The quarter (July to September 2019) was characterized by slight drop in producer prices, owing to increased production and delivery to the market of key commodities which include tomatoes, green peppers, carrot and butternut. This follows a harsh winter where supply of major commodities was heavily suppressed.

Negative price movements were witnessed during the period under review, with the most significant price drop in tomato prices, where producer prices reduced from E140 per 20kg crate to E90 per crate (-36%). Beetroot price reclined by 16% from E45 per 10kg bag to E38, driven by increased production, mainly in the Lowveld and dry Middleveld.

Green pepper prices were reduced from a high of E115 per crate to E100 by the end of the quarter (- 13%). Similarly, cabbages prices were reduced from E8 per head to E7 per head, representing another (-13%), and washed potato prices dropped from E45 per 10kg bag to E41 (-9%).

The price drop in the PPI is expected to hold until the end of October, after which, supply of major commodities will decline, and the demand due to the festive season will spike, thus price spikes are anticipated for the period.

Additionally, indications are that both South Africa and Mozambique producers are under pressure due to an ongoing combination of drought (South Africa), and recovery from cyclones (Mozambique), therefore pressure on the available supply is forecasted to drive prices upwards for the period October 2019 to March 2020.