Loss of income
estimated at R500m
A GROUP of South Africa's leading citrus producers, who account for approximately 80% of the export crop, have decided unanimously to establish an organisation to co-ordinate future exports to restore the citrus industry to profitability.
This decision was taken at recent meetings in the northern production areas and the Western Cape, attended by producers who collectively produce 35m cartons of citrus fruit. The new organisation will be up and running well before the start of the next export season.
The move was prompted by one of the poorest export seasons in history.
According to Edward Vorster, chairman of the committee elected to establish the new organisation, the deregulation of citrus exporting fragmented marketing.
Unco-ordinated marketing efforts due to the involvement of a large number of export agents resulted in unnecessary competition between producers, the export of unsuitable grades and fruit sizes, as well as unplanned consignments to sensitive markets.
Vorster said these factors had caused the market to collapse, resulting in disastrous returns for producers. This collapse also caused secondary problems for farm workers and suppliers as well as for the country's efforts to earn foreign exchange. We estimate the loss of income at about R500m.
Vorster added that the perception that over-production was at the root of the problem was unjustified. Southern Africa exported less citrus in 2000 than in 1999 and the exports from Argentina and Uruguay, our biggest competitors, were also far lower than the previous year.
Members of the new organisation will have to follow specified rules and regulations, as well as meet strict requirements with regard to quality and product protocol. Depending on market conditions, fruit of a certain quality and size will not be exported.
In addition, export agents will have to qualify for accreditation, with continued accreditation dependant on their conduct and the results achieved.
Members will be obliged to use only accredited agents.
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
