Peru is experiencing a potato surplus that has increased prices to 50-60 cents per kilo, but profitability remains an issue. Market saturation in cities like Lima forces many farmers to discard excess product due to spoilage and low demand. This crisis extends to various vegetables, prompting calls for crop diversification and better market planning.
Recent fluctuations in potato prices in Peru have seen them rise to 50-60 cents per kilo from an earlier range of 30-40 cents, yet farmers still struggle with profitability. The oversupply in markets, particularly in Lima, highlights a significant national issue. “The entire region is affected; there is nowhere to take so many potatoes. In Lima they no longer want them because the markets are full,” states Salcedo.
Economic challenges are not limited to price reductions but also lead to substantial food waste and economic hardship. “Last month we threw away and gave away potatoes because nobody wanted them. If they are not sold in two or three days, they go bad and have to be sold at auction for 20 or 30 cents,” says Salcedo. Additionally, adverse weather conditions, including increased humidity and rainfall, exacerbate spoilage, forcing traders to sell produce at significantly reduced prices.
Beyond potatoes, other crops are equally affected, with prices in decline. Dominga Pablo from the Puelles Collection Centre reports steep price drops for vegetables like cabbage, squash, and rocoto. “A month ago, a sack of cabbage cost 60 soles; now it is 35. Red pepper has dropped from 3 soles per kilo to just 80 cents,” she notes. Producers continue to face high transportation and fertilizer costs amid these price declines, questioning the sustainability of their practices. “Fertilizer is expensive, but our products are cheap. It is not enough for the farmer,” adds Pablo.
Farmers in various regions, including Huánuco and Ayacucho, confront similar difficulties where market prices do not cover production costs. The agricultural community has begun advocating for solutions such as diversified crops, improved market planning, and strategies aimed at balancing supply and demand to mitigate these challenges and improve conditions for farmers.
The potato surplus in Peru has led to rising prices yet continues to impede farmer profitability due to market saturation and spoilage. Widespread food waste exacerbates economic strain, as crop prices plummet across various agricultural products. Farmers are now urging for strategic interventions to restore balance and ensure economic viability within the agricultural sector.
Original Source: www.freshplaza.com