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Argentina: 'Exports bring relief, but they are not a permanent solution'

Potato Field in Argentina

The low price of potatoes in the domestic market in Argentina has resulted in a good start for the export of Argentinian potatoes, with a significant increase in demand, mainly from Latin American countries like Brazil and Paraguay.

Alejandro Rodríguez, representative of ADR Agrícola:

"Our campaign is in full swing; the harvest started in December and January, and although we suffered a lack of water and the production has been lower than expected, demand is taking unexpected turns, so we are very optimistic about the results that will be achieved this season."

"This year, exports had an earlier start than anticipated and we believe the period will last longer than in previous years. Demand has increased and this has consequently had a good impact on overseas trade."

"Large-scale exports kicked off in March with a fast pace of shipments, thus offsetting to some extent the current difficulties we have in the domestic market. We expect the domestic value of potatoes to be driven by these exports."

The annual potato harvest in Argentina hovers around 2 million tonnes for many years.

The Argentinian Government, aware of this situation, took preventive measures, but its management was mainly beneficial for the industrial sectors, failing to reach the fresh sector. Even though the situation could be reversed and producers may receive a fair price for their products, it is still too early to offer an accurate prognosis.

Exports are bringing relief, but they are not a permanent solution. The value of the tuber is expected to normalise again in the coming months.