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GAME INDUSTRY TRENDS ANALYSIS 2024
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No Need To Panic Over Supply – Potatoes SA CEO
No need to panic over supply – Potatoes SA CEO
By Lindi Botha | 2 January 2025 | 7:00 pm
Potatoes SA has warned against panic over potato supply amid a year of adverse weather. In 2024, potatoes reached record-high prices as black frost in Limpopo and drought in the Free State curtailed harvests towards the end of winter.
With potato production spread across 16 regions, a constant supply is ensured year-round. Photo: Pixabay
Although supply decreased marginally and only for a short period, Willie Jacobs, CEO of Potatoes SA, said that panic over a shortage kept prices high.
“Unlike most of the world, where there is only one potato season per year and any weather mishap during that time has devastating consequences, South African production is ongoing,” Jacobs told Farmer’s Weekly.
“Production is spread across 16 regions, ensuring a constant flow of potatoes year-round. If there is a supply disruption in one area, it is likely that supply from another region will fill the gap,” he added.
Potatoes SA has therefore cautioned consumers not to be concerned about supply as a result of the heatwaves potato producers face in spring.
While tension was running high regarding food prices in 2025 due to the parts of South Africa that are desperately awaiting rain to ensure a good maize harvest, potato farmers mostly rely on irrigation to grow their crops and production has not been interrupted.
Consumers needed to keep these supply dynamics in mind when news of adverse weather or supply disruptions made headlines to avoid panic.
“When panic takes hold, prices become inflated, and that hurts everyone – consumers and farmers alike. It disrupts trade and prices inevitably then swing back to extreme lows a few weeks later since high prices slow down uptake,” Jacobs said.
Another disadvantage of the high prices was that farmers then felt incentivised to plant more potatoes, which further disrupted supply and demand dynamics, as sudden increases in volumes kept prices low.
Explaining the factors that affect potato supply and prices, FP Coetzee, manager of information services at Potatoes SA, said weather, diseases, profitability and state-managed resources like power supply, infrastructure and water quality had the biggest effect.
South Africa plants on average 52 261ha to potatoes annually, supplying 250 million 10kg bags of potatoes. Around two million 10kg bags are delivered to the fresh produce markets weekly.
In 2024, volumes ped to just under 1,5 million 10kg bags per week, which was when prices rose. This is, however, an annual phenomenon.
“Supply traditionally dips between April and August, because up to 80% of South Africa’s potatoes are obtained from Limpopo. So any production issues in this region during this period have an adverse effect on supply and therefore price.”
Conversely, there were times over the past year when daily supplies exceeded 700 000 10kg bags, which resulted in a 200% reduction in price.
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