Considerable Reduction of Russia’s Greenhouse Vegetable Imports

In January 2019, Russia imported minimal volumes of greenhouse vegetables compared to the past three years, according to analysts from EastFruit. Compared with January 2018, the value of greenhouse tomato, pepper and cucumber imports decreased by 15.2%, down to $ 79.5 million.

The drop in terms of volume was similar, with imports also falling by 15.2%. Tomato shipments totaled only 37,400 MT, which is 10.2% less than a year earlier. Those of peppers reached 14,700 MT (20.3% less), and those of cucumbers stood at 11,900 MT (22.6% less).

In January 2019, pepper and tomato shipments to Russia still exceeded the figures reached in the first month of 2017; however, the import of cucumbers continued to decline for the fifth consecutive year, falling to a record low figure (at least for the past few years).

Speaking about the reasons for the decline in imports, EastFruit analysts point to two main ones: the declining incomes of the Russian population (together with the rising VAT rates), and the growth of the country’s own greenhouse vegetable production.

Russia’s largest suppliers of greenhouse tomatoes in January 2019 were Azerbaijan, Morocco, Turkey, China and Iran. Azerbaijan, Turkey and Iran sharply increased their tomato exports to Russia compared with the same month last year, while Morocco and China, on the contrary, sharply reduced their supply volumes.

Israel was the clear leader in the delivery of peppers to Russia in January, well ahead of China and Turkey. Meanwhile, Iran exported mostly cucumbers to Russia; four times more than China.

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Russia’s Annual Greenhouse Tomato Production Reached 380,000 MT

In the 2017-2018 campaign, Russia’s average production of greenhouse tomatoes amounted to 380,000 MT. The statistics have been provided by researchers of the marketing agency ROIF Expert in the report “Greenhouse Tomatoes in Russia: Maximizing Production”.

It is worth noting that the share of greenhouse tomatoes in the market has reached 45%. The main market trend has been the sharp growth in the share of tomatoes against the background of a reduction in the share of cucumbers. The gross tomato harvest in 2017-2018 grew by almost 25%, while the production of greenhouse cucumbers by only 0.2%.

According to a ROIF Expert, the most negative aspects affecting the development of greenhouse tomato production in Russia until 2023 will be the depreciation of fixed assets, the high capital costs for the construction of new greenhouse complexes, the increased competition between Russian and foreign suppliers in the vegetable market, or the pressure from federal retailers. Many will also be affected by infrastructure or logistics problems.

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Russian Cucumber and Gherkin Production up by 14%

The total production of cucumbers and gherkins in Russia has grown by 14%, from 1.70 million MT to 1.94 million MT , as reported by RBC, citing data from the “Analysis of the cucumber and gherkin market in Russia,” prepared by BusinesStat.

In general, for the years 2014-2016, the production of cucumbers and gherkins in both the open ground and indoors has increased annually.

Cucumbers and gherkins grown in the open ground still keep a dominant share of the total production; however, that share has been falling annually. Thus, in 2013, they accounted for 62.8% of the total volume, and in 2017 this figure had already dropped to 53.7%. The share of greenhouse vegetable products, on the contrary, has increased during the period at hand, from 37.2% of the total gross yield to 46.3%.

According to analysts at BusinesStat, in the next 4 years, production of cucumbers and gherkins in Russia will increase annually by 3.0-3.7%. By 2022, the figure will reach 2.28 million MT and exceed the level of 2017 by 17.8%. According to the forecast, the production of cucumbers and gherkins in greenhouses will grow at a higher rate than those cultivated in the open ground. In 2022, the gross harvest of cucumbers and gherkins in greenhouses will reach 53.9% of the total, while the gross harvest in the open ground will be 46.1%, respectively.

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Russia Expects Record Vegetable Harvest in 2018

The Russian Ministry of Agriculture has estimated that this year will be a 10-year record with regard to the vegetable harvest. The Ministry Press Service stated that by the end of 2018, Russia will produce one million MT of greenhouse vegetables. This will be an increase of 12.3 percent compared to last year, Izvestia reported.

The increase in yields, as stated by the Ministry of Agriculture, is linked to the introduction of new and modernized winter greenhouses. This was made possible by investments, credits and the reimbursement of their construction costs by the state.

Experts believe that a bumper harvest will not affect the prices of the domestic products. The Ministry of Agriculture plans to increase the production of greenhouse vegetables to 1.5 million MT by 2024.

As of October 30, 2018, the gross yield of greenhouse vegetable crops in Russia amounted to 820.1 thousand tons, which is 25.7% more than in the same period of 2017. This has been reported by the press service of the Ministry of Agriculture of the Russian Federation, according to “APK-Inform: vegetables and fruits.”

The Ministry’s report reveals that the cucumber production reached 496.8 thousand tons by October 30, which is 15% more than on the same date of the previous year. At the same time, the tomato production exceeded last year’s figures by 47% and amounted to 310 thousand tons. Lastly, the production volume of the remaining vegetable crops reached 13 thousand tons, and this is 30% more than on the same date a year ago.

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Gross Harvest of Greenhouse Vegetables in Russia Grew Almost by 40% as of End of April

According to reports of the Ministry of Agriculture of the Russian Federation, the gross harvest of greenhouse vegetables as of April 28 was 235,200 MT, that is 39.5% more than in 2017 (168,500 MT) .

179,300 MT of cucumbers (27,7% more than in 2017), 51,800 MT of tomatoes (2 times more), and 4,100 MT of other vegetables (17,1% more) were produced.

The leaders in the production of greenhouse vegetables were Krasnodar region (22,800 MT), the Moscow region (17,700 MT), the Republic of Tatarstan (16,600 MT), Stavropol region (16,500 MT), and Lipetsk region (16,000 MT).

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Russia’s Self-Sufficiency in Greenhouse Veg Production Exceeded 53% Last Year

Russia’s self-sufficiency in greenhouse vegetable production exceeded 53% last year, but it will be necessary to build another 1.5 thousand hectares of greenhouses in order to completely cover Russia’s domestic needs.

In 2017, agricultural producers received 118 billion rubles in preferential loans. This is 25% of the total volume of concessional loans. Such support will make it possible to build 50 greenhouse complexes with a total area of ​​650 hectares, which will increase the annual vegetable production by 500 thousand MT.

The Minister of Agriculture pointed out that the state support for vegetable growers also includes compensating investors for 20% of the costs incurred.

“Over the past 3 years, we have given support to 56 investment projects with a total of more than 400 hectares of greenhouses. All this should facilitate the task of replacing imported greenhouse vegetables with Russian product within the next 3-4 years,” said A. Tkachev.

Every year, the greenhouse complex in the Moscow region which the minister visited grows 27 thousand MT of tomatoes, 15 thousand MT of cucumbers and 1 thousand MT of sweet peppers. The cutting-edge technologies used in the complex allow it to compete successfully with imports, supplying fresh and quality products to Russian stores.

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Greenhouse Vegetables Harvest Grew by Almost 14% in Russia

As of November 28, gross harvest of greenhouse vegetables in Russia was 690,100 MT, which is 13.6% more than in the same period last year (to compare – in 2016 it was 607,100 MT) as it was reported by the press service of the Ministry of Agriculture of the Russian Federation.

450,200 MT of cucumbers were harvested (in 2016 – 409,400 MT) and 229,000 MT of tomatoes (in 2016 – 182,500 MT). The yield of other vegetable crops was 10,900 MT (in 2016 – 15,200 MT).

The leading regions in the production of greenhouse vegetables are Krasnodar region (82,000 MT), Stavropol region (61,000 MT), the Republic of Tatarstan (41,700 MT), the Republic of Bashkortostan (39,200 MT), and Lipetsk region (33,700 MT).

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More Greenhouse Vegetables in Russia

Russian greenhouse complexes continue to increase the gross harvest of vegetables, according to the Ministry of Agriculture of the Russian Federation. The total yield of greenhouse vegetable as of November 29 amounted to 607,100 MT in the whole country, which is 31% more than the year before. In particular, the yield of cucumber increased by 23% and amounted to 409,400 MT. Total harvest of tomatoes amounted to 182,500 tons, which is 53% more than the same period last year.

The Ministry of Agriculture suggests postponing lifting the ban for Turkish tomatoes import until 2018-19 to protect Russian tomatoes production. After the ban, tomatoes production increased by 35%.  Just to compare, in 2012 Russian tomatoes had the share of the market 17% and in 2016 it is expected to be 40%.

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Tyumen region to build greenhouse for 2.2 billion Roubles

The Tyumen branch of one of Russia’s banks is funding the construction of the largest greenhouse complex for growing vegetables in the region. According to the press service of the Tyumen government, the project, initiated by the company Technology Hothouse Growth LLC, will make use of the latest high-tech Dutch greenhouse technology. The first stage is scheduled for September 2014 and it will enable Tyumen to increase the volumes and quality of its greenhouse production.

The complex will be located 38 kilometres from Tyumen, in the village of Narimanovo, and has an area of 11 hectares, of which 7.5 hectares will be devoted to cucumbers, 2.5 hectares for tomatoes and 1 hectare for lettuce and seedlings. The project budget is of more than 2.2 billion Roubles, of which 1.9 billion will be loaned by banks.

“This ambitious project is very significant for the Tyumen region, as not only will it permit the uninterrupted supply of vegetables for the area, but will also create more than 180 jobs,” said the director of the Tyumen regional branch of the bank funding the project, Dmitry Pushkarev.

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Russian greenhouse vegetables increased in 2013

Russia’s greenhouse vegetable cultivation industry in 2013 is on the rise. The greenhouse vegetable production has increased by 6.7% in 2013 as compared with 2012. According to the Russian Federation National Bureau of Statistics, the total output growth rate is the highest in the region of Ural in 2013 with an increase of 28%.

Vegetable greenhouses in the Volga Federal District have maintained a leading position in vegetable production in 2013. With a production output of 184,000 tons, they produce tomatoes, cucumbers and green vegetables.

Analysts in the Russian Central Federal District indicated that the greenhouse market situation is developing and consumer demands are increasing. More investors are investing in the vegetable greenhouses in the south of Russia. They estimate that in the next three years, the industrial greenhouses and vegetable production southern Russia will be significantly improve and develop.

Currently most of the fresh vegetables in Russia have been imported from abroad. High demand for fresh fruits and vegetable normally come from the capital city of Moscow during the low season.

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