SA’s citrus growers need government’s aid in EU’s harsh cold treatment laws

South Africa’s citrus growers, whose export season is due to commence, have urged the government to intervene in tackling the European Union’s (EU) cold-treatment regulations for citrus, which is seen to cost the industry over R2 billion in additional costs this year.

In June last year, the EU’s Standing Committee on Plants, Animals, Food and Feed voted in favour of a new requirement, forcing southern African countries, including South Africa, to implement extreme cold treatment to tackle false codling moth (FCM).

If EU authorities continue to enforce the cold-treatment laws, South Africa’s citrus industry looks to incur additional costs to the tune of R1.4 billion, for the required cold storage technology and capacity to be fully compliant, the Citrus Growers Association said in a statement.

Other additional costs and loss of income would spiral to R500 million in 2023, the CGA added.

“This poses a major threat to the future sustainability and profitability of the industry that sustains more than 140 000 jobs and brings in R30 billion in export revenue annually,” it said.

Read: New EU law could see R600m worth of SA citrus en route to Europe destroyed

The association, which is now calling Minister of Trade, Industry and Competition, Ebrahim Patel, to assist in setting up a World Trade Organisation (WTO) panel to adjudicate on regulation, has described it as “an arbitrary and unnecessarily trade restrictive measure”.

CEO of CGA, Justin Chadwick, said a meeting held last week between senior EU and South African government officials did not yield a positive outcome, adding that political intervention has now become necessary to ensure exports to the EU continue without threat.

Read: Citrus exports lower than forecast

“With the export of oranges starting in May, we still have a short window to rescue this serious situation,” Chadwick said.

The association has said existing FCM risk management systems already ensure that 99.9% of oranges entering the EU are pest free.

In 2022, only two FCM interceptions were detected in the more than 350 000 tons of oranges shipped to the EU, it said.

Source: moneyweb.co.za