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Citrus global production network in Western Cape, RSA: Strengthening of established commercial farming by bypassing water reforms

Ramsha Shahid
Water Resources Management Group, Wageningen University, Wageningen, The Netherlands; ramsha.shahid@wur.nl

Gerardo van Halsema
Water Resources Management Group, Wageningen University, Wageningen, The Netherlands; gerardo.vanhalsema@wur.nl

Saskia van der Kooij
Water Resources Management Group, Wageningen University, Wageningen, The Netherlands; saskia.vanderkooij@wur.nl

Petra Hellegers
Water Resources Management Group, Wageningen University, Wageningen, The Netherlands; petra.hellegers@wur.nl

ABSTRACT: In the Republic of South Africa (RSA), reforms to existing and new water allocations have been aimed mainly at redressing the racial injustice of the past. Such reforms, however, have failed to materialise in the citrus-producing region of the Western Cape. This paper argues that the emergence of a strong Global Production Network (GPN) of citrus export at the time of rolling out of the water reforms has contributed, and continues to do so, to the failure of these reforms. The high quality and quantity requirements imposed by the GPN, we argue, necessitated the use of precision fertigation, which acted as an entry barrier to Western Cape citrus products. With access to specialised precision fertigation networks, the landed (white) commercial farmers were able to forge long-lasting relationships of trust and quality with the retailers of the citrus GPN and thus gain and maintain privileged access to it. Their strong position in the citrus GPN enabled three strategies of new water access to emerge, that are exclusively available to the established (white) commercial farmers, namely: (1) using water illicitly; (2) attaining a controlling stake in Black Economic Empowerment (BEE) partnerships; and (3) through access to the network of water consultants. New water access consolidates existing positions of growers in the GPN, making the position in the GPN and water expansion a mutually reinforcing phenomena. High GPN entry barriers have advantaged established commercial farmers and effectively impeded the intended introduction of more equitable water reforms in the region.

KEYWORDS: Precision agriculture, precision fertigation, water reforms, global production networks, entry barriers, technology, network, market access, citrus, South Africa