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Retailers New business South Africa

The high price to pay for a spud

Prices for the humble potato are at an all-time high, with some shops charging as much as R82 for a 10kg pocket, more than triple the average price charged this time last year.
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Consumers have complained bitterly about the exorbitant price, as potatoes are considered a grocery staple.

Farmers, on the other hand, are delighted with the higher price, saying it makes up for financial losses suffered over the last two years.

The Eastern Cape is one of the country's leading potato producers, with farms concentrated in the Patensie, Loerie and Elliot districts.

The sharp rise in prices has been blamed on a shortage of potatoes due to crop damage caused by drought, hail and frost in recent months.

SA National Consumers' Union chairman Lilibeth Moolman said prices had almost doubled since the start of the year.

In Port Elizabeth, Spar in First Avenue, Walmer, charged about R82 for 10kg a few weeks ago, but has since lowered its price to R72.50.

A 10kg pocket costs R65.99 at Fiveways Spar and R62.99 at the Spar in Main Road, Walmer.

Checkers and Shoprite customers are paying up to R60 for 10kg, or up to R48 for a 7kg pocket. Pick n Pay only sells 7kg pockets at R57.99 and 2kg ones at R21.99, while at Woolworths, a 4kg bag costs R39.95 and a 1.5kg bag R20.99.

Last year, consumers paid between R24 and R26 for a 10kg pocket of potatoes.

Moolman encouraged consumers to budget more carefully, or shop around for better prices, rather than cut potatoes from their diet. “It is a staple food for many people. It's a good vegetable with unquestionable nutritional value.”

The potato price is expected to improve later this month, according to Potatoes SA chief executive Mark du Plessis.

He said the shortage, coupled with “huge demand” for potatoes, had pushed up prices.

This was in stark contrast to last year, when a decline in the producer price, and a rise in input costs, had resulted in many farmers not breaking even.

Agri Eastern Cape chairman Cerneels Pietersen said although farmers seemed to have made good profits this year, “they have other expenses such as high input costs and an increase in water tariffs”.

Herman Scheepers, of Roode Grond farm in the Gamtoos Valley, and Loerie's Denro Ferreira, of Buffelshoek Farm, admits this year's sales have been profitable, but said it made up for last year's big losses.

Source: The Herald

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