Agriculture, Economic Development and Tourism
The South African Citrus Growers’ Association (CGA) has warned that packed cartons destined for the US may go unsold if the proposed 30% tariff is implemented:
(a) What mitigation strategies has his Department put in place to support the affected farmers and to redirect the surplus produce to alternative markets and (b) what impact will the tariff have on the sustainability of local citrus growers and employment in the agricultural sector in the province?
(a) The Department supports the response measures by the Department of Trade, Industry and Competition (DTIC). The Western Cape, including other stakeholders, continue to supply timely data and analytical support to strengthen South Africa’s position in national trade negotiations. Diversification of markets to reduce the risk linked to high tariffs in the US market is also among the strategies. This will be accelerated through the export promotion support provided by Wesgro, the Western Cape Department of Agriculture (WCDoA) in collaboration with the industry. In addition, the department will continue its support to the industry to be able to comply with various market requirements of importing countries. The Department continues to assess implications at farm level in collaboration with the industry. It must be noted that some growers managed to accelerate shipment to the US ahead of the deadline, which lessened effects on the current season. Regarding the surplus citrus, the industry has already explored various options before wastage, among them was the donations through the CGA’s Orange Heart initiative.
(b) The Western Cape is one of only two provinces in South Africa that export citrus to the US market. In the Western Cape, approximately 19 332 hectares are under citrus production, employing about 35,000 persons at farm level. Therefore, losing the US market will have some major implications for employment in the next citrus season. The counter-seasonality differences between the Northern and Southern hemispheres should count on South Africa’s favour, as its exports to the US fill the gap in citrus i.e. when the US local farmers are out of season, emphasising the point that South African citrus are not directly in competition with the US producers, instead, are complementary. In addition to the various strategies mentioned in 15 (a), the Department will also support measures to work with the Department of Employment and Labour on ways to mitigate potential job losses, using existing instruments within its entities that can be adjusted to respond to the current challenges.
