Miratorg plans to buy seed potato producer Baltic Seeds

The Baltic Seeds company from Kaliningrad manages a complex with a capacity of 12.5 thousand tons, 3.5 thousand hectares are allocated for the project, according to the materials of the Union of Potato and Vegetable Market Participants. According to the association, in the 2022 season, Baltic Seeds entered the top ten leaders in RUSSIA in the certification of seed potatoes, having issued documents for 4 thousand tons of seeds. Miratorg is the largest producer of pork and beef in Russia. The company also produces semi-finished products and ready-made meals, operates a retail network, is engaged in vegetable growing, feed production and other activities. In 2023, Miratorg collected 103 thousand tons of vegetables and potatoes and processed 52 thousand tons of products. As part of a partnership with the fast food chain “Vkusno - toka”, the company plans to launch a plant to produce up to 100 thousand tons of French fries by 2025, which will require 250 thousand tons of raw materials. At the end of last year, Miratorg also announced its intention to invest 1 billion rubles. in the selection of potato seeds in the Kaliningrad and Bryansk regions.

Executive DIRECTOR of the Union of Potato and Vegetable Market Participants Alexey Krasilnikov told Kommersant that the acquisition of Baltic Seeds will allow Miratorg to reduce risks due to restrictions on seed imports imposed by the Ministry of Agriculture. For 2024 , a quota has been established for the import of potato seeds from unfriendly countries in the amount of 16 thousand tons. According to the HEAD of the Ministry of Agriculture, Dmitry Patrushev, in the next three years it is planned to reduce the volume of quotas as domestic production grows.

According to Krasilnikov, the Baltic Seeds complex has favorable natural and climatic conditions for the production of high-quality seed potatoes. However, he notes that a potential weakness could be the organization of supplies from the Kaliningrad region to other regions of Russia. Miratorg grows vegetables and potatoes in the Tula, Bryansk, Oryol regions and Stavropol Territory. General Director of the Growth Technologies company Tamara Reshetnikova, in a conversation with the publication, noted that the share of imported seeds in standard potato varieties is about 65%, while in varieties intended for processing this figure is close to 100%. 

The Baltic Seeds company's assortment includes varieties specially developed for the production of chips and French fries, the government of the Kaliningrad region reported in 2022. Reshetnikova also noted that selection is a long-term process, but the necessary varieties can be grown using imported pure lines. According to Krasilnikov's estimates, to produce 100 thousand tons of French fries per year, a harvest from an area of ​​about 6 thousand hectares is required, which may require approximately 15 thousand tons of seeds.

In early March, Krasilnikov said that the main markets for Russian table and seed potatoes are in the countries of the former Soviet Union. However, domestic potato producers are showing interest in supplying exclusive red-fleshed varieties from Serbia. The EXPORT of seeds of this crop is also developing . For example, an application was received from Tajikistan for the purchase of 1.5 thousand tons of seed potatoes. “We offered this country a supply of 5.5 thousand tons of domestically selected tuber seeds in mid-January. We hope for successful cooperation,” said Krasilnikov.

Reshetnikova noted the importance of supporting agricultural producers who specialize in growing potatoes for the production of French fries. “Growing seeds of varieties intended for processing, as well as their commercial production, requires significant costs compared to ordinary table potatoes,” the expert said. In her opinion, it would be advisable for breeders to provide support in the form of subsidies and tax breaks for the construction of micropropagation laboratories. And producers of tubers for processing would benefit from assistance in the construction of warehouses and potato storage facilities.

According to the Potato Union, the average annual import of potato seeds to Russia is 13 thousand tons, approximately 90% are seeds of high reproduction varieties intended for industrial processing into chips and fries. “Last fall,  ROSSELKHOZNADZOR  banned the supply of seeds and seedlings from the Netherlands, so we will no longer receive 5 thousand tons of seeds. Supplies from Germany may also face problems,” he said.