Dark spots for one of South Africa’s biggest employers

Cabinet says the measures imposed by the European Union (EU) on the export of South Africa’s citrus products to the EU result in significant costs for the South African citrus industry, which is estimated at R2 billion per year.

The first regular Cabinet meeting of the seventh administration, held at the Union Buildings in Pretoria on Wednesday, raised the concern following a briefing about a formal dispute initiated by South Africa with the World Trade Organisation against the EU’s “stringent and unnecessary” plant health requirements regarding Citrus Black Spot (CBS) and False Codling Moth (FMC) regulations on the export of South Africa’s citrus products to the EU.

The EU is taking measures against South Africa’s exports to combat the incidence of Citrus Black Spot, a fungal disease, and the spread of the false codling moth, which damages the fruit.

South Africa maintains that citrus black spots cause blemishes on the fruit skin but don’t affect its quality.

Briefing the media on the outcomes of the Cabinet meeting on Thursday, Minister in The Presidency, Khumbudzo Ntshavheni, said South Africa is the world’s second-largest exporter of citrus, and 33% of the country’s citrus exports are destined for the EU market.

While not a ban, Ntshavheni said the measures imposed by the EU result in significant costs for the SA citrus industry.

“South Africa’s industry provides direct employment for over 140,000 people in rural South Africa, thus supporting over 1.5 million people.

“The EU has decided to impose the stringent measures against South Africa whilst not requiring the same from countries with similar situations such as Israel,” Ntshavheni said.

The dispute dates back to July 2022, with the Citrus Growers Association of Southern Africa last year saying that it would cost the industry over R500 million in lost exports as it couldn’t access enough specialised refrigerated containers in time to get the fruit to the European market.

“The industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade-restrictive regulations,” Thoko Didiza, South Africa’s agriculture minister, said in the statement.

Justin Chadwick, the CEO of the Citrus Growers Association, said in the statement that the industry has the potential to expand to earn an additional R20 billion in exports a year and create 100,000 more jobs.

However, he added that it wouldn’t happen if the EU restrictions were maintained. South Africa’s biggest competitor in the market is Spain.

Citrus growers in South Africa already spend about R3.7 billion annually to comply with the EU’s measures.

“South Africa already has an effective world-class risk management system that ensures safe citrus exports,” the nation said.

“Emerging citrus growers are especially hit hard with significant implications for livelihoods and jobs.” 

Read: South Africa picks a fight with its biggest trade partner