Egypt faces significant potato price increases due to supply shortages, climatic impacts, and currency issues, with expectations for relief as the new season approaches.
In Egypt, potato prices have surged notably due to a combination of high demand, climate change effects, and a prolonged shortage of US dollars, which has impeded the import of potato seeds for the season ending on June 30. According to industry traders, these factors have created a tight supply situation, leading to substantial price increases.
Hatem El-Nagib, vice president of the Vegetables and Fruits Division at the Federation of Egyptian Chambers of Commerce, reported a significant reduction in seed availability. The ongoing dollar crisis has decreased the import of potato seeds by approximately 25% compared to previous years. Additionally, the productivity of local leftover seeds has been adversely affected by high temperatures and climate change, further compounding the issue.
El-Nagib noted that potato yields have dropped from 14-16 tons per acre in 2023 to a range of 9-12 tons per acre in 2024. Yields from local leftover seeds are even lower, ranging between 7-10 tons per acre. This decline in yield has resulted in a 35-40% reduction in market supply, driving the wholesale price per ton to between EGP 19,000 and 23,000, with retail prices reaching EGP 30,000 to 35,000 per ton.
Egypt, which produces about seven million tons of potatoes annually, is facing these challenges at a critical time. The strategic importance of potatoes has increased as the prices of other staple commodities such as meat, poultry, and fish have also risen. To mitigate the situation, El-Nagib proposed several measures, including the release of potatoes held for testing by the Ministry of Agriculture at cost price, stringent monitoring of storage conditions, and the postponement of new export contracts to preserve Egypt’s reputation in the international market.
As the new planting season approaches in November, stakeholders are hopeful for relief. However, the ongoing challenges underscore the need for strategic interventions to stabilize prices and ensure a consistent supply of potatoes.
