Required Report - public distribution

**Date:** 11/03/2006

**GAIN Report Number:** SF6044

SF0000

**South Africa, Republic of**

**Citrus**

**Annual**

**2006**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Patricia Mabiletsa

**Report Highlights:**

We estimate that South Africa's fresh citrus production will increase 2%
to 2.1 million MT in 2005/6, and fresh citrus exports will stabilize in
the near term. The country's citrus fruit industry experienced lower
returns in 2004/5, which extended in 2005/6, because exporters
continuously supplied the already glutted markets.

South Africa's fresh and processing citrus industries are gradually
improving their database as more farmers are realizing the need for the
country to have reliable and consolidated information.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Pretoria \[SF1\]

\[SF\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 4](#production)

[Production Subcategory 4](#production-subcategory)

[GRAPEFRUIT 6](#grapefruit)

[Consumption 8](#consumption)

[PROCESSING 8](#processing)

[Trade 8](#trade)

[Trade Subcategory 9](#trade-subcategory)

[Total for Others 10](#total-for-others)

[Policy 11](#policy)

[Marketing 11](#marketing)

# Executive Summary

We forecast that South Africa's fresh citrus production will increase 2%
to 2.1 million MT in 2005/6, and fresh citrus exports will stabilize in
the near term.

2005/6 resulted in lower returns because of continuously exporting to
the already oversupplied markets, like last year. The industry therefore
advised growers to set their prices before exporting, to assure their
returns beforehand. Although this may result in reduced export volumes,
it is expected to have a profitable return for every carton of fruit
exported.

According to the Citrus Grower Association's annual report, it took the
industry about three years to derive accurate, timeous, and relevant
tree census data after deregulation of marketing boards through the
agricultural marketing Act of 1996. However, the industry is still
correcting their packed and shipped figures, and are now using the
electronic data interchange (EDI) to identify pallets. The Citrus
Processing Association is also becoming a stronger organization, with
more members feeding the database, to ensure reliability. This will be
reflected by significant changes in the processing information in the
tables in this report.

South African citrus exporters were unable to sell their fruit in China
again in 2005/6 because of protocol restrictions. A new protocol is now
established and expected to have more opportunities for the South
African farmers.

There were few phytosanitary issues handled in 2005/6, other than the
alleged finding of a live quarantine moth in the U.S. consignments that
is said to have delayed trade for 10 days.

The South African citrus industry expects to benefit from the expansion
of the Maydon Wharf Fruit Terminal in Durban that will cater for
specialized fruit. The terminal has the strict contamination protocols
expected by importing countries.

Exchange Rate as at November 02,2006 = 1 US\$ = R7.35

**Background**

South Africa's citrus season starts in late February and ends in early
October. Citrus production regions are; Limpopo, Mpumalanga, the Eastern
Cape, the Western Cape, and Kwazulu Natal. Valencia and Navel oranges
occupying the major citrus areas, followed by grapefruit, mandarins, and
lemons.

South Africa's citrus production regions are the Western Cape, Eastern
Cape, Mpumalanga, Limpopo, Northern Cape, Kwazulu Natal, and the North
West. A table below shows the citrus production areas in hectares,
including production in Swaziland:

  -------------- ----------- -------------- ------------ ------------ ----------- ------------
  CITRUS                                                                          
  PRODUCTION                                                                      
  AREAS (HA) IN                                                                   
  2005                                                                            

  DISTRICTS      Soft Citrus Oranges                     Grapefruit   Lemons &    **TOTAL**
                                                                      Limes       

  **South                    **Valencia**   **Navels**                            
  African                                                                         
  areas**                                                                         

  Western Cape   2,610       2,189          3,693        17           923         **9,432**

  Eastern Cape   1,757       3,765          4,944        288          2,075       **12,829**

  Mpumalanga     451         4,919          2,583        2,805        570         **11,328**

  Limpopo        233         11,044         1,246        2,475        751         **15,749**

  Northern Cape  41          161            409          5            28          **644**

  KZN            71          1,061          743          1,729        364         **3,968**

  North West     7           \-             \-           \-           20          **27**

  **TOTAL**      **5,170**   **23,139**     **13,618**   **7,319**    **4,731**   **53,977**

  *Swaziland*    *64*        *838*          *43*         *1,029*      *100*       *2,074*
  -------------- ----------- -------------- ------------ ------------ ----------- ------------

Source: Citrus Growers Association

South Africa's citrus farm sizes average about 700 Ha in the Western
Cape, and about 2,000 Ha in other regions. Citrus competitors in the
Western Cape are wine grapes, followed by rooibos tea and vegetables.

South Africa's peak production period is August, September and October.
It takes a maximum of 6 weeks for weak varieties (like easy peelers) and
about 11-12 weeks for strong varieties (like Valencia) fruit to transit
from tree to export markets. Fruit takes 1-2 weeks from trees to local
retail markets.

The Western Cape is South Africa's main supplier of citrus destined for
the U.S. market because of its black-spot free status. The Northern Cape
was also accredited a blackspot free status two years ago, and is
expected to slightly increase exports in the coming years.

# Production

South Africa's production of fresh citrus is expected to increase
slightly (2%) to reach 2.1 million MT in 2005/6.

South Africa's citrus production maintained the 12^th^ largest world
producer in 2005 at around 2 million MT, with the Brazil, China, the US,
and Mexico taking the lead. South Africa also became the second largest
world citrus exporter, behind Spain with exports totaling 1.3 million
MT.

In 2005, South Africa ranked 13^th^ in world production of oranges (at
about 1.4 million MT), 12^th^ in world production of lemons (at about
0.32 million MT), 6^th^ in world production of grapefruit (0.36 million
MT), and 20^th^ in world production of easy peelers (at about 0.2
million MT).

## Production Subcategory

ORANGES

South Africa's total area planted for oranges reached 37,562 HA in 2005.
This includes 23,137 Ha planted to Valencia, 13,661 Ha planted to
Navels, and 807 Ha planted to Mid-seasons. Total number of newly planted
trees amounted to 1.7 million, comprised of 1,830 trees of Mid-season
Oranges, 884,720 trees of Navels, and 813,859 Valencia trees.

However, the tables below also include soft citrus (5,233 Ha) and
production areas for Swaziland (945 Ha). The production areas for the
two countries are combined because of the production and exports
information we receive from CGA that is still not fragmented.

+-----------------------------------+-----------------------------------+
| ###### South Africa's pro         |                                   |
| duction areas for oranges in 2005 |                                   |
+-----------------------------------+-----------------------------------+
| **ORANGES VARIETIES**             | **PRODUCTION AREAS**              |
+-----------------------------------+-----------------------------------+
| Valencia                          | 23,975                            |
+-----------------------------------+-----------------------------------+
| Navels                            | 13,661                            |
+-----------------------------------+-----------------------------------+
| Mid-seasons                       | 172                               |
+-----------------------------------+-----------------------------------+
| Soft Citrus                       | 5,233                             |
+-----------------------------------+-----------------------------------+
| **Total**                         | **43,041**                        |
+-----------------------------------+-----------------------------------+

Total new plantings for oranges reached 1,951,035 trees in 2005. It
includes orange varieties as follows:

+-----------------------------------+-----------------------------------+
| South Africa's new plantings for  |                                   |
| oranges in 2005                   |                                   |
|                                   |                                   |
| (Number of trees)                 |                                   |
+-----------------------------------+-----------------------------------+
| Valencia                          | 813,859                           |
+-----------------------------------+-----------------------------------+
| Navels                            | 884,720                           |
+-----------------------------------+-----------------------------------+
| Midseasons                        | 1,830                             |
+-----------------------------------+-----------------------------------+
| Clementines                       | 38,100                            |
+-----------------------------------+-----------------------------------+
| Mandarins(Ellendale)              | 2,700                             |
+-----------------------------------+-----------------------------------+
| Satsuma                           | 60,964                            |
+-----------------------------------+-----------------------------------+
| Mandarin Hybrid                   | 139,412                           |
+-----------------------------------+-----------------------------------+
| Kumquat                           | 9,450                             |
+-----------------------------------+-----------------------------------+
| **Total**                         | **1,951,035**                     |
+-----------------------------------+-----------------------------------+

<table>
<colgroup>
<col style="width: 16%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 11%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p>South Africa, Republic of</p>
<p>Oranges, Fresh</p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2004</td>
<td>Revised</td>
<td></td>
<td>2005</td>
<td>Estimate</td>
<td></td>
<td>2006</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
</tr>
<tr class="even">
<td>Market Year Begin</td>
<td></td>
<td>01/2005</td>
<td>01/2005</td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>36350</td>
<td>36350</td>
<td>43,041</td>
<td>36700</td>
<td>36700</td>
<td>40,000</td>
<td>0</td>
<td>36700</td>
<td>40,000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>26670</td>
<td>26670</td>
<td>38,448</td>
<td>26800</td>
<td>26800</td>
<td>38,000</td>
<td>0</td>
<td>26800</td>
<td>38,000</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>11480</td>
<td>11480</td>
<td>16,331</td>
<td>11500</td>
<td>11500</td>
<td>16,000</td>
<td>0</td>
<td>11500</td>
<td>16,000</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>3960</td>
<td>3960</td>
<td>1,951</td>
<td>4000</td>
<td>4000</td>
<td>2,000</td>
<td>0</td>
<td>4000</td>
<td>2,000</td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>15440</td>
<td>15440</td>
<td>18282</td>
<td>15500</td>
<td>15500</td>
<td>18000</td>
<td>0</td>
<td>15500</td>
<td>18000</td>
</tr>
<tr class="even">
<td>Production</td>
<td>1144</td>
<td>1144</td>
<td>1,417</td>
<td>1210</td>
<td>1210</td>
<td>1,429</td>
<td>0</td>
<td>1170</td>
<td>1,500</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>8</td>
<td>8</td>
<td>8</td>
<td>10</td>
<td>10</td>
<td>10</td>
<td>0</td>
<td>10</td>
<td>10</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>1152</td>
<td>1152</td>
<td>1425</td>
<td>1220</td>
<td>1220</td>
<td>1439</td>
<td>0</td>
<td>1180</td>
<td>1510</td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>784</td>
<td>784</td>
<td>912</td>
<td>820</td>
<td>820</td>
<td>900</td>
<td>0</td>
<td>800</td>
<td>910</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>243</td>
<td>243</td>
<td>250</td>
<td>260</td>
<td>260</td>
<td>300</td>
<td>0</td>
<td>250</td>
<td>300</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>125</td>
<td>125</td>
<td>263</td>
<td>140</td>
<td>140</td>
<td>239</td>
<td>0</td>
<td>130</td>
<td>300</td>
</tr>
<tr class="even">
<td><strong>Total Distribution</strong></td>
<td><strong>1152</strong></td>
<td><strong>1152</strong></td>
<td><strong>1425</strong></td>
<td><strong>1220</strong></td>
<td><strong>1220</strong></td>
<td><strong>1439</strong></td>
<td><strong>0</strong></td>
<td><strong>1180</strong></td>
<td><strong>1510</strong></td>
</tr>
</tbody>
</table>

<table>
<colgroup>
<col style="width: 17%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p>South Africa, Republic of</p>
<p>65 Degrees Brix</p>
<p>Orange Juice</p>
<p>(MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2004</td>
<td>Revised</td>
<td></td>
<td>2005</td>
<td>Estimate</td>
<td></td>
<td>2006</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
</tr>
<tr class="even">
<td>Market Year Begin</td>
<td></td>
<td>01/2005</td>
<td>01/2005</td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
</tr>
<tr class="odd">
<td>Deliv. To Processors</td>
<td>125000</td>
<td>125000</td>
<td>263,000</td>
<td>140000</td>
<td>140000</td>
<td>239,000</td>
<td>0</td>
<td>130000</td>
<td>300,000</td>
</tr>
<tr class="even">
<td>Beginning Stocks</td>
<td>6003</td>
<td>6003</td>
<td>6003</td>
<td>2511</td>
<td>2511</td>
<td>5794</td>
<td>0</td>
<td>2111</td>
<td>3,694</td>
</tr>
<tr class="odd">
<td>Production</td>
<td>14000</td>
<td>14000</td>
<td>18,936</td>
<td>16000</td>
<td>16000</td>
<td>17,200</td>
<td>0</td>
<td>15000</td>
<td>21,000</td>
</tr>
<tr class="even">
<td>Imports</td>
<td>637</td>
<td>637</td>
<td>637</td>
<td>800</td>
<td>800</td>
<td>700</td>
<td>0</td>
<td>720</td>
<td>700</td>
</tr>
<tr class="odd">
<td><strong>Total Supply</strong></td>
<td><strong>20640</strong></td>
<td><strong>20640</strong></td>
<td><strong>25576</strong></td>
<td><strong>19311</strong></td>
<td><strong>19311</strong></td>
<td><strong>23694</strong></td>
<td><strong>0</strong></td>
<td><strong>17831</strong></td>
<td><strong>25394</strong></td>
</tr>
<tr class="even">
<td>Exports</td>
<td>10129</td>
<td>10129</td>
<td>10,782</td>
<td>10000</td>
<td>10000</td>
<td>11,000</td>
<td>0</td>
<td>9000</td>
<td>11,000</td>
</tr>
<tr class="odd">
<td>Domestic Consumption</td>
<td>8000</td>
<td>8000</td>
<td>9000</td>
<td>7200</td>
<td>7200</td>
<td>9,000</td>
<td>0</td>
<td>7000</td>
<td>9,000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>2511</td>
<td>2511</td>
<td>5,794</td>
<td>2111</td>
<td>2111</td>
<td>3,694</td>
<td>0</td>
<td>1831</td>
<td>5,394</td>
</tr>
<tr class="odd">
<td><strong>Total Distribution</strong></td>
<td><strong>20640</strong></td>
<td><strong>20640</strong></td>
<td><strong>25576</strong></td>
<td><strong>19311</strong></td>
<td><strong>19311</strong></td>
<td><strong>23,694</strong></td>
<td><strong>0</strong></td>
<td><strong>17831</strong></td>
<td><strong>25,394</strong></td>
</tr>
</tbody>
</table>

## 

## Exports and import figures on the table above are totals for HTS 200911, 200919, and 200912.

## 

## GRAPEFRUIT

In 2005, total area planted for grapefruit reached 7,319 HA in South
Africa. Newly planted trees totaled 549,153.

However, the tables below also include production areas for Swaziland
(1,029 Ha). As indicated above, the production areas for the two
countries are combined because of the production and exports information
we receive from CGA that is still not fragmented.

<table>
<colgroup>
<col style="width: 15%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p>South Africa, Republic of</p>
<p>Grapefruit, Fresh</p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2004</td>
<td>Revised</td>
<td></td>
<td>2005</td>
<td>Estimate</td>
<td></td>
<td>2006</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
</tr>
<tr class="even">
<td>Market Year Begin</td>
<td></td>
<td>01/2005</td>
<td>01/2005</td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>6900</td>
<td>6900</td>
<td>8,349</td>
<td>6910</td>
<td>6910</td>
<td>8,000</td>
<td>0</td>
<td>0</td>
<td>8,000</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>3910</td>
<td>3910</td>
<td>6,920</td>
<td>3990</td>
<td>3990</td>
<td>6,500</td>
<td>0</td>
<td>0</td>
<td>6,600</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>1570</td>
<td>1570</td>
<td>2,657</td>
<td>1600</td>
<td>1600</td>
<td>2,500</td>
<td>0</td>
<td>0</td>
<td>2,500</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>1080</td>
<td>1080</td>
<td>549</td>
<td>1050</td>
<td>1050</td>
<td>600</td>
<td>0</td>
<td>0</td>
<td>600</td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>2650</td>
<td>2650</td>
<td>3206</td>
<td>2650</td>
<td>2650</td>
<td>3100</td>
<td>0</td>
<td>0</td>
<td>3100</td>
</tr>
<tr class="even">
<td>Production</td>
<td>290</td>
<td>290</td>
<td>357</td>
<td>330</td>
<td>330</td>
<td>360</td>
<td>0</td>
<td>0</td>
<td>400</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>2</td>
<td>2</td>
<td>2</td>
<td>2</td>
<td>2</td>
<td>2</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td><strong>Total Supply</strong></td>
<td><strong>292</strong></td>
<td><strong>292</strong></td>
<td><strong>359</strong></td>
<td><strong>332</strong></td>
<td><strong>332</strong></td>
<td><strong>362</strong></td>
<td><strong>0</strong></td>
<td><strong>0</strong></td>
<td><strong>400</strong></td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>223</td>
<td>223</td>
<td>226</td>
<td>290</td>
<td>290</td>
<td>230</td>
<td>0</td>
<td>0</td>
<td>260</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>7</td>
<td>7</td>
<td>4</td>
<td>10</td>
<td>10</td>
<td>10</td>
<td>0</td>
<td>0</td>
<td>10</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>62</td>
<td>62</td>
<td>129</td>
<td>32</td>
<td>32</td>
<td>122</td>
<td>0</td>
<td>0</td>
<td>130</td>
</tr>
<tr class="even">
<td><strong>Total Distribution</strong></td>
<td><strong>292</strong></td>
<td><strong>292</strong></td>
<td><strong>359</strong></td>
<td><strong>332</strong></td>
<td><strong>332</strong></td>
<td><strong>362</strong></td>
<td><strong>0</strong></td>
<td><strong>0</strong></td>
<td><strong>400</strong></td>
</tr>
</tbody>
</table>

LEMONS

<table>
<colgroup>
<col style="width: 15%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p>South Africa, Republic of</p>
<p>Lemons, Fresh</p>
<p>(HECTARES)(1000 TREES)(1000 MT)</p></td>
</tr>
<tr class="even">
<td></td>
<td>2004</td>
<td>Revised</td>
<td></td>
<td>2005</td>
<td>Estimate</td>
<td></td>
<td>2006</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
<td>USDA<br />
Official</td>
<td>Post<br />
Estimate</td>
<td>Post<br />
Estimate<br />
New</td>
</tr>
<tr class="even">
<td>Market Year Begin</td>
<td></td>
<td>01/2005</td>
<td>01/2005</td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
</tr>
<tr class="odd">
<td>Area Planted</td>
<td>3800</td>
<td>3800</td>
<td>4,829</td>
<td>3800</td>
<td>3800</td>
<td>4,850</td>
<td>0</td>
<td>3800</td>
<td>4,850</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>2670</td>
<td>2670</td>
<td>2670</td>
<td>2670</td>
<td>2670</td>
<td>3,000</td>
<td>0</td>
<td>2670</td>
<td>3,000</td>
</tr>
<tr class="odd">
<td>Bearing Trees</td>
<td>1410</td>
<td>1410</td>
<td>2018</td>
<td>1410</td>
<td>1410</td>
<td>2061</td>
<td>0</td>
<td>1410</td>
<td>2070</td>
</tr>
<tr class="even">
<td>Non-Bearing Trees</td>
<td>1200</td>
<td>1200</td>
<td>1270</td>
<td>1200</td>
<td>1200</td>
<td>1300</td>
<td>0</td>
<td>1200</td>
<td>1300</td>
</tr>
<tr class="odd">
<td>Total No. Of Trees</td>
<td>2610</td>
<td>2610</td>
<td>3288</td>
<td>2610</td>
<td>2610</td>
<td>3361</td>
<td>0</td>
<td>2610</td>
<td>3370</td>
</tr>
<tr class="even">
<td>Production</td>
<td>199</td>
<td>199</td>
<td>323</td>
<td>203</td>
<td>203</td>
<td>340</td>
<td>0</td>
<td>203</td>
<td>350</td>
</tr>
<tr class="odd">
<td>Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td><strong>Total Supply</strong></td>
<td><strong>199</strong></td>
<td><strong>199</strong></td>
<td><strong>323</strong></td>
<td><strong>203</strong></td>
<td><strong>203</strong></td>
<td><strong>340</strong></td>
<td><strong>0</strong></td>
<td><strong>203</strong></td>
<td><strong>350</strong></td>
</tr>
<tr class="odd">
<td>Exports, Fresh</td>
<td>102</td>
<td>102</td>
<td>239</td>
<td>103</td>
<td>103</td>
<td>250</td>
<td>0</td>
<td>103</td>
<td>250</td>
</tr>
<tr class="even">
<td>Fresh Dom. Consumption</td>
<td>20</td>
<td>20</td>
<td>29</td>
<td>20</td>
<td>20</td>
<td>30</td>
<td>0</td>
<td>20</td>
<td>30</td>
</tr>
<tr class="odd">
<td>For Processing</td>
<td>77</td>
<td>77</td>
<td>55</td>
<td>80</td>
<td>80</td>
<td>60</td>
<td>0</td>
<td>80</td>
<td>70</td>
</tr>
<tr class="even">
<td><strong>Total Distribution</strong></td>
<td><strong>199</strong></td>
<td><strong>199</strong></td>
<td><strong>323</strong></td>
<td><strong>203</strong></td>
<td><strong>203</strong></td>
<td><strong>340</strong></td>
<td><strong>0</strong></td>
<td><strong>203</strong></td>
<td><strong>350</strong></td>
</tr>
</tbody>
</table>

# Consumption

South Africa's total citrus local consumption is expected to reach
340,000 MT in 2006 because of a rise in total production from last year.

# PROCESSING

South Africa's citrus processing plants received a total of about
440,000 MT of fruit in 2005. Citrus fruit are processed into juice,
liquor, oil and cattle feed. Citrus oil, which is used as a base for
industrial flavors and perfumes, is extracted from the peel using U.S.
imported FMC machines with special centifigures for maximum extraction.
The peel is further processed through drying and used as cattle feed and
in making molasses.

Juice concentrates are mainly stored in 200 Litre steel drums or tanks
in refrigerated rooms at a temperature of --15 degrees Celsius.

South Africa's processors are expected to comply with the following
accreditations: HACCP - for traceability from the farm to the final
product; ISO 9001:2000 (SGS) - for quality standards; ISO 18,000 - for
food safety, and ISO 14,000 - for environmental safety. Extra
accreditations that may be required special markets are SGF-IRMA - a
German based quality controlled system; Kosher; and Halaal.

# Trade

Although South Africa's citrus industry has already recorded exports of
about 1.314 million MT, we expect fresh citrus exports to stabilize to
last year figure, at about 1.38 million MT by the end of the season.

South Africa's citrus production is export-oriented; as a result, the
industry's main focus is to maintain a good cost competitiveness
position, high fruit quality, and knowledge about changes in world
market trends. Total exports average at about 54% of the total citrus
production, while processing and local consumption are at about 25% and
21% respectively. Of the total exports, about 70% are Oranges, 16% are
Grapefruit, 8% are lemons and limes, and 6% are mandarins.

Citrus exports have special protocol with Japan, the US, South Korea,
and Taiwan. The industry is also developing stronger export relations
with Thailand, Israel and China.

Citrus exports to the U.S. in 2005/6

  ----------------------------------------- -----------------------------
  **Citrus Type**                           **2005/6**

  Clementines                               9,965

  Lemons                                    399

  Navels                                    20,971

  Minneolas                                 1,480

  Midnights                                 11,670

  Mandarins                                 123

  **TOTAL**                                 44,590
  ----------------------------------------- -----------------------------

Source: CGA

In 2005/6 South Africa remained the second largest world exporter of
fresh citrus, following Spain, at about 1.31 million MT.

In 2005, markets for South African citrus products were poor in Europe,
Japan, Russia, Canada, and the Far East for all fruit because of a
worldwide glut. Also, administrative issues became an obstacle that
delayed the first citrus exports to China. South Africa's citrus fruit
was granted access to the Chinese market in 2004 after four orchards
were approved according to phytosanitary protocol. However, few trial
containers were shipped during 2004.

South Africa ranked 2^nd^ in world orange exports (at about 0.91 million
MT), behind Spain; 2^nd^ in world grapefruit exports (0.23 million MT),
behind the U.S.; and 5^th^ in lemon exports (at about 0.24 million MT)
in 2005.

## Trade Subcategory

+---------------------+------------+---------------------+------------+
| South Africa,       |            |                     |            |
| Republic of         |            |                     |            |
|                     |            |                     |            |
| Oranges, Fresh      |            |                     |            |
+---------------------+------------+---------------------+------------+
| Time Period         | Jan-Dec    | Units: MT           | Jan-Dec    |
+---------------------+------------+---------------------+------------+
| Imports for:        | 2004       |                     | 2005       |
+---------------------+------------+---------------------+------------+
| U.S.                |  0         | U.S.                | 0          |
+---------------------+------------+---------------------+------------+
| Others              |            | Others              |            |
+---------------------+------------+---------------------+------------+
| Zimbabwe            | 7,757      | Zimbabwe            | 7,820      |
+---------------------+------------+---------------------+------------+
| Israel              | 138        | Israel              | 140        |
+---------------------+------------+---------------------+------------+
| Spain               | 30         | Spain               | 88         |
+---------------------+------------+---------------------+------------+
| **Total for         | **7925**   |                     | **8048**   |
| Others**            |            |                     |            |
+---------------------+------------+---------------------+------------+
| **Others not        | **0**      |                     | **0**      |
| Listed**            |            |                     |            |
+---------------------+------------+---------------------+------------+
| **Grand Total**     | **7925**   |                     | **8048**   |
+---------------------+------------+---------------------+------------+

Source: WTA

+-------------------+--------------+-------------------+--------------+
| South Africa,     |              |                   |              |
| Republic of       |              |                   |              |
|                   |              |                   |              |
| Oranges, Fresh    |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| Time Period       | Jan-Dec      | Units: MT         | Jan-Dec      |
+-------------------+--------------+-------------------+--------------+
| Exports for:      | 2004         |                   | 2005         |
+-------------------+--------------+-------------------+--------------+
| U.S.              | 24,078       | U.S.              | 29,796       |
+-------------------+--------------+-------------------+--------------+
| Others            |              | Others            |              |
+-------------------+--------------+-------------------+--------------+
| Netherlands       | 121,192      | Netherlands       | 164,795      |
+-------------------+--------------+-------------------+--------------+
| Hong Kong         | 69,002       | Hong Kong         | 89,637       |
+-------------------+--------------+-------------------+--------------+
| U.K.              | 61,397       | U.K.              | 85,165       |
+-------------------+--------------+-------------------+--------------+
| Canada            | 59,619       | Canada            | 65,746       |
+-------------------+--------------+-------------------+--------------+
| Spain             | 56,276       | Spain             | 60,378       |
+-------------------+--------------+-------------------+--------------+
| Russia            | 46,947       | Russia            | 58,979       |
+-------------------+--------------+-------------------+--------------+
| Italy             | 33,464       | Italy             | 47,985       |
+-------------------+--------------+-------------------+--------------+
| Saudi Arabia      | 32,216       | Saudi Arabia      | 41,377       |
+-------------------+--------------+-------------------+--------------+
| U.A.Emirates      | 31,621       | U.A.Emirates      | 34,846       |
+-------------------+--------------+-------------------+--------------+
| Belgium           | 27,786       | Belgium           | 29,520       |
+-------------------+--------------+-------------------+--------------+
| **Total for       | **539520**   |                   | **678428**   |
| Others**          |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Others not      | **172,994**  |                   | **203,727**  |
| Listed**          |              |                   |              |
+-------------------+--------------+-------------------+--------------+
| **Grand Total**   | **736592**   |                   | **911951**   |
+-------------------+--------------+-------------------+--------------+

Source: WTA

No imports of lemons were recorded in 2005.

+--------------------+-------------+--------------------+-------------+
| South Africa,      |             |                    |             |
| Republic of        |             |                    |             |
|                    |             |                    |             |
| Lemons, Fresh      |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Time Period        | Jan-Dec     | Units:             | MT          |
+--------------------+-------------+--------------------+-------------+
| Exports for:       | 2004        |                    | 2005        |
+--------------------+-------------+--------------------+-------------+
| **U.S.**           | **551**     | **U.S.**           | **422**     |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Saudi Arabia       | 17,274      | U.A.Emirates       | 70,295      |
+--------------------+-------------+--------------------+-------------+
| U.A.Emirates       | 13,848      | Kuwait             | 34,365      |
+--------------------+-------------+--------------------+-------------+
| U.K.               | 10,992      | Saudi Arabia       | 24,219      |
+--------------------+-------------+--------------------+-------------+
| Netherlands        | 10,087      | Netherlands        | 19,914      |
+--------------------+-------------+--------------------+-------------+
| Hong Kong          | 9,105       | U.K.               | 15,798      |
+--------------------+-------------+--------------------+-------------+
| Italy              | 8,423       | Hong Kong          | 12,491      |
+--------------------+-------------+--------------------+-------------+
| Japan              | 7,793       | Bahrain            | 11,163      |
+--------------------+-------------+--------------------+-------------+
| Belgium            | 5,401       | Japan              | 9,209       |
+--------------------+-------------+--------------------+-------------+
| Russia             | 4,270       | Italy              | 6,533       |
+--------------------+-------------+--------------------+-------------+
| Germany            | 3,859       | Belgium            | 5,074       |
+--------------------+-------------+--------------------+-------------+
| **Total for        | **91052**   |                    | **209061**  |
| Others**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Others not       | **20,536**  |                    | **29,772**  |
| Listed**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Grand Total**    | **112139**  |                    | **239255**  |
+--------------------+-------------+--------------------+-------------+

Source: WTA

+----------------------+-----------+----------------------+-----------+
| South Africa,        |           |                      |           |
| Republic of          |           |                      |           |
|                      |           |                      |           |
| Grapefruit, Fresh    |           |                      |           |
+----------------------+-----------+----------------------+-----------+
| Time Period          | Jan-Dec   | Units:               | MT        |
+----------------------+-----------+----------------------+-----------+
| Imports for:         | 2004      |                      | 2005      |
+----------------------+-----------+----------------------+-----------+
| **U.S.**             | **0**     | **U.S.**             | **0**     |
+----------------------+-----------+----------------------+-----------+
| Others               |           | Others               |           |
+----------------------+-----------+----------------------+-----------+
| Zimbabwe             | 1,936     | Zimbabwe             | 1,720     |
+----------------------+-----------+----------------------+-----------+
| Israel               | 428       | Israel               | 363       |
+----------------------+-----------+----------------------+-----------+
| Spain                | 42        | Spain                | 49        |
+----------------------+-----------+----------------------+-----------+
| Italy                | 40        |                      |           |
+----------------------+-----------+----------------------+-----------+
| # Total for Others   | **2446**  |                      | **2132**  |
+----------------------+-----------+----------------------+-----------+
| **Others not         | **0**     |                      | **0**     |
| Listed**             |           |                      |           |
+----------------------+-----------+----------------------+-----------+
| **Grand Total**      | **2446**  |                      | **2132**  |
+----------------------+-----------+----------------------+-----------+

Source: WTA

+--------------------+------------+--------------------+-------------+
| South Africa,      |            |                    |             |
| Republic of        |            |                    |             |
|                    |            |                    |             |
| Grapefruit, Fresh  |            |                    |             |
+--------------------+------------+--------------------+-------------+
| Time Period        | Jan-Dec    | Units:             | MT          |
+--------------------+------------+--------------------+-------------+
| Exports for:       | 2004       |                    | 2005        |
+--------------------+------------+--------------------+-------------+
| **U.S.**           | **70**     | **U.S.**           | **4,800**   |
+--------------------+------------+--------------------+-------------+
| Others             |            | Others             |             |
+--------------------+------------+--------------------+-------------+
| Japan              | 68,474     | Japan              | 48,781      |
+--------------------+------------+--------------------+-------------+
| Netherlands        | 40,910     | Netherlands        | 48,142      |
+--------------------+------------+--------------------+-------------+
| U.K.               | 17,402     | U.K.               | 20,869      |
+--------------------+------------+--------------------+-------------+
| Italy              | 10,098     | Taiwan             | 17,611      |
+--------------------+------------+--------------------+-------------+
| Belgium            | 9,862      | Canada             | 17,472      |
+--------------------+------------+--------------------+-------------+
| Spain              | 5,647      | Belgium            | 13,648      |
+--------------------+------------+--------------------+-------------+
| France             | 5,146      | Spain              | 12,101      |
+--------------------+------------+--------------------+-------------+
| Russia             | 3,532      | Italy              | 10,927      |
+--------------------+------------+--------------------+-------------+
| Germany            | 2,940      | Hong Kong          | 8,835       |
+--------------------+------------+--------------------+-------------+
| Canada             | 2,903      | Russia             | 6,214       |
+--------------------+------------+--------------------+-------------+
| **Total for        | **166914** |                    | **204,600** |
| Others**           |            |                    |             |
+--------------------+------------+--------------------+-------------+
| **Others not       | **30,698** |                    | **16,275**  |
| Listed**           |            |                    |             |
+--------------------+------------+--------------------+-------------+
| **Grand Total**    | **197682** |                    | **225,675** |
+--------------------+------------+--------------------+-------------+

Source: WTA

# Policy

The National Department of Agriculture expects the implementation of two
policies, namely; Agriculture Industry Development, and Mentorship to be
finalized by the end of 2006. The two policies were developed in
consultation with the industry, and they focus on refining the manual
skills of the historically disadvantaged groupings.

The Citrus Growers Association called for a review of the Agricultural
Marketing Act.

According to the revised regulation for quality assurance, re-inspection
for hard citrus should be conducted within 28 days and about 21 days for
soft citrus. For more information, look at:
[http://www.nda.agric.gov.za](http://www.nda.agric.gov.za/)

# Marketing

+-----------------------------------+-----------------------------------+
| **South Africa's fresh citrus     |                                   |
| prices in the local markets in    |                                   |
| 2005**                            |                                   |
+-----------------------------------+-----------------------------------+
| **Citrus Type**                   | **Prices**                        |
|                                   |                                   |
|                                   | **(US\$/MT)**                     |
+-----------------------------------+-----------------------------------+
| Oranges (Navels & Valencias)      | 148.47                            |
+-----------------------------------+-----------------------------------+
| Soft Citrus                       | 201.60                            |
+-----------------------------------+-----------------------------------+
| Grapefruit                        | 198.40                            |
+-----------------------------------+-----------------------------------+
| Lemons & Limes                    | 175.97                            |
+-----------------------------------+-----------------------------------+

Source: CGA