Boom Or Bust For Expanding Orchards?

With prices remaining high, the citrus, avocado and macadamia industries have boomed in recent years and producers have continued expanding. This has left many wondering whether the situation is too good to be true and whether the bubble might be due to burst. Lindi Botha spoke to a number of industry experts.

- Lindi Botha

FAST FACTS

Healthy eating trends are the key driver behind a relentless increase in demand for avocados, macadamias and citrus.

A shortage of water looks set to be a major constraint for producers of these crops.

Other challenges include bottlenecks at the country’s ports and overreliance on certain markets.

If there is one central message to consider on the back of the boom in the avocado, macadamia and citrus industries (see tables 1, 2 and 3), it’s that health foods are moving up on global shopping lists. Gross industry returns for all three industries have grown at a faster rate than production. Moreover, fuelled by the trend of healthy eating, ‘superfood’ labels and, where nuts are concerned, a move to replace animal protein with plantbased alternatives, consumption is likely only to increase.

As demand outstrips supply for all three crops, the bigger question remains: can South African farmers and related support industries keep up?

SO FAR, SO GOOD

Growers have certainly played their part, with avocado orchards currently totalling 14 700ha, citrus 96 000ha and macadamias nearly 55 000ha (see Table 4).

Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa, underlines the role that the greater industry plays in ensuring farmers get a return on their investment.

“Investment by growers in research and technical development has meant that the industry has had all the right ingredients to flourish.