South Africa will not need to import potatoes, however, prices will be higher than before.
Over the next coming weeks, South Africans can expect to see an increase in hake and potato prices, as organisations responsible for the two are experiencing a shortage.
The Sea Harvest Group’s unaudited interim results for the six months ended 30 June 2024 include how they have experienced low catch volumes in the hake fishery.
While the winter days in the country have left devasting effects on potato farms, potatoes are still available but have become more expensive.
Hake shortage
In the report, the Sea Harvest Group outline challenges they have experienced within the first six months of the year. These challenges include 5% lower catch volumes in the hake fishery leading to 11% lower sales volumes.
Since the continued lower catch volumes in hake, there has been reduced revenue and potentially lower profitability. The was an impact on operational efficiency and utilization due to the timing of refits. However, there has not been an issue with demand, only a supply issue.
The report also details that there has been a 26% increase in operating profit, compared to the first half of 2023. Cost of sales also went up by 22%, compared to the 2023 first half. Wholesale revenue has gone up by 1%, from R149 million to R151 million.
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Potato shortage
Assurance has been given from the potato industry that anyone in the country who wants potatoes, will get them. Willie Jacobs, Potatoes SA CEO told eNCA that this year’s Black Forest season was one of the most intense periods they have had. But there is enough stock.
“It is important to understand that Black Forest is a very short-term seasonal activity, but it can have damaging effects.” This year’s Black Forest lasted for a period of five days, and this means farmers lost five days of the production days of potatoes.
Henk van de Graaf, TLU SA also believes there is no way South Africa will need to import potatoes, however, prices will be higher than before but not too high. He told SABC News that farms in Limpopo were badly affected but not all of them.
He said potatoes had to be harvested before they grew to their full potential after the Black Forest season. “What the market will see over the next couple of weeks is smaller potatoes.” He did acknowledge not only potatoes were affected but other crops such as tomatoes, peppers, corn, and citrus.
Black Forest
The Black Forest season is a season of cold and wet weather during winter that can lead to an increase in potato diseases. This season causes damage to potato crops, leading to reduced yields and lower-quality tubers.
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