From January 1 to December 20, 2020, Russian potato exports increased by 29% to 415 thousand tons *. In monetary terms, the volume of supplies increased by 37% to 49 million dollars. About 28% of the value fell on seed potatoes, the rest - table potatoes and potatoes for processing.
According to the FCS, the list of importing countries this year has expanded to 26 against 16 in 2019, but the main buyers of tubers are still the neighboring countries.
So, 174 thousand tons were exported to Ukraine, which is 11% more than the same period in 2019, worth $ 16 million (+ 16%). Turkmenistan took the second place this year, since 2020 has been developing its own potato growing. As a result, the country bought from Russia 34 thousand tons of potatoes for $ 11 million, while the same figure last year was 308 tons for $ 90 thousand. Two-thirds of the volume exported to Turkmenistan fell on seed potatoes.
Also, Uzbekistan significantly increased supplies: in value terms, exports to this country increased 11 times to 8,2 million dollars, in physical terms - 50 times to 83 thousand tons. The top 5 importers include Azerbaijan, the second buyer of Russian seed potatoes after Turkmenistan, and Moldova.
The growth in exports is due to a number of reasons, Aleksey Krasilnikov, executive director of the Potato Union, told Agroexport. “Ukraine, the largest buyer of Russian potatoes, experienced a poor harvest last year, as a result of which the country's imports rose sharply. We also see steady growth from Uzbekistan and Azerbaijan, where both table and seed potatoes are exported. In addition, against the backdrop of a good Russian harvest in 2019, supplies increased to countries such as Moldova and Serbia, where the Russian product proved to be quite competitive. They tasted our potatoes there, so I think that these channels will be preserved in the coming years, ”Krasilnikov said.
In addition to potatoes, in 2020, Russia supplied to the markets of almost 50 countries about 50 thousand tons of potato processing products worth $ 101 million. In physical and value terms, the volume of exports increased by 11% compared to the same period in 2019 **. Including unfrozen cooked potatoes (chips, snacks, dry mashed potatoes, etc.), 32 thousand tons (+ 16%) worth $ 85 million (+ 15%) were shipped, frozen processed potatoes (french fries, etc.) - 5,7 , 10 thousand tons (+ 4,9%) for 5,6 million dollars (-8,2%), potato flakes - 2,6 thousand tons (-8,9%) worth 9,3 million dollars (- 3,7%), potato starch - 8,2 thousand tons (+ 2,2%) in the amount of USD 0,9 million (-XNUMX%).
World market
According to FAO, the global potato harvest in 2018 was 368 million tonnes. Its largest producers were China (90 million tons), India (49 million tons) and Ukraine (22,5 million tons). In the statistics of the organization, Russia is in 4th place with a total production volume of 22,4 million tons, taking into account households.
In 2019, the world potato market increased to 371 million tons and in value terms reached $ 140,5 billion, IndexBox estimates. From 2007 to 2019, the global market volume grew at an average annual rate of 3% and the positive dynamics is expected to continue over the next decade.
According to ITC Trade Map, world potato imports in 2010-2019 grew by 57% to $ 5,2 billion.The largest importers of fresh and chilled product are the EU countries - Belgium (14%), the Netherlands (8,3%), Germany ( 6,7%), and outside of it - the USA (4,2%) and the UK (2,8%). Leading exporters are the Netherlands (20%), France (17%), Germany (8,9%).
World imports of potato by-products are significantly higher: in 2019 they reached $ 11,9 billion, having increased by 10% over the past 65 years. Among importers the leaders were the USA (12%), Great Britain (7,7%), France (7,4%), exporters - Belgium (23%), the Netherlands (21%) and the USA (14%). About 66% of world imports of potato products accounted for frozen processed potatoes (primarily French fries), 20% - non-frozen potato products, 7,2% - starch, 5,2% - flakes, 1,5% - potato flour and powder.
Prospects for Russia
In the 2020/21 season (June-May), Russian exports may be negatively affected by a decrease in the gross harvest of potatoes in Russia. "The area for the harvest in 2020 has decreased by 20 thousand hectares, and the gross harvest may be lower than last year's level, when, according to official data, 7,6 million tons were dug in the commodity sector," Krasilnikov said.
Russia has significant potential to increase export supplies, Krasilnikov is sure. “In the Caucasus, Uzbekistan, Tajikistan, Kyrgyzstan, they are gradually switching to purchasing both seeds and table potatoes from the Middle Eastern countries to Russian products, and our positions there are gradually growing. Due to the decision to increase the area under potatoes, Turkmenistan in the coming years will also remain a growing sales channel, primarily for seed potatoes, ”Krasilnikov assesses.
There is also high potential in the development of supplies of potato processing products to foreign markets. Thus, Lam Weston Belaya Dacha, the largest Russian producer of French fries, is considering the possibility of building a second production line in the Lipetsk region, and export will be one of the main sales channels for the additional volume, Krasilnikov is sure. “There have already been deliveries to Israel, North Africa, Central Europe, which showed that the quality of Russian products is in demand on the foreign market,” he stressed. In the future, an increase in production and export of potato chips and flakes is also expected. “The processing of potatoes into flakes and chips is gaining momentum. Already now, flakes are exported from China to Latin America, the advantage of this line of processing is low requirements for raw materials, as well as a fairly long shelf life, "added Krasilnikov.
* data for the EAEU for January-October
** TN VED codes 110510, 110520, 110813, 200410, 200520