EGYPT – Egypt’s decision to reduce potato exports to Russia with the aim of stabilizing local supply has caused a significant increase in prices in Russia.
However, relief is expected soon as domestic supplies are anticipated to fill the gap, according to Alexei Krasilnikov, executive director of the Potato Union.
“Egypt, which traditionally supplied us with 300-500 thousand tons at this time – May-June, reduced the area for Russian supplies and, as a matter of fact, this may have provoked a certain shortage in the market,” Krasilnikov explained.
He highlighted that the supply drop from Egypt, a key player in the potato export market, has strained the Russian market. As of May 27, potato prices in Russia have surged by 25.6% since the beginning of the month, according to Rosstat.
Despite the short-term supply issues, Krasilnikov remains optimistic about the domestic potato market.
“We have Southern regions, the same Astrakhan or there Krasnodar Territory, Stavropol, there are also two harvests… Soon our consumers will be able to enjoy new potatoes from domestic fields,” he stated.
These regions are expected to begin delivering early domestic potatoes within the next two weeks, which should help stabilize the market.
The current planting season in Russia is nearing completion, and while some regions have slightly reduced potato acreage due to low profitability, many areas, including Moscow, have maintained their planting volumes.
This should prevent any critical shortages in the market. “It is too early to make forecasts for the harvest,” Krasilnikov noted, but the overall outlook remains positive.
Egypt’s export landscape
Egypt’s decision to cut exports to Russia comes amid a significant increase in their exports to the European Union.
In 2023, Egyptian potato exports to the EU are expected to reach a three-year high, with European importers showing growing interest in Egyptian produce due to low potato production within the EU and favorable economic conditions in Egypt.
Already, Egypt has exported 211,000 tonnes of potatoes to the EU in the first four months of the current year, the highest since 2021 and almost equal to 2020 levels.
In 2022, Egypt exported $357 million worth of potatoes, making it the fifth largest exporter globally. Major destinations for Egyptian potatoes include Russia, Greece, Kuwait, Lebanon, and the United Arab Emirates.
For all the latest fresh produce industry news updates from Africa, the Middle East, and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.
