Southern African citrus growers packed 164.5 million 15kg cartons for delivery to global markets in this year’s export season.
Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa (CGA), yesterday said while this was 600 000 cartons less than last year, the slight decline was still a strong performance for the sector given the truly uniquely demanding circumstances growers faced.
“A number of unforeseen factors forced the CGA to adjust its export estimates regularly during the year. The initial estimate for total exports was 181.7 million 15kg cartons. The final figure falls 9% short of this,” Chadwick said.
One of the most prominent factors affecting export volumes was the high price offered for oranges destined for local processing.
Precious Kunota, business intelligence and data manager at the CGA, said sources in the juice industry reported a significant increase of between 60% to 80% in volumes of oranges processed at their facilities, compared to the 2023 season.
“It is estimated that about 6 million 15kg cartons of oranges - that is 7% - destined for exports were diverted to juice plants,” Kunota said.
Another factor was the abnormally hot and dry conditions during the mid to late summer period, which led to smaller fruit sizes. This meant that approximately 4% more fruit were required to fill the same carton than in the previous year.
No less than three severe weather events also had an impact on exports.
Freezing temperatures in Limpopo, floods in the Western Cape (Citrusdal), and strong winds that caused fruit to drop in the Eastern Cape resulted in a reduction of fruit packed for global markets.
CGA said even though export numbers had declined slightly from last year, the amount of citrus being produced in South Africa continued to increase.
It said it is estimated that in total 10.1 million cartons were diverted to local juicing and lost to weather events. Considering this, the CGA was confident that its long-term growth target of exporting 260 million cartons and creating 100 000 jobs by 2032 was achievable if all role-players come together.
Chadwick said port efficiency remained a serious concern for the citrus industry during the past season. The lower-than-expected citrus export volumes reduced peak volumes at ports dramatically, which eased pressure on the container terminals.
“However, all indications are that this is just a temporary reprieve in pressure on our underperforming ports and will not last,” he said.
“Volumes will increase over the next few seasons and if ports are not improved and capable of handling it, citrus exports and the wider economy will suffer greatly.”
Mitchell Brooke, the CGA’s logistics development manager said they were of the strong opinion that more public-private partnerships were needed urgently.
“Although the partnership between Transnet and International Container Terminal Services Inc. (ICTSI) on Durban Pier 2 has been delayed because of legal matters, there must be a renewed urgency to improve container terminals and unlock the economic potential of our ports,” Brooke said.
CGA also said the European Union’s unscientific and unnecessarily restrictive trade measures on Citrus Black Spot (CBS) and False Coddling Moth (FCM) continued to have a dampening effect on exports.
It said these measures still represent an entire opportunity cost for local growers of R3.7 billion. South Africa’s historic cases against these measures at the World Trade Organisation are making progress and are set to enter the next phase in the dispute process in mid-December.
BUSINESS REPORT