On-the-Ground Update

Brazilian pre-fried potato industry shall build pressure on farmgate prices in January

Published Dec 28, 2021
Brazilian market is currently affected by the diminished amount of winter potato crop yield. The frosts that occurred between July and August and droughts that blighted the tubers to mature all over the period, prevented the potato industry from fully replenishing its stocks at its preferred season. Therefore, the suppliers couldn't help depending on the crop harvested during the rainy season. The late winter tubers are now coming off with bad quality, causing problems such as greenish skin and softer flesh.

One of the factor that triggered the lack of crop was that less amount of potato seeds was imported because the market expected the winter crop yield based on the past rainy season this year and the price of the seedlings was high.

Meanwhile, the production area of Brazil has been growing YoY, showing an increase of nearly 3.6% this year. This increase was mostly stimulated by the industry which had expected improve of 2.4% in aspect of sowing areas in 2022.
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