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[BUSINESS] · Russia · 2 sources

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Russian agriculture shifts toward rapeseed amid potato shortages

The Russian agricultural sector is undergoing significant shifts in crop selection and facing supply challenges. Rapeseed has emerged as a primary driver of profitability in the vegetable sector, with cultivated areas increasing by approximately 900,000 hectares in 2026. This growth comes as farmers move away from cereals and legumes, which saw a 6% reduction in area due to low domestic prices and limited export opportunities. While oilseed production is rising, the market faces risks due to a reliance on China as a primary export destination.

Simultaneously, Russia is facing a projected deficit of one million tonnes of potatoes due to declining yields and the lowest levels of industrial cultivation area in nearly two decades. National needs are estimated between 8 and 8.5 million tonnes, while the expected harvest is only 7.5 million tonnes. This shortage is expected to drive retail prices up significantly, with wholesale and retail costs already rising by 33% to 35%. To mitigate the deficit, Russia may need to begin importing potatoes from Mongolia and China as early as January.

Other essential vegetables, including cabbage, onions, beets, and carrots, are also experiencing double-digit price increases that exceed the general inflation rate.

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Mongolia