South Africa has managed to secure a major breakthrough for local citrus exporters. Thanks to high-level government intervention, tonnes of South African citrus are no longer at risk of being destroyed.
According to Reggie Ngcobo, spokesperson for the department of agriculture, land reform and rural development, a settlement agreement was struck with the EU about citrus fruit that had been shipped from South Africa before the publication of new cold-treatment regulations.
Due to the mid-shipment change in regulations, the citrus had been deemed non-compliant and held back by port authorities on arrival. Thanks to the pact, however, citrus containers are no longer at risk of being destroyed but are now being processed and will soon be heading to EU retailers and supermarkets.
“To date, we have managed to clear more than 300 of the 509 containers and we are processing clearance of the remaining containers,” Ngcobo says.
The breakthrough follows a meeting which the department had with the European Commission (the executive body of the EU) on 5 August. By the end of that meeting, interim measures on the non-compliant consignments were in place and the EU will now allow South African citrus to complete the required cooling period in the EU.
“The interim measures provide that the consignments be treated at the cold treatment facilities in the EU and the department to notify other EU member states,” Ngcobo explains.
Last-minute intervention
The much-needed breakthrough comes after several failed attempts by the local industry to get the brand-new phytosanitary regulations in the EU reversed.
Despite being dubbed as “misinformed” or “politically motivated”, the new measures were introduced to limit false codling moth (FCM) risks in Europe and include more stringent phytosanitary requirements for grapefruit and soft citrus and a revised cold-treatment regime for oranges.
Over 2 000 containers carrying citrus with an estimated value of R500 to R600 million were already shipped when the new rules came into effect, and the local industry confirmed a loss of around R200 million in damages and profit so far.
Deon Joubert, the Citrus Growers Association’s special envoy for market access and EU matters, told eNCA that about 40% of the fruit has been cleared since then.
“We will get most of them [into markets]. The issue will only be that we’ve got about three weeks of detention, demurrage, and missed slots in supermarkets and shops. There will be substantial opportunity costs to that. But at least we got a breakthrough and we are extremely happy with the support from the ministers of trade and industry and agriculture who intervened,” he said.
ALSO READ: From this week, SA citrus could be destroyed in Europe
What about the trade dispute against the EU?
Meanwhile, South Africa’s trade dispute, which the country has lodged against the EU with the World Trade Organisation (WTO) in Geneva, is far from over, Joubert confirmed.
On 22 July, the Permanent Mission of South Africa to the United Nations and Other International Organisations wrote to Joao Aguiar Machado, ambassador of the EU to the WTO, to request further consultations with the EU.
“We hope this will clear the way for the future. It’s not just about this year, but also getting fair and equitable access for South African citrus to Europe in the future,” Joubert said.
Meanwhile, Justin Chadwick, CEO of the Citrus Growers Association, told Food For Mzansi in a previous article that it is still to soon to tell what the outcomes of the WTO dispute will be and what impact it will have on the phytosanitary requirements of citrus destined for export to the EU this year and next.
ALSO READ: ICYMI: SA lodges dispute in citrus fiasco
Not all containers being released
Food For Mzansi has learned that approximately 900 containers of citrus fruit that have been detained at EU borders do in fact comply with the new EU regulations and simply require new phytosanitary certificates from the department of agriculture, land reform and rural development.
The department has confirmed that negotiations on phytosanitary certificates with the EU, through the relevant national plant protection organisations, have since yielded positive results.
An agreement with the Netherlands led to replacement phytosanitary certificates being issued for oranges since Monday, 1 August. The local agri department has also agreed in a meeting with industry on 3 August, to include other ports of entry after having received a positive response from Italy on an equivalent cold treatment declaration.
“So far, the department – with information being submitted by industry – is re-certifying orange consignments blocked in the Netherlands and Italian ports and we are receiving confirmation that the containers are being cleared.”
Citrus in ports in Denmark, France, Germany, Portugal, Spain and Sweden are yet to be cleared.
In the meantime, Citrus Research International and the Perishable Products Export Control Board have confirmed that between 350 and 400 containers of citrus at EU ports do not comply with the new regulations.
The release of these containers, Chadwick said, will have to be assessed on a case-by-case basis.
ALSO READ: Exclusive: What’s next in SA’s citrus nightmare?
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
