In a bold move to expand its global reach, the Citrus Growers Association of Southern Africa (CGA) has announced its entry into the Vietnamese market, aiming to tap into the country’s burgeoning demand for high-quality citrus fruits.
With Vietnam emerging as a key player in the Asian fruit import market, this strategic move could open new avenues for South African citrus growers amidst a backdrop of evolving challenges.
Optimism fuelled by market potential
Justin Chadwick, the chief executive officer of the CGA, expressed optimism about the venture.
“Vietnam’s vibrant economy, coupled with its growing middle class and appetite for fresh produce, presents a promising opportunity for South African citrus exporters. We believe that our oranges, known for their exceptional quality and taste, will resonate well with Vietnamese consumers,” he said.
According to Chadwick, the decision to target Vietnam stems from careful consideration of market potential, consumer preferences, and logistical feasibility.
Chadwick highlighted the significance of understanding consumer preferences. “Vietnamese consumers show a preference for both navel and Valencia varieties of oranges. By aligning our offerings with local tastes, we aim to establish a strong foothold in the market,” he said.
Expertise in long-distance shipping
Logistical challenges, particularly concerning the transportation of large quantities of oranges over long distances, have been addressed by leveraging South Africa’s expertise in citrus exportation.
Meanwhile, Loftus Marais, account manager at Resolve Communications, emphasised the industry’s preparedness. “South Africa has perfected the ability to ship citrus over long distances. Our fruit quality and preparation methods ensure that oranges arrive in excellent condition, meeting the stringent standards of international markets,” he said.
While competition within Vietnam’s domestic fruit industry exists, CGA’s entry into the market is strategically timed to capitalise on gaps in local production.
Khaya Katoo, an Eastern Cape farmer and net exporter, welcomed the news as a great development for the local growers. “The opening of the Vietnamese market offers significant export potential, translating into more job opportunities and revenue generation for South African citrus growers,” he said.
Looking beyond the initial shipment, CGA envisions long-term growth and expansion into other citrus varieties, including mandarins, grapefruits, and lemons. This move aligns with the organisation’s commitment to sustainable growth and diversification within the citrus industry.
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Challenges remain
However, challenges remain, including phytosanitary regulations and logistical constraints. “The European Union’s stringent regulations regarding citrus black spot and false coddling moth pose threats to South African citrus exports, highlighting the need for continued advocacy and collaboration among industry stakeholders,” Chadwick said.
According to CGA, the establishment of a bilateral protocol between South Africa and Vietnam marks a significant milestone in the quest for expanded market access.
During the recent Mzansi Young Farmers Indaba, minister of agriculture Thoko Didiza reaffirmed the government’s commitment to supporting farmers and driving export-led growth, highlighting the importance of collaborative efforts in navigating global trade dynamics.
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