W42: Potato Update

In W42 in the potato landscape, South African potato prices have doubled, increasing by 102% year-on-year (YoY) in Oct-23. The retail potato price ranges from USD 5.79 to 6.31 per 7-kilogram (kg) bag, while a 10-kg bag stands at around USD 8.42. This price hike is due to electricity shortages, rising production costs, and reduced potato output in northern regions because of dry weather conditions.

Potato prices increased significantly in various regions in Brazil in W41 due to a reduced supply resulting from the winter harvest slowdown and heavy rainfall impacting primary potato-growing areas. Potato prices for a 25-kg bag in São Paulo averaged USD 15.22 (BRL 76.31/25-kg bag), a 7.79% week-on-week (WoW) increase. In Belo Horizonte , prices rose to USD 14.39/25kg bag (BRL 72.18/25kg bag), an 11.71% WoW increase, while prices surged in Rio de Janeiro to USD 16.48/bag (BRL 82.64 per bag), a 19.41% WoW increase.

In Russia, Primorsky Krai aims to achieve 95% potato self-sufficiency by 2024 due to state support for the agro-industrial sector. The regional budget for the next three years allocates over USD 53.49 thousand (RUB 5 billion) to agro-industrial development. In addition to potatoes, the region also aims for self-sufficiency in vegetables (63%), eggs (62%), milk (52%), and meat (65%). The draft budget for 2024-2026 allocates a total of USD 139.07 thousand (RUB 13 billion) for agriculture development. Moreover, potato prices decreased by 1.3% in Russia.

Lastly, wholesale potato prices in Uzbekistan have remained stable at USD 0.25/kg (UZS 3,000/kg) since Jul-23, a 25% YoY decrease from 2022, 14% lower than in 2021, and 6% lower than in 2020. The first new harvest of potatoes arrived three weeks later than in 2022, leading to a continuous price decline. Uzbekistan's potato market stability depends on supply conditions from primary importers like Pakistan, Kazakhstan, and the Netherlands, which make up about 99% of Uzbek potato imports.