Chips! Potato shortage sending prices sky high

LOVERS of fast food will have to count their chips as a massive shortage of spuds in the country has seen prices soar.

In a report tracking agriculture trends released yesterday, Absa Bank analysts warned that consumers could pay at least R6 for a kilogram of potatoes in November with further price hikes expected in December.

Tomato prices have increased to a record high of R15 a kilogram while carrot prices have also peaked.

The report blamed the drought for the shortages.

“Early season rains are still outstanding and dam levels are low. The lack of sufficient water for irrigation may impact negatively on yields,” it said.

Former Springbok rugby coach Dick Muir, who co-owns the Just Veggies agri-processing plant in Vryheid, said the group had skipped the potato-planting season altogether.

“The drought in Vryheid is bad. There is no water. Our planting season is September. We just could not take the risk,” he said.

Andre Jooste, chief executive of Potato SA, said rainfall was critical for farmers in the Eastern Free State, Gauteng and the North West who were now planting.

Temperatures

“While 80% of the potatoes produced in South Africa are under irrigation, it is not only water but high temperatures that have resulted in a reduced crop. Potatoes stop growing at 28ºC. In 2015 we produced 2.5 million tons of potatoes; this year that figure is at 2.2 million tons,” he said.

Jooste said he was hesitant to give forecasts on prices, but said because of the reduced crop, the number of bags of potatoes sold this year was down by 16% compared with the same time last year.

South Africa does not import potatoes, although some frozen fries are imported from Europe.

The report also predicts beef price hikes of 9% to15%, despite a 4.86% increase in the number of cattle slaughtered week on week. The price increase was due to improved weather, resulting in more people buying meat to braai.

Two percent more pigs are being slaughtered week on week, but the approaching festive season has already resulted in 21% more pork coming into the country than in July. Poultry prices have remained steady at R22.36 a kilogram for a whole bird.

While the weather forecast for the next 10 days indicates widespread rain, which would favour an improvement in pasture quality and production, analysts say policy uncertainty and a possible downgrade and fund outflows may affect the rand, which could put further pressure on consumers.

colleen.dardagan@inl.co.za