Weekly Product Updates

W36: Potato Update

Fresh Common Potato
Peru
Published Sep 14, 2023
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In W36 in the potato landscape, the global potato market, valued at USD 96.3 billion in 2022, is expected to grow at a compound annual growth rate (CAGR) of 3.47% from 2023 to 2028, reaching USD 118.15 billion by the end of 2023. The market is diverse, with prepared or preserved potatoes leading export value charts in 2021, with the Netherlands, Germany, and Canada being primary exporters.

Potato production in Ukraine faces challenges such as adverse weather, pests, and diseases, impacting both quality and yield. High-quality tubers from the latest harvest, fluctuating spring conditions, and temperatures play a significant role in potato outcomes. While newcomers often exit due to low profitability, experienced growers expand their cultivation areas. Ukraine's potato exports are limited and depend on importing market conditions. Labor shortages concern many farmers, and a scarcity of top-quality potatoes could lead to price increases. Farmers expect potato prices to rise from USD 0.27per kilogram to USD 0.32/kg to cover costs and labor.

Peruvian potato exports between Jan-23 and Jun-23 amounted to 689.3 tons, representing a decrease of 14.7% year-over-year (YoY). The United States (US) was the primary destination, accounting for 30% of the market share, followed by Bolivia at 29.9%, and other countries making up the remaining 39.9%. On the other hand, the average price for special agate-type potatoes in Brazil stood at USD 10.36/25kgs (BRL 51.48/25kgs) in W36, a 9.53% devaluation from the previous week. This drop is due to a rise in potato supply, as the plant is closer to peak potato harvesting centers.

Moreover, the Office of Agrarian Studies and Policies (ODEPA) of the Ministry of Agriculture in Chile has reported a decrease in potato prices, attributed to a market reaction to the upward trend of the tuber nationwide. The report shows a 1.8% national decrease in prices in wholesale markets and free fairs in W35 compared to W34 in 2023. The increase in potatoes traded in wholesale markets is attributed to increased volumes, supply of Argentine potatoes, and decreased demand. The Minister of Agriculture, Esteban Valenzuela, has stated that potatoes have dropped in many regional markets by an average of around 2% in value and plans to continue importing potatoes from Argentina and supporting farmers to achieve better prices.

Lastly, Kazakhstan has significantly increased its potato exports in 2023, witnessing a 13-fold increase since the beginning of 2023. The country earned USD 8.4 million from potato exports, compared to USD 1.7 million the previous year. Kazakhstan exported 108.7 thousand tons of potatoes in just six months, marking a 12.9-fold increase compared to last year. Uzbekistan emerged as the leading buyer, importing 103.7 thousand tons, a substantial increase of 14.5 times.

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