The Citrus Growers' Association (CGA) of Southern Africa said it was very pleased to welcome an additional direct shipping service from the ports of Ngqura and Port Elizabeth for the export of citrus.
MSC, a global container shipping leader, has recently announced an additional service, running every Tuesday from the end of May to the beginning of September, during the height of the citrus season. MSC has provided the citrus industry with shipping services for many years and this expanded offering is a welcome development.
Justin Chadwick, CEO of CGA said this additional service was described as good news for Eastern Cape citrus growers. “Our members in Patensie, the Sunday's River Valley and Kat River who export their high-quality citrus to Europe will be able to make use of this option, which helps to protect jobs and much needed foreign revenue for the country,” Chadwick said.
The CGA said it looked forward to the year with cautious optimism.
“The fruit on the trees are looking very good and we expect an increased crop yield in the coming season. There is a potential for another record-setting number of cartons exported. It has been projected that South Africa can, with the committed support of all role-players, increase its citrus exports from last year's 165.1 million 15kg cartons to 260 million cartons by 2032. This will not only generate more revenue but create 100 000 more jobs on farm level alone.”
Chadwick said was in this context that the CGA was thankful for increased capacity in the shipping market.
John Hudson, the Head of Agriculture for Commercial Banking at Nedbank said the additional shipping service provided by MSC for citrus exported from the Eastern Cape was indeed a positive development and needs to be applauded.
“With the combined citrus yield curve on the rise, we expect citrus exports to increase over the next few years and this will pose a challenge from a logistics perspective. Private sector investment and participation is a must and this commitment by MSC is an example. However, Government, as a vital stakeholder, must urgently tackle the deteriorating infrastructure and significantly improve port operating efficiency if South Africa is to meet the expected increase in citrus exports,” Hudson said.
Last month, the Ngqura Container Terminal (NCT) announced it had recruited a total of 36 operators of lifting equipment to run a full three-berth operation when South Africa’s citrus season begins in April.
It said the operators have commenced with their on-the-job training, which was designed to enable the operating of ship-to-shore cranes and rubber tyred gantry (RTG) cranes. Ship-to-shore crane training would take six weeks, while the RTG training would take three months.
NCT Senior Operations Manager Malixole Mahobe said at the time that this boost in operator capacity would enhance the terminal’s productivity, which would, in turn, attract demand. “We are excited at the prospects”. Last year, the Eastern Cape Container Terminals handled higher citrus volumes than the previous three years, with a volume increase of 12%.”
Paul Makube, Senior Agricultural Economist, FNB Commercial said the additional service, which entails running every Tuesday from the end of May to the beginning of September, was well-timed ahead of the citrus export season.
"Citrus is a flagship agriculture export for South Africa (SA), accounting for 6.3% and 24% of total SA agriculture gross producer value (GPV) and horticulture industry GPV respectively at a GPV of R26 billion during the 2021/22 season. The industry has expanded exponentially over the past ten years with planted area increasing by 67% during this period through investment of an estimated R170 billion that includes research and development in terms of adopting on new technologies and cultivars. We expect a significant growth in volumes of produce from the citrus sector in the next few years given the current estimates that show a non‑bearing equivalent (still to bear fruit) of about 17%, 43%, 31%, and 21% of oranges, soft citrus, lemons, and grapefruit, respectively. So, an improved logistics environment with fruit delivered on time in export markets bodes well for the sustainability of the industry. Expansion of fruit exports will contribute positively to the country’s balance of payments in terms of export earnings," Makube said.
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