Chip in to save economy

The chips are down in the potato industry so buy local, say producers

THE origins of the French fries you may have for dinner are at the centre of fears by local manufacturers that the imports of food and other products from the EU and elsewhere, are a consequence of market conditions impacted by Covid-19.

The Potato and Vegetable Processors Forum (PVPF) which includes McCain Foods South Africa, Potato South Africa (PSA), Natures Garden and Lamberts Bay Foods, want you to eat locally produced products. They have sounded the alarm by urging the government to institute a temporary prohibition on imports of frozen potato chips from the EU.

The chief executive officer of PSA André Jooste, said the local potato industry has suffered significantly from a decrease in demand as a result of Covid-19 regulations, such as the closure of restaurants and fast food outlets.

“Since 2000/2001 potatoes accounted for approximately 45% of total vegetable crops produced in South Africa and contribute around R8.5 billion towards the economy. These numbers, however, are under threat due to a surplus of frozen and processed potato products in Europe, as a result of a decreased demand brought on by the pandemic worldwide, and hence significantly depressed prices,” said Jooste.

“As South Africa is a key destination for processed potato product exports from the EU where there is a history of dumping, this is set to have a negative impact on the country’s agricultural sector and surrounding communities.”

The PVPF gave an indication of the size of the markets and potential severity of a surge in low prices imports.

“The EU produced 52 million tons of potatoes in 2018, of which 73.7% was produced in only six countries. Last year it was responsible for 68% of global export trade (including intra-EU trade) of French fries. Volumes exported by the EU increased from 4.5 million tons in 2015 to 5.7 million tons last year, while exports are dominated mainly by two countries responsible for 81% of export trade,” it said.

“In comparison South Africa produces approximately 230000 tons of French fries annually. The potential volumes available to be imported could have a detrimental effect on our market for years to come,” it said.

Agri Western Cape chief executive officer Jannie Strydom said the province was also fearful of the dumping of foreign produce.

“The agriculture sector of the Western Cape is experiencing financial pressure due to Covid-19 lockdown regulations, and also due to the ongoing drought in large parts of the province, including the central and Klein Karoo and the northern parts of the West Coast,” said Strydom.

“Dumping of agricultural produce from abroad can aggravate the situation and can endanger the sustainability and growth of the agriculture sector.

“By buying local produce, the consumer not only supports the South African agriculture sector, but protects it too.”