Potato Prices Down Despite Increased Demand

As the South African potato industry recovers from the drought, there has been an increase in supply. This has resulted in a decline in prices, fuelling sales.

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Potato prices on South Africa’s fresh produce markets have shown a decline during the past year, and now in the fourth quarter of 2017, an average of R3,55/kg is being achieved. This comes on the back of favourable weather conditions, which have supported greater yields, and therefore increased supplies.

Widespread drought and very hot weather during the previous season damaged crops. The resultant limited supply supported prices, and in the second quarter of 2016, prices soared, reaching R6,07/kg, the highest since 2015 (see Graph 1).

GOOD GROWING CONDITIONS

This year, the eastern Free State and Limpopo have experienced good growing conditions, with the latter enjoying a warm winter, which supported greater yield. Record potato sales were thus achieved on South Africa’ fresh produce markets during the first quarter of the year, despite the static state of the economy and the resulting strain on consumers’ pockets.