South Africans face the possibility of a shortage of French fries due to high import tariffs

South Africans are facing the possibility of a shortage of French fries in the next few months as the local potato industry has no capacity to produce more potatoes. 
 
This is escalated by dramatic new import duties on European producers blocking supply to the local market, experts warn. 
 
The suppliers argued that the International Trade Administration Commission (ITAC) imposed heavy import tariffs on frozen French fries which came into effect in July, the move is an attempt to protect the local industry from ‘dumping’ or being undercut by artificially lowered prices.  
 
Independent Media Online posted that this includes taxes on frozen chips from European countries such as Belgium of up to 23.06 percent and up to 104.52 percent and from the Netherlands, while German suppliers have been hardest hit with new duties of 181.05 percent. 
 
Managing Director of a leading import-export company, Fred Hume, says the local potato industry does not supply enough raw material to meet the local market’s need for frozen French fries. 
 
“But the timing of these new duties is especially irrational given the poor local potato harvests seen in recent months, which have limited supply even further,” said the MD of Hume International. 
 
“Ultimately, it’s not a question of dumping or cheaper prices–in many cases, these customers will actually pay more for the imported products just to guarantee their supply of quality fries. 
 
“These tariffs were imposed without consulting any customers of the imported Fries to investigate the reasons as to why South African businesses may be reliant on foreign producers. Had ITAC done so, they might have realised that support for the foreign product isn’t so much about price but rather to secure an ongoing supply.  
 
“Government urgently needs to start consulting stakeholders before making unilateral decisions which are harmful to businesses and households.” 
 
It is worth noting that South African French fry producers often prioritise contracts with retailers, fast food chains, and quick service restaurants, and only then sell surplus–if any– to customers such as independent restaurants, wholesalers, hotels, and caterers. 
 
Hume said these customers rely on frozen French fry imports to meet their needs for the simple reason that they were not able to get consistent supply locally.  
 
The expert also believes that uncompetitive new tariffs could force European producers to turn away from South Africa and seek other markets with any surplus. 
 
As things stand based on the taxes, a 2.5-kilogram pack of frozen French fries from Germany used to cost in the region of R45, but it would now cost some R130 as a result of tariffs before transportation costs and business margins were added.  
 
Main Image: SA Potato Farm/Twitter 
https://mobile.twitter.com/potatoes_za