Greater Access for South African Lemons to China

Published 2021년 9월 15일

As of the 31st of August, the new long-awaited citrus protocol amendment signed between South Africa and China enters into effect. The agreement opens the door for South African lemon exports to the Chinese markets by increasing the shipping temperature for the disinfestation of lemons, which has been the main barrier to entering the market. According to the Citrus Growers Association, the agreement will add another USD 22 million in export revenue to the South African industry. The new signed protocol aims to surpass Argentina and Chile as the main lemon suppliers for the Chinese market.

The deal signed between the countries is an amendment of the present protocol following a request by South Africa to exempt lemons from the cold treatment requirements. The protocol that was in place had forced lemon shipments to be treated at very low temperatures which made the fruit susceptible to chilling injuries and subsequent decay.

A New Treatment Regulation Feasible to Comply

Although South Africa is one of the world’s largest fresh lemon suppliers until now there have been very few lemon shipments to China due to the disinfestation treatment requirements that were previously set. The previous shipping protocol required lemons to be treated at -0.5ºC for 24 days caused cold damage to the fruits and severely limited the amount sent to China. The new amendment now allows lemons to be shipped at +3ºC for 18 days which exporters will be able to more realistically comply with. South Africa already exports fresh lemons to various markets that require the same type of treatment for which facilities are already in place.

Lemons to Support South African Citrus Growth in Asia

South Africa is currently experiencing continuous growth in lemon production with local lemon production expected to grow by 1.75 million MT by 2024. Thus, the finalization of the revised protocol will improve access to China and assist in marketing the increased volumes which are becoming a critical new market for growth. South Africa is already the third-largest global supplier of fresh lemons accounting for 10% of the global export share with a peak harvest season that extends from mid-May through July.

According to the Citrus Growers' Association (CGA), South African citrus is currently on track to shipping close to 160 million cartons of citruses to its global markets this year. In addition, non-lemon citrus exports from South Africa to China have enjoyed substantial growth, reaching 130,000 metric tons in 2020 with shipments of grapefruits, oranges, and soft citruses. However, for lemons only 151.5 tons were exported over the same year, accounting for 0.03% of South Africa’s total lemon exports.

Source: ITC Trade Map, Tridge

Market Potential for South African Lemons in China

The new protocol will directly impact South African seedless lemons, which is an emerging demanded category in China. The market potential for this specific category in China remains strong as demand for this fruit has increased in recent years. In 2020, China imported 10,700 tonnes of fresh limes with a value of USD 15.7 million, mainly from Chile (53.2%), Egypt (17.2%), and the US (8.7%). South Africa currently holds just 1% of China’s import share.

In June, the CGA estimated that South Africa could be shipping 25,000 tonnes of fresh lemons to China by 2024, and with this, an additional USD 22 million in export value could add to the country's citrus export value. With this estimation, South Africa would be surpassing Chile and Egypt as the leading suppliers to China. South African lemons are exported to the Middle East (35%), Europe (34%), Southeast Asia (9%), Russia (9%), and North America (5%).

Source: ITC Trade Map, Tridge

Furthermore, the new agreement follows the recent authorization of South African citruses to the Philippines, which could also potentially result in new export earnings close to USD 14 million a year. In 2020, lemon exports had a 33% growth in value from the previous year and 16% in quantity, increasing in new export markets such as the US, India, Philippines, Japan, Vietnam, and the European Union.

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