South African Citrus Production Rises 5%

PRETORIA - May 29/02 - SNS -- Total citrus production for South Africa in 2002 was 1.6 million metric tons (MT), 5% higher than last year.

The main citrus crop in South Africa is fresh oranges, followed by processed oranges, grapefruits, and lemons. Orange production increased 6%, lemons increased 11%, and grapefruit production fell 2.5%. The USDA expects export figures to remain constant.

The increase in production is attributed to the positive effects of enough soil moisture content following favorable weather, sunlight, increased area and improved cultivars in the citrus growing areas.

South Africa's citrus industry is lobbying the government to establish domestic support schemes, as well as export enhancement programs to enable them meet the increasing strict phytosanitary requirements of importers and compete on a more level playing field with other suppliers.

South Africa's orange industry is primarily dominated by Valencias, followed by Delta's, Midnights and Navels. Citrus yields in mature orchards average about 40 to 60 tons per hectare. The devaluation of the Rand and improved export quality control are expected to bring better producer prices. Total orange production was 1.25 million MT.

Grapefruit production is suffering from weak demand and oversupply in international markets. The prospect for more processing of grapefruit has increased as a result of the continued decline in exports since 2000. The one exception is increased planting of Star Ruby variety, which has enjoyed good demand in the international market. Currently, its market share is 6.5% compared to 7.3% for Marsh grapefruit. Grapefruit production was only 190,000 MT, as some growers are switching to sugarcane.

South Africa exports a large volume of lemons, while a small percentage is sold on the fresh produce domestic markets. About 40% of all lemons are processed while around 45% are exported annually. Fruit prices in 2002 are expected to increase from last year, because of an anticipated improvement in the quality of production. Total production was 175,000 MT.

South Africa's exports are expected to remain relatively unchanged in 2002. In 2001, exports increased 10% as a result of strong demand and a beneficial exchange rate. About 900,000 MT of South Africa's citrus fruit, 540,000 MT of oranges, 120,000 MT of grapefruit, and 90,000 MT of lemons are exported annually. South Africa's export period for citrus is from April to October. Its main competitors are Argentina, Chile and Australia during the principal season, and Israel, Spain, Egypt and the US towards the end of the marketing season.