South Africa Faces Potato Price Slump as Top Harvest Pushes Rates Below Production Costs

Potatoes are currently abundant on the South African market, resulting in deflationary prices compared to the same period last year, says David Nel of GROW Fresh market agency.

David Nel, GROW Fresh market agency:

"Good yields for the current season due to favourable weather conditions have resulted in a national potato price decrease by as much as 50% for the month of August in comparison with August 2024."

Loadshedding (electricity cuts) in 2023 and winter frost in 2023 and 2024 have resulted in lower volumes nationally and higher-than-normal potato prices over the last two years. Profitable prices, good rains, and seed availability led to producers opting to plant additional hectares for the current season, resulting, he says, in the current low price period.

David Nel:

"The winter in 2025 was mild, with almost no frost damage, providing excellent growing conditions and even better yields. This perfect storm has resulted in a bumper potato crop expected over the next few months and an overlap in production times between different production regions."

Early projections indicate an additional 12 million 10kg pockets marketed from the Limpopo region from July until December 2025. He notes that despite their efforts, the price range for potatoes will be below production cost for their growers over the next few months.

Prices expected to remain at a very low ZAR 3.50/kg (USD 0.17) for the remainder of the year.

David Nel:

"Current prices are around ZAR 3.50 (USD 0.17) to ZAR 4 USD 0.19 per kg on the markets, which represents a price of approximately ZAR 2 (USD 0.10) per kg below production cost. We are expecting that prices could further decrease over the next month before stabilizing at a very low ZAR 3.50 (USD 0.17) per kilogram for the remainder of the year."

Prices expected to remain at "a very low" ZAR 3.50/kg (USD 0.17) for the remainder of the year. As South Africa is a predominantly fresh potato consumer, he observes that there are not many alternatives for producers to move their fresh potatoes.

David Nel:

"We call on retailers to ensure lowered prices reach consumers. We cannot store potatoes in South Africa, so we have to make do with the situation we are in and bite the bullet."

Nel emphasises the importance of informing consumers that potatoes are currently affordable and offer good value for money.

David Nel:

"We are working closely with Potatoes South Africa to promote the nutritional value as well as the affordability of potatoes. We once again call on the large retailers to ensure that these lowered prices reach end consumers."

A low price and good supply scenario could continue until early 2026.

David Nel:

"We are working hard with our buyers to ensure that the decreased prices are reflected in the stores to ensure that end consumers also experience relief from the high food inflation experienced over the past two years. Although this is not favourable for potato producers, it means affordable food for the consumer, and an increase in per capita consumption, setting the table for better consumption in the future. As agents, it is our primary task to move these volumes to our buyers and consumers to ensure that no food is wasted or destroyed."