The South African government has initiated discussions with the European Union at the World Trade Organisation (WTO) regarding phytosanitary trade measures imposed on South African citrus by the EU.
Biznews reports that the action aims to find a lasting solution to the EU’s regulations on Citrus Black Spot (CBS), to protect the livelihoods of tens of thousands of people in the local citrus industry.
Black spot is a fungal infection that can result in cosmetic blemishes on the affected fruit. Despite the world’s leading scientists proving that CBS cannot be transmitted through the actual fruit as a pathway, the EU has continued to enforce detailed and expensive measures on South African citrus growers.
Thoko Didiza, Minister of Agriculture, Land Reform and Rural Development highlighted the importance of jobs in the citrus industry. “Rural economies throughout the country depend on the export of citrus for their income. Currently, the industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade-restrictive regulations.”
Ebrahim Patel, Minister of Trade, Industry and Competition stressed that the EU market makes up one-third of all citrus exports from South Africa and is central to the profitability of the citrus industry.
“The EU’s volumes cannot be absorbed by other markets,” Patel said. “It is our view that the measures by the EU are not justified, proportionate or appropriate”.
Poultry industry leaders would love to hear similar endorsements from their government ministers.
Poultry is a strategic national industry that supplies 66% of the nation’s meat and is the biggest provider of jobs in rural areas. It is an R80 billion industry, the second largest component of the agricultural sector, and it supports thousands of jobs directly and in South Africa’s grain industry.
Yet, since the poultry master plan was launched in 2019 to expand the industry and create jobs, industry leaders have often felt the government is working against it rather than with it.
The master plan has failed to reach nearly every objective except the industry’s own investment in expanded production capacity, some of which is lying idle because other master plan aspects have not kicked in.
In 2022, Minister Patel suspended for a year the imposition of anti-dumping duties he agreed were necessary, and then this year approved unnecessary and harmful tariff rebates to encourage chicken imports when one of the maser plan’s objectives is to curb imports.
The industry also fears that the market inquiry announced by the Competition Commission, which falls under Patel, will seek to dismantle the large integrated poultry production companies that the industry says are essential for the production of affordable chicken.
And, since 2017, Minister Didiza’s department has steadfastly refused to compensate poultry farmers who have been ordered to cull millions of chickens during bird flu outbreaks.
Poultry producers were not consulted before the tariff rebates were introduced. After a “fruitful” meeting with Patel, they were invited to submit their data showing that production levels were back to normal and that the rebates were unjustified. They have done so, and have reason to hope the rebates will not be renewed.
Perhaps the tide is turning. Perhaps, after the rebates are deservedly canned, the master plan will be revived, and regular consultations between government and the industry will take place, local chicken consumption and exports will be stimulated, and the promised “decisive action” will be taken against illegal imports. Perhaps chicken farmers will be compensated for bird flu culls.
Perhaps. But the contrast between the government’s support for citrus growers and its actions against poultry producers shows there is a long way to go.
