French fry shortage looms in South Africa

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 ...