While this is good news for shoppers, farmers might take a big hit.
South Africans could get a nice surprise on their till slips this month as the price of potatoes is set to drop.
David Nel from the Grow Fresh market agency said good weather and a substantial increase in plantings are the reasons behind this price drop. While this is good news for shoppers, farmers might take a big hit.
“Potatoes are abundant on the market, resulting in deflationary prices compared to the same time last year. Good yields for the season due to favourable weather conditions have resulted in a national potato price decrease by as much as 50% for August in comparison with August 2024,” he said.
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Mild winter results in price drops
He said 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 past two years.
Profitable prices, good rains and seed availability led producers to opt for additional hectares for the current season, resulting in the current low price period.
“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.”
New potato price
Nel highlights that early projections indicate an additional 12 million 10kg pockets will be 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.
“Current prices are around R3.50 to R4 per kg on the markets, which represents a price of approximately R2 per kg below production cost,” added Nel.
“We are expecting that prices could further decrease over the next month before stabilising at a very low R3.50 per kilogramme for the remainder of the year.”
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Good news for shoppers
He added that retailers must implement the new prices so that shoppers benefit from the potato price cut.
“We cannot store potatoes in South Africa, so we have to make do with the situation we are in and bite the bullet,” he said.
“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.”
Farmers to take a hit
He highlighted that a low price and good supply scenario could continue until early 2026.
“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,” added Nel.
“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.
“It is our primary task to move these volumes to our buyers and consumers to ensure that no food is wasted or destroyed.”
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