Potato price surge in Egypt: A Look at economic and environmental factors

EGYPT – The recent spike in potato prices in Egypt has raised concerns about the country’s economy and the effects of climate change.

Potatoes, a key staple for Egyptians, have seen significant price increases due to a combination of reduced supply and economic challenges.

Egypt’s ongoing economic troubles, including high inflation and a depreciating currency, have exacerbated the potato price surge.

“The recent rise in potato prices is primarily due to a shortage of seeds and damage from extreme weather conditions,” explained Hatem El-Nagib, Vice President of the Vegetables and Fruits Division at the Federation of Egyptian Chambers of Commerce.

The shortage of U.S. dollars, which has impacted Egypt’s ability to import essential potato seeds, has been a significant factor.

According to El-Nagib, “The dollar crisis has cut the quantity of imported seeds by about 25 percent. This issue, combined with high temperatures, has reduced the yield per acre significantly.” The yield has dropped from 14-16 tons per acre in 2023 to 9-12 tons in 2024.

Local leftover seeds, another crucial source for planting, have also proven less productive this season, further compounding the problem.

“The yield from these seeds has dropped to about 7-10 tons per acre, contributing to a 35-40 percent decrease in market supply,” noted El-Nagib.

As a result of decreased supply, potato prices have surged. Wholesale prices are currently between EGP 19,000 and 23,000 per ton, while retail prices range from EGP 30,000 (USD 609.42) to 35,000 (USD 710.99) per ton.

El-Nagib suggested that the Ministry of Agriculture could help stabilize prices by releasing potatoes from government stock at cost prices. “Selling at cost price through government outlets and postponing new export contracts could lower prices by 25-30 percent,” he said.

However, the impact of the crisis is not uniform across all potato varieties. Potatoes grown for industrial use, such as those used in processing, have not contributed significantly to the crisis.

Factories have secured their supplies through long-term contracts with farmers, ensuring stable prices for these types.

Egypt is a major player in the global potato market, ranking 10th in production and 4th in exports. Potato exports reached over one million tons in 2023, according to the Potato Producers Union’s Ahmed El-Shorbini.

He cautioned that halting exports could harm Egypt’s reputation and future market opportunities. “If we stop exports, other countries might fill the gap, making it difficult for us to regain market share,” El-Shorbini said.

The crisis has also highlighted the need for state support for potato farmers, especially small-scale producers facing rising production costs.

The government is considering increasing the price of subsidized fertilizers to address these challenges.