French fry shortage looms in South Africa

Published 2022년 8월 24일

Tridge summary

The International Trade Administration Commission (ITAC) in South Africa has imposed heavy tariffs on frozen French fries from Belgium, the Netherlands, and Germany, allegedly to protect the local industry from 'dumping'. However, these tariffs are expected to increase the cost of imported fries, as seen with German fries which are set to cost nearly three times as much. This comes at a time when South Africa's potato harvests are poor, and there is already a shortage of local potatoes. Additionally, European producers are facing heatwaves that are expected to reduce potato yields, further limiting supply. Critics argue that these tariffs are unnecessary and could lead to higher prices and shortages, as they may push European producers to seek other markets. They are calling for a pause on these tariffs and the consideration of other measures to address the cost-of-living crisis and food insecurity.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Heavy import tariffs on frozen French fries came into effect in July, imposed by the International Trade Administration Commission (ITAC) in an alleged attempt to protect the local industry from ‘dumping’ or being undercut by artificially lowered prices. These include duties on frozen chips from Belgium of up to 23.06 % and up to 104.52 % from the Netherlands, while German suppliers have been hardest hit with new duties of 181.05 %. According to Fred Hume, managing director of import-export business Hume International, however, the South African potato industry does not supply enough raw material to meet the local market’s need for frozen French fries. He says South African French fry producers tend to prioritise contracts to retailers, fast food chains and quick service restaurants, and only then sell surplus – if any – to customers such as independent restaurants, wholesalers, hotels and caterers. “These customers rely on frozen French fry imports to meet their needs for the ...

Source: Bizcommunity