Over and above the normal farm support that EU farmers received, there were also special Covid-19 support measures afforded to potato producers abroad, said the forum. EU support to their farmers, combined with low-priced surpluses, would drive export prices down further, with a significant risk of increasing dumping margins threatening the South African potato industry.
“The result was a significant drop in prices, far below break-even prices for producers, and a build-up of stock levels in the processing sector. A further blow due to low-priced imports from other countries could be catastrophic,” he said. “In fact, a longer-term consequence is that consumers could face higher prices if South African growers and processors are forced out of business as a result of cheap imports on the back of Covid-19 inflicted reasons.”
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