South African citrus growers are feeling the effect of the exchange rate influenced by weaker US dollar on top of difficult growing conditions.
Johan Stumpf, CEO of the Sundays River Citrus Company, admitted inflation - particularly labour costs - had been much higher than the returns for fruit.
On-farm and packhouse costs are up 50% over the last four years, although market prices have remained the same.
As a result, farms have been consolidated in order to become more economic.
Overall, citrus crops are between 10%-15% down,
although fruit size is up and quality generally continuing to be good as the season progresses.
A new late harvested seedless easy peeler known as Clemgold is also making its appearance as part of a licensing arrangement which allows Capespan to grow 600ha. Eventually, two million cartons of fruit will be produced.