Banele Ginidza

The Citrus Growers' Association of Southern Africa (CGA) has made a fervent plea to the South African government, urging it to engage in immediate negotiations with the United States regarding potential tariff reductions or exemptions on citrus exports.

This call to action comes as South African citrus producers brace for the implementation of a hefty additional 31% tariff on their exports to the US, coinciding with the arrival of early-season citrus intended for the American market.

About 35 000 jobs are connected to SA-US citrus exports in one way or another.

CEO of the CGA, Boitshoko Ntshabele, on Tueaday said increases in exports to the US was one of the cornerstones of the CGA's target to create 100 000 additional jobs by 2032.

"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," Ntshabele said.

"The SA 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."

The CGA said the additional 30% tariff would place an additional $4.25 per carton on SA citrus in the US, making South African citrus uncompetitive especially since only the baseline US tariff of 10% will be levied on South Africa's citrus competitors, who are mostly situated in South America.

"Citrus should be 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," said Gerrit van der Merwe, chairperson of the CGA.

Van der Merwe, said while South Africa only exports about 5% - 6% of its citrus to the US, many rural communities in the Western and Northern Cape are heavily dependent on US exports, citing Citrusdal, where exports to the US form the economic heart of the town.

"The severity and immediate nature of the impending tariffs could mean that towns like it now face either increased unemployment or maybe even total economic collapse. There is immense anxiety in our communities," said Van der Merwe, who is also a citrus grower in the Olifants River Valley.

Meanwhile, Ntshabele said there were clear and convincing arguments for the SA government to act swiftly and decisively to safeguard citrus.

"Citrus is not produced in a factory. SA 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 it over at the end of our season," he said.

"Citrus also plays an important role in the healthy diet of Americans. Tariffs on seasonal fresh produce will most likely increase prices for the American consumer," Ntshabele said.

The CGA said US demand for SA's citrus has increased steadily since 2017 with the amount of citrus exported almost doubling since then to over 6.5 million cartons with an estimated 20 000 jobs up and down the supply chain in the US are linked to US-SA citrus trade.

It said although only citrus from the Western and Northern Cape were exported to the US because of outdated phytosanitary (plant health) rules, extreme urgency is needed to address the situation, because, when the tariffs come into effect, large amounts of the citrus destined for the US will be redirected to other markets.

This, the CGA said, 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, we already face very steep tariffs with exports to promising markets like India and China," Ntshabele said.

"We appreciate the government's announcement that it will intensify efforts to diversify export destinations - targeting Asia, Europe, the Middle East, to name a few - but we need to retain current markets as well, as our citrus production is projected to increase substantially in the next few years."

BUSINESS REPORT

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Citrus growers in South Africa call for urgent tariff negotiations with US