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Wednesday, August 17, 2022

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SA and Brazil found guilty of dumping lemon juice – ITA

Cape Rough lemons have been in South Africa for over 400 years.

Cape Rough lemons have been in South Africa for over 400 years.

Published Aug 2, 2022

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The International Trade Administration (ITA) of the US government has made preliminary determinations that South Africa and Brazil were guilty of dumping lemon juice concentrates in that market.

In a notice published yesterday, ITA found that South Africa’s Cape Fruit Processors had a dumping rate of 55.67 percent, Polokwane-based Granor Passi had 74.04 percent, while those in the category of Other had 55.67 percent.

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Brazil’s Louis Dreyfus Sucos was found to have a dumping rate of 4.45 percent, Citrus Juice Eirelli had 21.49 percent and Other had 12.97 percent.

According to the US information, South Africa’s lemon juice concentrate exports were 7.4 million litres in 2019, 18.7 million litres in 2020, and 29.7 million litres in 2021.

The South African Fruit Juice Association (Safja) said yesterday it was still to study the report and would deliberate on the sanction and further action for the industry.

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The investigation comes after Ventura Coastal, an American fruit juice producer, in December filed an anti-dumping application against lemon juice from South Africa and Brazil, with the International Trade Commission.

Ventura Coastal has requested a 128.61 percent anti-dumping duty against exports of lemon juice from South Africa and 555.22 percent against Brazil.

The UA is South Africa’s largest market for lemon juice concentrate, and accounted for $11.2 million (R179m) in 2021.

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The industry fears that if duties are imposed, the excess volumes will have to move to smaller markets, further suppressing the prices and increasing the probability of anti-dumping actions in those markets as well.

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