Sunday Times

Sweet citrus crop faces export squeeze

Delays at ports and EU regulation­s threaten South Africa’s fruit growers

- By KHULEKANI MAGUBANE

● 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.

 ?? Graphic: Ruby-Gay Martin Source: Stats SA ??
Graphic: Ruby-Gay Martin Source: Stats SA

Newspapers in English

Newspapers from South Africa