5-year boycott

25 September 2019

Greenhouse industry in the Russian Federation has demonstrated a significant growth for the last 5 years of the boycott.
The market of protected ground vegetables grows annually, greenhouse area increases by 1-4% every year. In 2014, total area of greenhouses comprised about 2300 ha, by the end of 2019 this number exceeded 2500 ha. Not only quantity but quality of greenhouses has improved. If five years ago the share of outdated greenhouses, which demanded modernisation, equalled about 70%, to date only 52% of greenhouses requires reconstruction.

Moreover, every year more and more cutting-edge greenhouse complexes are constructed. 260 ha of new greenhouses are planned to be implemented in 2019 and 250 ha are planned to be implemented in 2020.

The output of greenhouse vegetables has been growing together with the acreage. Annual increase of greenhouse vegetable yield comprises 13-14%. In 2018, the industry demonstrated especially successful results: protected ground vegetable production grew by about 20%.

In 2014, 66.8% of cucumbers and 20.2% of tomatoes were produced in the country, meanwhile, by 2019 these figures comprise 95% and 65% correspondingly. Total yield of greenhouse vegetables in Russia by the end of 2018 equalled 930 000 t, while, in 2014, this number comprised only 691 000 t. What is more, 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. Since 2014 a support programme for greenhouse industry was functioning. The programme allowed to receive financial support for the construction and modernisation of greenhouse complexes: 20% reimbursement of costs and preferential investment loans. This programme enabled to improve quality and quantity of greenhouse facilities. The government decided to change the programme in 2018. 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 boycott allowed Russia to focus on domestic greenhouse industry and implement a number of successful measures to boost protected ground vegetable production. The results, which the country has achieved for the last five years, enable to us 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 modernisation of greenhouses with the total investment of over than 240 bn RUB. 

The Greenhouse complexes Russia and the CIS Forum in Moscow will be holding 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.

More information: www.greenhousesforum.com

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