Last week the EU's standing committee on plant health decided not to ban SA's oranges and other fruits after an outbreak of a fungal infection called Citrus Black Spot (CBS) last year.
The disease leaves unsightly black spots on the skins of oranges, but is not harmful to humans.
However, the EU has decided to impose stricter conditions on the importation of South African fruit and should these not be met a full ban could be implemented.
SA exports about R8bn worth of citrus fruit to the EU every year. This supports about 120,000 direct and indirect jobs in the sector.
Spain is a fierce competitor for the lucrative market as it seeks to overcome its own economic troubles that include a high youth unemployment rate and a need to improve its own balance of payments.
Traditionally SA supplies citrus fruit to the EU during that continent's winter months, however, October is where the SA and Spanish harvesting seasons overlap.
Spain also wants to extend its harvesting seasons and is lobbying hard within the EU to cut down on imports of citrus fruit.
Citrus Growers Association Chief Executive Justin Chadwick said the decision brought certainty to the industry.
"Ominously however, the decision does leave room for additional measures to be imposed after five interceptions. While onerous, the fruit-testing requirements, both in the orchard and packhouse, are within our industry capacities," he said.
Chadwick said while the targeting of specific high-risk fruit instead of a uniformly applied method was a progressive move, some fruit such as early Valencias (oranges) would be unfairly affected as only the late crop poses a higher risk of noncompliance. He said the long-term prognosis for the industry remained in the balance.
"The South African citrus industry had gone to great lengths and excessive cost to demonstrate their commitment and respect towards the European position on CBS - including testing regimes and a comprehensive risk management process. This is simply not economically sustainable nor fair as SA has been singled out for special treatment by the EU in this regard."
Nedbank Capital Global Commodity Finance Africa Head Zhann Meyer said that the possibility of a ban directly affected interest rates and the ability of a farmer to raise capital. "The EU is a premium market. If a farmer cannot access that market because of CBS or a ban being imposed then the risk premium rises as he will have to find an alternative market that accepts poorer quality fruit," he said
The Citrus Growers' Association had done its job in ensuring that farmers had their orchards inspected and met conditions to eliminate CBS. However, he believed the South African government could have done more to lobby the EU.
Democratic Alliance agriculture spokeswoman Annette Steyn said last year she had urged former agriculture minister Tina Joemat- Pettersson to prioritise animal disease and pest-control measures.
Source: Business Day via I-Net Bridge
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