Early Potato Glut: Will Farmers Bear the Brunt of Falling Prices and Export Challenges?

The Russian Potato Union has urgently appealed to the Ministry of Agriculture to facilitate exports of early potatoes to neighboring countries, including Kazakhstan, Uzbekistan, and Azerbaijan. The union seeks faster phytosanitary certifications and streamlined export procedures to prevent a domestic price collapse due to oversupply.

Market Pressure from Rising Production and Import Stocks

This season, early potato plantings expanded by over 10%, with major producing regions like Astrakhan, Rostov, Bryansk, Stavropol, and Krasnodar preparing for mass harvests. However, heavy rains delayed digging, and now a surplus is expected to hit the market simultaneously.

Compounding the issue, imported potato stocks from previous seasons remain high and will be sold until August, further suppressing demand for domestic produce. Unlike storage potatoes, early varieties must be sold quickly, leaving farmers vulnerable to price drops.

Price Risks and Farmer Losses

Wholesale prices are already below expectations, according to Alexey Krasilnikov, Executive Director of the Potato Union. Rising labor costs—up 2-3 times from 2023 due to worker shortages—make early potato cultivation expensive. If prices crash further, farmers may fail to recoup costs, discouraging them from planting early potatoes in 2026 and risking future shortages.

A Call for Swift Action

Without government support to boost exports and stabilize prices, farmers could face significant financial strain, disrupting long-term production cycles. The industry must balance supply chains and incentivize growers to maintain market stability.