Business Day Live
by Agency Staff, March 11 2016
SA’s worst drought in a century will reduce the citrus harvest this year and result in smaller-sized oranges that are harder to sell, according to an industry body.
Production of navel oranges and soft-citrus fruits from the Western Cape is forecast to record a “slight reduction,” Justin Chadwick, CEO of the Citrus Growers’ Association, said on Thursday.
“We anticipate a reduction in our export volumes because of the drought conditions and extreme heat,” Mr Chadwick said. “The big concern now is we have small amounts of small fruit and a lot of markets don’t like small fruit. They like big fruit.”
SA vies with Egypt to be the world’s largest exporter of oranges, according to the US Department of Agriculture, and the local industry employs an estimated 100,000 people. Exports account for 80% of the industry’s R9.4bn in annual revenue. The nation last year suffered its lowest rainfall since records began in 1904, cutting output of crops such as grains, wine grapes and peanuts.
The country exported 1.77-million tonnes of citrus fruit last year. Mr Chadwick did not give a specific forecast of sales or production for this year.
SA has applied to the US Department of Agriculture to allow the sale of citrus products from all regions, not just the Northern Cape and Western Cape currently, according to Mr Chadwick. The process has been pending for the past 10 months, he said.
The Eastern Cape is the nation’s biggest producer of lemons, accounting for 50% of total output, Mr Chadwick said. The region had experienced good rains toward the end of last year, filling dams sufficiently for irrigation farming. Fruit coming from that area has helped supplement other parts.
Limpopo has the largest area under citrus cultivation, with 42% of the 64,510ha planted, according to the annual report.
“We have an application in for access for the rest of SA,” he said. “Because of the impasse of Agoa, that application has stalled,” referring to the African Growth and Opportunity Act, a US programme to help African exporters.
SA has been under pressure to reach an agreement with the US to open its market to American meat in order to retain tariff-free access under Agoa. Containers with US chicken leg quarters and drumsticks from Tyson Foods and House of Raeford Farms arrived in the port of Durban on February 19, the first shipments since 2000.