Strong growth with the production of South African citrus, mainly soft citrus, new orange varieties, lemons and limes is estimated to continue in the 2020-21 shipping year, according to a new report from the USDA’s Foreign Agricultural Service.
The expected growth, is based on the increase in area planted, improved yields, high level of new-plantings coming into full production, and the minimal impact of COVID-19 on labor and input supply. The increase is expected to be partially offset by drought conditions in some production areas of the Eastern Cape, and hail damage in some production areas of Mpumalanga, according to the report.
Duty free exports of all citrus types to the United States under the African Growth Opportunity Act reached a peak of 91,402 metric tons in 2020 and are expected to continue their strong annual growth in 2021, as the U.S. is still considered a premium market.
The value of U.S. imports of South Africa citrus totaled $94.9 million, up 72% from $55.3 million in 2019 and up 45% from $65.5 million in 2018.
Citrus in South Africa is grown across the country mainly in the Limpopo, Eastern Cape, Western Cape, Mpumalanga, Kwa Zulu Natal, Northern Cape and North West provinces, according to the report. A total of 233,092 acres was planted to citrus in South Africa in 2020, a 9% increase from 214,507 acres in 2019. This growth trend is estimated to continue in 2021, based on the significant investments and aggressive new plantings of soft citrus, lemons, and new varieties of oranges.
While oranges are the biggest citrus type produced in South Africa and account for 48% of the total citrus area planted, the report said there has been notable growth in the area planted to soft citrus (25%) and lemons/limes (19%). This growth is driven by the attractive investment returns, profit margins from soft citrus and lemon production, and a spike in global demand.