TRADE AND MARKET I NG Processing industry should open up the potato sector of Argentina TRADITIONAL TABLE POTATO MARKET With 1.8 million tons, the table potato market is the biggest potato market in Argentina. However, this market is still a totally traditional one. The largest proportion is packed in 20 or 25 kilogram bags as the consumer mainly buys his potatoes unpackaged. Currently, only 5 percent of the market consists of small, packaged products, mostly in small net bags. A company that would like to respond to this new demand is Nesmaral of the Hernández family in Otamendi. This family, consisting of father Emilio and sons Alberto and Adrian, packages nearly 20,000 tons of potatoes. Most of the potato varieties, including Spunta, Innovator, Asterix, Agata, Sagitta and Daisy are grown by the family on 400 hectares. In addition, they also grow 30 hectares of seed for their own use. Alberto attended both tours to the Netherlands organised by the GITAHpapa project. During these trips, he discovered the Manter company in the town of Emmen. Once back in Argentina, the family decided to invest in a packaging machine and a weighing machine. This investment immediately saved the company over 11 percent on imputed costs, especially labour costs. Due to the big success of these machines, already after three months, Nesmaral decided to buy a big A very important sales channel for the Argentinian table potato market is the Mercado Central in the capital Buenos Aires. 14-bin weigher with packagers. They first worked with 23 people in the packaging hall, now with only thirteen. The weighing results are also much more accurate now and that also contributes to better returns, Alberto emphasises. Alberto (l) and Emilio Hernández can respond to the developments in the market flexibly. Own storage brings more flexibility As the company also owns a 2,400-ton, mechanically-cooled storehouse, the family can supply potatoes for nine months of the year. From March onward, when the hottest period in the area is over, Nesmaral keeps a part of the harvest in storage. That’s why the company can gear to the demand in the market after the harvest, or in periods when it´s raining too hard for harvesting, and so profit from the highest prices. And this is very necessary, because cultivating a hectare of potatoes costs Hernández 8,000 dollars. From December to July, the company delivers 18,000 bags every week. Of these potatoes, 80 percent goes to the Mercado Central wholesale market in Buenos Aires and the remaining 20 percent to various supermarkets. Because Nesmaral washes the typical, black potatoes from the SEBA region, the company can sell at a better price than the growers that are not in the position to do this. Looking at the future, Hernández wants to improve his cultivation and storage processes. For example, next year they’re going to invest in boxes. This will improve the logistics from storage to packaging hall and ensure less loss of quality in the storehouse. The family also has an electronic grading machine on its wish-list. Mercado Central is an important sales channel A very important sales channel for the Argentinian table potato market is the Mercado Central in the capital Buenos Aires. The local shopkeepers buy their fresh produce there every day, including potatoes. Given the high annual consumption of the inhabitants of Argentina, the wholesale market is provided with a large number of sales points specialised in potatoes. Lorries drive to and fro to transport the products to the city and its surrounding area. In addition to providing local shops, the wholesale market also provides local hotels and restaurants with most of their produce. The local restaurants don’t really use processed potato products, they usually freshly prepare their chips themselves. Potato World 2016 • number 4 21 Pagina 20
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