According to Conpapa, potato production in Mexico has increased by up to 30% this year, while demand has decreased. Roberto Garza Villarreal, Vice President of Communications and Marketing at Conpapa, indicated that water shortages in the Pacific regions of Sonora and Sinaloa affected traditional crops like corn, sorghum, and alfalfa. This led farmers to switch to potatoes, resulting in overproduction.
During the January-May 2025 cycle, production rose by 20 to 30% compared to the previous year, while similar declines were observed in demand from industries, factories, and supermarkets. Garza Villarreal noted, "A 30% increase in production and a 30% decrease in demand is extremely serious; the situation right now is extremely serious."
In March, potato prices reached an unprecedented low of seven pesos per kilo, compared to 25 pesos in October 2024. Despite the decrease in farm gate prices, retail prices remained above 30 pesos. He stated, "Although the price has dropped from 25 to seven pesos, in stores it is still above 30 pesos. That's where the farmer pays a lot because the product is not sold."
Garza Villarreal remarked that current production advantages lie in the completion of harvesting in the Pacific regions, leaving only Chihuahua and Zacatecas under challenging, rainy conditions. He expressed concerns over the competitive pricing of American potatoes, which have greater supermarket exposure despite transport costs.
Efforts to address the dumping issue face regulatory challenges with the Federal Ministry of Economy. Garza Villarreal emphasized the complexities in meeting the Ministry's requirements, making it difficult to contest these disparities. He speculated that no direct subsidies exist, attributing cost advantages to imports and negotiations.
Source: ArgenPapa
