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New citrus export levy will see R1bn invested into the industry over the next 4 years

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The Citrus Growers Association said the industry was expecting another record-breaking export season in 2020, despite the challenges faced by the Covid-19 pandemic and national lockdown.

CEO, Justin Chadwick, said they were also confident that a new levy gazetted this week by Agriculture Minister Thoko Didiza, would enable the industry to grow its market share even further and as a result, create even more jobs and bring in increased revenue for the country's economy over the next four years.

He said the gazetting of the new statutory export citrus levy was welcomed, adding that the new levy would be funded by around 1 250 citrus growers over the next four years.

Chadwick said this would ensure both the long-term competitiveness of the citrus industry as well as the sustainable growth of black-citrus enterprises within the sector.

"The new levy represents a 120% increase from the previous levy and will translate into an estimated R1 billion investment by local citrus growers into the sector over the next four years. The levy will continue to be administered by the CGA," he said.

Chadwick said, "a key funding area is ensuring greater transformation within the industry" with 20% of the new levy being allocated to the development of black citrus growers and their meaningful and lasting participation in the sector.

"This funding will be invested in the CGA's recently finalised four-year Transformation Plan, which will be implemented through the CGA-Grower Development Company and the Citrus Academy."

He said the plan would focus on the provision of enterprise and supplier development programmes to black growers; the provision of skills development programmes to black growers; the roll-out of socio-economic development programmes in rural communities and ensuring the sustainable growth of black-owned enterprises as well as greater representation of black growers in industry leadership positions.

Chadwick said with the citrus industry expected to increase its exports by over 500 000 tons over the next three to five years, investment in research and development is critical in order to ensure the sector remains competitive in overseas markets.

"For this reason, 60% of the new levy will be allocated to Citrus Research International (CRI) to provide research and technical services to growers. This is a pre-requisite for gaining, retaining and optimising market access, which is a key priority for the industry over the short, medium and long-term.

Chadwick said the majority of citrus growers voted in favour of the levy increase which will be implemented January 2021.