Citrus Industry Turns to G20 Amid US Uncertainties

By Diane Silcock

SOUTH AFRICA’S citrus industry faces a significant challenge amid ongoing US tariffs, yet there is optimism that hosting the G20 summit may help alleviate some of this pressure. As the second-largest exporter of citrus globally, the country generates around R34 billion in foreign revenue each season.

The Citrus Growers’ Association (CGA) views this situation as a chance to use the G20 platform for promoting diplomatic efforts aimed at improving market access for South Africa’s fresh produce. They believe this moment can be pivotal for the industry.

CGA Advocates for Collaboration and Strategic Initiatives

With officials from 19 nations arriving in South Africa, CGA CEO Dr. Boitshoko Ntshabele insists that this presents a prime opportunity for cooperation between the industry and government. By hosting meetings and addressing industry challenges, they can negotiate better market access.

“Before the G20 is handed over to the US, we should seize every opportunity, including negotiating with these ministers visiting our shores. This will enhance access to our existing markets and facilitate discussions,” states Dr. Ntshabele. These collaborative efforts align with the G20’s mission to enhance global economic growth.

Positive Growth Trends in the Citrus Sector

Dr. Ntshabele notes a robust growth trajectory for the citrus sector. The CGA estimates that South Africa will export approximately 180 million 15kg cartons this year, which is nearly 15 million cartons more than in 2024. By 2032, projections suggest exports could reach 260 million cartons, creating an estimated 100,000 jobs. However, the 30% US export tariff poses significant risks to this optimistic outlook.

“Our citrus industry is diversified, and we export to over 100 destinations. While we focus on enhancing market access where we are already established, we are also exploring emerging markets like Southeast Asia, India, South Korea, and Japan to regain lost ground in China,” explains Dr. Ntshabele.

He adds that developing new markets can require up to 15 years, as it involves extensive pest risk assessments and adherence to stringent sanitary and phytosanitary regulations to ensure biosecurity and food safety.

The Importance of the US Market for South Africa’s Citrus Industry

“Even though only 5%-6% of South Africa’s citrus goes to the US, many rural communities in regions like the Western and Northern Cape are highly reliant on these exports,” Dr. Ntshabele articulates. “Towns such as Citrusdal depend economically on US citrus exports and are sensitive to external disruptions.”

He notes that there has been significant growth in exports to the US, which have nearly doubled since 2017, supporting around 35,000 jobs tied to these citrus exports. Job losses could occur if the tariff situation does not improve.

The CGA is actively working with representatives in key export markets and teaming up with South African government departments and international citrus forums to bridge industry needs with diplomatic initiatives and expedite negotiations.

Ultimately, there is hope that these activities will be successful in an industry capable of addressing South Africa’s rising unemployment while maintaining international interest in citrus products.

It is essential for all industry stakeholders to take advantage of the opportunities presented during the G20 to secure a positive future for South Africa’s citrus sector.