The slow pace in ensuring wider access to key markets such as the US, India, Vietnam, Japan and Thailand, in order to absorb the increased production of fruit, posed a real risk to the citrus industry, Justin Chadwick, the CEO of the Citrus Growers Association of Southern Africa (CGA) said yesterday.
The organisation, which ensures growers interests were furthered through representation to citrus industry stakeholders-including government, exporters, research institutions and suppliers to the citrus industry, said that in this year's export season Southern African citrus growers packed 165.1 million (15kg) cartons for delivery to global markets.
“While this is an increase of approximately 800 000 from the packed figures of last year, it is still 500 000 cartons lower than the forecast at the start of the season and more importantly, substantially below the anticipated growth curve based on plantings that can see the industry potentially hitting 200 million cartons in the next four years, and possibly 260 million cartons by 2032. This highlights that growers continued to face a number of challenges when it comes to getting their fruit to key markets,” Chadwick said.
He said should the challenges concerning electricity supply, input costs, logistics, unfair trade regulations and barriers blocking market expansion be addressed by all the relevant role-players and stakeholders, the citrus industry could easily attain its goal of creating a further 100 000 jobs and generate an additional R20 billion in annual revenue by 2032. This would bring its total contribution to 240 000 jobs and R50bn in revenue, he added.
CGA said following an extremely challenging two years, where only one in five growers made a profit, this year’s better market prices and reduced shipping costs offered a measure of relief to many growers.
“However, they continued to face a number of challenges which negatively impacted the amount of citrus they could export and their profits. These included sustained high levels of load shedding, which impacted their ability to irrigate, fertilise, pack and cool citrus, the latter being an essential phytosanitary requirement for many export varieties.”
Chadwick said the general surge in farming input costs continued during this season and placed pressure on growers. Devastating floods in the Western Cape in June also impacted farms in that province causing damage of at least R500 million to citrus farms in the Citrusdal valley.
He said that another significant challenge was the worsening logistics crisis, which has paralysed large segments of the country's export economy.
“Congestion at ports and a dysfunctional freight rail network has cost farmers dearly and is, in effect, halting growth opportunities for the citrus industry. The CGA continues to engage with Transnet on these issues, but is in full support of Transnet expediting public-private partnerships both in the ports and the rail system as a matter of urgency. In this regard, the CGA has welcomed the announcement of International Container Terminal Services (ICTSI) as the preferred bidder to develop and take over the operations of Durban Container Terminal Pier 2 and have already started engaging with the company ahead of it taking over the terminal next year.”
CGA said perhaps the biggest challenge faced by the industry this season has been an intensification of the unjustified phytosanitary regulations imposed on its growers by the European Union (EU). Taken together, the unnecessary protocols and proactive measures against Citrus Black Spot (CBS) and False Coddling Moth (FCM) were costing the local citrus industry R3.7 billion annually, it said.
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