Planting white or modern potatoes in Peru is not as profitable as growing native potatoes. This is due to the high investment required by the technological package for its cultivation, which is not directly related to profitability for producers.
In contrast, native tubers, which are planted above 3,500 m asl and are free of many pests and diseases, do not require agrochemicals, making them an almost ecological product.
Furthermore, due to their bright colors and high antioxidant content, native potatoes are in high demand in the food industry for the production of value-added products, such as chips or chips that are already exported to Europe, the United States and some South American countries. For this reason, the Agr. Engineer. Juan Miguel Quevedo Bacigalupo, specialist in the Peru Potato Chain of the Ministry of Agrarian Development and Irrigation, proposes reducing the areas of cultivation of white potatoes and, instead, promoting the production of native colored potatoes, which is our main strength and differential. and it can boost us as a country.
ꟷ Being Peru the birthplace of the potato, why is this product not on all the tables of Peru homes, like bread or rice, for example, Ing. Quevedo?
ꟷ Potato consumption in the country is currently 92 kilos per person per year, while rice consumption is only 50 kilos per person per year. Furthermore, potatoes are planted in 19 regions, both on the coast and in the mountains, while rice does not go beyond 6 to 7 regions, which is why potato production is greater. On the other hand, the potato is 100% native to Peru, while rice was introduced by Europeans in the 16th century.
ꟷ How is per capita potato consumption evolving in the country and the world?
ꟷ In the last 20 years, per capita consumption of potatoes in the country has gone from 76 kilos per person per year to 92 kilos due to the greater consumption of fresh and processed native potatoes. However, in the world the evolution has been different. While in countries such as Poland, Azerbaijan, Belarus and Russia itself, consumption has been high, in Africa and India, it has been the opposite.
ꟷ Although the gastronomy boom has contributed to the vindication of some native products such as potatoes to the national diet. However, there is still more to be done to recover the levels of per capita potato consumption of the 60s and 70s, which was 105 kilos. What strategies should be applied to increase consumption of the tuber, especially in cities, where there is little habit of eat dad?
ꟷ We must take into account that in the 60s and 70s the national population did not exceed 10 million and there were more potatoes. In addition, there was not much competition from rice, noodles and breads. What we must do is continue with the campaigns to increase consumption. As quality standards in cities are very demanding, we must go to the potato production areas to support producers to improve the quality and yields of their crops, through the use of certified seeds and good practices. agricultural.
Likewise, accompany them with technical assistance for good selection, classification, and better pest control. With quality tubers we will be able to offer consumers not only fresh potatoes, but also colorful native potatoes to restaurants and processors.
Favorite potatoes
ꟷ What varieties of potatoes are Peru consuming the most?
ꟷ In recent years the demand for native potatoes is increasing, within this framework, the yellow tumbay, peruanita, huayro, huamantanga and camotillo potatoes are the varieties most preferred by the consumer public. Apart from the chicken shops that prefer modern white potatoes, the industry demands native potatoes with colored flesh such as huayro macho, ceccorani, putis, leona, wira pasña, gaspar, puka suito, etc., for the preparation of snacks or flakes of potato.
Peru National Production
ꟷ Speaking of the socioeconomic aspect of the crop, how many exact hectares of potatoes are planted in the country and how many producers does it involve?
ꟷ In the 2021-2022 campaign, 342,895 hectares were planted in 19 regions, with a yield of 17.2 tons per hectare, and a national production of 6.0 million tons. Potato cultivation involves 711,313 producers.
ꟷ In the ranking of potato production, what position does our country occupy?
ꟷ In the world, we rank 14th in potato production.
ꟷ What do we need to achieve a better location within that ranking?
ꟷ Technological innovation must be promoted to provide better goods and services to potato producer organizations and individual producers. Likewise, soil analysis, use of certified seeds, good agricultural practices, comprehensive pest management, proper selection and classification must be carried out. In addition, campaigns must be deployed to promote the benefits of potatoes to increase per capita consumption per year. Likewise, added value must be encouraged, as many companies are doing, developing innovative products.
Contribution of potatoes to GDP
ꟷ How much does the potato contribute to the national agricultural GDP?
ꟷ At the national level, the contribution of potatoes to agricultural GDP reaches 6.5%, however, there are regions where it reaches 45% and up to 47% of the gross production value (VBP), as is the case of Apurímac, Puno, Cusco, Huánuco and Ayacucho. In 2021, the VBP of potatoes reached S/5,555,469 and in 2022, S/8,234,143.
We have to make alliances
ꟷ Promotion campaigns mean resources, which are generally scarce in the public sector. How do we have money, engineer?
ꟷ It is true that the budget is not enough and it is necessary to develop strategic alliances between the State and private companies, including industries and supermarkets. For example, thanks to these alliances, we as the General Directorate of Agricultural Development and Agroecology have promoted several campaigns such as Papea Peru, Ponle una Papa más al Caldo, Papa pa’ ti, la Papa te da Punche , etc. Another strategy is to design and develop a powerful message and spread it through the networks. Likewise, hold fairs with innovative demonstration dishes based on the Peruvian potato with restaurants, gastronomy institutes, municipalities, among others.
Native potatoes are more profitable
ꟷ Is potatoes a profitable crop, in a context of rising fertilizers, inflation and lack of labor? How much is the average installation cost of a hectare of potatoes and how much is the profitability for the producer, that is, taking into account the farm price, not the market price?
ꟷ White potatoes require a lot of technological and fertilizer package, so installation costs exceed S/20,000. On the other hand, native potatoes , when planted above 3,500 m asl and being free of many pests and diseases, which is why they do not need as many chemical products, their costs do not exceed S/10,000. For this reason, the profitability of native potatoes is much higher than that of white potatoes.
ꟷ By what percentage is the profitability of native potatoes higher versus white potatoes, taking into account the farm price?
ꟷ Based on the average potato production costs, both modern and native, and the on-farm price, the average profitability is as follows:
- Modern potato (Canchan)
S/23,000/30,000 kilos = 0.76 soles cost per kilo
S/1.10 (sale price) – 0.76 = 0.34 soles / kilo of profit
S/0.34 x 30,000 = S/ 10,200 soles of profitability
ꟷ If the installation costs of native potatoes are lower than white potatoes, why are they sold more expensive?
ꟷ Among other reasons, because it is a more ecological and healthy product, because it uses less synthetic fertilizers and more organic fertilizers. Likewise, for having a greater amount of dry matter and antioxidants, for being planted in rested and healthier soils, and for having less insect damage when planted at higher altitudes.
ꟷ The problem of lack of profitability of the crop, apparently, is not an issue of yield, but of costs or price of the tuber. What do you think?
ꟷ In white potatoes, despite their high yield (up to 40,000 kilos in the Peru regions of Lima, Ica and Arequipa ), profitability is low, due to higher costs and the low value paid for them. On the other hand, in native potatoes , although the yields are not very high, the profitability is much higher due to the low costs and good prices paid in the market.
ꟷ So, what do you propose to achieve greater profitability of the crop?
ꟷ In native potatoes , to increase productivity and have a greater supply of quality products, which is what the gastronomic market and the processing industry are currently demanding, we must promote the use of quality seeds or certified seeds, improve practices agricultural, that is, that agronomic activities are carried out on time, and then ensure that this offer is destined for the industry or processing companies or for gastronomy. For potato cultivation to be profitable, these three aspects must be taken care of: increased productivity, better quality of tubers and a secure market.
We must reduce the areas of white potatoes
ꟷ In the case of white or modern potatoes, how do we achieve greater profitability?
ꟷ In the case of these potatoes, which represent 75% of the total plantings, it is necessary to plan the plantings, reduce the areas, look at other alternative crops with greater profitability and direct them to processing such as chopped potatoes for poultry, flour, etc.
ꟷ What are the crop profitability projections in 2023 where we have had droughts, road blockages and heavy rains?
ꟷ Until the end of the current agricultural campaign, a greater supply of both modern and native potatoes is expected from the central mountain areas such as Huánuco, Pasco, Junín, Huancavelica, Ayacucho and Apurímac, which will cause prices to wholesale level decrease. While it is true this will lead to greater availability and access for consumers, for producers this will mean lower profitability.
Projection to 2040
ꟷ How long has the market and industry interest in native potatoes been, engineer?
ꟷ When the General Directorate of Agrarian Promotion was formed in 2003, one of the axes of the strategic plan for potato cultivation was to talk with producers so that they understood that planting native potatoes was more profitable than planting modern or white potatoes, and that for We were going to support this with the strengthening of associations, business plans, financing, articulation in the market and the implementation of consumer promotion campaigns.
All this work cost us almost 20 years . Now we are planning what we are going to do between now and 2040. For example, what products and presentations are we going to offer? What infrastructure needs will we need for conditioning, collection centers, etc.? And for this work we have to rely on market studies, technological innovation, academia and successful international experiences.
Innovative products
ꟷ Do you already have any idea what these innovations will consist of? Can you cite some examples of what is done in other countries?
ꟷ Among the most important innovations we have: Preparation of native potato flour with colored pulp aimed at natural dyes and cosmetology and to produce nutritious mixtures with other crops; accessories and auto parts derived from petroleum with potato flour; organic packaging as an alternative to plastic and styrofoam, based on potato flour; transformation of organic potato waste into balanced animal feed; intensive use of potato flour in baking.
In addition, the potato will play an important role in medicine, due to its chlorogenic acid content, it is known for its antioxidant properties and potential health benefits. Chlorogenic acid , a phenolic compound related to the reduction of oxidative stress, inflammation and the risk of certain diseases, such as type 2 diabetes and heart disease, as well as its possible anti-cancer and neuroprotective effects.
Replicable experience
ꟷ Is it true that some South American countries want to replicate the national experience with native potatoes?
ꟷ It’s true. Chile, Bolivia, Ecuador, and Colombia have requested information on how we have strengthened and promoted the potato chain, especially the native potato and its byproducts based on a strategic plan, and that is why they want to come to Peru.
Qali Warma buys potatoes
ꟷ Another problem that potatoes face is marketing. How do we eliminate unnecessary intermediation, which is the main bottleneck?
ꟷ What we do is directly connect potato producers with consumers through fairs, business conferences, state purchases like the one Qali Warma is doing , for example, in Junín, where he buys more than 250 tons of potatoes. native for school programs. Likewise, take information on the demand from poultry shops, processors, supermarkets and wholesalers; and share the quality standards that these companies demand among producers.
Another way to reduce intermediation is to take companies to the field to develop meetings and business roundtables, which help establish commitments and sign purchase and sale agreements with producers according to the variety and quality standards demanded .
ꟷ Without a doubt, Qali Warma is a successful experience, but it is minimal, and they are isolated examples. In the State there is a potential market for agricultural products. However, despite there being up to two laws that provide for the direct purchase of food of agricultural origin, the authorities turn those regulations around. How to solve this problem?
ꟷ Just like Qali Warma in Huancayo, the work with producer organizations and Senasa is very efficient, what is missing is to spread these successful experiences in other regions of the Andes, from Amazonas to Puno. Much depends on the leadership and enterprise of regional government representatives, coordination with the Qali Warma program and producer organizations.
On the other hand, the Common Pots program is another alternative for the marketing of products considering that it is estimated that there are more than 2,500 Common Pots in Metropolitan Lima. It is necessary to demand at all levels of government and monitor compliance with the implementation of the laws that promote the purchases of products from producer organizations.
Leaders in the white potato industry
ꟷ Which countries are ahead of us in potato production, marketing, and industrialization, which should we imitate?
ꟷ We are ahead in processing potatoes, especially white, in the United States and Canada , in North America. In Europe, Holland, Belgium, Germany, France and Poland. While in Latin America, Colombia, Chile and Argentina. However, we are ahead of them in native potatoes , because they do not have the extraordinary diversity of native tubers as we do. That is why I insist that our potential is in the native potato , whose production, marketing and industrialization we must continue to promote.
Export
ꟷ How much is the export volume of potatoes?
ꟷ Last year the export of Peru potato by-products reached 6,530 tons with a value of USD 8,075,070.
ꟷ In what presentations are we exporting and to which countries?
ꟷ 80% of potatoes are exported to the United States in the form of pre-cooked and frozen yellow varieties, as well as vodka. And about 1,300 tons of chips or flakes of native colored potatoes to France, Holland, Italy and Spain.
ꟷ And fresh potato?
ꟷ Yes we ship, mainly, to Bolivia. But in relation to 2019, the year in which we exceptionally exported 17,160 tons of fresh potatoes, in 2021 and 2022 that volume fell to 6,530 tons, due to the pandemic and the global recession.