Farmers in southern Russia—including Kabardino-Balkaria, Stavropol, and Krasnodar—have begun selective harvesting of new-season potatoes. However, prices are significantly lower than anticipated, according to Alexey Krasilnikov, Executive Director of the Russian Potato Union. Early potatoes are costly to cultivate due to high manual labor requirements, and wages have surged two to three times compared to last year due to labor shortages.
Despite these challenges, early domestic potatoes are struggling to reach supermarket shelves. Retailers, anticipating shortages after last year’s poor harvest of premium potatoes, have already secured large import contracts—mainly from Egypt and China—and paid advances. “It’s not profitable for retailers to buy domestic potatoes now, as it would compete with pre-paid imported stock,” Krasilnikov explains.
Imports Surge, Threatening Local Growers
This season, potato imports have already exceeded 500,000 tons, with China emerging as the second-largest supplier after Egypt. Krasilnikov warns that total imports could near the 1.5 million-ton record set during the drought-hit 2010/11 season. Meanwhile, domestic growers are forced to sell early potatoes at just 50–60 RUB/kg, far below break-even levels.
Expanding Plantations, But Seed Shortages Loom
The Russian Ministry of Agriculture plans to increase potato planting areas by over 10,000 hectares, targeting 290,000 hectares in the commercial sector. As of early June, planting was 19,000 hectares ahead of 2024 levels. However, seed potato shortages—particularly high-quality varieties for processing—pose a major hurdle. Last year, Russia imported 290 tons of elite seed potatoes from Germany, but this year, zero imports are expected due to regulatory hurdles.
A Challenging Season Ahead
With low prices, rising costs, and import competition, Russian potato farmers face a difficult season. Many may abandon early potato production, shifting to other crops. Without policy adjustments or support, the domestic market risks becoming increasingly dependent on imports—especially if seed shortages persist.
