Johannesburg – According to preliminary analysis from the European Union's Joint Research Centre, Europe is experiencing its worst drought in at least 500 years, with hot and dry conditions fuelling wildfires and reducing reducing crop yields.

This has led to local businesses raising concerns regarding the supply of potatoes from Europe, in particular processed products like pre-packaged French fries.

The shortage could be further compounded by the heavy import tariffs on frozen French fries imposed by the International Trade Administration Commission (ITAC), which came into effect in July in an alleged attempt to protect the local industry from ‘dumping’ or being undercut by artificially lowered prices.

Industry association Potatoes South Africa has confirmed, however, that local potato farmers are producing a surplus of fresh potatoes for the market’s needs.

Potatoes SA chief executive officer Willie Jacobs addressed the concerns by emphasising the difference between fresh potatoes and products made from potatoes.

“A distinction must be drawn between fresh potatoes and processed products such as French fries, as South African potato farmers are currently producing a surfeit of fresh, raw potatoes,” Jacobs said.

“One of the major issues facing farmers, however, has been finding suitable opportunities for storing and processing these potatoes to manage price volatility and profitability, and prevent waste. In the wake of European shortages, higher demand for locally manufactured frozen French fries therefore represents a highly attractive, mutually beneficial solution for the industry and for the country.”

According to Potatoes SA figures, South Africa produced an average of 2.6 million tons of potatoes per year from 2017 to 2021, and Jacobs estimated that 12 000 tons of fresh potatoes were available at national fresh produce markets around the country every day.

Jacobs said the association was urgently investigating opportunities to invest in expanding local production facilities to meet high demand for French fries while supporting local potato farmers.

“South Africa is unique in that unlike many countries, our seasons and climate means that we have the ability to produce potatoes the entire year, ensuring steady supply.

“A gap seems to exist in the South African market for processed potato products and local business would do well to explore the opportunities in making such products.

“We have also met with various businesses to discuss their needs for items such as French fries, and have noted concerns regarding gaps in supply chains for processed products,” he said.

“Moving forward, we firmly believe that through using private-public partnerships to invest in expanding production capacity, the potato industry will be able to create further value for the South African market, while driving sustainable socio-economic development.”

IOL Business

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SMEs to benefit from shortage of French fries from Europe