Here’s a hard bone to chew: while Mzansi’s potato farmers struggle to make ends meet, cheap potato imports are adding more pressure. However, a way out could be if more South African consumers support local potato growers, instead of dumped potatoes imported from farmers in Europe.
Food For Mzansi sat down with Potatoes South Africa’s chief executive officer, Willie Jacobs, who gave an update on where the country is with import tariffs to protect the local potato industry against dumping by European suppliers.
Jacobs also unpacked the role of the consumer.
“South Africans have an opportunity to buy and support local and help rebuild the economy. What citizens decide to put on their dinner tables could very well determine what South African farmers put on theirs,” Jacobs said.
Sinenhlanhla Ngwenya: What is the latest on Mzansi’s potato dumping woes?
Willie Jacobs: South Africa’s International Trade Administration Commission (ITAC) has imposed heavy import tariffs to protect the local potato industry against dumping by European suppliers (when other countries sell their excess produce to SA at low prices). However, these tariffs have currently lapsed, and we are awaiting further feedback from ITAC on the next steps.
As we await the outcome, we are confident that the protection and growth of the local industry – from producers to processors – will be prioritised.
From a sector perceptive, the collective viewpoint on import tariffs is clear – while trade and thriving regional and global markets and economies are, of course, a priority, so are South Africa’s agricultural and manufacturing industries.
How does the effect of cheap imports play out in the South African market?
The reality is cheap, low-quality potatoes entering the market will ultimately be detrimental to South African producers and the sector as a whole, and could cause a surge in illicit trading activities.
South Africans have an opportunity to buy and support local and help rebuild the economy. What citizens decide to put on their dinner tables, could very well determine what South African farmers put on theirs.
For industry players to provide the country with good quality, locally produced food, it is imperative that we priorities our growers, our supply chain and the expansion of the agricultural economy.
Should farmers perhaps produce more potatoes to support the frozen produce market?
Emphasis should always be placed on boosting local production, however, we currently have a sufficient supply of fresh potatoes, with forecasts looking promising over the next 12 months.
In fact, data show that the country produced 2.6 million tonnes of potatoes annually between 2017 and 2021, with approximately 400 000 tons being processed each year during the same period. What’s more, unlike most countries, South Africa can produce potatoes all year round, adding to a steady supply. The key obstacles currently being faced by the industry are cheap imports and the significant impact of load shedding.
Why import in the first place, when we have a sufficient supply of potatoes locally?
Imports would only be required if a local shortage is occurring and there are not enough to meet consumer or processing demand. We currently have a sufficient supply of fresh potatoes, with forecasts looking promising over the next 12 months.
Could Mzansi be vulnerable to more dumping in future?
The practice of potato dumping has some harmful consequences. These include further economic decline and hitting where it hurts most, the livelihoods of South African farmers and workers and their families.
Irregular imports are detrimental to a viable local economy, hence the implementation of consistent anti-dumping measures is essential.
READ NEXT: Potatoes: Rosy future awaits but long way to go
Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.
