Required Report - public distribution

**Date:** 5/14/2004

**GAIN Report Number:** SF4021

SF4021

**South Africa, Republic of**

**Citrus**

**Semi-Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Scott Reynolds

U.S. Embassy

**Prepared by:**

Patricia Mabiletsa

**Report Highlights:**

The country is currently experiencing some dry weather in the northern
region, around Mpumalanga. The weather is expected to produce a
bigger-sized citrus fruit of good quality. Total 2004 production is
expected around 1.7 million MT. Farmers expect lower profits tis year
due to a stronger Rand. Exports are expected at about 1.08 million MT, a
slight improvement from last year because of poor harvests in major
fruit growing countries.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Pretoria \[SF1\]

\[SF\]

Table of Contents

[Executive Summary 2](#executive-summary)

[Production 2](#production)

[Production Subcategory 2](#production-subcategory)

[Consumption 2](#consumption)

[Consumption Subcategory 2](#consumption-subcategory)

[Trade 2](#trade)

[Trade Subcategory 2](#trade-subcategory)

[Stocks 2](#stocks)

[Stocks Subcategory 2](#stocks-subcategory)

[Policy 2](#policy)

[Policy Subcategory 2](#policy-subcategory)

[Marketing 2](#marketing)

[Marketing Subcategory 2](#marketing-subcategory)

# Executive Summary

South Africa's citrus production for 2004 is expected to be 4% lower
than last year because of drought in the northern citrus-producing
region, around Mpumalanga. Farmers also expect lower profits this year
due to the stronger Rand.

2004 expectations are that more citrus fruit will be exported as
stimulated by some drought in major citrus growing countries. Exports
are expected slightly above last year total, forecast at about 1.080
million MT.

The industry's challenges for 2004 are to continue to gain consumer
confidence both locally and internationally, to adhere and improve on
food safety measures, traceability and good agricultural practices. On
trade, the industry plans to increase trade to Russia, and to penetrate
India and China this year.

AGOA, initiated four years ago to allow for a duty-free access to the
U.S., is of great benefit to South African citrus producers. In 2003,
export of oranges to the U.S. totaled about \$12.4 million, a 23%
increase from 2002. Before AGOA, South African oranges had a 2.2 -- 3.5
cents per kg tariff under the U.S. WTO agreement.

# Production

The South African citrus industry is at the beginning of its 2004
marketing season that lasts from March - November for lemons, May -
November for oranges, and April - August for grapefruit. The country is
currently experiencing some dry weather in the Northern region, around
the Mpumalanga area, that is expected to produce a bigger-sized fruit of
good quality, though lower in quantity. Total production is expected
slightly lower than last year, at around 1.711 million MT. Prospects for
the season are for lower farmer profits resulting from the strengthening
of the Rand.

A bumper lemon crop was produced in 2003, though farmers blamed the
strong Rand for reduced profits. Plantings for Mandarins grew, and the
fruit is mainly sold in local markets because of sensitivity in
handling.

Mpumalanga, located in the Northern region, is South Africa's major
grapefruit producing area (40%). Since late 2003, there had been
speculations on drought that was expected to reduce reservoirs by around
30%. Over the past three years, there has been a reduction of grapefruit
orchards because of the sugar project around Mpumalanga area, as well as
uprooting of old trees to plant new varieties that are demanded in the
Japanese market.

Production figures are illustrated in the table below per citrus
commodity:

## Production Subcategory

+-------------+-----+-------+-----+-------+-----+-------+---------+
| South       |     |       |     |       |     |       |         |
| Africa,     |     |       |     |       |     |       |         |
| Republic of |     |       |     |       |     |       |         |
|             |     |       |     |       |     |       |         |
| ###### Fr   |     |       |     |       |     |       |         |
| esh Oranges |     |       |     |       |     |       |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+
|             | **  | *     | **  | **    | **  | **    | **UOM** |
|             | 200 | *Revi | 200 | Estim | 200 | Forec |         |
|             | 1** | sed** | 2** | ate** | 3** | ast** |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+
|             | **U | *     | **U | *     | **U | *     |         |
|             | SDA | *Post | SDA | *Post | SDA | *Post |         |
|             | Of  | Est   | Of  | Est   | Of  | Est   |         |
|             | fic | imate | fic | imate | fic | imate |         |
|             | ial | \[Ne  | ial | \[Ne  | ial | \[Ne  |         |
|             | \[O | w\]** | \[O | w\]** | \[O | w\]** |         |
|             | ld\ |       | ld\ |       | ld\ |       |         |
|             | ]** |       | ]** |       | ]** |       |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| **Market    |     | *     |     | *     |     | *     | **MM    |
| Year        |     | *01/2 |     | *01/2 |     | *01/2 | /YYYY** |
| Begin**     |     | 002** |     | 003** |     | 004** |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Area        | 39  | 39751 | 39  | 39868 | 40  | 40000 | (HE     |
| Planted     | 751 |       | 868 |       | 000 |       | CTARES) |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Area        | 30  | 30000 | 30  | 30019 | 30  | 30040 | (HE     |
| Harvested   | 000 |       | 100 |       | 200 |       | CTARES) |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Bearing     | 12  | 12900 | 12  | 12908 | 12  | 12920 | (1000   |
| Trees       | 900 |       | 940 |       | 980 |       | TREES)  |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Non-Bearing | 4   | 4192  | 3   | 4235  | 3   | 4280  | (1000   |
| Trees       | 192 |       | 400 |       | 360 |       | TREES)  |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| TOTAL No.   | 17  | 17092 | 16  | 17143 | 16  | 17200 | (1000   |
| Of Trees    | 092 |       | 340 |       | 340 |       | TREES)  |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Production  | 1   | 1263  | 1   | 1265  | 1   | 1260  | (1000   |
|             | 263 |       | 266 |       | 270 |       | MT)     |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Imports     | 1   | 6     | 1   | 7     | 1   | 7     | (1000   |
|             |     |       |     |       |     |       | MT)     |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| **TOTAL     | **  | **1   | **  | **1   | **  | **1   | **(1000 |
| SUPPLY**    | 126 | 269** | 126 | 272** | 127 | 267** | MT)**   |
|             | 4** |       | 7** |       | 1** |       |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Exports     | 751 | 732   | 757 | 752   | 760 | 760   | (1000   |
|             |     |       |     |       |     |       | MT)     |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Fresh Dom.  | 239 | 224   | 273 | 277   | 280 | 280   | (1000   |
| Consumption |     |       |     |       |     |       | MT)     |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| Processing  | 274 | 313   | 237 | 243   | 231 | 227   | (1000   |
|             |     |       |     |       |     |       | MT)     |
+-------------+-----+-------+-----+-------+-----+-------+---------+
| **TOTAL     | **  | **1   | **  | **1   | **  | **1   | **(1000 |
| DIS         | 126 | 269** | 126 | 272** | 127 | 267** | MT)**   |
| TRIBUTION** | 4** |       | 7** |       | 1** |       |         |
+-------------+-----+-------+-----+-------+-----+-------+---------+

+------------+---------+-------+---------+-------+--------+-------+---+
| South      |         |       |         |       |        |       |   |
| Africa,    |         |       |         |       |        |       |   |
| Republic   |         |       |         |       |        |       |   |
| of         |         |       |         |       |        |       |   |
|            |         |       |         |       |        |       |   |
| 65         |         |       |         |       |        |       |   |
|            |         |       |         |       |        |       |   |
| Degrees    |         |       |         |       |        |       |   |
| Brix       |         |       |         |       |        |       |   |
|            |         |       |         |       |        |       |   |
| ###### Jui |         |       |         |       |        |       |   |
| ce, Orange |         |       |         |       |        |       |   |
+------------+---------+-------+---------+-------+--------+-------+---+
|            | 2001    | Re    | 2002    | Est   | 2003   | For   | U |
|            |         | vised |         | imate |        | ecast | O |
|            |         |       |         |       |        |       | M |
+------------+---------+-------+---------+-------+--------+-------+---+
|            | USDA    | Post  | USDA    | Post  | USDA   | Post  |   |
|            | O       | Est   | O       | Est   | Of     | Est   |   |
|            | fficial | imate | fficial | imate | ficial | imate |   |
|            | \[Old\] | \[    | \[Old\] | \[    | \      | \[    |   |
|            |         | New\] |         | New\] | [Old\] | New\] |   |
+------------+---------+-------+---------+-------+--------+-------+---+
| Market     |         | 01    |         | 01    |        | 01    | M |
| Year Begin |         | /2002 |         | /2003 |        | /2004 | M |
|            |         |       |         |       |        |       | / |
|            |         |       |         |       |        |       | Y |
|            |         |       |         |       |        |       | Y |
|            |         |       |         |       |        |       | Y |
|            |         |       |         |       |        |       | Y |
+------------+---------+-------+---------+-------+--------+-------+---+
| Deliv. To  | 274000  | 3     | 237000  | 3     | 231000 | 3     | ( |
| Processors |         | 29000 |         | 51000 |        | 51000 | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Beginning  | 4949    | 4949  | 4899    | 2031  | 2609   | 3208  | ( |
| Stocks     |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Production | 27400   | 23030 | 23700   | 24570 | 23100  | 24570 | ( |
|            |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Imports    | 110     | 63    | 110     | 195   | 110    | 200   | ( |
|            |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| TOTAL      | 32459   | 28042 | 28709   | 26796 | 25819  | 27978 | ( |
| SUPPLY     |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Exports    | 12960   | 16911 | 13000   | 11588 | 12000  | 11500 | ( |
|            |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Domestic   | 14600   | 9100  | 13100   | 12000 | 12600  | 13000 | ( |
| C          |         |       |         |       |        |       | M |
| onsumption |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| Ending     | 4899    | 2031  | 2609    | 3208  | 1219   | 3478  | ( |
| Stocks     |         |       |         |       |        |       | M |
|            |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+
| TOTAL      | 32459   | 28042 | 28709   | 26796 | 25819  | 27978 | ( |
| DI         |         |       |         |       |        |       | M |
| STRIBUTION |         |       |         |       |        |       | T |
|            |         |       |         |       |        |       | ) |
+------------+---------+-------+---------+-------+--------+-------+---+

+-------------+----+-------+------+-------+------+-------+----------+
| South       |    |       |      |       |      |       |          |
| Africa,     |    |       |      |       |      |       |          |
| Republic of |    |       |      |       |      |       |          |
|             |    |       |      |       |      |       |          |
| ###### F    |    |       |      |       |      |       |          |
| resh Lemons |    |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
|             | ** | *     | **20 | **    | **20 | **    | **UOM**  |
|             | 20 | *Revi | 02** | Estim | 03** | Forec |          |
|             | 01 | sed** |      | ate** |      | ast** |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
|             | ** | *     | **   | *     | **   | *     |          |
|             | US | *Post | USDA | *Post | USDA | *Post |          |
|             | DA | Est   | Offi | Est   | Offi | Est   |          |
|             | Of | imate | cial | imate | cial | imate |          |
|             | fi | \[Ne  | \    | \[Ne  | \    | \[Ne  |          |
|             | ci | w\]** | [Old | w\]** | [Old | w\]** |          |
|             | al |       | \]** |       | \]** |       |          |
|             | \  |       |      |       |      |       |          |
|             | [O |       |      |       |      |       |          |
|             | ld |       |      |       |      |       |          |
|             | \] |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
| **Market    |    | *     |      | *     |      | *     | **M      |
| Year        |    | *01/2 |      | *01/2 |      | *01/2 | M/YYYY** |
| Begin**     |    | 002** |      | 003** |      | 004** |          |
+-------------+----+-------+------+-------+------+-------+----------+
| Area        | 47 | 3552  | 5238 | 5238  | 5250 | 5250  | (H       |
| Planted     | 00 |       |      |       |      |       | ECTARES) |
+-------------+----+-------+------+-------+------+-------+----------+
| Area        | 28 | 2542  | 3000 | 3000  | 3100 | 3100  | (H       |
| Harvested   | 20 |       |      |       |      |       | ECTARES) |
+-------------+----+-------+------+-------+------+-------+----------+
| Bearing     | 14 | 1270  | 1500 | 1586  | 1550 | 1900  | (1000    |
| Trees       | 10 |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| Non-Bearing | 5  | 500   | 1000 | 914   | 1075 | 725   | (1000    |
| Trees       | 00 |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| TOTAL No.   | 19 | 1770  | 2500 | 2500  | 2625 | 2625  | (1000    |
| Of Trees    | 10 |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| Production  | 1  | 169   | 189  | 211   | 190  | 250   | (1000    |
|             | 70 |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Imports     | 0  | 0     | 0    | 0     | 0    | 0     | (1000    |
|             |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| **TOTAL     | *  | **    | **1  | **    | **1  | **    | **(1000  |
| SUPPLY**    | *1 | 169** | 89** | 211** | 90** | 250** | MT)**    |
|             | 70 |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
| Exports     | 85 | 80    | 90   | 131   | 90   | 150   | (1000    |
|             |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Fresh Dom.  | 8  | 16    | 17   | 17    | 10   | 20    | (1000    |
| Consumption |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Processing  | 77 | 73    | 82   | 63    | 90   | 80    | (1000    |
|             |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| **TOTAL     | *  | **    | **1  | **    | **1  | **    | **(1000  |
| DIS         | *1 | 169** | 89** | 211** | 90** | 250** | MT)**    |
| TRIBUTION** | 70 |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+

+-------------+----+-------+------+-------+------+-------+----------+
| ###### Sou  |    |       |      |       |      |       |          |
| th Africa,  |    |       |      |       |      |       |          |
| Republic of |    |       |      |       |      |       |          |
|             |    |       |      |       |      |       |          |
| #           |    |       |      |       |      |       |          |
| ##### Fresh |    |       |      |       |      |       |          |
|  Grapefruit |    |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
|             | ** | *     | **20 | **    | **20 | **    | **UOM**  |
|             | 20 | *Revi | 02** | Estim | 03** | Forec |          |
|             | 01 | sed** |      | ate** |      | ast** |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
|             | ** | *     | **   | *     | **   | *     |          |
|             | US | *Post | USDA | *Post | USDA | *Post |          |
|             | DA | Est   | Offi | Est   | Offi | Est   |          |
|             | Of | imate | cial | imate | cial | imate |          |
|             | fi | \[Ne  | \    | \[Ne  | \    | \[Ne  |          |
|             | ci | w\]** | [Old | w\]** | [Old | w\]** |          |
|             | al |       | \]** |       | \]** |       |          |
|             | \  |       |      |       |      |       |          |
|             | [O |       |      |       |      |       |          |
|             | ld |       |      |       |      |       |          |
|             | \] |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
| **Market    |    | *     |      | *     |      | *     | **M      |
| Year        |    | *01/2 |      | *01/2 |      | *01/2 | M/YYYY** |
| Begin**     |    | 002** |      | 003** |      | 004** |          |
+-------------+----+-------+------+-------+------+-------+----------+
| Area        | 57 | 5700  | 5350 | 5350  | 5000 | 5000  | (H       |
| Planted     | 00 |       |      |       |      |       | ECTARES) |
+-------------+----+-------+------+-------+------+-------+----------+
| Area        | 55 | 5554  | 5100 | 3876  | 4800 | 3470  | (H       |
| Harvested   | 00 |       |      |       |      |       | ECTARES) |
+-------------+----+-------+------+-------+------+-------+----------+
| Bearing     | 22 | 2233  | 2040 | 1558  | 1920 | 1390  | (1000    |
| Trees       | 00 |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| Non-Bearing | 90 | 57    | 100  | 592   | 80   | 620   | (1000    |
| Trees       |    |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| TOTAL No.   | 22 | 2290  | 2140 | 2150  | 2000 | 2010  | (1000    |
| Of Trees    | 90 |       |      |       |      |       | TREES)   |
+-------------+----+-------+------+-------+------+-------+----------+
| Production  | 3  | 384   | 280  | 268   | 270  | 240   | (1000    |
|             | 80 |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Imports     | 1  | 2     | 1    | 3     | 1    | 3     | (1000    |
|             |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| **TOTAL     | *  | **    | **2  | **    | **2  | **    | **(1000  |
| SUPPLY**    | *3 | 386** | 81** | 271** | 71** | 243** | MT)**    |
|             | 81 |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+
| Exports     | 1  | 169   | 170  | 186   | 170  | 170   | (1000    |
|             | 97 |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Fresh Dom.  | 6  | 12    | 6    | 10    | 6    | 10    | (1000    |
| Consumption |    |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| Processing  | 1  | 205   | 105  | 75    | 95   | 63    | (1000    |
|             | 78 |       |      |       |      |       | MT)      |
+-------------+----+-------+------+-------+------+-------+----------+
| **TOTAL     | *  | **    | **2  | **    | **2  | **    | **(1000  |
| DIS         | *3 | 386** | 81** | 271** | 71** | 243** | MT)**    |
| TRIBUTION** | 81 |       |      |       |      |       |          |
|             | ** |       |      |       |      |       |          |
+-------------+----+-------+------+-------+------+-------+----------+

## 

# Consumption

South Africa's 2004 domestic consumption of citrus is expected to grow
about 6,000 MT more than in 2003. Increases in lemon production have led
some beverage manufacturers to increase their use of lemons. Local
prices are also competitive.

## Consumption Subcategory

See the tables above for figures.

## 

# Trade

(\$1 U.S. = R6.91, at May 12,2004)

In 2003, total citrus exports reached about R2.7 billion. Oranges take
the largest share of South African citrus exports. Valencia exports grew
by 38% to amount to 720,000 MT. Grapefruit and lemon exports increased
substantially because of both international demand and high production,
while it decreased for soft citrus mainly due to difficult handling.

South Africa's lemon exports are increasing significantly because of
expanding area of bearing trees. There is also a niche market for
essential lemon oils to major local beverage producers.

Japan is definitely becoming South Africa's growth market, some
retailers in Japan are said to have stocked South African citrus for the
first time. The start of South Africa's marketing season for grapefruit
coincides with Japan's peak influx of citrus, mainly from California.

At this period, South African exports are reduced. However, the industry
is confident of quality, and expects good prices in 2004. In 2003, South
Africa exported about 35% of total grapefruit exports to Japan.

Iran, Eastern Europe and Russia are also expanding emerging markets for
South African citrus. In 2003, Russia absorbed about 10% of the total
citrus exports during the second half of South Africa's production
season. Shipment to Russia is practical because of a direct linkage from
the South African ports to St. Petersburg harbor. Since last year,
import duties have also decreased by about 25% following an agreement by
Russia to include South Africa in its harmonized tariffs for third world
countries. South Africa - Russia trade ties, though revived in 2002,
were ended in 1997 when the latter's economy declined, abruptly
terminating 7.5% of South Africa's annual citrus imports.

South Africa's 2004 exports to the U.S. are expected to be the same as
last year amounting to about 27,000 MT. 2003 was regarded as a good year
for total citrus exports to the U.S., with exports increasing about 54%.
Percentage citrus fruit rejected under the SA-US special export program
lead by APHIS was also reduced by 63% from 2002. The National Department
of Agriculture indicated to APHIS that no exports are expected from the
Northern Cape's 400Ha of citrus orchards around Wellington and
Hartswater this year because of damage caused by frost in these
magisterial districts. Since June 2003, APHIS certified the area as a
blackspot free region and allowed it to benefit in the U.S. special
export program. Currently, South Africa's citrus exports to the U.S. are
from the Western Cape because of its blackspot-free status. The areas
benefiting are Bredadorp, Clanwilliam, Caledon, Heidelberg, Hermanus,
Ladysmith, Montagu, Paarl, Piketberg, Robertson, Somerset West,
Stellenbosch, Swellendam, Strand, Wellington, and Worcester.

## Trade Subcategory

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| #####           |                 |                 |                 |
| # Fresh Oranges |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | **Jan-Dec**     | **Units:**      | **MT**          |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2002**        |                 | **2003**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **U.S.**        | **17,152**      | **U.S.**        | **25,670**      |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 96,252          | Netherlands     | 100,806         |
+-----------------+-----------------+-----------------+-----------------+
| U.K.            | 90,003          | Russia          | 97,362          |
+-----------------+-----------------+-----------------+-----------------+
| Russia          | 71,837          | U.K.            | 68,502          |
+-----------------+-----------------+-----------------+-----------------+
| Saudi Arabia    | 49,615          | Saudi Arabia    | 57,529          |
+-----------------+-----------------+-----------------+-----------------+
| Mozambique      | 46,512          | Mozambique      | 55,645          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 41,627          | Spain           | 38,630          |
+-----------------+-----------------+-----------------+-----------------+
| Spain           | 34,317          | U.Emirates      | 37,675          |
+-----------------+-----------------+-----------------+-----------------+
| U.Emirates      | 30,509          | Hong Kong       | 37,050          |
+-----------------+-----------------+-----------------+-----------------+
| Italy           | 26,610          | Belgium         | 35,811          |
+-----------------+-----------------+-----------------+-----------------+
| Canada          | 25,897          | Italy           | 26,830          |
+-----------------+-----------------+-----------------+-----------------+
| **Total for     | **513179**      |                 | **555840**      |
| Others**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **201,539**     |                 | **170,660**     |
| Listed**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **731870**      |                 | **752170**      |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| ####            |                 |                 |                 |
| ## Fresh Lemons |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | **Jan-Dec**     | **Units:**      | **MT**          |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2002**        |                 | **2003**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **U.S.**        | **383**         | **U.S.**        | **1,101**       |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Saudi Arabia    | 16,968          | Saudi Arabia    | 19,023          |
+-----------------+-----------------+-----------------+-----------------+
| U. Emirates     | 11,986          | Belgium         | 17,175          |
+-----------------+-----------------+-----------------+-----------------+
| U.K.            | 9,245           | U.K.            | 15,769          |
+-----------------+-----------------+-----------------+-----------------+
| Hong Kong       | 7,766           | U.Emirates      | 14,780          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 6,216           | Japan           | 11,578          |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 5,079           | Hong Kong       | 9,769           |
+-----------------+-----------------+-----------------+-----------------+
| Ukraine         | 4,293           | Russia          | 9,213           |
+-----------------+-----------------+-----------------+-----------------+
| Italy           | 4,107           | Italy           | 7,306           |
+-----------------+-----------------+-----------------+-----------------+
| Germany         | 1,705           | Netherlands     | 5,892           |
+-----------------+-----------------+-----------------+-----------------+
| Russia          | 1,580           | Spain           | 4,320           |
+-----------------+-----------------+-----------------+-----------------+
| **Total for     | **68945**       |                 | **114825**      |
| Others**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **10,619**      |                 | **15,305**      |
| Listed**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **79947**       |                 | **131231**      |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| ###### F        |                 |                 |                 |
| resh Grapefruit |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | **Jan-Dec**     | **Units:**      | **MT**          |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2002**        |                 | **2003**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **U.S.**        | **173**         | **U.S.**        | **416**         |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Japan           | 39,202          | Japan           | 64,896          |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 34,282          | Netherlands     | 37,961          |
+-----------------+-----------------+-----------------+-----------------+
| U.K.            | 26,221          | U.K.            | 19,023          |
+-----------------+-----------------+-----------------+-----------------+
| Mozambique      | 17,436          | Italy           | 14,704          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 9,767           | Mozambique      | 11,624          |
+-----------------+-----------------+-----------------+-----------------+
| Italy           | 8,915           | Belgium         | 6,857           |
+-----------------+-----------------+-----------------+-----------------+
| Spain           | 5,068           | Spain           | 3,953           |
+-----------------+-----------------+-----------------+-----------------+
| Canada          | 4,889           | Canada          | 3,711           |
+-----------------+-----------------+-----------------+-----------------+
| Germany         | 4,520           | Russia          | 3,628           |
+-----------------+-----------------+-----------------+-----------------+
| France          | 4,265           | France          | 3,545           |
+-----------------+-----------------+-----------------+-----------------+
| **Total for     | **154565**      |                 | **169902**      |
| Others**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **14,104**      |                 | **15,385**      |
| Listed**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **168842**      |                 | **185703**      |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

# IMPORTS

In 2004, South Africa is expected to import about the same amount of
citrus fruit as last year at 10,000 MT, mainly oranges (70%) and
grapefruit (30%). Lemon imports are expected to be as insignificant as
last year because of increasing domestic production caused by expanded
area.

In 2003, imported citrus was sourced mainly from Zimbabwe (87%),
followed by Israel (6%), Canada (3%), Spain (3%) and Swaziland (1%).

The import tables are indicated below:

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| Fresh Oranges   |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| ####            | **Jan-Dec**     | **Units:**      | **MT**          |
| ### Time Period |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Imports       | **2002**        |                 | **2003**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **U.S.**        | ** **           | **U.S.**        | **0**           |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Zimbabwe        | 5,565           | Zimbabwe        | 5,770           |
+-----------------+-----------------+-----------------+-----------------+
| Israel          | 93              | Spain           | 260             |
+-----------------+-----------------+-----------------+-----------------+
| Spain           | 65              | Canada          | 189             |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 | Israel          | 132             |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 | Swaziland       | 95              |
+-----------------+-----------------+-----------------+-----------------+
| **Total for     | **5723**        |                 | **6446**        |
| Others**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **0**           |                 | **1**           |
| Listed**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **5723**        |                 | **6447**        |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

+-----------------+-----------------+-------------+-------------------+
| South Africa,   |                 |             |                   |
| Republic of     |                 |             |                   |
|                 |                 |             |                   |
| ####            |                 |             |                   |
| ## Fresh Lemons |                 |             |                   |
+-----------------+-----------------+-------------+-------------------+
| **Time Period** | **Jan-Dec**     | **Units:**  | **MT**            |
+-----------------+-----------------+-------------+-------------------+
| **Imports       | **2002**        |             | **2003**          |
| for:**          |                 |             |                   |
+-----------------+-----------------+-------------+-------------------+
| U.S.            | 0               | U.S.        | 0                 |
+-----------------+-----------------+-------------+-------------------+
| Others          |                 | Others      |                   |
+-----------------+-----------------+-------------+-------------------+
| Zimbabwe        | 61              | Zimbabwe    | 36                |
+-----------------+-----------------+-------------+-------------------+
| **Total for     | **61**          |             | **36**            |
| Others**        |                 |             |                   |
+-----------------+-----------------+-------------+-------------------+
| **Others not    | **0**           |             | **0**             |
| Listed**        |                 |             |                   |
+-----------------+-----------------+-------------+-------------------+
| **Grand Total** | **61**          |             | **36**            |
+-----------------+-----------------+-------------+-------------------+

Source: WTA

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| ###### F        |                 |                 |                 |
| resh Grapefruit |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | **Jan-Dec**     | **Units:**      | **MT**          |
+-----------------+-----------------+-----------------+-----------------+
| **Imports       | **2002**        |                 | **2003**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **U.S.**        | **0**           | **U.S.**        | **0**           |
+-----------------+-----------------+-----------------+-----------------+
| Others          |                 | Others          |                 |
+-----------------+-----------------+-----------------+-----------------+
| Zimbabwe        | 1,399           | Zimbabwe        | 1,985           |
+-----------------+-----------------+-----------------+-----------------+
| Israel          | 275             | Israel          | 441             |
+-----------------+-----------------+-----------------+-----------------+
| Spain           | 33              | Canada          | 45              |
+-----------------+-----------------+-----------------+-----------------+
|                 |                 | Spain           | 44              |
+-----------------+-----------------+-----------------+-----------------+
| **Total for     | **1707**        |                 | **2515**        |
| Others**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **10**          |                 | **0**           |
| Listed**        |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **1717**        |                 | **2515**        |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

# Stocks

No stocks for citrus

## Stocks Subcategory

No stocks for citrus

# Policy

No change in policy.

## Policy Subcategory

No change in policy.

# Marketing

The table below indicates the marketing season for citrus by variety:

  ------------- -------- ------------- -------- ---------------- -------- ------------ --------
  South                                                                                
  Africa's                                                                             
  citrus                                                                               
  marketing                                                                            
  calendar                                                                             

  **ORANGES**            **SOFT                 **GRAPEFRUIT**            **LEMONS**   
                         CITRUS**                                                      

  Proteas       May, 01  Satsumas      March 15 Marsh            April 01 Eureka       March 01
                --                     -- July                   -- Sept               --Nov 30
                August                 31                        30                    
                07                                                                     

  Tomangoes     May, 01  Clementines   May 01   Rose             April                 
                --                     --                        01 -                  
                August                 August                    Sept 30               
                07                     31                                              

  Shamoutis     May 15   Novas         May 01   Star             April                 
                -- Sept                --                        15 -                  
                15                     August                    August                
                                       31                        31                    

  Navels        May 15   Minneolas     May 15   Ray Ruby         April 15              
                -- Sept                -- Sept                   --                    
                15                     15                        August                
                                                                 31                    

  Navelates     June 15  Tamboirs      May 15                                          
                -- Sept                -- Sept                                         
                15                     15                                              

  Late Navels   July 01  Temples       April 15                                        
                --                     -- Sept                                         
                August                 07                                              
                31                                                                     

  Valencias     July 01                                                                
                -- Nov                                                                 
                30                                                                     

  Midnights     August                                                                 
                01 --Nov                                                               
                15                                                                     

  Delta         July 01                                                                
  Seedless      -- Nov                                                                 
                15                                                                     
  ------------- -------- ------------- -------- ---------------- -------- ------------ --------

The Western Cape farmers, exporters and stakeholders formed the U.S.
Alliance to coordinate and monitors shipment and quality standards. The
forum meets weekly to discuss all aspects of marketing. About 85% of
growers joined the organization and are working together to optimize
sales to the export markets.

The Rand continued to gain strength against the US dollar and peaked in
strength on December 04, 2003 at R6.26. The industry considers it to
have a negative impact on farmer revenues. In 2003, estimations for
increases in costs of production were at around 23% for diesel,
fertilizers and herbicides, about 14% for rail and by 18% for road
transport.

One of South Africa's leading citrus exporters reportedly took market
share in Japan for grapefruit from California and Florida in 2003.
Expectations are to maintain this share for 2004, and exporters are
optimistic because of impact of likely drought in major citrus producing
competing countries.

Since 1997, after the implementation of the Agricultural Product
Marketing Act of 1996, there were many South African export companies
expanding within the markets. To date, there is a stiff competition
between both the domestic and international companies. Most of these
companies either have own farmers, or source their products from
contracting local farmers. Some of the international businesses include
companies such as Delmonte, Sunkist, Dole, and Katope.

## Marketing Subcategory

The industry is researching export opportunities to China, and will
start to export citrus to Thailand, lemons to South Korea and
Clementines into Japan in 2004.