SA loses R1bn in agricultural exports due to strike"Initial estimates by the citrus industry indicate that due to bunched marketing a loss of approximately 650 million rand is anticipated," she said. "The industry is bound by contractual obligations for example freshness and prompt delivery," the minister said. She also pointed out that with markets in Greece, Spain and Ireland already compromised by the Euro crisis "they are quite keen to shed markets"
"We are afraid that once we are unable to meet our contractual obligations they would be at liberty to end those contracts," she said.
The slowdown has impacted South Africa’s hugely profitable citrus industry which exports mainly to Europe.Winter is the main harvesting period for citrus fruits and the strike has now severely impacted their exports."Initial estimates by the citrus industry indicate that due to bunched marketing a loss of approximately 650 million rand is anticipated," she said. "A further loss of 50 million rand due to storage costs is possible.
"Last week alone a storage surcharge for the over 70,000 pallets was imposed on the citrus cargo currently awaiting loading. This penalty amounted to 80 million rand."
The minister said she has been in discussion with her cabinet colleagues Barbara Hogan and Rob Davies, Ministers for Public Enterprises and Trade and Industry, in the hope that some form of deadlock breaking mechanism can be found. – May 24, 2010
