Citrus growers have taken advantage of Agoa since it was first introduced in 2000, forging ahead with what is now an established US market.
At the end of last year, Justin Chadwick, CEO, Citrus Growers’ Association (CGA), compiled a case study of fresh citrus exports to the USA, which revealed these results:
- Since the opening of the US market, South Africa has shipped 500 000 metric tons of citrus fruit to that country, peaking in 2006 at 50 000 metric tons.
- It is estimated that export earnings exceed US$700m to date.
- The US market for summer citrus has generated 5 000 new permanent jobs and 3 000 temporary positions, supporting 25 000 people. New positions, and skills, are found all along the supply chain from citrus groves to ports.
- There has been direct foreign investment in South Africa, an example being the US company Seald Sweet LLC.
- New BEE projects in the Western Cape have become a source of workforce stability, benefitting rural communities.
These achievements come despite a glitch at the end of 2006, when Californian health inspectors claimed the discovery of live moth larvae in the fruit. Even though standard procedures were not followed by the inspectors, extended cold treatments were imposed on SA imports, which proved harsh on soft citrus. In the meanwhile, Chile and Peru made inroads in the US market, adding to competition.
The association believes volumes of summer citrus could, however, increase by 50 000 MT in five years and an additional 50 000 MT in a decade, contingent on the resolution of various health issues and extension of marketing campaigns. It has identified market trends and gaps that support export growth.
The extension of this would be exporting the products of agro-processing; according to Laird Treiber, economic counsellor for the US Embassy in Pretoria, this is one of the more viable areas of Agoa-eligible goods.
“South African wine exporters have targeted expanding their market share in the United States, following the lead of citrus growers,” he says. “We see significant potential for other processed items, including fruit juices, red meat such as ostrich and lamb, and avocados. Rooibos tea is becoming increasingly popular in the US, so there may also be an opportunity for natural teas.
