Argentina's potato sector faced a difficult 2025, with weak export competitiveness, reduced industrial demand, and soft domestic consumption affecting crop profitability. The situation was most acute in Buenos Aires province, which represents nearly half of the national planted area.
Within Buenos Aires, the southeast was the most affected region. This area is a key production zone for fresh consumption, processing, and seed potatoes. Oversupply, weather-related disruptions, and market prices below production costs led to part of the crop being left unharvested. These conditions were reflected throughout the year in CONINAGRO's regional economy indicator, where potatoes remained in the red zone, signalling sustained pressure on the sector. As a result, producers reduced planted area and, in some cases, exited production.
Mario Raiteri, secretary of CONINAGRO, vice president of the National Federation of Potato Producers, and a grower in Mechongué, said the combination of abundant supply and limited demand shaped the season. He explained that exports slowed because the exchange rate reduced competitiveness, while high internal costs constrained industrial margins. Large processors supplying neighbouring markets, mainly Brazil, reduced purchases and diverted volumes into the fresh market, adding to domestic oversupply.
"There have been good potato harvests, and the price was even plummeting in the domestic market," Raiteri said. He added that purchasing power remained limited despite lower prices, while rising service and living costs restricted consumption. "In southeastern Buenos Aires province, some potatoes had to be left unharvested. The same thing happened to me as to many other producers."
National planted area is estimated at 90,000 to 100,000 hectares, with around 50,000 hectares located in Buenos Aires province, covering consumption, processing, and seed potatoes. In the southeast, excess rainfall, hail, and replanting requirements increased costs and reduced yields. Water management issues further complicated crop recovery in some areas.
Raiteri said about 25 per cent of potato production was exported in 2025. However, processors reduced contracts and did not absorb all previously agreed volumes, pushing additional product onto the domestic market and reinforcing price pressure.
According to Raiteri, infrastructure gaps persist, particularly in storage, cold facilities, and distribution centres close to consumption areas. He also raised concerns about price spreads between farmgate and retail levels, noting that large differences without added value are difficult to justify, even near production zones.
Producers have raised these issues with provincial and national authorities, including measures to protect seed potato regions, improve market oversight, and support export competitiveness. Raiteri said export-oriented seed potatoes offer longer-term potential, provided costs, exchange rate conditions, and logistics allow producers to compete.
Looking ahead to 2026, Raiteri said outcomes will depend on planted area, cost levels, and access to credit, which remained limited during the 2025 planting season.
Source: Newsdigitales / Argenpapa
