By Maile Matsimela
This week, South African growers will begin packing the first citrus fruit destined for the US market. And, from Wednesday, 9 April, a new 31% tariff on South African citrus exports to the US is set to take effect.
The Citrus Growers’ Association of Southern Africa (CGA) warns that the increased tariff will hurt citrus farmers and the rural communities that rely on them. The CGA is urging the South African government to prioritise urgent negotiations with the US to secure tariff reductions or exemptions. Without swift action, the industry – South Africa’s largest agricultural export sector – faces the risk of job losses and reduced revenue.
“While South Africa exports only about 5% to 6% of our citrus to the US, many rural communities in the Western and Northern Cape are heavily dependent on US exports,” says Gerrit van der Merwe, a citrus grower in the Olifants River Valley and the chairperson of the CGA. “A prime example is Citrusdal, where exports to the US form the economic heart of this vibrant town. The severity and immediate nature of the impending tariff could mean that towns like it now face either increased unemployment or maybe even total economic collapse. There is immense anxiety in our communities.”
He says about 35 000 jobs are linked in some way to South Africa’s citrus exports to the United States.
The additional 31% tariff will render South African citrus uncompetitive in the US market, Van der Merve says, especially since competitors – mainly from South America – will continue to pay only the base tariff of 10%. The new 31% tariff will add $4,25 per carton to the cost of South African citrus in the US.
Dr Boitshoko Ntshabele, CEO of the CGA, says there are clear and compelling reasons for the South African government to act swiftly and decisively to protect the citrus industry.
“Citrus is not produced in a factory. South African citrus growers do not compete with US citrus growers. In fact, quite the opposite. Our high-quality produce sustains consumer interest when US local citrus is out of season, eventually benefitting US growers when we hand over at the end of our season.”
Dr Ntshabele adds that citrus plays an important role in promoting a healthy diet for American consumers, and tariffs on seasonal fresh produce like citrus are likely to push up prices for the American consumer.
Van der Merve says citrus should be included on the White House’s exemption list. “It is seasonal, and it supports both US health and the US citrus industry, while it helps to keep food inflation down.”
The CGA points to the growing US demand for South African citrus, evident in the sharp increase in exports since 2017. Exports have nearly doubled over this period, reaching more than 6,5 million cartons. It is also estimated that 20 000 jobs across the US supply chain are tied to the US–South Africa citrus trade.
Urgent action required
“Although only citrus from the Western and Northern Cape are exported to the US because of outdated phytosanitary [plant health] regulations, extreme urgency is needed to address the situation,” Dr Ntshabele says. “When the tariffs come into effect, large amounts of the citrus destined for the US will be redirected to other markets. This could destabilise these markets, with a knock-on effect on the entire Southern African citrus industry. The US volumes cannot be easily absorbed elsewhere at such short notice.”
He adds that South Africa already faces very steep tariffs on exports to promising markets like India and China.
The CGA, he says, appreciates government’s announcement that it will intensify efforts to diversify export destinations – targeting Asia, Europe and the Middle East, among others – but current markets need to be maintained as well, as our citrus production is projected to increase substantially in the next few years.
An increase in exports to the US was one of the cornerstones of the CGA’s target to create 100 000 additional jobs by 2032, Dr Ntshabele says. “We are now looking at a potential situation wherein not only will we be facing job losses, but we also lose the potential of serious job growth – a double tragedy. The South African government should urgently work towards a new trade agreement with the US, but such agreements can take years, and we do not currently have the time. The 2025 season has already arrived, and the produce is making its way to the ports.”
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