Russian Retailers Face Potato Shortage as Last Year’s Stocks Run Out and Storage Facilities Fall Short

Russian retail chains have approached domestic producers requesting additional potato volumes, as they have completely sold through last year’s harvest, according to Shopper’s citing market sources. The remaining stocks are deemed “non-retail quality”—small and uncalibrated potatoes. The situation prompted the Ministry of Agriculture to hold an emergency meeting with retailers and producers to discuss the supply of domestically grown potatoes to the retail sector. However, farmers have no surplus left; their storage facilities are empty. The core issue is Russia’s insufficient infrastructure for long-term potato storage (to last until mid-summer), and investing in new facilities makes little economic sense given intense competition from foreign suppliers (Egypt, Azerbaijan, China, etc.) and high borrowing costs.

Interestingly, just recently the situation was completely reversed—farmers complained that retailers preferred imported potatoes over domestic ones. Yet even with the current shortage, potato growers have not managed to secure annual contracts with binding commitments from both sides on delivery volumes, acceptance terms, and pricing—and they are unlikely to do so in the near future. Nevertheless, a major crisis is not expected: some regions have already begun harvesting the new crop, and fresh produce will soon start appearing on store shelves.