According to the CGA chairperson Gerrit van der Merwe, the citrus industry is SA's largest agricultural export industry and 35,000 jobs are connected to SA-US citrus exports in one way or the other.
“The severity and immediate nature of the impending tariffs could mean that towns in the Western Cape and Northern Cape face either increased unemployment or maybe even total economic collapse. A prime example of this is Citrusdal, where exports to the US form the economic heart of this vibrant town,” said Van der Merwe.
According to the association, the proposed 30% tariff hike on citrus exports to the US would translate to an additional $4.25 (about R82.42) per carton of South African citrus – a move that could pose a serious financial dilemma for local citrus farmers already grappling with tight margins.
“The additional 30% tariff will make South African citrus uncompetitive in the US market, especially since only the baseline US tariff of 10% will be levied on SA's citrus competitors who are situated in South America.
CEO of CGA Boitshoko Ntshabele has urged the government to act swiftly on safeguarding citrus, echoing its significance on adding to the healthy diet of Americans and increased exports that created more jobs in SA since 2017.
“Citrus plays an important role in the healthy diet of Americans. The export to the US was one of the cornerstones of the CGA's target to create 100,000 additional jobs by 2023, as the US demand for SA citrus is clearly shown by the increase in exports since 2017. The amount of citrus to the US has almost doubled since then to more than 6.5-million cartons,” Ntshabele said.
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Tariff increase will hurt citrus farms, result in job losses – Citrus Growers' Association
Image: 123RF
The Citrus Growers' Association of Southern Africa (CGA) says the 30% tariff increase on South African exports to the US will hurt SA citrus farms and the rural communities they support and also result in job losses.
According to the CGA chairperson Gerrit van der Merwe, the citrus industry is SA's largest agricultural export industry and 35,000 jobs are connected to SA-US citrus exports in one way or the other.
“The severity and immediate nature of the impending tariffs could mean that towns in the Western Cape and Northern Cape face either increased unemployment or maybe even total economic collapse. A prime example of this is Citrusdal, where exports to the US form the economic heart of this vibrant town,” said Van der Merwe.
According to the association, the proposed 30% tariff hike on citrus exports to the US would translate to an additional $4.25 (about R82.42) per carton of South African citrus – a move that could pose a serious financial dilemma for local citrus farmers already grappling with tight margins.
“The additional 30% tariff will make South African citrus uncompetitive in the US market, especially since only the baseline US tariff of 10% will be levied on SA's citrus competitors who are situated in South America.
CEO of CGA Boitshoko Ntshabele has urged the government to act swiftly on safeguarding citrus, echoing its significance on adding to the healthy diet of Americans and increased exports that created more jobs in SA since 2017.
“Citrus plays an important role in the healthy diet of Americans. The export to the US was one of the cornerstones of the CGA's target to create 100,000 additional jobs by 2023, as the US demand for SA citrus is clearly shown by the increase in exports since 2017. The amount of citrus to the US has almost doubled since then to more than 6.5-million cartons,” Ntshabele said.
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