Chile: Rain in the South Hits New Potato Crop, Santiago Market Manager Warns of Higher Prices

Heavy rain in southern Chile has caused problems for potato growers. The general manager of the Lo Valledor wholesale market in Santiago, Gonzalo Bravo, gave this warning on 21 September. He spoke to the news site BioBioChile. The news site El Dínamo also reported his comments.

According to him, potatoes from the south have had “several problems” because of excess rain. Small producers do not have the logistics to lift the crop and store it in proper conditions. He expects potato prices to rise, because production in the south is lower and harvesting is difficult.

Bravo said that only large operations have the logistics to keep proper storage conditions. Spring is now starting in Chile. According to him, in the warmer weather stored products tend to sprout, and potatoes react in this way.

The warning comes at a difficult moment for the market. Stocks of stored potatoes in Chile ran out early this year, in July. Since then, prices have been high. The national growers’ association Consorcio Papa Chile said in mid-September that relief would not come before October. Our report on the early end of stored stocks in Chile was published on 23 September.

Wholesale prices already differ widely between regions. The farm news site Diario Frutícola analysed the official price bulletin of ODEPA, the agricultural policy office of the Chilean ministry of agriculture, for 14–18 September. According to the site, variety and market create price differences of more than 30%.

Bravo did not give figures for the rain damage or for the size of the expected price rise.

Why it matters

Chile needs new-season potatoes to end a period of shortage. If rain in the south reduces or delays the new crop, high prices may last longer. Small growers without storage are the most exposed, because they cannot hold potatoes in good condition through the spring. For buyers, the warning of the market manager is a signal to secure supply early.

Photo: Potato field in Quinched, Chonchi, southern Chile (illustrative). Lin linao / Wikimedia Commons, CC BY-SA 3.0