SOUTH AFRICA – Potato and onion consumers in South Africa are reeling over the cost of the fresh produce which has sharply risen due to the impact of load-shedding.

Currently, the retail price of a 7kg bag of potatoes is at least 102% more than it was a year ago while a 10kg bag of onions is 63% higher year-on-year (y/y).

According to Hanrie Greebe, the communications manager at Potatoes South Africa, one of the primary factors contributing to the price increase is the significant impact of load-shedding on the industry.

“Load shedding has had a significant impact on the industry, hindering farmers from maintaining consistent irrigation practices,” he said.

“This challenge has been exacerbated by escalating input costs, such as fertilizer, which are linked to current geopolitical factors.”

Data collected from the Bureau of Food and Agricultural Policy has shown that the volatility in demand for fresh produce has worsened price increases due to reduced outputs.

In 2021, most major retailers, had a 7kg bag of potatoes priced between R110 (USD 5.24) and R150 (USD 7.92), while a 10kg bag of onions was priced at R180 (USD 9.46) to R250 (USD 13.2), depending on the grade.

A 10kg bag of white onions was trading at R130 (USD 6.89) to R140 (USD 7.38), while a 10kg bag of red onions was trading at R280 (USD 14.85).

Commenting on the radical increase in prices, Potatoes South Africa said it was important to note that farmers had no control over pricing.

The prices, as outlined by Greebe, are determined by fresh produce markets which respond to market dynamics such as supply and demand. They are also influenced by seasonal variations, product availability, and grading.

“We, however, remain hopeful because, in the coming months, we’re looking forward to a notable boost in production from Limpopo,” he expressed.

This optimistic outlook follows a less-than-ideal growing season in the region, which was caused by unusually cold weather during the previous harvest.

Speaking about the price of onions, Willem de Klerk, a market agent at PV Fresh Produce Market Agents, said that the onion-growing season had also been severely affected by load-shedding.

“This has hindered irrigation, as not all farmers have the capital to operate their irrigation systems using generators,” he added.

“Spraying programs have been complicated by heavy rains and further hampered by rising costs of chemicals, energy, and transportation.”

According to De Klerk, prices have not decreased because the supply of onions, especially larger sizes, has remained limited.

The fresh produce industry in South Africa has been particularly vulnerable to global unrest and climate-related issues.

These challenges according to a Potato Business report, have recently been further complicated by trade restrictions.

Fuel and fertilizer, which are vulnerable to the uncertainties of international politics such as Russia’s war, account for 25% of the input costs for the average South African fresh producer.

 For all the latest fresh produce industry news updates from Africa, the Middle East, and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.