New harvest, new opportunities

Estimated reading time: 3 minutes

South Africa’s potato industry is entering a moment of quiet reinvention. From changing consumer demand and new market channels to innovations on the farm and beyond the packhouse, fresh opportunities are emerging for growers willing to adapt, positioning potatoes not just as a staple, but as a strategic crop for the future.

FP Coetzee, Potatoes SA’s manager of information and regional services, says there are exciting opportunities awaiting producers who are eager to expand.

Export opportunities

Potatoes SA is currently working with the government to explore a potential 50 000 tonne opportunity for potato exports to Russia. In recent years, Russia has shifted from being a net exporter of potatoes to a net importer. This comes after a poor 2024 harvest, when Russia had to import potatoes to meet domestic demand. According to The Moscow Times, Russia produced 7.3 million metric tonnes of potatoes in 2024, down 1.2 million tonnes from the previous year. This opened the door for imports to meet Russian consumption demands.

There are also export opportunities with neighbouring African countries, Coetzee adds. “I don’t think our neighbouring countries’ markets have reached saturation yet. There are greater export opportunities in Mozambique, Botswana, and Namibia.” While Zimbabwe could also still offer opportunities, the country is expanding its local hectarage. Coetzee was therefore hesitant to include it in the list of possibilities.

Another interesting market that producers should not overlook is the United Arab Emirates (UAE). According to Dubai-based food importer Al Yusra Foodstuffs Trading LLC, the city has seen growing demand for diverse, high-quality food products, particularly fresh produce such as potatoes. “Potatoes are a versatile staple in many cuisines, from traditional Emirati dishes to global culinary delights found in Dubai’s diverse food scene. The rise of fast-food outlets, fine-dining restaurants, and home-cooked meal kits has significantly increased the demand for fresh, high-quality potatoes,” the importer states on its website. The UAE’s rapid urbanisation, coupled with its status as a major tourist destination, has further fuelled this demand.

Local market opportunities

Last year, South Africa produced a record harvest of 276 million 10 kg bags, significantly surpassing the previous record of 267 million bags, Coetzee says. Despite this surge in potato production, the average market price was still above previously recorded prices at similar volumes.

“This indicates that we may still have relatively good opportunities locally,” Coetzee says, adding that it all boils down to good market and quality management. “It is important to manage your stock levels properly. Don’t oversupply the market.”

One of the most critical aspects producers need to reconsider is how their marketing strategy is compiled. It is becoming increasingly important for producers to fully trust the market agents they work with and rely on the market information communicated to them.

Processing

In recent years, South Africa has begun importing more processed potatoes and, following the reconfirmation of European import duties, local processors increased production. This is indicative of increased demand of value-added potato products. The driving forces behind this growth are urbanisation and rising disposable incomes, which has accelerated rapidly over the past 30 years and is expected to continue.

Between 2018 and 2022, around 16% of potato consumption consisted of processed fries and chips. This has since increased to 21,3% in recent years. Coetzee believes there is room for even more growth, as the global average consumption of processed potatoes is closer to 25%.

While the informal market has been relatively unrecognised in the past, frequent interactions with players in this industry shows vast untapped opportunities. This includes certain fast-food outlets that processes similar volumes of potatoes comparable to smaller, recognised processing firms.

As the industry enters a new, information-connected era, insights into informal markets, processing, and export opportunities could enable South Africa’s potato industry to soar.– Susan Marais, Plaas Media

For more information, email FP Coetzee at fpcoetzee@potatoes.co.za.