LEMON producers in the country are on tenterhooks over an impeding decision by the US International Trade Commission (ITC) on whether South Africa is dumping lemons in that country, which may effectively close off a viable market for the local industry.
While there are various products including lemon juice concentrates, cosmetics, cleaning material and others that could be produced from local harvest, the fresh lemon market in the US is a mainstay for local producers and would lead to a glut, if South Africa is closed off.
“We are in the phase of a preliminary determination stage … It is actually impossible to predict which way the decision will go, and we have put in a strong case at the oral hearing,” SA Juice Association general manager Rudi Richards said.
A US citrus juice-maker, Ventura Coastal, has filed a petition with the US ITC, requesting that the US government impose anti-dumping duties on lemon juice from South Africa and Brazil.
It alleges that lemon juice from South Africa and Brazil is sold at less than fair value in the US. Should the petition succeed and anti-dumping tariffs be imposed, South Africa’s juice processors will be left with a lemon juice glut.
According to the Citrus Growers’ Association,growers exported 161.6 million cartons of fruit in 2021, increasing by 18.6 million cartons from the prior year. Specifically, export volumes of lemons increased by 5 percent, with 29.7 million cartons shipped.
Of the 2.8 million tons of citrus produced in the country, 20 percent or more than 554 000 tons get processed.
Richards said there was currently an oversupply of fresh lemons in the market, with Argentina and Mexico pushing up the volumes.
South Africa and Brazil are in the cross-hairs of the investigation that seeks to establish if the produce from these to countries poses any threat to the US industry.
Richards said the chances of beneficiating the fruit were not on the table for local producers.
“It does not work that way, the growth of lemon products is driven by the export market, it is not driven by the lemon juice concentrates,” she said.
A decision is due to be made in February by the US International Trade Commission.
BUSINESS REPORT ONLINE