South Africa's Potato Prices Rose by 53.81% in Nov-23 Amidst Challenges and Optimism for Increased Production

South Africa's wholesale prices for fresh potatoes increased by 53.81% YoY in Nov-23, primarily due to load-shedding, wastage, and geopolitical factors. The industry faced lower profitability, reduced cultivation, and reduced yields. However, optimism for increased production is growing.
South Africa's wholesale prices for fresh potatoes rose sharply by 53.81% YoY in Nov-23, reaching USD 0.27 per kilogram (kg), from USD 0.18/kg in Nov-22. After a 31.2% decline from USD 0.42/kg in Sep-23 (the highest price during the year) to USD 0.32/kg in Oct-23, the wholesale prices continued to decline by 15.62% month-on-month (MoM) in November 2023. The rising pricing trend over this period was primarily influenced by the significant impact of load-shedding, which affected farmers' ability to maintain consistent irrigation practices. Furthermore, the elevated wastage in the potato industry in South Africa led to increased prices and diminishing farm profitability, with 15% to 20% of harvested potatoes discarded due to visual defects. This challenge was worsened by rising input costs, including fertilizer costs, due to geopolitical factors. Another factor affecting the increasing price is the diminishing potato yields and planting of other commodities as potato’s profitability was lower. However, there is optimism for increased production in the coming months, following a less-than-ideal growing season due to unusually cold weather during the previous harvest. South Africa, ranked 11th worldwide for potato exports, contributes 1.8% to global exports. In 2022, the country exported 3.6 million tons, with a total value of 4.3 million tons. South African potato exports experienced a 4.7% growth between 2013 and 2022, with a value increase of USD 1.9 million (ZAR 36 million). In 2022, some top export destinations for South African potatoes with Mozambique leading with a 35.8% volume market share, valued at USD 16.94 million. Following closely, Zimbabwe held a 21.9% market share, totaling USD 10.35 million, and Namibia secured an 18.6% market share, amounting to USD 8.81 million. However, the country's exports are shifting slightly from fresh potatoes to seed potatoes, partly due to cross-border challenges faced by countries like Namibia and Botswana for fresh potato exports.