Mid-June is traditionally a difficult time on the fresh market
Currently, brown and white onions are fetching over 92 rand (4.7 euros) per 10 kg in urban markets, and red onions are fetching almost twice as much: 195 rand (10 euros) per 10 kg. In his weekly market analysis, agricultural economist Dr Johnny van der Merwe notes a very strong correlation between the price movement this season and that of 2019, albeit with 46% higher prices this season.
Power disruptions and increased costs across the value chain have hit South Africa’s onion and potato yields hard, but if the 2019 analogy holds, consumers can expect some relief in the coming months, says Dr Van der Merwe.
“Assuming we continue to follow the trend of 2019, we can expect prices to remain at these high levels for the next three weeks and then potentially start to decline. We might see slightly better prices again in October, but the general trend is expected to be downward from now on.”
Daily onion sales figures released by Potatoes South Africa show that less than 22% of the available 7kg bags of onions were sold in the markets yesterday at an average price of R70 (EUR 3.6) per bag. The previous week, supply was more than 100,000 bags (10kg) lower and the price slightly higher.
Tomato prices have fallen by 31% to an average of R7.16 per kilogram in the past week, while volumes have increased by 17%. “It is mainly due to a shortage on the demand side,” says a tomato trader. “The third week of June is always a difficult time. Next week, volumes are likely to drop again, causing prices to rise.”
Potato affordability has improved to around 50 rand (2.6 euros) per 10 kg. Dr Van der Merwe looks at historical trends and expects the price to remain at this level until the end of August before peaking in October at around 90 rand (4.7 euros).
