The coming citrus season: Impacts of EU regulations on SA’s orange exports
By Karabo Mabuza and Nteboheleng Mosiuoa
As South Africa gears up for the start of the 2024 citrus season, the orange industry faces ongoing challenges from European Union (EU) regulations on the false codling moth (FCM).
These rules were introduced in 2022 had significantly disrupted South Africa’s orange exports to Europe, traditionally an important market. With another season approaching, it is time to examine the impacts these regulations have had and what they could mean for the upcoming harvest and exports.
The new EU requirements for exporting oranges, mandating cold treatment and additional inspections for FCM, have posed major obstacles for South Africa’s citrus growers.
When the rules came into effect in 2022, orange exports to Europe dropped 9% by volume compared to 2021, down to 570 020 tons according to industry estimates. The decline continued in 2023 with volumes falling to 469465 tons, a 25% decrease from 2021 levels before the regulations.
The decreasing shipments indicate the FCM regulations may have hampered producers’ ability to get oranges to European markets, cutting off a vital channel. The Citrus Growers Association has decried the requirements as unnecessary, unscientific and excessive, taking legal action through the World Trade Organization (WTO) to challenge them.
But with the dispute ongoing, the protocols look to remain in place for 2024. The FCM requirements slow down exports and raise costs throughout the supply chain. This not only restricts South Africa’s trade, but also threatens the profitability of orange farming in a country where citrus represents a vital agricultural industry.
Expanding port operations and distribution channels to boost citrus exports and trade growth
Additional shipping lines have been announced for the coming citrus season, which could alleviate pressure on the industry. Two lines are being established for two ports, with one line being introduced in Durban and another in the Eastern Cape. These lines are expected to become operational during the current season. As long as the ports function effectively, these developments will facilitate smoother exports.
The industry aims to witness increased growth in trade with other countries which could include India and China in the future. The expansion may not be limited to the current season alone; it is anticipated to continue in the absence of major complications. By effectively leveraging marketing strategies, such as improved visibility, targeted campaigns, and enhanced promotional activities, the demand for citrus fruits can be stimulated and further amplified.
This heightened marketing focus, combined with the streamlined export processes facilitated by the expanded ports, will create a favourable environment for the citrus industry to flourish.
Challenges and opportunities for SA’s citrus industry
In the meantime, South Africa's citrus industry must adapt to the challenges of the EU regulations. Diversifying into new markets like recently approved protocols by the Department of Agriculture, Land Reform and Rural Development with Vietnam will help provide alternative market opportunities for oranges. Upgrades to cold-storage infrastructure could ease some of the pressure from new cold treatment demands.
As the start of southern Africa’s citrus harvest nears, the ripple effects of the EU’s false codling moth requirements will soon be evident. South Africa’s orange exports already have declined notably under the new protocols. This citrus season will continue to test the resilience of local growers as they navigate persistent obstacles in this particular market.
Karabo Mabuza and Nteboheleng Mosiuoa are agricultural economists in the Agriculture Economics and Advisory Division within the Land Bank. Please follow Land Bank on: Facebook: @Land and Development Bank of South Africa LinkedIn : @Land and Development Bank of South Africa
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