Greenhouses

Tomato Greenhouse of 100 Hectares Under Construction

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A greenhouse complex of 100 hectares is currently under construction in the Russian region of Kabardino-Balkaria. The agro-industrial holding ECO-culture plans to grow in it some 63,000 mt of tomatoes per year.

“The surface area of the greenhouse complex is 100 hectares. The project will be carried out in 2 steps: 40 hectares first, followed by 60 hectares (the construction should be completed by the end of 2024). The production capacity of the facilities will be about 62,000-63,000 mt of tomatoes per year, making it the biggest project in Russia,” explained Alexander Rudakov, president of the company.

“The project in Kabardino-Balkaria will be the largest in the region. 2,000 jobs will be created. There will be a large distribution center, as well as packaging equipment. It will be a mega-complex of modern greenhouses, but we will not put robots to harvest the tomatoes because the region needs jobs. Even if it is more profitable for everyone, we will automate as much as possible to make people’s work easier.”

500,000 mt of tomatoes are imported each year in Russia. “The Russian chains are pleased to take the Russian product. It is delicious and keeps longer, so the demand is high. We expect to get 63 kg of tomatoes per square meter from February until December. Then, we will gradually transfer the areas to raspberries, strawberries and blueberries,” explains Alexander Rudakov.

“The project will be amortized in 10 years. There are always risks, but those risks are comparable to the opportunities. Over the years, we have had no problem with ECO-culture regarding payments. They have been reliable partners and we are ready to get into other projects, including other regions,” explained Igor Yatsuk, TASS deputy director of the regional branch of the Russian Agricultural Bank.

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Russia’s Greenhouse Vegetable Production Grows by 24%

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According to the operational data of the regional agro-industrial complex management bodies, as of June 10, 2020, 604,600 MT of vegetables were harvested in winter greenhouses, which is 24% more than in the same period of 2019 (487,500 MT). Out of that, greenhouse cucumbers account for 406,200 MT (+22.5%) and tomatoes for 188,000 MT (+26.9%).

Traditionally, the Lipetsk, Moscow, Volgograd, Kaluga, Stavropol, and Krasnodar regions are leaders in the protected cultivation of vegetables.

The Russian Ministry of Agriculture is systematically working to improve state support and regulations for the agricultural market in order to increase the country’s agricultural production, meet its domestic needs, and develop its export potential.

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Imports of Turkish Greenhouse Vegetables Rose to 29,300 MT in the beginning of 2020

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The volume of supplies of greenhouse vegetables from Turkey to the Russian market amounted to 29,300 MT, worth $28 million, in the beginning of 2020.

According to ROIF Expert agency, that due to the sharp increase in supplies, Turkish companies have surpassed the largest exporters of this product category – Azerbaijan and China.

As of the agency report “Condition and analysis of the greenhouse industry in Russia: research and forecast until 2024”, the import of Turkish vegetables has grown by 20 times in 2016-2019. Last year, Turkey increased the sales of greenhouse vegetables to the Russian market by $66.2 million.

Turkish exporters increased their presence on the Russian market despite a 5.3% overall decline in imports in this category in volume terms in 2019. Meanwhile, the Russian producers of greenhouse vegetables increased the production volumes by 471,500 MT, with an increase of greenhouse areas by 36.9%, in 2016-2019.

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Russia Expects a Record Vegetable Production in 2020

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389,300 mt of vegetables have been harvested in greenhouses in Russia up until April 28, 2020, which is 29.4% more than in the same period of 2019. Specifically, the greenhouse cucumber harvest amounted to 274,600 tons (+30%), and that of tomatoes stood at 107,600 tons (+30%).

This year, the Russian Ministry of Agriculture expects a record production of greenhouse vegetables that could reach at least 1.25 million tons; 9.6% more than in 2019. This growth is due to investments made in the modernization of greenhouses and in the construction of new ones, according to the director of the National Union of Fruit and Vegetable Producers, Mikhail Glushkov. In the last five years, more than 1,100 hectares of greenhouses have been built in the country.

Russia’s objective is to become self-sufficient in the supply of vegetables. At the moment, it is already able to meet 90% of the cucumber demand and 60% of the tomato one. Meanwhile, the veto on European fruit and vegetable productions, introduced in August 2014, is still in force.

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An Increase of 33% in Greenhouse Vegetable Production in Russia

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As of March 17, 2020, 198,400 MT of vegetables were harvested in winter greenhouses, which is 33.6% higher than in 2019 (148,500 MT). The yield of greenhouse cucumbers is 142,000 MT (+42%), tomatoes – 52.500 MT (+ 17.7%), green crops – 3,900 MT (+39, 2%).

In 2019, the gross harvest of vegetables in winter greenhouses amounted to a record of 1.14 million MT. This is 14% more than in 2018 and 26.7% more than the average for the last five years. The leading regions are the Lipetsk, Moscow, Krasnodar, Stavropol, and Volgograd regions.

This year, the Ministry of Agriculture of Russia also expects a record production of greenhouse vegetables – at least 1.25 million MT, which is 6.1% higher than in 2019.

Over 5 years, more than 1,200 hectares of high-tech greenhouse complexes have been built and modernized. Production volumes have increased by 87.9% compared to 2014. By 2025, the Ministry of Agriculture plans to increase the production of greenhouse vegetables to 1.6 million MT.

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Russia Harvests Almost 1 million MT of Greenhouse Vegetables in First Nine Months of 2019

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In the first nine months of 2019, Russian producers harvested 966,700 MT of vegetables grown in protected agricultural production, out of which 897,000 MT were cultivated in winter greenhouses. This is 13.5% more than the figure reached in 2018 (790,400 MT). According to the report, as of October 22, 2019, 547,700 MT of greenhouse cucumbers had been harvested, which is 12.8% more than in the same period of 2018 (485,500 MT). Also, the tomato volume stood at 336,800 MT, which is 15.2% more than in 2018 (292,400 MT).

This year, the Ministry of Agriculture of Russia expects a record volume of vegetable production in winter greenhouses: 1.2 million MT. This is 18% higher than the target (1.02 million MT) and 20% more than in 2018 (1 million MT).

The leaders in the production of greenhouse vegetables are the Krasnodar and Stavropol Territories, the Lipetsk and Moscow Regions, and the Republic of Bashkortostan.

In recent years, the Russian greenhouse vegetable growing industry has given a significant boost to investment. Over the past five years, more than 1 thousand hectares of high-tech greenhouse complexes have been built and modernized. In 2018, 350 hectares of greenhouses were commissioned and modernized. The total acreage of ​​winter greenhouses over the years has increased to 2.5 thousand hectares, which is a quarter more than in 2014.

Considering that, in terms of performance, the new greenhouses do significantly better than previously built ones, the production volumes have increased by 65% ​​compared to 2014. By 2025, the Ministry of Agriculture expects the production of greenhouse vegetables to reach 1.5 million MT.

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Considerable Reduction of Russia’s Greenhouse Vegetable Imports

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In January 2019, Russia imported minimal volumes of greenhouse vegetables compared to the past three years, according to analysts from EastFruit. Compared with January 2018, the value of greenhouse tomato, pepper and cucumber imports decreased by 15.2%, down to $ 79.5 million.

The drop in terms of volume was similar, with imports also falling by 15.2%. Tomato shipments totaled only 37,400 MT, which is 10.2% less than a year earlier. Those of peppers reached 14,700 MT (20.3% less), and those of cucumbers stood at 11,900 MT (22.6% less).

In January 2019, pepper and tomato shipments to Russia still exceeded the figures reached in the first month of 2017; however, the import of cucumbers continued to decline for the fifth consecutive year, falling to a record low figure (at least for the past few years).

Speaking about the reasons for the decline in imports, EastFruit analysts point to two main ones: the declining incomes of the Russian population (together with the rising VAT rates), and the growth of the country’s own greenhouse vegetable production.

Russia’s largest suppliers of greenhouse tomatoes in January 2019 were Azerbaijan, Morocco, Turkey, China and Iran. Azerbaijan, Turkey and Iran sharply increased their tomato exports to Russia compared with the same month last year, while Morocco and China, on the contrary, sharply reduced their supply volumes.

Israel was the clear leader in the delivery of peppers to Russia in January, well ahead of China and Turkey. Meanwhile, Iran exported mostly cucumbers to Russia; four times more than China.

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Russia’s Annual Greenhouse Tomato Production Reached 380,000 MT

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In the 2017-2018 campaign, Russia’s average production of greenhouse tomatoes amounted to 380,000 MT. The statistics have been provided by researchers of the marketing agency ROIF Expert in the report “Greenhouse Tomatoes in Russia: Maximizing Production”.

It is worth noting that the share of greenhouse tomatoes in the market has reached 45%. The main market trend has been the sharp growth in the share of tomatoes against the background of a reduction in the share of cucumbers. The gross tomato harvest in 2017-2018 grew by almost 25%, while the production of greenhouse cucumbers by only 0.2%.

According to a ROIF Expert, the most negative aspects affecting the development of greenhouse tomato production in Russia until 2023 will be the depreciation of fixed assets, the high capital costs for the construction of new greenhouse complexes, the increased competition between Russian and foreign suppliers in the vegetable market, or the pressure from federal retailers. Many will also be affected by infrastructure or logistics problems.

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Russian Cucumber and Gherkin Production up by 14%

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The total production of cucumbers and gherkins in Russia has grown by 14%, from 1.70 million MT to 1.94 million MT , as reported by RBC, citing data from the “Analysis of the cucumber and gherkin market in Russia,” prepared by BusinesStat.

In general, for the years 2014-2016, the production of cucumbers and gherkins in both the open ground and indoors has increased annually.

Cucumbers and gherkins grown in the open ground still keep a dominant share of the total production; however, that share has been falling annually. Thus, in 2013, they accounted for 62.8% of the total volume, and in 2017 this figure had already dropped to 53.7%. The share of greenhouse vegetable products, on the contrary, has increased during the period at hand, from 37.2% of the total gross yield to 46.3%.

According to analysts at BusinesStat, in the next 4 years, production of cucumbers and gherkins in Russia will increase annually by 3.0-3.7%. By 2022, the figure will reach 2.28 million MT and exceed the level of 2017 by 17.8%. According to the forecast, the production of cucumbers and gherkins in greenhouses will grow at a higher rate than those cultivated in the open ground. In 2022, the gross harvest of cucumbers and gherkins in greenhouses will reach 53.9% of the total, while the gross harvest in the open ground will be 46.1%, respectively.

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Russia Expects Record Vegetable Harvest in 2018

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The Russian Ministry of Agriculture has estimated that this year will be a 10-year record with regard to the vegetable harvest. The Ministry Press Service stated that by the end of 2018, Russia will produce one million MT of greenhouse vegetables. This will be an increase of 12.3 percent compared to last year, Izvestia reported.

The increase in yields, as stated by the Ministry of Agriculture, is linked to the introduction of new and modernized winter greenhouses. This was made possible by investments, credits and the reimbursement of their construction costs by the state.

Experts believe that a bumper harvest will not affect the prices of the domestic products. The Ministry of Agriculture plans to increase the production of greenhouse vegetables to 1.5 million MT by 2024.

As of October 30, 2018, the gross yield of greenhouse vegetable crops in Russia amounted to 820.1 thousand tons, which is 25.7% more than in the same period of 2017. This has been reported by the press service of the Ministry of Agriculture of the Russian Federation, according to “APK-Inform: vegetables and fruits.”

The Ministry’s report reveals that the cucumber production reached 496.8 thousand tons by October 30, which is 15% more than on the same date of the previous year. At the same time, the tomato production exceeded last year’s figures by 47% and amounted to 310 thousand tons. Lastly, the production volume of the remaining vegetable crops reached 13 thousand tons, and this is 30% more than on the same date a year ago.

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