CGA to tackle industry challenges at upcoming Citrus Summit

SOUTH AFRICA – The Citrus Growers’ Association of Southern Africa (CGA) will host the fifth Citrus Summit from March 11 to 13 in Gqeberha, bringing together industry leaders, government representatives, and key stakeholders to address pressing challenges threatening the industry’s future growth.

The CGA hosts the Citrus Summit biennially, alternating with the CGA Regional Roadshow every other year. The 2023 Citrus Summit was held in Gqeberha and opened by then Minister of Agriculture, Thokozile Didiza.

The summit serves as a platform for citrus growers to discuss common interests and find sustainable solutions to industry challenges in collaboration with government and other stakeholders.

The upcoming 2025 Citrus Summit will continue this tradition, focusing on addressing pressing challenges and ensuring the future growth of the citrus industry.

In his latest business report, outgoing CGA CEO Justin Chadwick emphasizes the importance of this gathering. “The Citrus Summit will be a decisive moment for South Africa’s citrus industry,” he states, highlighting the need for urgent discussions on logistics and market access.

Chadwick’s report details how citrus remains South Africa’s largest agricultural export sector, supporting 140,000 jobs at farm level. In 2023, the industry packed 164.5 million 15kg cartons for export markets, with production expected to increase significantly. However, he warns that logistics issues pose a serious threat to sustaining this growth.

Citing a study by the Bureau for Food and Agricultural Policy (BFAP), Chadwick notes that inefficiencies in logistics cost the industry R5.27 billion (US$284.58 million) in the 2024 season alone.

He highlights port congestion and delays as major concerns, stating, “South Africa’s ports must improve efficiency if we want to sustain citrus exports and support job creation. Investment in infrastructure, better cold chain management, and streamlined port operations are essential.”

Public-private partnerships, as emphasized by President Cyril Ramaphosa, are seen as key to improving port operations. However, Chadwick points out that legal disputes, such as those affecting the Durban Pier 2 container terminal, have delayed necessary reforms.

The report further highlights the importance of rail transport in alleviating pressure on roads. Currently, over 90% of citrus shipments rely on road transport, an increasingly costly and inefficient method. “If we do not expand rail capacity, we will soon be overwhelmed. By 2027, weekly citrus truck trips from northern regions will surge from 2,200 to over 3,800,” Chadwick warns.

Market access: A key priority

The business report also und market access as a major factor in ensuring the industry’s sustainability. Chadwick explains that the European Union (EU), which accounts for more than one-third of South Africa’s citrus exports, has introduced trade restrictions that the government is now challenging at the World Trade Organization.

“A resolution ensuring fair and scientific plant health measures could immediately boost our industry,” he asserts.

China’s demand for South African citrus presents another opportunity, with 180,000 tonnes currently exported there each year.

However, Chadwick notes that high tariffs place South African exporters at a disadvantage against competitors benefiting from preferential trade agreements. He stresses the need for negotiations to level the playing field.

India also holds potential, with citrus exports to the country nearly tripling to 30,000 tonnes since 2020. Yet, Chadwick identifies significant obstacles, including high import tariffs and cold treatment regulations.

“If the Indian government approves in-transit cold treatment, many growers will see immediate benefits. Additionally, addressing the 30% import tariff would strengthen trade in the long run,” he explains.

Chadwick’s report further highlights the African Growth and Opportunity Act (AGOA) as crucial for maintaining access to the U.S. market. He points out that while citrus from the Western and Northern Cape is currently exported to the U.S., restrictions prevent other provinces from participating.

“If the U.S. expands market access, it could significantly stimulate rural economies and meet growing American demand,” he states.

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