At the end of March 2026, potato production in Brazil is influenced by climate, cost developments, and market conditions.
The start of the season was marked by high temperatures in southern Brazil, with 40°C recorded in Rio Grande do Sul and close to 38°C in Santa Catarina and Paraná. These conditions have raised concerns about water stress. INMET has indicated that below-average rainfall is expected in the southeast, making irrigation management a key factor for production in Minas Gerais and São Paulo.
Input costs have also increased. Oil prices have risen by 51%, affecting fertiliser markets, with urea prices increasing by up to 35%. In response, Brazil has implemented a temporary exemption of PIS/Cofins taxes on diesel to reduce fuel costs. At the same time, the Parliamentary Agricultural Front and CNA continue to monitor freight rate discrepancies, which are affecting production margins.
Market conditions show price declines. Wholesale markets in São Paulo, Rio de Janeiro, and Belo Horizonte recorded decreases of up to 18.1%. The decline reflects the normalisation of harvest flows following earlier rainfall. However, quality variation has been reported, particularly for volumes from southern regions and the Cerrado Mineiro, requiring attention in grading.
Alongside these developments, Guarapuava in Paraná has been recognised as the Capital of English Potatoes. Embrapa is advancing the use of artificial intelligence to map productive areas, while the government has allocated BRL 120 million (US$22.8 million) to support the modernisation of family farming.
The sector continues to operate under variable climatic conditions, rising input costs, and price adjustments, with production management and efficiency remaining central to operations.
Source: potatoPRO
