Russian Farm Association Urges Retail Chains to Increase Potato Purchases from Small Farmers as Prices Drop Below Cost

The Association of Peasant (Farm) Enterprises and Agricultural Cooperatives of Russia (AKKOR) has appealed to the Association of Retail Trade Companies (AKORT) and X5 Retail Group over a reduction in potato purchases from small-scale farmers. Since March 2026, retail chains have cut procurement volumes from smallholder farms, a problem that has affected even entrepreneurs and cooperatives with agro-aggregator status. Although farmers managed to store their potatoes until May in modern, high-tech storage facilities, they cannot sell the produce, as purchase prices have fallen below production costs.

AKKOR warns that the current situation poses risks to national food security. Small agricultural producers grow more than 80% of Russia’s potatoes and vegetables, and many now face severe financial difficulties. Unsold produce may have to be discarded, causing direct losses for farmers. This, in turn, could lead to a reduction in planted areas this year and in the future. AKKOR is asking retailers to resolve the situation and increase purchases of domestically grown potatoes from small farms under conditions acceptable to agricultural producers.