Chile’s potato boom brings low prices and tough choices for growers

Potato prices in Chile stayed low this past season, mainly due to high yields that created an oversupply. According to Luis Miquel, general manager of the Papa Chile Consortium, this situation puts farmers in a difficult spot: when production is strong, prices drop so low that profits disappear. Although a small production increase is expected this season, Miquel doesn’t believe prices will recover to past levels.

Planting decisions will depend on weather conditions and farmers’ financial situations, with some likely unable to afford replanting. In the region of Biobío, early potatoes may come to market later than usual due to climate-related delays, but southern regions still offer ideal growing conditions with rainfall and no frost.

Miquel emphasized that Chile has enough potatoes for this year, but also criticized the country’s lack of innovation in potato use. Despite strong production, most processed potato products like frozen fries and mashed potatoes are still imported. He pointed out that Chile has the capacity and know-how to produce them but lacks investment in processing plants.

High setup costs, limited financing, and a lack of long-term public policy support are the biggest barriers keeping local producers from entering the industrial potato sector.

source: argenpapa.com.ar

photo: guioteca.com