Mexico: The lowest price in the last 25 years due to potato oversupply
Food production increased while demand fell significantly.
Potato production in the country this year has grown by up to 30% while demand has fallen, reported Conpapa. Regarding prices, March was the lowest month this year, reaching seven pesos per kilo.
The Vice President of Communications and Marketing of Conpapa (National Confederation of Potato Producers of the Mexican Republic), Roberto Garza Villarreal, pointed out that this year in particular a very complicated situation presented itself: the dams of the Pacific, specifically Sonora and Sinaloa, were at their historical lowest levels in the last 35 years, so planting corn, sorghum and alfalfa was not allowed, therefore, farmers who dedicate themselves to this, chose to look at potatoes and with this generated an overproduction, while decreasing demand.
He added that during the January-May 2025 cycle alone, potato production grew by 20 to 30% compared to the same period last year, while demand, generally seen in industries, factories, and supermarkets, also fell by 20 to 30%.
"A 30% increase in production and a 30% decrease in demand is extremely serious; the situation right now is extremely serious," he said.
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Regarding prices, he noted that March saw the lowest price in the last 25 years, when the best-quality potatoes reached seven pesos per kilo, while in October 2024 they were at 25 pesos, all at field prices or prices paid to the farmer.
"Although the farmer’s price is very low, the elasticity of supply and demand is not reflected in the supermarket. The price is not visible in the market or in the supermarket. Although the price has dropped from 25 to seven pesos, in stores it is still above 30 pesos. That’s where the farmer pays a lot because the product is not sold," he said.
However, Garza Villarreal commented that for now, there is a very important advantage in potato production, since the Pacific has already finished harvesting and only Chihuahua and Zacatecas are doing so, although they are doing so under rainy conditions that complicate the harvest.
On the other hand, regarding American potatoes, he indicated that they have greater exposure in supermarkets and a lower price compared to Mexican potatoes, when this shouldn’t be the case, simply due to the cost of shipping.
They have sought to have the dumping issue apply here; however, the regulations set by the Federal Ministry of Economy are very difficult to comply with, and in order to fight this case, one would practically need the approval of the Ministry of Economy, since the requirements they demand are practically impossible to meet.
Although he believes there are no direct subsidies for these potatoes, this is achieved through imports and negotiations because it’s impossible to sell them at half the price of Mexican potatoes, especially when the latter are at historic lows.
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