South Africa citrus prospects

Like Australia, South Africa has also been hit by a drought that has limited its citrus potential. Here is the USDA Foreign Agricultural Service assessment of South Africa's citrus outlook:


South Africa’s is expected citrus 2006/07 fruit production to decrease by 5.7 percent from last year to 1.65 million MT because of the carry-over effect of the drought in 2006. However, the 2007/8, production will increase to return to a more average volume . In 2006/07, South Africa’s local consumption for fresh citrus products is expected to increase by 19 percent as farmers are increasing their volume for sale in the local markets to overcome expected lower export prices. Exports are expected to decrease by 16 percent to total 1.10 million MT, due to lower total production and increase intent of growers to sell to the local market. The producers are uncertain about the export prices, and speculate about general improved export prices because of Spain’s lower total production and late harvest caused by heavy rains. Also, they are challenged by potential lower prices as posed by the Middle East and Europe’s- high stock volumes. In a Citrus Forum meeting held on October 23, 2007, stakeholders raised concerns about future shipping problems and congestions at the harbors because of increasing export volumes and unchanging capacity of local harbors. Quality standards will be prioritized to prepare for new markets like Russia and China. Market access issues experienced by South African citrus farmers in 2007 were barriers to trade such as high import tariffs to Iran South Korea and India markets, and SPS issues - The South African government received 18 citrus blackspot (CBS) disease reports from the EU in October this year.


On the future changes to the citrus industry in South Africa:

The South African citrus industry indicates that they are challenged by the current regulatory framework, especially the land policy, which is expected to transfer about 30 percent of farm land to the previously disadvantaged black farmers by 2015. The government received a total 79,696 land claims. The implementation of this new strategy already translated in about 1,465 land claims (96 percent) processed in 2006. From the 6,986 outstanding claims outstanding, 86 percent is agricultural land. A Majority of the citrus producing land are under the claims, which constrain farmers to invest on the land, considering that it takes a fruit tree about 15 to 30 years to mature and produce a crop.