Trade is a key driver in the growth of South African citrus production, with total exports accounting for 79 percent of the total citrus production. The United States remains a key market for South African citrus growers.
In the 2017/18 MY, citrus exports to the United States amounted to US$47 Million. The growth in orange production and supply has also led to the increase in orange juice production. The production of grapefruit is forecast to increase by 7 percent to 450,000 MT in the 2018/19 MY, due to the rise in area planted, normal weather conditions, bigger sized fruits and the high level of new planting in the past five years. Post forecasts that grapefruit exports will increase by 8 percent to 310,000 MT in the 2018/19 MY, due to the increase in production and strong demand in global markets, especially Asia and some countries in the European Union.
The production of tangerines/mandarins is forecast to increase by 7 percent to 300,000 MT in the 2018/19 MY, due to the rise in area planted, normal weather conditions, and the high level of new plantings in the past five years coming into full production. Tangerines/mandarins exports are forecast to increase by 7 percent to 280,000 MT in the 2018/19 MY, based on the increase in production and the industry strategy of prioritizing export markets such as the United States.
With Brexit currently being a hot topic, South African fruit exporters are watching closely to see how it might influence the value of the pound, says Roelf Pienaar, managing director of fruit marketing body Tru-Cape.
Most of its members' fruit is grown is in the Western Cape -around Elgin, Grabouw and Ceres- and in the Langkloof in the Southern Cape. Tru-Cape is grower-owned, and any profits are reverting back to them.
