CGA has expressed concern over impending fuel price hikes and additional container surcharges linked to Middle East hostilities
There are reports that South Africans are set for another hefty increase in fuel prices, which would be a ”serious blow” for the country’s citrus industry.
According to the South African Citrus Growers Association (CGA), fuel runs a significant portion of farm activities and fruit is transported from all areas to port, mainly via road transport.
“As we have indicated, our season is set to begin in earnest and already some of our exports to the Middle East have arrived late as shipping and port destinations are revised on an ongoing basis,” said Dr Boitshoko Ntshabele, chief executive of the CGA.
“As the CGA, we note and are concerned by Transnet Port Terminals’ announcement of additional container surcharges linked to ongoing hostilities in the Middle East.
”Whilst the proposed amount is not yet punishing, it is the potential escalation in price that is worrisome,” he continued.
“These developments once again underscore how global instability directly affects our producers’ ability to compete in international markets.”
The CGA has in recent times made a strategic choice and invested in strengthening its data and market intelligence capability.
“We have also established dedicated monitoring and review forums so that we can respond quickly, adjust our estimates in real time, and provide our stakeholders with the insights they need to make informed decisions across the logistics supply chain,” said Ntshabele.
The CGA’s priority remains clear – to support continuity of supply.
”As the financial impact of the war starts to filter through – taken with the announced Transnet surcharge – we are seeing what could become hallmarks of a challenging export season,” he pointed out.
Citrus production and exports operate on tight margins, and growers are already absorbing rising input, fuel, and energy costs.
“Additional port-related charges could place a further strain on an industry that is already under pressure, with smaller and emerging producers particularly exposed,” Ntshabele warned.
”If sustained, this could have serious consequences for livelihoods and rural economies that depend on citrus.”
The situation reinforces the urgent need to strengthen the overall future environment for the exports of citrus, South Africa’s largest agricultural export sector.
“Government support will be critical,” he confirmed. ”In the immediate term, this includes more targeted fuel relief measures, as already being called for.
”Looking ahead, accelerating improved and new market access, pushing ahead with negotiations for lowered tariffs, along with enabling private sector participation in ports and rail, will be essential to improving resilience.
”These interventions are not abstract policy issues – they directly affect growers on the ground, their workers, and the communities they support,” Ntshabele added.
”Getting them right will help ensure that our citrus industry can withstand periods of severe pressure and continue to deliver value for South Africa.”
