Despite the reduction in acreage under potatoes, the gross yield in the business sector increased by 6% compared to the level of 2018.
Potato self-sufficiency close to 100%
- Russia builds up export potential: table potato exports may double last year
- Growth in potato processing will show growth of at least 20% compared to last year
- A clear minus: the current level of selling prices for potatoes is lower than the levels of previous years
In the current season, according to preliminary results, the potato crop in the business sector (agricultural enterprises and peasant farms) will be about 7,5 million tons, which can be safely considered a five-year record. Traditionally, the top 5 largest potato growing regions included:
In this situation, you can see both positive and sharply negative sides. As for the positive aspects: a high level of self-sufficiency in this category of products makes it possible to build up export potential, which we observe this season.
Another positive feature of the current level of production is the growth of interest and opportunities in the processing sector. It is expected that in 2019 the growth in the production of processed potatoes will be at least 21% compared to the previous year and will reach 297 thousand tons. In 2019, we observe a decrease in imports and an increase in exports not only of fresh table potatoes, but also of their processed products.
In the past year, potato imports almost halved (-47% compared to last year) and will amount to about 294 thousand tons. The main trading partners in the context of this category: Azerbaijan (19%, increased its share in the volume of imports of the Russian Federation by 7% compared to 2018), Belarus (8% - retained its position last year), China (13%, + 4% to the level of 2018), and the key importer is Egypt (46%, -19% to the level of 2019).
The level of culture production in the country makes imported products uncompetitive, the price level of which is an order of magnitude higher than domestic.
Changes in the potato market, as a rule, cannot be called dynamic: the price volatility for the crop in question is relatively low. As a rule, a change in prices is associated with the time of the year on which they depend: the volume of products on the market, as well as the possibility and terms of its storage. So, for example, the first potato harvests collected in the southern regions of the country in May-June are sold at fairly high prices, then, as the volume of production on the market increases, the price tag drops. Closer to mid-autumn, its growth begins, associated with the costs of sorting and storing, in the spring, potato prices are subject to decline due to the deterioration in the quality of potatoes stored in warehouses, as well as the import of better products from abroad.
The 2019/20 season began quite typically - with high price tags for products in the south, then everything went according to the scenario until mid-autumn. However, the growth in prices for this category expected by manufacturers did not happen: there are quite large volumes of substandard products on the market, which leaves no way for GOST potatoes to rise in prices. Manufacturers are disappointed: the current level and dynamics of prices does not provide growth (and, possibly, profit), reduces investment interest in the industry. A number of manufacturers began to open storage facilities before the New Year holidays due to the fact that, given the current situation, storage costs may not pay off.
Source: http://www.ikar.ru/