By Lukhanyo Nkombisa
Recently, I had the privilege to represent the Citrus Growers’ Association Grower Development Company (GDC) at Asia Fruit Logistica in Hong Kong. This conference is the biggest gathering of global fruit exporters to Asia, and countries such as China, Vietnam, South Korea, and India represent huge growth opportunities for South African fruit exports.
The delegation of GDC officials was there to represent the growing interests of black citrus growers in South Africa, and as a testament on how this grouping has been able to commercialise their enterprises and take part in South Africa’s citrus success story.
President Cyril Ramaphosa recently mentioned this very success when he spoke in Parliament about the Agriculture and Agro-processing Master Plan, a government tool designed to address ownership, production and market access for designated groups.
Ramaphosa answered a question about transformation, mentioning the great example the citrus industry is setting: “I think the operative word here should be opening up access to all and that process is already under way – and I’ll give you a good example with the citrus industry. In the citrus industry you’ve got the established farmers who are churning out a lot of citrus, but you’ve also got black developing citrus farmers who are also producing citrus. And as we are advocating for the further opening of the European market, we do so for both. We want to advance both. But we also want the existing farmers to give maximum support to the emerging farmers.”
He emphasised the support that developing black farmers need, and that established farmers as well as the government should offer support for “inclusive, competitive, job-creating, sustainable and growing”.
This is precisely what makes the citrus industry a good transformational example. Out of 120 black citrus farmers, 74 of them have been participating in exporting markets more than 10 years. It is a true beacon of hope.
The Citrus Growers’ Association (CGA) founded the GDC as a subsidiary in 2016 on this very principle of continued transformation.
A substantial part of the levies that citrus growers pay funds the GDC’s activities and is the way established growers invest in a transformed future.
The GDC provides training, mentorship, and support to young and established black growers. Being part of the CGA also means that black farmers with the assistance of the GDC receive the same information and technical expertise available to large commercial growers.
This extends to advice on cultivars, disease management, and other aspects of the citrus value chain such as cold storage and transport. This enables developing growers to be able to plant the correct trees that will yield fruit with a guaranteed local and international market.
The GDC also plays a role in advising these farmers on the business aspects of their farms, and facilitates land access and funding opportunities.
Because of these efforts, black growers are increasingly becoming successful, commercial exporters of citrus. If all role-players in the government and industry unite to clear obstacles, black citrus growers could pack 50 million 15kg cartons of citrus for local and export markets by 2032.
Earlier this year, industry and government united to address one such obstacle: unfair and unscientific trade measures placed by the EU on South African citrus.
South Africa lodging a trade dispute at the World Trade Organization on Citrus Black Spot (CBS) trade measures meant a lot to growers. One successful grower, Siseko Maqoma, in charge of Gonzano Citrus in the Eastern Cape midlands, explains: “If the CBS matter is resolved once and for all, it would be incredible for our business. We export to the EU. The direct costs involved in meeting those unnecessary requirements are crippling to many people in the industry.“
Similar resolve in addressing other obstacles is needed, such as addressing the inefficiencies at our ports. Government and industry are working hard to achieve this.
The president’s words on “opening up access” are especially meaningful when it comes to access to the Asian market. Greater access for our citrus in India, South Korea and China can be achieved and stimulate even more inclusive growth. That was especially clear at Asia Fruit Logistica recently.
The GDC plays a vital role in engaging with government on all levels – national, provincial and local. The knowledge and skillset within the GDC complement the activities of government.
There is opportunity for collaboration between government and private entities such as the GDC. Such co-operation can unlock immense value with agriculture and agro-processing with measurable results.
There is also an opportunity for government to listen and learn from industry. Often there are mismatches between national, provincial and local policies or the way they are implemented. Industry bodies such as the GDC work closely with black growers and know their concerns and needs. These concerns also may vary from province to province, as different challenges require different interventions.
Bodies such as the GDC play a crucial role in ensuring the long-term sustainability and growth of the South African agricultural industry by fostering a diverse and inclusive community of growers. If this can be paired with supportive and collaborative government policies, there will no limit to the success of black growers in South Africa.
And as new and larger markets can be opening, especially in Asia, black South African growers will have access and be a critical part in South Africa’s citrus success story. It is in our entire economy’s interest to make sure citrus succeeds.
Lukhanyo Nkombisa is the general manager of the Grower Development Company.
BUSINESS REPORT