South Africa’s orange exports are forecast to be up by 2% to 1.32 million tons in the 2020/21 MY, from 1.29 million tons in the 2019/20 MY, according to USDA data. The increase is attributed to a combination of a larger production area and the continued impact of COVID-19. The EU remains South Africa’s largest export market for oranges, accounting for 38% of the total. However, exports to Asia and the Middle East have grown steadily over the years due to the industry’s focus on growing these markets. Exports to the US are expected to continue based on the duty free access under the African Growth and Opportunity Act (AGOA). However, a gradual shift from oranges to soft citrus exports is expected over time, as South African farmers supplying the US market have been re-planting their orchards from oranges to soft citrus in response to market preferences and the higher premium received in the US market. Exports to the United States decreased in 2019, due to the shift from oranges to soft citrus and small fruit sizes.
Tue 05/01/2021 by Richard Wilkinson