Chile: Potatoes are going through their worst period in a decade.

The current potato season in Chile has been the worst in a decade, due to a combination of overproduction (increased planted area and higher yields) and extremely low prices, creating uncertainty and discouraging producers from planting again. Why is it the worst season?

• Oversupply:  A significant increase in domestic production, coupled with good yields, flooded the market.
• Drastic price drop:  The price of a sack of potatoes fell from over $20,000 last year to an average of $2,000 this season, making production unviable for many.

Impact on farmers:

• Economic losses: Low prices do not cover production costs, generating large losses.
• Uncertainty: Farmers lack certainty when planning the next planting, which could lead to a decrease in cultivated area. 

What can we expect for the future?

• A smaller planting area is expected for the next season, although this will depend on the prices obtained in the current harvest and possible reductions in production costs. 

In summary, the current crisis is due to a supply shock that collapsed prices, aggravated by weather problems that affected the quality of the product, leaving producers in a very vulnerable situation.