Simplot is moving ahead with a significant expansion of its potato processing operations in Mendoza, following meetings between company executives, Governor Rodolfo Suarez and the province’s economic leadership. The development focuses on increasing capacity at the company’s Luján de Cuyo plant and strengthening the reliability of local raw-material supply.

Provincial officials said the company has outlined a two-phase growth strategy. The first stage requires securing additional energy for agricultural operations in the Pareditas area, where water wells used for crop development depend on an energy supply that remains insufficient for scaling production.

The second phase involves extending the potato production cycle within the province. Until structural challenges in Pareditas are resolved, the company may be forced to supplement its supply with potatoes transported from Buenos Aires—an option described during discussions as “very expensive” and involving “a lower quality potato.”

Mendoza’s Economy Minister Enrique Vaquié said: “During this transition, we are exploring what we can do despite the higher cost of transporting potatoes from Buenos Aires. We have requested figures regarding freight, production costs, and so on, to see if we can find solutions for that aspect.” He added that the government continues to work toward establishing a potato cluster in the Uco Valley through the Mendoza Activa 4 programme and with the support of new producers.

“If we secure the energy, these new producers will be able to use it with the quality standards the company requires. That’s another element that would complement the two previous ones we’ve been working on with them,” Vaquié said.

Simplot’s Argentina plant is located on Route 7 near kilometre 397. As part of the planned expansion, the company intends to develop 1,800 hectares of potato crops in Pareditas, San Carlos, and collaborate with third-party growers to improve farming techniques and water-use efficiency.