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Dossier Argentina: Argentina in a changing globalpotato market

May 2026


Anyone traveling through Argentina’s potato regions today will encounter a sector that is in full motion as opposed to one standing still. This momentum is not driven by a spectacular expansion of acreage, but by professionalisation that drives progress. Potato cultivation is shifting from a focus on volume to a focus on optimisation, from local to regional, and increasingly toward a prominent role in the global processed potato product chain.

Argentina is not a new potato-producing country, but it is a country in transition. For years, the sector was defined by a strong emphasis on table potatoes and limited storage capacity, yet the landscape is now changing rapidly. The rise of the processing industry, investments in technology, and a growing awareness that yield and quality must go hand in hand have elevated potato cultivation to a higher level in a short space of time.
This transformation is most evident in the southeast of Buenos Aires Province, around Balcarce and Mar del Plata. Here lie Argentina’s classic potato soils: sandy loam with a high organic matter content, deep black in colour, and naturally fertile. However, without irrigation, potato cultivation is impossible. The landscape is open and inviting, with gently sloping fields where potatoes have been grown for decades. At the same time, this area is far from traditional: it is here that the processing industry has firmly established itself, setting the tone for the rest of the sector. Further west, however, the picture changes radically. In Mendoza, at the foot of the Andes, light sandy soils and a dry climate with low relative humidity prevail. Here, water is even more scarce yet plays a critical role in production. Without irrigation, potato cultivation is impossible. Distances are vast, and logistics pose significant challenges: it can easily take a truck two days to transport potatoes from Balcarce to Mendoza. This reality forces the chain to adopt different approaches. It also explains why processing, cultivation, and storage are increasingly managed regionally.

Growing season in the Southern Hemisphere

It is important to recognise that Argentine potato cultivation follows the rhythm of the Southern Hemisphere. In the main growing region, South East Buenos Aires (SEBA), around Balcarce and Mar del Plata, both table and processing potatoes are grown, with storage playing a key role. There are also early cultivation regions, such as Tucumán and Córdoba. Planting begins in September as winter recedes, and harvest starts in January, continuing into the autumn.
The progression of the seasons is not uniform across the country, as Argentina has several potato-growing regions, each with its own timeline. Growers in early-growing areas, such as Tucumán and Córdoba, supply potatoes mainly in December and early January, helping bridge the gap between the main seasons. Thanks to this regional distribution, the industry, and particularly the French fries sector, can access fresh potatoes for much of the year. This is accompanied by a short annual pause around Christmas and New Year.
This steady growing rhythm requires careful field selection. Farmers use significant amounts of herbicides for preceding crops, such as sunflower, maize, and cereals, partly because some weeds have developed resistance to certain active ingredients. Residues from these products can remain in the soil and negatively affect subsequent crops, including potatoes. Especially when renting land, potato growers need to know exactly which crops were previously grown and which herbicides were used, in order to minimise risks to emergence and crop development. In a capital-intensive system, knowledge of a field’s cropping history is therefore a fundamental prerequisite for successful potato cultivation.

Not more, but better hectares

Potato planting begins in September.

Argentina’s potato sector is therefore growing not by increasing the number of hectares, but by improving them. Growers are seeking to enhance performance through higher yields per hectare, greater uniformity, and reduced risk. This is also driven by the sharp rise in land prices in recent years. Currently, growers pay around USD 15,000 per hectare of potato land. Since irrigation is essential, production costs per hectare quickly rise to between USD 11,000 and 13,000. Precision agriculture is therefore no longer a distant vision, but a necessary reality. Growers make extensive use of drones for scouting and spot spraying, while satellite imagery maps the history of areas, and task maps guide fertilisation and crop protection. This technological acceleration is certainly no luxury. Diseases such as Alternaria are on the rise, while in some regions nematodes and Verticillium add further pressure. At the same time, water scarcity demands ever greater efficiency.
Alongside these developments, the market is also evolving. The traditional table potato sector, long dominant and still the largest outlet, is losing ground. While the long-established Spunta variety remains dominant in the field, the demand for alternatives is growing. Growers and traders are exploring new varieties, preferably dual-purpose, suitable for both the fresh market and processing. This shift reflects a broader trend in which processing is becoming a major driver, shaping the direction of the sector.

Industry as the driving force

Growers make extensive use of drones for tasks such as scouting and spot spraying.

For years, the French fries industry has been the driving force behind Argentina’s potato chain. Not just because of volume, but mainly because of the structure it dictates. Contract cultivation, quality assurance, and long-term relationships have become the defining success factors. This makes potato cultivation part of a larger system, where predictability and efficiency take precedence over maximum yield. In addition to supplying local QSR restaurants, in South America, Brazil is the key market. The country has a large and growing appetite for processed potato products, but structural limitations in domestic potato production, such as climate, infrastructure, and scale, make it difficult to meet national demand. Imports are therefore not a temporary fix but a structural reality. Argentina has developed into the main regional supplier yet operates in an open and competitive market.

Exports matter

In addition to supplying local QSR restaurants, Brazil serves as a key market in South America.

This is reflected in trade figures. According to data from World Potato Markets, Argentina exports around 200,000 tons of French fries and other processed potato products annually, with a value exceeding USD 300 million. Brazil accounts for the largest share, followed by Chile. The average export price of frozen French fries is roughly USD 1,500 per ton FOB (Free on Board).
Rising cultivation and processing costs have nearly doubled this price over the past three years, placing Argentina among the top three countries in terms of production costs. This intensifies market dynamics: as prices rise, volumes respond almost immediately. The market is sensitive, margins are under pressure, and buyers switch quickly between suppliers. Consequently, the French fries market is becoming increasingly international. European producers, with their scale and efficient processing capacity, can compete in South America when raw material prices are low. Although distances are greater, differences in price can sway buyers. For Argentina, maintaining its role as a regional supplier is therefore not guaranteed; this demands an active strategy focused on cost control, quality, and reliability of supply.

Mercosur and the relationship with Europe

Argentina’s position should also be viewed in the context of the Mercosur agreements and its renewed rapprochement with the European Union. In December, after years of negotiations, Mercosur and the EU reached a new political agreement on a trade deal. This is intended to further liberalise trade between the two blocs. Although ratification in Europe remains uncertain and politically sensitive, the agreement signals a clear geopolitical direction, promoting increased trade and fewer barriers between South America and Europe. For the potato and French fries sector, this does not imply an immediate shift in trade flows, but it does affect competitive dynamics. Argentina focuses explicitly on “local for local” production for the South American market, with Brazil as its main outlet. At the same time, an EU–Mercosur agreement creates opportunities for European companies to strengthen their position in the Brazilian market, particularly when European potato prices are low and exports are economically attractive. This fosters greater interconnectedness of supply chains, even in the absence of large-scale potato trade between the continents.

Increasing complexity

A common thread in these developments is the increasing complexity of the supply chain. Growers and producers operate in an environment where technology, markets, and regulations are constantly evolving. Reliable knowledge of cultivation practices, varieties, and storage has therefore become a strategic asset. In a sector undergoing professionalisation, expertise is as critical as soil or water. Everything points to Argentina continuing to establish itself as a serious potato growing region, especially for processing. Not as an isolated player, but as part of a global supply chain where regions alternate as suppliers. This shift has implications that extend beyond Argentina’s borders, shaping the international potato sector as a whole.

Knowledge as a production factor

The rapid professionalisation of the Argentinian potato sector has revealed a fundamental need: reliable, accessible, and practical knowledge. Growers and traders operate in a fast-evolving environment where technology, variety choice, cultivation strategies, and storage practices are becoming increasingly complex.

“In an accelerating sector, knowledge is a production factor,” emphasises Daniel Caldiz on the importance of handbooks, such as El Manual de la Papa.

AgriCal Cono Sur, our host and travel companion on this trip through Argentina, is actively responding to this dynamic. The company focuses on knowledge transfer, guidance and innovation in the South American potato sector, working with companies both locally and internationally. One of the company’s key products is Restrain. “By making the switch to residue-free storage now, the Argentinian potato sector will soon be ready for a sector without CIPC,” emphasises co-owner Daniel Caldiz. A former professor at the University of La Plata and former McCain lead agronomist, Caldiz regards knowledge as a cornerstone of the potato sector. That is why he has undertaken the translation and update of the Potato Handbook from Aardappelwereld BV for the Spanish-speaking market, titled El Manual de la Papa.
“In an accelerating sector, knowledge is a production factor. Not only does it help increase yields, but it also allows growers to manage risks and safeguard quality. The need for standardised information grows alongside the scale and professionalism of cultivation. Knowledge is no longer a secondary concern—it is a prerequisite for the continued development of the potato chain,” the former professor explains.




Healthy seed potatoes as the backbone of Argentina’s potato sector


To understand Argentina as a potato-producing country, it is important to think of seed potatoes, not in terms of varieties or volumes, but geography. The government has designated specific seed potato areas, far from the large areas in which ware and processing potatoes are grown. Different rules apply in these zones: ware potatoes may not be grown, traffic is restricted, and all measures are designed to minimise risk. The landscape is vast and sparsely populated, and it is precisely this emptiness that serves a purpose. Here, distance is not a drawback but a deliberate line of defence.

In Argentina, seed potatoes are more than a prerequisite; they are a strategic production factor. Without healthy propagation material, the expansion of French fries, crisps, and table potato cultivation would be impossible. This is why the system is tightly structured, with clearly defined roles for the government, inspection agencies, and specialised companies.

Important role of INASE (Argentine Seed Institute) and SENSA (National Agri-Food Health and Quality Service)

Within this framework, INASE and SENASA perform complementary roles. Dutch growers will find the comparison familiar: INASE is essentially Argentina’s equivalent of the NAK. The institute is responsible for variety registration, seed potato certification, generation control, and quality classification. It determines where seed potatoes can be grown, up to which generation, and under what conditions.
SENASA performs a role similar to that of the NVWA. This agency oversees plant health, performs inspections for quarantine organisms, and is responsible for domestic transport and export certification. While INASE monitors the internal quality of the seed potatoes, SENASA focuses on risks to the wider system and international trade.
The main difference with the Netherlands lies in geographical implementation. In Argentina, these roles are reinforced through physical separation across the landscape. The government enforces distance. This makes the system less flexible, but robust.

At Diagnósticos Vegetales, health begins in the laboratory

Diagnósticos Vegetales is the linchpin of this robust system. The company operates simultaneously as a laboratory, producer, and knowledge centre; functions that are often divided among multiple parties in Europe are consolidated here. According to Ana Escarrá, this integration is essential. “Health doesn’t start in the field, but in the laboratory,” she explains. “If the propagation material is substandard, nothing further down the chain can compensate for it.”

The foundation of the seed potato chain is mini-tubers, mainly marketed as G2.

Located in a suburb of Mar del Plata, Diagnósticos Vegetales performs official testing on behalf of INASE and SENASA, using a system that relies heavily on ELISA diagnostics on tubers, which is still the official standard in Argentina. “ELISA may not be the fastest method, but it is the most reliable for certification,” says Escarrá. “That is why it remains the foundation of the system.” PCR is also used, primarily for rapid commercial analyses, but for official certification processes, ELISA underpins the system.
In addition, the company produces mini-tubers and manages an in vitro gene bank containing over 300 varieties. Many of the varieties now grown in Argentina first entered the system through Diagnósticos Vegetales. “We see ourselves as gatekeepers,” Escarrá explains. “What comes in must be clean. What leaves here determines the health of the entire sector.”

“Health doesn’t start in the field, but in the laboratory,” says Ana Escarrá.

This responsibility is reinforced by the short-generation system. In Argentina’s seed potato zones, cultivation typically extends only to G2, after which the material leaves the area for ware or processing cultivation. “Every additional field generation increases risk,” explains Escarrá. “Keeping it short is key.” Regarding variety registration on the Argentinian varieties list, she adds that since February 2025, the requirement for three years of official local field trials has been abolished. “Once submitted, a variety is now registered immediately and can be traded. The market will determine which varieties are successful. Naturally, building up sufficient seed potato stock still takes several years,” she clarifies.

Drakar keeps everything in-house

Drakar has 25,000 tonnes of storage capacity, with advanced systems for monitoring temperature, CO2 and humidity, explains Santiago Remón.

In the Tres Arroyos region of Buenos Aires Province, Drakar—the family-owned company led by Santiago Remón together with his parents, Miguel Remón and Claudia Bueno—demonstrates the extent to which a seed potato system can be developed in practice. Located within one of the designated seed potato areas, Drakar is completely vertically integrated. From in vitro propagation material and mini-tubers to field cultivation, storage, and sales, everything is handled in-house.
The scale of operations is impressive. Drakar has 25,000 tonnes of storage capacity, with advanced systems for monitoring temperature, CO2, and humidity, supplied by the Dutch company Tolsma-Grisnich. “For us, storage is not just about holding stock, but a quality tool,” says Santiago Remón. “If you lose control in storage, you lose everything you have built up in the field.”
At the front end of the chain, Drakar produces 400,000 in vitro plants and three million mini-tubers annually, using hydroponics and aeroponics systems. Simultaneously, intensive testing is carried out on new varieties. Since 2019, Drakar has operated an exclusive variety development programme based on data-driven research. Each year, more than forty varieties from Europe, North America, and other regions are tested under local conditions in Tres Arroyos and other key cultivation environments.
Only a select number of varieties progress through a highly competitive selection process to pre-commercial and commercial stages. “Our research programme follows strict protocols, generating over 10,000 data points annually,” Remón explains. “Agronomic performance, adaptability, and competitiveness are evaluated across the main cultivation environments in each region. All data are analysed by specialised teams in data management and statistics, allowing us to make evidence-based decisions at every stage of development of the different varieties. Our aim is not to have lots of varieties,” he adds, “but to deliver the right genetics for each environment, ensuring predictable results for our customers.” Remón emphasises that testing varieties is vital. “The processing industry demands greater output and speed. If you want to stay in the game, you must stay ahead.”

Satellites as a filter

At Drakar, seed potato quality is ensured long before the first seed potato goes into the ground. Even before a plot is selected for seed potato cultivation, the company analyses several years of satellite imagery. These images reveal how a field performs under varying conditions: dry years, wet years, heatwaves, and cold spells. According to Gonzalo Caldiz of Agrical Cono Sur, this approach is essential in Argentina where many growers rent land. “Satellite data allows you to detect patterns that field inspections alone could never reveal,” he explains. “You can identify inherent weaknesses, variations in water management, and areas that repeatedly experience stress. Those plots are simply unsuitable for seed potatoes.” For Remón, this data-driven approach is a deliberate choice. “Seed potatoes underpin everything we do,” he explains. “If you compromise there, it affects the entire chain. Satellite imagery allows us to pre-select plots with precision, identifying which are suitable and which are not.” For rented land, this historical perspective offers a significant advantage. Where decisions once relied mainly on experience and snapshots, Drakar can now review years of data and mitigate risks.
The satellite analysis does not end with plot selection. Remón translates the data into task maps, which guide planting density, fertilisation, and crop protection for each zone. “You can see not only whether a plot is suitable,” Caldiz explains, “but also how it should be managed. That’s the difference between average and uniform seed potatoes.” Remón adds, “Uniformity is more important to us than maximum yield. Our customers want predictability.” Combined with field inspections and subsequent drone observations, this creates a layered system where technology acts as the first line of defence. “We don’t take chances,” Remón concludes. “Data helps us make informed decisions. That’s not a luxury, rather it’s essential if you take seed potato cultivation seriously.”
Remón shares that Drakar cultivates approximately 400 hectares of seed potatoes in the seed potato region of Tres Arroyos and adjacent areas. Of these, around 30% are destined for processing potato growers and 70% for table potato growers. In total, the company supplies seed potatoes to over 200 clients, both within Argentina and for export to Paraguay, Uruguay, and Brazil. It maintains long-term relationships with producers such as McCain. “They seek certainty,” says Remón. “And that certainty starts with seed potatoes. ”Drakar is defined not just by its scale, but by its mentality. The family-owned company operates as an industrial organisation, yet retains an agricultural core deeply rooted in farming. “We are not seed potato traders,” Remón emphasises. “We are producers of health.”

Seed potatoes: the silent engine of growth

Drakar produces 400,000 in vitro plants and three million mini-tubers annually.

Together, INASE, SENASA, Diagnósticos Vegetales, Drakar and other seed potato companies demonstrate how seriously Argentina takes its potato sector. The combination of clearly demarcated seed potato zones, such as Tres Arroyos, a short-generation system, and specialised companies creates a system that may be less visible than the French fries factories, but is just as decisive. It is the silent engine driving a sector that is rapidly professionalising and becoming increasingly international.



Processing as the steering mechanism in Argentina’s potato chain


In Argentina, processing is not merely the endpoint of the potato chain; it is the mechanism that directs and structures the sector. Factories dictate volumes and specifications, but they also indirectly influence investment decisions, cultivation strategies, and how growers approach their own operations. Behind every production line is a strategy built on risk management, cost control, and forward thinking.

McCain strengthens focus on positive environmental impact and supply security

McCain has been active in Argentina for three decades, building a strong position in the French fries value chain through long-term investments, local partnerships, and a clear commitment to sustainability. Over time, the company has become a sizeable producer, supporting regional agricultural development while continuously improving environmental performance.
Maintaining a steady supply of potatoes is a key priority. McCain works closely with growers in the Balcarce region, where proximity to the processing facility allows for close collaboration and efficient logistics. Local sourcing is complemented by carefully selected regions that help balance seasonal variations, ensuring year-round production. This approach allows McCain to meet customer demand while minimising transportation distances.
According to Federico Evangelista, Senior Manager Agriculture at McCain Argentina, finding the right balance between local sourcing and diversification is crucial for long-term resilience. “Our priority is always to strengthen regional sourcing, while maintaining the flexibility to operate consistently throughout the year,” he explains. This approach reflects McCain’s broader philoso­phy of building robust, adaptable systems rooted in collaboration and local relationships.
Sustainability is deeply embedded in how McCain engages with its growers. In line with global trends in the food and agriculture sector, the company increasingly focuses on reducing environmental impact, improving resource efficiency, and promoting smarter crop management. The company translates these ambitions into practical tools that support continuous improvement in the field.
One such tool is the Environmental Impact Quotient (EIQ), which goes beyond simply measuring the volume of crop protection products used. It assesses their broader effects on human health and the environment, including soil, water, and biodiversity. Pablo Bisio, Senior Manager Agriculture at McCain Argentina, explains that the goal is not just to reduce inputs, but to use them more intelligently. “It’s about making better decisions and choosing alternatives, optimising application, and integrating various agronomic practices to reduce overall environmental impact,” he says. This approach aligns with the broader move toward smart agriculture, where technology, monitoring, and precision play increasingly important roles.

McCain has been active in Argentina since 1995 and over the past three decades has built a strong position in the French fries supply chain.

McCain’s commitment to sustainability extends beyond agricultural practices. The Balcarce plant runs on renewable electricity, reflecting the company’s wider ambition to reduce its environmental footprint across operations. Additionally, McCain Argentina has achieved B Corp certification, demonstrating its commitment to high environmental, social, and governance standards.
For Romina Varela, Agriculture Director Argentina, this milestone is a mindset rather than a final destination. “B Corp certification challenges us to keep raising the bar, not only in our own operations, but across the entire value chain, from field to final product,” she explains. This perspective reinforces McCain’s belief that long-term success depends on shared responsibility and collective progress.
Through its integrated approach, McCain shows how the role of a food producer is evolving. Beyond securing raw materials, the company aims to lead across the entire value chain, by supporting environmental stewardship, enhancing supply reliability, and contributing positively to local communities. In a market that increasingly values sustainability and transparency, this strategy provides a solid foundation for long-term continuity and shared value creation.
Other French fries producers operating in Argentina include Lamb Weston, which recently opened a new factory in Mar del Plata, in the heart of the Buenos Aires potato production region in Argentina, from which most of its supply comes. The other French fries producer is Simplot, which operates a factory in the western province of Mendoza, where it also grows some of its potatoes. These three main French fries producers handle nearly 700,000 tons of raw potatoes annually, primarily of the Innovator, Daisy, and several Russet-type varieties.

El Parque Papas: nearly 25 years of shaping sustainable potato cultivation

The way McCain approaches sustainability aligns closely with broader market developments, share Pablo Bisio, Romina Varela and Federico Evangelista (left to right).

When entering the El Parque Papas facilities in Otamendi, it immediately becomes clear that nothing is left to chance. Everything is clean, well-organised, and professionally arranged. Machines are lined up as if they have just arrived from the factory, storage areas are logically separated, and processes are tightly controlled. “Order and discipline are central to our approach,” says Walter Hernández. “They are the foundation of quality.” This mindset is typical of a company that has evolved over more than two decades from a regional grower into a fully integrated potato operation.
El Parque Papas began in 2002 with 50 hectares of processing potatoes. Growth was steady and carefully planned. In 2006, the company built its first Tolsma bulk storage facility for 5,500 tonnes, expanding to 11,000 tonnes in 2009. Early on, the company embraced technology: in 2008, Trimble GPS autopilots were introduced and fully integrated into the harvest. In 2010, El Parque Papas made a conscious decision to produce its own seed potatoes, housed in a physically separated area, far away from ware potatoes. “Seed potatoes require a different discipline,” Hernández explains. “That’s why we keep plots, storage, and machinery fully segregated.”

Multiple regions

When entering the El Parque Papas facilities in Otamendi, it immediately becomes clear that nothing is left to chance .
PepsiCo requires 50,000 tonnes of potatoes annually to supply the local market.

Today, El Parque Papas produces more than 750 hectares of table potatoes and 250 hectares of seed potatoes, spread across multiple regions, including Tres Arroyos (seed potatoes), Lobería, and Otamendi (ware potatoes). The company serves three markets simultaneously: crisps, French fries, and the fresh market. This requires a broad portfolio of varieties. El Parque Papas grows over ten varieties, several of which it holds exclusive rights to in Argentina. For crisps, these include FL2312, FL1867, VR808, FL2215 and Atlantic; for fries, Innovator, Daisy, and Donata, and for the fresh market, Sagitta, Spunta, Daisy, and Donata. Intensive variety trials are also underway with Etana, Melanie, and Virginia, while varieties such as Islara, Calisto, Kerren, Saratoga Russet, and Theda are undergoing the registration process. The company works closely with the German trading house Europlant to market its varieties across Argentina.

“If you want to supply all year round, you need to have everything under control,” says Walter Hernández.

The infrastructure is designed for year-round supply. For the crisps industry, El Parque Papas operates ten bulk storage cells of 1,200 tonnes each, while 6,000 tonnes of seed potatoes are stored separately in crates. Here, storage is not just storage, rather an extension of cultivation. “If you want to supply year-round, you have to have everything under control,” says Hernández. All potatoes supplied to PepsiCo, which requires 50,000 tonnes annually (of which Hernández supplies around 21,000 tonnes), leave the farm washed ready for immediate use.
The same focus on control is evident in El Parque Papas’ sustainability strategy, developed over the years in close collaboration with PepsiCo. In 2007, the company opted for energy-efficient warehouse construction. By 2010, it began its journey toward GLOBALG.A.P. certification. In 2016, a washing line with water reuse via settling basins was installed. Subsequent years saw the implementation of variable fertilisation, drip irrigation, and the validation of regenerative agricultural practices, such as multifunctional landscapes and reforestation. Since 2024, El Parque Papas has actively measured its carbon footprint using the Puma calculator, certified by Control Union. Solar panels now supply part of the company’s energy needs. In 2026, a new project with BioRed and AgroDesign will focus on rotations with green manures and the expansion of biodiversity zones. “Sustainability is not a marketing gimmick for us,” Hernández emphasises. “It is the only way to continue producing in the long term.”
What truly gives El Parque Papas a competitive edge is the integrated development of cultivation, seed potatoes, storage, processing, sustainability, and human capital. Social and ecological responsibility are explicit parts of the growth strategy. “We want to grow, but only if we maintain control,” Hernández summarises. “Control over quality, risks, and our impact.” By focusing on maximum control rather than maximum scale, El Parque Papas demonstrates how a South American potato company can become a benchmark across multiple sales outlets.
Following the visit to El Parque Papas, Guillermo Cascardo, PepsiCo Agricultural Director in Argentina, introduced the other growers who cultivate for PepsiCo in the country. He emphasised the company’s strong commitment to sustainability across the entire supply chain, stressing that knowledge development and long-term relationships form the foundation of a strong and reliable potato supply chain.

Mendoza: the Idaho of South America

The landscape in Mendoza is dry and expansive, with sandy soil plots, intense sunlight and clear skies.

Driving through the potato-growing region around Pareditas, in the Uco Valley of Mendoza, feels more like the western United States than South America. The landscape is dry and expansive, with sandy soil plots, intense sunlight, and clear skies. Daytime temperatures soar, while nights remain remarkably cool. This combination of warm days and cold nights is ideal for good tuber formation and contributes to consistent potato quality. It is no coincidence that growers and producers often compare Mendoza to Idaho, the heart of the American potato industry.
The comparison extends beyond climate. With annual rainfall of only 200 to 300 millimetres, potato cultivation here is entirely dependent on irrigation. Water is not just a production factor but a prerequisite for production. Without irrigation, potato farming is impossible. Water rights dictate who can and cannot grow, making land with these rights scarce and expensive. At the same time, the climate carries risks: sudden summer hailstorms can inflict severe damage to crops in minutes. These conditions demand robust varieties and a professionally designed cultivation system.
Mendoza is also a key region for garlic cultivation, a highly profitable crop that competes for the same plots and water rights. Additionally, the area is recognised globally for its viticulture, although the wine sector faces pressure from declining global demand. In this competitive environment, potato cultivation must prove itself as a stable and profitable alternative.
Mendoza has therefore developed into a regional production hub, based on American agriculture: large-scale, technologically advanced, and highly integrated. The comparison with Idaho is not a marketing tactic, but a deliberate strategic choice. The interplay of climate, water management, and logistics makes Mendoza a unique environment for potato cultivation, where Simplot actively operates.

Kurmay SA: growth through higher yields

At potato producer Kurmay SA, manager Mariano Fiorentino and young agronomist Emiliano Garcia explain that their focus is on yield per hectare, not rapid acreage growth.

At potato growing company Kurmay SA, Head of Agronomy Mariano Fiorentino makes it clear that the focus is on yield per hectare rather than rapid expansion of acreage. “We aim for yields of around 80 tonnes per hectare, not more hectares,” he states bluntly. To spread the risk, Kurmay grows not only in Mendoza but also on approximately 100 hectares in Córdoba.
“Currently, we are farming five 50-hectare pivots in Mendoza, but our ultimate goal is 1,000 hectares of potato production,” Fiorentino continues. This is achievable because the farm owns 10,000 hectares of land, much of which still needs to be cultivated. Crucially, these plots must have the required water rights. Fiorentino regards water as the key to controlled growth: “Without water there are no potatoes; without control there is no future.” One of the main challenges of growing on these light soils is nematodes. Through broad crop rotation of one in five for potatoes and improvements in soil fertility, Fiorentino aims to keep this risk under control.
Storage is the next step in increasing flexibility and reducing reliance on immediate sales. While the farm currently focuses on the Innovator variety, Fiorentino has high expectations for Donata to achieve yield targets. Early field results are promising: after 100 days of growth, yields already show strong potential, suggesting that the target of 80 tonnes per hectare is well within reach by 130 days.

Gastón Viani: arithmetic, learning and targeted cultivation

“With new varieties and optimised cultivation, yields can reach 65 tonnes per hectare,” potato grower Gastón Viani is convinced.

At Gastón Viani’s company, Potato Growers, everything revolves around control. With 420 hectares of potatoes, the operation is large, but what stands out is Viani’s meticulous management approach. Most of the crop is grown in the SEBA region under contract for processing, with a smaller portion dedicated to table potatoes. The choice of varieties reflects this focus: Daisy, King Russet, Atlantic (also specifically for chips), Donata, Innovator, and Spunta form the backbone of the company’s cultivation plan. Each variety has a specific role in the chain, tailored to processing requirements and contract conditions.
The crop rotation follows a 1-in-6 system, allowing for soil recovery and effective disease management. Research is also an integral part of the operation. “We don’t just grow potatoes,” Viani explains. “Part of our business is dedicated to research. We conduct various trials for companies, including testing fungicides, insecticides, and fertilisers.” These research activities generate more than additional revenue, they provide valuable insights into crop management and innovative tools for protecting the crop, not only against pests and diseases, but also in terms of nutrition and cultivation techniques. “It’s a win-win: you earn money and gain knowledge.”
This knowledge translates directly into decisions in the field. Viani tracks costs in detail, using them as the basis for every decision. Contract prices range from 28 to 32 dollar cents per kilogram, depending on variety, quality, and delivery, leaving narrow margins. Land rental costs are high, between $1,200 and $1,500 per hectare, and seed potatoes account for 15–20% of the cost. For French fry varieties, seed potatoes can reach $65 per 100 kilograms. “Every hectare has to be right,” he says matter-of-factly. Average yields range from 48 to 52 tonnes per hectare, consistent with stable contract cultivation, yet Viani sees room for growth. “With new varieties and optimised cultivation, yields can reach 65 tonnes per hectare, that difference is economically significant.” To achieve this, Viani invests in technology that prevents yield losses. Drones, for example, are used for crop protection, reducing structural damage and tractor marks caused by heavy machinery driving through the crops, which he calculates adds approximately 6% to yields. “At these prices, six percent is significant,” he notes. “It’s the difference between a good year and a bad year.”
Viani maintains a close working relationship with McCain, operating under annual contracts that are renegotiated each season. He would prefer multi-year contracts: “Long-term contracts provide security. You know where you stand and can plan investments in technology, irrigation, and knowledge more effectively.” At the same time, he recognises the industry’s need for flexibility in a dynamic market. Viani exemplifies a new generation of processing potato growers in Argentina: entrepreneurs who perform meticulous calculations, leverage technology to minimise risks, and actively use knowledge as a production factor. His company is no longer a traditional farm but a hybrid of production and research, fully embedded in the framework of the processing industry.



Table potatoes: a market of loose kilos, brands and quality


In Buenos Aires, potatoes are typically sold loose, by the kilo rather than in small consumer packs, and they are displayed in large crates in local shops and market stalls. The streetscape is defined by corner greengrocers, specialised verdulerias and wholesale markets where daily volumes are traded. Pre-packed potatoes are still in their infancy. While net bags are occasionally available, the vast majority of potatoes are still sold loose.

The loose market consists of two main categories: Papa Blanca (washed potatoes) and Papa Cepillada (brushed, unwashed potatoes). The price difference between the two is substantial and varies widely by location. In small urban shops, washed potatoes sell for around 1,900 pesos per kilo—just over one euro—while unwashed potatoes are priced at roughly 800 pesos per kilo. In higher-end supermarkets, such as Jumbo, prices for all categories are approximately double. As a result, potatoes function both as a basic commodity and as a value-added product, depending on where and how they are sold.
Potato consumption in Argentina averages around 50 kilos per capita. This is relatively low, especially compared to neighbouring Peru, the birthplace of the potato, where consumption reaches approximately 90 kilos per person. This suggests potential for growth in the Argentine table potato market, although future expansion is likely to come from improvements in quality, convenience, and taste, rather than from increased volume.

Papas Las Nazarenas chooses quality as its brand strategy

Small pre-packed potatoes are still in their infancy in Argentina. Most table potatoes are sold loose.

This approach becomes evident at Papas Las Nazarenas, the company of the Martos family, consisting of brothers Rafael and Sebastian, and their father Walter. Upon arrival, a fully loaded truck stands ready for dispatch to a customer in Paraguay. Export is part of the business model, alongside deliveries to the Mercado Central de Buenos Aires and other markets across Buenos Aires province, as well as Córdoba and Santa Fé. Papas Las Nazarenas therefore operates on a regional scale, with a clear cross-border perspective.

“If the quality is right, the customers will do the talking,” says Rafael Martos.

The Martos family distinguish themselves by their deliberate focus on market differentiation. They supply potatoes under their own brand, focusing on papa cepillada—brushed potatoes. In the processing area, a semi-automatic Manter packing line weighs the potatoes before they are manually placed into standard 20-kilogram bags. The packaging is consis­tent and clearly branded, while marke­ting remains understated, relying largely on word-of-mouth. “If the quality is right, the customers will do the talking,” Walter Martos says.
That quality starts in the field. The farm grows ten varieties, with Spunta still accounting for the largest share, while Sagitta is steadily gaining ground. The farm also actively trials new varieties from HZPC, including Quintera, Invictus, Farida, Sababa, Travolta, Cardyma, and Challenger. Martos explains the reason for this: “Spunta potatoes fry well soon after they are harvested, but later in the season, they darken too quickly.” His ambition is to supply potatoes that fry well at home year-round, combining processing performance with flavour.

In the Martos family’s processing area, a semi-automatic Manter packing line is in operation.

To enable that year-round supply, Papas Las Nazarenas operates five storage cells of 500 tons each, totalling 2,500 tons. The farm avoids using CIPC to keep the cells clean; instead, Martos tests Restrain, a product which keeps potatoes dormant without residue build-up. While year-round supply from the land is theoretically possible, quality takes precedence over quantity. Storage is therefore not just a buffer, but a tool to maintain quality.
Cultivation is meticulously organised. Six central pivots, ranging from 40 to 60 hectares each, are used, following a 1-in-7 potato rotation. Farming takes place partly on their own land, aiming for the broadest possible crop rotation. The farm operates on 1,000 hectares of its own agricultural land, and rents 2,000 hectares. As well as potatoes, the family grows other crops, such as wheat, sunflower, soy, and barley. Crop diversification and rotation are deliberate strategies, particularly in a market with rising agricultural land prices, ensuring both efficient land use and soil health.
Pressure in cultivation is mounting. Alternaria is becoming an ever greater challenge, requiring more accurate crop protection. This season was late, providing some support to prices, while last year, despite excellent agronomic conditions, incomes suffered due to overproduction. “This is a major concern for our sector,” explains Alfredo Pereyra, President of the Federación Nacional de Productores de Papa. It underscores how volatile the market is, he adds. The soils around Balcarce, with their high organic matter content, offer a solid foundation, but without proper management they do not guarantee stable returns for growers.

Walter Hernández delivers washed table potatoes in the premium segment

Walter Hernández and his son Francisco supply both washed table potatoes and potatoes for the crisp industry.

Alongside Papas Las Nazarenas, Walter Hernández of El Parque Papas is a key supplier in the higher-end segment of the table potato market. Hernández supplies washed table potatoes, a category that commands higher prices and serves a different type of customer. The focus is on consistent quality, uniformly sized potatoes, and reliable delivery. The next generation is already involved: his son, Francisco Hernández, actively contributes to further professionalisation and market strategy.
Hernández serves some of the same markets as the Martos family but deliberately chooses a different positioning. While Papas Las Nazarenas focuses on brushed potatoes under its own brand, Hernández targets the premium segment of washed potatoes, where consumers are willing to pay more for appearance and convenience. This illustrates that the Argentine table potato market has room for market segmentation.

Table Potatoes: between tradition and innovation

The Argentine table potato market, still the largest domestic market, remains deeply traditional: with sales of loose potatoes, numerous small shops and markets, and few pre-packaged products. At the same time, demand is rising for distinction, quality and improved variety characteristics. Companies like Papas Las Nazarenas and El Parque Papas demonstrate that there is ample opportunity in this market for branding, variety innovation, and storage technology. The challenge is not to increase volume but to increase value per kilo.

Argentina: between ambition and resilience

The journey through the Argentine potato sector reveals a sector in transition, rather than one that has reached full maturity. Signs of professionalisation are visible across cultivation, processing, and seed potato production, yet these developments come with clear vulnerabilities. Diseases such as Alternaria and Verticillium are on the rise, water availability is a limiting factor in many regions, and the climate makes yields less predictable. High investments in storage, technology, and irrigation place pressure on production costs, while margins in both the processing potato and table potato markets remain tight.
Sales bring their own set of challenges. Argentina’s French fries industry primarily follows a local-for-local model, with Brazil as a key market. However, this strategy is under pressure when European French fry producers enter the same market in years of low potato prices, revealing the supply chain’s vulnerability to international price fluctuations. The domestic table potato market offers opportunities for differentiation and quality, but consumption per capita remains low, and prices vary widely across channels.
In this context, seed potatoes, knowledge, and organisation become decisive factors. They do not guarantee success, but are essential for keeping risks manageable. Argentina is therefore not evolving into a problem-free competitor, but into a country that learns to manage complexity. This is precisely where the sector’s value to Europe lies: not as a blueprint, but as a practical example of how a potato industry develops under the combined pressures of climate, market, and global competition. ●

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