South African Farmers’ Perceptions of the Benefits and Costs of Complying with EUREPGAP to Export Fresh Citrus to the European Union (EU)

A representative stratified random sample of 100 South African farmers from across allproduction regions that export fresh citrus to the EU were surveyed during 2007-2008 todocument their perceptions of the benefits and costs of complying with EUREPGAP standards oncitrus exports. Principal Component Analysis identified six broad dimensions of internal benefitsas improved operating/technical performance; regulations compliance and intra-businessbenefits; gains in competitiveness; regulations compliance and new market access; benefits fromexisting markets; and to overcome non-tariff barriers to entry. Two further dimensions of supplychain benefits identified by PCA were improved business working relationship and productquality benefits, and improved cooperation and contractual benefits. The sampled growers thusperceive operational, technical, safety, management, monetary, marketing and supply chainbenefits from certification. The major costs of implementing EUREPGAP certification related toinitial investment costs and the recurrent annual costs of compliance. The respondents, onaverage, spent R70510 on initial compliance costs, mainly for infrastructure, additionalbuildings and employees training. Some 60% of respondents spent less than 1% of annual farmturnover on initial compliance costs, while most of the respondents (84%) spent less than 1% ofannual farm turnover on recurrent costs of compliance. Growers that owned a pack-house hadstatistically significantly higher initial and annual costs of compliance. The intra- and inter-firmbenefits and costs of compliance identified by these results indicate factors that policymakers,and the Citrus Growers’ Association of Southern Africa, can focus on to improve thecompetitiveness of SA fresh citrus exports to the EU.