In Russia may receive a new larger manufacturer of French fries. The leader of this market in the world the canadian McCain created the structure for construction of the plant in the special economic zone (SEZ) “Uzlovaya” in the Tula region and is already working on the project. The localization will allow to make extra money due to low prices for potatoes in Russia and to reduce logistics costs, but there may be problems with the quality of raw materials.About the readiness of the canadian McCain to begin construction of its first plant for the production of French fries in Russia became known from the data register. In June, McCain Foods Holland B. V. and McCain Europa B. V. established in the city Nodal Tula region, OOO “McCain foods Rus”, among the activities of which is production of finished products and dishes and the processing of potatoes. A Kommersant source in the market has confirmed that McCain is working on a project of a plant for the production of French fries, which will be located in the SEZ “Hub”. Among the conditions for investors — zero import duty and VAT rate until 2065, and the first ten years the rate of income tax is 2%. In the European office McCain operational review did not provide. The Corporation of development of Tula region said that can not yet reveal information about the project.McCain is the world’s largest producer of French fries. Founded in Canada in 1957 by the McCain family. Today controls 51 plant in Canada, USA, Australia, EU, etc. Global turnover of about 10 billion canadian dollars ($of 7.36 billion). In Russia the company has a distribution division, OOO “McCain Marketing (Rus)”, which in 2019 have received 3.13 billion RUB of revenue and 286,85 mln RUB. in net profit (the data “SPARK-Interfax”). Also working potato farm LLC “McCain Agriculture (Rus)”.That McCain is studying the possibility of building a plant to produce French fries in Russia previously reported, but before the establishment of the project company case is not reached. In 2011 it was about the enterprise capacity of about 150 thousand tons of production in the Bryansk region. In early 2019, the CEO of Cherkizovo group Sergei Mikhailov spoke about the possible early release of the French fries in partnership with McCain. Cherkizovo said “Kommersant” that the idea was abandoned.According to forecasts by Euromonitor International, sales of processed potatoes in a package in the Russian retail in 2020 will grow by 9.8%, to $46 million the Largest player with a share of 20.6% — McCain. But the main sales channel of the product falls on the catering market and this segment is unsaturated. According to customs data, in 2019, Russia imported more than 90 thousand tons of processed potatoes. McDonald’s stated that it “welcomed the emergence of new industries and expansion of current”. Burger King did not answer the questions “y” in KFC declined to comment.Today the largest Russian manufacturer of French fries, OOO “LEM Weston Belaya dacha” (compatibpeppermint venture GK “Belaya dacha” and the Dutch Lamb Weston / Meijer), which manages the plant in Lipetsk capacity of 100 thousand tons per year. The project cost was estimated at €120 million In April, the plant went on forced leave for three months before term because of falling demand for French fries in pandemic COVID-19. The founder of the “White dacha” Viktor Semenov said that the Russian market of French fries growing, but what will be the situation two or three years, hard to say. According to him, “Lam Weston White summer residence” plans to continue business development.The Executive Director of the Potato Union Alexey Krasilnikov said that in Russia in the last seasons overproduction of marketable potatoes and low prices for the product that encourage recycling. According to the Institute for agricultural market, in 2019 in Russia were collected 19.8 million tonnes of potatoes. Average producer prices in the centre at the end of December was at 8 rubles per kg — at least for the last three years. Executive Director of “RusBrand” Alexey Popovichev adds that localization will help McCain to save on logistics, which in the case of the frozen product is quite expensive. But there may be issues with obtaining raw materials of required quality, he said.Anatoly Kostyriv
