South Africa’s citrus industry has had a tough year when it comes to market access and the astronomical costs faced by growers. In spite of this, the Citrus Growers Association of Southern Africa (CGA) is committed to ensuring that the industry not only survives, but remains Mzansi’s top agricultural exporter and employer for years to come.
According to the citrus industry, several industry challenges – most of which are external – hindered the exportation of some citrus varietals.
Justin Chadwick, chief executive officer of CGA, said in a media statement that compared to 2021, the final figures were far lower than what was predicted when the season started in March this year.
For mandarins, a total of 31.8 million cartons were packed for export to key markets this season, which is an increase of 900 000 cartons from 2021. However this is 2.7 million cartons less than the season forecast, Chadwick pointed out.
“Volume growth in lemons continued unabated, with 34.7 million cartons packed for export in 2022, an increase of 3.6 million cartons from the previous year, and 2.4 million cartons more than what was predicted,” he said.
The perfect storm of challenges also resulted in a drop in packed export volumes of some varietals when compared to 2021.
“For example, 16.7 million cartons of grapefruit were packed for export this year, which is 800 000 less than the 17.5 million cartons the previous year. There was also a decrease in the number of cartons of Valencia’s packed for export, with 53.8 million cartons exported versus 55 million in 2021.”
The only other category that saw positive growth was navels, with 27.8 million cartons packed for export in 2022. This was an increase of 600 000 cartons when compared to last year. However, it was 900 000 cartons less than the 28.7 million carton forecast at the start of the season.
Some good news
Despite these challenges, CGA has vowed their commitment to working with government to optimise, secure and retain as many market access opportunities as possible in order to ensure growers are able to export their fruit at good returns.
According to the CGA, the United States, India, China, Japan, Vietnam and the Philippines are key markets that offer major potential for expanded access and require particular attention ahead of the 2023 season.
Speaking on shipping price hikes, Chadwick said that freight costs increases by over 150% over the past two years has been a concerning reality for the industry. These astronomical costs has had devastating impact on growers’ profit margins, putting many of these local businesses at risk.
“This is why the CGA has commissioned a project with other fruit sectors to investigate options to bring about structural change in the shipping environment in order to control freight rates and improve service delivery.
“However, the early indication of a normalisation of container movement seen around the world should also bring about a balance in container supply and demand and some relief in shipping rates in 2023,” Chadwick said.
While there have been some short-term improvements at the country’s ports as a result of interventions driven by Transnet during the 2022 season, the expected annual increase in containers of fruit being shipped from South Africa over the next few years, will pose a major strain on the ports.
This is if ongoing infrastructure and operational issues are not addressed.
In the upcoming 2023 season, the CGA would like to work with Transnet and other stakeholders to identify any issues at the ports and come up with solutions to resolve these.
“The fact that the process to bring in public-private partnerships into Durban and Ngqura ports remains on track to be concluded early next year is extremely positive, and it is critical that similar partnership opportunities be explored for Cape Town port.”
Crossing fingers for a better 2023
At the same time, the unjustified and discriminatory new False Coddling Moth (FCM) regulations passed by the European Union (EU) mid-season has also placed financial strain and risk on growers
The CGA maintains the view that the new EU FCM regulations, which will require mandatory cold treatment of SA oranges entering the region, is a major threat to the future sustainability of the industry.
“These regulations are also completely unnecessary in light of the world-class and highly effective FCM risk management systems already in place.”
The CGA continues to support various role-players and hopes that the process will result in a solution that is mutually acceptable to all parties.
ALSO READ: SA fruit industry left reeling after brutal 2022
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
