Potato market in South America

Earlier Report Observations

From 2018 to 2020, the South American potato market grew steadily, with production increasing from 17.4 million tonnes to over 18.3 million tonnes. This expansion was primarily fueled by significant investments in processing capacity, including McCain's entry into the Brazilian market through acquisitions and Bem Brasil's factory expansions, which raised demand for fresh potatoes as raw material. The COVID-19 pandemic in 2020 further accelerated consumption of convenient frozen and processed potato products, supporting overall market volume.

After peaking in 2020, potato production entered a downward trend, declining to 17.2 million tonnes by 2023. Persistent agricultural challenges—such as pests, diseases, high labor costs, and limited credit—consistently constrained fresh potato yields and quality. While major processors like Bem Brasil continued investing and reported a 40% surge in frozen fry output in 2022, these gains in the processed segment could not offset the reduced supply of fresh potatoes, leading to an overall market contraction.

Production potato in South America

In kind, 2017-2020, K t

Top producers of potato, 2017-2020

World map of production of potato, 2017-2020

Potato production in South America has increased for the second consecutive year. In 2020, South America produced 18 321 K t of potatoes, marking a 1.5% gain compared to 2019. The lowest production level was recorded in 2018 at 17 449 K t, which also saw the largest decline of 2.9%. In contrast, 2019 experienced the largest increase of 3.4%.

Annual dynamics of production in South America in kind, 2017-2020, K t

Exports potato from South America

Exports in kind, t

Market performance showed noticeable fluctuations during this period. From the low in 2018 to the high in 2017, volumes varied by 3.6 times. In 2020, South America exported 29 358 t of potatoes, representing a sharp rise of 41.7% compared to 2019. The minimum value was recorded in 2018 at 9 676 t, which also saw the largest decline of 72.4%. Conversely, 2019 recorded the largest increase of 114.1%.

Annual dynamics of product's exports from South America in kind, 2017-2020, t

From 2017 to 2020, the United States was the main partner for exports in kind, accounting for 0.6% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, K $ US

Exported potato volumes from South America have increased for the second consecutive year. In 2020, exports amounted to 12 423 K $ US, up by 20.0% over the previous year. Over the period from 2017 to 2020, exports decreased by 17.1%, with a compound annual growth rate (CAGR) of 6.1%. The minimum value was recorded in 2018 at 6 134 K $ US, which also saw the largest decline of 59.1%. In contrast, 2019 experienced the largest increase of 68.8%.

Annual dynamics of product's exports from South America in value, 2017-2020, K $ US

From 2017 to 2020, the core group of markets for exports in value terms consisted of the United States (4.5% of exports in value terms), Guatemala (1.4% of exports in value terms), and Aruba (0.6% of exports in value terms), together representing 6.5% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports potato to South America

Imports in kind, t

Cross-border shipments of potatoes to South America have increased for the second consecutive year. In 2020, imports amounted to 62 464 t, which is 10.4% above the previous year. Over the period from 2017 to 2020, imports decreased by 15.5%, with a compound annual growth rate (CAGR) of 5.5%. The minimum value was recorded in 2018 at 37 710 t, which also saw the largest decline of 49.0%. Conversely, 2019 recorded the largest increase of 50.1%.

Annual dynamics of product's imports to South America in kind, 2017-2020, t

From 2017 to 2020, the three largest markets for imports in kind were the Netherlands, Canada, and France, which together accounted for 22.3% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, K $ US

Potato deliveries to South America have increased for the second consecutive year. In 2020, imports reached 30 491 K $ US, up by 3.0% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 10.5%, with a compound annual growth rate (CAGR) of 3.6%. The minimum value was recorded in 2018 at 21 436 K $ US, which also saw the largest decline of 37.1%. In contrast, 2019 experienced the largest increase of 38.2%.

Annual dynamics of product's imports to South America in value, 2017-2020, K $ US

During 2017 to 2020, imports in value terms of potatoes to South America were relatively evenly distributed. The Netherlands (42.0% of imports in value terms), Canada (3.2% of imports in value terms), and France (2.9% of imports in value terms) jointly accounted for 48.1% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020