Dylan Bettencourt
Talk of a potential potato shortage in South Africa led to panic that the lunch favourite slap chips would become harder to get.
But Famous Brands and South Africa’s industry body for potatoes confirmed there is nothing to fear as there are enough potatoes for everyone.
In fact the news got even better as Famous Brands, which owns Steers, Mugg & Bean and Wimpy, said there is an oversupply.
The potato shortage threat came from Hume International, a local import-export business, which said a recently imposed import duty may cause European frozen chips suppliers to stop exporting to South Africa.
South Africa’s International Trade Administration Commission imposed large import tariffs to protect the local potato industry against dumping by European suppliers.
It placed duties on frozen chips of up to 23% for Belgium, 104% for the Netherlands, and 181% for German suppliers from July.
“There is a slight oversupply of potatoes in the South African market for the next 12 months’ forecast, and furthermore, there is chip production capacity available,” Andrew Mundell, group executive for business development at Famous Brands, told Business Insider South Africa.
Mundell said the demands from chip manufacturers would be met.
“There is capacity in the manufacturing space in terms of the factories; [they] have enough capacity to produce it,” he added.
Potatoes South Africa CEO Willie Jacobs agreed that there shouldn’t be a shortage of potatoes.
Mundell said the tariffs are necessary to protect the South African market.
“Before the duties were put in place, certain big importers were importing because it is cheaper. The European market is so big that when they have an oversupply, they actually almost give away the product,” he said.
“The total South African market consumption is 4% of the total European market; the impact of not having duties is massive.”
Image source: @BusinessInsider
