South African producer, ZZ2, will soon start date production in Namibia. The fresh fruit company, working with a joint venture involving two other companies, is adding dates to its line of avocados, onions, and other fresh produce. The farming organization supplies more than 40 percent of commercially traded tomatoes in South Africa and has expanded to have shares in commercial seedling, an online fresh produce trading platform, manufacturing and compost facilities. The joint venture in Namibia is one of the company’s newest projects and is part of its strategy to increase quality healthy, fresh fruit availabilities in line with consumer demand for healthy fruit options.
The 80-hectare plot of land in Namibia’s Karas region will increase Namibia’s market share in the global production of dates. Dates are known to be exceptionally nutritious and demand from Europe for this healthy fruit is driving production in the market and other key producing areas such as Israel and Jordan. Like these countries, Namibia’s extreme climate provides the ideal growing location for dates. The intense heat and water supply from the Orange River, rather than rainfall, allows dates to grow in optimal conditions. Additionally, Namibia’s growing season is
Dates are known to be exceptionally nutritious and demand from Europe for this healthy fruit is driving production in the market and other key producing areas such as Israel and Jordan. Like these countries, Namibia’s extreme climate provides the ideal growing location for dates. The intense heat and water supply from the Orange River, rather than rainfall, allows dates to grow in optimal conditions. Namibia’s location also provides easier access to markets in South Asia or Indonesia than other producing regions, although most production is exported to Europe.
This investment represents a positive long-term outlook on agricultural production in the region, as dates take around 3 years to start producing fruit and about 8 years to repay their investment.
It is not the first time investors have eyed Namibia as a prime location for producing dates. Al Dahra Agricultural Company, based in the UAE, made a US$20M in date production in the country a few years earlier, also citing the climate and counter seasonality as key drivers in the investment decision.
Growing demand in Europe for Medjool dates is twofold. Migration into Europe over the past few years has consisted of a largely Muslim population. Especially during the Ramadan season, this population will significantly drive demand for Medjool dates. This is particularly beneficial as Namibia’s growing season is counterseasonal to date-growing regions in the Northern Hemisphere and the area for date production in the Southern Hemisphere will be in season during Ramadan, according to Clive Garrett, a representative from the company.
The nutritional benefits of dates are also becoming more well-known and desired. Medjool dates, in particular, are rich in anti-oxidants, magnesium, potassium, fiber, and are known to strengthen the immune system, according to the Jordan Times. Their natural sugar content provides a boost of energy and can act as a replacement for other sweet snacks with added sugars.
ZZ2’s investment in date production in Namibia is poised to supply multiple growing market places and create opportunities in Namibia’s agricultural sector.
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Tiffany Agard