Citrus growers in South Africa have been urged to train workers after a rise in labour costs.
“The economics of growing and exporting citrus fruit from South Africa is not looking good,' said Justin Chadwick, chief executive of the Citrus Growers Association of South Africa.
Research from the association found that labour costs have risen by 52 per cent since 2008 and the producer price index outlook – influenced predominantly by electricity and transport prices – is up by 40 per cent. “The reality is we have now moved from cheap unskilled labour to expensive unskilled labour,” said Chadwick. “The key will be to move to expensive skilled labour; this will take some time and investment in training and human capital development.”
With increasing reefer freight increases, weak rand/US dollar exchange rates and transport tolls and bunker rates both on the rise, Chadwick is forecasting an inflationary increase of 20 per cent for citrus logistics costs in 2013.
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