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Over the past five years, the Potatoes SA enterprise development programme (EDP) has grown into a key driver of transformation within the potato industry, focussing on commercialising over 40 developing producers across South Africa. The programme provides a four-year support model, centred around a potato seed subsidy that begins at 100% in the first year and reduces by 25% annually.
This design encourages producers to become self-reliant and sustainable by the end of the support period, positioning them to access other funding avenues and contribute equity towards their own operations, including seed and other input costs. Mentorship is a cornerstone of the programme, ensuring that producers are guided through each production cycle with technical, financial, and business planning support.
Application and approval process
The application process begins with interested producers submitting completed forms to Potatoes SA, accompanied by the necessary supporting documents. Following submission, a mentor and an official from Potatoes SA conduct an onsite pre-feasibility assessment.
If the project proves viable, a business plan is developed, covering the producer’s profile, production status, organisational structure, resource plan, marketing strategy, and cashflow projections.
This plan then completes four levels of approval: first to the Transformation Technical Committee, followed by the Transformation Committee, then to the Potatoes SA Board, and finally to the Potato Industry Development Trust (PIDT). Once approved, projects are budgeted for in the upcoming financial year, subject to the availability of funds collected from industry levies.
Footprint and hectares planted
The programme’s impact is evident in the regional distribution of hectares planted, including those facilitated through co-funding partnerships with other institutions. On average per year, 21 ha were planted in the Free State, 64 ha in the North West, over 100 ha each in KwaZulu-Natal and the Eastern Cape, over 80 ha in the Western Cape, 20 ha in Mpumalanga, and over 250 ha in Limpopo, where the Capricorn District has emerged as a core production hub (Figure 1).
To date, no projects have been rolled out in Gauteng or the Northern Cape. However, Potatoes SA is actively engaging with stakeholders in these regions to explore new opportunities for inclusion and expansion.
The data in Table 1 reflects the number of projects funded under the Potatoes SA EDP across various regions from 2021/22 to 2024/25. Limpopo has consistently led with the highest number of projects, peaking at 17 in 2023/24 and maintaining a strong presence with 15 in 2024/25.
This dominance can be largely attributed to strong government support, particularly in respect of infrastructure development, which is a critical component of the feasibility assessment when considering producers for inclusion in the enterprise development programme.
Infrastructure is often a limiting factor in other regions, and its availability in Limpopo has made project implementation more viable, especially in accessing the seed subsidy offered by Potatoes SA.
Notably, efforts have been made to expand the programme’s reach, as seen in the gradual increase in projects in the Eastern Cape, Western Cape, and KwaZulu-Natal. This reflects a deliberate strategic shift to support more emerging producers in other provinces, ensuring broader national impact and inclusivity within the programme.
Challenges and resilience
One of the ongoing challenges in the programme has been the ‘COB week effect’, where poor yield or unfavourable prices in a given season reduce producers’ ability and motivation to produce in the following cycle. This has a direct impact on their continuity within the programme. For instance, in 2022 when summer prices dropped, several producers in Limpopo responded by securing offtake agreements. These agreements offered some financial stability through input credit facilities and advance payments, enabling producers to cover costs such as seed, fertilisers, chemicals, and electricity upfront, and thereby sustain operations.
In terms of production, producers under the programme have achieved average yields of 50 to 55 t/ha, with those under restricted irrigation systems averaging approximately 40 t/ha. A major limitation remains the lack of access to post-harvest infrastructure, particularly washing, sorting, and temporary storage facilities. Many producers, especially in Limpopo, have adapted by selling directly from the field to the Mozambican market, which accepts unwashed potatoes. While this offers some relief, the absence of infrastructure limits their ability to participate in higher-value markets.
Despite these challenges, Potatoes SA has continued to drive market access through strategic linkages, including funding entities such as the AgriBEE Fund from the Department of Rural Development and Land Reform.
This has enabled some producers to secure infrastructure support and enter the more lucrative fresh produce markets, which remain the most liquid channels for commercial potato sales. Some programme beneficiaries have also diversified into other crops through offtake agreements to supplement their cashflow. While such diversification can provide financial buffers, Potatoes SA encourages careful consideration to avoid compromising potato production and soil health.
Conclusion
Potatoes SA remains committed to empowering developing producers and expanding the reach of its EDP.
By providing tailored mentorship, linking producers with funding partners, and ensuring visibility across the potato value chain, the organisation continues to build a pipeline of commercially viable, fundable producers. Moving forward, greater focus will be placed on infrastructure development, regional expansion, and integrated support mechanisms that sustain producer participation and enhance long-term impact. – Rachichi Marokane, Potatoes SA
For more information, send an email to the author at rachichi@potatoes.co.za.