Vegetables

Sergey Galitsky will spend € 350 million for vegetables

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Sergey Galitsky, founder of the second largest Russian retail network “Magnit”, is planning to invest € 350 million in the agricultural development. He said that this is a key point to develop the network own agricultural production.

“We decided to grow local Kuban vegetables for our stores. Now we have the crop of cucumbers and tomatoes from 40 hectares, and for the next two years we plan to expand the area to 120 hectares”, – Sergey Galitsky said.

It will be one of the biggest agricultural complexes that produce vegetables in Europe.

The fact that “Magnit” would invest 8 billion rubles in the construction of the greenhouse complex to grow tomatoes and cucumbers in Dinsky district of Krasnodar region was reported in 2010. Then the experts believed that it would be difficult for the retail network to find consolidated suppliers of fresh vegetables which could supply all vegetables for the company.

Source: www.fruitnews.ru

Few greenhouse fruits and vegetables are grown in Russia

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According to the Ministry of Agriculture of Russia, for the last 3 years supply of imported greenhouse vegetables and fruits was about 900 TMT per year, while domestic greenhouses farms have grown only 37% of the required products.

Nikolai Fyodorov, Minister of agriculture, noted, beside the small volume of Russian greenhouse products, the low rate of greenhouses construction in Russia. The Minister also promised some subventions from the state, sponsoring the purchase of modern greenhouses.

Source: www.fruitnews.ru

The volume of world vegetable trade has grown 9 %

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In the year 2010 the quantum of world fresh vegetable trade has grown 9 % in volume terms. According to the materials of the marketing research of the world and Russian fresh vegetable market, the volume of world trade of potatoes and cabbage has grown most of all (12% and 15%). In general, potatoes, tomatoes and oniony vegetables dominate in the trade structure.

It is possible to say the same about the Russian fresh vegetable import. According to the calculations of the GLOBAL REACH CONSULTNG (GRC), tomatoes and potatoes make 23% of the whole volume of vegetables imported to the country. The vegetable import in the year 2010 has grown significantly, that is due to the slump of domestic production (the fresh vegetable croppage by the end of the year has shortened 25 %.

In order to elude the rapid price appreciation the government has even abolished the import taxes on potatoes and cabbage until June 2011. However, this measure hasn’t given the results expected, and the prices continued growing for all types of vegetables. During the first 2 months of the year 2011 the biggest price advance (by the level of January-February 2010) was observed on potatoes (+140% to the same period of the year 2010) and cabbage (+104%).

Source: www.fruitnews.ru

Russia: less import of traditional vegetables.

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Russia encourages foreign producers of traditional fresh fruit and vegetables for the sum of $5 milliards annually. This is the exact amount of fresh produce in monetary equivalent that is imported to the country, although such traditional vegetables as potatoes, cabbage and onions can be cultivated in the Russian climatic conditions. This evaluation of the industry was given by Tatyana Ghetman, head of Fruit-Inform Project, at the 4th International conference “Fruit & Vegetable Business of Russia – 2011” (in the frameworks of the World Food Moscow 2011, 13-16 September).

‘Russian growers have to develop their business in a very inhospitable environment: bank loans which are still difficult to access, annual growth of production expenses, and competition with imported production which intensifies gradually’, says Tatyana Ghetman.

Also, the expert remarked that according to all prerequisites, Russia will import very little due to the expected growth of its own production of the regular crops.

‘It is expected that we are going to reap an enormous harvest of potatoes, cabbage and onions this year. Taking into consideration the record low prices on the whole range of vegetables now and boom of storehouse construction across Russia and in neighboring countries, it is obvious that industry holders will face the only challenge of how not to suffer losses during the current season. And we are not touching upon the possibility of making money on storing’, Ghetman concluded.

Source: www.rgsco.ru

Russia may set quotas on off-season vegetable import

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Russian authorities are discussing the possibility of setting quotas on vegetable import during the off-season period, in order to support domestic producers of vegetables grown under cover, reports “Expert Online”. According to the executive director of the association “Russian Green-houses” Natalia Rogova, this idea had been considered during the discussion of the program of greenhouse facilities development, that had passed in the Ministry of Agriculture as part of the discussion of the State program of the agricultural development for the period 2013—2020.

Russian producers emphasize that despite higher quality, Russian production won’t be able to compete with cheap vegetables from Turkey, Spain, Iran and other countries. According to Natalia Rogova, the problem of quota settings can be solved in the proximate 2 or 3 years.

Source: www.lol.org.ua

North Korea in Russian lease negotiations

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North Korea and Russia are in talks for a massive Far East land lease deal for agricultural production.

North Korea has been in talks with Russia on plans to lease swathes of farmland in the country’s Far East to grow vegetables and grain.

A North Korean delegation, including the country’s leader Kim Jong-il, visited Russia last month and last week held talks with authorities in the Amur region on the plan, reported Russian news agency RIA Novosti.

The proposed deal is for the lease of around 200,000ha of idle land in Amur, largely to produce grain, but also vegetables. The deal has an added importance following heavy rains in North Korea in June and July, which reportedly caused significant damage to the country’s agricultural production.

“The North Korean authorities are planning an unprecedented agricultural project – to create a farm in the Far East to grow soybeans, potatoes, corn and other crops,” an unnamed regional Russian official told RIA Novosti.

“Everything that Korean citizens need, because the issue of food shortages there are acute from time to time due to land shortages.”

The proposal requires the North Korean company formed to manage the land must be registered in Amur, and the initial lease cost of the land comes to around 50 rubles (US$1.70) per hectare.

The North Korean delegation will reportedly consider the terms of the lease next week, the report said.

Source: www.fruitnet.com