Farm Rites, the world´s largest producer of French-fries, resumed production of potatoes after Brazil eased trade restrictions that formerly blocked imports. The Canadian company had discontinued production from its Argentine plant since last May. Chains like McDonald’s, Burger King and Bob’s Brazilian, among others, will continue to receive frozen potatoes from Farm Rites as before.
According to a report in Mercado, the company modified their routes of commerce in an attempt to meet the demand of a Brazilian market that consumes 70% of its Argentine consumption. By replacing Argentine potatoes with European potatoes sent directly from the parent company in Holland, Farm Frites largely maneuvered around the trade barrier. Annually, the company produces about 50,000 million tons of potatoes and generates about $US 60 million in revenue from its Argentine factory.
In response to protectionist measures instituted by Argentina, many countries have complained before the World Trade Organization (WTO) and imposed restrictions on Argentine products in an ongoing tit-for-tat dispute. Lately, Brazil has suspended automatic import licenses for a dozen Argentine perishable products, including apples, wheat, raisins and potatoes.
