Price of potatoes impacted by colder than usual Limpopo winter and Covid-19 pandemic

The province’s colder than usual winter and the Covid-19 pandemic, more specifically lockdown, has had an impact on potato prices according to CEO of Potatoes SA, Dr André Jooste.

Review Online reported that Jooste told them that there is no need to panic as there is usually a slight increase in potato prices from August each year.

“This year, because of a colder winter and more product moving around fresh produce markets, there was less product delivered to the market which resulted in an increase in prices. This reflects how the free market operates where supply and demand determine prices. This tendency usually happens in August when Limpopo is the key role player in the market, however, due to the previous mentioned reasons, this happened earlier this year,” Jooste explained.

He said the Limpopo production region is the biggest region marketing potatoes this time of year and that the cold impacted farmers’ early harvest.

“Their main harvest was planted in June/July and will soon come into the market. Supply and demand plays a crucial role in determining prices in a free market,” he added.

Jooste said there has been an increase, on average, of 46% in potato prices, if you compare the price from June to the second week of October 2019 with the same period this year.

“If you compare April to May 2019 with the same period in 2020, prices were 8% lower this year. When you compare this year’s prices from January to end of May with the same period in 2016, when there was a huge impact on volumes due to droughts, prices were 31% lower this year,” Jooste explained.

He emphasised the big impact that climate has on prices, but reiterated the importance that supply and demand determines prices in a free market system.

Read the original story on Review Online