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Water restrictions could push potato prices to R171 per 10kg

Proposed water restrictions in the Western Cape’s Sandveld region could lead to a drastic rise in potato prices, potentially reaching R171.45 per 10-kilogram bag. The restrictions might reduce potato production by 30%, causing significant economic and food security impacts

by Ivor Price
2nd August 2024
A dramatic rise in water restrictions could see potato prices soaring to R171,45 per 10kg, impacting both consumers and local farmers in the Sandveld region of the Western Cape. Photo: Supplied/Food For Mzansi

One of the events this week to look out for is the potato production practices short course. Photo: Supplied/Food For Mzansi

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You could end up paying up to R171,45 per 10-kilogram bag of potatoes if proposed water restrictions are implemented in the Western Cape’s Sandveld region. The anticipated price surge follows a dramatic drop in potato production due to severe water constraints.

The department of water and sanitation has proposed a water reserve determination for the F60 and G30 catchments within the Berg-Olifants water management area. This reserve determination, published as a draft in the Government Gazette in May, outlines a plan to reduce agricultural water extraction by 30% to safeguard the region’s water supply for both its population and environment.

Should these restrictions be enforced, the Sandveld region would see a reduction of 30% in its potato production area, translating to a quadrupling of current potato prices.

“South Africa experienced first-hand the consequences of reduced potato production late last year due to load shedding. With 1 600 hectares of potatoes not planted, prices surged by 173%, from a long-term average of R42.87 to R72.92 per 10kg bag.

“If these new restrictions are implemented, a further 2 100 hectares could be lost, leading to an even steeper price increase,” warned FP Coetzee, Potatoes SA’s manager of information and regional services.

Willie Jacobs, chief executive of Potatoes South Africa. Photo: Supplied/Food For Mzansi
Willie Jacobs, chief executive of Potatoes South Africa. Photo: Supplied/Food For Mzansi

While Potatoes SA supports efforts to manage water resources, there are concerns about the imposition of these restrictions beyond necessary ecological stability.

“The potential fallout is severe. Not only would potatoes become unaffordable for those reliant on them for food security, but the local economy could suffer, leading to job losses, social unrest, migration, and greater economic disparity,” stated Willie Jacobs, CEO of Potatoes SA.

The proposed water restrictions would impact approximately 57 farmers who cultivate nearly 6 000 hectares and employ over 6 000 people. The Sandveld region is critical for providing year-round potato supply, with other provinces being up to 700km away.

The Western Cape’s fresh produce markets heavily depend on this local supply, and a reduction in production could result in a significant drop in tax and VAT revenue for local government – estimated at around R300 million annually.

Concerns have also been raised about the accuracy of the water reserve data.

“The figures used to determine water levels are not based on reliable scientific data. For instance, the department of water and sanitation acknowledges that some catchments lack water level monitoring, and the Verlorenvlei’s meter has been broken since 2017. Relying on assumptions rather than actual measurements poses risks to farmers, residents, and the environment,” Jacobs explained.


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Sustainable water use essential for future potato farming

Monique Vlok, chairperson of the Sandveld Potato Producers Association, emphasised the need for sustainable water use.

“Farmers need water to grow crops, but we are committed to responsible practices. Our focus is on sustainability and maximising water efficiency to ensure that we can continue to farm and preserve resources for future generations.”

Potatoes have a notably low water footprint compared to other staple crops, requiring only 34 litres per serving of 113 grams, compared to rice’s 276 litres, maize’s 144 litres, and bread’s 182 litres. “This efficiency supports the case for a balanced approach to water allocation, ensuring food security while protecting resources,” Jacobs added.

Potatoes SA advocates for a scientific approach to water management, including regular monitoring and seasonal water use allocations.

Jacobs suggested that the department of water and sanitation explore more efficient water management strategies, integrated water resource management, and capacity-building measures to mitigate the adverse effects on the potato industry and broader community.

“We need to base our water management practices on solid data and consider seasonal variations to make the most efficient use of available water. This approach will help preserve our resources and ensure food security in the face of climate change,” Jacobs concluded.

READ NEXT: BACF pushes for local empowerment in fresh produce markets

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Ivor Price

Ivor Price is a multi-award-winning journalist and co-founder of Food For Mzansi.

Tags: Commercialising farmerInform mePotatoeswater and agricultureWestern Cape
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