The price of potatoes is set to reach a low this month and to remain cheap until early next year.
This is according to David Nel from the Grow Fresh market agency, for industry website Fresh Plaza, who cited good weather and a substantial increase in plantings.
“Potatoes are abundant on the market, resulting in deflationary prices compared to the same time last year. Good yields for the season due to favourable weather conditions have resulted in a national potato price decrease by as much as 50% for August in comparison with August 2024,” he said.
Eskom’s load-shedding in 2023 and winter frost in 2023 and 2024 had resulted in lower volumes nationally and higher than normal potato prices over the past two years, he said. The profitable prices, good rains and seed availability led to producers opting to plant additional hectares for the season.
“This winter was mild, with almost no frost damage, providing excellent growing conditions and better yields.
“This perfect storm has resulted in a bumper potato crop expected over the next few months and an overlap in production times between different production regions.”
Early projections indicate an additional 12-million 10kg pockets marketed from Limpopo from July until December. This potentially means good news for shoppers, but farmers will take a big hit.
We are expecting prices could further decrease over the next month before stabilising at a very low R3.50 per kg for the remainder of the year. We cannot store potatoes so we have to make do with the situation and bite the bullet
— David Nel, Grow Fresh market agency
The price range for potatoes will be below production costs for their growers over the next few months, Nel said.
“We call on retailers to ensure lowered prices reach consumers. Prices are about R3.50 to R4 per kg on the markets, which represents a price of about R2 per kg below production cost. We are expecting prices could further decrease over the next month before stabilising at a very low R3.50 per kg for the remainder of the year.
“We cannot store potatoes so we have to make do with the situation and bite the bullet.”
A low price and good supply scenario could continue until early 2026.
“We are working hard with our buyers to ensure decreased prices are reflected in stores to ensure end consumers experience relief from the high food inflation experienced over the past two years. Though this is not favourable for potato producers, it means affordable food for the consumer, and an increase in per capita consumption, setting the table for better consumption in the future.”
As market agents, Nel said, “it is our primary task to move the volumes to our buyers and consumers to ensure no food is wasted or destroyed”.
TimesLIVE
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