Greenhouse leaders launch gardening projects

Kommersant reports on the new trend in Russian agricultural business: the largest greenhouse market players are now getting engaged in gardening and launching new projects over the territory of the country. The article of July 8, 2019, describes the major greenhouse businesses’ promising initiatives in the field of gardening and, in particular, the ones undertaken by APH “ECO-Culture”.

“Kommersant informs that successful greenhouse complexes of the country are willing to keep up with the competition from “ECO-Culture” and they are now ready to invest about one hundred million rubles in the gardening direction. However, the company shareholders are afraid that they may miss the right moment to enter the market.

Meanwhile, the APH already has successful experience in the field of gardening. Aside from greenhouses with a total area of more than 145 hectares, the company plans to deploy a superintensive technology on 800 hectares of gardens. The amount of investment in this initiative is expected to exceed 5 billion rubles. The first stage of planting will begin in autumn 2019, as was announced by Sergey Fomenkov, the company’s Vice President for Strategic Development and Marketing.

The newspaper’s analysts conducted a small study of the apple market in our country and came to the conclusion that this direction is very promising in terms of import substitution. At the moment Russia remains the largest apple supplier on the global market, but producers intend to concentrate on the domestic market and increase the volume of apple supplies by nearly 11% in the nearest future.

The super-intensity gardens are usually yielding a fifth or sixth season after planting. Meanwhile, a few large gardening projects have already been operating in the country since 2014. Once the production volume achieves industrial levels, these gardens may occupy a significant part of the Russian domestic market. In a few years, these will be joined by ECO-Culture’s and other agricultural holdings’ garden complexes.

The article also evaluates the investment cost of super-intensity garden planting: it amounts to 3.5-4 million rubles per hectare, while the expected yield is 50 tons of apples per season.

Source: the article in Kommersant newspaper №117 of July 8, 2019.