https://www.engineeringnews.co.za
Africa|Export|Gas|Oil And Gas|Ports
Africa|Export|Gas|Oil And Gas|Ports
africa|export|gas|oil-and-gas|ports

Ukraine conflict squeezes South Africa's citrus exports to Russia

26th May 2022

By: Reuters

  

Font size: - +

The conflict in Ukraine has throttled South Africa's citrus exports to Russia and driven input costs higher, further squeezing fruit producers already suffering from spiralling shipping costs, an industry body said.

The war, which started on February 24, blocked South Africa's citrus shipments to Russia in the immediate aftermath, Citrus Growers Association of Southern Africa (CGA) chief executive Justin Chadwick told Reuters.

Although shipments to Russia have since resumed, exports have slumped as producers concerned about payments and shipping delays explore other markets.

"Since then, the United Kingdom's share of soft citrus has increased from 24% to 61%, at the expense of Russia decreasing from 32% to 5%," Chadwick said.

The Middle East and South East Asia were also taking up more of South Africa's mandarins and grapefruit, respectively.

South Africa's total citrus exports to Russia have fallen by nearly 70% on a year-to-date basis compared with the same period last year, according to CGA data.

South Africa shipped 11.2-million 15 kg cartons of citrus fruit last year to Russia, its fifth biggest export market, according to the industry group.

But the biggest impact of the conflict has been the surge in oil and gas prices, Chadwick said.

"The conflict has also resulted in a major hike in fertiliser, fuel and agrochemical prices, which will continue to place strain on Southern African citrus growers and farmers across the world," he said.

The conflict has also hit shipping, Chadwick said, with major European ports used by South African fruit exporters being heavily congested as all Russia-bound containers are scanned, extending transit times to 90 days from the usual 24 days.

Before the conflict, the industry was already grappling with sky-rocketing shipping costs, which jumped by about 150% over the past year, according to Chadwick.

"At these levels, it now costs between 2 and 2.5 times as much to ship the fruit as it does to produce it over the course of an entire year," he said.

Edited by Reuters

Comments

Showroom

SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.104 0.162s - 159pq - 2rq
Subscribe Now