South Africa agrees with two new shipping companies and rearms to export citrus fruits to Europe

Fresh Orange

Published Mar 26, 2024

Tridge summary

South African citrus exporters have formed partnerships with shipping giants MSC and Hapag Lloyd to enhance their exports to Europe, with ambitions to double their shipments by 2032 despite facing a temporary decline this season due to Red Sea closures. This strategic move aims to leverage South Africa's position as the world's second-largest citrus exporter, taking advantage of competitive pricing and a free trade agreement with the EU. However, the sector has experienced a 33% decrease in citrus arrivals to Europe this year, a situation exacerbated by transportation challenges and rising costs. Additionally, the industry is navigating through concerns from European local producers regarding market competition and adherence to EU pest prevention standards, highlighting the need for uniform inspection protocols across EU ports. Concurrently, there are ongoing efforts to ensure fair pricing and orderly competition in the market, aimed at supporting local producers, stabilizing the market, and protecting consumers, thereby fostering a healthy and competitive economic landscape.

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Original content

South African exporters have reached an agreement with the shipping companies MSC and Hapag Lloyd to reinforce their citrus exports to Europe for the next campaign. South Africa is the main competitor in the southern hemisphere for Valencian and Castellón oranges and its imports to the EU have grown by 19% in the last five years. With the new lines, South African producers aim to double their shipments by 2032. The closure of the Red Sea has caused temporary difficulties in South African exports in the current season, which has suffered its first decrease in arrivals to the old continent since the signing of the free trade agreement in 2016. But beyond these problems, South Africa prepares to continue supporting its imports in European markets in the next decade. Thus, it has reached an agreement with two companies. One connection corresponds to MSC, one of the world's leading shipping companies in container traffic, which will carry out a service with a direct stopover with ...

Source: Comitedecitricos