Russian greenhouse business has perspectives for growth

The specialists of АО «Corporation «Razvitiye» have prepared an analytical report on «Production of protected ground vegetables in Russian Federation», reflecting the current situation in the industry and its further development trends.

The document presents key macroeconomic indicators of protected ground vegetables production in Russia: dynamics of Russian greenhouse industry performance (agricultural enterprises); dynamics of greenhouse vegetables production per capita in Russia; key performance indicators of the leading greenhouse complexes in Belgorod region; the import volume of protected ground vegetables in 2013-2015; protected ground vegetables price dynamics in 2013-2016; dynamics and forecast of greenhouse vegetables consumption in advanced countries and Russia; protected ground vegetables sale indices in 2015. The report also contains analytical conclusions on country’s economic processes.

Moreover, the report includes information about implemented and perspective projects for construction and reconstruction of greenhouse complexes in Russia, core achievements in import substitution program implementation, information about leading and outsider regions of Russian rating in the area of greenhouses (winter and spring), used for production of protected ground vegetables, furthermore, the share of Belgorod region in the Russian greenhouse vegetable market is determined.

The individual unit is focused on government support measures, provided by federal and regional laws and stipulating the greenhouse vegetables production industry after adopting the national program «Development of greenhouse vegetables production in Russian Federation within 2012—2020».

The analysis findings about Russian greenhouse vegetables production is a piece of structured, capacious and distinct information from public sources, enabling to develop a full picture of the Russian greenhouse industry development.

Thus, the 2015 greenhouse vegetable market analysis has demonstrated that currently the greenhouse sector in Russia has moved to a new intensive stage of development. The greenhouse business today is not just a trend, it is a profitable investment and business diversification niche. A growing number of potential investors and industrial greenhouse initiators are becoming active, the majority of which have not considered the greenhouse industry as attractive business platform earlier. According to the experts estimates, the domestic companies specialising in vegetable production, are well capable of increasing the production capacities. However, it requires the commissioning of 500 ha greenhouses annually. Another important factor is innovative production.

In six years, according to the data of Rosstat, the bulk yield of open and protected ground vegetables has increased by 13%. At that, in the last three years only this index grows at equal pace – 9,7%.

The overall production amount of open and protected ground vegetables in Russia at the end of 2015 in the industrial vegetable cultivation sector (agricultural organizations and farms) totalled 722,8 thousand tons. Reported by the Ministry of Agriculture in 2015, Belgorod region rated 12 on the bulk yield of protected ground vegetables with the annual output as of 16,6 thousand tons and 8 on greenhouse areas — 71,0 ha.

However, despite the results already achieved, it is too early to speak about sufficient supply of domestic vegetables to Russian and Belgorod region population. High import dependence still remains.

By the projections of experts, the surplus of 1 million tons of greenhouse vegetables annually will allow to satisfy 85% of population’s needs.

Not only construction of new facilities, but also development and widespread adoption of resource-saving technologies and equipment, design solutions and quality of domestic components that enable enterprises to improve efficiency and produce high-quality vegetables, are becoming increasingly important. Uptake of innovations in protected ground crop production will allow the industry to become self-sufficient, steadily developing and able to provide import substitution and Russia’s food security in the long run. Thus, by 2020 Russia has a chance to reject vegetable imports.

Source: АО «Corporation «Razvitiye»