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VILLA CROP

South Africa -Winter temperatures to determine produce growth rates

Onion prices increased slightly w/w by 2% however this increase margin has been
diminishing as the weeks go by as we predict for onion prices to decline too over the next 3 months. The winter weather conditions we will
have this year will determine the growth rates of some crops like with cabbages and tomatoes, which will impact supply and price in either
direction. A really cold winter could slow down the growth for cabbages for example, which can provide producers bargaining power in terms
of price as supply would be low.

Cabbage prices are down w/w, selling at R2/kg on average. This has been due to low demand and the hail experienced in the past weeks which impacted the quality of the cabbages which isn't the best. The expectation is for prices to remain at low levels should we have a warm winter, if we have a cold winter we will see slightly higher prices over the next 3 months.

Carrot volumes are low at the moment, however we expect an increase in supply over the coming weeks as more producers supply more carrots. However due to the demand being so low, prices decreased 13% w/w. The expectation therefore is for prices to remain low over the next 3 winter months.

Onion prices are up 2% this week and volumes are -27% lower than the previous week. The expectation is for prices to decrease over the next 3 months and volumes to increase as more supply comes in the next week.

Volumes and prices of potatoes have decreased w/w by -19% and -13% respectively as demand is low at the moment. Prices might increase slightly next week due to month end and will continue to decline as the expectation is for volumes to remain high over the coming weeks. Over the next 3 months we predict that prices will be low.

Tomatoes prices have decreased w/w by 32%, with volumes slightly higher w/w. Tomatoes volumes are expected to decrease as the night temperatures drop due to the winter months which are not favourable for tomatoes to turn into the right colour. The expectation however is still for tomatoes prices to remain low over the next 3 months unless we have a really cold winter which might lead to an increase in prices.


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