Potato prices collapse as Mexico faces oversupply crisis

Potato production in Mexico rose by 20–30% during the January-May 2025 cycle, according to Conpapa, while demand from supermarkets and food industries fell by a similar margin. This imbalance is creating serious challenges for farmers.

Roberto Garza Villarreal, Vice President at Conpapa, explained that water shortages in Sonora and Sinaloa pushed many growers to switch from traditional crops like corn and alfalfa to potatoes, resulting in overproduction.

In March, farm prices for potatoes dropped to just 7 pesos (≈ $0.41 USD) per kilo, compared to 25 pesos (≈ $1.47 USD) in October 2024, yet retail prices remained above 30 pesos (≈ $1.76 USD), cutting deeply into growers' profits. “The farmer loses the most when prices collapse, but retail stays high,” Garza Villarreal noted.

With harvests mostly finished in the Pacific regions, only Chihuahua and Zacatecas remain in production, facing tough weather conditions. Meanwhile, U.S. potato imports are gaining supermarket space, putting further pressure on local prices.

Efforts to challenge what many see as unfair pricing from U.S. imports face hurdles. Garza Villarreal pointed out that Mexico’s Federal Ministry of Economy imposes complex requirements, making it difficult to push back against potential dumping or pricing disparities.

Although no direct subsidies are confirmed, Garza Villarreal believes cost advantages and trade negotiations continue to favour imports, deepening the crisis for Mexican potato farmers.

source: argenpapa.com.ar

photo: potatopro.com