This why potato prices are falling

Farmers, this is what to expect in market 2023!


2022 was one of the bad years for farmers from drought, the high cost of fertilizers, and the influx of imports to low market absorption. All this led to massive losses pushing many out of farming.

Drought in most of the months led to massive crop failures. Most of the crops planted lately on the November short rains and expected to be harvested in February are drying up prenatally due to water stress. This is a loss to farmers.

Unfortunately, the situation in 2023 might not be different as evidenced in January. Most products are slugging slowly in the market with drought persisting. How will various products trade in 2023? Some will make massive profits while others troll in losses.

Tomato

90% of farmers who planted tomatoes in 2022 especially last quarter made massive losses as market prices fell way below the production costs. Despite crop failures experienced by most tomato farmers, supply was still high and consumers had to enjoy cheap quality tomatoes.

As usual, farmers always tend to run away from an enterprise where they made losses previously to one with high prices currently but end up in huge losses again. Most farmers have vowed not to tomatoes again. This will result in scarcity experienced currently which in return pushes prices up.

The prices will continue rising to a peak in March, then stagnating until July. Now if all factors remain constant with imports out of question farmers are likely to make some profits. But there will be some imports the high prices won’t be sustainable.

Onions

The market prices for onions started high in January 2022 and later fall due to an influx of onion imports from Tanzania and the effect has yet to be recovered to date. 2023 won’t be different as prices are expected to remain low for most of the year.

Cabbages

Cabbage prices were a bit more stable in most parts of 2023 though there were a few months when the prices were low. The drought experienced for most of the year stabilized the supply as well as the prices.

This year 2023, though there will be some months with good rainfall majority will be dry. Cabbage prices are expected to be high in the dry months with little fall in the rainy months. However, this will only remain true if supply remains constant like hard last year.

It is expected that most of the farmers who made losses in tomatoes will shift to cabbage farming increasing the supply and lowering prices.

Potato

Potato had a stable season before the 2022 election, then a fall in September and a steep increase in October and November and stabilizing again in December.  In 2023 prices have been stable so far and will increase from February to May and later fall in august before starting to rise again in September.

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Maize

Maize prices have been high in 2022 so do the cost of production. However this year it will be different as prices are expected to remain low mainly due to the government’s decision to allow imports of maize.

Coffee and tea
causes of coffee reduction
Arabic coffee

The coffee market was completely unstable as it was affected by world economic changes fertilizer supplies and the drought. This year prices have started to rise and will not be sustainable. As the world experiences economic slowdown consumption may reduce leading to declining in prices. Any government interference in the sale and trading of coffee may also hurt prices.

Macadamia, avocados

Since these three products purely depend on exports, this year’s prices are likely to be low due to the expected economic slowdown.

The general prices for export agricultural products are expected to fall compared to last year.

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