As the citrus season approaches, a looming crisis threatens the livelihoods of approximately 35,000 workers in South Africa's citrus industry. This potential job loss stems from a hefty 30% tariff imposed by U.S. President Donald Trump on South African citrus imports. The Southern African Citrus Growers Association (SKV) has raised alarms, urging the South African government to engage in immediate negotiations with the United States for tariff reductions or exemptions specifically for citrus products.
According to the SKV, the 30% tariff could render South African citrus uncompetitive, especially since competitors from other regions, such as South America, face only a 10% tariff. This disparity could severely impact farms and rural economies reliant on citrus production, particularly in the Western and Northern Cape provinces.
Gerrit van der Merwe, chairman of the SKV and a citrus farmer in the Olifants River Valley, emphasizes the critical situation. "Although South Africa exports only about 5% to 6% of its citrus to America, many rural communities, like Citrusdal, rely heavily on these exports. The economic heart of Citrusdal is at risk, and the impending tariffs could lead to increased unemployment or even an economic collapse in such towns. There is immense anxiety in our communities," he stated.
The SKV's call for action comes as the additional tariff will impose an extra cost of $4.25 (approximately R82.72) per 4 kg carton of South African citrus in the U.S. market. This increase could deter American consumers from purchasing South African products, which might lead to significant financial losses for farmers.
Dr. Boitshoko Ntshabele, the SKV's CEO, argues for the urgency of government intervention. "Citrus is not manufactured in a factory. South African farmers are not competing with American farmers; rather, our high-quality products keep American consumers interested when their domestic citrus is out of season. This ultimately benefits American farmers when our season ends," he explained. He also highlighted the importance of citrus in the healthy diets of Americans, warning that tariffs on seasonal fresh products would likely result in price increases for U.S. consumers.
In light of these challenges, the SKV insists that the White House should include citrus on the exemption list. "Citrus is seasonal, supports American health, and helps keep food inflation low," Van der Merwe added. The demand for South African citrus in the U.S. has been evident, with exports nearly doubling since 2017, now exceeding 6.5 million cartons.
However, the SKV also points out that the impending tariffs could lead to a need for redirection of large quantities of citrus intended for the American market to other markets, potentially causing oversupply and destabilizing the citrus industry in Southern Africa. "The volumes destined for the U.S. market cannot be easily absorbed elsewhere on short notice. We are already facing very high export tariffs to promising markets like India and China," Ntshabele noted.
While the South African government has announced efforts to diversify export markets targeting Asia, Europe, and the Middle East, the SKV stresses the importance of maintaining existing markets as citrus production is expected to increase significantly in the coming years. The association's goal was to create an additional 100,000 jobs by 2032, driven largely by growth in exports to the U.S. Now, they face not only the potential loss of current positions but also a significant reduction in job creation opportunities.
As the 2025 citrus season approaches, the urgency for a new trade agreement with the United States becomes paramount. However, such agreements can take years to negotiate, and the SKV stresses that time is not on their side. The products are already en route to ports, and immediate action is necessary to prevent a crisis.
The SKV's appeal to the South African government highlights the dire consequences of the tariff on both local economies and the broader agricultural landscape. With the U.S. market being a critical destination for South African citrus, the potential fallout from these tariffs could resonate throughout the entire supply chain, affecting thousands of jobs and livelihoods.
In conclusion, the situation underscores the interconnectedness of global trade and local economies. The SKV's call for government intervention reflects the urgent need to protect not only the citrus industry but also the communities that depend on it. As negotiations unfold, the future of South Africa's citrus exports hangs in the balance, with the livelihoods of many at stake.
