Sweet citrus crop faces export squeeze
Delays at ports and EU regulations threaten South Africa’s fruit growers
● South Africa’s citrus growers are concerned that port constraints and hostile trade policies in export markets will undermine their favourable yields this year.
Citrus Growers Association (CGA) CEO Justin Chadwick said they took exception to certain EU regulations and how they have been applied.
“We are deeply concerned about the EU’s phytosanitary regulations regarding citrus black spot and false codling moth [a notoriously destructive fruit pest]. These regulations are unscientific and discriminatory — as was proved last year through a number of false interceptions by the EU,” he said.
The EU’s hard line against citrus black spot — an aesthetic problem that has no impact on a fruit’s health or taste — has been a thorn in the side of local exporters for years, often forcing farmers to take on millions in losses by suspending exports.
Chadwick said the CGA would continue to fight the regulations and called for speedy action by the South African government at the World Trade Organisation.
“Even though there will be a sufficient supply of high-quality citrus, and a strong demand for it from European consumers, these protectionist trade measures might limit the export of, especially, oranges,” he said.
A record 165-million cartons of citrus fruit were packed for export in 2023.
Chadwick said that while expected high production and demand for citrus made the CGA cautiously optimistic about the year ahead, they were concerned about challenges in the logistics of getting their fruit to market. “The fruit on the trees is looking very good and we expect an increased crop yield in the coming season. There certainly is a potential for another record-setting amount of cartons exported,” he said.
“As things stand now, our growers have, under difficult circumstances, ensured that there will be large amounts of citrus when harvesting truly ramps up, starting in April, supplying consumers around the world with our sought-after fruit.
“We hope that congestion at the ports will be truly addressed before our growers start packing. The selection last year of ICTSI [International Container Terminal Services] for the development and upgrading of the Durban Container Terminal Pier 2 is welcome and we have engaged with ICTSI on the project,” he said.
Chadwick said the success of the publicprivate partnership was critical to the export economy, especially considering its potential as a new model for all national ports.
Cape Town’s port has been in decline for years. The deciduous fruit industry body Hortgro, which has threatened court action against Transnet over lost export earnings, has acknowledged some improvements since Transnet acting CEO Michelle Phillips took over in November.
Chadwick said the citrus industry, which grows a water-intensive crop, was monitoring the possible effects of El Niño but had not yet seen any significant negative impacts.
“Even though we take El Niño and hotter weather seriously, the EU regulations and the congestion at our nation’s ports currently pose a considerably bigger threat to our growers.”
He said many growers have insulated themselves against load-shedding through large-scale installation of solar power.
Agbiz chief economist Wandile Sihlobo said South Africa could have another favourable agricultural season in 2024.
“A lot will unfold in the coming months, but there are now some reasons to be more optimistic about the production conditions. South Africa’s field crop harvest was excellent in the 2022/23 season,” he said.
However, Sihlobo said, excellent agricultural yields did not translate into robust agricultural machinery sales as they did in the past, and sales painted a mixed picture in 2023.
“Moreover, the fruit and vegetable prices, which remained elevated towards the end of 2023, will likely slow notably in the coming months because of the estimated increase in the volume of products that are in season in the various fresh produce markets.
“The supply constraints in some vegetables last year, mainly potatoes, were caused by the bad harvest. We expect improvement in 2024, regardless of the reports of pepper ringspot virus in a few potato farms in the northern regions of South Africa,” he said.
The department of agriculture, land reform & rural development referred questions from Business Times to the department of trade, industry & competition, which did not respond.