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Zambia’s leading potato producer has attributed the increase in the potato cost on the market to the high cost of fuel prices and the fluctuation of the Zambian Kwacha which has continued depreciating
Zambia’s leading potato producer has attributed the increase in the potato cost on the market to the high cost of fuel prices and the fluctuation of the Zambian Kwacha which has continued depreciating.
Buya Bamba’s Managing Director Antony Baker has revealed that it is still exporting frozen chips to countries like Uganda, Kenya, Botswana, Malawi, South Africa, and Namibia. He also stated that there was not enough demand for frozen chips in Zambia. Potato prices have increased on the Zambian market by about 20 percent from K110 last Month to now about K130.
Antony Baker attributed the increase in the cost of potatoes to the high cost of fuel prices and the fluctuation of the Zambian Kwacha which has continued depreciating. When the kwacha weakens, potato prices are also expected to increase, adding that if the company does not increase the prices amid the weak currency. This, he said, would lead to the company incurring losses this year. He noted that if the kwacha was stronger, potatoes in the local market would have been more affordable than it is now.
Spelling out the rationale of value of the currency and potato prices, Baker said that most of Zambia’s inputs are dollar-based, starting with fertilizer chemicals and even the fuel prices are being changed every month. When the kwacha devalues everything is going up because everything is linked to the dollar.
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Baker added that there is a need for the government to formulate long-term policies for investors which will allow them to support agricultural development and growth in Zambia for a longer period.
