Farmers on edge amid pending 30% tariff on exports
The Citrus Growers' Association of Southern Africa (CGA) says it has written to President Cyril Ramaphosa, prompting him to request an extension of the current 10% US tariff beyond the 1 August deadline.
'The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold,' said CEO of CGA Dr Boitshoko Ntshabele.
The association says South African citrus growers do not pose a threat to US growers or jobs, as the produce sustains demand when local US citrus is out of season, which benefits US consumers.
'Citrus as a source of nutrition also helps to keep America healthy,' said Ntshabele, adding that if the deadline can't be extended, 'an urgent request for a specific extension for seasonal fresh produce should be secured'.
'Should we not be able to secure a favourable trade deal, or the concession for fresh produce, local job losses before the next season will be a certainty,' Ntshabele said.
Chairman of the CGA Gerrit van der Merwe added that local growers are concerned that a 30% tariff 'could lead to the eventual destruction of between 500 and 1000 ha that would simply become unprofitable'.
Sugar cane growers raise concerns
Following the announcement of the pending 30% tariff, the SA Canegrowers association said the move could render the country's sugar uncompetitive in the US.
'It is important to stress that the South African sugar industry poses no threat to the US market, which relies on sugar from outside the US to meet local demand,' said Chairman SA Canegrowers Higgins Mdluli.
'The US has, up until recently, had a quota system in place to ensure that the US retains full control over both the volume and price of imported sugar.
'The 30% tariff will make South African sugar less competitive in the US market when compared to heavily subsidised competitors like Brazil, India and Mexico.'
Don't have the ZO app? Download it to your Android or Apple device here:
HAVE YOUR SAY
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
WhatsApp – 060 784 2695
Instagram – zululand_observer
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
a minute ago
- IOL News
SA cannot afford any more delays to Brazil poultry imports by vet inspectors at the border
Currently, even when poultry shipments are pre-cleared using the online system, the poultry is held at a South African port until the original paper-based certificates arrive, which adds at least 7 to 10 days of delay before the chicken can be released for sale. Image: Pixabay By Georg Southey Merlog Foods is calling on the Border Management Authority (BMA) to implement the use of an online electronic verification system to verify health certificates and prevent further delays to poultry imports. These delays, caused by a reliance on paper-based certificates, are undermining food security and contributing to rising protein costs in South Africa. Veterinary health certificates for poultry exports from Brazil are issued both as hard copies and as secure electronic records accessible through an internationally recognised online portal. Both the Border Management Authority and the Directorate of Animal Health under the Department of Agriculture already have access to this online system. Currently, even when poultry shipments are pre-cleared using the online system, the poultry is held at a South African port until the original paper-based certificates arrive, which adds at least 7 to 10 days of delay before the chicken can be released for sale. Merlog Foods urges the Border Management Authority to rely on the online veterinary portal as used by Brazil instead of waiting for paper certificates to be sent from Brazil. After months of disruption to poultry imports, we urge the Border Management Authority to align port inspection procedures with modern, technologically based practices. Formalising the use of electronic verification systems would streamline trade while maintaining food safety and compliance. Following a ban on Brazilian poultry imports due to a single case of bird flu (HPAI) in one state, South Africa has recently reopened trade with Brazil. Early shipments are expected from the week of 18 August. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading We expect volumes to build up over the next two to three months, which will help stabilise the local protein market and ensure processors have access to key inputs such as mechanically deboned meat (MDM). MDM is a critical raw material in the manufacture of affordable processed protein products such as polony and viennas. These products are widely consumed by lower-income households and used in local school feeding schemes. Delays in releasing MDM into the market directly impact food affordability, with an estimated 100 million meals lost per week of delay. The continued requirement for original paper-based veterinary health certificates, despite their delayed issuance and delivery, creates a bottleneck in the supply chain. In contrast, Brazil's online veterinary certificate verification system is secure, widely used by global trade partners, and was previously accepted by South African authorities during the COVID-19 pandemic. Merlog Foods also urged the Department of Agriculture to prioritise finalising a regionalisation protocol with Brazil. This would allow imports from unaffected provinces to continue in the event of any future bird flu outbreak, rather than triggering a nationwide ban. It is important that a regionalisation protocol with Brazil is concluded without delay. If another case of bird flu arises in future and no agreement is in place, the entire country could once again be subject to a blanket ban. This would force us to experience unnecessary disruptions again. Merlog Foods reaffirmed its commitment to supporting the Department of Agriculture and its veterinary inspection teams at the Border Management Authority in implementing regulatory improvements that ensure safe, efficient and uninterrupted food supply. Georg Southey is the manager at Merlog Foods. Image: Supplied * Georg Southey is the manager at Merlog Foods. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
IOL News
31 minutes ago
- IOL News
Metair Investments navigates market challenges with strategic restructuring
Metair's Hesto Harnesses subsidiary displaying some of its products at a trade show at the Durban ICC. In the six months to June 30, 2025, Metair said the improvement in Hesto's performance was now well-entrenched, the initiatives to stabilise AutoZone were bearing fruit and a restructured debt package provided a sustainable platform from which to further reduce debt. Image: : Nqobile Mbonambi/Independent Newspapers Metair Investments, a leading motor component manufacturer in South Africa, restructured, right-sized and closed certain operations in the six months to June 30, which enabled it to navigate market shifts and volume variability. Headline earnings a share from continuing operations for the interim period are expected to decrease between 6% and 10% to between 69 cents and 72 cents a share. Revenue is expected to increase between 52% and 54%, driven by the inclusion of Hesto as a subsidiary from April 1, 2025, and the recently acquired AutoZone, for the full period. "The improvement in Hesto's performance is now well-entrenched, the initiatives to stabilise AutoZone are bearing fruit, and a restructured debt package provides a sustainable platform from which to further reduce debt. 'Building on the progress we achieved in 2024, manufacturing and production have been further optimised and our stringent focus on efficient project management and operational improvements has resulted in a more flexible operating model, ensuring that the business can deliver optimally to its customers. " said CEO Paul O'Flaherty. The share price was unchanged at R5.99 on Thursday morning. 'Market conditions remained challenging during the first half of 2025, both for local OEMs and local aftermarket trading. While a reduction in interest rates and easing inflationary pressures provided some macroeconomic relief, persistent uncertainty in both local and global markets continued to weigh on business confidence. As a result, consumer demand remained subdued,' they said. Despite these headwinds, volumes at key South African OEM customers improved and were in line with forecasts. The improvement initiatives at Hesto Harnesses, the group's major wiring harness supplier, resulted in higher revenue and improved operating profit. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Earnings before interest and taxation (EBIT) were expected to range between R440m and R460m, representing an increase of between 24% and 30%. The sale of the Mutlu battery manufacturing company in Türkiye was finalised in December 2024, which had derisked the balance sheet. Operations were restructured into two core segments: the OEM Direct Component Manufacturing segment and the Aftermarket Parts and Retail (AFM) segment, which is focused on serving the independent aftermarket and retail distribution channels. In the OEM Direct Component Manufacturing segment, the group's directors did not expect the US tariff turmoil to have a direct impact on Metair's OEM customers, as these customers did not supply into the US market. However, there would be an indirect impact on South Africa's economy. OEM segment revenue for the first half was expected to increase by between 65% and 70% from R3.29bn at the same time last year. If Hesto was included for the full six months in both comparative periods, OEM revenue would have increased by between 7% and 9%. Revenue from the AFM Segment was expected to increase by between 32% and 35% from R2.39bn in the first half of last year, driven largely by the inclusion of AutoZone. Visit:
The South African
31 minutes ago
- The South African
Four major South African banks shut ATMs
The era of cash withdrawals at the corner ATM is quickly fading, as four of South Africa's biggest banks – Standard Bank, FNB, Nedbank and Absa – significantly reduce their ATM footprints in favour of digital banking services. Over the past five years, these banks have collectively shut down 8 516 ATMs across the country, marking a major shift toward cashless banking. The move comes as more South Africans embrace digital payments, driven by convenience, security, and the growing costs of maintaining physical cash infrastructure. Standard Bank led the reductions, cutting its ATM total from 9 321 in 2019 to just 5 562 by the end of 2024 – a drop of 3 759 machines. In contrast, Capitec is expanding its ATM network – adding 3 787 machines over the same period. The bank says it remains committed to offering affordable and accessible cash services, even while digital adoption accelerates. 'We are actively increasing our branch and ATM footprint while our competitors are scaling back,' Capitec said in a statement. Capitec's strategy reflects the reality that, despite a strong digital shift, a significant portion of the population still relies on cash, particularly in underbanked or rural areas. A recent survey by Discovery Bank and Visa shows that 67% of South African consumers now use cash only a few times a month or not at all, highlighting the scale of digital transformation in financial behaviour. This aligns with broader trends in e-commerce, mobile payments, and banking app usage, which have surged in recent years – further accelerated by the pandemic and ongoing innovations in fintech. While the banks acknowledge safety concerns and the logistical challenges of handling cash, Capitec says it will continue to support cash access 'for as long as it's needed.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
