South Africa citrus production and exports will continue to rise in 2020, according to a new report from the U.S. Department of Agriculture’s Foreign Agricultural Service.
The 27-page report said that South African production and export of soft citrus, lemons and limes is expected to continue its strong growth in the 2020 marketing season, based on new plantings and recent plantings coming into greater production.
A total of 202,000 acres of citrus was planted in South Africa in 2018, up 8% from 2017, according to the report.
“This growth trend is expected to continue based on the significant investments and aggressive new plantings of soft citrus, lemons, and new varieties of oranges,” the USDA said.
The report said Limpopo province is the largest citrus production area accounting for 43% of the total area planted, followed by the Eastern Cape (26%), Western Cape (18%), Mpumalanga (8%), Kwa Zulu Natal (3%), and Northern Cape (1% percent).
“While oranges are the biggest citrus type produced in South Africa and account for 53% of the total citrus area planted, there has been notable growth in the area planted to soft citrus and lemons/limes,” the report said, noting good profit margins from soft citrus and lemon production.
Export outlook
The USDA report said global exports of lemons and limes is forecast to increase by 8% to 370,000 metric tons in the 2019-20 marketing year. That compares with 343,000 metric tons in 2018-19.
Meanwhile, the export of oranges is forecast to increase by 11% to 1.25 million metric tons in 2019-20. The European Union remains South Africa’s largest export market for oranges, accounting for 40% of the total export market. The report said exports to Asia and the Middle East have grown ssteadily, and exports to the U.S. are expected to continue to grow based on expanding demand and the duty free access under the African Growth and Opportunity Act.
The USDA said a gradual shift from oranges to soft citrus exports is expected over time, as South African farmers supplying the U.S. market have been replanting their orchards from oranges to soft citrus in response to market preferences and the higher premium received in the U.S. market.
The report said South African exports of tangerines and mandarins is forecast to increase by 12% to 330,000 metric tons in the 2019-20, compared with 295,000 metric tons in 2018-19.
While the United Kingdom is the leading export market with 30%, the report said exports to the U.S. under the African Growth and Opportunity Act have grown by an average of 15% over the past four seasons, reaching 13,695 metric tons in 2017-18.
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