An evaluation of the risks in South African citrus farming

Abstract

The citrus industry in South Africa faces many of the same challenges as other industries, which can be associated with emerging economies. However, because it is such a lucrative and promising industry, it is advisable to identify and address issues that may prevent the industry from contributing to the well-being of the country's economy, employment of the population and food security. This paper examines and assesses these risks to determine whether each risk has the potential to destroy the industry, seriously disrupt it, or have little impact on it. Those risks that can be controlled by the farmer and which are critical because of their nature are also examined. Compared to other literature on the subject, it looks for new innovative ideas to mitigate the risks mentioned and improve the industry and, thus, the South African economy. Risks include political risks, macroeconomic factors, resources and their management, and technology. The Porter model is applied and discussed, as are various competitiveness models like relative trade advantage, net export index and constant market share. The risk model used is the Swiss cheese risk model, which is very effective in predicting disasters. Some exciting technological advances in agriculture are presented, as well as some recommendations for solving the industry's problems. This study used secondary data; it is, therefore, clinical and unbiased. It contains some interesting statistics and information from local and international sources that are insightful and paint a complete and inclusive picture. The citrus industry in South Africa is very promising, and the opportunities in the industry are exciting and can be approached with great anticipation.