PROFIT-PRUNING: SA citrus exports fall short of record, Iran War squeezes key markets
Yields and production aside, it seems that everything that could go wrong went pear-shaped for domestic citrus growers. When it rains, it pours.
South Africa's 2026 citrus exports faced numerous challenges despite excellent yields, falling short of the 2025 record. Heavy rains, fuel cost increases, and the Iran War significantly impacted the sector. The CGA CEO, Dr Boitshoko Ntshabele, stated that a "highly unprofitable season" affected the industry due to risks like the war in the Middle East, soaring fuel prices, and logistical issues.
US President Donald Trump's decision to go to war with Iran drove up key input costs, particularly for diesel, which was punishing for the industry. Overseas middle-class spending power declined due to the conflict, limiting demand in key markets such as Iraq and Saudi Arabia. Ports faced heavy congestion, and shipping routes were long.
Domestic port malfunctions exacerbated the situation, causing market supply windows to be missed and fruit value to fall sharply. Weather further complicated matters, with floods in both the Western and Eastern Cape leading to an abundance of large fruit at the wrong time. The rand's strength also took a toll on export margins. Despite these challenges, the longer-term outlook remains positive, as the industry's fundamentals have not changed and it is well positioned to supply high-quality fruit to the Northern Hemisphere during its summer months.
The CGA plans to focus more on business intelligence to align production and supplies to market demand, aiming to nurture this key growth area for South Africa's agricultural sector and the wider economy, which employs 160,000 farm-level jobs.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.