South Africa’s Citrus Trade Flows Among The Bric Countries:Brazil, Russia, India And China

South Africa citrus industry has been from its establishment set to be export orientated. Over the years it has been successful in grabbing sizeable market share in different market destinations. This sizeable market share has been realized through passing enormous trade limiting factors of different sorts. It in the same vein, that over the years South Africa’s citrus exporters started to seek new market destinations with favorable entry requirements while still making good profits. SA citrus industry is among the top competent citrus industries in the world. BRIC fastest growing economy and enormous population size has gotten the attention of South Africa’s citrus exporters to set their course in securing the biggest portion of the market. The objective of this study was therefore to assess the trade potentials of South African citrus exports to the BRIC countries by identifying and analyzing significant factors influencing the quantities/volumes of citrus exported.The study adopted the gravity model and time series data from 1999 to 2013 as the unit of analysis.The literature has proved that gravity model is one of the greatest stories in empirical economics to date and it has been consistent with several theoretical models of trade. In addition gravity model has been said to be a span of oxen for applied work in international trade. Furthermore the model has been an effective tool in explaining bilateral trade flows by clearly explaining the factors that aid or restrict trade among trading countries.The findings of this study showed that in the current South Africa citrus trade flows among the BRIC countries, there are quite number of factors which discourage trade flows than factors which aid or encourage the same. In almost all the cultivars of citrus exported to the BRIC counties by SA over the studied period, the estimates of tariffs were highly significant in showing export volumes being reduced. It is worth to mention that not only tariffs were the main challenging factor in discouraging large volumes of exports, the real exchange rate vitality also has been proven to possess an element of discouraging trade flows. On the other hand, the analysis has shown that economic size and population as expected among the BRIC countries encourage the SA citrus exports.Conclusion remarks about the South Africa’s citrus trade flows among the BRIC countries have led to this study arriving at some recommendations which will influence decisions of the South African citrus industry in developing strategies that will make the industry secure a big market share and sustain it in these countries. It is of high importance for the South African citrus industry to bear in mind that there is no average consumer, and therefore a continual encouragement in promoting fruit of superior quality and good practices by the smallholders as well is paramount. Though the industry has a diversified export market, a more focus on researching the consumer preferences of the BRIC market should be encouraged.For the purposes of the further study, it is recommended that a study focusing on the performance of South African citrus exports to the BRIC countries under the influence of non tariff measures such a food safety standards be conducted. On the other hand this study did not capture the analyses of the processed products which may be a complimenting in what is seemingly to be a loss of market shares in this market. Therefore it is along this line that this study proposes a more informative to research on such aspects to be conducted.