Potential for Russian potato chip exports put at $300 mln-$350 mln/year - Agroexport

MOSCOW. Aug 9 (Interfax) - Russia has the estimated potential to export 80,000-90,000 tonnes of potato chips worth $300 million-$350 million per year, the Agriculture Ministry's Agroexport Center reported.

This will be possible "given the continued positive trend in the growth of demand for potato chips, and if the necessary growth of production of this product in Russia is ensured," the report said.

The key export markets are CIS countries, which are the largest importers of potato chips from Russia, foremost Kazakhstan, Belarus, Uzbekistan, Kyrgyzstan and Tajikistan, the report said. Other promising markets are Georgia, East Asia, foremost China, Hong Kong and Mongolia, and Turkey.

Russian potato chip exports have been growing steadily in recent years. In the period of 2018-2022 they increased from 23,300 tonnes worth $65 million to 44,000 tonnes worth $187.6 million, growing 17.3% by volume and 30.3% by value. In 2022 compared to 2021, they increased 0.9% by volume and 70% by value, the report said.

Russia had a 4% share of the world market by volume in 2022, putting it in seventh place. By value, it had a share of 6.2% and ranked fourth behind the Netherlands, Belgium and the United States.

The main markets for Russian potato chips by volume in 2022 were Kazakhstan and Belarus, which accounted for, respectively, 37.6% and 31.1% of exports, or 68.7% in total. The top ten markets accounted for 98.6% of Russian potato chip exports. Compared to 2021, the strongest growth of exports was 14.1% or 535.5 tonnes to Uzbekistan and 21.1% or 633.8 tonnes to Azerbaijan.

Kazakhstan and Belarus also led by value of exports, with 36.3% and 32.2%, respectively. The top five markets also included Uzbekistan with 9.3%, Azerbaijan with 7.6% and Kyrgyzstan with 3.9%. The top ten markets accounted for 98.7% of Russian exports by value. The strongest growth in exports compared to 2021 was 110% or $31.2 million to Belarus and 67.4% or $27.4 million to Kazakhstan.

Russian potato chip imports fell 30.2% to 9,400 tonnes in 2022, but rose 7.8% in value to $49.3 million, the report said. In the period of 2018-2022, Russian potato chip imports decreased by an annual average of 4.9% by volume but grew 10.7% in value. The main suppliers were Belarus and Poland.

"Russian potato chip production demonstrated stable rates of growth until 2021. In 2022, it fell by 36,700 tonnes (16.5%) to 185,400 tonnes. Russian production increased by an average of 3.4% annually in 2018-2022," the report said.

Estimated domestic consumption of potato chips in Russia fell 21.4% to 150,800 tonnes in 2022. In 2018-2022 consumption edged up by an annual average of 0.02%. Imported potato chips had a 6.3% share of the Russian market in 2022.

Global potato chip consumption totalled 4.05 million tonnes worth $45.69 billion in 2022, respectively 1.3% and 4.9% more than in the previous year. The global market grew by an average of 2.1% by volume and 4.9% by value in 2018-2022.