FRUIT FLIES MENACE MOZAMBIQUE EXPORTS

UNCLAS SECTION 01 OF 02 MAPUTO 001255 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EAGR ECIN ECON ETRD EINV MZ SF SUBJECT: FRUIT FLIES MENACE MOZAMBIQUE EXPORTS ¶1. (SBU) SUMMARY: In September and October, an ongoing fruit fly infestation resulted in a ban on Mozambican fruit and vegetable exports to South Africa and Swaziland, causing significant damage to farmers, particularly banana exporters who lost an estimated $2 million. Thanks to quick action by USDA officers (FAS and APHIS) working from the Embassy in Pretoria, the South African and Mozambican governments, the private sector, and Eduardo Mondlane University, the South African restrictions on banana producers were lifted and exports resumed. Trade restrictions remain in place in other areas, notably for mangoes from the Manica region. Farmers worry that this infestation may not only raise food security concerns, but also cause a fall in consumer confidence and investor flight from what could be a significant investment success story for Mozambique -- large-scale export-driven plantation agriculture. END SUMMARY. ¶2. (SBU) The fruit fly species, Bactrocera invadens (Bi), attacks a variety of fruit and vegetables, including citrus fruit, bananas, guavas, mangoes, melons, avocados, tomatoes, and pumpkins. Originally detected in Africa in 2003, this fruit fly is spreading quickly, and is an especially aggressive pest that can have significant economic impact on farmers. In an emergency September meeting between the Mozambican and the South African Agriculture Agencies, the governments confirmed two cases of fruit fly infestation, found in two separate instances in traps on the Vanduzi plantation in Manica province near the border with Zimbabwe. -------------- FRUIT FLY CLOSES BORDER TO AG EXPORTS -------------- ¶3. (SBU) As a result of the detection, the South African and Swaziland borders were subsequently closed to Mozambican fruit and vegetable exports in order to protect South African agricultural products from infestation. Due to the joint timely efforts of USDA in Pretoria, Government of Mozambique's (GRM) Plant Protection Office, the private sector, and Eduardo Mondlane University, a surveillance and monitoring program was established in the key banana producing areas around Maputo. As a result of this aggressive monitoring effort, it was determined that the pest has not moved into the southern region, and with no additional cases of fruit fly infestation reported, South African authorities agreed in October to allow imports of ;bananas from areas under surveillance, as long as no further detections occurred. In the Manica area, South Africa will require one year's worth of negative trapping results before it lifts the ban on imports from that area. Meanwhile an internal ban remains on the movement of any fruit from Manica and Niassa provinces, either for export or to other parts of Mozambique. -------------- USDA (FAS and APHIS) PLAYS A VITAL ROLE -------------- ¶4. (SBU) Regional USDA officers from both the Foreign Agriculture Service (FAS) and the Animal and Plant Health Inspection Service (APHIS) have been working intensively on sanitary and phytosanitary (SPS) issues with a variety of domestic stakeholders since June 2008 with an aim at improving Mozambique's SPS systems. APHIS' discussion with Mozambican authorities on the threat posed by Bi began in 2006, and currently two regional APHIS SPS specialists continue to work with the GRM National Plant Protection Office to set and monitor fruit fly traps, collect specimens, and transport them to South Africa for testing. In October, this team completed a surveillance program in Cabo Delgado Province, and confirmed extremely high levels of Bi infestation. -------------- BANANA EXPORTERS SUFFER -------------- ¶5. (SBU) Banana producers are calling for the Ministry of Agriculture to support farmers who have lost income due to the temporary border closure, pointing out that it is important for the country that banana producers survive this period of uncertainty. According to Mozambican banana exporters, the implications of future bans of fruit and vegetable exports to South Africa would be devastating, since only two percent of bananas produced domestically are sold within Mozambique. Mozambican fruit producers have lost MAPUTO 00001255 002 OF 002 about $2 million because of the South African ban, disproportionately affecting banana producers, primarily located in the southern provinces. Put another way, Mozambique was unable to export as much as 3,000 tons of bananas to South Africa due to the ban. Roberto Albino, director of the Agriculture Promotion Center (CEPAGRI) estimates Mozambique will fall short of its export goal of 30,000 tons of bananas for 2008 due to the fruit fly infestation and ban. Banana producers point out that any future ban of longer than one month would result in an immediate loss of more than 3,000 jobs, at least $10.1 million in foreign earnings, and more importantly, loss of investor confidence in the Mozambican agriculture sector and the GRM's SPS capacity. -------------- FRUIT FLY AND INVESTOR CONFIDENCE -------------- ¶6. (SBU) The potential for large-scale plantation agriculture is strong in Mozambique. With 89 million acres of arable land, of which only 12 percent is currently in use, viable irrigation, access to ports, and relatively inexpensive labor and electricity, agriculture could be a major attraction to foreign investors. Feasibility studies are currently underway to determine the potential for additional tropical fruit production, but also plantation forestry. Mozambique, with a population of over 20 million people and only 400,000 jobs in the formal sector, depends on agriculture, which already accounts for 25 percent of GDP, as a current and future source of employment and export earnings. Commercial fruit farming is still in its infancy, with Chiquita Brands International expected to begin exporting Mozambican bananas to European markets in 2010, for example. Any subsequent fruit fly infestation, and the resulting loss in investor confidence, could cause permanent damage to the industry if not rapidly addressed by Mozambican agriculture experts. -------------- FRUIT FLY AND FOOD SECURITY -------------- ¶7. (SBU) Should the fruit fly infestation continue moving south through Mozambique's rich agricultural areas, the pest could have a significant impact on the country's food security, and an economic impact on farmers, forcing greater dependence on food imports for the 75 percent of the population that relies on agriculture for survival. While the sector continues to show vulnerability to natural disasters such as droughts and floods, the addition of a country-wide Bi infestation could result in additional pressure on agricultural production, the vast majority of which comes from small scale subsistence farming. -------------- COMMENT: CAPACITY BUILDING NEEDED -------------- ¶8. (SBU) The threat posed by the September fruit fly infestation to the economic well-being of Mozambican farmers, to food security, to regional trade, and to potential future investment in agriculture highlights the ongoing importance of efforts to monitor this infestation and seek means to mitigate its impact. The Mission and USDA's regional presence, based in Pretoria, will continue to provide support and find lasting solutions to minimize the impact of any future infestations, while at the same time build SPS capacity in the GRM. It is essential that further surveillance programs be implemented south of the areas already confirmed to have the fruit fly in order to track the pest's movement. An annihilation and trapping program also needs to be implemented to slow the fruit fly's spread. FAS and APHIS will continue to liaise with relevant authorities across the region to build local SPS capacity, learn more about control measures, track the pest's movement, assist with mitigation, and work to minimize trade disruptions due to the fruit fly infestation. Amani