Willie Jacobs, CEO of Potatoes South Africa, addressed concerns regarding potato supply, emphasizing the resilience of South Africa's potato production system. Despite temporary supply decreases, Jacobs highlighted the unique advantage of South Africa's year-round production, facilitated by its distribution across 16 regions. This structure allows for a steady supply, mitigating the impact of regional supply disruptions.
Potatoes SA has advised against panic over supply issues, even in the face of spring heatwaves affecting producers. The organization points out the reliance on irrigation for potato farming, which has kept production steady despite concerns over food prices and the need for rain in parts of South Africa for maize cultivation.
Jacobs also touched on the negative consequences of panic-driven price inflation, such as trade disruptions and subsequent price volatility. Moreover, inflated prices can lead to increased potato planting, which may then disturb the supply and demand balance, maintaining low prices due to oversupply.
FP Coetzee, information services manager at Potatoes SA, outlined various factors influencing potato supply and pricing, including weather, diseases, and state-managed resources like power and water quality. South Africa annually plants over 52,000 hectares of potatoes, yielding around 250 million 10kg bags. Despite a drop in volumes to nearly 1.5 million 10kg bags per week in 2024, this fluctuation is part of an annual cycle, particularly impacted by production in Limpopo.
The country experiences seasonal supply variations, with certain periods witnessing supply exceeding 700,000 10kg bags daily, leading to significant price drops. This underscores the complex interplay of regional production, market demand, and external factors in shaping South Africa's potato market.
Source: Farmer's Weekly