Our view on the new industrial potato season.

The global processing-potato industry arrives at the 2026/27 season with favorable prospects, though within a considerably more demanding environment. Consumption keeps growing alongside food-service chains, urbanization and a greater presence of frozen foods in households. At the same time, processing capacity has expanded across several regions, and that forces the whole chain to work with greater precision on costs, quality and planning.

For many years, Europe and North America concentrated much of the world's production and trade. But that map is beginning to change. Asia, North Africa and South America have been gaining share, while the industry works to bring its plants closer to consumer markets. Producing regionally makes it possible to reduce freight, shorten logistics cycles and lower exposure to trade crises or supply-chain disruptions.

South America stands out in this process as a region with strong possibilities. Brazil combines scale, an extensive food-service network and consumption that still has room to grow. Argentina, in turn, has productive experience, a diversity of environments and proximity to the main markets of the Southern Cone. The investments made over the last few years strengthened industrial capacity and widened the potential demand for raw material.

That opportunity, however, should not be read as an invitation to grow in just any way. The industry's expansion also increases competition for land suited to the crop, water, seed, irrigation equipment, contractors, machinery and human talent. The plant needs volume, but above all it needs predictability. Dry matter, size, color, health and delivery date matter as much as the tons harvested.

We have learned, from our own experience, that a ton produced is not always a commercial ton. Also that increasing acreage before consolidating teams, logistics and processes can create more difficulties than advantages. Processing potato requires a significant investment, constant monitoring and the ability to make decisions at very specific moments. A delay in planting, in irrigation, in an application or in the harvest can affect the outcome of the entire season.

That is why, during 2026/27, the contract will matter as much as the price. It will be necessary to clearly understand the committed volumes, the quality specifications, the bonuses and discounts, the seed supply, the delivery windows, the storage conditions and the distribution of risks. A good value per ton can lose its appeal if unforeseen costs appear, if storage is prolonged or if part of the production fails to meet the required parameters.

Climate will be another decisive factor. The possibility of a cycle under the influence of El Niño could improve water availability in some areas, but also raise the risks of water excess, disease and operational difficulties. In the southeast of Buenos Aires province, a spring or a summer that is too wet can complicate access to the plots and delay the harvest. In irrigated areas, water availability, temperatures and the timing of each task will remain central.

Experience has also shown us that a rainy year is not necessarily a good year. How much it rains matters, but so does when it rains, over what type of soil and in what state it finds the crop. Drainage capacity, infrastructure and the speed to respond mark the differences between producers.

The Argentine macroeconomy could offer somewhat more predictable conditions than in previous seasons. Lower inflation, falling interest rates and a degree of exchange-rate stability would make planning easier. Even so, potato production requires financing rents, seed, fertilizers, crop-protection products, irrigation, fuel, machinery and labor over many months. Even in a more stable economy, working capital will remain one of the main challenges.

Added to this will be the 2027 electoral process, which may bring exchange-rate volatility, greater banking caution and the postponement of some decisions. In that context, financial management will be almost as important as agronomy. Liquidity will have to be looked after, mismatches between costs and income avoided, and financial terms kept in step with the real timelines of the crop.

The most likely scenario appears to be one of rising demand, though with margins that will have to be built with ever greater efficiency. Those with good information, consolidated teams, access to water, financial capacity and stable contractual relationships will be better prepared. For the rest, the risk will lie in taking on commitments beyond their operational or financial capacity.

At Landkraft we believe that an important part of these challenges must be addressed by sharing knowledge. That is why we plan to launch a space meant to gather experiences, spread good practices and offer support to our production partners. The idea is not to present single recipes, because each area and each establishment has its own particularities, but to share what we have learned and make it easier to access tools that lead to better decisions made together. Always with the goal of caring for and making the most of the potential of each soil, the most suitable rotations and the time each one needs.

The 2026/27 season may mark a new stage for processing potato in Argentina. There are investments, nearby markets, agronomic knowledge and producers with a drive to grow. Our challenge will be to do it with prudence, strengthening processes before hectares and understanding that, in an increasingly professional chain, trust is built by delivering quality and honoring commitments.

Santiago Lucero Torres President of Landkraft S.A.