A challenging 2024 season highlights local market growth, logistical hurdles, and a push for industry-wide resilience in the African citrus sector.
The 2024 citrus season brought significant challenges for Southern Africa’s citrus industry, marked by a decline in export volumes. Shifting local demand, rising input costs, and logistical disruptions combined to reshape the outlook for one of the region’s most valuable agricultural sectors. As the industry assesses its performance, stakeholders are grappling with complex market dynamics while exploring opportunities for recovery and growth.
Local Demand Drives Market Shift
A notable factor influencing the citrus export decline is the rising demand within domestic markets. Consumers in Southern Africa are increasingly opting for local produce, driven by improved access and competitive pricing. While this shift supports local economies and reduces reliance on foreign markets, it has also decreased the volume of citrus available for export, contributing to an overall reduction in global trade figures for the sector.
A key factor impacting export volumes was the attractive prices offered for oranges intended for local processing. Precious Kunota, Business Intelligence & Data Manager at Citrus Growers Association of Southern Africa (CGA), explains, “Sources in the juice industry reported a significant increase of between 60% to 80% in volumes of oranges processed at their facilities, compared to the 2023 season. It’s estimated that about 6 million 15kg cartons of oranges.”
According to the CGA, the season’s figures were as follows:
- 14.3 million cartons (15kg equivalent) of Grapefruit were packed for export. This is 300,000 less than in the 2023 season and a 14% shortfall from the initial estimates made in April 2024.
- 41.6 million cartons of Mandarins were packed, representing a notable 3.6 million increase since the previous season. This is 3% less than the initial estimate.
- Lemons showed a decrease compared to both the previous season and the estimate: 34.7 million cartons of lemons were packed in 2024, being 9% down from the estimate and 1.1 million cartons down from 2023.
- Navel Oranges packed for export have shown an increase of 400,000 cartons compared to 2023. This year 25.1 million cartons of Navels were packed, a 2% decrease from the original estimate.
- A total of 48.7 million cartons of Valencia Oranges were packed this year. Notably, this is 4.7 million less than in the 2023 season and is a significant 16% shortfall from the initial estimates.
Logistical and Trade Hurdles Persist
Global trade challenges have compounded the pressures on Southern Africa’s citrus industry. High freight costs and a shortage of shipping containers have disrupted supply chains, making it difficult for exporters to reach international markets efficiently.
Port efficiency remained a serious concern for the citrus industry during the past season. “The lower-than-expected citrus export volumes reduced peak volumes at ports dramatically, which eased pressure on the container terminals. However, all indications are that this is just a temporary reprieve in pressure on our underperforming ports and will not last,” the CGA noted.
Mitchell Brooke, the CGA’s logistics development manager, commented, “The CGA is of the strong opinion that more public-private partnerships are needed urgently. Although the partnership between Transnet and International Container Terminal Services Inc. (ICTSI) on Durban Pier 2 has been delayed because of legal matters, there must be a renewed urgency to improve container terminals and unlock the economic potential of our ports”.
Additionally, regulatory constraints in key markets such as the European Union have added further strain, with complex compliance requirements limiting export opportunities for some producers. According to the CGA, the EU’s unnecessarily restrictive trade measures on Citrus Black Spot (CBS) and False Coddling Moth (FCM) continued to have a dampening effect on exports.
Rising Costs and Industry Resilience
The cost of production continues to rise, driven by escalating fuel prices, labor costs, and the effects of climate change on farming practices. These pressures have squeezed profit margins, particularly for smaller growers, raising concerns about the long-term sustainability of the industry. Despite these hurdles, the sector remains a critical contributor to the Southern African economy, supporting thousands of jobs and driving agricultural innovation.
Pathways to Recovery and Growth
To navigate these challenges, industry leaders are calling for collaborative solutions. Investments in infrastructure, such as cold storage facilities and efficient transportation networks, are seen as key to enhancing the region’s competitiveness. Additionally, efforts to diversify export markets, including exploring opportunities in Asia and the Middle East, are gaining momentum. By adapting to changing market conditions and leveraging local strengths, the Southern African citrus industry aims to build resilience and maintain its position as a global citrus powerhouse.
The 2024 African citrus season underscores the complexities of balancing local demand with export ambitions amid a rapidly evolving trade landscape. While the challenges are significant, the commitment of industry stakeholders to innovation and collaboration offers a path forward for one of Southern Africa’s most vital agricultural sectors.
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