Dagestan may supply Russian McDonald’s with potatoes - media

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Makhachkala, January 22, 2016. McDonald's is negotiating with Dagestani "Yugagroholdingom" JSC that could raise and process potatoes for the fast food network. This was reported at the press service in McDonald's.

"The idea for the cultivation of potatoes in Russia appeared in connection with the strategy of import substitution. We also need the warehouses and streamlined production of frozen French fries. The Corporation participates in negotiations on this issue with the different regions, including the Moscow region" - McDonald's top manager says.

According to the source, at present, the frozen potatoes for the Russian McDonald's network are imported from Poland. However, the import substitution policy pursued by the Russian authorities urges McDonald's to find the local partners in provinces, including Dagestan ("Agroprompark Olympus" and "Yugagroholding" JSCs owned by Umar Musayev and Abakar Abusamadovu respectively).

The president of the National Union of Vegetable Growers Sergei Korolev said that Russia now potato prices fell by 40% due to a surplus of 1 million tons, so that, given the difficult situation on the foreign exchange market, it will be cheaper to raise the raw material for French fries in Russia in the 2-2 5 times than to import it from abroad.

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