Simplot Expands Potato Production in Mendoza, Boosting Local Farming and Uco Valley Cluster

Simplot is moving forward with plans to increase its potato production in Mendoza. Company executives met with Governor Rodolfo Suarez and the Ministers of Economy and Energy to discuss joint efforts aimed at strengthening the company’s operations in the province. The expansion will center on the Luján de Cuyo plant, where Simplot intends to scale up its primary potato production.

Two-Phase Expansion Strategy

The company outlined a two-stage growth plan. In the first stage, expanding production requires securing additional energy, which is currently limited in the Pareditas area. Water wells in the region depend on this energy supply to support crop development.

The second stage focuses on extending the potato production cycle. However, until agricultural challenges in Pareditas are resolved, Simplot may temporarily source potatoes from Buenos Aires. This option is “very expensive” and involves “a lower quality potato,” according to company discussions.

Enrique Vaquié, Mendoza’s Economy Minister:

"During this transition, we are exploring what we can do despite the higher cost of transporting potatoes from Buenos Aires. We have requested figures regarding freight, production costs, and so on, to see if we can find solutions for that aspect."

He added that the Executive branch continues working to establish a potato cluster in the Uco Valley through the Mendoza Activa 4 program and with new producers.

Enrique Vaquié:

"If we secure the energy, these new producers will be able to use it with the quality standards the company requires. That’s another element that would complement the two previous ones we’ve been working on with them."

Investment in Local Cultivation

Simplot’s Argentina facility is located on Route 7 at kilometer 397, near the Almafuerte prison. Alongside the plant expansion, the company will develop 1,800 hectares of potato crops in Pareditas, San Carlos, and collaborate with third-party growers to improve farming techniques and water-use efficiency.