Analysis of weekly price trends on domestic fresh produce markets shows a modest rebound during midmonth as the market responded to the lingering weather-induced supply tightness emanating from the extreme freezing conditions that affected parts of Limpopo and flooding conditions in the Western Cape.
Senior Agricultural Economist at FNB Commercial Paul Makube says vegetable prices were mostly on the upside during midmonth with tomatoes posting the biggest gains on the back of a sharp contraction of supplies across major markets.
The average weekly tomato prices last week rose by a whopping 14.3% (+R1.22/kg) weight over weight (w/w) and were 4.3% (+R0.40/kg) higher year over year ( y/y) at R9.72/kg.
This, says Makube, is way higher than the average of R9.11/kg achieved during the first two weeks of July 2024 by 6.7% (+R0.61/kg). For the year to date (YTD), average tomato prices have risen by 9.3% (+R1/kg) relative to the same period last year.
Cabbages followed closely with weekly prices jumping 5.5% (+R 0.190/kg) w/w and 41.6% (+R1.07/kg) y/y at R3.65/kg. The average cabbage prices so far for July reached R3.56/kg which is up by 1.6% m/m and almost 27% higher y/y. Other gainers included carrots and potatoes which recorded midmonth increases of 5.2% and 0.4% w/w respectively at R4.13/kg and R6.06/kg.
However, explains Makube, the average carrot prices for the two weeks of July were down by 28% m/m but still 12% higher y/y at R4.03/kg, while potatoes fell by 6% m/m and 24% y/y at R6.42/kg.
He said that Butternuts and onions were however exceptions after posting midmonth losses of 3.6% (-R0.14/kg) and 1.7% (-R0.14/kg) respectively w/w at R3.62/kg and R8.01/kg. Average butternut prices for the first two weeks of July were sharply down by 33% y/y at R3.69/kg, and for the YTD they fell by almost 24% relative to same period in 2023.
Onions saw a sharp monthly decrease of 17% m/m at R8.08/kg which is 9.4% lower y/y. For the YTD, average onion prices reached R7.20/kg which is 27% below the same period in 2023.
“We saw a similar trend in the fruit market with gains across most commodities tracked. The biggest weekly gainer was grapes with a 7.1% (+R5.81/kg) w/w increase to R88.10/kg, which is 33.9% (+R22.31/kg) higher y/y. The average grape prices for the first two weeks of July rose sharply by 92% m/m and 26% y/y at R85.20/kg. For the YTD, average grape prices rose by 3.3% relative to the same period last year.”
Makube says reduced availability on market helped propel banana, avocados, and apple prices higher during the previous week. The weekly average banana prices settled at R7.32/kg, up 5.9% (+R0.41/kg) w/w and were 5.9% (+R0.41/kg) higher y/y. The average banana prices for the first two weeks of July were however down by 6% m/m but still up by the same margin on last year at R7.2/kg.
For the YTD, banana prices advanced by 7% relative to the same period last year at an average of R8.13/kg.
He said Avocados saw weekly growth of 3.0% (+R0.45/kg) w/w and 8.6% (+R1.21/kg) y/y during last week’s trade at R 15.29/kg.
“This is slightly higher than the average of R15.07/kg for the first two weeks of July which was 2% lower m/m but still up by the same margin relative to the same period in 2023. For the YTD, avocado prices fell by 4% relative to the same period last year at an average of R17.18/kg.”
Makube says the increased volatility in the mango market continued as limited uptake and a rebound in supplies weighed heavily on prices across markets.
Weekly mango prices fell sharply by 51.3% (-R18.19/kg) w/w but were still sharply higher by 84.5% (+R7.90/kg) y/y at R17.25/kg.
“This is however way lower than the monthly average of R26.36/kg so far for July which is sharply higher by 131% m/m and 44% y/y.”
