In contrast with the instability currently affecting potatoes for the processing industry, potatoes from Cartagena are in excellent condition, with high-quality production and development that is even ahead of the usual schedule. “The early areas of the Campo de Cartagena have been planted well and everything indicates that they will arrive in good condition by the end of April or the beginning of May,” explains the executive Javier Amutio.
The evolution of this area contrasts with other producing regions where rain and storms have caused delays in planting or difficulties in crop development, as has occurred in parts of Andalusia.
50% reduction in contracts for industry
The Basque company, one of the historical operators in Spain’s potato sector with production activity in different areas of the country, is approaching the new campaign with caution. The company has decided to reduce its contracts with the processing industry by around 50%, a decision driven by the strong volatility currently affecting the market.
According to Amutio, the processing industry has experienced significant growth over the last three or four years, particularly in segments such as frozen potatoes, chips and processed products. However, this trend has recently slowed. “The industry had made important growth forecasts, and now that growth is not taking place. Part of the product that was intended for that channel is not being absorbed,” he explains.
This situation creates an imbalance that affects the entire chain, from the producer to the packer. When expected volumes are not met, companies must turn to the open market to fulfil contracts or adjust purchases, introducing further uncertainty in costs and campaign planning.
Green-skin potatoes lose profitability
In this context of market changes and adjustments in commercial strategies, the sector is also observing how certain segments are losing economic attractiveness. This is the case for green-skin potatoes, which according to the executive are no longer profitable under current market conditions.
Rising costs and price volatility are making it increasingly difficult to maintain certain production models that depend on very tight margins.
A market shaped by consumption and logistics
Beyond the evolution of the campaign itself, Amutio emphasises that the potato sector faces structural challenges. One of them is the continued decline in per capita consumption in Spain, which has been falling for years. Part of the sales has shifted towards large-scale retail, but overall consumption has not increased.
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Another factor gaining importance is logistics, whose impact on the final price of the product is becoming increasingly significant. Higher transport costs, the shortage of drivers and the concentration of the logistics sector are modifying the cost balance of basic products such as potatoes.
“Location and logistics capacity will become increasingly important. In a product like potatoes, which has a relatively low value, transport costs have a major influence,” he explains.
Control from origin to destination
Faced with this scenario, Amutio maintains its strategy based on controlling the entire process from origin to final destination, including the sale of seed to farmers, varietal advisory services and product management across different channels: retail, wholesale, horeca and processing. The company marketed around 71 million kilos of potatoes last year.
