#PotatoFrenchFries #GlobalMarket #EmergingCompetitors #StateSupport #PrivateInvestment #ProductionGrowth #ExportMarket #LowProductionCosts #InnovativeProducts #MarketingStrategies #India #China
With the departure of two players in the Russian potato French fry production industry, the situation did not worsen, but instead, there has been an increase in production and opening of new plants, including those aimed at export. With the availability of water, vast fertile lands, and low costs of fertilizers and diesel, Russia, along with India and China, is poised to become one of the leaders in the global market for this product. In the next 10 years, we can expect to see a displacement of old French fry producers with new, more aggressive competitors in marketing and pricing strategies. The government’s support is focused not only on the domestic market but also on external markets, with more than 70% of potato French fries being produced in these countries by 2040. The significant investments from private businesses and state support will lead to significant projected growth.
Development: In recent years, there has been a surge in the production of potato French fries in Russia, despite the departure of two significant players in the industry. The exit of these players, who were responsible for producing around 40% of the country’s potato French fries, would have been expected to cause a decline in production. However, this has not been the case, as the remaining companies have increased their production, and new plants have emerged, geared towards meeting the growing demand, including exports. The increase in production can be attributed to several factors, such as the availability of water and vast fertile lands, making it easy and relatively cheap to cultivate the potatoes. Additionally, the costs of fertilizers and diesel are low, which has helped to reduce the overall production cost, making it more attractive to invest in this industry.
The Russian government’s support has also been a significant contributor to the growth of the industry, with initiatives aimed at providing incentives for local production, increasing exports, and attracting foreign investment. The government’s support is not only focused on the domestic market, but also on the external market, as it aims to make Russia one of the leading producers of potato French fries globally.
Moreover, Russia is not the only country experiencing growth in the potato French fry industry. India and China have also emerged as significant players, with their vast populations and growing middle class, creating a demand for fast food products. These countries have also invested heavily in the industry, with significant private sector investments and government support aimed at increasing production and exports. By 2040, it is projected that over 70% of potato French fries will be produced in these countries, displacing old producers and ushering in new, more aggressive competitors in the market.
Consequences: The growth of the potato French fry industry in Russia, India, and China, and emerging competitors will have significant consequences for the global market. With the potential for lower production costs, these countries will be able to offer more competitive prices, leading to a displacement of old producers who may not be able to match their prices. Additionally, the emergence of new, more aggressive competitors with advanced marketing strategies may lead to the development of new and innovative products in the industry.
In conclusion, the rise of the potato French fry industry in Russia, India, and China, and emerging competitors will lead to significant projected growth, driven by large investments from private businesses and state support. With the potential to become the leading producers of this product globally, these countries’ growth will impact the global market, leading to the displacement of old producers and the emergence of new, more aggressive competitors.
