Magnit Launches Potato Storage Network: First Modern Warehouse Complex Opens in Tambov Region

Russian retail giant Magnit has acquired and modernized a warehouse complex in the Tambov Region for potato storage and packaging, marking the first step in building a network of specialized long-term fruit and vegetable storage facilities for its subsidiary, Magnit Agro Farmer, which manages agricultural procurement for the retail chain. The 7,000 sq. m facility has been renovated and equipped with a receiving hopper, conveyors for product storage, as well as washing, dry-cleaning, and packaging lines. In September–October, the warehouse will accept 12,000 tonnes of potatoes from local farms and producers from other Central Russian regions cooperating with Magnit. From September through April, the complex will supply the retailer’s distribution centers in the European part of the country with both bulk and packaged potatoes, as well as higher-value added products such as washed tubers in 2 kg and 3 kg consumer packaging.

According to Anton Marushev, Director of the Agricultural and Industrial Complex at Magnit, the company’s purchases of fruits and vegetables from Russian farmers under agricultural contracts will approach half a million tonnes this year, yet the country faces a significant shortage of long-term storage capacity. To address this challenge, Magnit plans a comprehensive approach: building its own facilities and contracting storage spaces for long-term lease from professional operators. This strategy will ensure maximum freshness and quality of produce on Magnit’s shelves year-round. Earlier, the retailer reported that the number of agricultural enterprises partnering with the company under the agro-contracting program had grown by 20% to 175 this year, with over 30 new partners joining from various Russian regions. This summer, fresh field vegetables will be supplied to the network by 15 small farms from the Moscow region and other Central areas, eight agricultural enterprises from the South (Stavropol and Krasnodar territories, as well as Volgograd region), seven farmers from the Urals, and five farms from the Northwestern Federal District. These new partners will deliver more than 20,000 tonnes of “borscht set” vegetables to the retailer’s distribution centers.