South Africa’s citrus exporters, whose fight with the EU resumes at the World Trade Organisation (WTO) next month, say the bloc’s phytosanitary regulations cost them R3.7bn in the latest crop year.
The Citrus Growers Association (CGA) accused the EU of imposing “unscientific and unnecessarily restrictive” measures to prevent contamination by citrus black spot and false coddling moth, which reduced citrus exports to the bloc.
CGA logistics development manager Mitchell Brooke said the measures represent an opportunity cost for local growers of R3.7bn.
South Africa lodged cases against the EU’s phytosanitary measures at the WTO earlier this year, with the next phase in the dispute process set to commence in the middle of next month.
Black spot is caused by the fungus Phyllosticta citricarpa. The spots are unsightly but are not a health risk and do not affect the taste of fruit. False coddling moth is a native South African pest that attacks crops and fruit including citrus and avocados.
The CGA was forced to adjust its export estimates regularly during the year from an initial total estimate of 181.7-million 15kg cartons, with the final figure being 9% below that.
In the 2024 export season, Southern African citrus growers packed 164.5-million 15kg cartons for delivery to global markets, 600,000 fewer than the previous year. The CGA said despite the slight decline — of about 0.36% — it was a strong performance for the sector.
Although there has been progress in improving market access - such as recently with a new protocol signed with Vietnam - if the EU market narrows significantly, its volumes simply cannot be absorbed by other countries
— DTIC
Speaking to Business Day last week, minister of agriculture John Steenhuisen said South Africa should boost efforts to find new markets.
“Europe is our largest market but looking at existing trade agreements, we need to find ways to deepen and widen them. We need to expand our citrus and beef export potential, and why is China buying so much of its wine from Australia and France? We should be exporting apples to India, and in the Middle East there is huge demand for South Africa’s agricultural products. Lamb alone is massive.”
Steenhuisen previously told Business Times that the EU is applying the measures around black spot and false coddling moth in an inconsistent, discriminatory way.
“Other countries which are exporting citrus into the EU are not subject to the same restrictions and barriers. Despite a signed agreement in place with the EU on the application of sanitary and phytosanitary measures, the EU is not acting in accordance with said agreement.”
The department of trade, industry & competition told Business Times that the EU market was extremely important to local citrus farmers, accounting for 33% of the country’s citrus exports.
“Thus over 800,000t of citrus are exported to the EU market. Other big export markets include the Middle East at 19%, Southeast Asia at 13% and the UK at 9%,” the DTIC said in an e-mail.
“Although there has been progress in improving market access — such as recently with a new protocol signed with Vietnam — if the EU market narrows significantly, its volumes simply cannot be absorbed by other countries. South Africa continues to diversify markets given the importance of the citrus industry.”
CGA business intelligence and data manager Precious Kunota said a key factor affecting export volumes was the high price offered for oranges destined for local processing.
“Sources in the juice industry reported a significant increase of between 60% and 80% in volumes of oranges processed at their facilities, compared to the 2023 season. It’s estimated that about 6-million 15kg cartons of oranges — that is 7% — destined for exports were diverted to juice plants.”
Even though export numbers declined from 2023, citrus production is rising. The CGA said its long-term growth target of exporting 260-million cartons and creating 100,000 jobs by 2032 remains achievable.
Brooke said that to boost citrus exports, South Africa also needed to make faster progress in eliminating logistics backlogs by “urgently” initiating more public-private partnerships.
“Although the partnership between Transnet and [Philippines-based] International Container Terminal Services 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,” he said.
