The profitability and sustainability of South Africa’s citrus industry continues to be compromised and this could potentially limit further investments, the National Agricultural Marketing Council (Namc) warned yesterday.
The sector faces headwinds of escalating input prices, such as fuel and fertiliser, soaring shipping costs as well as operational challenges involving the ports.
Namc, in its Fruit Trade Flow Report September 2022, released on a quarterly basis by the trade unit of the Markets and Economic Research Centre, said if the sustainability of the citrus industry was threatened, it could prevent new entrants in the value chain – especially the emerging farmers – from playing a significant role in the industry.
The report was compiled by Cindy Chokoe, Onele Tshitiza, Khodani Madula, Moses Lubinga, Bhekani Zondo and Sifiso Ntombela. They said in addition to the prohibitive measures imposed by the European Union market, which is the major export destination for South Africa’s citrus, there was a need for the industry in partnership with the government to invest more in research and development (R&D) of cold sterilisation innovations, and the breeding of cultivars resistant to pests and diseases of concern in existing and potential export markets.
Beyond the R&D, it said that there was a need to render the technologies more affordable and easily accessible to both producers and traders.
The report also said that industry role-players should consider investing in the establishment of new markets other than focusing more on the EU through market diversification.
South Africa pome fruit production estimates South Africa’s production was expected to rise for a fourth consecutive year to a record 1.16 million tonnes. Volumes were up as new trees were coming into production and sufficient water for irrigation, combined with good growing conditions throughout the year, were leading to higher output.
Apples were the major deciduous fruit planted in South Africa and represent more than a third of the total deciduous fruit area. South Africa’s apple production area in 2021-2022 was measured at 25 000 hectares, which was 1% above last year.
Moreover, Namc said South African pear production could increase by 7% to reach a record level of 510 000 tonnes in the 2021/22 season compared to 475 000 tonnes produced in 2020/21.
South Africa is one of the major players in the global fruit arena. South Africa’s exports of apples account for about 48% of total production, while pears account for 50% of production.
The country’s pome fruits exports were expected to perform well, with apples predicted to increase by 1% and pears by 13%, attributed to young orchards coming into production and favourable weather conditions. Exports of apples would increase from 44.7 million cartons to 45.4 million cartons (1 carton = 12.5kg), while pear exports would increase from 18.4 million cartons to 20.8 million cartons.
Meanwhile, South Africa’s citrus exports were expected to grow by 3% this year, and could reach 166.1 million cartons (a carton is equivalent to 15kg).
This increase of almost 5 million cartons compared to last year was said to confirm the strong development of South African citrus industry exports, which have also grown by 29% from 2020 to this year. This performance was attributed to the continued growth of orchards in new areas and cultivation of better yielding and early maturing varieties.
The authors of the report said that although the country was set to increase its citrus exports, the industry had been riddled with export market challenges, including the EU enforcing cold treatment to citrus due to concerns of the false codling moth.
They added that Europe remained the largest market for grapefruit and lemons and the industry had over the years made efforts to diversify its markets.
They added that South Africa was gaining ground in the Middle East for lemons as well as South East Asia for grapefruit and diversification would become more important as the EU imposed more stringent sanitary and phytosanitary (SPS) measures.
“The government and industry will also need to maintain good relations with existing markets by adhering to SPS measures, and this will need investment in inspection services in the country,” the report said.
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