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POTATOES NEWS
Home AGROTECHNOLOGY Growing seeds

Chinese Potato Venture in Leningrad Oblast: Will a Half-Billion-Ruble Seed Potato Project Succeed?

by T.G. Lynn
21.05.2025
in Growing seeds, News, Seeds
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A joint venture between Chinese investor Feng Xianjin (49%) and former Priozersk District head Sergey Doroshchuk (51%) is set to establish a large-scale seed potato and vegetable operation in Volkhov District, Leningrad Oblast. The project, led by Volkhovsky Kartofel LLC, has already allocated 200 hectares for seed beets (100 ha), carrots (50 ha), and seed/table potatoes (50 ha) on land previously owned by the bankrupt Svetlana farm.

Investment and Market Uncertainties

According to Kontur.Focus, the company has already invested at least ₽60M in agricultural machinery, with total costs—including seeds and potential storage facilities—potentially exceeding ₽500M. However, industry analysts question the project’s viability, citing past failures (such as the exit of former investor Sergey Matvienko) and unclear funding sustainability.

Regional authorities, however, are supportive. Deputy Governor Oleg Malashchenko highlighted a new ₽4/kg subsidy for producers increasing output, aiming to stabilize potato prices—a critical staple in Russia.

Challenges in Russia’s Potato Sector

Leningrad Oblast already hosts established seed potato producers like Suyda, Prinevskoye, and Premium Agro, which supply regions beyond the Northwest (e.g., Moscow and Astrakhan Oblasts). Yet, profitability remains volatile.

As Mukhazhir Etuev, CEO of Prinevskoye Breeding Farm, notes: “Prices peak early but often crash by late summer, pushing margins to zero.” Volkhovsky Kartofel’s potential partnership with Lorenz Snack-World Production (a Kirishi-based chip manufacturer) could mitigate sales risks, but market skepticism persists.

While the project aligns with Russia’s push for import substitution and seed independence, its success hinges on overcoming funding gaps, market fluctuations, and competition. If managed strategically, it could strengthen regional agribusiness—but the road ahead is fraught with challenges.

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Tags: Agribusinessagricultural investmentChina Russia Agro CooperationFarm SubsidiesLeningrad Oblastpotato marketSeed Potato
T.G. Lynn

T.G. Lynn

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