Chile: Potato prices are at their lowest in the last three years due to high yields and overstock

Potato prices have dropped considerably this season, which is explained by factors such as the high yield of the crops, a result of the level of management achieved, and the lack of processing plants that add value to the tuber, in order to capture part of the stock that is not bought by consumers.

The manager of the Potato Consortium, Luis Miquel, explained that last year prices were relatively lower, but that in 2023 they reached a peak; however, now they are considerably lower.

“The potato market in Chile is extremely sensitive, and there’s a very simple explanation: the market needs between 700,000 and 750,000 tons of fresh potatoes per year. If that volume is exceeded, the problem of prices falling begins. If the 750,000-ton limit is surpassed, this price collapse immediately occurs, because even if every Chilean ate a 100-gram potato a day—which isn’t the case—we would be lucky to reach 800,000 tons, but there’s no more consumption,” he stated.

He added that in recent years, agronomic techniques and producer efficiency have increased exponentially. “Twenty years ago, the national average was 25 tons per hectare, but today we reach 45 tons. With much less land—from 52,000 to 32,000 hectares—we have many more potatoes. Since potatoes are a crop that depends on what happens during the 120 to 130 days from planting to harvest, they are subject to several factors, mainly climatic. This aspect has been better controlled because much of the land is now irrigated, so drought has less of an impact, although a significant area is still planted under rainfed conditions. Furthermore, pests have also been well managed,” he emphasized.