Farmers reel as potato prices plummet to below production costs

South Africa's potato market is experiencing a severe downturn as farmers contend with dwindling returns and prices that are now well below cost.

- Terri-Ann Brouwers

The collapse comes on the back of a bumper harvest, expanded plantings and improved growing conditions across the country.

In recent weeks, per-kilogram prices at fresh produce markets have dropped to between R3.50 and R4, which is about R2 below estimated production costs and nearly 50% lower year on year, according to FreshPlaza.

It also reports that good yields and a mild winter combined with aggressive planting drove a glut, suppressing prices further into October.

Higher yields