Drought pushes food prices up
Lebogang Mosikare | Thursday May 19, 2016 10:59
The drought and hot conditions since September 2015 have had a negative impact on yields in almost all the potato production regions in South Africa, where Botswana gets most of her national supply.
The South African Weather Service added that production costs in South Africa are still showing a rising trend putting the profitability of potato production further under pressure.
Mmegi Business visited some small businesspeople who sell potato chips at kiosks at Bluetown location and found out that they have been negatively impacted by the drought-induced price hikes.
Most businesspeople told Mmegi Business that their profits have drastically dropped because of the drought experienced in South Africa where they buy most of potatoes in bulk for sale.
Siphelile Ndolo said the drought, which is being exacerbated by an exceptionally strong El Nino weather pattern, has caused her profits to plummet.
The 37-year-old Ndolo said her customers have decreased after the price of potato chips went up from P7 to P8 per packet following the increase in potato prices in South Africa where she orders her potatoes. She said the current impasse between government and workers over salary increases has also worsened her woes.
“Most of my customers are members of the community, students and workers who depend on government for a living. If the government does not increase their salaries obviously the customers’ buying power decreases. This is compounded by the drought in South Africa which has wrecked havoc in the farming industry,” said Ndolo.
Ndolo said before the drought, which the South African Weather Service announced that 2015 was the driest year on record and showed no signs of abating, she used to buy a 10kg packet of potato chips for P55, the prices now range between P70 and P80.
“I buy most of my potatoes from business people who buy the potatoes from South Africa in bulk. I used to make P250 everyday from selling potato chips, but now I make between P150 and P250,” said Ndolo.
Another trader, Koziba Setume also said her profits have dwindled because of the low supply of potatoes that has been caused by drought that affected South African farmers where she gets most of her potatoes.
Setume said before the drought, the price of potato bags ranged from R30 to R45, but she now buys a packet at between R60 and R70.
“I buy most of my potatoes from farms around Mafikeng in South Africa because they are cheaper than when you buy them from local supermarkets. I have increased my prices for a small packet of potato chips from P7 to P8,” said Setume.
Just like Ndolo, Setume said her profits have also decreased.
“My customers are few because of the hike in potato prices from South Africa. I used to make more than P200 every day, but now I get less than that. It is hectic, but there is nothing I can do about the drought situation, which has affected South African farmers. I hope the situation will improve in future,” said Setume.