Returning from the 2025 edition of the biannual citrus summit is an affirming way to start the season, even as longtime Citrus Growers' Association (CGA) CEO Justin Chadwick hands over the reins to Boitshoko Ntshabele of "one of the best producer organizations in the world", according to Fredri Kok of Patensie Citrus. "What the industry managed to achieve over the past 25 years under Justin's leadership has been incredible. We have a special organization in the CGA and through it, we have unusual access to information."
An international speaker at the summit remarked on the outstanding accuracy and transparency of the information South Africa shares, he says. "We were also deeply appreciative of the positive message of support conveyed by John Steenhuisen, the minister of agriculture."
Northern Hemisphere buyers keen to switch over to Southern citrus
The general feeling among delegates was one of cautious optimism about the season that is only just unrolling. Northern Hemisphere retail buyers are keen to switch over to Southern Hemisphere citrus, Kok says. Next week Patensie Citrus will be harvesting their first Satsumas for Europe, where there are not a lot of late mandarins left.
Spanish and Turkish lemons will also end earlier and coupled with a crop that is, according to reports from different parts of South Africa, somewhat lower, the result could be favorable citrus markets. Easter weekend is traditionally the start of the Eastern Cape's lemon harvest.
On the other hand, Kok says, the prospect of empty markets and lower crops is tempered by the geopolitical uncertainty in the world: Russia and the European Union, and the new isolationism of the United States.
"The effect of Trump, and his outlook towards South Africa, was one of the main things that people discussed at the summit. The uncertainty surrounding the Rand-Dollar currency is a matter of some concern for us. We know Trump wants to increase exports for which he needs a weak Dollar, and it's in the long term that we'll fully experience the effect of trade decisions. The Rand-Dollar currency is so unpredictable, and it has a profound impact on our business. Hopefully, a Dollar that weakens can bring down our input costs but there too it will take two to three years for costs to come down," he says.
Logistics: a perennial concern
The other concern is the one that is never far from their minds, not even when the grape industry indicates an improvement in their experience with the ports (primarily Cape Town) this season.
Transnet management attended the summit and reaffirmed their commitment to investment in infrastructure and outsourcing terminal management, even as the privatization of Pier 2 of the Durban container terminal is still contested in court by Maersk.
"Ideally, within the next three years we would like to see around 60% of the port's operations privatized," he says. It's not the CGA's official position, but it is a general requirement harbored by the industry in order to be attractive as a global competitor. "Perhaps a more realistic window is over the next five years."
Gamtoos Valley, Eastern Cape
For more information:
Fredri Kok
Patensie Citrus
Tel: +27 42 283 0303
Email: info@patensiecitrus.co.za
https://patensiecitrus.co.za/