Citrus Semi-annual

An Expert's View about Agriculture and Animal Husbandry in South Africa

Posted on: 29 Jun 2012

South African total citrus exports in 2012 are estimated at nearly 1.5 MMT, representing a five percent increase.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 6/21/2012 GAIN Report Number: South Africa - Republic of Citrus Semi-annual South African Citrus Exports Continue to Grow in 2012 Approved By: Corey Pickelsimer Prepared By: Linda Siphugu Report Highlights: South African total citrus exports in 2012 are estimated at nearly 1.5 MMT, representing a five percent increase compared to 2011 total citrus exports on good weather conditions. Post revised 2011 total citrus exports at 1.42 MMT, which represents a five percent decline from the record export volumes of 1.5 MMT in 2010. The revision comes after hail storms that reduced Navel yields in the Groblersdal and Marble Hall production areas. Executive Summary: Background: South Africa (SA) has moved from 14th place to 13th in world citrus production rankings in the past year. Despite the increased competition in global markets, SA citrus production and exports have been increasing as its industry adopts varieties that are in demand globally and adopts improved management practices to improve fruit quality and expedite delivery to markets. The South African citrus industry considers itself a source of excellent quality fruit in terms of taste, size, and color. Over 60 percent of citrus in SA is grown for export markets, 23 percent is juiced, while 15 percent is sold on the local market. Fifty one percent of South Africa’s citrus exports depart from Durban; eighteen percent transits through the Cape Town port, another percent is shipped through Port Elizabeth and nine percent is shipped from Coega (near Port Elizabeth), with the remaining four percent shipped through Maputo ports. Commodity: Grapefruit, Fresh Production: Post estimates 2012 South African grapefruit production at 390,000 MT, a four percent decline from the previous year, on South Africa’s grapefruit production cycle that exhibits a phenomenon of alternate yields for different years: a low yield year will be followed by a high yield year and 2011 was a high. Post revised 2011 South African grapefruit production at 405,997 MT, an 18 percent increase from the previous year, as yields rebounded from a lower 2010 season. Figure 2. Trend in SA Grapefruit production Source: CGA Grapefruit is mainly grown in Limpopo (3,970 ha), Mpumalanga (2,386 ha) and Kwa-Zulu Natal (1,638 ha) production regions, which are characterized by warm subtropical temperatures favorable for grapefruit production. There has been some limited plantings in the cooler areas of the Eastern Cape (234 ha), Northern Cape (324ha), and Western Cape (21 ha), stimulated by increased market access of grapefruit to the United States and close proximity to the port of Cape Town. The Star Ruby and Marsh are the most popular grapefruit varieties in South Africa. Star Ruby is a seedless variety and has a long harvest season running from April to September. The Marsh variety is cultivated mainly for processing because of its abundant and flavorful juice. Area Planted The industry’s 2011 tree census indicates that 9,477 ha were planted to grapefruit in South Africa, a six percent increase over 2010 on increased demand from Japan coupled with expanded market access to the United States. SA grapefruit exports to the United States increased in 2010, following the USDA’s recognition of several SA production areas as free of citrus black spot disease. Star Ruby is the most globally favored grapefruit variety at 7,076 Ha. Consumption: Post estimates 2012 domestic consumption of fresh grapefruit to remain flat at 5 MT on stable market demand. Post revised 2011 domestic consumption of fresh grapefruit at 4,562 MT as local consumers have not acquired a strong taste for grapefruit. As a result, domestic consumption figures usually remain around 5,000 MT. Grapefruits are expensive, compared to oranges on a per unit basis. Grapefruit is also processed for juice, the majority of which is exported to the European Union (EU). The left over pulp following commercial juice extraction is an important source of grapefruit oil which is used as a flavoring in many soft drinks. The inner peel is a source of pectin and citric acid which are both used by the food industry to preserve fruits, jams, and marmalades. Naringin is also extracted from grapefruit peel, and gives tonic-water its distinctive bitter flavor. Finally, the grapefruit peel oil is used in scented fragrances. Trade: Imports Post estimates 2012 grapefruit imports at 700 MT, on its ability to satisfy domestic market. Although South Africa is not a major grapefruit importer, minimal imports typically come from Israel and Zimbabwe. Israel dominates the market for SA imports and, as a counter season producer, fills the demand gap towards the end of the calendar year. Post revised 2011 grapefruit imports at 645 MT as reported in the GTA. Table 3. South Africa: Grapefruit Import Statistics South Africa Import Statistics Commodity: 080540, Grapefruit Including Pomelos, Fresh Or Dried Year Ending: December Partner country Unit Quantity 2009 2010 2011 Israel MT 336 409 234 Zimbabwe MT 480 151 210 Spain MT 39 19 138 Other not listed MT 144 20 63 Grand total MT 999 599 645 Source: GTA (Note: In the PSD tables, quantities below 1,000 MT will be displayed as zero.) Exports Post estimates 2012 grapefruit exports at 210,000 MT, a three percent decline on expected lower production due to lower yields. Post revised 2011 grapefruit exports at 217,402 based on industry reports, a three percent increase on increased available supplies, as 2011 was a larger than expected production year. The industry figures for 2011 grapefruit exports are slightly different from the GTA number (217,233 MT), but both numbers indicate an increase in 2011 grapefruit exports. Post recognizes this difference and has decided to use the industry figure in the PSD with the expectation that the industry figures reflect the most current situation. However, the GTA table shows the individual markets for SA exports. Japan and Europe are the SA’s major export markets. South African grapefruit enter the European Union duty-free under their Trade Development Cooperation Agreement (TDCA), while Japan imposes a ten percent Most Favored Nation (MFN) duty on SA grapefruit. Russia imposes a five percent or $27.96 /ton (whichever is the greater) while Canada, Hong Kong, and the UAE apply a zero percent MFN tariff on South African grapefruit exports. South African grapefruit can enter the United States duty free under AGOA. Table 4. South Africa: Grapefruit Export Statistics South Africa Export Statistics Commodity: 080540, Grapefruit Including Pomelos, Fresh Or Dried Year Ending: December Partner country Unit Quantity 2009 2010 2011 Netherlands MT 72,932 50,098 59,795 Japan MT 91,834 45,553 55,750 Russia MT 19,509 17,424 23,318 Mozambique MT 13,059 12,820 11,376 UK MT 14,104 11,218 10,882 United States MT 92 184 275 Others not listed MT 159,169 42,313 55,837 Grand Total MT 370,699 179,610 217,233 Source: GTA Table 5. South Africa: Production, Supply, and Distribution Data Grapefruit, Fresh South A 2009/2010 2010/2011 2011/2012 frica M ar Begin: arket Year Begin: M Market Yearket Year Begin: M Mar ar 2010 Mar 2011 2012 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 9,076 8,978 9,170 9,477 9,250 9,900 (HECTARES) Area Harvested 9,076 8,478 9,170 8,571 9,250 8,600 (HECTARES) Bearing Trees 8,478 8,478 8,500 8,571 8,600 8,600 (1000 TREES) Non-Bearing Trees 598 598 700 993 800 1,000 (1000 TREES) Total No. Of Trees 9,076 9,076 9,200 9,564 9,400 9,600 (1000 TREES) Production 343 343 370 406 360 390 Imports 0 0 0 0 0 0 (1000 MT) Total Supply 343 343 370 406 360 390 (1000 MT) Exports 187 187 238 217 230 210 (1000 MT) Fresh Dom. Consumption 5 5 5 5 4 5 (1000 MT) For Processing 151 151 127 184 126 175 (1000 MT) Total Distribution 343 343 370 406 360 390 (1000 MT) TS=TD 0 0 0 Commodity: Oranges, Fresh Production: Post estimates SA’s 2012 orange production (Valencia and Navel) at 1.45 MMT on good weather conditions coupled with the recovery in the previously hail-affected Groblersdal and Marble Hall production areas. Post revised SA’s 2011 orange production (Valencia and Navel) at 1.43 MMT based on industry reports. This is a two percent decline compared to 2010 production volumes on poor weather conditions that affected some of the citrus producing regions. Hail storms in the Senwes (Groblersdal and Marble Hall) areas lowered yields as it occurred during the flowering stage. Although the Orange River region was also negatively affected floods in December 2010, the impact on citrus was minimal. Figure 3. Trend in SA Orange production Source: CGA South African oranges are primarily comprised of two varieties; Valencias and the Navels. Producers prefer Valencia oranges over Navels for their growing characteristics that enable higher yields and maintain a longer shelf life than Navels. The two leading regions for Valencia production are Limpopo and Mpumalanga (although Valencia oranges are also grown in Eastern Cape and Western Cape on a smaller scale). Approximately 49 percent of Valencias are grown in Limpopo which is characterized by warm to hot climatic conditions needed for Valencia production. The main cultivars for Valencias are Delta and Midnight, and the harvest season extends from July to September. The three leading regions for Navel production are Eastern Cape, Western Cape, and Mpumalanga. Unlike Valencia oranges, Navels require cool growing conditions as can be found in the provinces above. The main cultivars for Navels are Palmer, and the harvest season extends from June to July. Area Planted The 2011 tree census indicates that 40,230 ha were planted to oranges in South Africa, a four percent increase, to satisfy export demand. Post revised area planted to oranges 39,208 ha in 2010, based on official statistics, on increased plantings to Valencia oranges. Consumption: Post estimates 2012 fresh local orange consumption to remain flat at 138,500 MT on static consumer demand. Post revised 2011 domestic consumption to 138,000 MT, based on industry reports. Fresh oranges are popular in South Africa and are widely consumed. Oranges form part of the national food basket of goods which is monitored quarterly by the South African National Marketing Council (NAMC) to track food price inflation. The Johannesburg and Tshwane Fresh Produce markets rank fresh oranges among the top consumed fruits in South Africa and the price for a 15 kilogram bag costs R61. Oranges destined for the local market are consumed as fresh fruit or processed as orange juice. Trade: Imports Post estimates 2012 orange imports at 900 MT based on South African producers’ ability to satisfy domestic demand but imports from Israel do come in the country around the months of November and December to close supply gaps and satisfy year long demand. Post revised 2011 orange imports at 808 MT as reported in the GTA. Table 6. South Africa: Orange Import Statistics South Africa Import Statistics Commodity: 080510, Oranges, Fresh Or Dried Year ending: December Partner country Unit Quantity 2009 2010 2011 Zimbabwe MT 1,140 1,022 429 Spain MT 201 0 152 Israel MT 355 187 107 Other not listed MT 3 46 120 Grand total MT 1,699 1,255 808 Source: GTA (Note: In the PSD tables, quantities below 1,000 MT will be displayed as zero.) Exports Post estimates orange exports at 1.04 MMT, based on industry reports of increased production, stimulated by the recovery of the Senwes and Eastern Cape production region. Post revised 2011 orange exports at 942,000 MT, a decrease of ten percent when compared to the 2010 export quantities, on lower exportable supplies resulting from hail damage in production areas. Although the EU has been SA’s traditional market, industry reports show that citrus shipments are increasing to new markets like the Middle East and Russia. Industry officials posit that these markets have recovered from the global recession, while sluggish demand persists in Europe, the UK, and Japan. South African oranges enter the European Union duty-free under the TDCA. South African oranges enter the U.S. through both the African Growth and Opportunities Act (AGOA) and the General System of Preferences (GSP). Industry figures for 2011 orange exports are slightly different from the GTA number but both numbers indicate a decline in 2011 orange exports. Post recognizes this difference and has decided to use the industry figures in the PSD with the expectation that the industry figures reflect the most current situation. However, the GTA table shows the individual markets for SA orange exports. Table 7. South Africa: Orange Export Statistics South Africa Exports Statistics Commodity : 080510, Oranges, Fresh Or Dried Partner Unit Quantity 2009 2010 2011 Netherlands MT 151,982 197,813 175,039 Russia MT 98,490 138,939 122,986 Saudi Arabia MT 72,204 88,914 89,456 United Arab Emirates MT 100,743 104,064 78,660 United Kingdom MT 71,441 69,711 66,869 Hong Kong MT 43,426 41,727 49,252 United States MT 28,053 34,813 36,897 Other not listed MT 467,623 433,630 365,084 Grand total MT 1,033,962 1,109,611 984,243 Source: GTA Table 8. South Africa: Production, Supply, and Distribution Data Oranges, Fresh South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Mar Market Year Begin: Mar Market Year Begin: Mar 2010 2011 2012 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 39,618 39,208 40,000 40,230 40,300 41,400 (HECTARES) Area Harvested 39,618 37,156 40,000 38,316 40,300 39,500 (HECTARES) Bearing Trees 37,156 37,156 38,250 38,316 39,100 39,500 (1000 TREES) Non-Bearing Trees 2,462 2,462 2,800 2,512 3,100 2,800 (1000 TREES) Total No. Of Trees 39,618 39,618 41,050 40,828 42,200 42,300 (1000 TREES) Production 1,428 1,459 1,350 1,428 1,400 1,450 (1000 MT) Imports 1 1 1 0 1 0 (1000 MT) Total Supply 1,429 1,460 1,351 1,428 1,401 1,450 (1000 MT) Exports 1,045 1,045 955 942 1,015 1,040 (1000 MT) Fresh Dom. Consumption 135 135 136 138 136 140 (1000 MT) For Processing 249 280 260 348 250 270 (1000 MT) Total Distribution 1,429 1,460 1,351 1,428 1,401 1,450 (1000 MT) TS=TD 0 0 0 Commodity: Orange Juice: Production: Post estimates 2012 oranges destined for processing to decline to 270,000 MT, on lower available supplies due to high export demand for fresh oranges. Post revised 2011 oranges destined for processing at 348,000 MT, a 24 percent increase from the previous year on poor export performance for fresh oranges, which caused producers to divert their fresh produce to processing. Oranges destined for processing compete against oranges destined for the fresh export market and producers receive a higher premium for fresh fruit in export markets hence the industry’s priority to exporting fresh fruit and diverting whatever remains to processing. Industry statistics for orange juice (200911, 200912, and 200919) are largely unavailable in SA given the highly competitive nature of the industry. SA has approximately 16 fruit juice processors with three of the largest facilities in Limpopo and Eastern Cape. The production, supply, and distribution data are comprised of information extracted from various sources and represent Post’s best effort to estimate statistics for frozen orange juice concentrate. Data were derived from visits to citrus processors and information extracted from sources primarily focused on ready to drink juices in domestic market such as Euromonitor. Consumption: Post expects 2012 domestic consumption for orange juice at 7,400 MT as consumers switch to lower cost beverages as the South African Rand has been weak against other international currencies for much of the year. Post estimates 2011 domestic consumption of orange juice 19,900 MT on increased available supplies. In the local market, orange juice is used as a blend with other fruit juices and is also sold to local dairy processors for products like drinkable yoghurt. SA oranges have a high acid to sugar ratio which causes juice makers to blend orange juice with other fruits. The most popular juice brands in SA are Ceres Fruit juice, Liqui-Fruit, and Clover Beverages. Ceres Fruit juice was a leading brand with a retail market share at 15 percent, followed by Liqui-Fruit at 11 percent in 2009. The rising incomes of an expanding middle class, the lower relative prices of substitute fruit juice, and the consumer’s preference for its taste have driven the demand for reconstituted juice in SA. Trade: Imports Post estimates 2012 SA imports of frozen orange juice concentrate at 1,200 MT in 2012, as South Africa produces sufficient supplies to meet domestic consumer demand. Post revised 2011 imports at 1,263 MT as reported in the GTA. Exports Post estimates 2012 exports of frozen concentrate orange juice at 18,000 MT. The main export markets for SA orange juice are Netherlands, and other African markets like Zimbabwe; Mozambique and Angola. Post revised 2011 exports at 17,891 MT as reported in the GTA. Table 9. South Africa: Production, Supply, and Distribution Data O range Juice South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Apr 2010 Market Year Begin: Apr 2011 Market Year Begin: Apr 2012 USDA O New P USDA ost P USDA ost fficial O Newfficial O New Post fficial Deliv. To Processors 249,000 280,000 260,000 348,000 250,000 270,000 (MT) Beginning Stocks 13,029 13,029 6,289 7,106 589 1,898 (MT) Production 22,410 25,200 23,400 31,320 23,000 24,300 (MT) Imports 398 425 400 1,263 450 1,200 (MT) Total Supply 35,837 38,654 30,089 39,689 24,039 27,398 (MT) Exports 17,548 17,548 19,500 17,891 18,000 18,000 (MT) Domestic Consumption 12,000 14,000 10,000 19,900 6,000 7,400 (MT) Ending Stocks 6,289 7,106 589 1,898 39 1,998 (MT) Total Distribution 35,837 38,654 30,089 39,689 24,039 27,398 (MT) TS=TD 0 0 0 Comments Commodity: Tangerines/ Mandarins, Fresh Production: Post estimates 2012 SA soft citrus production at 155,000 MT, on good weather conditions in the Eastern Cape, which is a major production region. Post revised 2011 soft citrus production at 139,540 MT, a four percent decline when compared to the previous year, on drought in the Eastern Cape. Soft citrus grows best in the cool climatic conditions of the Eastern Cape and Western Cape regions. The SA soft citrus cultivars are Clementines, Mandarins, Naartjie, and Satsuma, with Mandarins being the most popular cultivars. Figure 4. Trend in SA Soft Citrus production Source: CGA Area Planted The 2011 industry census indicates that 5,200 ha were planted to soft citrus, a five percent increase on growing consumer demand in the United States. Of the citrus types, soft citrus is attractive to producers as it has very good export margins as consumer prefer its easy peeling and seedless characteristics. Post revised 2011 area planted to soft citrus at 4,960 ha based on industry reports. Although the cost of establishing new orchids in increasing, the returns from the growing demand in the United States and other markets is offsetting these costs. Industry officials expect to continue expanding the area planted to soft citrus over the next three to five years. Consumption: Post estimates local consumption of soft citrus at 10 MT in 2012 as domestic demand remains flat. The small size of soft citrus along with its easy-peeling nature and seedless characteristics make soft citrus a desirable snack for all consumers. The average price in local markets for soft citrus was R4,082 per ton in 2011 compared to R5,618 per ton in export market at the same period. Post revised 2011 local consumption to 10,283 MT, based on industry reports. Trade: Imports Post estimates 2012 soft citrus imports at 900 MT, as South Africa can meet its domestic demand. Imports from Israel do enter during the months of November and December to provide year-round availability for some retailers. Post revised 2011orange imports at 846 MT as reported in the GTA. Table 10. South Africa: Soft Citrus Import Statistics South Africa Import Statistics Commodity: 080520, Mandarins (Tang & Sats) Clementines & Wil- Kings &Sim Citrus Hybrids, Fresh/Dried Year Ending: December Partner country Unit Quantity 2009 2010 2011 Israel MT 364 548 574 Spain MT 171 181 272 Others not listed MT 125 22 0 Grand Total MT 660 751 846 Source: GTA (Note: In the PSD tables, quantities below 1,000 MT will be displayed as zero.) Exports Post estimates 2012 soft citrus at 115,000 MT, an 11 percent increase from the previous year on increased exportable available supplies. Post revised 2011 soft citrus exports at 103,618 MT, an eight percent decline from the previous year, on drought which negatively impacted production volumes. Of all the SA citrus fruit, soft citrus had the highest export profit margin of R5,618 per ton in 2011. The United Kingdom remains the leading importer of soft citrus from South Africa, but producers are focusing on the Middle East and Russia as growing markets for South African soft citrus. Growers also consider the United States an increasingly important market for future growth. EU member states impose a 1.6 percent preferential tariff for South Africa for all naartjies originating from South Africa. Russia imposes a five percent or $41.93 /ton (whichever in the greater) general tariff Most Favored Nation (MFN) while Canada, Hong Kong, the UAE, and Saudi Arabia impose a zero percent MFN duty. South African naartjies enter the U.S. duty-free as a result of AGOA preferences. Industry figure for 2011 soft citrus exports are slightly different from GTA numbers; however both numbers indicate a decrease in 2011 exports. Post recognizes this difference and has decided to use the industry figures in the PSD on view that they reflect the current situation, GTA table help to show the individual markets for SA exports. Table 11. South Africa: Soft Citrus Export Statistics South Africa Exports Statistics Commodity: 080520, Mandarins (Tang & Sats) Clementines & Wil- Kings & Sim Citrus Hybrids, Fresh/Dried Year Ending: December Partner Unit Quantity 2009 2010 2011 United Kingdom MT 55,585 45,266 40,802 Netherlands MT 14,798 18,932 17,879 Russia MT 8,430 12,136 12,614 Hong Kong MT 8,310 5,207 6,904 United States MT 6,427 8,448 4,236 Others not Listed MT 33,589 25,889 25,510 Grand Total MT 127,139 115,878 107,945 Source: GTA Table 12. South Africa: Production, Supply, and Distribution Data Tangerines/Mandarins, Fresh South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Market Year Begin: Market Year Begin: Feb 2010 Feb 2011 Feb 2012 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 4,960 4,960 5,000 5,200 5,040 5,300 (HECTARES) Area Harvested 4,960 4,779 5,000 4,609 5,040 4,800 (HECTARES) Bearing Trees 4,779 4,779 4,800 4,609 4,820 4,800 (1000 TREES) Non-Bearing Trees 181 181 200 591 250 800 (1000 TREES) Total No. Of Trees 4,960 4,960 5,000 5,200 5,070 5,600 (1000 TREES) Production 146 146 155 140 160 155 (1000 MT) Imports 0 0 0 0 0 0 (1000 MT) Total Supply 146 146 155 140 160 155 (1000 MT) Exports 113 113 120 104 125 115 (1000 MT) Fresh Dom. Consumption 9 9 9 10 9 10 (1000 MT) For Processing 24 24 26 26 26 30 (1000 MT) Total Distribution 146 146 155 140 160 155 (1000 MT) TS=TD 0 0 0 Commodity: Lemons/ Limes, Fresh Production: Post estimates 2012 lemon production at 260,000 MT, on a good weather conditions in the Eastern Cape, which is a major production region. Post revised 2011 lemon production at 257,323 MT, a 19 percent increase from the previous year, on more trees coming to full bearing potential. Figure 5. Trend in SA Lemon production Source: CGA Lemons grow best in the cool climatic conditions of Eastern Cape, and the most popular cultivar is Eureka. Some lemon producers have tried producing a seedless lemon variety of Eureka to appeal to foreign consumers, but the world’s first seedless lemons developed in South Africa have reportedly yielded disappointing results. The seedless variety of Eureka has low yields, is susceptible to root rot, and is costly in terms of production. Area Planted The 2011 industry tree census indicates that 4,724 ha were planted to lemons. Post expects area planted to lemons to increase on strong demand from Middle Eastern countries. Post revised area planted to lemons in 2010 at 4,449 ha based on industry reports of increased plantings, which almost doubled in 2010, and increased as well in 2011. Lemons are favored by producers as they have higher margins in export markets. Consumption: Post estimates 2012 local domestic consumption of lemons at 11,000 MT on stable domestic demand. Post revised 2011 domestic consumption at 12,644 MT based on industry reports. Lemons are used as flavorings for grilled or fried poultry and fish dishes. Lemon juice can also be used in the drink, cleaning and pharmaceutical industries. In the food industry, lemon juice is used as a flavor agent, in cakes, tarts, biscuits, candies, ice creams and salad dressing sauces while in the drink industry, it used to make lemonade, smoothies, juices and liquors. In the cleaning industry, lemon juice has been used as a degreaser and disinfectant, due to its high concentration of citric acid, which can inhibit the proliferation of some molds and bacteria. Trade: Imports Post estimates 2012 imports for fresh lemons at 200 MT, on SA’s ability to satisfy domestic. Post revised 2011 lemon imports at 235 MT, as reported on the GTA. Table 13. South Africa: Lemon Import Statistics South Africa Import Statistics Commodity: 080550, Lemons (Citrus Limon/Limonum) & Limes (Citrus Aurantifolia/Latifolia), Fr/Dried Year ending: December Partner Unit Quantity 2009 2010 2011 Zimbabwe MT 0 8 154 El Salvador MT 0 22 79 Israel MT 46 4 0 Other not listed MT 50 20 2 Grand Total MT 96 54 235 Source: GTA (Note: In the PSD tables, quantities below 1,000 MT will be displayed as zero.) Exports Post expects 2012 lemon exports at 166,000 MT, on good weather conditions in the Eastern Cape, which is the primary growing area. The Middle East is a major importer of SA lemons as Middle Eastern populations make extensive use of lemons for culinary use and cultural occasions. In 2011, 36 percent of SA exports were destined for the Middle East with United Arab Emirates (UAE) being the leading importer. Post revised 2011 lemon exports at 162,000 MT, based on industry reports, and is a 12 percent increase above the previous year. South African lemons do not have preferential access to the EU. Lemons did not make the list of products whose tariffs were to be reduced under the TDCA. This may have been due to EU member state classification of lemons as a sensitive product. Limes however enter the EU through preferential tariffs. In the case of the UAE, Hong Kong and Kuwait, the Most Favored Nation (MFN) tariffs apply. Table 14. South Africa: Lemon Export Statistics South Africa Exports Statistics Commodity: 080550, Lemons (Citrus Limon/Limonum) & Limes (Citrus Aurantifolia/Latifolia), Fr/Dried Year Ending: December Partner country Unit Quantity 2009 2010 2011 Russia MT 28,031 21,896 27,186 United Arab Emirates MT 131,196 28,370 25,009 Saudi Arabia MT 64,324 19,056 20,652 Netherlands MT 13,855 21,186 19,193 United Kingdom MT 15,889 17,103 14,316 Hong Kong MT 10,054 8,584 10,431 United States MT 0 46 0 Others not Listed MT 133,596 34,365 48,436 Grand Total MT 396,945 150,606 165,223 Source: GTA The industry figures for 2011 lemon exports are slightly different from the GTA number, but both show an increase for lemon exports. Post recognizes this difference and has decided to use the industry figures in the PSD on view that they reflect the current situation. However, the GTA table helps to show the individual markets for SA exports. Table 15. South Africa: Production; Supply and Distribution Data Lemons/Limes, Fresh South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Market Year Begin: Market Year Begin: Jan 2010 Jan 2011 Jan 2012 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 4,449 4,449 4,460 4,726 4,480 4,900 (HECTARES) Area Harvested 4,449 4,196 4,460 4,183 4,480 4,200 (HECTARES) Bearing Trees 4,196 4,196 4,250 4,183 4,300 4,200 (1000 TREES) Non-Bearing Trees 252 252 400 543 450 600 (1000 TREES) Total No. Of Trees 4,448 4,448 4,650 4,726 4,750 4,800 (1000 TREES) Production 218 216 230 257 240 260 (1000 MT) Imports 0 0 0 0 0 0 (1000 MT) Total Supply 218 216 230 257 240 260 (1000 MT) Exports 145 145 160 162 170 166 (1000 MT) Fresh Dom. Consumption 11 11 11 13 11 11 (1000 MT) For Processing 62 60 59 82 59 83 (1000 MT) Total Distribution 218 216 230 257 240 260 (1000 MT) TS=TD 0 0 0 Policy: United States cold-steri protocol The cold-steri protocol for SA citrus destined for the United States still requires 24 days to control false coddling moth. Industry officials maintain that this provision of 24 days has resulted in losses between six and 15 percent of a shipment due to cold damage. Under the 22 days cold storage requirement, the losses were limited to three percent. EU ruling on labeling of soft citrus: A recent EU ruling will force exporters and their retail customers to label their soft citrus more clearly in three categories – namely Satsuma, clementines and mandarins. The ruling came after EU officials clamped down on the labeling of Nadorcott mandarins as Clementines. South Africans, and other southern hemisphere suppliers, will have to comply from the start of the season. Labels must accurately display clementines, mandarin or Satsuma, or the actual hybrid. In accordance with the EU marketing standard for citrus fruit hybrids of mandarins – products such as Nadorcott – must be labeled either as the hybrid ‘Nadorcott’ or as mandarins, and cannot be labeled, packed or sold as either clementines or Satsuma. Nadorcott mandarins out of South Africa are mostly sold under the label clementines or as ClemenGold, for which special quality standards have been agreed and which has become very popular with British consumers. Table 16. South Africa: Tariffs on Citrus Fruit Fruit type Unit General EU EFTA SADC Citrus kg 5% free 5% Free
Posted: 29 June 2012

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