Georgia’s potato exports reached 78,230 tons in H1 2025, a 30-fold increase compared to the same period in 2024, according to the National Statistics Office. In value terms, exports surged to $26.5 million, up from just $0.88 million a year earlier.
Russia Dominates as Key Buyer
- 64.3% of Georgia’s potato exports (50,350 tons, worth $20.5 million) went to Russia.
- This volume alone exceeded total 2024 exports to Russia (14,050 tons) by 3.6 times, signaling a dramatic shift in trade flows.
- Secondary markets included Azerbaijan (20,260 tons, $3.7M) and Armenia (3,740 tons, $0.9M).
Why Is Russia Turning to Georgian Potatoes?
- Western Sanctions & Import Substitution
- After EU/US trade restrictions, Russia has increasingly sourced food from “friendly” nations like Georgia.
- Georgia’s geographic proximity and lower logistics costs make it an attractive supplier.
- Declining Domestic Russian Production
- Russia’s 2024 potato harvest fell by 5% due to extreme weather (droughts in southern regions).
- Rising domestic prices (+18% YoY) have forced Russia to seek affordable imports.
- Georgia’s Expanding Production Capacity
- The Georgian government has subsidized seed purchases and modernized storage facilities, boosting yields.
- New cold storage investments (supported by EU grants) have extended shelf life for exports.
Imports Also Rising, but Trade Surplus Widens
While Georgia’s potato imports grew by 22% (to 6,100 tons, $2.3M), mainly from Turkey, the export-import ratio now stands at 13:1, highlighting a booming trade surplus.
Lessons for Global Potato Producers
- Geopolitics Reshaping Agricultural Trade
- Russia’s pivot to Georgia mirrors broader trends of sanction-driven supply chain realignments.
- Farmers in neighboring countries (e.g., Armenia, Kazakhstan) could exploit similar opportunities.
- Infrastructure Investments Pay Off
- Georgia’s cold storage upgrades and export subsidies prove critical for perishable goods.
- Other emerging producers (e.g., Serbia, Moldova) could replicate this model.
- Volatility Ahead?
- If Russia’s domestic production rebounds, Georgia’s export boom may slow.
- Diversifying beyond Russia (e.g., Middle East, EU processing markets) could mitigate risk.
A Golden Opportunity—But for How Long?
Georgia’s potato sector is thriving, but reliance on a single market (Russia) poses risks. Strategic diversification and value-added processing (e.g., frozen fries, starch) could ensure long-term growth. For global farmers, this case underscores the importance of adapting to geopolitical shifts and investing in post-harvest infrastructure.
