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Citrus growers plead with Ramaphosa as US tariff D-Day nears

The association fears hundreds of thousands of cartons of this season's fresh produce will go to waste, bringing the industry to its knees

Picture: GALLO IMAGES
Picture: GALLO IMAGES

With just days remaining before the US enforces a steep 30% tariff on SA imports, the Citrus Growers’ Association of Southern Africa (CGA) has appealed to President Cyril Ramaphosa to intervene, warning of devastating consequences for rural communities in the Northern and Western Cape.

“This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7-million cartons to the US,” CGA CEO Boitshoko Ntshabele said.

Citrus destined for the US is grown in the Northern and Western Cape, where growers’ livelihoods depend heavily on trade between SA and the US, the CGA said in a statement.

In a letter addressed to the presidency, the CGA asked for immediate diplomatic engagement with US authorities to secure an extension of the current 10% tariff, which is set to expire on August 1. The CGA requested that, if a general extension were not possible, the government should urgently pursue a specific exemption for seasonal fresh produce.

“Seasonal fresh produce is perishable and cannot be stored for extended periods, like other trade products. The midpoint of the 2025 export season has just been passed, which means hundreds of thousands of cartons of citrus are ready in pack houses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on August 1 will mean most of this fruit will be left unsold,” the CGA said.

SA citrus enters the US market during the northern hemisphere’s off-season, complementing — not competing with — local production.

“Should we not be able to secure a favourable trade deal, or the concession for fresh produce, local job losses before the next season will be a certainty,” Ntshabele said. These could lead to economic collapse in Citrusdal and the wider Cederberg area.

“Citrus forms the economic heart of the area,” said CGA chair and local farmer Gerrit van der Merwe. “Not just farmers and farm workers will feel the impact, but local businesses and even funding for social support programmes will be affected as well.”

While efforts are under way to diversify export markets, the CGA cautioned against viewing this as a quick solution.

“Citrus is grown for designated markets, each with their own precise market and plant health specifications. Therefore, it is not easy to simply divert citrus from the US and find a new market. Should some citrus be diverted away from the US, the diversion could very well depress the price in these markets through oversupply, negatively impacting the entire Southern African citrus industry.”

SA agriculture did not deserve this treatment. We do not dump, we do not distort, and we do not play geopolitical games with food.

—  John Steenhuisen, minister of agriculture

The association underscored the sector’s growth potential, noting it could add 100,000 new jobs by 2032.

At an RSA Group stakeholder dinner on Thursday, agriculture minister John Steenhuisen called the looming tariffs “a deeply troubling development, and one that we have not taken lightly”.

He said that although the African Growth and Opportunity Act (Agoa) preferences remained in place on paper, the imposition of tariffs effectively stripped the agreement of any practical benefit.

“Let me be clear: SA agriculture did not deserve this treatment. We do not dump, we do not distort and we do not play geopolitical games with food.”

Steenhuisen said his department was working “hand in hand” with the department of trade, industry & competition in its formal engagement with the US, “to ensure that the full impact on the agricultural sector is well understood”.

He said the country is supporting proposals for tariff exemptions during off-season export windows and is exploring transitional trade mechanisms such as limited-duty quotas and, where feasible, reciprocal access to the SA market for US produce. He added that they were also strengthening international alliances.

“Through the Southern Hemisphere Association of Fresh Fruit Exporters, we are working with peer countries like Chile, Peru and New Zealand to jointly lobby for fair and stable trade treatment of fresh produce.”

marxj@businesslive.co.za

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