Fish from Zimbabwe 1990 – 1992

Table 6 Estimated per capita fish consumption 1992 and 1994

¹ Census 1992. Assumes 3.01% growth rate p.a
² Assumes kapenta catches are 20,000 mt/pa, all other estimates are the same as those for 1992

5.3 Supply and Demand of Main Fish and Fish Products

The main fish and fish products consumed in Zimbabwe, based on the results of the consumer survey (Question 1) and supported by information obtained from wholesalers and retailers, is presented in Figure 1. 73% of rural respondents and 78% of urban respondents bought fish.

Figure 1

It is clear that frozen horse mackerel, dried kapenta and bream are the most consumed fish species. The “any” category was a response given when consumers said that they bought whatever was available at the time or whatever they felt like. It was often given by consumers who were in a hurry.

The remainder of this section looks in greater detail at results of the study by main fish and fish products consumed in Zimbabwe.

5.3.1 Frozen Horse mackerel

Frozen horse mackerel from Namibia was first imported in significant quantities in February 1993. The sole importer at that time was TM Supermarkets, which, by April 1993, were importing 495 tonnes of fish per month. By July/August 1993, the company was importing 1,000 tonnes a month. During this time, when the product was new and cheap, demand was very high and outstripped supply. This encouraged a number of new entrants into the market and a wider distribution of the product.

Supply

Estimates for the current supply of the product vary. As there are no import data available either from Namibia or Zimbabwe since April 1993, it is difficult to accurately estimate the amount of horse mackerel entering the country. As mentioned in section 5.1 estimates from Namibia indicate that approximately 3,500 tonnes of frozen horse mackerel is entering the country every month. Information provided by companies in Zimbabwe varies but ranges between 1,500 – 2,000 tonnes.

The product arrives in Zimbabwe packed in 30 kg cartons (3 x 10 kg interleaved blocks). Retail and wholesale outlets then divide these blocks by allowing them to thaw sufficiently to enable the fish to be broken up, usually with a rubber hammer. The fish are then weighed and packed in plastic bags and placed in freezers or refrigerators. The weight of the retail packs is 1 kilo or less. When sales are slow, the fish are also packed in white plastic trays. The preferred size of fish is 16 – 20 cm. There are approximately 5–6 fish per kilo if the fish are 16 cm.in length and 2–3 fish if the fish are 20 cm. in length. One company is smoking mackerel and calling it “kippered fish”.

The supply of mackerel is considered fairly regular by most retailers and wholesalers and there were no reported problems in supply or delivery times. A butcher interviewed in one rural area stopped stocking mackerel as it was eroding his sales of other meat, which he preferred to sell. It is not possible to say whether this is a common practice.

Demand

Information from the consumer survey indicates the extent of market penetration that horse mackerel has had over the last year. As Figure 1 shows, mackerel is the fish most eaten in both rural and urban areas. 61% of urban respondents and 42% of rural respondents eat mackerel. It should be noted however, that most of the areas classified as rural for the purposes of this study were places where there was at least one shop with refrigeration facilities. There are many rural areas in Zimbabwe where there are very small shops with no refrigeration facilities at all and which only sell very basic foodstuffs.

Frozen horse mackerel is known as “zitye” of “manamibia”. “Zitye” means second-hand and cheap; mackerel is called this because the price is so low that people assume it must be a poor quality product. “Manamibia” simply means “from Namibia”.

The reasons given for buying mackerel are shown in Figure 2. The main reasons in both areas are because it is cheap and secondly, because the taste is liked. Availability is more important in rural areas than in urban areas. Consumers said that if mackerel was available, they bought it, but often it was not available.

In general, retailers found demand high. Some observed that although demand remained high, it was lower than last year because the product is no longer a novelty. Many wholesalers and retailers noted that demand has been further encouraged by increasing prices of beef and more recently, increased prices of chicken due to the outbreak of Newcastle disease in the poultry industry.

Figure 2

These results are confirmed by the findings of the retailer survey. 77% of retailers said that price was the reason why mackerel was bought, whilst only 6% said it was due to availability.

There are big differences between the frequency of mackerel consumption in rural and urban areas as shown in Figure 3. The greatest percentage of rural consumers buy horse mackerel at “any time”. The “any time” response was often clarified by saying that purchases occurred when money was available rather than when fish was available. Some of the consumers interviewed reported buying more mackerel when it first started to be imported, but have reduced their buying frequency as they had become “tired” of eating it all the time. In general, for both rural and urban consumers, the average quantity bought was between 0.5 and one kilo.

Figure 3

Fish consumers who do not buy mackerel

Rural and urban fish consumers who did not buy mackerel were asked what they thought about mackerel (Question 2). The answers are presented in Figure 4. There is little difference in responses for rural and urban consumers which was, in order of importance, that the taste was bad, that it was very cheap and the smell was bad. The exception in rural and urban responses was availability, where a higher percentage of rural consumers did not buy mackerel because it was not available.

Some of the consumers interviewed in the consumer survey reported getting a rash after eating horse mackerel. Although this represents only a small percentage of the number of respondents (just over 10% in both areas), there may be some cause for concern. The likely cause of this allergic reaction is histamine, as scombroid fish such as horse mackerel, have a high content in their muscle tissue. This is usually produced during improper storage of fresh fish, in particular delayed use or no use of ice. The histamine remains in the fish during processing. In Zimbabwe, the handling processes probably aggravate this. There is therefore a need to carry out further monitoring and testing of the product to ensure that this is the cause.

Figure 4

5.3.2 Dried kapenta (matemba)

Supply

Currently, the market for dried kapenta is considered to be good. Zimbabwean production of dried kapenta can be estimated to be around 6,000 tonnes (equivalent to a wet weight of 18,000 tonnes). Practically all of this is sold in Zimbabwe. Over the last two years, wholesalers and retailers have reported that supply and sales have been good, with shortages experienced in the winter months (June/July). Kapenta is packaged in 50, 100, 250, 500 and 1000 gram plastic bags. Some producers sell in bulk to wholesaler/distributors who then package into smaller units. Other producers package themselves.

Currently, some small amounts of dried kapenta seem to be coming from Cahora Bassa. Some companies reported that they had been approached by operators from Cahora Bassa offering large quantities of dried kapenta, but nothing had materialised. Although catches are reported to be very high (1 – 5 tonnes/night/rig) and costs of fishing low as the rigs do not have to travel far for fishing, the main constraint is transport and quality of product. A few wholesalers reported seeing samples of the product and thought that it was poor compared to the product from Lake Kariba.

There appear to be a number of rumours surrounding the Cahora Bassa fishery, especially with regard to price and the extent of market penetration in Zimbabwe. Some wholesalers felt that, should Cahora Bassa kapenta enter the Zimbabwean market, price would be hardly affected as the transport costs would be high. Others felt that there could be significant price reductions, such that the viability of some of the operators from Lake Kariba would be affected. Some wholesalers have also said that they would still sell dried kapenta from either source at the same price. Some dried kapenta is currently being imported from Tanzania and Zambia, but these are minimal amounts and are mainly used to supplement local supplies in times of high demand, such as the Christmas season. Responses from retailers stocking dried kapenta indicated that the supply is generally good, although there are fluctuations especially during the winter months (June, July).

Demand and Consumer Preferences

Results from the consumer survey show that 35% of rural respondents and only 15% of urban respondents reported buying kapenta. The main reasons for buying dried kapenta for both rural and urban consumers are price and taste, as shown in Figure 5. For rural consumers, however, availability is also an important reason, as dried kapenta is one of the few fish products which is readily available in rural areas. Variety and storage advantages were also more important for rural consumers. 60% of retailers interviewed thought that the reason why people buy kapenta is because it is cheap, 19% because it did not require a fridge, whilst only 4% gave availability as a reason. Dried kapenta is also purchased by high income consumers for pet food.

Figure 5

Figure 6 provides information on frequency of consumption. The highest percentage of rural and urban consumers eat kapenta once a month, although there is greater variation in frequency for rural consumers than urban consumers. This is supported by the results of the 1993 Indicator Monitoring Survey (CSO, September 1994). A total of 14,700 households were interviewed with just under 50% in urban areas. One of the objectives of the survey was to measure living conditions in general so questions were asked on food consumption. Kapenta (matemba) was included in this section of the survey because it was considered a basic food item. Information on consumption was sought by asking questions on shortages of basic foodstuffs. The main reason for shortages of matemba was that it was not available (97.4% in urban areas and 96.8% in rural areas)¹, rather than affordability.

¹ The data presented in the report is difficult to interpret in terms of the number of households reporting a shortage of matemba (Tables 6.5 a - d).

Figure 6

None of the wholesalers or producers noted a reduction in sales as a result of the imports of frozen mackerel apart from an initial reduction when mackerel first entered the market in early 1993. The steady rise in the price of kapenta has also not affected the market as all other prices have risen too. Many retailers and wholesalers felt that dried kapenta competes in a market different from that for frozen mackerel, namely the rural market. Dried kapenta is a product often bought to take to rural areas by people working in the urban areas, as it can be bought in small quantities. Sales are particularly high during holidays and during December when a lot of people return to the rural areas. According to some wholesalers, consumers prefer fish between 40 and 50 cm. Results from the consumer survey indicate that the usual quantity consumers purchase is 500 gms. or one kilo.

Wholesalers indicated that the 50 – 250 gm. packets are the most popular. The results from the consumer survey may not be very reliable, as data on quantities bought is often difficult to obtain with any degree of accuracy.

5.3.3 Bream

Supply

There are two main sources of supply of bream in Zimbabwe: Lake Kariba and small reservoirs scattered throughout Zimbabwe. Most of the bream from Lake Kariba is sold in either fresh or dried form to fish buyers (companies, cooperatives or individuals). The fish is then distributed throughout Zimbabwe. Some of the bream is filleted, packaged and sold either frozen or fresh, mainly to supermarkets in urban centres. Bream caught by local fishermen in small reservoirs is usually sold fresh, smoked or dried to people in the nearby area. This bream does not enter any of the formal marketing channels, but can be an important source of fish locally.

Another source of bream is fish farms, both commercial and small-scale. Commercial fish farms tend to be export-oriented or target the high income markets in the main urban centres. Bream produced by small-scale farmers is usually consumed locally. There were few retailers in the retailer survey who sold bream, but of those that did, there were very mixed responses about the supply situation. Some retailers thought it was very good, others thought it was in poor supply. Taking into account information gathered from wholesalers, it appears that the supply situation for fresh and frozen bream is erratic. Some complained that the quality of product from Lake Kariba was inconsistent, which caused concern amongst customers, especially hotels and restaurants. There was a general consensus that the hotel and restaurant market was undersupplied as they demanded fish of around 500 gms. in size. These were often not available from Lake Kariba and commercial fish farms were unable to supply enough. Some also felt that there was potential to develop the dried bream trade, but supplies of this product were also erratic.

Demand

Fresh/frozen bream is the second most bought fish in urban areas and third most bought fish in rural areas (see Figure 1). Taste is the predominant reason for buying bream in both urban and rural areas as shown in Figure 7. As with mackerel and dried kapenta, availability is a more important reason for purchases in rural areas than urban areas. Of the few retailers in the retailers survey who sold bream, 67% thought the main reason for buying bream was because people liked the taste.

Information on frequency of fresh/frozen bream consumption is given in Figure 8. There is little similarity between rural and urban consumers, most likely reflecting the erratic supply situation in rural areas. The majority of urban consumers appear to consume bream twice a week, but these figures seem rather high and suggest that the respondents may have been exaggerating. The majority of rural consumers buy bream at “any time”. As most of these respondents were in areas where there are a number of small reservoirs (Gwanda, Kotwa) and sourced their fish from there, this response reflects the erratic nature of purchases from fishermen. Some consumers went fishing themselves.

Figure 7

Figure 8

5.3.4 Frozen kapenta

At present, Irvin and Johnson is the main supplier of frozen kapenta in Zimbabwe, thought a few other companies are involved on a very small scale. The fish are sold in packs of 375 gms. Other kapenta producers are reluctant to enter this market as a more sophisticated infrastructure is required for the distribution of frozen products.

After the three fish products described in the previous sections, frozen kapenta is the next most purchased fish in urban areas where 6% of respondents said they bought it. In rural areas, purchases of frozen kapenta are less, mainly due to lack of refrigeration facilities. The main reason people purchase frozen kapenta was because they liked the taste and secondly because it was cheap. Fresh kapenta is also bought as pet food by high income consumers.

5.3.5 Tinned Fish

Currently in Zimbabwe, there is a wide range of tinned fish products available. Most of these products are imported in small quantities and targeted at the high income markets. In this market, tinned tuna, salmon, oysters and mussels are the biggest selling products.

The majority of tinned fish sold in Zimbabwe which are bought by low to middle income consumers is tinned pilchards and sardines. This market is dominated by the “Lucky Star” brand from South Africa. In recent years, wholesalers have tried to import other brands, but have experienced considerable consumer resistance, attributable mainly to brand loyalty. Lower prices of other brands have helped them to gain some market share away from “Lucky Star”.

Tinned pilchards in tomato or curry sauce, are available in three tin sizes (155 gms, 215 gms and 425 gms). The most popular tin size is 155g. Tinned sardines come in four tin sizes (120 gms, 155 gms, 215 gms and 425gms) of which the smaller sizes are more popular as they are cheaper.

The consumer survey showed that a higher percentage of rural consumers (4 %) bought purchased tinned pilchards compared to urban consumers (2 %), because they can be stored without refrigeration. An even lower percentage purchased tinned sardines (2 % of rural consumers, 1 % of urban consumers). The main reason cited for purchasing tinned fish are that people liked the taste of tinned fish. However, purchases of tinned fish are small, mainly because prices are high.

5.3.6 Dried Salted Horse Mackerel

Dried salted horse mackerel, mainly from Namibia, started coming into Zimbabwe in mid-1993 in noticeable quantities. Estimates of imports from the Ministry of Fisheries in Namibia are around 600 tonnes per annum. This figure seems quite high and conflicts with information which has been obtained from retailers, wholesalers and consumers (see below).

Dried horse mackerel is available in three forms. In order of cost, starting with the lowest these are: whole round dried and salted with guts in, butterfly with head and guts out, and butterfly with head off and guts out. The delivery prices in Harare from Namibia for the three types of product are around US$1.40 (Z$11.72), US$1.75 (Z$14.65) and US$1.88 (15.74) per kilo respectively. The product are imported packed in 9kg nett cartons and then usually packed into plastic bags by retailers and wholesalers (though some wholesalers and retailers do not re-pack the product).

The first importers of dried horse mackerel into Zimbabwe, COLCOM, have discontinued this product line. In general, the product has met with consumer resistance which has been attributed to a number of reasons. The price of the product was considered to be too high, especially when kapenta could be bought for a similar price. The size of the fish has also been a problem as consumers are unwilling to buy large fish, especially those above 20 cm., preferring fish in the 16 – 20 cm. size range. In addition, some wholesalers and retailers claim that the first shipments were of poor quality, which led to consumer resistance when a new, better quality, product entered the market. Some wholesalers reported difficulties in moving their stocks and as a result suffered problems of weight loss of stocks which were kept for too long. Extended storage also affects the quality of the product.

In addition, consumers appear to have difficulty preparing the dried fish for cooking, and probably because of this, find the fish too salty. (The fish should be soaked for at least 24 hours). Dried mackerel (carapau) used to be imported in reasonably large quantities in the 1950's and 1960's, but it is likely that the knowledge of how to prepare it has been lost for the majority of the population.

Only 15 of the respondents who participated in the consumer survey had bought dried horse mackerel, making it difficult to generalise about reasons why people buy this product. All of these consumers were from urban areas. Most of the information about the product was gained from discussions with consumers. No questions were asked on the reasons why respondents did not buy dried horse mackerel.

The round head-on, guts in variety appears to meet with the highest consumer resistance.

5.3.7 Other Imported Fresh/Frozen Fish

Most other imported fish is targeted at the high to middle income sector. There are two main suppliers of imported fish and fish products: Irvin and Johnson and Sea Harvest. Both companies have their head offices in South Africa, from where most of their products are sourced. They have a wide range of products, many of which are hake-based products such as fish fingers and fish cakes. There is also an increasing amount of fresh fish available on the market, usually air freighted on ice from South Africa, Namibia or Mozambique. Some fish, such as Nile perch, is sourced from Kenya and Tanzania. This fish is mainly sold to the more expensive hotel and restaurant trade.

The national market for high value whitefish has been estimated by some wholesalers to be between 60 – 100 tonnes per annum.

Some wholesalers have observed increases in the demand for lower-priced whitefish products such as fish fingers, fish cakes and hake pieces.

Recently, other low value fish, is being imported from Namibia. The main species is a red fish (Cape redfish?), which is sold locally as “red seabream”. Supplies of this fish are erratic, but the product apparently sells well. Prices are competitive with horse mackerel. The consumer survey results show that 2 % of rural and of urban consumers purchased this fish. The main reason people buy the fish is because they like the taste.

5.3.8 Trout

The study collected limited information on the supply and demand for trout. Trout, farmed in Zimbabwe, is considered a high value fish, with a limited market, mainly because of it's relatively high price. It appears that the increase in imported marine fish has negatively affected the market for trout.

5.4 Places where fish is purchased

According to the consumer survey (Question 3), the main place where fish is purchased is at supermarkets, as Figure 9 shows. Buying fish from smaller shops and from vendors is more likely to take place in rural areas than urban areas.

5.5 Substitutes for Fish and Fish Products

Retailers, wholesalers and consumers were asked about the substitutes for fish. When retailers were asked what they thought the main substitutes were for the popular fish, the responses were very similar for all fish (kapenta, bream, mackerel). The most commonly stated substitute for mackerel was vegetables as their price was comparable. For bream, the most commonly stated substitute was mackerel and meat. For dried kapenta, the most commonly stated substitute was also vegetables. Wholesalers thought that people are turning to fish because of the high prices of beef. With the amount of money which most people have to spend on food, they are no longer able to afford beef. Some wholesalers observed that people were also eating different meats such as offal, sausages and pork, all of which were cheaper than beef.

Figure 9

Consumers who ate fish were also asked a question on which kind of meat they bought most often (Question 4). The results are presented in Figure 10. The answers are very similar for both rural and urban consumers, with the exception of goat, which is eaten more by rural than urban consumers. Just under 90% of rural and urban consumers eat beef and around 35% eat chicken. The “other” category generally means game meat or offal. The main reason for urban consumers not eating meat was because they could not afford it.

Figure 10

Consumers were then asked which of the two types of product (meat or fish) they bought most often, and why (Question 5). 46% of both rural and urban respondents said they bought meat more often. Figure 11 presents information on the type of meat they buy more often (86% said beef) and Figure 12 gives the reasons why. Most urban consumers cited familiarity as the main reason, whilst most rural consumers said it was availability.

Figure 11

Figure 12

Of those consumers who bought fish more often than meat, 65% of urban consumers bought frozen mackerel, whilst rural consumers rated mackerel and dried kapenta almost equally. The results are presented in Figure 13.

The predominant reason for buying more fish than meat was price, and the second most important reason was taste. For rural consumers, availability was also an important reason (see Figure 14).

Figure 13

Figure 14

To test the hypothesis that increasing meat prices are turning more and more consumers to fish, consumers were then asked whether the increase in prices of the meat they buy most often led them to buying more fish (Question 6). 82% of urban consumers and 78% of rural consumers said yes, with 55% of urban consumers and just over 40% of rural consumers saying that they bought mackerel in place of meat (Figure 15). More dried kapenta was also being bought, mainly by rural consumers.

Figure 15

The reasons given for buying more fish than meat as a result of an increase in their most commonly bought meat price are a little ambiguous. This is largely the result of a badly phrased question because the question itself had an answer i.e. “with the increase in the price of ..”. Most respondents said the reason they were buying more fish as a result of increasing meat prices was because it was cheap (Figure 16), because meat prices had increased, and because they liked the taste. Health and variety also were given as reasons by over 20% of urban respondents.

Those rural and urban consumers who did not buy more fish as a result of increases in price in their favourite meat, gave the need for variety as the main reason, followed by price. (Figure 17)

5.6 Consumers who do not buy fish

In the consumer survey, 22% of urban respondents and 27% of rural respondents reported that they did not buy fish at all (Question 1). The main reasons given were that they did not like the smell, traditional and religious reasons, that it was bad for the health and that it had a bad taste. A higher percentage of rural consumers found fish expensive. The full results are shown in Figure 18.

Figure 16

Figure 17

5.7 Distribution channels and transport costs

Information on transport costs and distribution channels varies according to the type of product. Information available for the main products is described in the following section.

Dried Kapenta: Within Zimbabwe, practically all kapenta is distributed throughout the country by road. Costs of transport are usually borne by the wholesaler. In general, commercial trucking companies are used by most producers. Wholesalers either use their own trucks or commercial trucking companies. Where regular large deliveries are required, discounts are given on transport costs. These can be up to 15% for some companies. Bulk discounts are also offered for shipments over one tonne. Table 7 gives current average transport costs based on information provided by the transport companies.

Figure 18

For shipments of less than one tonne, there is a minimum cost of Z$152.55. Costs for these shipments are calculated by multiplying the kilo rate for shipments over one tonne by the number of kilos.

Table 7 Transport costs for dried kapenta from Kariba to destinations in Zimbabwe

Fresh/Frozen Fish: Fresh or frozen fish from Lake Kariba is transported to Harare and other main destinations in Zimbabwe in refrigerated trucks. Below 25 tonnes, transport costs are Z$ 0.44/kilo. Commercial fish farmers usually rely on their own transport.

Horse mackerel: Horse mackerel imported from Namibia is transported in 22.5 tonne loads in refrigerated trucks. The two main routes are through the Caprivi Strip and via South Africa. Transport costs have been estimated to be South African Rand 0.55/kilo (equivalent to Z$1.31).

Other Imported Frozen Fish and Fish Products: Imported fish and fish products from South Africa are either transported by refrigerated truck or air freighted. The main fish trading companies use their own refrigerated trucks. Costs of transport were not possible to obtain.

Fish from other destinations (Mozambique, Kenya, Tanzania) are transported either by air or road. Costs were not available.

5.8 Costs and Margins

Information on retail prices of the main fish and fish products purchased in Zimbabwe was collected from 73 retail outlets. The results are given in Figures 19 – 22. Figure 19 shows the minimum, maximum and average prices of four fish products (fresh/frozen bream, frozen mackerel, frozen “red seabream” and frozen kapenta. Prices of imported fish has the least variation. The average retail price for frozen mackerel is Z$6.60/kg. The landed price in Zimbabwe is approximately Z$4.40/kg. The average wholesaler mark-up to the retailer is around 25%. This includes packaging and delivery. Average retailer mark-ups are around 20% of the wholesaler price, and might also include further packaging. Thus by the time the product has reached the consumer, its price has, on average, increased by 50%. Obviously there are great variations in wholesale and retail prices, and these figures should be regarded as averages only.

On the basis of information from the retail price survey, prices of fresh/frozen bream show the greatest variation based on information from the retail price survey. Average retail price is currently around $Z 14.25 (see Figure 19). Landed prices of bream vary according to the place of capture. At Lake Kariba, the beach price of fresh bream is on average, Z$ 4.50 – 5.00/kg (head-on, gut out). By the time the fish has reached Kariba town, the price will have increased by 30%. By the time the fish has reached Harare, the price will have increased by 50% (wholesale). Refrigeration, handling and processing costs are borne by the wholesaler. Transport costs are estimated at Z$0.44/kilo. Thus, by the time the fish is on sale at a retail outlet, the price will have increased by 200% between landing and sale to the consumer. Wholesale prices for farmed bream are, on average, around Z$10.00/kg. Thus the margin on farmed bream is significantly less than the margin on captured bream.

Average retail prices for “red seabream” and frozen kapenta have also been included in Figure 19. As the sample size for both these products was quite small, it was not possible to obtain average wholesale prices. to obtain.

Figure 19

Minimum, maximum and average retail prices for dried kapenta are given in Figure 20. All prices have been converted to per kilo prices. The smaller the packet, the higher the average price per kilo. Beach prices (i.e costs per kilo of dried kapenta for the operator) are not available, but average wholesale prices (i.e price for dried kapenta at point of sale to wholesaler) of dried kapenta are currently around $14/kg. Packaging smaller amounts requires more labour and costs of packaging are slightly higher. In general, the “20% rule” applies to dried kapenta as well, in terms of the difference between wholesale and retail prices. Some wholesalers sell their product direct to the public at a price which appears to lie somewhere between the average wholesale and retail price. Comparing the current producer price for kapenta, and the estimated wholesaler price to the retailer, the margin is around 45 –50%, from which the wholesaler will cover costs of transport and packaging.

The minimum, maximum and average prices for tinned pilchards, based on the price survey is given in Figure 21. All prices have been converted into a kilo equivalent price. The smaller the size of tin, the higher the kilo cost of the fish. It is interesting to note that prices for tinned pilchards, at whatever size of tin, vary significantly. Information was not obtained on transport or canning costs to enable margins to be calculated.

The minimum, maximum and average prices for tinned sardines are shown in Figure 22. Whilst kilo price decrease as tin size increases, with the exception of the smallest tin size (120 gms), there is little difference between maximum and minimum prices.

Figure 20

Figure 21

5.9 Market Segmentation

Markets are not homogenous in the sense that one product or type of fish will be bought equally by all consumers. The concept of knowing which variables affect market segmentation enables producers to group consumers, identify their needs and wants and thus target them effectively.

There are many variables which affect household consumer segmentation in Zimbabwe but little market research information is available. The variables can be grouped under two headings: socio-economic (age, sex, occupation, number of income, residence location) and individual (personality, media habits, lifestyle).

Figure 22

The most widely used of all segmentation variables is demographics. The consumer survey indicates that age was not an important variable as shown in Figure 23 where there are no differences between fish consumers (rural and urban) in terms of age group.

Figure 23

The main socio-economic variables affecting market segmentation in Zimbabwe seems to be income and residence location. Income affects the type of fish purchased, with the higher income groups purchasing fish and fish products in the higher price bracket. Packaging, presentation and brand loyalty are important to these consumers. The middle income urban consumer is increasingly purchasing cheaper imported fish and fish products, such as fish fingers, fish cakes and frozen hake fillets. Low income consumers purchase the cheaper varieties of fish available on the market such as dried kapenta and frozen horse mackerel.

Within these categories, residence location (i.e. rural or urban) is also an important variable affecting market segmentation. The main difference between the urban and rural market for fish and fish products ire the lack of refrigeration in many rural areas and the more limited purchasing power of rural consumers. Dried and tinned fish, and to a lesser extent, fresh fish caught or farmed locally, are the fish products most commonly available in rural areas. This situation is unlikely to change until refrigeration facilities become more widespread.

In urban areas, greater variety, shops with refrigeration and higher cash incomes, has meant that the demand for fish and fish products is more varied. For the majority of urban residents who are on low incomes, lower value fish such as mackerel and kapenta is in greatest demand. Middle and high income consumers are able to afford higher value fish, and focus on imported fish, mainly from South Africa, which is now available in supermarkets in most urban areas.