Russia ready to double greenhouse production


Despite the pandemic associated with this economic recession, the Russian Ministry of Agriculture has no plans to revise its earlier announced strategies for the doubling of area under greenhouses in the country within the next several years, according to recent statements by some senior officials of the ministry.

According to ministry data, last year’s total volume of greenhouse vegetable production in Russia amounted to almost 1.2 million tonnes, which is significantly higher than previous years’ figures.

At the end of 2019, the government set a target to double these figures by 2023-24. This is mainly due to the growing demand for these vegetables from local customers, as well as an interest for the implementation of such projects from investors.

The pandemic had sparked concerns from both the state and local investors about the possible suspension of the implementation of the majority of these investment projects.

According to Dmitry Patrushev with the Russian Ministry of Agriculture, implementation of these plans will be achieved by the allocation of both state and private investments in the sector, as well as the ongoing consolidation of the industry.

“So far, plans for a significant expansion of area under greenhouses in Russia have been announced by such leading local producers as agro-industrial holding EKO-culture, PJSC Magnit, GC Avilon, MC Gorkunov, MC Technologies of greenhouse growth, GC GreenInvest, Victoria Estate Group and some others,” said Patrushev. “At the same time, the Russian government plans to provide serious benefits to producers operating in this field which should help them to implement these plans.”

Part of these plans is allocating financial subsidies in both direct and indirect form to producers. In the case of direct subsidies, the allocated funds will cover up to 20 percent of their costs associated with the building of new greenhouses in Russia. In addition to subsidies is providing tax, customs and other benefits to domestic farmers, which operate in this market segment.

The government hopes the provision of these funds will speed building of new, modern greenhouses in Russia with the annual output of 100 kilograms (kg) of cucumber and 60-80 kg of tomatoes per square metre. At present, a significant part of vegetables in Russia is produced in technically outdated greenhouses, which has the annual capacity of only 35-37 kg of vegetables per square metre.

By Eugene Gerden for New Ag International

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