EU averts job losses in SA

THOUSANDS of jobs were saved this week when the EU‚ South Africa’s most lucrative market for its multibillion rand fruit exporting industry‚ decided against banning its oranges.

On Tuesday the EU’s standing committee on plant health decided not to ban South Africa’s oranges and other fruits after an outbreak of a fungal infection called citrus black spot (CBS) last year.

The disease leaves unsightly black spots on the skins of oranges‚ but is not harmful to humans.

However‚ the EU has decided to impose stricter conditions on the import of South African fruit and should these not be met a full ban could be implemented.

South Africa exports about R8-billion worth of citrus fruit to the EU every year. This supports about 120000 direct and indirect jobs in the sector.

Spain is a fierce competitor for the lucrative market as it seeks to overcome its own economic troubles that include a high youth unemployment rate and a need to improve its own balance of payments.

Traditionally South Africa supplies citrus fruit to the EU during that continent’s winter months‚ however‚ October is where the South Africa and Spanish harvesting seasons overlap.

Spain also wants to extend its harvesting seasons and is lobbying hard within the EU to cut down on imports of citrus fruit.

Citrus Growers Association CEO Justin Chadwick said the decision brought certainty to the industry.

“Ominously however‚ the decision does leave room for additional measures to be imposed after five interceptions. While onerous‚ the fruit-testing requirements‚ both in the orchard and packhouse‚ are within our industry capacities.”

Chadwick said while the targeting of specific high-risk fruit instead of a uniformly applied method was a progressive move‚ some fruit such as early oranges would be unfairly affected as only the late crop poses a higher risk of noncompliance. He said the long-term prognosis for the industry remained in the balance.

“The South African citrus industry had gone to great lengths and excessive cost to demonstrate their commitment and respect towards the European position on CBS – including testing regimes and a comprehensive risk management process.

“This is simply not economically sustainable nor fair as South Africa has been singled out for special treatment by the EU in this regard.”

Nedbank capital global commodity finance Africa head Zhann Meyer said that the possibility of a ban directly affected interest rates and the ability of a farmer to raise capital.

The Citrus Growers’ Association had done its job in ensuring that farmers had their orchards inspected and met conditions to eliminate CBS. However‚ he believed the South African government could have done more to lobby the EU. — BDLive

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