South African citrus industry thrives despite challenges. Image: BusinessLive.
(The Post News)– The South African citrus industry holds a prominent position globally, ranking as the second-largest exporter of citrus fruits worldwide, surpassed only by Spain.
This industry plays a vital role in the country’s agricultural sector, generating substantial economic benefits. With over 140,000 jobs supported on farms, citrus production is a significant source of employment. Moreover, the industry contributes a substantial R34 billion in foreign revenue per season, underscoring its importance to the national economy.
The Citrus Growers’ Association of Southern Africa (CGA) is proactively engaging with various countries to explore potential market opportunities for the citrus industry. According to Dr. Boitshoko Ntshabele, CEO of the CGA, discussions are currently underway with BRICS nations, as well as Japan, South Korea, and Saudi Arabia, to facilitate market access and expansion. Dr. Ntshabele emphasizes that market access is a critical issue that requires government attention, particularly in light of the upcoming budget vote.
The citrus industry’s growth trajectory has been largely driven by its ability to access new markets, and this trend is expected to continue. The CGA projects that the industry will export 260 million cartons by 2032, underscoring the importance of securing new markets and ensuring uninterrupted growth. However, the industry faces significant challenges in its largest market, the European Union, due to stringent regulations and limitations on exports related to Citrus Black Spot (CBS) and False Coddling Moth (FCM).
The CGA views these barriers as unscientific and unjustified, arguing that they unfairly restrict the industry’s access to the EU market. This issue is currently a subject of dispute between South Africa and the EU at the World Trade Organisation (WTO). A prompt resolution to this dispute would be beneficial for the industry, as it would likely result in improved market access and a reduction in costs borne by citrus producers in South Africa.
The citrus industry has positively responded to the Minister of Agriculture’s announcement regarding a heightened focus on biosecurity measures. By prioritizing biosecurity, the minister’s initiative aims to address concerns related to CBS and FCM, potentially easing export restrictions and facilitating the industry’s growth and competitiveness in the EU market.
The citrus export season is currently at its peak and will end in October, with Limpopo being the biggest production area, followed by the Eastern Cape and the Western Cape.
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