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The country's citrus growers are seeking answers from the government on what it said was the European Union's unfair regulations regarding the False Coddling Moth, which is endemic to sub-Saharan Africa.
The EU regulations require that oranges exported from South Africa must be kept at temperatures of two (2) degrees Celsius or lower for 25 days, adding to farmers' costs.
The Citrus Growers Association of South Africa said when the Minister of Trade, Industry and Competitions tables his budget on Thursday, they want to hear what lies in store for them.
CEO, Justin Chadwick, said months of consultations between the South African government and the EU at a World Trade Organisation level, have failed to reach mutually agreed concessions between both parties.
He said an estimated 30% or 120 000 tons of fruit produced for the EU will not be sent this export season, and this may result in an overall estimated revenue loss of R500 million this year alone.
Chadwick said that CGA was grateful for all the support shown by the national government to date, with President Ramaphosa and Minister Patel publicly raising the issue at recent high-level engagements with senior politicians and officials from EU countries.
"We also welcome Agriculture Minister Didiza's recent remarks during her budget speech that the government was considering setting up a panel in the WTO as part of the Dispute Resolution Mechanism."
Meanwhile, FNB economist Paul Makube, said in spite of the challenges, the sector has managed to achieve a steady annual compound growth rate of 11% in gross production value over the past five years.
He said this has also helped to provide close to 150 000 employment opportunities.
However, Makube said the 2023 export season will be challenging as declining "grow prospects" and rapidly rising inflation and interest rates, are starting to bite hard into the profitability of the citrus industry worldwide.
He said the sharp rises in costs, particularly logistics costs, have led to citrus exporters' margins shrinking rapidly, since 2021.
However, Makube said he remained positive about the potential that still exists for the country's citrus industry to grow in the coming years, and even become more sustainable.
"While the challenge of slowing exports is likely to remain in place for some time, the local industry is able to adapt, and there is evidence that it is already doing so," he explained.
Makube emphasised that there was no simple solution or quick fix to the challenges facing the sector, but he believes that a carefully coordinated response by all stakeholders can, and will, lead to long-term positive outcomes, particularly for farms, which are the cornerstone of the sector's sustainability.
