Strategic marketing needed to survive tough potato market, says industry body

Farmers producing spuds need to balance quality and price to survive the cost-price squeeze, according to speakers at Potatoes South Africa’s recent annual general meeting. Glenneis Kriel reports.

- Glenneis Kriel

The time for chasing high potato production volumes is over, and farmers now T need to balance quality and price to survive the cost-price squeeze, according to Gert Bester, chairperson of Potatoes South Africa (Potatoes SA).

Bester was speaking at the annual general meeting of the Sandveld Potato Growers' Association held recently in Lambert's Bay in the Western Cape.

According to Potatoes SA statistics quoted at the event, potato production has increased by 14% to about 2,6 million 10kg pockets over the past decade, thanks to improved technologies and production skills. At the same time, the area under production has fallen by 2% to about 51 000ha and the number of potato farmers by 14% to approximately 550.

Bester predicted that the number of farmers would decrease even further this year, adding: "The problem is that input costs for fertiliser, fuel and implements are driven internationally, and have skyrocketed over the past two years because of supply chain disruptions caused by the COVID-19 pandemic and the war in Ukraine."

The price formation mechanism, on the other hand, was driven locally, and producer prices had remained relatively stable over the past few years, whereas consumer prices had increased significantly and were now taking their toll on potato demand.