Between 2018 and 2024, levy income in South Africa's citrus industry increased by an average of 247.85%, reflecting significant growth in financial capacity to support sector-wide initiatives. These agricultural statutory levies, approved by the Minister of Agriculture for a four-year cycle, are used to support key industry functions such as research, transformation, and export development. Surplus levy funds not utilised within three years may still be used within the four-year term, pending ministerial approval.
In 2022, the Minister approved more than a 100% increase in the citrus statutory levy following a request from industry stakeholders to strengthen export promotion. The increase was deemed necessary to ensure sufficient funding for maintaining operations and developing future initiatives. The steady surplus in levy income over most years indicates effective financial management by the industry.
By 2024, 66% of collected levies will be allocated to research and the development of export markets. Transformation efforts also received increased support, with funding rising from 22% in 2023 to 23% in 2024. These investments underscore the levy's role in driving innovation, supporting new agricultural techniques, and advancing disease control strategies. In addition to research and transformation, the levy funds are used for administration, export promotion, market access, and information distribution.
This targeted use of funds has contributed significantly to South Africa's position as the world's second-largest exporter of citrus products, despite domestic and international obstacles, including inadequate road and rail infrastructure, underperforming ports, and periodic disease outbreaks.
Nevertheless, the citrus industry faces ongoing challenges due to climate change and economic uncertainty. To ensure long-term resilience, there is growing recognition of the need for comprehensive research into the impact of levy funding—particularly its potential to address broader issues such as food security, poverty, and unemployment. The continued effective use of the statutory levy remains crucial in sustaining and transforming the citrus industry amidst an evolving global and local landscape.
For more information:
Mashao Mohale
National Agricultural Marketing Council
Tel: +27 (0) 73 181 8046
Email: dmohale@namc.co.za