Russia imported considerably less chips and seed potatoes last season. On the other hand, the acreage of potatoes will decrease in 2019. What is the situation in Russia with regard to potatoes?
The Russian potato area decreased by 2019% in 2,7 compared to 2018. This brings the total area to more than 302.000 hectares. The area decreased by 5% in the past 6 years and even by more than 10% in 7 years (23.700 hectares). This could have to do with the government's policy, which is aimed at strengthening Russia's position on the global grain market.
Moreover, the potato area has increased over the longer term. In 2001, the area in the country was still 266.000 hectares. This data comes from the Russian Statistical Service. Small-scale potato cultivation by private individuals is not included in this.
Favorable growing season
The most important production region in Russia is the Bryansk region, which is located in the central western part of Europe and borders Belarus and Ukraine. About 9% of the total potato area is grown here. The Tula region, which is located under Moscow, and the region around Moscow itself are also important potato areas. So far the growing season has been favorable in most potato areas.
While the acreage in Russia has decreased, significantly fewer ware potatoes were imported by the federation in 2018/19. Imports halved compared to the previous year, because there was sufficient supply from the country itself. More than 280.000 tons were imported, while imports in the previous two years amounted to 2 tons. However, this is not the market that is most interesting for Europe. In terms of consumption potatoes, Russia is mainly served from the Middle East.
Imports of seed potatoes have fallen sharply
The seed potato and chip market is of more importance for the EU-5 countries. Russia's import of seed potatoes collapsed last season. More than 11.000 tons were imported, compared to more than 22.000 tons the year before. The Netherlands was responsible for approximately 33% of this import, but has had to make significant concessions. This is not surprising given that there was less seed potato available in Europe. The price of seed potato imports rose by 21% for Russia. This is a sign that seed potato traders have been able to communicate the shortage situation in the EU well.
The Russian market is also important for European chip exporters. For example, a quarter of Poland's chip exports go to Russia (about 50.000 tons). However, Russia imported 2018% fewer fries in 19/20. This sharp decline brings the total import to 100.500 tons.
The Netherlands supplied fewer fries
The Netherlands in particular, the main supplier of fries in Russia, has exported considerably less. More than 20% fewer potatoes went to Russia than the almost 55.000 tons exported in 2018. Countries that benefited from that decline are Germany and Egypt, which exported 77% and more than 700% more to Russia respectively. However, this concerns much lower absolute tonnes than the Netherlands exports.
With a purchase of more than 50.000 tons of fries out of Dutch exports of almost 2 million tons, the Russian market is not a very large buyer of Dutch fries. However, it is true that the declining French fries import from Russia is not an isolated incident. It is also partly due to the construction of a factory of a Lamb Weston Meijer (joint venture) that produces approximately 100.000 tons of fries per year.