South Africa’s orange industry, a key source of agricultural export earnings, is under pressure from rising input costs, stricter international regulations, and persistent infrastructure problems. This article assesses the industry’s strengths and vulnerabilities by considering production, demand, support industries, firm strategies, government policies, and external influences. Exporters are facing challenges due to higher input prices, increased shipping costs, new EU phytosanitary requirements, and inflation in major markets. Further issues such as unreliable electricity, inefficient ports, and weak transport networks reduce profitability and deter investment. No single factor dominates; rather, competitiveness is shaped by a complex interplay of elements.
South Africa’s major citrus-producing regions, Limpopo, the Eastern Cape, and the Western Cape, continue to offer climate and soil advantages conducive to high-quality fruit production. While the local market plays a limited role, with only 7% of domestically produced oranges being consumed fresh in South Africa, exporters benefit from strong demand in international markets. However, global competition is tightening rapidly, with Egypt, Spain, Peru, Chile, Morocco, Australia, and Argentina expanding their presence in key markets.
Repeated load shedding has increased exporters’ costs as they rely on diesel generators to keep the cold chain intact. Poor performance at key ports leads to higher freight costs and delays, which risks fruit quality and reduces market returns. However, the presence of local input suppliers and research institutions supports robust production and competitiveness. Telecommunications, specialised technology providers, and storage facilities present areas for targeted improvement. Meanwhile, government regulations remain a significant constraint due to restrictive labour laws, bureaucratic delays, and an unstable tax environment. Political instability, shifting policy priorities, and limited trust in governance further undermine business confidence.
Stakeholders highlighted unreliable port, rail, and road infrastructure as among the most significant threats to long-term competitiveness. Inadequate trade negotiations are also serving as a barrier to accessing new markets, while growing competition from leading citrus exporters such as Egypt and Spain continues to increase pressure. Although South Africa’s orange industry has a strong production base and significant export potential, its future competitiveness hinges on urgent reforms. Priorities include stabilising energy supply, improving transport and port infrastructure, accelerating skills development, and creating a more reliable and supportive policy environment. Without decisive action, South Africa risks losing ground in a rapidly evolving global citrus market.
