An oversupply in Argentina's domestic potato market has led many growers to abandon their fields, with prices falling by half compared to last year. The price of an 18-kilogram bag dropped from 3,000 pesos (US$3.30) in 2024 to around 1,500 pesos (US$1.65) this season, leaving producers unable to recover production costs.
Investment per hectare averaged between US$7,500 and US$8,000, but growers are recovering less than 20% of that outlay. The Federation of Potato Producers (Fenapp) estimated that a farmer with 100 hectares lost around US$640,000 this year and expects the planted area to decrease next season.
Ezequiel Martínez, an advisor in southeastern Buenos Aires, said the season was marked by oversupply. "There was no price and there were no buyers because there was an excess of potatoes on the market," he said. Many growers left parts of their fields unharvested. One hectare typically yields about 3,000 bags, worth around US$9,900 at last year's prices, but only about US$4,950 this year.
Two main markets absorb Argentine potatoes: the fresh market for retail and the industrial sector for processing into chips. Martínez said industrial buyers have been limiting purchases to 50–60% of contracted volumes. The surplus, which cannot be consumed fresh, has been sold informally as "for potato chips" along roadsides.
Excessive rainfall further aggravated the situation, causing potatoes to rot in the ground. Martínez noted that while unharvested potatoes release nutrients as they decompose, the volume complicates crop rotation and requires additional herbicide applications before replanting.
Fenapp president Alfredo Pereyra said, "A lot of potatoes are still being harvested, but the loss is enormous." He estimated that less than 20% of the investment has been recovered.
Mario Raiteri, potato producer, Coninagro secretary, and Fenapp vice president, said he will "reduce the planting area for this campaign because the economic equation is poor, and the financial equation, with rates of 60 to 80%, is impossible to sustain." Some producers abandoned between 30 and 50% of their plots, waiting for prices to improve.
Raiteri attributed the oversupply to strong yields and weak demand. "Today, potatoes are worth almost 50% less than last year. But those with money don't just eat two more kilos, and those without jobs simply don't buy them," he said.
Argentina maintains 90,000–100,000 hectares of potato cultivation, with yields of 35–70 tons per hectare depending on the region. Buenos Aires province accounts for nearly half of the national production.
Producers believe export development could stabilize the market. While fresh potatoes are difficult to export due to freight costs, frozen, pre-fried, and seed potatoes have better prospects, particularly in Southeast Asia and Europe.
"Knowing that there's food left in the fields, while there are people who can't eat, is truly sad," Raiteri said. "Many smaller producers won't be able to plant again and will simply disappear."
Source: La Nación/Argenpapa
