South Africa is currently experiencing a sharp rise in potato prices after extremely cold weather conditions in the northern parts of the country affected potato harvests. Last week, the average price for a 10kg bag of potatoes soared 12%. Experts say that that cold weather during the past two weeks weighed on production, while volumes were 22% lower than the long-term average for this specific week.
A month ago, potato prices also registered a surge of 11% compared to the week before.
The current price rise is due to weaker potato harvests, particularly in the east and west Free State as well as some parts of the Northern Cape, all of which are the major sources of potatoes at this time of year, Willie Jacobs, CEO of Potatoes SA, told Business Insider South Africa.
A combination of factors, including heavy rains at the start of the year (during their critical planting season), also contributed to lower yields.
“Around January, we had a lot of rain… that was actually the planting season for these guys who are going into the market now. So, this is basically the result of what happened,” Jacobs said. He added that the short-term price outlook is uncertain, citing possible shortfalls from producers in Limpopo who mainly harvest from August.
The speed at which potato farmers lift the products from the ground will largely determine whether prices remain high or drop for consumers, he said.
