With the gradual downgrading of the world’s economy, the significances of the pandemic in the entire world is rising daily. To date, there are innumerable deaths and countless affected and along with this, the worldwide lockdown is bringing various kinds of economic squeezes and consequences throughout the globe. South Africa’s fresh fruit industry presently stands as the biggest exporter of agricultural products, especially citrus fruits. The country bestows 52 percent of the total of its agricultural exports and works to represent 28 percent of cumulative employment based on agriculture.
Present Impact of Covid-19 On South Africa’s Citrus Fruit
Due to international lockdown, the present demand for South Africa’s fruit export are not as enormous as it used to be originally. But comparing the exports to any other normal measures, it is still quite substantial.
The export season of the citrus and top fruit industries of South Africa in the year 2020 is facing tremendous uncertain and unpredictable situations owing to the severe and far-reaching regulations imposed by the South African government. The regulations of such kinds are primarily introduced by the government to curb the spread of the Coronavirus.
The CGA identified how the Coronavirus outburst poses as a recent challenge on the fresh produce exporters across the planet. They have also pointed out that the way China’s logistic services are soon expected to operate on full energy is quite encouraging. Over the past two weeks, its cargo percentages and ship calls are gradually coming into its original form. On the other hand, the CGA informs that the pandemic outbreak across the European Union has caused the citrus fruit exports, which form the largest export market for South Africa, persists to remain a serious concern.
With limited operational regions with only Hex River and Berg River grape regions, it still has to carry on packing for few more weeks with the table grape and stonefruit divisions which are gradually arriving at the last parts of their blooming seasons. It could further result in a decline in demand, along with the shortfall of compartments just as the export season begins in May. Hence, it stands extremely crucial that exporters ascertain the availability of containers before the shipping commences.
On one hand, few other fruits, such as apples and pears have arrived at their zenith of harvesting weeks, whereas the citrus fruit industry has just commenced harvesting. The avocado industry is also facing similar conditions arriving at its first containers of the season and stepping to the major demands of Europe and the UK.
Even the Citrus Growers’ Association (CGA), admitted that there are innumerable issues that have grown out of the hands of the growers while proclaiming the fruit export prediction for the season. These problems could cause a severe impact on their season.
Upcoming Impact on the Remainder of the 2020 Citrus Season
According to the CGA, the other vital challenges faced by the export departments of South Africa involves the worn-out built and out of service infrastructure of the port. It also includes unsettled and troubled issues of the laborers. All these continue to remain a peril to export quantities, apart from the spurt of coronavirus.
Talking out the recovery factor of such drastic issues, the outcomes of the current scenario in a GDP display the deterioration of about 5 percent by the end of 2020. Accordingly, if the effects of Covid-19 rises to be harsher or even if it prevails to be like this, it would bring about worse results for the country’s GDP even in terms of the gradual and long recovery scenarios.
The government has promised some recent measures to fight the Coronavirus. These measures will definitely affect the outcomes in the future and quite evidently, it will also give a major hit to the fruit growers across the country. These encompass absolute restrictions of travel to the affected countries. The most notable travel bans include China, Italy, South Korea, Germany, Spain, the UK, and the US.
The Citrus Grower’s Association announces the current steps to boost the improvements of the operations at several ports. In doing so, the association has seemed to be proactively engaged with Transnet. These improvements encompass the procurement of advanced tools and equipment for both the Durban ports and Port Elizabeth. All these are expected to complete before the start of the next export season.
Despite the threat of Covid-19 mushrooming throughout the globe, the citrus fruit export department of South Africa is still positively engaged in broadening its markets. The CGA announced that over the next three to five years, the citrus fruit industry is expected to prosper by a further 500,000 tons. The association seems to proceed with focusing on re-opening and enhancing market access. The expansion is planned to be done even in the key markets, including China, India, USA, Philippines, the EU, Vietnam, and Japan. The sector is looking forward to engage with full enthusiasm with all its firm partners during the approaching season. This decision is made primarily in order to accomplish another of its record year. It also intends to participate towards job production and enhancement in order to contribute to the inclusive growth of the country.
Over the past decade, the South African apple industry has absolutely renovated its marketing regions. It has risen from the conventional markets of Europe and, the UK to Africa, the Middle East, and the Far South East and East of Asia.
From recent sources, it has been concluded that South Africa’ citrus fruit export industries are still encountering decent demand despite the terrible Covid-19 impacts. Certain indications also point out that quite soon the trading would commence. In that case, exports in most affected countries, such as China and other eastern countries could also begin to import very soon. This creates a positive sense and, in the future it would effectively lighten the mood, bringing a rise in demand and export. This would consequently balance the effects of the intensity of loss that has already been suffered by this country.
