New European Union health safety requirements on citrus exports from South Africa might cut the volume of South African oranges by up to 20 percent. The rules, which came into effect in January, require South African farmers to apply ultra-cold treatment to all Europe-bound oranges and keep the fruits at temperatures of 2 degrees Celsius or lower for up to 25 days. The restrictions aim to prevent the potential spread of the false codling moth, a pest native to sub-Saharan Africa that feeds on fruits including oranges.
South Africa is the world's second largest citrus exporter after Spain and sold 32% of its oranges into the European market last year, according to the country's Perishable Products Export Control Board.
Citrus Growers' Association CEO Justin Chadwick: "We estimate that of the normal amount we would send to the EU, that we would probably send maybe 15 or 20 percent less oranges to the EU this year, simply because we can't treat and cool the volume of fruit that's needed."
If the volume of oranges South Africa typically exports to the EU annually were cut by a fifth (around 80,800 tons) it would mean European supermarkets needing to make up a shortfall of 5.4 million 15 kilogram boxes.
Source: barrons.com