In Egypt, the escalation in potato prices is primarily due to a higher demand than supply, influenced by climate change effects and a prolonged US dollar shortage, which impeded the import of potato seeds for the season concluding on 30 June, as reported by traders in the potato production and distribution sectors.
The anticipated relief in potato prices with the onset of the new season in November is closely watched. The recent season encountered challenges from the outset, attributed to the difficulty in importing seeds due to a dollar crisis, reducing seed quantities by approximately 25 percent compared to previous years, according to Hatem El-Nagib, vice president of the Vegetables and Fruits Division at the Federation of Egyptian Chambers of Commerce. This reduction, coupled with the decreased productivity of local leftover seeds, signals a looming crisis for various crops, not limited to potatoes, exacerbated by high temperatures and climate change impacts.
El-Nagib highlighted a reduction in yield from 14-16 tons per acre in 2023 to 9-12 tons in 2024, with yields from local leftover seeds at about 7-10 tons per acre. Consequently, the market supply has decreased by 35-40 percent, leading to an increase in prices. The wholesale price per ton now ranges between EGP 19,000 and 23,000, with retail prices between EGP 30,000 and EGP 35,000 per ton. Annually, Egypt produces about seven million tons of potatoes.
El-Nagib also noted the strategic importance of potatoes in the market, with demand rising as prices for meat, poultry, fish, and other commodities increase. He suggested several measures to alleviate the situation, including the release of potatoes held for testing by the Ministry of Agriculture at cost price, monitoring storage locations, and postponing new export contracts to maintain Egypt's international market reputation.
[ EGP 10 = €0.18 ]
Source: english.ahram.org.eg