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The glass half full – growth and cost-saving opportunities

07 May 2020 - by Liesl Venter
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Challenges are not new to the South African citrus industry which has shown huge resilience over the past few years.With the 2020 season finally in full swing amidst global lockdowns, expectations of the industry’s bumper export records of 143.3 million cartons of fruit have been diminished by the Covid-19 pandemic.

“This industry is used to facing challenges alone, and has a spirit of overcoming challenges,” said Justin Chadwick, CEO of the Citrus Growers’ Association (CGA).

“This challenge is unprecedented in its enormity, but there is no panic in the industry and growers are getting on with the job.”

According to Chadwick, while the new trading arena introduced by the coronavirus is challenging, there are also opportunities to do things differently and save costs.

“There are opportunities with the oil price collapse translating into lower transport costs and there are opportunities in markets where demand for citrus fruit is at a high as citrus is seen as an immune booster and remedy for colds and flu.”

Much like the fruit – hardy with a long shelf life – the citrus industry is dealing with the situation as they have done with challenges in the past – head-on.Commenting on expectations of still seeing a 13% increase in exported citrus this year compared to last year, Chadwick said it was difficult to say.

“Much of it will depend on the ability of the logistics supply chain as well as markets’ ability to distribute the fruit, as well as customers’ disposable income, which in the Middle East, Russia and some African countries will be impacted by the oil price decline,” he said.

Despite remaining positive in the face of adversity, most citrus growers are expecting a slowdown of exports with a unique shipping pattern developing for 2020.Chadwick said shippers were being cautioned not to predict shipping trends based on previous years as shipping logistics had been disrupted by Covid-19.He said each country was being examined individually based on how they were dealing with the pandemic.

“Some countries have restricted activities or closed wet markets (meat and fish) like in Asia, for example, which is an important trade lane for imported fruit. Some countries may impose stronger lockdowns. We do expect, though, that most food trade lanes will remain open.”Chadwick said despite the major focus on coronavirus, South African producers also had to focus on citrus black spot and other phytosanitary issues as these would be no less important or less policed this season.

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