The Citrus Growers' Association of Southern Africa (CGA) elevated its request for government intervention to President Cyril Ramaphosa asking him to urgently intervene and halt unfair trade regulations enforced by the European Union (EU) on the local citrus industry.
CGA said on Friday that it was critical that the South African government draws a line in the sand and called for an official World Trade Organisation (WTO) dispute with the EU on their Citrus Black Spot (CBS) regulations.
The organisation said these EU regulations on CBS were discriminatory and threatened thousands of jobs in the sector.
Deon Joubert, CGA Special Envoy: Market Access & EU Matters, said the CGA and the Department of Trade, Industry and Competition, the Department of Agriculture, Land Reform and Rural development and the Department of International Relations and Cooperation had worked together for over ten years to put a stop to the CBS regulations.
However, unfortunately the EU had continued to enforce rules that were unscientific and irrational, he said.
"The situation has now become so serious that substantial losses in jobs and revenue are on the horizon unless immediate action is taken," Joubert said.
"The industry has continued to raise the fact that CBS is a cosmetic issue that only affects a miniscule percentage of fruit exported, as a result of South Africa’s world-class control measures. Even though there is conclusive evidence that citrus fruit without leaves is not a pathway for the spread of CBS, the EU has continued to enforce these unreasonable measures.
The EU is the only overseas market holding this position on CBS. Other markets acknowledge that the risk of establishment and spread of the disease through trade in fresh fruit is completely negligible."
The organisation said it was clear that the EU restrictions were nothing more than a protectionist impulse. It said through their actions they were blocking South African citrus to unfairly benefit their own members, specifically the Spanish citrus industry.
Joubert said local citrus growers, nevertheless, have had to implement a comprehensive CBS risk management programme over the past few years.
"The Bureau for Food and Agricultural Policy (BFAP) has quantified the cost of CBS risk management for the EU market in excess of R2 billion per year. This is completely beyond our industry’s financial ability. Our growers are already under pressure due to the electricity and logistics crises the country is currently experiencing and the major hike in input costs over the past two years," Joubert said.
If the EU market situation was not addressed, jobs and livelihoods would be lost. The EU citrus market currently sustains a total of 70 000 jobs and generates R15 billion in foreign earnings, he said.
"Time is running out for our growers, who are already feeling the extreme market pressures. The CGA calls on the South African government to work with the industry to put a stop to these CBS regulations and fight for South African jobs and revenue. Declaring a WTO dispute is truly a matter of urgency," Joubert said.
Last month, Transnet Port Terminals with exception of the Eastern Cape, it had noted a slow start to the citrus season in general. Michelle van Buren Schele, the general manager of Commercial and Planning at Transnet Port Terminals said there were a number of factors at play including lower crop yields due to weather, as well as the EU’s cold treatment legislation, which combined had reduced export opportunities.
She added at the time that Transnet remained optimistic of a strong, albeit later, finish with three months before end of season as volumes were starting to pick up in Durban after delayed production of valencia and mandarin fruits. This would also contribute to peak export flows, she said.
BUSINESS REPORT