Citrus exporters cast the net wider

With the threat of a host of stricter phytosanitary conditions laid down by the European Commission (EC) possibly curtailing this golden export market for SA citrus growers, the industry is now setting its sights on developing new markets. SA citrus represents about a third of the EU’s imports, and is estimated to be worth about R8bn in foreign currency. But the market chase is not “ just-in-case Europe stumbles”, according to Justin Chadwick, CEO of the Citrus Growers' Association (CGA). “We’re not only looking at market opportunities in place of the EU,” he told FTW. “But the industry is growing, and new markets are needed to accommodate the resultant extra output.” An extra future output that he described as “significant” – as expansive additional planting by citrus growers starts to bear fruit. Africa is at the forefront of the CGA’s thinking, according to Chadwick, although SE Asia and Eastern Europe are also in the spotlight. “Africa has not been given too much attention before,” he said, while adding that it has potential. “Just as has happened with the apple growers.” And for a definition of the latter just read what Hortgro Services agricultural economics information manager, Mariette Kotzé, had to say. “West Africa is fast becoming one of the major export destinations for SA pome fruit, specifically with apples.” Indeed, Africa now accounts for a quarter of total apple exports from SA, which makes Africa the country’s second-largest apple export destination. And Chadwick also has some estimates which rather prove the potential in Africa. About 1% of SA’s citrus is shipped to other African countries. Compare this with about 40% for its apple industry. But, although Africa might hold potential, it also creates challenges. A main one of these, according to Chadwick, is the logistics problem. “It’s more difficult to ship fruit into Africa than to Europe,” he said. Another absolute necessity, he pointed out, is to make sure that you have a reliable agent at the other end of the supply chain. But Chadwick, just like singer Joan Baez, is confident that “We shall overcome”. The first targets for the CGA on the African continent are the three oil-rich states of Angola, Ghana and Nigeria – all of which have a fastdeveloping middle class with the spending power to be looking for high-quality fruits. They are also states where the apple exporters are prospering, according to Chadwick. With the Produce Marketing Association (PMA) having compiled appropriate data and analysis on the Angolan, Ghanaian and Nigerian markets, the CGA is currently busy looking at these, and studies of other potential markets on the African continent. SE Asia and Eastern Europe are also on the drawing board, and will soon be treated to the same detailed analysis. INSERT & CAPTION We’re not only looking at market opportunities in place of the EU. – Justin Chadwick