CGA urge Steenhuisen to make citrus growth a priority in budget

By Maile Matsimela

In the build-up to the Agriculture Budget Vote Debate tomorrow, Tuesday 8 July, the Citrus Growers’ Association of Southern Africa (CGA) has outlined key priorities that will help the citrus industry grow and export a total of 260 million 15kg cartons in 2032. These priorities, they said, are improved market access, ever-vigilant biosecurity and improved logistics.

In the delivery of the Budget Vote Address by the Minister of Agriculture, John Steenhuisen, and the budget vote debate that follows it, the CGA said it hopes to see urgent and shared concern about facilitating agricultural growth.

Record Export Season Drives Economic Growth

“This year’s citrus export season is now at its peak. Projections are that it will be another record year, with just over 171 million 15kg cartons of citrus expected to be exported by the end of October,” said Dr Boitshoko Ntshabele, Chief Executive Officer of the CGA. “But in the current uncertain trade environment and considering the economic pressures many of our growers experience, continued growth in our sector should not be taken for granted. It requires constant action from a range of role-players.”

Citrus is South Africa’s largest agricultural export industry, contributing R34 billion in foreign revenue per season. The association says with a massive increase in citrus production projected for the next few years, a key priority should be improved market access for our fruit.

Market Access: The Key to Unlocking Job Creation

The association argues that without improved access in all markets, and opening new markets, the increase in citrus production cannot be channelled into new jobs. “Uncertainty regarding US import tariffs is causing anxiety as growers are increasingly unable to plan for the full season. Securing favourable access to the US market should be a priority and so should improving access to China and India – two countries currently imposing tariffs on South African citrus.

“The US, Chinese and Indian markets offer immense promise for growth in the future. One must remember, as a rule of thumb, every 10 million cartons of citrus that South Africa exports create close to 10 000 jobs, changing lives in rural towns like Letsitele, Addo and Citrusdal,” said Gerrit van der Merwe, Chairperson of the CGA.

EU Market Challenges: Fighting Unscientific Trade Measures

According to GCA access to the citrus industry’s largest export market, the European Union (EU), can also be improved considerably through the favourable conclusion of the current World Trade Organisation disputes on the EU’s unscientific and unnecessary trade measures on citrus black spot (CBS) and false coddling moth (FCM).

The CGA hopes to continue working closely with the Department of Agriculture, the Department of International Relations and Cooperation, as well as the Department of Trade, Industry and Competition on all the above market access issues.

Biosecurity: Protecting South Africa’s Agricultural Future

The CGA says it welcomes Minister Steenhuisen’s recent remarks on the importance of biosecurity to South Africa’s economic and social welfare. The CGA looks forward to his continued leadership in this important matter. “The international citrus trade is dependent on robust procedures, inspections and rapid response plans. Ever-improving plant health vigilance can prevent biosecurity crises similar to some we have recently seen in other industries,” said Dr Ntshabele.

Logistics Crisis: The Urgent Need for Infrastructure Reform

Ntshabele highlighted the need for decision-makers to urgently accelerate logistics reforms. Central to agricultural growth is the ability to move produce to foreign markets in a reliable and timely way.

Paul Hardman, the Chief Operating Officer of the CGA, said: “While we have seen some improved port efficiency, and there has been no significant delays so far this season, the only long-term solution to the highly unpredictable logistics landscape in South Africa is increased private sector participation. These projects must be facilitated at a much faster pace if more citrus is to be exported in the next few years. There will be no real growth in export agriculture without structural reforms at the ports and on the rail network. We hope the Department of Agriculture and the Department of Transport remain aligned on this crucial issue.”

Dr Ntshabele concluded: “In times of economic pressure, what remains vital is cooperation and the realisation of mutual benefit – whether it is between trading partners, the public and private sectors, or government departments. We trust the priorities set out during the Agriculture Budget Debate tomorrow will take into account what is required for our industry to contribute substantially to job creation in South Africa.”