Industry organisation the Citrus Growers’ Association of Southern Africa (CGA) has revised its total export estimate for this year downward to 205.3-million 15 kg cartons, from the pre-season estimate of 209.4-million 15 kg cartons.
With all varieties included, the industry has now reached the peak of the export period, which has placed considerable pressure on port capacity, with delays being experienced at the Port of Durban.
It has been a very challenging season for citrus growers. Floods in the Western and Eastern Cape have impacted the season and the Patensie region faced significant challenges. Input costs, market conditions and pricing are placing pressure on farm-gate margins, the CGA points out.
Factors beyond the region's borders have proved consequential. Supplying the Middle East has remained difficult as a result of the ongoing conflict in the region. Traditionally, this region receives about 20% of South Africa's exports.
The US-Iran war has also placed considerable pressure on input and logistics costs, such as diesel and, most notably, shipping rates, and transit times were also affected. The conflict's effects extend well beyond the region, weighing on demand in other markets as well.
