Exporters want help with EU’s rules on citrus

Just weeks ahead of the start of export season, the Citrus Growers Association of SA (CGA) has asked for government assistance in dealing with EU coldtreatment regulations, which they say could ruin the R30bn export industry.

The association says citrus farmers have already incurred additional costs of R200m as a result of the “arbitrary” rules, adding that further costs in the lead-up to the start of the export season in May could place 140,000 jobs at risk.

The EU is among SA’s biggest citrus export markets, accounting for 40% of orange shipments, according to SA’s National Agricultural Marketing Council.

“Political intervention at a ministerial level is required to ensure the major threat that the new regulations pose to the upcoming 2023 citrus season is resolved as a matter of priority,” said Justin Chadwick, the CEO of the CGA. “With the export of oranges starting in May, we still have a short window to rescue this serious situation.”

The CGA called for the estabFinance

lishment of a World Trade Organization panel to adjudicate on the new false coddling moth regime governing EU imports of oranges from SA.

The false coddling moth, also known as thaumatotibia leucotreta, can cause damage to more than 70 host crops, including roses, citrus and maize.

New EU cold storage laws require imports of citrus fruit to undergo specified mandatory cold treatment processes and pre-cooling steps for up to 25 days before consignments are shipped to stave off the moth.

However, escalating loadshedding is impeding the ability of fruit producers to irrigate their crops and is also a big threat to the cold storage chain required to keep produce in mint condition for export markets.

COLD TREATMENT

Characterising the stringent cold treatment prescribed within the new regulations as contrary to scientific evidence, the CGA said convening a WTO panel was the only option to put a stop to “what is clearly nothing more than a politically motivated move by unions within the Spanish citrus industry” to destroy the businesses of thousands of local growers and the livelihoods they support.

The CGA said a recent study by the Bureau for Food and Agricultural Policy estimates that additional costs and loss of income will amount to more than R500m this year if EU authorities continue to enforce the new regulation. The study found investment of almost R1.4bn in cold storage technology and capacity will be required to enable full compliance.

The department of trade, industry & competition lodged a dispute at the WTO on the matter last year, but the situation remains unresolved.

NO PROGRESS

Despite presenting clear evidence that SA’s present false coddling moth risk management systems already ensure that 99.9% of oranges entering the EU are pest-free, there has been no progress when it comes to reaching mutually agreed concessions on the new regulations, the CGA said.

Just two false coddling moth interceptions were detected in more than 350,000 tonnes of oranges shipped to the EU in 2022, it added.

“We understand the matter was also raised during last week’s high-level engagements between senior EU and SA government officials with no positive outcome,” said Chadwick.

“We have therefore written to minister [Ebrahim] Patel with an urgent appeal to call for the establishment of a WTO panel to adjudicate on the matter.”