Retailers and industry experts in South Africa say that the high price trend for potatoes is soon set to end. Last month, South Africa recorded its highest price increases for potatoes with a 10kg bag going up to R76.76 in Cape Town according to the latest information by Potatoes SA.
Fresh crops
“Growers with ‘reasonable’ yields will do well because of good prices,” Potatoes SA said.
“Growers with ‘bad’ yields will probably not be able to cover direct costs, even with higher prices.”
But the organisation said the average prices could come down as more potatoes would be coming from the eastern Free State.
Statistics SA said the cost of food in South Africa rose by 8.6 percent in February compared to a year ago.
Between January last year and this year, the 10kg potatoes packet has risen 120 percent from R33.30 to R73.32.
During the same period, the price of onions rose by 30 percent from R34.87 to R45.33 while the cost of two heads of cabbage rose by 59.1 percent from R17.95 to R28.55.
AgriSA said food prices would be 15 percent higher by the end of the year, affecting the poorest of the poor who spend up to 40 percent of their total income on food.
The drought and hot conditions have had a negative impact on yields in almost all the potato production regions in South Africa with farmers selling 3 million less bags of 10kg potatoes on the markets.
The Shoprite Checkers group said it had tried to keep prices at a minimum.
Group spokeswoman Sarita van Wyk said the company had negotiated with suppliers to manage stringent cost controls.
Drop ahead
“Shoprite is continuously fighting to keep prices lower for its customers, a promise that has been kept for decades and that will continue in the current turbulent economy,” Van Wyk said.
“This stance is manifested in the stringent control of the group’s internal food price inflation, which for the six months to February was measured at 2.4 percent compared to StatsSA’s food inflation figure of 5.9 percent for the same period.”
She said the price of a 7kg packet of potatoes at Shoprite was currently R69.99 and the price was expected to start easing in the next two months due to the anticipated increase in supply.
