Mexico (Sinaloa): Potato producers denounce that the industry breached contracts and returned volumes

The crisis in the potato market is once again hitting producers in Sinaloa, who claim that the industry has breached contracts and returned previously agreed-upon volumes, worsening warehouse overcrowding and complicating the sale of the tuber.

Jorge Benjamín López Rosas, president of the Los Mochis Potato Producers Association, reported that this has caused prices to fall, and a significant surplus of potatoes from the previous cycle is currently being stored due to this marketing crisis. 

"Potato that was already contracted with the industry was returned, and that hits us hard because it mixes with the product we already had in the warehouse, and the outlook is not encouraging at all," he lamented. 

Planting in the Fuerte Valley is scheduled to begin between October 5 and 15, although producers are considering reducing the area. Last season, around 17,000 hectares were planted, but this year they could drop to 15,000 or less.

The president of the paper industry noted that the industry’s defaults reflect the country’s widespread economic downturn, where food consumption has also declined. However, he warned that the lack of certainty in contracts discourages farmers from investing in new crops.

"We can’t argue with the industry because they’re allies, but we also can’t ignore the fact that they returned the product we had already agreed to. It’s a breach of contract, and there must be consequences," he stressed.

Meanwhile, potato prices in the center of the country are showing no signs of recovery and will compete with production in Saltillo, further straining the crop’s profitability.

Potato producers in Sinaloa are calling for unity and self-regulation, aware that planting less could be the only way to avoid another oversupply crisis.