A ‘perfect storm’ threatens Southern African citrus industry

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Southern Africa’s citrus industry is battling a “perfect storm” of increased production, rising farming input costs and a decline in export prices that threaten to erode its profitability. Moneyweb Farming Production

Southern Africa’s citrus industry is battling a “perfect storm” of increased production, rising farming input costs and a decline in export prices that threaten to erode its profitability, according to the head of a regional industry body.

Prices of all citrus varieties are also expected to drop during the course of the decade, Chadwick said, citing a CGA-commissioned study. Modelling shows “most local growers face the threat of moving into a negative profit margin — before even considering interest on long-term loans and taxes — which will continue to worsen up to 2030,” he said. Citrus producers in Southern Africa, including South Africa, Zimbabwe and Eswatini, exported 161 million cartons of fruit in 2021, he said.

 

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