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Start of school year should stimulate fresh sales

South Africans tighten their belts to afford staples

In the new year South African consumer demand for fresh produce has been significantly lower, reports an agricultural economist, which has been placing pressure on prices.

Empty fresh produce shelves after Christmas: a sight to which South African consumers are unaccustomed

In his weekly report Dr Johnny van der Merwe referred to a "bloodbath" among prices of fresh produce, but consumers are still surprised when having to pay, for instance, R64 (3.13 euros) for 2kg potatoes.

The average potato price is lower as a result of slack demand, but still at a level of 20% higher compared to last year time, challenging many consumers: R74 (3.6 euros) per 10kg bag.

Dr Johnny van der Merwe points out that the traditional trend of high volumes and concomitant low prices during the winter months has shifted "significantly" since 2020.

During the middle part of the year potato prices haven't been at rockbottom for the past three years, and have actually spiked during early spring.

Consumers will be heartened to hear that potato prices are expected to be on a downward scale for the next six months, until again rising in August and September.

Banana prices 50%+ higher
On the fruit side, the price of bananas has decreased slightly at R11.53 (0.56 euro) per kilogram, but it's still 52% higher than the average price last year this time.

Bananas have become an expensive fruit, disconcerting consumers who have always been used to cheap bananas. Banana volumes are 42% lower.

Banana prices are expected to rise again during March and April, until winter volumes come in.

Fresh produce volumes traded at retail level are down, a retail buyer remarks, but it does tend to fluctuate.

"We had a good Christmas and were up in sales but a bit down in units. Inflation was the reason there. Yesterday was a good day due to back to school shopping. If it's just a normal day then we are down."