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South Africa’s citrus sector is currently facing a lot of challenges, according to Nico Groenewald, the Head of Agriculture (SA) at Standard Bank on account of global supply chain disruptions and market volatility, domestic logistics decay, and increased shipping costs
South Africa’s citrus sector is currently facing a lot of challenges, according to Nico Groenewald, the Head of Agriculture (SA) at Standard Bank on account of global supply chain disruptions and market volatility, domestic logistics decay, and increased shipping costs. Apart from these, there are energy constraints, phytosanitary challenges, oversupply, and climate impacts, the Bank official said.
Over the past decade, South Africa’s citrus industry expanded exponentially. The acreage under cultivation increased from 60 355 in 2012 to 99 697 hectares last year. It also added new cultivars, modernizing practices, and technologies. Its export outlets also increased considerably.
South Africa is the world’s second-largest exporter of citrus after Spain. The annual Citrus Growers’ Association of Southern Africa Summit held this year, presented an important platform for the growers on which to unite as a community, take stock, and focus on understanding how to ensure financial sustainability by building balance sheet resilience in tough times.
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Citrus exports are expected to grow by 10 million (15kg) cartons per year for the next decade, hitting 260 million cartons by 2032. Currently, the sector sustains 140 000 jobs and brings in R30 billion in export revenue annually. The industry could potentially sustain a further 100 000 jobs and generate an additional R20 billion in annual revenue if the 10-year, 260 million carton projection is achieved.
