While SA’s citrus industry is facing uncertain times, its potential for immense growth and a fruitful future will remain intact if market access opportunities are seized and logistics challenges are urgently addressed.
This was among the overarching narratives of the fifth Citrus Summit, hosted by the Citrus Growers’ Association of Southern Africa (CGA), that brought together the citrus industry in Gqeberha this week.
The three-day summit, starting on Tuesday, at the Sun Boardwalk Convention Centre, saw minister of agriculture and keynote speaker, John Steenhuisen, emphasising the importance of the industry for the country’s sustainability.
“SA’s citrus industry is one of the success stories of our country ... it created countless jobs in our rural communities — where we need them most,” Steenhuisen said.
He said to ensure its continued success, the industry needed to renew the American Growth and Opportunity Act (Agoa) which allows SA to export fruit to the US.
Steenhuisen said SA’s potential expulsion from Agoa would put thousands of jobs at risk and could have a domino effect throughout the citrus value chain.
“I urge all stakeholders to prioritise the renewal of Agoa, or at least trade tariffs and agreements that will allow us to keep our excellent citrus products flowing to the markets that love them so much.”
He also highlighted the need to develop new markets, particularly in Asia, the Middle East and India.
Incoming CGA CEO Dr Boitshoko Ntshabele underscored the industry’s potential.
“Increased market access is crucial.
“Projections show the industry can create 100,000 jobs by 2032.
“It can do this through increasing exports with roughly 95-million 15kg cartons to a total of 260 million cartons.”
He said citrus was SA’s biggest agricultural export and could be a driver of huge economic growth and rural development.
“But for this to happen, everybody along the supply chain — whether they are in the orchard, or at the port, or in the boardroom — must be aligned.
“With this in mind, we look forward to starting the 2025 season.”
Transnet group CEO Michelle Phillips addressed the delegates on the progress the company had made in increasing the efficiency of its rail system and ports.
“The rail network is now open for private train operators,” she said.
“We will see the system become more competitive ...This season has to work better than last year.”
Phillips said equipment acquisitions worth R3.4bn, across eight terminals, in the 2024/2025 financial year, would increase to R4bn, across five terminals, in the 2025/2026 period.
Logistics expert Thomas Eskesen said port inefficiency came at a serious cost.
He said a recent study by the Bureau for Food and Agricultural Policy found that the total cost of inefficient logistics to the citrus industry amounted to R5.27bn per year.
A figure he believed was “highly underestimated”.
Eric Imbert, a lead researcher from the French agricultural research centre CIRAD, said SA’s citrus industry had the potential to rise to the current challenging trading environment.
“SA has a diversified market, innovative research capability, a large and fast evolving variety range, and a strong industry organisation with significant capacity.”
The Herald
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.