World’s no. 2 citrus exporter halts some EU orange exports

South Africa, the world’s second-largest exporter of citrus fruit after Spain, will voluntarily stop exporting Valencia oranges to the European Union from areas affected by Citrus Black Spot starting Sept. 16.

The decision was taken after the nation’s citrus was flagged 10 times for failing to comply with rules relating to the fungal disease and because of the high risk the variety poses at the tail end of the EU export season, the Citrus Growers’ Association said in an emailed statement.

The suspension is another blow to the industry in South Africa, which last year generated export revenue of 30 billion rand ($1.72 billion), according to CGA data. Shipments to Europe, South Africa’s largest market for citrus, far exceeded 10 billion rand in 2021, the body said.

Last month exports were stuck at European ports for failing to comply with new EU measures aimed at curbing the spread of the false codling moth, a pest native to sub-Saharan Africa that feeds on fruit. 

“Discriminatory Regulations”

The “unjustified and discriminatory” rules are estimated to have cost citrus exporters about 200 million rand, the CGA said.  

The industry is also battling rising farming input costs stemming from Covid-19 and Russia’s invasion of Ukraine and a decline in export prices.

Fertilizer prices have jumped by more than 56% between 2020 and 2021, fuel prices have increased by almost the same margin and growers are paying freight charges that are twice as much as what it cost to produce the fruit over an entire year, CGA said.

At the same time real export prices of all citrus varieties have declined, which is expected to continue for the next few years, it said.

“Less than 20% of citrus growers will be above break even due to challenges such as input price hikes and Russia’s invasion of Ukraine,” the body said.