The departure from Russia of the leading players, who occupied about 40% of the French fries market, did not worsen the situation in the industry, the website reports. Potatoes News. On the contrary, today there is an increase in production and the opening of new factories designed to meet the growing demand, including in the direction of export. This can be explained by several factors, including the availability of abundant natural resources, as well as low prices for fertilizers and diesel fuel, which make it possible to grow potatoes relatively cheaply.
Russia, along with India and China, is ready to become one of the leaders in the world market of french fries. With every opportunity to reduce costs, these three countries are able to produce a cheaper product. Thus, in the coming decade, we can expect incumbent French fry producers to be replaced by more aggressive marketing and pricing competitors. In addition, as a result of a change in the situation, conditions will be created for the development and implementation of new, innovative products of the industry.
India and China, with their huge populations and growing middle class, are becoming important market players amid strong demand for fast food. Significant funds have been invested in the industry of these countries, and we are talking about investments from both the private and public sectors.
The support of the Russian government has made a significant contribution to the growth and development of the domestic processing industry. The ongoing initiatives are aimed at creating incentives for local industries, increasing exports and attracting foreign investment.
It is predicted that by 2040 these countries will produce more than 70% of French fries, which will lead to the displacement of well-known producers from the market and the emergence of new, more aggressive competitors.