A combination of improved technology, targeted marketing, and improved market intelligence is beginning to pay off for the South African potato industry.
This was evident in 2025, when production climbed to a record 276 million 10kg bags, up from 256 million in 2024, despite only a modest increase in plantings. The crop was grown on 53 094ha, compared with 52 368ha the previous year. Average yield increased by 5% year-on-year to reach 52t/ha in 2025.
Speaking at the Sandveld Potato Growers’ Association’s annual general meeting in Dwarskersbos, Western Cape, last week, FP Coetzee, manager of information and regional services at Potatoes SA (PSA), said the gains reflected a steady improvement in farm-level efficiencies.
“That is nine million bags more than the previous record of 267 million bags set in 2019, and from about 2 000ha less land,” he said.
At the same time, efforts to stimulate demand are beginning to shift market dynamics. After sharp price swings during periods of oversupply in 2023 and 2024, the market showed signs of greater stability in 2025, although prices remained under pressure. In 2024 and 2025, the average price for a 10kg bag was R57,44 and R63,17, respectively, compared with R66,26 in 2023.
According to Coetzee, this relative stability was supported by targeted campaigns to boost consumption.
“Some retailers reported sales increases of more than 155% for some periods during 2025, while per capita consumption rose from 37kg to 39,9kg over the past year,” he explained.
Building on this momentum, PSA is now looking to strengthen its financial base.
CEO Willie Jacobs told producers the organisation must apply this year for the renewal of its statutory levies for the 2027/28 to 2030/31 period, as the current four-year cycle comes to an end in 2026/27. The proposal must first be approved by members at the national congress in July before being submitted to the Department of Agriculture.
Central to the application are two key changes. The first is to align levy contributions across the value chain. At present, levies differ significantly between categories, with guideline rates of 478c/kg for table potatoes, 478c/kg for exports, 383c/kg for processing potatoes, 110c/kg for seed potatoes, and 11,9c/kg for imported potatoes.
“We are not looking to increase the levy on table potatoes. The aim is rather to ensure a more equitable contribution, as all segments benefit from the work being done,” Jacobs said.
The second change is to link levy adjustments to the consumer price index instead of production volumes. Jacobs said this would help smooth income over time and reduce the impact of fluctuating harvests.
“A ceiling, for example 3%, would be built in to guard against sharp increases in times of economic pressure,” he said.
Strict government regulations would continue to guide how funds are spent, with minimum allocations prescribed for areas such as research, transformation, and administration.
If approved, the changes could increase PSA’s funding by between R70 million and R80 million over the four-year period. This would allow the organisation to channel a greater share of its budget into industry projects, lifting spending from the current 37% to as much as 50%.
