Potato prices soaring in Kuban, according to expert analysis

Potato Price Hikes Puzzle Russia

It's a hot potato situation in Russia right now, with the cost of everyone's favorite tuber skyrocketing this spring. And it's got the nation's residents scratching their heads and seeking answers.

Photo: Yevgeniya GUSEVA. Switch to Photo Bank KP

The soaring price of the nation's main social product - the second bread, otherwise known as potatoes - is causing quite the stir. In the popular talk show "Cornerstone" on the radio "KP-Kuban", agricultural and food industry experts shared their insights on the matter.

The cost of producing spuds is through the roof right now. There's a scarcity of seeds, and the cost of seed material is steep, not to mention the pricy plant protection products, fertilizers, and fuel. Many producers have bailed on the market, while new players trying to enter, some not yet registered, are creating a gap. Since we import fresh seeds to the south every year due to high temperatures causing seed degeneration, and the central part of Russia can purchase top-notch seeds, our local cultivation is suffering accordingly, says Sergey TRONY, head of a farm in the Kalinin district.

According to the farmer, when the mass harvest kicks off, potato prices should drop. However, it's worth noting that local produce is in short supply, and there's a surge of imported products from Egypt, Azerbaijan, and China making their way in. Moreover, China is flooding the market with a plethora of potatoes this year, and prices are lower than our production costs.

I can't fathom how China calculates their cost price. Their prices don't even cover our costs. They send some quite attractive potatoes. But I haven't had the opportunity to taste them, or get them analyzed. I suspect their methods are a trade secret, grumbles Sergey TRONY.

Currently, the so-called first potatoes are being harvested, with prices ranging from 65 to 70 rubles per kilogram. If picked from the field, the cost is 55-60 rubles per kg. But don't rely on these figures as the mass harvest is just around the corner, and prices will fall once more potatoes become available. Early potatoes yield low, which drives up their cost. As more potatoes hit the market, the price should decrease, potentially down to 30 rubles per kilogram.

We're not talking about the central region of Russia. We're talking about the south, where things are grown more delicately, primarily by manual labor. We need to harvest early, so everything is done by hand: manual planting, manual harvesting, sorting, and sprouting seed material. This is a labor-intensive process, points out Sergei Tron.

This year, farmers are observing a shortage of potatoes. Last year, prices were much lower than the cost of production. Consequently, planting areas were reduced, and the poor harvest was a result of adverse weather conditions, causing a decrease in production volume. If this trend continues, production volumes may further decrease.

The chairman of the Association of Farming Households in Krasnodar, Igor Emelin, reports that there are farmers in the Kuban capital and its outskirts who grow vegetables. The main problem is not just in the city but throughout the region - a lack of labor force. However, the price of potatoes depends on many factors.

Firstly, for several years, the price of potatoes has been very low, plunging to 10 rubles per kilogram, while the cost of production was around 12 rubles due to the high amount of manual labor. This is the price 'off the field', what the person has invested. The prices you see in retail stores are grossly inflated. Today, the price of potatoes is about 50 rubles at the field. Then someone buys it, packs it, adds a markup. It might even pass through two intermediaries, and the stores markup a lot. That's why the price is sky-high, explains Igor Emelin.

Large-scale potato farmers who trade wholesale don't have time to join fairs. They might dig up 10-20 or even 100 tons a day, so hiring a driver with a truck and a salesperson to go to the market and sell a few hundred kilograms would simply be unprofitable. Therefore, they don't participate in these activities. According to Igor Emelin, small producers, gardeners, and more than half of them being resellers, are the ones stepping up at these fairs.

We have cooperatives, but they are weak. For this, a state program is needed, with co-financing, clear rules, and some benefits. Currently, a bill is being introduced in the State Duma that if a cooperative has worked, paid all taxes, and received a certain profit, and then this profit is redistributed among the cooperative members, they have to pay tax again. This means that tax is paid several times for the same thing, putting cooperatives in a disadvantageous position and hindering their development. adds Igor Emelin.

The expert also notes that the potatoes grown in greenhouses and under protective materials have been harvested, with their price initially high at 90 rubles per kg and now at 50 rubles.

Now, ground potatoes will come, and the price will drop even further, perhaps to 40 rubles. Foreign potatoes, such as Egyptian, are being imported, but their cost is significantly higher. These are considered a different category of potatoes, clarifies Igor Emelin.

Veronica Shereemetieva, the commercial director of a restaurant network, shares that before potatoes reach the restaurants, they undergo a taste test, and only if approved, will they be purchased. The quality of dishes and consistent taste are essential considerations.

Of course, we prefer to work with local farmers as much as possible. Globally, there's Turkish, Egyptian, and local potatoes on the market, but they're all roughly the same price, around 80-85 rubles per kg, says Shereemetieva.

Restaurant owners are vigilant about quality and price. They always examine vegetables for the presence of pesticides and other nitrates, not just potatoes. As summer rolls around, watermelons and cantaloupes will appear on the shelves, and they will also undergo the close scrutiny.

It's crucial because our guest deserves the best meal. We aim for pleasure and, of course, must never harm ourselves, notes Shereemetieva. But this doesn't imply that Turkish or Egyptian potatoes are bad; far from it. Often, consumers can't discern the difference. If you blind taste test, boil potatoes with oil, add herbs, you won't detect a thing because apart from origin, there are various potato varieties. Some are best for boiling, others for frying, and we also work with young potatoes. Turkey and Egypt provide excellent fruits as well, as we source more than just potatoes from there, she concludes.

Potatoes, like other vegetables, are purchased in tons, not kilos. Each restaurant obtains its supplies directly, bypassing the warehouse, so the chef can immediately evaluate the quality of incoming goods upon receipt. This is how we handle all products: meat, fish, dairy, fruits, and more, elucidates an expert.

Enrichment Data:Overall:The exorbitant price of potatoes in Russia, specifically in the southern regions, this spring is due to various factors, including supply shortages, rising production costs, and heavy reliance on imports to meet demand.

Factors Contributing to High Prices1. Supply Shortages: Russia encountered a 12% decrease in potato harvests due to adverse weather conditions such as spring frosts and heavy rains in 2024, which led to the sharp price hike in 2025.2. Record Price Increases: Potato prices surged by 166.5% year-over-year by May 2025, making them the fastest-rising food item in Russia.3. Cost of Production: Early potatoes, particularly those cultivated in the southern regions, are expensive to produce because of high labor costs, a labor shortage, increased worker compensation, and specialized farming requirements.

Price Difference Between Local and Imported Potatoes1. Harvest and Supply Chain Issues: Despite the new harvest starting in southern regions, early potatoes are not reaching retail shelves promptly. In the meantime, retailers are importing large volumes of lower-priced potatoes.2. Imported Produce: Russia allows duty-free imports of up to 150,000 tons of potatoes, primarily from Egypt, China, and Uzbekistan, helping to stabilize prices but potentially not fully addressing local price disparities.3. Government Measures: Russian government efforts to stabilize the market through imports and expanding cultivation areas aim to reduce reliance on expensive local early potatoes and potentially lower prices as the domestic harvest increases.

The increasing price of potatoes in Russia, often labeled as the nation's second bread, is causing a stir, with agricultural and food industry experts attributing it to high production costs due to a scarcity of seeds, expensive seed material, plant protection products, fertilizers, fuel, and a lack of registered producers.
As the domestic potato harvest begins, experts predict that prices will drop, yet Russia is experiencing an influx of imported potatoes from countries like Egypt, Azerbaijan, and China, further contributing to the market's supply and demand imbalance.