Potato prices increase in Russia, opening doors for imports in the coming months

Published 2021년 5월 4일

The third-largest potato-producing country in the world witnessed a fall in production during 2020. The main reason for falling production was late frosts, waterlogging, and above all, abnormally high temperatures. As a result, domestic potato prices in Russia were inflated. To curtail the shortage, Russia is expected to import more potatoes from countries like Egypt, Iran, Pakistan, and China.

Russia is amongst the top potato-producing countries globally and is ranked as the third-largest potato producer in the world after China and India. The country produced 22.07 million tonnes of potatoes during the year 2018-2019 across 1.2 million hectares. The average annual volume of potatoes used for consumption purposes in Russia is projected to be around 13-14 million tons per year. An average Russian consumes a hearty 130 kg of potatoes a year, making it one of Russia’s most important crops.

In Russia, the industrial cultivation area for potato production fell by 8% in 2020, compared to 2019.The production volume has also decreased by 13.2% from the previous season The unsuitable weather conditions have also reduced the quality of the potatoes and rendered them unfit for consumption. Since the start of autumn 2020, potato producers in the main potato regions of Russia have been facing many challenges. The weather conditions have been such that the production has been severely impacted by the late frosts, waterlogging, abnormally high temperatures.

A fall in production has created a shortage in the potato market of Russia, resulting in increased prices. According to Anastasia Shilyaeva, Regional Manager at Tridge in Russia, domestic potato prices in Russia were 83% higher than the previous year’s prices. The unfavorable potato-producing conditions decreased the potato yield by approximately 50% in all major production regions of Russia. In general, wholesale buyers report a shortage of high-quality products, and prices for Russian potatoes have spiked up significantly in the last few weeks.

Egypt is one of the largest sources for importing potatoes for Russia as the country had a share of about two-thirds of the total volume of potato imports in the 2019/20 season.As the production falls and the prices shoot up in the domestic markets, it is expected that Russia will increase the volume of potato imports this year. Egypt’s potato production is has started positively and the volumes of potatoes harvested are more in comparison to the previous season. It was seen that the active import of Egyptian potatoes to Russia in 2021 began about two weeks earlier than in comparison to the last season. Other countries which can capture the Russian potato exports amidst inflating domestic prices are Iran, Pakistan, and China.

Sources

Agroberichten Buitenland. “Russian potato sector faces price increase and lack of high quality seeds.”

FAOSTAT. Potato Production.

Potato Pro. “The 2020 Potato Harvest in Various Regions of Russia.”

Tridge. Local Insights. “Potato price in Russia hit the highest point.”

Tridge.Tridge Analysis. "Egypt Set For Strong Seed Potato Season"