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Russia’s 20 Billion Ruble French Fry Gambit: Vertical Integration and the Race for Processing Potato Sovereignty

by T.G. Lynn
20.02.2026
in Company, News
A A
Russia’s 20 Billion Ruble French Fry Gambit: Vertical Integration and the Race for Processing Potato Sovereignty

For agricultural professionals tracking the global shift toward food self-sufficiency, the joint venture between fast-food chain “Vkusno — i tochka” and agri-holding Miratorg represents one of the most ambitious import substitution projects in modern Russian agriculture. The Grand Fries processing plant in the Oryol region, scheduled for completion by autumn 2026 with investments reaching 20 billion rubles, is designed to produce not only french fries but also potato flakes and starch, aiming to cover “practically all of Russia’s demand for french fries”—including for competitors—with potential export capacity . This strategic initiative directly addresses the supply chain vulnerabilities exposed in 2022 following the transition from McDonald’s, but it operates within a complex agricultural reality: the plant’s planned annual processing capacity of approximately 135,000-200,000 tonnes of raw potatoes depends entirely on addressing a foundational deficit in the agricultural base .

The project’s significance extends far beyond factory construction, revealing the deep challenges of building a processing industry without genetic independence. Russia’s seed potato imports from unfriendly countries have been reduced to 10,000 tonnes for 2026 (down from 12,000 tonnes in 2025), following a staggering 93.1% year-on-year decline in imports during 2024 to just 770 tonnes . The varieties required for industrial frying—characterized by high solids, low sugar content, and specific elongated shapes—remain predominantly foreign-bred, with approximately 70% of Russia’s certified seed potatoes historically imported . Miratorg has responded by constructing a selection and seed center in the Oryol region and a commercial potato farm in Bryansk with combined production capacity of ~140,000 tonnes, investing 4.5 billion rubles to build a seed pipeline from micropropagation in Kaliningrad to first-generation super-elite seeds by 2026 . The company aims to produce 15,000 tonnes of original and elite seeds on 350 hectares by 2028, capturing approximately 2% of the domestic seed market . Parallel developments include a rival 105,000-tonne-per-year fry plant in Kaliningrad by the Atlantis group, signaling intensifying competition for limited domestic processing-grade potato supplies . The Grand Fries facility itself, located in the Mtsensk district under Oryol’s Special Economic Zone, projects creation of approximately 400 jobs and annual tax revenues of 2.24 billion rubles at full capacity, with an additional 1 billion rubles invested in modern wastewater treatment systems . For agronomists and farm owners, this project illustrates the critical lesson that processing infrastructure without corresponding investment in plant genetics and seed systems cannot achieve true food sovereignty—the journey from petri dish to perfect fry requires years of foundational agricultural development that no amount of processing capacity can bypass .

Tags: agricultural investmentAgricultural TechnologyFood Sovereigntyfrench fry productionGrand FriesHORECA sectorImport SubstitutionKaliningrad seed centerMiratorgOryol RegionPotato FlakesPotato Processing Plantprocessing potato varietiesRussia potato industryseed potato deficitseed system developmentStarch productionSupply Chain Resiliencevertical integrationVkusno I Tochka

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