Chile: potato prices rise by 130 percent

In Chile, potato prices have experienced one of the most dramatic increases in history, largely driven by external factors. Today, a sack costs up to USD 14,000.

In Talca, the price of a sack of potatoes rose from C$ 5,000–6,000 in January to currently fluctuate between C$ 13,000 and C$ 14,000. The increase exceeds 130% and is impacting both consumers and traders. It is one of the sharpest rises in staple food prices in 2026.
 

Fertilizers and oil explain the surge

Economist Andrés Acuña, from the University of Bío-Bío, notes that fertilizers account for approximately 59.6% of production costs per hectare. Their price increase is linked to rising global oil prices due to geopolitical tensions in the Middle East and restrictions in the Strait of Hormuz. The ripple effect quickly reached wholesale markets and retail outlets.
 

Farmers face growing uncertainty

José Miguel Stegmeier, leader of Socabio, warns that farmers have no control over these external variables. Input prices such as urea and potassium have risen by up to 21.7% this year. This situation complicates cost planning, especially at the start of the autumn planting season.
 

Impact on consumers and family farming

The price surge is affecting not only household budgets but also small-scale family farming. The Ministry of Agriculture fears that producers may reduce fertilizer use, which could lower yields and crop quality in future harvests in the central-southern region.
 

Key factors behind the price increase

• Fertilizer costs: account for nearly 60% of production costs.
• Oil prices: global tensions are driving input costs higher.
• Volatility: urea and potassium prices have risen 21.7% so far this year.
• Family farming: risk of lower yields due to cost adjustments.