In early April, Russian retailer Magnit sent its first batch of 400 tons of seed potatoes to farming enterprises in the Volgograd and Sverdlovsk regions under agrocontracting agreements. Later during the spring sowing campaign, Magnit will provide partner farms with seeds of other crops, while expanding the number of suppliers and regions this year. The company will also continue its traditional form of support through cash advance financing. According to Pavel Rozhkov, General Director of Magnit Agrofarmer, this is the first time Magnit has directly transferred seeds to partner farms, with seed varieties and harvest volumes agreed upon in advance — offering farmers greater guarantees of a good yield and ensuring quality vegetables on store shelves.
Agrocontracts are agreements for future harvest deliveries with fixed volumes and additional support tools. Agricultural producers gain not only a stable sales channel but also assistance at every stage of interaction with the retailer — from joint planning of sowing to the option of crop pickup using the retailer’s transport. Key support tools include advance financing for seeds, equipment, and machinery. The retailer’s partner pool includes both large enterprises with tens of thousands of hectares and small farms with annual turnover up to 800 million rubles, which account for about half of all agrocontract supplies. In 2025, Russian farmers increased agrocontract deliveries by 9% to 231,100 tons across more than 90 product lines (potatoes, onions, carrots, tomatoes, cucumbers, cabbage, melons, apples, plums, etc.). The largest share of supplies — 47% — went to white cabbage, potatoes, and onions. Over one hundred small farms currently cooperate with Magnit under agrocontracts.
