Diesel Shortages, Price Hikes Threaten SA’s Citrus Export SeasonCGA Warns of Supply Chain Crisis

The Citrus Growers’ Association of Southern Africa (CGA) has raised fresh concerns over fuel supply disruptions, warning that isolated diesel shortages and rising prices could jeopardise the country’s upcoming citrus export season.

The Reports

The industry body on Monday said it has received reports of limited diesel availability at certain fuel stations, despite assurances that national supply remains stable.

The shortages are believed to be driven by unusual buying patterns and controlled allocation by suppliers, amid expectations of higher fuel prices linked to ongoing tensions in the Middle East.

The Stakes

With the citrus season set to begin in earnest in April, the CGA said it is closely monitoring both fuel availability and costs, which are critical to the smooth functioning of the export supply chain.

Dr Boitshoko Ntshabele , CEO of the CGA, warned that the situation requires urgent coordination.

“These factors will impact the upcoming citrus season, which begins in earnest from April. The CGA has also received reports of isolated diesel shortages, which is concerning.”

The Economic Importance

Ntshabele stressed the importance of agriculture exports to the economy.

“South Africa is the world’s second largest exporter of citrus, and citrus is South Africa’s largest agricultural export sector.”

95% of the national citrus crop moves by road to ports.

“Should controlled selling or limited availability of diesel persist, it could directly affect the functioning of the citrus supply chain. This points to the problems inherent in a logistics system almost wholly reliant on trucks.”

The Job Impact

Ntshabele noted that recent developments place additional strain on a sector that supports 140,000 jobs at farm level.

“We therefore encourage the government to assist in mitigating negative impacts and to create an enabling environment that supports the continued growth of the citrus industry.”

Farmer Concerns

Dawee Maree , head of agriculture information and marketing at FNB South Africa, said clients have reported rationing and shortages in various areas.

“The increase coming Wednesday will definitely be a huge shock to the system, and farmers will bear the brunt of it, given that they are price takers and will not be able to transfer the cost increase down the supply chain. So shortages and massive price increases are a double-whammy for the industry.”

Bennie Van Zyl , TLU SA general manager, said they were also concerned about diesel shortages for winter grain crops and summer rainfall areas close to harvesting.

“The cost of production is already unaffordable, and with this rise, it will get out of hand.”

The Bottom Line

Diesel shortages. Price hikes. A logistics system reliant on trucks. A citrus season about to start.

The CGA is sounding the alarm. Farmers are feeling the pain. And the government is being called on to act.