Citrus Industry Reveals True Cost of South African Port Inefficiencies

A recent study by the Bureau for Food and Agricultural Policy (BFAP) found that inefficient logistics cost the South African citrus industry R5.27 billion in 2024. This represents significant lost revenue for agricultural exports and a setback for job creation, according to outgoing Citrus Growers Association (CGA) CEO Justin Chadwick. Chadwick urged Finance Minister Enoch Godongwana to prioritize the logistics crisis. Incoming CGA CEO Dr. Boitshoko Ntshabele emphasized the need for public-private partnerships at ports to address the issues impacting fresh fruit exports. The BFAP quantified the cost of inefficiencies: R1.56 billion in increased direct expenditure, R2.6 billion in lost revenue due to lower prices, and R1.1 billion in waste. Chadwick explained that citrus, being perishable, is vulnerable to delays caused by poor infrastructure and unreliable schedules. These losses threaten the industry's long-term viability. South Africa's largest agricultural export, citrus, supports nearly 140,000 jobs. Projected harvest increases could create tens of thousands more, but port inefficiencies threaten this growth. Ntshabele explained that exports could reach 260 million cartons by 2032, creating 100,000 additional jobs if challenges are addressed. Last year's exports were only 165 million cartons. The CGA applauded President Cyril Ramaphosa's commitment to revitalizing ports but believes the pace of reform is insufficient.