Operational Barriers in the Potato Supply Chain: Shrinkage and Packaging Practices at the Lima Wholesale Market, Peru

In Latin America and the Caribbean, around 300 wholesale food markets play an essential role in food distribution and retail price regulation. In Lima, the Lima Wholesale Market (Gran Mercado Mayorista de Lima, GMML), known as the Santa Anita Market, concentrates most of the potato (Solanum tuberosum L.) supply, making it essential for the distribution of this tuber in the country’s main city. Potatoes are among the most widely consumed foods in Peru, and the Huánuco region is one of the country’s main potato-producing areas. In this region, which is the main supplier of potatoes to the GMML, production is managed mostly by small producers who face difficulties in meeting standards and negotiating with wholesalers. This has led to unfair trade practices that affect many potato farmers in the region. This study explores the factors and barriers affecting the potato supply chain. Using a qualitative approach, 90 surveys and three in-depth interviews were conducted with potato producers, together with an extensive documentary review, to collect relevant information about their processes. The analysis showed that the handling of potato sacks and associated shrinkage are important problems in the GMML. This research also provides information on the dynamics of GMML wholesalers, highlighting their importance in the food supply of the city of Lima. Although wholesalers are not directly involved in reducing shrinkage, their role in the food supply chain is crucial for guaranteeing supply to final consumers. The findings of this study could motivate decision-makers and policymakers to improve conditions for wholesalers and, consequently, improve the potato supply chain.