An integrated analysis of the flow volumes, conditions and cold storage capacities in the South African citrus supply chain.

Date
2024-03
Journal Title
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The South African citrus industry is expected to grow another 33% over the next 6 years and is defined as the second-largest exporter of fresh citrus globally. Ultimately, the supply chain that facilitates this flow has various processes throughout it, and the perishable nature of citrus means that the underlying timelines and conditions are of the utmost importance for the success of the industry. The overall quality of the fruit is ultimately a function of time and temperature, which are currently unknown variables. Additional cold stores are extensively utilised to reduce fruit degradation and ensure proper phytosanitary measures. While prior research has provided excellent examples of individual sections of the supply chain, effects of certain sections, or a general capacity overview, there is no specific study that brings together all of these disparate elements to create a holistic supply chain overview. As such, using a pragmatic mixed methods approach, the problem of defining the various stages of the supply chain, the underlying conditions, timelines, their effects, and the overall ability of the industry to export was embarked upon. Ultimately, the golden thread that runs through this research is the interconnectedness of all the individual processes, which is what ultimately defines an industry and its supply chain. Although citrus is a winter crop, the regions in which it is grown throughout South Africa mean that there is significant temperature variability during the harvest of fruit, with temperatures in excess of 28 °C at harvest. This is then combined with on-farm dwells lasting 1-2 days, which have a significant impact on fruit quality, with fruit losing upwards of 5 days of shelf life on the farm alone. Ultimately, this is having cumulative effects throughout the supply chain, as fruit progresses, taking 10-15 days before being loaded into a container and then an additional 20-40 days before arriving at the destination, with losses estimated to be upwards of 6% of all shipments. The additional growth is likely to add additional capacity constraints within the industry, with severe capacity constraints forecasted to occur by 2026 without additional cold storage capacity. Regulatory requirements may add an additional burden in the coming years, as fruit destined for the European Union has to undergo additional cooling. As such, the industry will likely have to invest R 1.7 billion (11% of its gross value) over the next 5 years to ensure sufficient cold storage capacity. The findings of the research show that the coming years will present significant hurdles within the South African citrus industry, requiring targeted and pragmatic interventions to ensure the continued profitability and success of the industry as a whole.
AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse sitrusbedryf word verwag om oor die volgende 6 jaar met nog 33% te groei en word beskou as die tweede grootste uitvoerder van vars sitrus wêreldwyd. Uiteindelik het die voorsieningsketting wat hierdie vloei fasiliteer, verskeie prosesse regdeur dit, en die bederfbare aard van sitrus beteken dat die onderliggende tydlyne en toestande van uiterste belang is vir die sukses van die bedryf. Die algehele kwaliteit van die vrug is uiteindelik 'n funksie van tyd en temperatuur, wat tans onbekende veranderlikes is. Addisionele koelstore word wyd gebruik om vrugbederf te verminder en korrekte fitosanitêre maatreëls te verseker. Alhoewel vorige navorsing uitstekende voorbeelde van individuele dele van die voorsieningsketting gelewer het, die effekte van sekere dele, of 'n algemene kapasiteitoorsig, is daar geen spesifieke studie wat al hierdie uiteenlopende elemente saambring om 'n holistiese voorsieningsketting-oorsig te skep nie. As sodanig, deur 'n pragmatiese gemengde metodes benadering te gebruik, is die probleem van die definisie van die verskeie stadiums van die voorsieningsketting, die onderliggende toestande, tydlyne, hul effekte, en die algehele vermoë van die bedryf om uit te voer, aangepak. Uiteindelik is die goue draad wat deur hierdie navorsing loop, die onderlinge verband van al die individuele prosesse, wat uiteindelik 'n bedryf en sy voorsieningsketting definieer. Alhoewel sitrus 'n wintergewas is, beteken die streke waarin dit regdeur Suid-Afrika gekweek word dat daar aansienlike temperatuurvariasie gedurende die vrugteoes is, met temperature van meer as 28°C met oes. Dit word dan gekombineer met plaasverblywe van 1-2 dae, wat 'n aansienlike impak op die vrugtegehalte het, waar vrugte alleen op die plaas tot 5 dae rakleeftyd kan verloor. Uiteindelik het dit kumulatiewe effekte regdeur die voorsieningsketting, aangesien vrugte vorder, met 10-15 dae voordat dit in 'n houer gelaai word, en dan 'n verdere 20-40 dae voordat dit op die bestemming arriveer, met geskatte verliese van meer as 6% van alle versendings. Die addisionele groei gaan waarskynlik bykomende kapasiteitsbeperkings binne die bedryf tot gevolg hê, met ernstige kapasiteitsbeperkings wat teen 2026 voorspel word sonder addisionele koelstoor kapasiteit. Regulatoriese vereistes mag in die komende jare 'n addisionele las toevoeg, aangesien vrugte bestem vir die Europese Unie aanvullende koeling moet ondergaan. As sodanig sal die bedryf waarskynlik R 1.7 miljard (11% van sy bruto waarde) oor die volgende 5 jaar moet belê om voldoende koelstoor kapasiteit te verseker. Die bevindinge van die navorsing toon dat die komende jare beduidende struikelblokke binne die SuidAfrikaanse sitrusbedryf gaan bied, wat geteikende en pragmatiese ingrypings vereis om die volgehoue winsgewendheid en sukses van die bedryf as geheel te verseker.
Description
Thesis (MEng)--Stellenbosch University, 2024.
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