Dynamic developments in Russian greenhouse sector
Greenhouse industry in the Russian Federation has showed a significant growth for the last 5 years period of sanctions. The market of greenhouse vegetables grows annually: greenhouse area increases by 1-4% every year. In 2014, total area of greenhouses comprised about 2.300 ha, by the end of 2019 this number has exceeded 2.500 ha.
Not only quantity but quality of greenhouses has improved as well. Five years ago the share of outdated greenhouses demanding modernization totaled about 70%, today only 52% of greenhouses require reconstruction.
250 ha planned in 2020
Moreover, every year more and more modern greenhouse complexes are constructed. 260 ha of new greenhouses are planned to be built in 2019, and 250 ha are planned to be launched in 2020.
The output of greenhouse vegetables has been growing together with the acreage. Annual increase of greenhouse vegetable yield reaches 13-14%. In 2018, the industry showed significant results: protected soil vegetable production grew by about 20%.
In 2014, 66.8% of cucumbers and 20.2% of tomatoes were produced domestically, meanwhile, by 2019 these figures comprise 95% and 65% correspondingly. Total yield of greenhouse vegetables in Russia by the end of 2018 totaled 930 000 t, while, in 2014, this number comprised only 691 000 t. Moreover, in the upcoming 4-5 years the expected yield is about 1.5 m t.
Such striking results have been achieved due to strong state support of the industry as well. A special programme for supporting greenhouse industry started functioning in 2014. The programme allowed to receive financial support for the construction and modernization of greenhouse complexes which meant 20% reimbursement of costs and preferential investment loans. This programme enabled to improve quality and quantity of greenhouse facilities. However, in 2018 the government decided to change the programme. Cost reimbursement changed to 10%, while the term of preferential loans was prolonged from 8 to 12 years. In the upcoming future the measures of national support will be changed in accordance with the demands of the industry to continue further stimulation of growth.
Thus, the sanctions conditions made Russia to focus on domestic greenhouse industry and implement a number of successful measures to boost greenhouse vegetable production. The results, which the country has achieved for the last five years, enabled the experts to be optimistic about the future development of the industry. To date there are over 60 large ongoing and planned investment projects on the construction and modernization of greenhouses with the total investment of over 240 billion RUB (approximately 3.3 billion Euro).
Vostock Capital is holding the Annual Greenhouse Complexes Russia and the CIS Forum in Moscow for the fourth year already, and the interest in it continues to grow permanently due to the development and expansion of the greenhouse industry nowadays. The market is growing rapidly, and it demands new information, knowledge and experience exchange which is provided at the event where the key players of the industry are present.
More information about the next Annual Greenhouse Complexes Russia and the CIS Forum on December 4-5, 2019, can be found here: www.greenhousesforum.com