Latest news with #CitrusGrowers'AssociationofSouthernAfrica
The Citizen
5 hours ago
- Business
- The Citizen
Citrus growers call on president to urgently intervene about 30% US tariff
While other industries can wait for government to negotiate the US tariff down, citrus growers could be stuck with boxes of rotten fruit. With mere days to go before Friday, when the US tariff of 30% on South African goods kicks in, the Citrus Growers' Association of Southern Africa wrote to President Cyril Ramaphosa, calling on him to urgently intervene on behalf of rural communities in the Northern and Western Cape, where citrus exported to the US is grown and where livelihoods rely on the US-SA citrus trade. 'This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7 million cartons of citrus to the US,' Dr Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa (CGA), says. The association has asked Ramaphosa to urgently facilitate an extension of the current 10% US tariff beyond 1 August, which would allow for negotiations to reach a mutually beneficial trade agreement. The CGA also requested that, if a general extension of the deadline is not possible, an urgent request for a specific extension for seasonal fresh produce should be secured. 'Seasonal fresh produce is perishable and cannot be stored for extended periods like other trade products. We just passed the midpoint of the 2025 export season, which means that hundreds of thousands of cartons of citrus are ready in packhouses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold.' ALSO READ: Experts question if SA has a plan for US tariffs, Tau says here it is SA citrus growers no threat to US farmers—no reason for US tariff of 30% South African citrus growers do not pose a threat to US growers or jobs, as they sustain demand when local US citrus is out of season, benefiting US consumers. 'Citrus as a source of nutrition also helps to keep America healthy. 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 says. Gerrit van der Merwe, chairman of the CGA, says being a grower in Citrusdal, he is very worried about the effect the tariffs will have on the town and the wider Cederberg municipality. 'Citrus forms the economic heart of the area. 'Not just farmers and farm workers will feel the impact, as local businesses and even the funding of social support programmes will be affected too. The social fabric of some rural towns in the Western and Northern Cape is threatened. 'Local growers also say a 30% tariff will not only stifle future growth but lead to the eventual destruction of between 500 and 1 000 ha of land that would simply become unprofitable.' ALSO READ: Trump tariffs implemented in same week SA citrus growers pack for US export Letter to the president about US tariff In the letter to the president, the CGA highlighted that, while much focus has been placed on market diversification in the past few weeks as a general answer to the trade turmoil, certain realities must be considered. 'Citrus is grown for designated markets, each with their own precise market and plant health specifications. Therefore, it is not easy to simply divert citrus from the US and find a new market. Should some citrus be diverted away from the US, the diversion could very well depress the price in these markets through oversupply, negatively impacting the entire Southern African citrus industry. 'The citrus industry has the potential to create 100 000 additional jobs by 2032 because of new plantings, but for this to be realised, we require the expansion of every market—including the US, China, India, the European Union, and others,' the CGA says in the letter. Ntshabele says while the CGA acknowledges measures of progress made in the US trade negotiations, it is of the opinion that more direct and active contact with the US is necessary before the 1 August deadline. ALSO READ: Devastating impact of US tariffs on SA automotive sector even before implementation US tariff much worse than losing Agoa status Arthur Kamp, chief economist at Sanlam Investments, says South Africa's direct trade exposure to the US is relatively modest but not insignificant. In 2024, goods exports to the US amounted to R156.8 billion (7.6% of total South African goods exports and 2.1% of GDP). The US announced a 30% tariff increase for South Africa. 'After taking the 25% US import tariff increases on aluminium, steel, and motor vehicles into account, while also adjusting for exclusions, we estimate the overall effective US tariff increase for South Africa is likely to be less than 20%.' However, he points out that this is still a large increase and is likely to cause a sharp decrease in South African exports to the US, including motor vehicles. 'We note that vehicle exports to the US were already significantly down last month, indicating manufacturers readjusting and finding new markets for finished goods, as total vehicle exports were up by 3%. 'While some exclusions may also be rescinded, it is important to understand that the impact will be far greater than losing our AGOA (African Growth and Opportunity Act) status alone. 'Downward revisions to South Africa's gross domestic product (GDP) forecast for 2025 should result, while combined with heightened geopolitical risk, the effect on business sentiment and investment could be more pronounced, particularly given South Africa's dependence on the US for foreign capital, especially portfolio capital, which is highly liquid.'
The Citizen
10 hours ago
- Business
- The Citizen
Farmers on edge amid pending 30% tariff on exports
With just days before the United States is expected to impose a 30% tariff on SA exports, farmers are pleading with government to act now and save hundreds of thousands of fresh produce ready to be shipped to the American market. 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
The Citizen
3 days ago
- Business
- The Citizen
SA citrus industry faces major setback with US tariff
Following a 90-day reprieve that postponed the measure earlier this year, the US will impose a 30% tariff on exports of South African citrus, among other products, from August 1. The move has sparked concern among local farmers and industry leaders, who have warned that it could cost thousands of jobs and destabilise rural communities. According to the Citrus Growers' Association of Southern Africa (CGA), the tariff would render South African citrus uncompetitive in the US market. Speaking to Farmer's Weekly, CGA CEO Boitshoko Ntshabele said that unlike major South American competitors like Peru and Chile, which faced a 10% tariff, the 30% tariff imposed on South Africa would add approximately US$4,25 (around R75) per carton, effectively pricing local citrus out of US store shelves. Tariff could devastate rural economies In a statement, Gerrit van der Merwe, chairperson of the CGA's board and a citrus farmer in Citrusdal, Western Cape, said the tariff would wreak economic havoc on local communities. 'Towns like Citrusdal, which rely heavily on US exports, could face increased unemployment or even total economic collapse,' he explained. While the US currently accounts for 5% to 6% of South Africa's citrus exports, that relatively small market is critical for rural economies in the Western and Northern Cape. Exports to the US have nearly doubled since 2017, with more than 6,5 million cartons sent to that country annually. According to Ntshabele these exports supported 35 000 jobs in South Africa and an estimated 20 000 in the US supply chain. 'Citrus is not produced in a factory. South African citrus growers do not compete with US citrus growers. In fact, our counterseasonal supply sustains consumer interest when US citrus is out of season, eventually benefitting US growers when [our season ends],' he added. He emphasised that tariffing seasonal fresh produce like citrus could raise US food prices and harm public health. 'Citrus should be on the White House's exemption list. It is seasonal and supports both US health and the US citrus industry while helping to keep food inflation down,' Ntshabele said. 'SA government must act swiftly' The CGA has urged the South African Department of Trade, Industry and Competition to urgently finalise negotiations with the US before 1 August. 'There are clear and convincing arguments for why our government must act swiftly and decisively to safeguard citrus,' Ntshabele said. Van der Merwe echoed this appeal, adding that the tariff's timing could not be worse. 'We're in the middle of our 2025 harvest. Fruit is being picked, packed, and shipped. Redirecting that volume to other markets on short notice is almost impossible, and doing so could collapse prices across our entire industry,' he explained. Call for fairer trade and global market access Commenting on the tariff, Minister of Agriculture John Steenhuisen said in a statement: 'We have noted the correspondence from the White House regarding the 30% tariff on South African exports. Thousands of agricultural jobs are at stake, particularly in citrus, grapes, wine, and nuts. 'We remain committed to urgent, constructive dialogue with our US counterparts and are working closely with other ministers to explore all avenues for a fairer trade outcome, including expanding into new and emerging markets.' According to Ntshabele, in the long term, South Africa's citrus industry was projected to create 100 000 new jobs by 2032, but only if current market access was preserved and new export opportunities to the US, China, and India were unlocked. He added that with South African citrus already facing steep tariffs in Asia, the loss of the US market could be a devastating blow, he added. 'Unless a trade solution is found soon, this winter's storm could very well be the one we'll not weather,' Van der Merwe warned. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on
The Hill
19-07-2025
- Business
- The Hill
South African citrus growers face uncertainty amid proposed 30 percent US tariffs
The winter months in South Africa's Olifants River Valley are cold, wet and green. There are waterfalls in the nearby Cederberg and Winterhoek mountains, and the landscape below is blanketed by citrus orchards. Surrounding the town of Citrusdal, farmhouses and packhouses dot the landscape, defining one of the agricultural jewels of South Africa's Western Cape province. But this winter is very different from previous ones. When I speak to the orchard workers, packhouse managers and various technicians on our family's farm, their concern is clear. I myself, an eighth generation citrus grower, am deeply worried about the future of our community. Storm clouds are on the horizon. On July 7 the U.S. announced a planned 30 percent tariff on South African imports starting Aug. 1. This came after no final trade deal could be reached between South Africa and the U.S. following the Trump administration's reciprocal tariff announcement of April 2. Our valley shows how the tariff turmoil can have extremely disruptive consequences. The local citrus farms have proudly been exporting world-class fresh citrus to the U.S. for decades. Especially the mandarins and oranges produced here finds its way onto many U.S. store shelves. American consumers have started to develop a pronounced taste for South African citrus. Since 2017 our exports have almost doubled. The looming 30 percent tariff now threatens these exports. It would make our citrus completely uncompetitive in the U.S. This would not only wreak economic havoc in our community, it would have negative consequences for the U.S. citrus consumer as well. Organizations such as the Citrus Growers' Association of Southern Africa still believe a mutually beneficial trade deal between the U.S. and South Africa is possible, but time is on nobody's side, with the Aug.1 deadline around the corner. A practical option for consideration by the U.S. would also be to exempt seasonal fresh produce from these tariffs. Seasonal fresh produce holds a unique space within the current trade turmoil, and an exemption makes sense. Seasonal produce is not like a product produced year-round in a factory. Citrus cannot be 'in-sourced.' South Africa, as a counter-seasonal producer, does not threaten U.S. citrus growers or U.S. jobs. In fact, our produce sustains demand when U.S. citrus is out of season, which benefits U.S. growers when we 'hand over' consumers at the end of our season, around October. We also add unique varieties to the U.S. market, significantly increasing consumer choice. These varieties cannot easily be replaced by our competitors, such as Chile, Peru and Australia, even though they are not facing tariffs as high as we are. Disturbing the supply of citrus to the U.S. could also lead to an increase in price for the U.S. consumer. This type of food inflation has consequences. With citrus — a main source of Vitamin C and many other nutrients — there is a health dimension to take into account as well. We help keep America healthy. The middle of the 2025 citrus season has just been reached. Fruit is being picked, packed and shipped on our farm. Our conveyor belts are humming and the trucks are leaving for the Port of Cape Town, 176 kilometers to the south. In total, South Africa planned to send over 7 million 15-kilogram cartons of citrus to the U.S. this season, but if the tariffs are implemented on the Aug. 1, we will have to deal with a devastating new reality. Fruit is usually grown for specific markets — meaning everything, from the choice of variety to sizing, from required plant health protocols to the timing of the picking, is market-specific. Because of this, it is not as simple as diverting citrus to another market. Even if some diversion could be managed, increasing supply to other countries could oversupply those markets and collapse the price, with a knock-on effect on the entire citrus industry. Either way, a 30 percent tariff means hard times ahead for our community. South Africa struggles with high levels of unemployment. The local fear is that a trade setback of this size could tip Citrusdal and the entire Cederberg municipality into extreme poverty and instability. The effect this would have on the already high levels of violent crime in our province is terrible to contemplate. But the effect is, once again, not only local. South African citrus producers have built up relationships and networks in the U.S. over decades. The tariffs would also mean immense uncertainty for stakeholders in the U.S. fresh produce chain, including logistics. While 35,000 jobs are directly dependent on U.S. citrus exports in South Africa, the Citrus Growers' Association of Southern Africa estimates that almost 20,000 jobs up and down the supply chain in the U.S. are in some way connected to the U.S.-South African citrus trade. The Olifants River Valley is staring down a completely disrupted citrus season in the face. We have weathered floods, pests, logistical crisis and even political unrest — always securing a supply of high-quality citrus to the U.S. during their summer months. Unless a trade solution is found soon, this winter's storm could very well be the one we'll not weather.
Yahoo
09-07-2025
- Business
- Yahoo
US tariffs on South Africa set to hit white farmers Trump has embraced
By Wendell Roelf CITRUSDAL, South Africa (Reuters) -U.S. President Donald Trump's threatened 30% tariff on South African exports is set to deal an economic blow to a community he has vocally and controversially championed: white farmers. Citing false claims that white South Africans are being persecuted, Trump has cut aid to the country, publicly berated its president in the Oval Office and invited Afrikaners - descendants of early European settlers - to come to the United States as refugees. But for white farmers who remain rooted in their homeland and aspire to keep making a living from the land, the tariffs due to come into effect on August 1 are an assault on those ambitions. "It doesn't make sense to us to welcome South African farmers in America and then the rest that stays behind ... to punish them," said Krisjan Mouton, a sixth-generation farmer in Western Cape province's citrus heartland. "It's going to have a huge impact," he said, standing among rows of trees heavy with navel oranges on his farm near the town of Citrusdal. "It's not profitable to export anymore to the USA." After a three-month pause, Trump escalated the global trade offensive he launched in April, announcing tariffs on more than a dozen countries on Monday, including South Africa. Its citrus fruit, along with wine, soybeans, sugar cane and beef, had previously benefited from duty-free access to the U.S. under the Africa Growth and Opportunities Act. Helped by that trade initiative, South Africa, the world's second-largest citrus exporter after Spain, generates $100 million annually from the U.S. market. The new tariff ends that preferential treatment. And with three-quarters of South Africa's freehold land white-owned, white farmers will face the immediate economic fallout though they will not be the only casualties. Boitshoko Ntshabele, chief executive of the Citrus Growers' Association of Southern Africa (CGA) said the levy will hurt all South African farmers and farm workers, no matter their race. "A 30% tariff would wreak havoc on communities that have, for decades, focused on producing specifically for the U.S. market," he said. 'FARMERS WILL GO BANKRUPT' Its location in the Southern Hemisphere means South Africa produces citrus at times of the year when the U.S. doesn't, with its exports giving U.S. consumers year-round access to fruit. While the United States accounts for only around 6% of South Africa's citrus exports, some farming areas produce specifically for the U.S. market. Redirecting produce grown for the U.S. to other markets is not simple, as size and plant health requirements vary from country to country. Nestled in a valley in Western Cape's rugged Cederberg mountains, Mouton's family farm employs 21 permanent workers, and nearly triple that number during peak picking season. The CGA has said about 35,000 jobs are at risk in Citrusdal alone, as the tariffs risk making South African citrus uncompetitive compared to fruit from Peru, Chile, and Australia. South African President Cyril Ramaphosa has said trade talks with Washington will continue and argued that the 30% rate was based on an inaccurate understanding of the two countries' trade. In the meantime though, the CGA wants to speed up an expansion of exports to new markets including China and India. High tariffs in some countries and stringent plant health requirements in the European Union, for example, make that a complicated prospect, however. Not far from Mouton's farm, workers are carrying on as usual, for now, sorting and packing fruit at the 14,000-square-metre Goede Hoop Citrus warehouse. But if the 30% levy remains in place, that won't last long, managing director Andre Nel told Reuters. "Farmers will go bankrupt. For sure there would be job losses within our sector," he said. "I don't even want to think about it." ($1 = 17.8568 rand)
