Southern Russian regions, including Kabardino-Balkaria, Stavropol, and Krasnodar, have begun selective harvesting of early potatoes. However, farmers report disappointing prices—just 50–60 RUB/kg ($0.55–0.65/kg), far below expectations. According to Alexei Krasilnikov, Executive Director of the Russian Potato Union, rising labor costs (up 2–3x from 2023 due to worker shortages) have made early potato cultivation expensive.
Retailers Favor Pre-Paid Imports Over Local Produce
Despite domestic supply, retailers are prioritizing imported potatoes, having already secured contracts and paid advances. Krasilnikov explains that last year’s shortage of premium potatoes led to large import orders, particularly from Egypt and China. China has aggressively expanded into Far East and Siberian markets, with total imports potentially nearing 1.5 million tons—matching the record set during the 2010/11 drought season.
Production Expansion vs. Seed Shortages
The Ministry of Agriculture plans to increase potato planting areas by 10,000+ hectares (to 290,000 ha), targeting a 7.5 million-ton harvest (vs. 7.3 million tons in 2024). However, farmers face a critical shortage of high-quality seed potatoes, especially for processing (fries, chips). Last year, 290 tons of German seed potatoes were imported, but this year, regulatory hurdles may block shipments entirely. This scarcity has driven up seed prices, squeezing farmers further.
A Crisis for Early Potato Growers
With low prices, high costs, and import competition, early potato farming is becoming unsustainable. Many growers may shift to other crops, risking long-term domestic supply instability. Without policy adjustments—such as import restrictions or subsidies—Russia’s potato sector could face deeper challenges.
