Interview with Sergey Fomenkov to the Interfax Group: The Drivers of Greenhouse Business in Russia

Sergey Fomenkov, Vice-President for Strategy and Marketing at ECO-Culture, has spoken to Interfax on the holding’s new initiatives in the Russian Federation and other countries, about business diversification and the impact of electricity prices on greenhouse profits.

The interview was published on August 9. The agency writes that the five-year embargo on import from the countries participating in the sanctions against Russia had a particularly favorable effect on our country’s greenhouse business. According to the Ministry of Agriculture, a record-high number of vegetables are since have been produced every year. This year, production is expected to increase up to 1.3 million tons, which is 200,000 tons more than last year.

Meanwhile, ECO-Culture, being the country’s leading agro-industrial complex which has succeeded in growing greenhouse vegetables in several regions of the country, is planning to launch a number of other projects in the nearest future. This is what Sergei Fomenkov said to Interfax. According to him, the company not only intends to increase production in greenhouses in Russia, Kazakhstan, Uzbekistan, and China but also to engage in such different industries as grain processing and confectionery production.

Vice-President for Marketing informed that right now the holding has evolved to a new level: greenhouse technologies are being improved, new complexes are being built, and other directions are being mastered. The immediate plans include the development of greenhouse facilities in the south of the country, the construction of greenhouses not only in Russia, but also in other countries, and grain processing in order to diversify the business and increase the company’s income.

S. Fomenkov explained why the company is aiming to expand overseas. The reason is more favorable conditions for running a business there. In particular, Kazakhstan is known for its soft energy policy, unlike Russia, where electricity prices are twice as high, being the real “killer of the entire economy”. China has problems with eco-friendly products: the Chinese are already willing to buy any agricultural products grown in Russia. It is also planned to export tomatoes to Europe and the Middle Eastern countries.

After that, Fomenkov told about the company’s profits and expenses consist of and about the cost-effectiveness of modern greenhouse business in Russia.

Read the full text of the interview on the Interfax website.