MARKET STUDY
GREENHOUSE SECTOR
IN THE RUSSIAN FEDERATION
AND KAZAKHSTAN REPUBLIC
January 2020
1 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 CONTENT METHODOLOGY ...... 5 THE RUSSIAN FEDERATION ...... 9 1 GREENHOUSE SECTOR SITUATION ...... 9 1.1 RUSSIA IN THE WORLD ...... 9 1.2 AREA AND STRUCTURE OF GREENHOUSES IN RUSSIA...... 10 1.3 MAIN TYPES OF PRODUCTS ...... 13 1.4 BRIEF OVERVIEW OF THE SECTORS ...... 14 1.4.1 PRODUCTION OF GREENHOUSE VEGETABLES ...... 14 1.4.2 PRODUCTION OF CUT FLOWERS ...... 16 1.4.3 PRODUCTION OF SEEDLINGS AND POTTED PLANTS ...... 21 1.5 PRODUCTION OF GREENHOUSE GROWN VEGETABLES IN THE RUSSIAN FEDERATION ...... 24 1.5.1 DYNAMICS OF PRODUCTION OF GREENHOUSE GROWN VEGETABLES, STRUCTURE BY TYPES OF PRODUCERS ...... 24 1.5.2 STRUCTURE OF PRODUCTION BY CROPS (CUCUMBERS, TOMATOES, OTHERS) ...... 25 1.5.3 STRUCTURE OF PRODUCTION BY REGIONS ...... 29 1.5.4 YIELD OF VEGETABLES ...... 31 1.6 FOREIGN TRADE DURING 2013-2018 ...... 33 1.6.1 IMPORT ...... 33 1.7 REGULATIONS RELATED TO PRODUCTS ORIGINATING FROM THE EEU ...... 37 1.8 MARKET CAPACITY AND CONSUMPTION ...... 37 1.8.1 MARKET CAPACITY AND SHARE OF IMPORTS ...... 37 1.8.2 CONSUMPTION ...... 38 1.9 THE LARGE RUSSIAN PRODUCERS OF GREENHOUSE VEGETABLES ...... 39 1.9.1 THE LARGE PRODUCERS ...... 39 1.9.2 THE STRUCTURE OF PRODUCERS BY THE VOLUME OF PRODUCTION ...... 39 1.9.3 THE LARGE GREENHOUSE HOLDINGS ...... 40 1.9.4 THE LARGE INDEPENDENT PRODUCERS OF GREENHOUSE VEGETABLES (NOT INCLUDED INTO THE AGRICULTURAL HOLDINGS) ...... 46 1.10 GOVERNMENT SUPPORT ...... 48 1.11 PERSPECTIVES OF THE GREENHOUSE SECTOR. INVESTMENT PROJECTS .... 50 1.11.1 PERSPECTIVES OF THE GREENHOUSE SECTOR ...... 50 1.11.2 INVESTMENT PROJECTS ...... 52 1.12 THE FEATURES AND PROBLEMS OF GREENHOUSE SECTOR ...... 55 1.12.1 THE FEATURES OF THE GREENHOUSE SECTOR ...... 55 1.12.2 THE PROBLEMS OF THE GREENHOUSE SECTOR ...... 55 1.13 SWOT–ANALYSIS OF THE GREENHOUSE SECTOR IN RUSSIA ...... 56 1.14 INTERMEDIATE CONCLUSIONS ...... 56 2 PRODUCT CATEGORIES ...... 58
2 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.1 INVESTMENT AND OPERATING COSTS FOR PROJECTS ...... 58 2.1.1 INVESTMENT COSTS ...... 58 2.1.2 OPERATING EXPENSES ...... 60 2.2 PROPAGATION MATERIAL ...... 62 2.3 GREENHOUSE CONSTRUCTION ...... 70 2.4 HEATING & POWER EQUIPMENT...... 80 2.5 CLIMATE CONTROL AND (LED) LIGHTING ...... 84 2.6 INPUT FOR CROP GROWING ...... 92 2.7 GREENHOUSE MATERIAL...... 100 2.8 AUTOMATIZATION AND CONTROL SYSTEMS ...... 105 2.9 CROP PROTECTION ...... 107 2.10 AFTER HARVEST LINES ...... 113 2.11 LOGISTICS OF PLANT PRODUCTS ...... 120 2.12 CONSULTANCY ...... 123 2.13 INTERMEDIATE CONCLUSIONS ...... 128 3 GUIDE TO MARKET ENTRY ...... 134 THE REPUBLIC OF KAZAKHSTAN ...... 138 4 GREENHOUSE SECTOR SITUATION ...... 138 4.1 THE AREA OF GREENHOUSE FOR GROWING OF GREENHOUSE VEGETABLES138 4.2 GROSS PRODUCTION OF GREENHOUSE VEGETABLES...... 140 4.3 IMPORT AND EXPORT OF GREENHOUSE VEGETABLES ...... 142 4.3.1 IMPORT ...... 142 4.3.2 EXPORT ...... 142 4.4 MARKET VOLUME AND CONSUMPTION ...... 143 4.4.1 MARKET VOLUME AND IMPORT SHARE ...... 143 4.4.2 CONSUMPTION ...... 143 4.5 GROWING AREA AND GROSS COLLECTION OF PROTECTED GROUND CUT FLOWERS 146 4.6 CUT FLOWERS FOREIGN TRADE ...... 147 4.6.1 IMPORT ...... 147 4.6.2 EXPORT ...... 148 4.7 CUT FLOWERS MARKET VOLUME ...... 148 4.8 THE LARGE PRODUCERS ...... 149 4.8.1 THE LARGE PRODUCERS OF GREENHOUSE VEGETABLES ...... 149 4.8.2 BIG FLOWER PRODUCERS ...... 152 4.9 STATE SUPPORT ...... 154 4.10 PERSPECTIVES OF GREENHOUSE SECTOR ...... 155 4.11 INVESTMENT PROJECTS ...... 157
3 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.12 SPECIFIC FEATURES AND PROBLEMS OF THE INDUSTRY ...... 159 4.12.1 SPECIFIC FEATURES OF THE INDUSTRY ...... 159 4.12.2 CHALLENGES IN THE GREENHOUSE SECTOR ...... 161 4.13 SWOT–ANALYSIS OF THE GREENHOUSE SECTOR ...... 161 4.14 INTERMEDIATE CONCLUSIONS ...... 162 5 PRODUCT CATEGORIES ...... 163 5.1 TYPES AND CONSTRUCTION COST OF GREENHOUSES ...... 163 5.2 PROPAGATION MATERIAL ...... 164 5.3 GREENHOUSE CONSTRUCTION ...... 165 5.4 HEATING & POWER EQUIPMENT...... 167 5.5 СLIMATE CONTROL AND (LED) LIGHTING ...... 168 5.6 INPUT FOR CROP GROWING ...... 170 5.7 GREENHOUSE MATERIAL...... 173 5.8 AUTOMATIZATION...... 174 5.9 CROP PROTECTION ...... 175 5.10 AFTER HARVEST LINES ...... 179 5.11 LOGISTICS OF PLANT PRODUCTS ...... 181 5.12 CONSULTANCY ...... 182 5.13 INTERMEDIATE CONCLUSIONS ...... 185 6 GUIDE TO MARKET ENTRY ...... 187 ADDENDUM 1. INVESTMENT PROJECTS – GREENHOUSE PRODUCTION ...... 188 ADDENDUM 2. INVESTMENT PROJECTS VEGETABLE GREENHOUSE PRODUCTION IN RUSSIA ...... 207 "MANAGEMENT COMPANY TEKHNOLOGII TEPLICHNOGO ROSTA" (MK TTR) ...... 207 "DOLINA OVOSHCHEJ Group” ...... 208 LTD "GORKUNOV GROUP"...... 208 «Renova» Group ...... 209 LTD "Holding UMMC-Agro" ...... 209 ADDENDUM 3. KEY CONTACTS IN RUSSIA AND KAZAKHSTAN ...... 213 ADDENDUM 4a. KEY CONTACTS & EXHIBITIONS RUSSIA ...... 221 ADDENDUM 4b. KEY CONTACTS & EXHIBITIONS KAZAKHSTAN...... 222
4 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 METHODOLOGY
INTRODUCTION
The Russian Federation and Kazakhstan have been actively developing their agricultural sectors since 2014 contributing to the diversification of their countries' economies.
The last few years were among the most successful years for Russia's greenhouse industry. Over 250 ha of new commercial greenhouses were built or constructed, the number of semiclosed greenhouses increased. Further expansion and modernization of greenhouse area is expected - new projects are set to be launched in the Moscow, Rostov, Lipetsk regions, and many other regions across the country. Given the current situation in the Russian greenhouse industry with the development of the latest technologies, the implementation of new import restrictions and customs regulations on fresh produce, indoor cultivation of fresh produce will continue to expand. Experts agree that the greenhouse sector presents various opportunities to reduce investment risks and significantly improve production performance by extending the growing season. The Russian National Fruit and Vegetable Union estimates that by maintaining the present restrictions and industry's state support, Russia will be able to reach almost 100% of greenhouse vegetables self-sustainment capability around 2020. However, despite the private and public investors' interest and commitment, Russian greenhouse technology developers are incapable of meeting the customers' needs. They have a hard time to keep up with the industry's growth. Project initiators want to cooperate with international greenhouse and horticulture experts from countries such as the Netherlands, Israel, Germany, Italy, and other leaders of the greenhouse industry and rely on their expertise and competence.
Kazakhstan has a huge agricultural potential. Today's horticulture sector in Kazakhstan has made significant steps towards a smarter high-tech industry. Turkestan (former South Kazakhstan) region is a leader of greenhouse industry in Kazakhstan. The total area of all greenhouses here makes up 800 hectares which is 67% of the total area of greenhouses in Kazakhstan. While horticulture in some parts of Kazakhstan is still considered to be primitive, in the rest of the country (like Almaty, Aktobe and Nur Sultan region) the number of Korean, Chinese, Dutch and other hyper modern greenhouses has risen in a relatively short period of time.
Almost a century of horticultural history has helped make the Dutch true experts in greenhouse manufacturing. This wealth of experience has enabled The Netherlands to become the global market leader in the construction of greenhouses as well as in the cultivation of flowers, plants and vegetables. With an increasing global demand for sustainable growing methods, the Dutch greenhouse industry sets an example for many regions around the world. The horticultural expertise in this area has gathered global recognition: the Netherlands is leading when it comes to the most innovative horticultural techniques and expertise. The Netherlands is well-known for its modern glass greenhouses and counts over 9.000 hectares of glass greenhouses, of which half it is used for vegetable production and the other half for flower a pot plant growing. Because of its wide experiences in greenhouse production, the Netherlands is at the same time also a large producer and exporter of greenhouse turnkey projects, technology and knowledge.
The great potential of Russia and Kazakhstan in greenhouse sector development and the expertise of Dutch greenhouse specialists with a strong international focus and global experience give a high relevance and profitability to cooperation. However, future development of such cooperation in both countries requires much deeper understanding of the market situation of the greenhouse sector in the Russian Federation and Kazakhstan. In particular, there is a need for more information on certain legislation and subsidies programs in these countries. For that reason, the Dutch Ministry of
5 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Agriculture, Nature and Food Quality has decided to carry out a market study about the greenhouse sector in the Russian Federation and Kazakhstan with focus on growing vegetables and ornamentals.
AIM OF THE STUDY
By making this information available, the Dutch Ministry of Agriculture, Nature and Food Quality aims to facilitate interested Dutch exporters and suppliers a better understanding of the specifics and future potential of the greenhouse sector in the Russian Federation and Kazakhstan. In addition, the information is meant to ensure better market access to Dutch suppliers and exporters, by providing relevant key contacts and outlining the necessary steps to be taken.
OBJECTIVES AND APPROACH
The main objective of this market study is to provide information on:
• the structure (incl. trends) and organization of the greenhouse sector and market and its institutional structure and legal framework; • the quality level in the sector and technical and financial aspects of the market; • an analysis of the investment and market opportunities and bottlenecks (SWOT), internal and external risks as well as needs in the sector; • the prospects of the production and export of greenhouse grown vegetables, flowers and pot plants taking into account the Russian countersanctions and Eurasia European Union; • latest statistics and forecast of the greenhouse area and production, demand, import and export of the different segments of inputs, technology and knowledge in the greenhouse chain; • a practical guide to market entry, including the necessary pre-conditions to start or continue business activities (i.e. localization), a list of key contacts (government organizations (i.e. relevant ministries, committees, state companies (if applicable), branch organizations (associations), top market players in each product category, distributors and dealers (if applicable)) and exhibitions, as well as services that can be provided to Dutch companies entering the market.
PROJECT SCOPE
The market study covers the following product categories:
Market segment Kind of products or activities for Russian Greenhouse Chain Vegetable and flower seeds, seedlings, young plants, flower bulbs Propagation Material and soft fruit nursery material Greenhouse turnkey projects, foundations, steel and aluminium Greenhouse Construction structures, glass, etc. Combined heating & power systems, CO enrichment, boilers for Heating & Power Equipment 2 heating, water basins, electronic systems, etc. Ventilation, cooling and screening systems, coatings, (LED) Climate Control & (LED) Lighting lighting, systems, etc.
Input for Crop Growing Substrate, hydroponics, (organic) fertilizers, drip irrigation, etc.
6 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Floor covers and mats, ropes, yarns, clips, crates, containers, Greenhouse Material trolleys, platforms, packaging material, etc. Control climate, energy, water and data management, (project) Automatization management, labour, etc. Biological control agents, pesticides, insect traps, insect netting, Crop Protection etc. Knowledge transfer and practical training of management, growers, Consultancy agronomist, etc. Sorting, grading and packaging lines for vegetables, flowers, plants After Harvest Lines and soft fruits
Logistics of Plant Products Storage, cooling facilities, distribution centers, transport, etc.
Product categories which presented in more detail:
• Product categories with which Dutch companies have already worked successfully and / or have prospects (potential); • Product categories which have a big market volume.
GEOGRAPHY OF THE STUDY
The research is carried out with a main focus on Russia and Kazakhstan. Information about the Greenhouse chains in Belarus is provided for reference, mainly from the point of general situation and influence on Russian and Kazakhstan markets.
The report includes a description of the greenhouse sector, a market assessment, a SWOT- analysis, guidelines of approaching the market, an overview of important legislation, organizations and available funding sources as well as a comprehensive data base of contacts and exhibitions relevant for the sector in the Russian Federation and Kazakhstan.
Field research (expert phone and personal in-depth interview) was an important part of the market survey.
For the calculation of the Market value the rate of exchange for all segments is appointed as:
1 Euro = 74 RUB, 1 USD = 63 RUB; 1 Euro = 368 KZT, 1 USD = 326 KZT.
7 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ABBREVIATIONS USED
RF, Russia – the Russian Federation KZ, Kazakhstan – the Republic of Kazakhstan CC FEA – Commodity Classification of Foreign Economic Activity EEU – Eurasian Economic Union Ltd – Limited Trade Development FSSS RF – Federal State Statistic Service of the Russian Federation FCS RF - Federal Custom Service of the Russian Federation Rossekhoznadzor - The Federal Service for Veterinary and Phytosanitary Surveillance A.I.C. – Agro-industrial Complex CO2 - carbon dioxide kg/m2 - kilogram per square meter, for yield of vegetables ha –hectares thous. – thousand mln. - million bln. – billion JSC - Joint-Stock Company Ltd - Limited Trade Development ИП – Individual Entrepreneur КФХ – Family farm СХО – Agricultural Enterprise SBE – State Budget Enterprise Customs Union countries - countries of the Customs Union of the Eurasian Economic Union (Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic, Russian Federation)
8 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 THE RUSSIAN FEDERATION
1 GREENHOUSE SECTOR SITUATION
1.1 RUSSIA IN THE WORLD
China is leader in terms of greenhouse area – 82 thousand hectares.
The total area of greenhouses in Russia was 3.6 thousand hectares in 2018 1). China and other southern countries (Spain, Turkey, etc.) have large greenhouse areas – tens of thousands of hectares. The greenhouses are mainly plastic or polycarbonate.
Picture 1. Examples of plastic and modern winter glass greenhouses
The countries with colder weather, including Russia, have significantly less greenhouse areas – several thousands of hectares. These countries mainly have hi-tech winter glass greenhouses to grow vegetables year-round.
In the southern regions of Russia, the plastic greenhouses (2-layered plastic film with rigid frame) are applied to grow vegetables year-round.
There are also small plastic or carbonate hotbeds in the greenhouse sector. They are used by rural population. The area of hotbeds is small (several tens of square meters). This type of producers (rural population) is not considered in this esearch.
1 All types of greenhouses (hotbeds, winter and spring greenhouses) are taken into account 9 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 2. Greenhouse vegetable area by countries, thous. ha
Source: http://greentalk.ru/topic/8911/
1.2 AREA AND STRUCTURE OF GREENHOUSES IN RUSSIA
The greenhouse area per capita in Russia is less compared not only with southern countries, for example, Turkey. The greenhouse area in the Netherlands is little less than in Turkey.
Picture 3. Area of glass and plastic greenhouses in some countries and in Russia in 2016, m2 per capita 2
Source: research 2) of company «Tekhnologii Rosta» https://www.t-rost.ru
The total area of greenhouses has increased in 2018. The area fluctuation is connected to the simultaneous decreasing of old greenhouses and increasing of new ones.
2 Presentation of consulting company «Tekhnologii Rosta» «World production in greenhouse condition in Russia» 8.12.2016 10 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 4. Dynamics of greenhouse area 3 in the agricultural enterprises in Russia during 2013-2018, thous. ha 4
Source: FSSS RF
The decreasing of old greenhouses is compensated for the increasing of new ones. 5
Picture 5. Increasing of greenhouses in Russia during 2010-2018, ha 6
Source: FSSS RF https://www.fedstat.ru/indicator/57700
According to official data of FSSS RF, 539 ha of year-round greenhouses were launched in Russia during 2009-2015. According to the data of the company «Tekhnologii Rosta», about 300 hectares have photoculture. During that period 350 hectares stopped its activities, so the net increase during the
3 Winter and spring greenhouses without hotbeds 4 Sources: FSSS RF Statistics digests «Gross harvest and yield. Part 2» during 2013-2017 http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1265196018516 5 Official statistics gives the data on the area increasing only; the data on the area decreasing are not presented. 6 2009-2013, 2016 - https://www.fedstat.ru/indicators/?searchText=введено+в+действие+мощностей+, 2014-2015 - http://expert.ru/ural/2016/21/yaichko-zolotoe/ 11 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 period 2009-2015 amount around 190 ha. 7 The new greenhouses are mainly VENLO-type glass greenhouses. As of 2015, about 400 hectares (14%) were built after 2010. They are modern greenhouses. By the year 2018 the share of modern greenhouses has increased up to 20% of total greenhouse area.
Picture 6. Share of new (modern) greenhouses of the total greenhouse area in 2015 and 2018, ha 2015 2018
Source: https://www.eg-online.ru/article/316766/, the estimation of the experts of Ltd «Rusmarketconsulting»
7 http://www.agroinvestor.ru/analytics/news/25317-ploshchad-teplits-v-strane-dostignet-2-3- tysyachi/?utm_source=email_agro-editorial&utm_medium=email&utm_campaign=16-issue-2016-12- 23&utm_content=title_1 12 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.3 MAIN TYPES OF PRODUCTS
The main volume of production in Russian greenhouses accounts for greenhouse vegetables, mainly cucumbers and tomatoes.
Salad and greenery are produced in small amounts (up to 5% of all greenhouse vegetables), less – eggplants and bell (sweet) peppers. But their share has increased and will continue to increase.
Cut flowers and seedlings are also produced:
✓ cut flowers, mainly roses, less - tulips, much less – chrysanthemum (crown daisy)
✓ seedlings of flower crops, mainly Viola and Petunia
As will be shown in sections below, the main share of greenhouse area is occupied by vegetables (about 94%). The share of greenhouses, specialized in flowers and seedlings, is about 6% of the total area of winter greenhouses.
13 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.4 BRIEF OVERVIEW OF THE SECTORS
1.4.1 PRODUCTION OF GREENHOUSE VEGETABLES
The volume of production of greenhouse vegetables in Russia (mainly cucumbers and tomatoes) was 1.833 thousand tons in 2018.
Commercial production (production in the agricultural enterprises) is 1.082 thousand tons, or 59% of the market volume of greenhouse vegetables. According to the forecasts of the Ministry of Agriculture of the Russian Federation, about 1.300 thousand tons of greenhouse vegetables will be produced in 2019. 8
The market saturation by domestic products in the Russian Federation is improving: over the last 5 years the volume of commercial production has increased by 390 thousands tons, or 1.6 times.
The following factors have developed the greenhouse sector:
I. Reduction of imports of fresh cucumbers by 1.7 times and tomatoes by 1.5 times for the following reasons: • the introduction of the food embargo by Russia in August 2014 9; • sharp devaluation of the ruble since September 2014 resulting in the decline in demand for expensive imported food products.
II. Growth of price competitiveness of domestic food products including tomatoes, cucumbers and salad because of the sharp devaluation of the ruble since September 2014
III. Government support of the sector (more details see in the sections below)
During the support and development of domestic production, the new hi-tech greenhouses replaces the old uncompetitive ones. In 2018 the share of Russian vegetables at the market was 53%. At the end of 2019 these figures for in particular cucumbers and tomatoes are significantly higher.
8 https://www.agroinvestor.ru/analytics/news/31099-za-pyat-let-proizvodstvo-teplichnykh-ovoshchey-udvoitsya/ 9 RF Government Regulation 7.08.2014 № 778 – the food import embargo from EU countries, USA, Australia, Canada, Norway, Ukraine, Albania, Montenegro, Iceland, Liechtenstein until the end of 2019. 14 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 7. Dynamics of the capacity of the Russian market of greenhouse vegetables during 2013-2018, thous. tons 10
Source: based on the official statistics data FSSS RF, FCS RF
Over the last years in the structure of production of greenhouse vegetables, the main share has accounted for cucumbers – about 60% (the reasons will be discussed in the section 1.5.2). But there is a trend to reduce the share of cucumbers because of market saturation. The consequence is that the consumer prices of cumcumbers have come under presure. In the coming years Russia will almost provide the annual consumption of cucumbers by own production. In implementing the planned greenhouse projects, the oversupply of cucumbers can be exported (if the price will be competitive).
Tomatoes have the maximum deficit. Now the increase in tomatoes production is more significant than in cucumbers production. At the same time, a possible cancelling of the food embargo can have an impact on the internal market of tomatoes (imported tomatoes in Russia have a more competitive price).
The share of any other greenhouse vegetables is small (no more than 3-5%). It has increased slowly.
The important factor that affected the greenhouse sector development was the government support (more details see in the section 1.10). In 2017-2018 the Ministry of Agriculture of the Russian Federation announced the changes in the systems of the government support of A.I.C. For example, the capital indemnification for greenhouse construction has decreased from 20% to 10%. Nevertheless, in spite of the decrease of the government support there are about 30-40 new greenhouse projects in Russia.
10 The imports of cucumbers, tomatoes, bell (sweet) peppers, eggplants and salad are taken into account. 15 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The sector of greenhouse vegetables is one of the largest in the Russian market. The new greenhouse projects are in process because of the large market capacity, the gradual displacement of ineffective market players and even by the increase of domestic competition.
Production specialized in tomatoes is highly demanded. The cucumber self-sufficiency has reached 85% in Russia. In the coming years the deficit will be almost completely provided by Russian producers. The tomato self-sufficiency is only 43%. The deficit of tomatoes is 578 thousand tons (equal to the volume of imports in 2018).
Table 1. Market capacity of fresh vegetables in the Russian Federation in 2018 Russian production Criteria Import Total excluding export
Greenhouse vegetables 1, thous. tons 1 033 898 1 931 Market structure in volume terms, % 53% 47% 100% Greenhouse vegetables, mln EUR 1 023 833 1 856 Market structure in value terms, % 55% 45% 100%
1 – data on cucumbers, tomatoes, bell (sweet) peppers, eggplants and salad are taken into account
1.4.2 PRODUCTION OF CUT FLOWERS
According to the data of FSSS RF, production of cut flowers in greenhouse conditions in Russia in 2018 was about 263 mln. pieces. The agricultural enterprises have increased the volume by 12,3% to 256 mln. flowers, farms — by 22,6% to 6,8 mln.
The main volume of production is in Central Federal district, 39%.
Picture 8. Dynamics of production of cut Picture 9. Structure of production of cut flowers in greenhouse conditions in the flowers and buds in Russia by federal agricultural enterprises in Russia, 2016-2018, districts, % mln. pieces
Source: FSSS RF
16 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The opinions of the industry experts are different. Some experts estimate the market of cut flowers in the range of 1,7 to 2-2,2 bln. EUR (of 130 to 150-160 bln. RUB) in value, about 1,8-2 bln. pieces per year in volume. According to the General Director of «Tekhnologii Rosta» Tamara Reshetnikova, the flower market is the same in value terms as 15 years ago. It has decreased in volime terms resulting from inflation and currency devaluation. 11
According to other data, the market has increased. It has reached 2,8 bln. EUR (200 bln. RUB) in 2018.
The picture 10 below shows dynamics of sales of cut flowers in Russia from 2010 till 2019: sales in volume increased 1.8 times and in value in 1.5 times. That means that Russia imports cheaper flowers.
Picture 10. Sales of cut flowers in Russia*
* — not only imports, exports, domestic production, but also storage and utilization are taken into account for calculation Source: http://greentalk.ru/topic/8911/ according to research carried out by BusinesStat
According to calculation of «Rusmarketconsulting» experts, market capacity of cut flowers in retail prices counting up to 2-2,2 bln. EUR. If wholesale prices are taken into account the market capacity of cut flowers will count for about 800 mln. EUR (see table 2).
Table 2. Market capacity of cut flowers in the Russian Federation in 2018 Criteria Russian production Import Total
Cut flowers, bln. pieces 0,3 1,7 2 Market structure in volume terms, % 15% 85% 100% Cut flowers, mln EUR 120 680 800 Market structure in value terms, % 15% 85% 100%
11 https://www.agroinvestor.ru/investments/news/31361-tsvety-dlya-investora/, https://www.dp.ru/a/2019/02/19/Cveti_ushli_na_prodazhu 17 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 In 2005-2014, Russian investors started to pay attention to the flower production, first of all to rose production, and built the modern greenhouses for their production. But practice shows that this kind of business is difficult. As a result, some large enterprises went bankrupt. For example, some modern greenhouse complexes in the Kaluga region («Rozovyj sad») and in the Penza region («Mokshanskij teplichnyj kompleks»).
Some main active producers in Russia are: ✓ Agricultural complex «Yuzhny» (Karachayevo-Cherkessian Republic); ✓ «Novaya Gollandiya», JSC (Leningrad region); ✓ Greenhouse «Stupinskij», JSC (Moscow region); ✓ Greenhouse «Chekhovskij Sad», JSC (Tula region, uses the greenhouses «Ramenskie» in Moscow region).
In spite of the fact that the production takes place in the Russian Federation, the greenhouse growers (especially new ones) use Dutch technologies and import propagation material.
«Novaya Gollandiya» www.novayagollandiya.com for example demonstrates one of the best results in rose production in Russia. The company was established in 2014. Four greenhouses were built with a total area of 28 hectares. The company uses Dutch technology for flower production. The experts, who are trained abroad, are working in the company. The company produces about 30 mln. pieces of flowers.
However, General Director Arkadii Muravev confirms that over the last 5-7 years some floral enterprises finished their activities and hardly any new projects were launced. Acooriding to Mr. Muravev, the main reason for that is no government support.
Moreover, there are many imported competitive flowers on the Russian market. By various estimates, the share of imported flowers in the Russian market is 76-82%.
Picture 11. Dynamics of imports of cut flowers to Russia, mln. EUR CC FEA code 0603 - Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared
Source: http://club.cnews.ru/blogs/entry/analiz_rynka_svezhesrezannyh_tsvetov_v_rossii-2018-02-26, data of customs statistics http://stat.customs.ru
18 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The flower market is characterized by seasonality. The main share of sales falls on February-March, May, September and December (on holidays).
Saint Valentine’s Day (the new holiday for Russia) is celebrated in February.
International Women’s Day is celebrated in March. This day men congratulate women at work and at home, usually by flowers. Tulips are in the greatest demand both for corporate gifts and for private ones. About 50% of tulip sales fall on March, 8.
Graduations are celebrated at the end of May and at the beginning of June. The flowers are presented to teachers.
Knowledge Day is celebrated on September, 1. Children go to school and present flowers to teachers.
In many European countries and in the USA flowers are not only a personal or business gift but a daily decor as well. In Russia flowers are still a holiday gift. They are bought occasionally and so they are not for daily demand.
The demand for flowers depends heavily on populations incomes which have decreased over the last years.
Picture 12. Seasonality in the Russian cut flower market, %
Source: https://moneymakerfactory.ru/biznes-idei/biznes-svejesrezannyih-tsvetov-v-rossii/ data of FSSS RF
According to experts, the total area of flower production in Russia is 170 hectares.
The Russian customers practically ignore the origin of flowers whereas they give strong preference to local vegetables.
The most popular flowers are roses. Imported roses occupy a niche of expensive flowers. Russian roses occupy medium and low-price segments.
19 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 It is difficult for Russian flower producers to compete with the foreign ones because there are practically no climatic zones suitable for year-round flower production. The peak demand for flowers falls in the cold season. In Africa and South America flowers are grown on the fields. Even taking into account customs duties, logistics and transportation, these flowers are cheaper and more competitive in price. In spite of the fact that Russian commercial flower production has a high potential from the viewpoint of import substitution, it is very difficult to replace the imported flowers on the Russian market.
Nevertheless, there are some projects in this sector. The most promising niche is rose production because roses are in demand all year round. The other flowers are more seasonal.
There are occasions when an entrepreneur starts the project on greenhouse vegetable production firstly and then takes a decision to produce flowers. For example, the greenhouse «Yaroslavskij» («Gorkunov Group») started to grow decorative roses Kordana in pots commercially since 2017.
The project on the greenhouse construction for rose growing is implementing in Adygea (the total area is 5 hectare and 9 mln. flowers per year).
According to experts, it is more effective to renew or enlarge active production now and in the medium term.
Over the last 5-7 years the seasonal growing of tulips has developed. Tulips are in great demand only on March, 8. They are rarely bought during the year. For growing tulips, it is not necessary to have hi- tech greenhouses as for growing vegetables. The flowers have a high quality, though the tulip bulbs are bought in the Netherlands (see the sector 2.2) (https://www.agroinvestor.ru/investments/news/31361- tsvety-dlya-investora/).
The flower market is characterized by the following factors, which slow the market development in Russia: ✓ the high share of imported flowers – more than 80% of Russian market; ✓ the imported flowers are more competitive in price and there is a wider assortment of flowers ✓ the lack of Russian government support (the lack of innititaitives for future government support); ✓ the high seasonality of flower consumption; ✓ less suitable climatic conditions compared with the main producing countries.
According to experts, the main factor which limits and slow downs the market development, is the lack of government support. As a result, over the last 5-7 years, some floral enterprises in Russia finished their business activities and hardly any new greenhouse projects for flower growing were launced. Among the 30-40 announced investment projects on greenhouse construction only one is related to flower production (the greenhouse «Yaroslavskij» Ltd, «Gorkunov Group»).
20 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
1.4.3 PRODUCTION OF SEEDLINGS AND POTTED PLANTS
In the production of annual seedlings of flowers and potted flowers are engaged:
✓ producers of greenhouse vegetables, which are also engaged in cultivation of flowers; ✓ specialized producers.
Examples of the producers of greenhouse vegetables which are also engaged in cultivation of flowers are: ✓ Agrokombinat «Gorkovskiy» www.agrogorky.ru (Nizhny Novgorod region). They are growing tulips, potted plants, seedlings of annual flowers; ✓ the greenhouse «Teplichniy» www.gupteplitsa.ru (Vladimir region). They grow roses and seedlings of annual flowers.
Specialized producers of seedlings of flowers and potted plants can be divided into two groups:
✓ those producing for urban landscaping; ✓ producing for sales to the general public.
The number of producers of seedlings (flowers, shrubs, trees) for urban landscaping (such as landscaping of territory of monuments, parks, yards, etc.) is quite small, and these producers are state- owned enterprises.
For example, the sole supplier of flower seedlings for landscaping of the entire city of Moscow is one greenhouse - the state budgetary enterprise State Budget Enterprise «Ozelenenie» www.ozelenenie.co. SBE «Ozelenenie» and which is subordinated to the Department of Housing and Communal Services of the city of Moscow.
It was established in 2015. It has 400 hectares of land, including 373 hectares open fields and 24 hectares greenhouses. Every year SBE «Ozelenenie» supplies the city with about 60 million of flower seedlings. Of these, nearly 36 million are annuals, 5 million biennials, about 350 thousand perennials, 255 thousand ampelous plants, more than 5.2 thousand roses and 12.5 thousand bulbs. 12
In St. Petersburg there are 4 such producers, and they are also state-owned enterprises and accordingly fulfil local government contracts. As an example, two of them are «The landscape gardening company «Pushkinskaya» JSC www.pushkinskoe-spp.ru and «Kalininsky landscape gardening company» JSC www.kalininskoesph.spb.ru.
Specialized producers of seedlings and potted plants which grow their products for retail are much more numerous in Russia. But they are mostly small producers with small cultivation areas.
Players in this market are changing from time to time. For example, until 2018, industrial floricultural holding «Pulkovo tsvety» www.floraprice.ru used to be one of the largest in St. Petersburg and the largest in the North-West region of Russia (growing tulips, flower seedlings and houseplants).
12 https://www.mos.ru/mayor/themes/5299/3280050/, https://www.ozelenenie.co/ob-uchrezhdenii 21 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The examples of the largest present producers of potted flowers and seedlings of annual and perennial plants in Leningrad region are:
✓ JSC «Production and Trading company «Tsvety Severo-Zapada» (JSC «North-West Flowers») www.nwf.ru, the Leningrad region
At first the company was engaged only in wholesale trade in flowers, but in 2013 two hectares of modern greenhouses with the hi-tech equipment for production of flowers were constructed jointly with the Dutch concern Las Palmas. The company specialists regularly upgrade their skills, using the expertise of foreign colleagues from The Netherlands, Denmark, Germany and Poland. 13
✓ JSC «Breeding farm named after Thalmann» www.agro78.ru, the Leningrad region
This enterprise annually produces about 12 million pieces of seedlings of flowers and vegetables (more than 150 varieties and hybrids of seedlings of annuals, houseplants and bulbous flowers and 15 types of seedlings of vegetables) on 2.5 hectares of modern greenhouses. The enterprise buys seeds from the leading European producers.
According to experts, the producers of flowers and seedlings are not going to update the greenhouses, they will operate in them as long as they can produce without updating.
In general, the flower market volume is small. For example, the landscaping of Moscow and St. Petersburg - the largest and richest cities in Russia — in 2019 was supposed to cost about 80 mln EUR. The share of seedlings of annual flowers in these costs is about 5%, that is 4 mln EUR. 14
Market players themselves find it difficult to estimate the market volume of seedlings for landscaping in Russia, because there is no official statistics of production, there is no register of producers, the sector is represented by a large number of producers on 1-2 hectares, whose exact number is difficult to assess.
It is also difficult to estimate the market volume of seedlings sold retail to the population.
According to experts of «Rusmarketconsulting» the market of seedlings is small and of minimal interest compared to other sectors considered in this sector study.
CONCLUSION REGARDING THE GREENHOUSE SECTORS AND MARKET SEGMENTS:
THE MOST PROMISSING PROSPECTS AND OPPORTUNITIES FOR THE DEVELOPMENT IN RUSSIA HAS THE GREENHOUSE VEGETABLES SECTOR. THEREFORE, IT HAS BEEN DECIDED FOR THE IMPLEMENTATION OF THIS STUDY TO FOCUS IN MORE DETAIL ON THE FEATURES, OPPORTUNITIES AND DEVELOPMENTS OF THIS PARTICUALR GREENHHOUSE VEGETABLE SECTOR.
13 https://www.dp.ru/a/2012/03/06/Gollandskij_koncern_Las_P 14 https://otr-online.ru/news/na-ozelenenie-moskvy-v-blizhayshie-tri-goda-planiruetsya-potratit-98-mlrd-rubley- 114676.html, https://www.dp.ru/a/2017/03/01/Cveti__gorodu_vigoda, https://www.kommersant.ru/doc/3833341 22 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 IN THE SECOND PART OF THE STUDY «PRODUCT CATEGORIES» THE STUDY REPORT PAYS MORE ATTENTION TO MARKET SEGMENTS RELATED TO THE PRODUCTION OF GREENHOUSE VEGETABLES.
23 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.5 PRODUCTION OF GREENHOUSE GROWN VEGETABLES IN THE RUSSIAN FEDERATION
1.5.1 DYNAMICS OF PRODUCTION OF GREENHOUSE GROWN VEGETABLES, STRUCTURE BY TYPES OF PRODUCERS
During Perestroika (1985-1991) the large part of the commercial greenhouses declined, more than half of greenhouses were ruined or neglected. Discontinuation of subsidies, collapse in trans-regional cooperation, hyperinflation, and declining living standards and then the sharp rise in energy prices led to economic inexpediency of many greenhouses.
After the post-crisis environment (2010-2012) with explosive import growth which made Russian production uncompetitive, the greenhouse business in Russia has been on the rise since 2013. The main driver was the State Program for Development of Agriculture and Regulation of Agricultural Commodity Markets in 2013-2020 15
The total yield of greenhouse grown vegetables produced by all types of producers was 1.833 thousand tons in 2018. The volume of production has increased since 2012 by 752 thousand tons (+70%).
Picture 13. Dynamics of production of greenhouse grown vegetables in all types of producers during 2012-2018, thous. tons
Source: FSSS RF, statistics digests «Gross harvest and yield of basic agricultural crops in the Russian Federation, part 2» during 2012-2018
Since 2013 the growth in volume terms was 467 thousand tons or 76%, up to 1.082 thousand tons in 2018. Meantime the share of agricultural enterprises production increased from 52% to 59%.
15 approved by Russian Government Regulation from 14.07.2012 № 717 24 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.5.2 STRUCTURE OF PRODUCTION BY CROPS (CUCUMBERS, TOMATOES, OTHERS)
1.5.2.1 CUCUMBERS AND TOMATOES
The main part of production is cucumbers: 633 thous. Tons or 59% of the total industrial production.
Picture 14. Dynamics of production of greenhouse grown vegetables in the agricultural enterprises by crops during 2013-2018, thous. tons
Source: FSSS RF
The structure of production of greenhouse grown vegetables has not changed over the last 5 years: about 60% of production is cucumbers.
Picture 15. Comparison of the structure of production of greenhouse grown vegetables in the agricultural enterprises in 2013 and 2018, thous. tons 2013 2018
Source: FSSS RF
25 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The reasons of the current structure of production of greenhouse grown vegetables by crops are the following 16:
1. Cucumbers – about 59%
The main yield increase of greenhouse grown vegetables in Russia is caused by the increase in production of cucumbers: ▪ The technology of production of cucumbers (and salad) is well known. Their vegetative period is short. Their yield is high, especially in photoculture. The average yield of cucumbers is 100 kg/m2 in the modern greenhouses. The highest yield of cucumbers was 162 kg/m2 among all greenhouses. 17 However, the share of modern greenhouses is small and the average yield in Russia is growing slowly. ▪ Cucumbers and salad are relatively hard transportable, short-live crops (5-6 days after harvest) which depress the opportunity to import them and transport from other regions of Russia.
However, there is a trend in Russia in which the share of cucumbers decreases as a result of the market saturation and the reduction of the retail price for cucumbers.
2. Tomatoes – 39%
Russia depends heavily on import of fresh off-season tomatoes. Russian production is 1.4 lower than imports: 418 thousand tons were harvested in 2018 against 578 thousand tons were imported. Commercial greenhouses specializing in tomato growing are rare. For example, «EKO-KULTURA» (Stavropol Krai) and Ltd «Greenhouse Volzhskij» (Volgograd region). 18
There are a few greenhouses with year-round cultivation of tomatoes in photoculture. Reasons: ▪ The vegetative period is 1.5−2 longer than in cucumbers. Consequently, the annual average total yield is 1.5−2 times lower even with additional lighting.
▪ In the segment of tomatoes, competition is higher than in the segment of cucumbers. It is linked both with the long-live and the good transportability of tomatoes and with the low cost of production of tomatoes from south Europe, north Africa and Asia (favourable environmental and climatic conditions: warm, many sunny days).
3. Salad, eggplants, zucchini/vegetable marrows, bell (sweet) peppers, radish and others – about 1-5%
Eggplants, zucchini, bell (sweet) peppers, radish and other vegetables, strawberries are grown in greenhouses at a minimum. In Russia about 35 hectare of winter greenhouses are occupied by other vegetables, salad and greenery (herbs and baby leaves).
16 Processing data published in «Agroinvestor», August 2016: http://www.agroinvestor.ru/analytics/article/23911- rossii-malo-svoikh-ovoshchey/ 17 Press Service of the Government of Leningrad region 18 http://www.agroinvestor.ru/companies/article/24557-lider-v-teplichnykh-usloviyakh/ 26 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The total area of winter greenhouse growing of these products is 2.4 thousand hectares, no more than 2%. Main reasons are: ▪ not enough tested technology; ▪ longer vegetation period; ▪ lower yield; ▪ high competition with import because of worse environmental and climatic conditions.
The return on investment has influenced as well: it started with the most profitable and attractive crops as investments crops. First step is to grow greenery/salads, later – cucumbers, then – tomatoes. It is expected that in future the share of niche grown greenhouse vegetables will grow (see chapter 1.11.1).
1.5.2.2 OTHER CROPS
Official statistics does not give data about the volume of production of other crops. We accepted the expert estimation of the distribution by other crops (see table 3 below).
Table 3. Dynamics of production of other greenhouse grown vegetables in the agricultural enterprises by crops during 2013-2018, thous. tons Crops 2013 2014 2015 2016 2017 2018 Total 23,6 26,2 21,8 37,3 25,7 30,9 including: salad 6 7 8 10 10 10 * eggplant 4 4 3 6 4 5 bell (sweet) pepper 5 5 4 7 5 6 others 8,6 10,2 6,8 14,3 6,7 9,9 * - the volume of production of salad was calculated according to the data of experts on the production area by large producers and on the average yield (3,8 mln pieces/ha or 380 pieces/m2, average weight of 1 piece is 100 g)
Leaf salad ‘Aficion’ and salad ‘Frillice ‘are produced in Russia commercially. «Agroholding Moskovskij» (Moscow region) produces a wider range of leaf salads in pots but only ‘Aficion’ is consumed more.
Picture 16. Species of leaf salad grown in Russia commercially Leaf salad Aficion Salad Frillice
27 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The growth indicator of the market capacity of salad is the growth of areas for salad production (picture 18 below). The average growth is 5-7% per year.
Picture 17. Dynamics of greenhouse area for salad production during 2009-2017 in Russia, ha 19
19 expert interview, assessment of Ltd «Agriconsult», press-releases of listed companies 28 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.5.3 STRUCTURE OF PRODUCTION BY REGIONS
Almost half of greenhouse grown vegetables (49%) is produced by the commercial greenhouses in the Volga and Central Federal districts.
Picture 18. Structure of production of greenhouse grown vegetables in Russia in 2018, thous. tons
Source: FSSS RF
The greenhouse sector has developed more actively in the Central, Southern and North Caucasian Federal districts over the last six years.
Table 4. Dynamics of total yield of greenhouse grown vegetables by the Federal districts 2013 2018 Growth, 2018 / 2013 Growth, 2018 / 2013 thous. tons thous. tons thous. tons % Central Federal district 127 297 +170 134% North-West Federal 49 71 +22 44% district Southern Federal district 74 167 +93 126% North Caucasian 60 177 +117 194% Federal district Volga Federal district 175 235 +60 34% Ural Federal district 54 50 -4 -8% Siberian Federal district 59 65 +6 11% Far Eastern Federal 17 21 +4 25% district Russia 615 1 082 +467 76% Maximum data are colored by background
The largest region-producer of greenhouse grown vegetables is Krasnodar Krai, 9% of Russian volume of production (Southern Federal district).
29 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 19. ТOP-6 large regions-producer of greenhouse grown vegetables in the agricultural enterprises in Russia, 2018, thous. tons
Source: FSSS RF
Data by regions in volume terms are presented in the table 5 below.
Table 5. Volume of commercial production of greenhouse grown vegetables by regions in Russia in 2018, thous. tons
Volume of production, Share in total thous. tons production, % Russian Federation 1.082 100% Central Federal district 297 27% Lipetsk region 84 8% Moscow region 57 5% Volga Federal district 235 22% Republic of Bashkortostan 65 6% North Caucasian Federal district 177 16% Stavropol Krai 82 8% Southern Federal district 167 15% Volgograd region 56 5% Krasnodar Krai 86 8% North-West Federal district 71 7% Siberian Federal district 65 6% Ural Federal district 50 5% Far Eastern Federal district 21 2% Source: FSSS RF
30 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 20. ТOP-6 regions produce 40% of greenhouse grown vegetables
1 – Krasnodar Krai 4 – Republic of Bashkortostan 2 – Lipetsk region 5 – Moscow region 3 – Volgograd region 6 – Stavropol Krai
1.5.4 YIELD OF VEGETABLES
The total production has increased not only due to increase the area, but also due to increase the yield.
Picture 21. Dynamics of yield of greenhouse grown vegetables in winter greenhouses in Russia during 2009-2018, kg/m2
Source: FSSS RF
31 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The average yield of vegetables in Russia is not the lowest one. For example, it is significantly lower in Spain which is the largest exporter of vegetables.
Picture 22. Comparison of the yields of greenhouse grown vegetables in Russia and some countries in 2015, kg/m2 20
Source: www.t-rost.ru
Notes: in the picture 22 - the yield in Russia (about 25 kg/m2) in all greenhouses; in the picture 21 – the yield only in winter greenhouses which is significantly higher.
The yield has increased because some of the old greenhouses stop production or decrease growing area, new modern high-tech greenhouses with additional lighting, level control of CO2 are built. These modern and innovative glass greenhouses reach higher yields.
The leaders in the yield of greenhouse grown vegetables (which is equal to the level of European producers) in Russia are:
✓ Greenhouse «Majskij» (Republic of Tatarstan) photoculture cucumbers - 150 kg/m2, tomatoes - 75 kg/m2;
✓ Greenhouse «Kruglyj God» (included in agroholding «EKO-KULTURA», Leningrad region) photoculture cucumbers – 160 kg/m2.
According to the company NPF «FITO», in semiclosed type greenhouses, equiped with all technological modern standards for growing plants, the average annual yield of long-fruited cucumber is 160 kg/m2. Maximum yields can reach 190 kg/m2.
20 Presentation of consulting company «Tekhnologii Rosta» «World production in greenhouse condition in Russia» 8.12.2016 32 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.6 FOREIGN TRADE DURING 2013-2018
1.6.1 IMPORT
1.6.1.1 GENERAL DATA
Data of the Customs statistics were analysed:
✓ by CC FEA code 07 02 000 000 – tomatoes, fresh and chilled; ✓ by CC FEA code 07 07 000 500 – cucumbers, fresh and chilled; ✓ by CC FEA code 07 05 190 000 – salad (this code is for leaf salad only, not incl. iceberg type lettuce); ✓ by CC FEA code 07 09 300 000 – aubergines (eggplants), fresh and chilled; ✓ by CC FEA code 07 09 601 000 – sweet peppers, fresh and chilled.
The data source for analysis: Federal Customs Service of the Russian Federation http://stat.customs.ru, http://www.infomozaika.ru/index.php.
Export of all analysed vegetables is insignificant: export to Russian ships, Ukraine (Donetsk, Luhansk) and Kazakhstan (for that reason we don’t explain export in more details).
1.6.1.2 DYNAMICS, VOLUME AND STRUCTURE OF IMPORTS
Table 6. Dynamics and structure of fresh vegetables import to Russia Unit of Commodity 2013 2014 2015 2016 2017 2018 2018 / 2013, % measurement thousand tones 856 847 668 463 516 578 -32% Tomatoes mln USD 1 104 1 045 679 491 559 631 -43% thousand tones 215 231 148 115 134 123 -43% Cucumbers mln USD 292 284 165 125 148 124 -58% thousand tones 5,9 5,3 5,4 6,9 10 10,9 +184% Salad mln USD н/д н/д н/д н/д н/д 6,9 - thousand tones 161 155 127 111 137 163 1% Sweet peppers mln USD 245 212 127 125 159 192 -22% thousand tones 27 28 20 19 21 23 -15% Eggplants mln USD 51 41 18 16 17 26 -49%
1.6.1.3 STRUCTURE BY COUNTRIES OF ORIGIN
The structure of the countries of origin changes according to the documents accepted by RF Government 21. The different sanctions of Rossekhoznadzor are used from time to time as well.
21 RF Government Regulation 7.08.2014 № 778 – the food import embargo from EU countries, USA, Australia, Canada, Norway, Ukraine, Albania, Montenegro, Iceland, Liechtenstein. RF Government Regulation 30.11.2015 № 1296 – fruits and vegetables import embargo from Turkey from 1.01.2016 including cucumbers and tomatoes. 33 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The introduction of the Russian food embargo has affected all discussed vegetables. The food embargo was introduced on August 7, 2014 and has been extended several times (now until the end of 2020).
According to the Russian food embargo, the import of products was prohibited from EU countries, USA, Australia, Canada, Norway, Ukraine, Albania, Montenegro, Iceland and Liechtenstein.
Until 2015 the Netherlands, Spain and Poland provided 23% of import of tomatoes.
In 2018 70% of tomatoes were imported from Azerbaijan, Morocco, China and Belarus.
Picture 23. Structure of IMPORT OF TOMATOES by country of origin in 2018, thous. tons
Picture 24. Structure of IMPORT OF CUCUMBERS by country of origin in 2018, thous. tons
Import of eggplants and sweet peppers were sanctioned as tomatoes and cucumbers. Also they were put under the different temporal sanctions of Rossekhoznadzor. So, the structure of countries of origin has changed.
RF Government Regulation 9.10.2016 № 1020 – reduction of the list of prohibited products. Tomatoes and cucumbers were not excluded from the list of prohibited products. RF Government Regulation 26.10.2017 № 1301 – fresh and chilled tomatoes have been permitted to import to Russia but only within the limits of permitted volume of imports approved by the Ministry of Agriculture of the Russian Federation. 34 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Import of sweet peppers has changed insignificant from 2013 to 2018: two leaders (Israel and China) have increased the share of imports from 66% in 2013 to 72% in 2018.
The share of the Netherlands in import of sweet peppers was 12% in 2013, 0 - in 2018.
Belarus (40% of imported eggplants) has changed the past leaders (Spain and The Netherlands).
Picture 24. Structure of IMPORT OF SWEET PEPPERS by country of origin in 2018, thous. tons
Picture 25. Structure of IMPORT OF EGGPLANTS by country of origin in 2018, thous. tons
The main countries of origin of salad in 2013 were The Netherlands (35%), Spain (30%) and Italy (23%). After the imposition of Russian counter sanctions on food, the structure has changed: the share of imports from China and especially Belarus has increased significantly.
35 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 26. Structure of IMPORT OF SALAD by country of origin in 2018, thous. tons
36 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.7 REGULATIONS RELATED TO PRODUCTS ORIGINATING FROM THE EEU
Russia is a member country of the Eurasian Economic Union (EEU).
Throughout the EEU the unified customs tariff is valid – rates of import customs duties applying to commodities, importing (imported) into the customs territory of EEU from Third Countries.
Table 7. Customs duties and VAT rates by key fresh vegetables 22 CC FEA Code Kind of fruits VAT, % Customs duties not less than 0,53 EUR per kg depending on 0707 cucumbers 10% period not less than 0,53 EUR per kg depending on 0702 tomatoes 10% period 0705 190 salad 10% 15% 0709 300 eggplants 10% 10% 0709 601 sweet peppers 10% 5% and 10% depending on period Source: https://www.alta.ru/tnved/code/0808301000/
Between EEU member-states goods, including fresh vegetables, can circulate free. This means that there are in principle no customs inspection at the EEU inner frontiers and no customs duties.
1.8 MARKET CAPACITY AND CONSUMPTION
1.8.1 MARKET CAPACITY AND SHARE OF IMPORTS
The market capacity of the different types of products was calculated according to greenhouse production official statistics and the data of the customs service on imported and exported products. The market capacity of greenhouse vegetables was 1.930 thousand. tons valued at 1,9 bln. EUR in 2018.
Cucumbers have the minimum share of imports – 17%.
52% - the share of imports of salad. It is interesting to note, that leaf salad ‘Aficion’ is produced (in pots) and another cut salad is imported.
The share of imported tomatoes reaches 59%.
The Russian market is provided with imported eggplants and bell (sweet) peppers almost by 100%.
22 http://www.eurasiancommission.org/ru/act/trade/catr/ett/Documents/ru.cct.eaeu.08_01.02.2018.pdf 37 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 8. Calculation of the market capacity of greenhouse vegetables in Russia in 2018 in volume terms, thous. tons Production Import Export Capacity Share of Crop thous. tons in 2018 imports, % Tomatoes 418 578 15 981 59% Cucumbers 633 123 13 743 17% Bell (sweet) 6 163 6 163 100% peppers Eggplants 5 23 4,5 23,5 98% Salad 10 11 0,07 20,8 52% TOTAL 1.072 898 39 1.931 46%
in value terms, mln. EUR Production Import Export Capacity Share of Crop mln EUR in 2018 imports, % Tomatoes 402 536 4,2 934 57% Cucumbers 611 105 4,5 712 15% Bell (sweet) 5,6 163 1,1 168 98% peppers Eggplants 4,7 22 0,4 26 85% Salad 9,4 6 0,04 15 40% TOTAL 1.033 833 10 1.856 45%
1.8.2 CONSUMPTION
Greenhouse vegetables are mainly consumed during «off-season», when there are no field vegetables. The average duration of the «season» in Russia is no more than 3 summer months.
Picture 27. The duration of vegetable and salad production in the winter greenhouses
Jan Feb March Apr May June July Aug Sept Oct Nov Dec seasonal production winter greenhouses winter greenhouses on the field
Table 9. Calculated consumption of vegetables in Russia
Actual consumption during «off-season», Crops 2018, kg/person Cucumbers 5,1 Tomatoes 6,7 Eggplans 0,2 Bell (sweet) peppers 1,1 Leaf salad 0,1 Source: the calculation of the experts of Ltd «Rusmarketconsulting» based on official statistics, the population of the Russian Federation is 146,8 mln. people, http://www.statdata.ru/russia
38 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.9 THE LARGE RUSSIAN PRODUCERS OF GREENHOUSE VEGETABLES
1.9.1 THE LARGE PRODUCERS
Top-10 largest greenhouses (not holdings, but separate enterprises) provide 32% of commercial production, 345 thousand tons of vegetables in the Russian Federation.
Picture 28. Тop-10 greenhouses (not holdings, but separate enterprises) in Russia by the volume of production, thous. tons
Source: news and information websites
1.9.2 THE STRUCTURE OF PRODUCERS BY THE VOLUME OF PRODUCTION
The functioning greenhouses are divided into 3 groups:
✓ the largest greenhouses producing more than 30 thousand tones of products per year; ✓ large greenhouses producing from 10 to 30 thousand tons of products per year; ✓ greenhouses producing less than 10 thousand tons of products per year.
The data in the table below show that the 6 largest greenhouses produce almost 25% of vegetables (mainly cucumbers and tomatoes).
39 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 10. Distribution of greenhouses in Russia by the volume of vegetable production, 2018 Distribution by the Volume of Total volume of Share of group in Number of volume of production, production, 2018, the total volume greenhouses production thous. tons thous. tons of production more than 30 thous. 6 252 23% tons 1.082 10-30 thous. tons about 20 about 260 24% others about 150 570 53%
Picture 29. The distribution of the greenhouses by the volume of production, 2018
The main part of the larger greenhouse complexes in Russia are:
✓ new modern VENLO-type or semiclosed greenhouses, for example, the greenhouses of the agricultural holding «EKO-KULTURA»;
✓ or operational greenhouses (давно действующие) which were renewed, for example, the greenhouse «Majskij» (Republic of Tatarstan), the agricultural holding «Vyborgec», Ltd, (Leningrad region), etc.
1.9.3 THE LARGE GREENHOUSE HOLDINGS
There are independent greenhouses and greenhouses working in the holdings. A holding consists of: ✓ the greenhouse or some greenhouses; ✓ the transportation company to transport vegetables; ✓ the trading house to sell products of the own greenhouse and probably purchased vegetables.
These are the holdings which have been working for a long time in greenhouse growing. For example: ✓ agricultural holding «EKO-KULTURA» www.aph-ecoculture.ru ✓ Ltd «MK «Technologii Teplichnogo rosta» www.ghgt.ru ✓ «Dolina Ovoshchej» Group http://dolina-o.ru
40 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1 The largest holding is AGRICULTURAL HOLDING «EKO-KULTURA» (based on the planned area and volume of production).
The main office: Address: Moscow Теl.: +7 (495) 514-00-99 Web site: www.aph-ecoculture.ru E-mail: [email protected]
«EKO-KULTURA» was established in 2015. It is owned to the business owners Aleksandr Rudakov, Andrei Petrenko, Irina Ashinova and Ltd «Т9» in equal parts. 23
The holding includes: ✓ the greenhouses in Stavropol Krai, Lipetsk and Leningrad regions; ✓ the packaging lines for vegetables; ✓ the distribution centres in Moscow region, Stavropol Krai and Saint-Petersburg; ✓ the department of integrated supply of public catering.
As opposed to all-Russian trend, the greenhouses of the holding are specialized in tomato growing. Not only round red tomatoes for ‘mass consumption’ are grown, but yellow, pink, plum and cocktail ones. As well.
The products have the register trade mark «Еcokultura».
The main parameters of the functioning greenhouses and the investment projects of the agricultural holdings are shown in the table below.
Table 11. The list of functioning greenhouses of the agricultural holding «EKO-KULTURA» Functioning greenhouses Volume, thous. Greenhouse Region Area, ha Crops tons 1 «Eko-kultura» Stavropol Krai 10,7 20,6 tomatoes 2 «Stavropol Ovoshchi» Stavropol Krai 35 43,1 tomatoes 3 «Mariinskij» Stavropol Krai 5,5 8,5 tomatoes Volume, thous. Greenhouse Region Area, ha Crops tons «Solnechniy Dar», 4 Stavropol Krai 31 57,2 tomatoes 1 and 2 lines «Ovoshchi Chernozemia», 5 Lipetsk reion 35,7 60,3 tomatoes 1 and 2 lines tomatoes, 6 «Krugly God» Leningrad region 12,5 17,5 cucumbers, salad TOTAL 130,4 207,2
About 130 thousand tons of vegetables were produced by the greenhouses of the holding in 2018 (12% of the commercial production).
23 https://www.agroinvestor.ru/investments/news/30639-eko-kultura-khochet-postroit-300-gektarov-teplits/ 41 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
To implement its plans the holding will produce more than 400 thousand tons of vegetables with a total area of 560 hectare of high-tech greenhouses in 2023. It will be about 26% of commercial production (400 thousand tons / 1.500 thousand tons 24).
Table 12. The list of the planned greenhouses of the agricultural holding «EKO-KULTURA» Planned greenhouses Volume, Greenhouse Region Area, ha Crops Launch deadline thous. tons tomatoes, 1 «Tulskiy» Tula region 62,5 77,9 cucumbers, 2021 salad «Voronezh» - 2 Voronezh region 38,2 60,5 tomatoes 2021 under construction «Ovoshchi Chernozemia», 3 Lipetsk region 16,3 25,9 tomatoes the middle of 2019 3 line under construction «Solnechniy Dar», tomatoes, 4 3 and 4 lines under Stavropol Krai 41 58,7 2020 cucumbers construction tomatoes, 5 «Podmoskovye» Moscow region 55 68,6 cucumbers, 2021 salad 6 «Nevinnomyssk» Stavropol Krai 47,8 62 tomatoes TOTAL IN RUSSIA: 260,8 353,6 7 «Uzhnaya stolitsa» Kazakhstan 45 60 * tomatoes 2023 8 Uzbekistan 130 314 tomatoes 2023 tomatoes, 9 China 20 cucumbers, 2019 salad TOTAL IN KAZAKHSTAN, more than 394 UZBEKISTAN, CHINA: 175
TOTAL: FUNCTIONING AND more than 570 thous. 955 ha of greenhouses PLANNED GREENHOUSES tons of vegetables Source: company’s website
* — data on company’s website and in the public domain are different. On company’s website it is stated that 60 ha of greenhouses will be in Kazakhstan. Other sources declared 80 ha for the first line and 500 ha for whole project.
The products of the holding «EKO-KULTURA» are presented in the federal and regional retail networks: «X5 Retail Group», «Magnit», «Lenta», «Dixy», «Azbuka vkusa», «О’Кеy» and others. The holding is developing the cooperation with the international restaurant networks — «McDonald`s» and «KFC».
The crop protection in the greenhouses is biological. Earlier the insects were bought abroad, but the experts of the holding learnt to grow some species independently.
24 Accoridng to experts, greenhouse vegetable production can reach 1.5 mln. tons in 2024 - http://greentalk.ru/topic/13819/. 42 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 «EKO-KULTURA» has the projects not only in Russia, but in Kazakhstan, Uzbekistan and China as well.
There are plans to build in Uzbekistan a greenhouse complex for tomato growing (the main crop) with a total area of 314 hectares. The total production will be 130 thousand tons after reaching the full capacity. The cost of greenhouses is 401 mln. EUR (472 mln. USD). Also, there is a plan to build the complex for growing, storage, processing and packaging of agricultural products with the annual capacity of over 65 thousand tons.
At the first project stage the company plans to invest about 40 mln. EUR in the construction of high- tech greenhouses with a total area of 50 hectares. The company plans to produce more than 400 tons of tomatoes per 1 hectare of greenhouses per year (40 kg/m2). 25 EKO-KULTURA pointed out that Uzbekistan has a favourable investment climate: the large government support, the long-term investment deduction, the favourable weather conditions and low-cost labour. According to estimates, the production cost will be 10% lower than in Russia. According to the experts of «Rusmarketconsulting», this estimation is minimal and very humble in comparison with the plastic greenhouses in the south of Russia. Around 40% of the grown products in Uzbekistan will be imported into Russia (60%) China, South Korea, Japan, Middle East and Europe.
Furthermore, in May 2019 the president of the company Aleksandr Rudakov and the Prime Minister of Kazakhstan Askar Mamin signed a Memorandum about the construction of a greenhouse complex with a total area of 500 hectares. The investments into the project are estimated at 960 mln. EUR. According to Rudakov, the Memorandum will establish the basis for the development of strong trade connections and the increase in volume of the bilateral investments and technology transfer.
The greenhouse will be built in some lines during 5 years. The first line will be 80 ha; the planned volume of production will be 52 thousand tons per year. The partner of «EKO-KULTURA» will be Kazakh company «Green Land Alatau». «Green Land Alatau» grows two varieties of tomatoes, two varieities of cucumbers and salad. The greenhouse capacity is 1,2 thousand tons of tomatoes, 1,8 thousand tons of cucumbers and 50 tons of salad. 26
Also, it was declared that «EKO-KULTURA» reached the agreement to build a large greenhouse complex in China in cooperation with the Chinese Huafa Group. The first line of the greenhouse (20 ha) will be launched in the province Guangdong. China provides funding for this project. «EKO-KULTURA» will manage the operation production. The greenhouse vegetables will be tomatoes, cucumbers and salad. At the first stage the products will be sold only on the Chinese market. The materials supplier and the partner of the holding will be «Lipetsk plant of greenhouse constructions» (more details in chapter 2.3). In future the enlargement of greenhouses to 250 ha will be planned. But the company did not declare the deadline
(www.agroinvestor.ru/companies/news/30954-eko-kultura-budet-upravlyat-do-250-gektarov-teplits-v-kitae/).
25 https://uz.sputniknews.ru/economy/20190326/11093797.html 26 https://www.agroinvestor.ru/investments/news/31767-eko-kultura-vlozhit-1-1-mlrd-v-teplichnyy-kompleks/ 43 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2 Ltd «MANGEMENT COMPANY «TECHNOLOGII TEPLICHNOGO ROSTA»
The main office: Address: 191186, Saint-Petersburg, Embankment of the river Moika, 7А, office 501 Теl.: +7 (812) 327-39-29 Web-site: www.ghgt.ru The owner and General Director is Rukin Sergei Ilich.
«Technologii Teplichnogo Rosta» is one of the leaders in the market of greenhouse vegetables in Russia.
Table 13. List functioning/planned greenhouses of holding «Technologii Teplichnogo Rosta» Functioning greenhouses Volume, thous. Greenhouse Region Area, ha Crops tons «Lukhovitskie ovoshchi», tomatoes, 1 Moscow region 10 12 first line cucumbers «TyumenAgro», first and 2 Tyumen region 13 17,1 second lines tomatoes, 3 «Donskaya usadba» Rostov region 11,5 14,7 cucumbers TOTAL 34,5 43,8
Planned greenhouses Volume, Launch Greenhouse Region thous. Area, ha Crops deadline tons The launch of the «Lukhovitskie ovoshchi» tomatoes, second line - 1 the second line is under Moscow region 40 31,8 2019, the launch cucumbers construction of energy centre - 2020 «TyumenAgro» The launch of 2 the third line is under Tyumen region 17,8 the third line - construction 2020 «Zhurinichi» The construction time is tomatoes, 3 Bryansk region 4,8 7,2 2020 extending but it will be cucumbers completed. «Michurinskij» the first 17 tomatoes, 4 The project was Tambov region line - 31,9 2019 the first line cucumbers suspended. total - 99,7 Nizhny the first tomatoes, 5 «Nizhegorodskii» Novgorod 2020 line - 17,3 cucumbers region «Donskaya usadba» - the third tomatoes, 6 Rostov region 2020 will be completed line - 5,2 cucumbers TOTAL 61,8 111,2
TOTAL: FUNCTIONING AND 96,3 thous. tons of 155 ha of greenhouses
44 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 PLANNED GREENHOUSES vegetables The enterprise ‘Technologii Teplichnogo Rosta’ consists of: ✓ the management company, ✓ the trading house, ✓ 3 functioning hi-tech greenhouses, ✓ 3 built greenhouses, ✓ the logistics centre with an area of 19 thous. m2 with modern equipment in Moscow region.
The number of employees in the holding is estimated around 1000 persons. After the project implementation the holding will produce about 96 thousand tons of products, 6,4% of Russian production.
3 «DOLINA OVOSHCHEJ Group»
The main office: Address: 117393, Moscow, Profsoyuznaya st., 56 Теl.: +7 (495) 246-03-30 – Moscow, +7 (812) 646-50-42 – Saint-Petersburg, +7 (912) 770-16-91 - Chelyabinsk E-mail: [email protected] Web-site: www.dolina-o.ru
The research and production company «FITO», which started to built G5 greenhouses in Russia together with a Dutch company is using Ultra Clima.
Features of the production in «Dolina Ovoshchey Group» are: ✓ technology allows to control climate into the greenhouses to high precision; ✓ biological crop protection in the greenhouses; ✓ pollination by bumblebees; ✓ automated irrigation technology «inflow-outflow»; ✓ additional lighting powered from own energy centre with a capacity 60 MW, 1000-wattful lamps; ✓ logistics centres in Voronezh, Moscow, Saint-Petersburg, Kazan and Chelyabinsk.
Their partners are: ✓ Ltd «Research and Production company FITO» (further - «FITO»); ✓ Ltd «PKF Teplichnye Tekhnologii» (further - «Teplichnye Tekhnologii»); ✓ Ltd «TeplicStrojUniversal».
Their grown vegetables are: ✓ ‘standard’ tomatoes as well beef, plum, pink, grapevine and cherry tomatoes; ✓ cucumbers Meva, Gerakl, Demurrage and Kibria; ✓ salad ‘Aficion’.
There are 2 greenhouse complexes in Lipetsk region: ✓ Greenhouse «Eleckie ovoshchi» - The total area is approximately 45 hectares ✓ Greenhouse «LipetskAgro» - In total 6 lines with a total area of approximately 60 hectares. The sixth line has been fininalized in a complex of over 13 hectares. In 2018 around 62 thousand tons of vegetables were produced. «Dolina Ovoshchey Group» is a leader in high yields in
45 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Russia. The average yield is 160 kg of vegetables per 1 m2 in the high-tech semiclosed type greenhouses (https://www.kommersant.ru/doc/3512196)
1.9.4 THE LARGE INDEPENDENT PRODUCERS OF GREENHOUSE VEGETABLES (NOT INCLUDED INTO THE AGRICULTURAL HOLDINGS)
1 JSC «AGROCOMBINAT YUZHNY»
Address: 369303, Karachayevo-Cherkessian Republic, Ust-Dzheguta-3 Теl.: +7 (863) 309-07-10, 309-07-15 Email: [email protected]
Address: 369387, Karachayevo-Cherkessian Republic, Malokarachayevsky District, Krasnyi Kurgan, M. Botashev Street, 11 Теl.: +7 (87875) 754-35, 755-54 E-mail: [email protected] Web-site: www.sistema.ru, www.ahstep.ru/yuzhny-agrokombinat
The enterprise was established in 1989 and is/was the largest greenhouse in Europe and Russia – 144 hectares of glass greenhouses. But all these greenhouses are quite outdated and provide low levels of yields compared to the more modern ones.
In 2015 it was bought by the joint-stock financial corporation «Sistema» www.sistema.ru. Over the last years «Sistema» has upgraded the agrocombinat: the greenhouses were modernized, seedlings department was put on production, etc. After finishing the planned work the volume of production can reach 75−80 thousand tons of vegetables per year (http://www.agroinvestor.ru/investments/article/23096- yuzhnyy-kak-chast-sistemy/full/#cut).
In the past, the agrocombinal grew up to 20 types of products, including roses. But growing some types of products was quite cost-ineffective. Now the agrocombinat grows cucumbers and tomatoes only, about 50 thousand tons per year.
The vegetables from «Agrocombinal Yuzhny» are supplied to the large retail chains in Moscow, Saint- Petersburg and other cities («Auchan», «Perekriostok», «Metro» etc.).
2 Ltd «GREENHOUSE «ZELENAYA LINIYA»
Address: 350072, Krasnodar Krai, Plastunovskaya Теl.: +7 (861) 277-45-54, 861-49-30 Web-site: http://magnit-info.ru
The greenhouse complex is an investment project of JSC «Magnit». It has the retail chain with the same name. It is the second largest retailer in Russia.
46 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The greenhouse complex was established in 2011 to cover its own demand in fresh vegetables. The area of greenhouses is 85 hectares: 50 ha – cucumbers, 30 ha – tomatoes, 4 ha - seedlings, 0,8 ha – greenery and salad.
Now JSC «Magnit» is building a new greenhouse complex for tomato growing with a total area of about 60 hectares in Tihoreckij district of Krasnodar Krai. The investments are valued at around 170 mln. EUR.
The greenhouses complex covers the demand of the retail chain «Magnit» in cucumbers by 60% and in tomatoes by 10%. The launch of the new greenhouse complex can cover the demand in tomatoes by 20–30% (https://kuban.rbc.ru/krasnodar/freenews/5b6a8c369a79476b8219e1da).
3 Ltd «Greenhouse «Majskij»
422527, Zelenodolskij municipal district, Osinovo, Gagarin Str., 15 Phone : +7 (843) 524-21-21 E-mail : [email protected] www.maiski.ru
The enterprise was established in 1969. The total area is 36 hectares, approximately 42 thousand tons of products are produced annually. In 2017 the yield of cucumbers in photoculture was 203 kg/m2, and for tomatoes 114,7 kg/m2.
Sales geography — all Russia.
The crop protection in the greenhouses complex is biological. Their own production of entomophages reaches 1 bln. species (units) per year and the enterprise uses bumblebees for pollination.
47 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
1.10 GOVERNMENT SUPPORT
In July 2012 the State Program for Development of Agriculture till 2020 was approved by the Government of the Russian Federation. 27 The support of the development of the greenhouse sector was as followed:
✓ the part of the interest charges by the investment credits was subsidized; 28 ✓ since 2015 20% of capital costs were co-financed. 29
The receivers of subsidizing of the capital costs for construction (modernization) of greenhouses were the large producers, both independent and included into the holdings.
The regulations of state support have changed since January 2017:
✓ The subsidizing of the part of the interest charges by the investment credits was changed by the privileged rate of interest – no more than 5%. 30
This type of support was available only for the investment projects shortlisted by the Commission of the Ministry of Agriculture of the Russian Federation. For example, during 2015- 2017 56 investment projects were selected with the total area of 434 hectare valued at 912 mln. EUR with a total subsidy budget of 176 mln. EUR. 31
✓ The co-financing (subsiding) of 20% of the capital costs (without project work, excluding VAT) was available only after launching the greenhouse, depending upon the availability of public funds.
In 2018 the co-financing of 20% of capital costs was decreased to 10%. 32
In October 2018 the Ministry of Agriculture of the Russian Federation again announced a change in the system of the government support in 2019: ✓ it is planned to increase the focus on growth in exports of agricultural products to 38 bln. EUR in 2024 and on support of small and medium-sized entrepreneurship in the greenhouse sector;
✓ the co-financing of capital costs in the greenhouse sector was cancelled.
27 Decree of the Government of the Russian Federation № 717 of 14.07.2012 «State Program for Development of Agriculture and Regulation of Agricultural Commodity Markets for 2013 – 2020» 28 Decree of the Government of the Russian Federation № 1460 of 28.12.2012 (last updated 25.05.2016). 29 Decree of the Government of the Russian Federation № 624 от 24.06.2015 and the Orders of the Ministry of Agriculture: № 317 of 23.07.2015 and № 318 of 24.07.2015. 30 Decree of the Government of the Russian Federation № 1528 от 29.12.2016. 31 https://fruitnews.ru/technology/255-teplitsy/49572-minselkhoz-ploshchad-teplits-i-parnikov-v- selkhozorganizatsiyakh-prevysila-3-tys-ga.html 32 http://greentalk.ru/topic/12868/ от 13.10.2018 48 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Taking into account, the cancelation of the co-financing of capital costs, the Russian Fruit and Vegetable Union addressed the proposal to the Ministry of Agriculture to bring in modifications in the system of the government support of the greenhouse sector and to increase the maximum period of the privileged project credit from 8 to 12 years. The Ministry of Agriculture of the Russian Federation addressed this proposal to the Government of the Russian Federation. It was approved. By October 1, 2019 the Ministry of Agriculture of the Russian Federation should prepare a draft of the changes in the legal framework. 33
It is known from the public sources that in some regions the co-financing of the capital costs come from the local budget, for example, in Moscow region.
According to tax legislation, the agricultural producers have a profit tax relief: the profit tax for agricultural producers (including the greenhouse sector) in Russia is 0%.
33 the article from the journal «Agroinvestor» https://www.agroinvestor.ru/technologies/news/30865- plodoovoshchnoy-soyuz-prosit-gospodderzhku/; https://agro-exim.com/ru/news/pravitelstvo-rf-odobrilo-proekt-lgotnogo-kreditovaniya-dlya-teplichnyh-hozyajstv/ 49 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.11 PERSPECTIVES OF THE GREENHOUSE SECTOR. INVESTMENT PROJECTS
1.11.1 PERSPECTIVES OF THE GREENHOUSE SECTOR
According to the data of the state program, 1.528 hectares of glass greenhouses should be launched during 2015-2020. In reality 808 hectares were launched during the period 2015-2018.
According the latests estimations for 2019-2020, 1.288 hectares of greenhouses will be launched, which is 240 hectares below the foreseen plans of the Russian Ministry of Agriculture.
Picture 30. The plan of the Ministry of Agriculture of the Russian Federation for launching of modernized and new greenhouses during 2015-2025, actual launching of the greenhouses during 2015-2018 and 2019-2020 forecast, ha
Sources: https://marketing.rbc.ru/articles/1019/, https://1prime.ru/consumer_markets/20180125/828381843.html, https://www.agroinvestor.ru/analytics/news/31099-za-pyat-let-proizvodstvo-teplichnykh-ovoshchey-udvoitsya/, http://ikar.ru/lenta/677.html, https://www.agroxxi.ru/rossiiskie-agronovosti/v-2019-godu-v-rossiiskih-teplicah-budet- proizvedeno-1-3-mln-tonn-ovoschei.html,
By the beginning of 2019, about 450 hectares of winter greenhouses were built in the Russia Federation with different percentage completed: ✓ high percentage completion – 134 hectares; ✓ percentage completion more than 80% - 58 hectares; ✓ percentage completion 30-80% - 109 hectares; ✓ percentage completion less than 30% - 148 hectares; ✓ in the planning stage, launching before 2021 – 500 hectares. Source: journal «Gavrish», № 1 2019
50 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 In 2019 the launching of some large greenhouses was announced, which will lead to an increase of the capacity of the greenhuouse area in Russia with around 250 hectares.
According to Executive Director of the Vegetable Union Aleksandr Gorkin, many planned projects might not be implemented, because of the value appreciation and the lengthening of repayment period and last but not least the decrease of the co-financing of capital costs from 20% to 10% in 2018, followed by the cancellation of the co-financing of capital costs for greenhouse building. 34
To meet the demand of the population of Russia in greenhouse vegetables, the capacity should increase by 3.300 hectares — more than twice, according to the estimates of the association «Greenhouses of Russia».35 This will be quite a challenge, considering the breakdown of old greenhouses. Experts estimates that in the upcoming 5 years 300 - 500 hectares of greenhouses might stop working. Now some old greenhouses can be replaced by new ones. However, the competition in the greenhouse sector will increase. The old greenhouses might stop their activities sooner, because their productivity is significantly less than the productivity of the new modern and more efficient greenhouses.
The building of new greenhouses will be less active since 2020. According to experts, «the businessmen invest unwillingly to the sector where the game rules are very changeable». According to forecasts of the association «Greenhouses of Russia» under the conditions of the reduction of the government support the area of winter greenhouses will be 2,7 thousand hectares in 2024. Note and for reference: now the area of winter greenhouses is 2,4 thousand hectares. If the government support will be preserved at the level of 2018 (the co-financing of 10% of the capital costs), it is expected that the area of functioning greenhouses will be 3,1 - 3,2 thousand hectares in 2024. 36
According to experts of Ltd «Rusmarketconsulting», the drop in greenhouse construction in Russia is very likely. Nevertheless, the total volume of production will not decrease because the yield in the modern greenhouses is significantly higher. The modern intensive greenhouses allow to get 3 - 5 times more products per unit of area than the traditional ones.
In general, many efforts will depend on the plans for implementation by the large Russian players in the greenhouse sector, which means the building of new greenhouses («EKO-KULTURA», «Tekhnologii teplichnogo rosta», «Agrocultura Group», «Bogorodskie ovoshchi» etc.).
Development potential of the greenhouses producing niche vegetables
According to the forecasts of the Russian National Fruit and Vegetable Union, the most active development of niche greenhouse vegetables production (salad, eggplants, zucchini/vegetable marrows, radish and cherry tomatoes) is expected after 2020. The main reasons for that are:
34 https://www.agroinvestor.ru/analytics/news/31099-za-pyat-let-proizvodstvo-teplichnykh-ovoshchey-udvoitsya/ 35 http://teplicy.su/content/чтобы-был-российский-продукт-нужна-экономика-проектов 36 http://teplicy.su/content/план-минсельхоза-по-увеличению-производства-тепличных-овощей-до-2-млн- тонн-невыполним-без 51 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ to that moment there will be overproduction of traditional cucumbers and tomatoes in the market. The greenhouses will reach the full capacity and should either continue to produce cucumber and tomatoes or diversify production and start to produce niche vegetables; ✓ the price for eggplants, sweet (bell) peppers and cherry tomatoes hold steady all year as opposed to the seasonal fluctuation of the price for tomatoes and cucumbers;
✓ the retailers and large retail chains look for reliable suppliers of niche vegetables but only some enterprises can provide steady supplies all year round.
According to estimates of the consulting company «Tekhnologii Rosta», the internal market demand in sweet (bell) peppers and eggplants is about 300 thousand tons per year, but now their production is too small and even are underreported by official statistics. The reasons to produce small volume of niche vegetables were discussed on the section 1.5.2.
1.11.2 INVESTMENT PROJECTS
Many producers in the Russian Federation plan:
▪ either to widen greenhouse areas
For example, MK «Technologii Teplichnogo Rosta» has 3 large modern greenhouse complexes and is building another 3 greenhouse complexes in Moscow, Bryansk, Rostov and Nizhny Novgorod regions.
▪ or to modernize production
For example, JSC «Greenhouse «Gor'kovskij» in Nizhny Novgorod region plans to install photoculture (electric light) in the greenhouses and to adopt the technology of «interplanting».
The list of large investment projects is in the Addendum 1 «Investments projects» and Addendum 2 «Investments projects-partners».
An investment project review leads to the following conclusions:
1 Some 3 - 4 years ago, the new players entered the market, but now there are no new players. Some projects will be finalized.
2 Many projects are carried out by agricultural holdings, and their share is growing. In the list of the investment projects 2/3 of areas are the projects of holdings. And only 1/3 of areas are the projects of independent companies.
3 More active regions involved:
4 projects are located in Moscow region. The reasons for this location: the concentration of the distribution centres of the retail chains near Moscow; freshness of traded products – within 24 hours the products go from producer to the distribution centres and to the retail chains. Moscow also gives a supplementary subsidies from the local budget,
52 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 A part of the investement projects is located in central Russia – Lipetsk, Belgorod, Kaluga regions – the regions with high market capacity,
A part of the greenhouse projects is located in southern Russia (Rostov region, Crimea, Stavropol Krai, etc.) because of natural and climatic conditions: the expenditures for heating and lighting are lower otherwise things being equal, more sunny days, and others,
So before the investement projects were mainly located in Central and Volga Federal districts (now is the same situation), however there are some greenhouse projects in Siberia, Uraland and Irkutsk as well.
4 Earlier the greenhouses were aimed at cucumber growing, now the number of greenhouses for tomato growing has increased; it is seldom planned to grow eggplants,
5 Some years ago the projects were small (3 - 6 ha), now the projects have become larger: a project or a line of the big greenhouse project is expected to have 10 - 20 hecaters,
6 The projects are implemented slowly: normally projects start to realize later, than it was initially planned.
But not all projects will be completed. Taking into account, the significant changes in the government support and the difficulties to receive credits, even the large players decide to cancel or to postpone the implementation of their greenhouse investement projects.
For example, agroholding «EKO-KULTURA» declared first to build 560 hectares of greenhouses. In July 2019 only 207 hectares were launched. According to experts, from 6 declared projects (353 hectares) only 3 projects (145 hectares) might be implemented and realized.
The company «Greenhouse» declared their greenhouse projects with a total area of 108 hectares in Belgorod region. Now only the first line of the greenhouse complex (25 hectares) is functioning. About 20 thousand tons of vegetables per year are produced. It is more than likely that the complete declared project will at the end not be completed.
Also, the company «Greenhouse» planned to build a greenhouse complex at the Far East. It is expected to grow tomatoes, cucumbers, sweet (bell) peppers at the area of 300 hectares, including supply to China. The capital costs were valued at 1.080 mln. EUR (80 bln. RUB). However, it is found that there are no available resources of electricity and gas in the region. The cancellation of co- financing of the part of capital costs influenced the decision as well. Additionally, the import duties are high in China. The company gave up and it seems it skiped their plan. 37
According to estimates of the association «Greenhouses of Russia» and other experts, the consolidation of the greenhouse sector and further growing of successful greenhouse projects with the pooling of capital and management potential will continue. Furthermore, the professional approach to the management of greenhouses will also increase.
37 https://www.bfm.ru/news/412190 53 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
54 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.12 THE FEATURES AND PROBLEMS OF GREENHOUSE SECTOR
1.12.1 THE FEATURES OF THE GREENHOUSE SECTOR
The trend of last years is the enlargement of the investment projects and their further copying (scale increasing) in several regions for sales in regional markets. In 2014-2016 the investor announced projects with an area of 8 − 12 hectares. In 2017-2018 they announced projects with an area of 15 − 20 hectares and more. 38
The high dependence on imported fresh vegetables. There is a trend of import substitution: in 2013 the share of imported fesh vegetables was 67%, in 2018 – 47%. It happened bacause the increase in the volume of cucumber production by 61% and tomato production by 110% (during 2013-2018). In spite of the significant increase, the market of tomatoes still has the high dependence on import – the share of imported tomatoes in 2018 was 59%. The markets of sweet (bell) peppers and eggplants have the highest level of the dependence on import – 98 - 100% of imports.
The high dependence on imported equipment and replacement parts for greenhouses, packaging lines, propagation material, crop protection agents. There is an import substitution in some sectors. For example, earlier aluminium and steel greenhouse construction was imported. Now they are up to 30% of Russian origin (production). The specialized equipment and machines, seeds and fetilizers have still a high dependence on the import.
Using of the modern technology production with photoculture (additional lighting). Over the last years the amount of investment per 1 hectare has increased not only because of the increase in currency rate but also because of the changes in equipment and systems. For example, 5 - 6 years ago photoculture was an exception in Russian greenhouses. Now the greenhouses have additional lighting not only for cucumbers and salad but for tomatoes as well (source: https://fruitnews.ru/technology/255- teplitsy/49572-minselkhoz-ploshchad-teplits-i-parnikov-v-selkhozorganizatsiyakh-prevysila-3-tys-ga.html).
1.12.2 THE PROBLEMS OF THE GREENHOUSE SECTOR
In general in the greenhouse sector in Russia, there is:
✓ Insufficiency and uncertainty of the Russian government support;
✓ The high dependence of the greenhouse sector on power supply;
✓ The problems in human resources, deficit of specialists familiar with the modern greenhouse technologies.
In section 2.1.2 will be shown that about 40% of variable operating costs are electricity payments. Other problems are for example lack of human resources, this means deficit of specialists who are familiar with the modern and most innovative (Netherlands) greenhouse technology.
38 http://www.t-rost.ru/news_articals/media_articals_analitics/greenhouse_articles/greenhouse_prospective 55 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 1.13 SWOT–ANALYSIS OF THE GREENHOUSE SECTOR IN RUSSIA
Table 14. SWOT–analysis of the greenhouse sector in Russia Internal factors Strengths Weaknesses ✓ Organization of large greenhouse holdings, ✓ Dependence on imports and currency rate. including vegetable production, logistics & sales. ✓ Insufficient/uncertainty government support. ✓ Enlargement of the investment projects and ✓ Mistakes in choosing the right technology. their copying in several regions. ✓ Shortage of skilled personnel. ✓ Increase of the share of Russian equipment ✓ Difficulties in getting credit. and machinery. ✓ The leading producers have already the experience in the greenhouse sector. External factors Opportunities Threats ✓ High demand in Russia for greenhouse ✓ Cancellation of Russian counter sanctions, products produced commercially. improvement competition with imported products ✓ Profit tax relief for agricultural producers. (for example, Kazakhstan and Uzbekistan). ✓ Potential of import substitution and export. ✓ Gradual market saturation which can decrease the cost efficiency and increase the return of greenhouse investment projects. ✓ Faster growth of prices for raw materials, mainly electricity. ✓ Decrease of population incomes.
1.14 INTERMEDIATE CONCLUSIONS
The most active growth and development within the Russian Federation will be in the greenhouse vegetable production.
Despite the growth of greenhouse vegetables production in Russia, its deficit still exists. The share of cucumber imports is the lowest among other types of greenhouse vegetables, 17%, the share of imported tomatoes is 59% (2018). The share of imports will continue to decline, the process of replacing old-fashioned greenhouses with new modern ones will also continue.
The study shows that due to a decrease in state support, implementation of investment projects has also decreased since 2018. In the next five years, mainly projects that have already been started will be implemented.
It is planned that in 2019 - 2020 about 450 - 500 hectares of new greenhouses will be built in Russia.
The growth of tomato production in the next 3 – 5 years will be more substantial than the growth of cucumber production: since the cucumber market in Russia is already almost saturated by own domestic products, most of the ongoing and new greenhouse projects are focused on growing tomatoes. 56 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
A possible cancellation of the Russian food embargo may affect the tomato market and the implementation of tomato greenhouse projects: imported tomatoes have a more competitive price (due to the climatic conditions for tomato production in other traditional supllying countries).
The most active development of the production of niche greenhouse vegetables (salad crops, eggplant, zucchini, radishes, cherry tomatoes) is expected after 2020.
Active developments in the flower production in greenhouses is not expected in the near future in Russia. According to experts, the main factor hindering the development of this sector is the lack of state support. In this regard, in the last 5-7 years, a number of flower producers in Russia have stopped working, and new projects are hardly being launched. Among the 30-40 announced investment projects for the organization of greenhouse complexes, only 1 is related to floriculture. There are currently no plans to introduce state support.
57 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2 PRODUCT CATEGORIES
2.1 INVESTMENT AND OPERATING COSTS FOR PROJECTS
There are two groups of greenhouse project costs: ✓ investment costs; ✓ operating expenses.
These two groups will be considered in more detail. The most large/significant segments for further study will be defined.
2.1.1 INVESTMENT COSTS
The investment costs, or capital expenditure, СapEx are the expenses for equipment and construction of buildings and structures.
2.1.1.1 AMOUNT OF CAPITAL EXPENDITURE
An important point to calculate the greenhouse cost (and therefore the structure of capital expenditure) is the presence or absence of an energy center.
The amount of capital expenditure is also related to the development strategy of a producer: for example, using of additional lighting, which share of products will be packed for retail, and so on.
Furthermore, the greenhouse cost depends on the list and cost of equipment (Russian or imported).
A few years ago, the average investment in a greenhouse projects per 1 hectare was: for tomatoes – 3 - 4 mln EUR, for cucumbers -- 3.5 - 4.5 mln EUR ... and higher.
Currently, total investments costs per 1 hectare are estimated at an average of around 3 mln EUR (about 220 million rubles including VAT).
The decrease in investment costs occurred for the following reasons: ✓ consolidation of greenhouse projects; ✓ increased competition and experience, the use of «standard» projects and solutions; ✓ growth in the share of domestic equipment / materials, including in design, control systems, horticultural lighting, construction, etc., ✓ direct connection to networks instead of building energy centers (cogeneration/gas piston unit).
With 100% horticultural lighting and an energy center, the project cost can reach 3.5 - 3.6 mln EUR (260–270 mln. RUB) (https://www.gazeta.ru/business/2016/04/17/8172659.shtml).
The average investement cost of 1 hectare of greenhouses in 2018 in Russia was 182 mln. RUB. 39
39 Source: the presentation of the head of the Centre of branch economy Rykova I.N. «The effectiveness of the measures of government support of the greenhouses» from the forum «Greenhouses of Russia. 2018» 58 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.1.1.2 STRUCTURE OF CAPITAL EXPENDITURE
The capital expenditure includes:
✓ the expenses for equipment; ✓ the building and installation activities.
The approximate ration of these 2 segments is 40/60 or 50/50, 1,2 mln EUR / 1,8 mln EUR or 1,5 / 1,5 mln EUR.
Picture 31. The structure of capital expenditure
The average cost of equipment is 1.5 - 1.8 thousand EUR per 1 hectare of greenhouses in the Russian Federation. The cost for the building and installation activities is about 1.2 - 1.5 thousand EUR.
In the table below the main groups of equipment for a modern greenhouse are listed.
Table 15. The list, value and share of main groups of equipment, % and thous. EUR per 1 ha Size of The share of the segment The share of the segment in the Market segments market in the total expenses for total expenses for equipment, segment equipment, % thous. EUR per 1 ha Greenhouse Large 27-35% 460-600 Construction Heating & Power Large 25-35% 425-600 Equipment Climate Control and Large 30-35% 510-600 (LED) Lighting Automatization Small 3-6% 51-102 After Harvest Lines Small 1% 17 Logistics of Plant Small 1% 17 Products TOTAL 100% 1.700
59 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 According to experts, the investment in a semi-closed type greenhouse is about 10 - 35% higher (relative to the VENLO type of modern greenhouses) (https://www.agroinvestor.ru/technologies/article/26539-teplichnaya-evolyutsiya/, http://rusteplica.ru/tehnologii- pjatogo-pokolenija/).
According to data, the share of imported equipment can reach 70 - 80%. (https://www.agroinvestor.ru/investments/article/23096-yuzhnyy-kak-chast-sistemy/full/#cut)
But this import share is gradually decreasing. For example, in September 2017, with the assistance of a project investor from a Dutch company, the Ltd «Lipeckij Zavod Teplichnyh Konstrukcij» was opened. The main direction of this activity is the production of greenhouse structures and equipment. «LZTK» is a supplier of designs for greenhouse complexes projects of «Ovoshchi Chernozemia» Ltd and «Solnechniy Dar» Ltd, which are part of the agricultural holding «EKO-KULTURA» and are currently being implemented.
2.1.2 OPERATING EXPENSES
The operating expenses, OpEx, are the routine expenses for the production of goods and services.
In the greenhouse sector the operating expenses include: ✓ labour expenses, ✓ variable costs, ✓ semi-fixed costs, ✓ deprecation, ✓ rate of interest, ✓ corporate property tax.
Over the last couple of years the labour expenses have grown.
The main part is variable costs – on average 55 - 65% of the operating expenses.
Picture 32. The structure of the operating costs
60 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Among the variable costs are the costs for: ✓ seeds, ✓ substrate, ✓ mineral fertilizers, ✓ plant protection agents, ✓ disinfection, ✓ packaging, ✓ other materials, ✓ payment for water, gas and electricity.
Among the variable costs the payment for electricity is the largest (no less than 40%), next one is payment for gas. The cost for presales, processing and packaging are growing (see the picture below).
These costs depend heavily on the tariffs in different regions (they can differ significantly!) and in different enterprises. These costs depend on the applied engineering decisions as well.
Picture 33. The example of the structure of the variable costs
61 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.2 PROPAGATION MATERIAL
VEGETABLE AND FLOWER SEEDS
The large vegetable growers in Russia use mainly imported seeds for cucumbers and tomatoes. This is especially true of the varieties for photoculture. There are no Russian varieties for photoculture.
Among the foreign seed producers the largest share in the seed market for vegetable greenhouses is occupied by the Dutch «Rijk Zwaan Holding» www.rijkzwaan.ru and «Enza Zaden www.enzazaden.com.
1 LLC «Rijk Zwaan Rus» — the branch in Russia 125438 Moscow, Mikhalkovskaja str., 63 B, building 1, office 12 Теl.: +7 (495) 940-54-84, 940-54-83 [email protected] www.rijkzwaan.ru
Rijk Zwaan is one of five world leaders in this segment with the turnover more than 400 mln. EUR.
2 «Enza Zaden Russia» The Netherlands Теl.: +7 (495) 287-36-08 [email protected] www.enzazaden.com
Enza Zaden offers seeds for more than 30 crops, including the greenhouse crops. It produces more than 900 tons of seeds per year.
The following companies have significantly smaller shares:
3 «Syngenta» Moscow, Letnikovskaya str., 2, building 3 Тел.: +7 (495) 933-77-55, 933-77-56 www.syngenta.ru
In 2017 the Swiss company (and former Dutch company) Syngenta was bought by the Chinese state chemical corporation ChemChina www.chemchina.com.cn/en/. Syngenta is one of the suplliers of seeds for the floriculture sector.
4 brand «DeRuiter» from «Bayer»
Germany (www.bayer.com) and in Russia «Bayer», JSC (www.bayer.ru)
«De Ruiter» is part of Bayer and based in The Netherlands and specialized in the seeds of tomatoes, cucumbers, bell (sweet) peppers, egg-plants and seedlings for high-tech greenhouses.
62 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The largest Russian seed producer is группа компаний «Gavrish».
5 Group of companies «GAVRISH» 127015, Moscow, Novodmitrovskaya str., 2, building 2, 7 floor Теl.: +7 (800) 550-47-02, +7 (499) 686-10-56 E-mail: [email protected] www.gavrish.ru/en On-line shop www.gavrish.shop
The company «Gavrish» was established in 1993. Now it has 5 breeding centres (in Moscow and Tula regions, Krasnodar Kai, Turkey and Kingdom of Jordan).
Seeds: ✓ vegetable crops for open field and greenhouses, flowers; ✓ for all types of enterprises; ✓ in Russia, CIS and other surrounding countries.
Types of activity: ✓ selection and breeding; ✓ nurseries for decorative and fruit crops in Tula region and Krasnodar Krai; ✓ technology development and support of varieties and hybrids cultivation; ✓ publishing: 3 professional journals, including «Gavrish» — the journal for specialists in the greenhouse sector; professional books for vegetable production, selection and breeding of vegetable crops. ✓ training programs, seminars, consultations, further education courses.
6 Аgroholding «Poisk» 140153, Moscow region, Ramensky district, der. Vereya, Ostrovetskoe highway, p. 500, 501 Tel.: +7 (495) 660-93-73, 992-56-57 E-mail: [email protected] Online store www.online.semenasad.ru Head Zakharov Vladimir Anatolyevich E-mail: [email protected] www.semenasad.ru
The Russian enterprise produces vegetable seeds for greenhouses and is specialized in flower seeds for industrial and private cultivation.
It is impossible to calculate the volume of imports of cucumber and tomatoes seeds because CC FEA code 1209918000 includes «vegetable seeds» — cucumbers, egg-plants, bell (sweet) peppers, cabbages, tomatoes etc. — both for open field and for greenhouse conditions.
63 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The volume of imports is provided by several experts. In the framework of this study it has been decided to accept for the calculation: ✓ 2.5 plants are required per 1 m2 on average; ✓ the average price of 1.000 seeds of ‘standard’ varieties is about 400 - 500 EUR; ✓ the average price of 1.000 seeds of cherry tomatoes is about 1.400 EUR; ✓ the share of ‘standard’ varieties is 80%, the share of more expensive varieties, like cherry tomatoes is about 20%.
It is required about 39 mln. EUR to seed 2,45 thousand hectare of winter greenhouses. The data of the experts from Ltd «Rusmarketconsulting» is the same as the data from the company «Gavrish». Annually seed from The Netherlands cost about 27 - 41 mln. EUR (2 - 3 bln. RUB). 40
Table 16. The capacity of the Russian markets of greenhouse vegetable seeds Criteria Russian production Imports Total Market capacity of seeds, mln. EUR 6 33 39 The share in value terms, % of market capacity 15% 85% 100%
The president of agroholing «EKO-KULTURA» (one of the largest greenhouse holdings) Aleksandr Rudakov signed a contract with the representatives of two Dutch companies for exclusive supply of seeds. Later 2 more contracts will be signed with companies from the Netherlands and Israel. In Autumn 2019 «ECOCULTURE» planne to grow 5 unique varieties of tomatoes represented to Russian customers for the first time. The holding will reserve 80 hectares of greenhouse area for these new varieties. The expected production is more than 35 thousand tons per year. The seed costs will be more than 250 mln. RUB per year. 41
SEEDLINGS, YOUNG PLANTS
This type of propagation material is grown in the greenhouses in special seedling complexes.
During the period when there is no demand for propagation material, the seedling complexes can be used for salad growing.
The main suppliers of equipment for seedling complexes in Russia are mainly companies from the Netherlands, like:
✓ Codema codema.nl — lettuces lines, seedling complexes; ✓ Boosman van Zaal www.bosmanvanzaal.com — seedling and flower complexes; ✓ KG System kgsystems.nl — seedling complexes.
40 https://www.nsss-russia.ru/2018/11/01/ничего-нового-все-упирается-в-деньги/ 41 http://aph-ecoculture.ru/eko-kultura-vpervye-na-rossijskom-rynke-eksklyuzivno-predstavit-pyat-sortov- gollandskix-tomatov/ 64 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
FLOWER BULBS AND ROSE SEEDLINGS
The total production of flower bulbs, tubers, tuberous roots, corms and rhizomes was 9.1 mln. pieces in 2018 in the agricultural enterprises of Russia. For reference only: 5.47 mln. pieces in 2017.42 446 mln. pieces were imported. Around 98% of the bulbs are imported (mainly from the Netherlands) – 19,3 mln. EUR or 88% of total imports of bulbs in value terms in 2018.
Table 17. Russian market capacity of flower bulbs, tubers, tuberous roots, corms and rhizomes Criteria Russian production Imports Total Market capacity of bulbs, tubers, tuberous 9 446 455 roots, corms and rhizomes, mln. pieces The share in volume terms, 2% 98% 100% % of market capacity Market capacity of bulbs, tubers, tuberous 0.4 21.9 22.3 roots, corms and rhizomes, mln. EUR The share in value terms, 2% 98% 100% % of market capacity
Among bulbs, the tulip is the most important market segment requested for commercial growing. To analyse the foreign trade, the CC FEA code was used (060110) - flower bulbs, tubers, tuberous roots, corms and rhizomes dormant.
Table 18. Import of flower bulbs, crowns and rhizomes from the Netherlands to Russia in 2018 Trade Value, mln. EUR Netweight, thous. tons Number, mln. pieces Total 21,9 13,7 445,8 including The Netherlands 19,3 5,5 190,5 The share of the Netherlands 88% 40% 43% Source: FCS RF
Picture 34. Share of the Netherlands in total import of bulbs to Russia in 2018
42 Source: The total yield of crops in the Russian Federation in 2018. Part 2. http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/publications/catalog/doc_1265196018516 65 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The share of tulip bulbs is 57% in value terms and 73% in volume terms of total import of bulbs in 2018.
Table 19. Import of bulbs total and from the Netherlands to Russia in 2018
Trade Value, mnl. Netweight, thous. Number, mln. EUR tons pieces Tulip bulbs 12,4 9,6 323,5 Tulip bulbs of total import 57% 70% 73%
Tulip bulbs from the 10,6 2,9 110,5 Netherlands
Picture 35. Share of tulip bulbs from the total import of bulbs to Russia in 2018
The total import of bulbs in value terms has decreased by 7 mln. EUR, while it has increased in volume terms. It is linked with the increase of supplies from Belarus with the relative low price in 2018.
Table 20. Russian Import and export by CC FEA code 060110 during 2015 - 2018 Import Export Netweight, Number of Trade Netweight, Number of Trade Value, thous. items, mln. Value, thous. items, mln. mln. EUR tones pieces mln. EUR tones pieces 2015 28,9 12,4 401 0,08 0,03 0,6 66 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2016 20,9 9,6 328 0,09 0,03 0,5 2017 23,4 10,9 743 0,05 0,01 0,2 2018 21,9 13,7 446 0,07 0,02 0,2
The import by Russia of bulbs from the Netherlands has decreased: ✓ by 10 mln. EUR; ✓ by 6,7 thous. Tons; ✓ by 226 mln. pieces.
67 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 36. Dynamics of Russian import of bulbs from the Netherlands during 2015 - 2018
In 2018 Russia imported 7.6 mln. EUR of rose seedlings, of which 24% supplied by The Netherlands. 43
Picture 37. Import of seedlings to Russia during 2013 - 2018
Picture 38. Structure of imports of rose seedlings by country of origin in 2013 and 2018, in value 2013 2018
43 CC FEA code 0602400000 - roses, grafted or unvaccinated. 68 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
SOFT FRUIT NURSERY MATERIAL
In Russia, strawberries are not really grown under greenhouse condition, only in open field or using tunnel technology. There is hardly demand in strawberry seedlings in this greenhouse market segment .
However, in Russia there are some small subdivisions to grow strawberry in some greenhouses. The building of such a greenhouse for strawberry growing is on going and more indoor strawberry growing is considered. The producers are going to buy Dutch roots of strawberry «frigo».
Table 21. Main market players in the subsegments «Propagation material» in Russian market Subsegments Russian companies Foreign companies ✓ «Rijk Zwaan Holding», «Enza ✓ Group of companies vegetable & flower Zaden» «GAVRISH» seeds ✓ «Syngenta» ✓ Аgroholding «Poisk» ✓ «Bayer» flower bulbs - The Netherlands
69 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.3 GREENHOUSE CONSTRUCTION
There are old and new style greenhouses in Russia. The majority of greenhouses are old. The modern greenhouses are mainly 4G greenhouses like VENLO. The area of semiclosed greenhouses in Russia is about 160 ha (according to the data of the company «FITO»).
Some investors in greenhouses try to modernize production and to change the old greenhouses to new ones. For example, Agricultural holding «Vyborgec» (Leningrad region), Greenhouse complex «Progress» (Krasnodar Krai), «Majskij» (Republic of Tatarstan), Agricultural holding «Yuzhnyj», etc.
According to official data, the Research and Production company «FITO», is the largest market player. It occupies about 50-60% of the market and builds around 80 - 100 ha of greenhouses annually (from the interview with the director of the research and production company «FITO» Igor Sokolov http://www.fito- system.ru/FITO-kosmichesky-uroven, http://www.fito-system.ru/Lipetsk-agro-Expert).
According to experts and market players, the maximum share of «greenhouse turnkey projects» belongs to the companies from The Netherlands (up to 70 - 80%).
GREENHOUSE TURNKEY PROJECTS
The main companies in the sector of «greenhouse turnkey projects» at the Russian market are according to the journal ‘Agroforum’ the following:
✓ Research and Production company FITO, Ltd «TeplitsSpetsServis» (Russia); ✓ «Hortilife», «Dalsem», «Growtex», «Ruba», APH, KGP (GAKON), Bom Group B.V., Certhon Projects B.V., Bosman Van Zaal, GreenAgro, etc. (The Netherlands); ✓ «Rufera Tecnoagro», «Coinsa» (Spain); ✓ «Deforche Construct» (Belgium); ✓ «AgroItalServis» (Italy); ✓ «Netafim», АIK (Israel). Source: Journal «Agroforum», April 2019, the opinions of the market players and experts.
The majority of customers in Russia choose the companies offering greenhouse turnkey projects. However, some customers try to change basic parts of the greenhouse construction by parts produced in Russia.
Now a days most of the customers in Russia frequently choose for:
- Foreign companies, mainly from The Netherlands; - Research and Production company «FITO»; - «TeplitsSpetsServis».
Below you will find more detailed information about Research and Production company «FITO» and «TeplitsSpetsServis».
70 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 RESEARCH AND PRODUCTION COMPANY «FITO»
Address: Moscow, settlement Sosenskoe, Sosenki, 138 Теl.: +7 (495) 647-89-30, 228-78-47 Email: [email protected], [email protected] www.fito-system.ru, www.lis-agro.com
Since 2013 the company began to cooperate with a Dutch greenhouse building company. They started to build the first semiclosed greenhouse complex using Ultra Clima technology.
Research and Production company «FITO» consists of: ✓ the company FITO – carries out the «greenhouse turnkey projects», research and technology; ✓ Ltd «Laboratoriya Inzhenernyh Sistem» - production of equipment for water management and vegetable, salad and flower growing for large and small greenhouses; Ltd «Laboratoriya Inzhenernyh Sistem» is a successor of «FITO» since 2017; ✓ 2 greenhouses in Lipetsk region: «LipetskAgro» and «Eleckie ovoshchi»The volume of vegetable production was 62 thousand tons in 2018; ✓ Trading house «Dolina Ovoshchej» with 5 regional distribution centers in Russia; ✓ the share in the authorized distributor «GE Jenbacher», Austria, supply of gas reciprocating machines.
Also, together with the partners this company carries out the supply of boiler houses. The company uses boiler equipment of the world brands «Crone», «Viessmann Group» www.viessmann.ru (Germany). It also supplies turnkey energy centers.
By the year 2018 the company «FITO» supplied more than 100 hectares of semiclosed greenhouses.
Equipment of «FITO» (water systems, climate computers) is working in more than 800 hectares of greenhouses in Russia.
In implementing the greenhouse projects, the company for example uses Dutch greenhouse conception and metal structure, German engines and pumps, American microprocessors, etc. The systems of management, automatization and water management are products of the Russian companies Ltd «FITO» and Ltd «Teplichnye Tekhnologii» (http://www.fito-system.ru/Lipetsk-agro-Expert).
The company works in other international markets as well, like in European counties and in Iran (http://www.fito-system.ru/FITO-kosmichesky-uroven).
Some partners of Ltd «FITO» are: ✓ Ltd «Teplichnye Tekhnologii» (design, construction, equipment); ✓ Ltd «Reflux» (lamps); ✓ NPP «NFL» Ltd (lighting system); ✓ company «PF-AgroGroup» (range of services for design and construction of the modern greenhouses).
71 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
3 Ltd «TeplitsSpetsServis» Kaluga region, Maloyaroslavec, Karla Marxa str., 3А Теl.: +7 (48431) 523-45, 523-46, +7 (910) 860-30-30, 912-07-06 Теl.: +7 (910) 912-07-06 www.stroitelstvo-teplic.ru
The main focus of the company is on design, construction, supply of all kind of technology and equipment assembly and the company works closely together with greenhouse companies from the Netherlands .
Picture 39. Geography of the greenhouses implemented by Ltd «TeplitsSpetsServis»
In addition to the greenhouse construction, the company often offers the following engineering support of production, personnel training and consulting by Dutch expert with the practice in the greenhouses in the Netherlands.
Companies in Russia that provide turnkey service can have their own design bureau, or they can contact engineering and design companies, for example:
1 «TES-PROJECT» - www.tesproject.ru 2 «PF-AGROGRUPP» - www.pfagro.ru - Mob.: +7 (495) 769-38-19
STEEL AND ALUMINIUM STRUCTURES
In 2016, 2.9 thousandd tons of aluminium structures were imported to Russia. The demand in aluminium structure was 4.5 thousand tons. The share of imports of aluminium structures was 64%. 44 According to experts, now the share of imported structures is 70%.
44 https://www.gazeta.ru/business/2017/08/01/10814257.shtml?updated 72 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The foreign producers of structures are mainly Dutch companies. The Russian Research and Production company «FITO» is the representative of one of the wellknown Dutch greenhouse company in Russia. It imports metal structures produced by this company. Ltd «TeplitsSpetsServis» imports the structures of a another wellknown Dutch company as well.
The share of Russian companies in production of metal structures for the commercial greenhouses is less than 30%. Generally, a company is specialized in production of steel or aluminium structures, including for greenhouses. In future the share of Russian companies will increase thanks to gaining the experience in production of metal structures.
Russian greenhouse structures are normally cheaper than imported ones, because of logistics (supply, customs procedure, taxes and duties) by 30 - 50% (http://www.fito-system.ru/Lipetsk-agro-Expert, from the interview with the director of the research and production company «FITO» Igor Sokolov http://www.fito- system.ru/FITO-kosmichesky-uroven).
Table 22. Russian producers of metal structure for commercial greenhouses Steel and aluminium Steel structures only Aluminium structures only structures Ltd «Lipeckij Zavod Teplichnyh CJSC «Kurskpromteplica» Company «TATPROF» Konstrukcij» Ltd «Lipeckij Zavod Teplichnyh Ltd «PKF ALYUMINIJ VPK» Ltd «AGRISOVGAZ» Konstrukcij» Ltd «AGRISOVGAZ» Mostly three above mentioned companies, but also other metalworking factories can produce steel structures designed by the customers.
Russian companies supplying imported metal structures for commercial greenhouses are: • Ltd Research and Production Company «FITO»; • Ltd «TeplitsSpetsServis»; • CJSC «Schetelig Rus» - schetelig.ru; • ATS; • Group of companies «Teplichnye sistemy» - ghsystems.ru.
The description of the Ltd Research and Production Company «FITO» and Ltd «TeplitsSpetsServis» are given above.
CJSC «Schetelig Rus» is the representative of Finnish Concern «Schetelig Oy» at the territory of the Russian Federation. Теl.: +7 (812) 336-92-23 Email: [email protected] www.schetelig.com, www.schetelig.ru
The Group of companies «Schetelig» is working successfully in 9 countries for more than 80 years as a supplier of equipment, technologies and material for agriculture. It offers «greenhouse turnkey
73 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 projects» and has worked in Russia since 1995 and their basic activity is the provision of «greenhouse turnkey projects».
Group of companies «Teplichnye sistemy» Voronezh, Svoboda str., 69 Теl.: +7 (800) 500-60-48, +7 (961) 184-69-15 [email protected] ghsystems.ru
The range of services of this enterprise consists of: ✓ turn-key design, production and supply; ✓ complete support (assistance in fund raising, development of business plan and financial model, introduction of the project in the credit company, agronomical support and reaching of the design capacity.
Below is a brief description of the Russian producers of metal structures for the commercial greenhouses:
1 CJSC «Kurskpromteplica» - JSC «GlavTekhKonstrukciya» www.glavtk.ru 2 Ltd «Lipeckij Zavod Teplichnyh Konstrukcij» www.lztk.ru 3 Ltd «AGRISOVGAZ» www.agrisovgaz.ru 4 Company «TATPROF» www.tatprof.ru
1 CJSC «Kurskpromteplica» - JSC «GlavTekhKonstrukciya» Legal address: 305527, Kursk region, Kursk district, Voroshnevo, Sosnovaya str., 1/1 Actual address: 115230, Moscow, Kashirskoe shosse, 19-2 Phone +7 (4712) 735-400, +7 (495) 722-55-61 Е-mail: [email protected] www.glavtk.ru Production in Kursk www.kurskpromteplitsa.ru
The basic activity of this company is: ✓ Design; ✓ Production of steel and aluminium structures for the commercial greenhouses; ✓ Supply of engineering and technology systems; ✓ Engineering; ✓ Construction and assembling of the construction sites; ✓ Turn-key construction, including the greenhouses.
2 Ltd «Lipeckij Zavod Teplichnyh Konstrukcij»
Address: 399071, Lipetsk region, Gryazinskij district, Kazinka, the territory of special economic zone «Lipetsk», building 46, 2, office 1
74 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Теl.: +7 (4742) 57-00-06, 57-00-09, 57-57-50, 57-57-05 www.lztk.ru
The plant was opened in September 2017. The company was established together with a wellkown Dutch company and the Russian agroholding «EKO-KULTURA»: ✓ The Dutch partner is in business of greenhouse structure and internal greenhouse equipment; ✓ «Lipeckij Zavod Teplichnyh Konstrukcij» is a supplier of greenhouse structures for the greenhouses Ltd «Ovoshchi Chernozemya» and Ltd «Solnechnyj dar» which are included into the agroholding «EKO-KULTURA».
The basic activity of this company in Russia is: ✓ Production of the greenhouses and equipment – the main activity; ✓ Agronomical support.
The production capacity of the plant is production of metal structures for 150 ha of greenhouses per year.
3 Ltd «AGRISOVGAZ» The reception of the General Director: Address: Mirnaya str., 3, Maloyaroslavec, Kaluga region, 249092 Теl.: +7 (495) 647-04-44, доб. 1035, 1000 Helpline: +7 (800) 302-10-35 E-mail: [email protected] www.agrisovgaz.ru
This joint company was established in 1990 by the leaders of PJSC «Gazprom» and a wellknown Dutch company. It was the first who started to produce aluminium and steel structures for the greenhouses in Russia.
4 Company «TATPROF» 423802, Republic of Tatarstan, Naberezhnye Chelny, Profilnaya str., 53 Теl.: +7 (8552) 77-85-80 [email protected] www.tatprof.ru
The company produces different aluminium structures and was the main supplier for the construction sites for the World University Games in Kazan in 2013, for the Olympic Games in Sochi in 2014 and for the FIFA Confederations CUP in 2018.
Market volume of metal structures for industrial greenhouses
A boom in Russian metal structures was noted about 5 years ago, when Russian plants began to produce them. But consumers suppose the quality of Russian designs is lower than imported ones. The plants operate on the basis of foreign drawings/schemes.
75 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Nowadays, experts estimate the share of Russian products at approximately 30%, but in the future this share will probably grow.
Experts note that companies from the Netherlands began to update their systems / schemes, so a very large number of copies of their older schemes appeared on the market. So, for example, Chinese metal structures according to Western schemes appeared on the Russian market. Chinese products are cheap but have low quality, experts say.
The average price of 1 m2 of structures for a greenhouse complex with an area of more than 12 hectare when ordering in The Netherlands is around 19 EUR, for a greenhouse of 3 - 5 hectare 21 - 22 EUR/m2. Taking into account, customs clearance, the price rises to 32 - 34 EUR per m2.
Russian producers set the price of their products on the principle of «import price minus 10%».
Ventilation system:
For the mechanical part (traction, shafts, fasteners to structures, etc.) - the leading producers of The Netherlands are represented on the Russian market.
CONSTRUCTION COMPANIES
In this section, we consider the range of works that is associated with the construction of the greenhouse complex and the organization of the adjacent territory:
✓ Assembly of greenhouse structures; ✓ Construction of foundation (piles); ✓ Assembly of metal structures of the greenhouse; ✓ Greenhouse glazing; ✓ Construction of the accessory, administration and amenity buildings; ✓ Road construction, etc.
These kinds of works can be carried out by Russian construction companies, for example:
✓ Ltd «TeplitsSpecService» ✓ Ltd «RIKON» - Теl.: +7 (911) 264-02-97
The foundation of greenhouses is made mainly from piles. Previously, a significant part of the piles was imported, now these piles are mainly Russian products. In principle, any pile producers can make piles and form the foundation for a greenhouse complex, only his staff should be specialists who know the specifics of the production and installation of piles specifically for greenhouses. A company that produces and installs piles in Russia is “GlavFundament”.
«GlavFundament» Branch in Moscow: Bagrationovsky pr-d, d. 7, of. 321 [email protected]
76 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Теl.: +7 (800) 700 62 82 ext. 2 31 offices and 34 dealers
GLASS
Russian-produced glass is used in the greenhouse projects. Glass from some Chinese producers is used in the market as well.
Some years ago, imported glass was used. Now virtually any glass plant can offer strengthened glass for the greenhouses.
There are two types of glass that can be used for greenhouses: ✓ strengthened glass – for roof – has a high strength to protect from hails and wind force; ✓ raw glass is weaker, dividing walls and walls.
Strengthened glass is 20 times more expensive than raw glass – about 6,8 - 8,1 EUR per m2 against 4 EUR per m2. Glass with 4 mm is used mainly and about 10 - 11 thousand m2 of glass are necessary per 1 hectare of greenhouse.
Diffuse glass is developed for the greenhouses, but it is much more expensive than raw glass. This type of glass is hardly used in Russia and is used in limited quantities in Europe (about 10% of greenhouses).
Some of the large Russian producers of raw glass are listed below: ✓ JSC «Salavatsteklo» www.salstek.ru and JSC «Saratovstroysteklo» are included in one holding, www.саратовстройстекло.рф; ✓ «AGC» www.agc-glass.eu; ✓ «Guardian Glass» https://www.guardianglass.com/ru.
All these producers can be suppliers of glass for greenhouses.
The company Ltd «MIR STEKLA» is actively working with greenhouses in Russia. It buys raw glass from the producers, tempers and cuts glass and supplies glass for greenhouses.
Office: Penza, Gagarin str., 21 Теl.: +7 (8412) 20-25-10, 20-27-89, +7 (800) 250-47-89 E-mail: [email protected] www.mir-stekla.ru
It is the largest company in Russia for strengthened glass supply for the greenhouses with the volume of supply more than 1.000.000 m2 per year. The company buys glass from the Russian glass producer JSC «Saratovstroysteklo», www.саратовстройстекло.рф, tempers the glass and sells the glass for the greenhouse construction.
Now the company has supplied glass for more than 370 hectares of greenhouses.
77 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Another active market player is the glass plant «SIMVOL» (Ltd «EXPO GLASS») www.firmasimvol.ru. This producer is not large but over the last few years it supplies glass for 60 - 70% to greenhouses. It produces raw and strengthened glass.
There are some more market players in Russia dealing with glass for greenhouses, like:
✓ JSC TRADE HOUSE «RGB» - exclusive representative of OJSC «Gomelsteklo» in Russia
Main office: Moscow region, Shchyolkovo, Zavodskaya str., 16 Теl.: +7 (495) 780-72-03, Теl.: +7 (916) 317-71-40 E-mail: [email protected] Branches in Bryansk, Voronezh and Saint-Petersburg
OJSC «Gomelsteklo» 246030, Republic of Belarus, Gomel, Mikhail Lomonosov str., 25 E-mail: [email protected] Теl.: +375 (232) 97-14-87 Теl.: +375 (232) 97-12-00 E-mail: [email protected] www.gomelglass.by
It produces glass for different purposes, including greenhouses.
✓ Ltd «AGROMAR» Main office: 390037, Ryazan, Bogoliubov str., 109 Теl.: +7 (4912) 51-20-27, +7 (910) 637-80-40 E-mail: [email protected], [email protected] Representative office: Moscow, Marksistskaya str., 34, building 10 Теl.: +7 (800) 511-89-75 www.aglass.su
It supplies glass for greenhouses of standard size or cut from the large Russian glass producers.
An innovative trend for the Russian market is a film “F-CLEAN” – the replacement for glass. The film improves the efficiency of fruit, vegetable and plant production in the greenhouses. In comparison with glass, polyethylene and polycarbonate, the film “F-CLEAN” is better transparent for sun and ultraviolent light, which contributes to get products with a higher quality.
The other positive points on the application of film: ✓ the film stays cleaner despite influence of sun, rain and snow of many years; ✓ the lifetime cycle of the film is about 30 years, which is similar to the lifetime cycle of metal structures of the greenhouses; ✓ the film is light, but strong. The film requires only minimum construction support; ✓ non-flammable.
The Japan company AGC www.agcce.com is a producer of this type of film.
78 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
AGC Chemicals RUS 121596 Moscow - Gorbunova Street 2 Grand Setun Plaza, Building 204, BC - 5th Floor, Block B, Office B 504 Tel: +7 495 411 65 66 So far known, there oare no greenhouse projects with this film in Russia yet. This might be explained by the expensiveness of the film (glass is cheaper and the supplier selection of it is wider). There are not so many of such projects with this film even in the world. The suppliers of the film for the plastic film greenhouses are, for example, French company «Richel» www.richel-group.ru or Russian company «Impotek» www.impotek.ru (the turn-key plastic greenhouses).
Table 23. Main market players in the subsegments «Greenhouse Construction» in Russia Subsegments Russian Foreign + ✓ Several wellknown professional ✓ Research and Production greenhouse companies from The Greenhouse turnkey company FITO Netherlands projects ✓ Ltd «TeplitsSpetsServis» ✓ «Rufera Tecnoagro» (Spain), «Deforche Construct» (Belgium), «AgroItalServis» (Italy), АIК «Netafim» (Israel) - Foundations + Piles a little + + ✓ «Kurskpromteplica» ✓ Several wellknown professional steel and aluminum ✓ «TATPROF», greenhouse companies from The structures ✓ «Lipeckij Zavod Teplichnyh Netherlands Konstrukcij»,
✓ «AGRISOVGAZ» + ✓ «MIR STEKLA» glass ✓ «EXPO GLASS» - ✓ Trade house «RGB» ✓ «Agromart»
79 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.4 HEATING & POWER EQUIPMENT
COMBINED HEATING & POWER SYSTEMS
The greenhouse production is rated as the most energy demanding sector. According to the data of the company «AB Energy RUS», the expenditures for power supply is the main expenditure item in the Russian greenhouse sector. They can reach 40 - 60% of the total expenditures.
The variants of the electric power supply for a greenhouse in Russia are:
I variant: connection to the local electric supply network; II variant: the own energy centre.
The cogeneration units are often installed in the own energy centre. They allow generating and delivering to a greenhouse: ✓ electric power – is mainly used for assimilation lighting; ✓ heat – hot water is fed the heating system of a greenhouse;
✓ carbon dioxide (СО2) – is used for plant ‘nutrition’ to increase the yield.
The effectiveness of the cogeneration units in the greenhouse complexes has been proved by the practical application all over the world and in Russian Federation if possible to sell electric power to the network (https://www.agroinvestor.ru/technologies/article/26539-teplichnaya-evolyutsiya/).
From 2017 it became possible to connect the network of PJSC «Federal Grid Company of Unified Energy System», which allow getting lower tariff rate for electricity. But the investment is equal to the investment for the cogeneration units. For connection to the local electric supply network, an enterprise gets electricity, and installs the boilers to get heat and carbon dioxide.
Heating and power equipment in the Russian greenhouses is mainly imported. The reason: there is hardly any own production of equipment with capacity requirements in Russia.
In general, heating equipment, boilers, СО2 blowing devices and power equipment, are supplied by Dutch and other foreign companies (Germany Austria and USA) – which menas the suppliers of the turn-key greenhouses.
Among the foreign producers of power equipment, the two leaders on the Russian market are:
«GE Jenbacher» www.rus.gepower.com, Austria. «Caterpillar Energy Solutions» GmbH www.caterpillar.com, USA, is on the second place.
The other companies occupy significantly less shares of the market, for example, MTU Friedrichshafen GmbH (included into Rolls Royce Power System GmbH www.rrpowersystems.com, Germany.
Besides these foreign companies, there is a wellknown and professional company from The Netherlands that is selling a total integrated greenhouse cogeneration solution with the highest quality standards.
80 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The large Russian companies — suppliers of power equipment are:
1 JSC «VAPOR» - the official distributor of gas engines GE JENBACHER Теl.: +7 (812) 207-10-37 [email protected]
Supplying, assembling and service of equipment in Russia.
Regional office of Jenbacher in Moscow 123317, Moscow, Presnenskaya str., 10А Теl.: +7 (495) 933-01-87 [email protected] www.rus.gepower.com
The «Energy Technology Centre» was opened in Kaluga in 2011. This centre is specialized in repair of gas engines Jenbacher.
2 «Electrosystems» and Group of companies «MKS» are the large suppliers of «Caterpillar».
«Electrosystems» 197342, Saint-Petersburg, Torzhkovskaya str., 5, office 209 Тел.: +7 (812) 336-33-01, 336-33-04 Эл. почта: [email protected] www.electrosystems.ru
Group of companies «MKS» 454091, Chelyabinsk, Kirova str., 159, office 1610, Business center «Chelyabinsk» Теl.: +7 (351) 222-06-36 Email: [email protected] www.mks-group.ru
3 Group of companies «TES DKM» The official representative of the concern Rolls Royce Power System GmbH in Russia and Belarus. Group of companies «TES DKM» deliver the cogeneration units on a turnkey basis «MTU ON-SITE ENERGY» GmbH (is included into the engineering concern Rolls-Royce Power Systems Company).
Ltd «Mejregional’naya Enrgeticheskaya kompaniya» (IEC Ltd.) is included into Group of companies «TES DKM» Теl.: +7 (931) 372-10-89 Saint-Petersburg [email protected] www.iec-energy.ru, www.iec-energy.by
The energy sources of the Rolls Royce type are in general too large in capacity for greenhouses. The energy sources Rolls Royce were bought only once for some greenhouse complexes in Kaluga region.
81 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The components are supplied with equipment (imported). Russian components are used rarely. Usually the equipment assembly is carried out by the company-integrator for whole project.
There are some Russian companies which are specialized in the projects for power supply. For example, the company «ROLT group» is implementing the projects for power supply and management of energy sources.
ROLT group consists of production, engineering and service enterprises. The enterprise helps provide the implementation of the full cycle of the greenhouse project – design engineering, production of a device, launching and service support. www.roltpower.ru Saint-Petersburg Теl.: +7 (800) 775-06-95 E-mail: [email protected]
The market capacity of power equipment in value and volume terms
On average 1 hectare of greenhouses with additional lighting requires 1,5 - 2,2 Mwatt and 1 Mwatt taking into account design, construction and installation works, the start-up costs are about 900 EUR.
On average about 200 hectares of greenhouses are launched per year. About 40% of them have their own energy centre, others are connected to a power supply system.
Table 24. Market capacity of power equipment for the commercial greenhouses Average demand Market capacity Market capacity in volume on average 1 ha. of greenhouses with 120 - 176 Mwatt terms, Mwatt per year addional lighting requires 1,5 - 2,2 Mwatt Market capacity in value 1 Mwatt costs about 900 EUR 108 - 160 mln. EUR terms, mln. EUR
The main suppliers of heating equipment (boilers and burners) are European companies, mainly from The Netherlands. One of the most wellknown professional Dutch boiler producers has more than 50 years’ experience of design and production of boilers for the greenhouses.
Another foreign supplier of boilers is «Viessmann» www.viessmann.ru, and foreign supplier of burners is «Zantingh» www.zantingh.com.
Furthermore, the German company «Bosch Thermotechnik GmbH» with a representative office in Russia of «Bosch Thermotechnics» LLC www.bosch-climate.ru offers a comprehensive solution, including boilers of Russian production and GPU.
CO2 ENRICHMENT, BOILERS FOR HEATING, WATER BASINS
The main issue that needs to be addressed in the CO2 enrichment sub-sector is how to get CO2.
82 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
There are 2 ways to produce CO2 for greenhouses:
✓ production of СО2 from boilers in a boiler room;
✓ СО2 production due to hot-water boilers and gas-piston engines of the energy center.
Those producers that supply energy or boiler equipment supply systems for the selection and capture of CO2 as well. Equipment for the distribution of CO2 is relatively less expensive, its share in total costs is negligible.
In addition to foreign ones, Russian companies also offer CO2 feeding systems, for example:
Ltd «KOROLEV AGRO» Moscow region, Schelkovo, Khotovskaya st., 34, bld. 2 Tel.: +7 (495) 504-15-40 E-mail: [email protected] www.korolevagro.ru
Supplier of technological equipment for greenhouses.
ELECTRONIC SYSTEMS
Electronic systems are supplied complete with equipment.
Table 25. Main market players in the subsegments «Heating & Power Equipment» in Russia Subsegments Russian producers Foreign producers + ✓ GE Jenbacher, Austria, - Power systems ✓ Caterpillar, USA Assembly only «ROLT group» ✓ МТU (Rolls Royce Power System GmbH), Germany + Heating systems - ✓ Several wellknown professional companies from The Netherlands CO2 enrichment, + + boilers for heating, The same as for power systems and Ltd «KOROLEV AGRO» Water basins heating systems + Electronic systems (complete with equipment)
83 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.5 CLIMATE CONTROL AND (LED) LIGHTING
VENTILATION
The main suppliers of equipment for the recirculation system are companies from The Netherlands and Germany.
All fans are assembled on the basis of the products of a wellknown and professional Dutch company, which occupies around 70% of the Russian market. The large market share is also due to the fact that these fans are supplied under the brands by other Dutch greenhouse equipment suppliers.
Also on the market appeared recirculating fans of German production «ZIEHL-ABEGG» www.ziehl- abegg.com.
In case investors in Russia wants to purchase reliable high-quality equipment (fans), then they turn to the Dutch and Germans companies, a set of equipment in this case costs about 12 thousand EUR. If the aim is to save money, then also Chinese products can be bought on the Russian market - the cost of Chinese equipment is about 5 thousand EUR. But the reliability and durability of such fans is in question.
Gearmotors, gear racks and other ventilation equipment is supplied by a number of wellknown professional companies from The Netherlands as well. For the past 2-3 three years, some of these companies has been occupying an increasingly large part of the market due to increased product quality.
According to market players, Russian producers are trying to make fans, but the engines are of poor quality. Among Russian producers of fans for agriculture, including greenhouses, one can name «Agrovent-M» LLC www.agrovent.ru. The Russian assembly is again based on motors and Multifan fans from The Netherlands.
COATINGS
There are 2 types of coverage:
✓ whitening roofing greenhouses to reflect sunlight applied at greenhouse complexes by decision of agronomists
✓ painting of steel structures of the greenhouse after galvanizing used to increase the illumination of the greenhouse. The option is optional, since it does not have a direct effect on yield, especially in Russian conditions.
COOLING AND SCREENING SYSTEMS
The climatic screens are one of the important parts of a modern greenhouse and has proofed its effectiveness. With the help of the screens lighting, temperature, moisture can be controlled and heat can be saved.
84 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 A screen is made from polyester fibre with the strips from aluminium foil.
The screens can be horizontal (upper) and vertical (side).
The horizontal screens (location at the top of the greenhouse) are used widely in Russia. The vertical screens (closing the side glass of the greenhouse) are used more rarely.
Picture 40. Horizontal and vertical screens Horizontal screens Vertical screens
The screens of foreign companies are used in Russia. The leaders in this market are Swedish «LUDVIG SVENSSON» and Belgian «PHORMIUM».
«LUDVIG SVENSSON» is the undisputed leader in the production of climate screens for horizontal curtains, with a share of over 90%.
«PHORMIUM» - products for vertical shading and covering material.
Screens made in China are also available in very limited quantities on the Russian market.
1 The company «SmartGreenTech» is the official representative of the company «LUDVIG SVENSSON» in Russia.
The main office and production of the company is located in Kinna, Sweden. The additional treatment of materials is carried out in the Netherlands. www.ludvigsvensson.com
The company produce fibre for the greenhouse screens since the 1970s.
2 «PHORMIUM» Belgium Sales manager Vitalina Tsourkan Теl.: +32-489-775-553 Email: [email protected] www.phormium.com
85 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
It offers the screens and other equipment for horticulture, landscaping, mushroom farming and viticulture. System of artificial fog
Different companies from the Netherlands work with the suppliers of turnkey greenhouses.
Turkey «Fogsis Iklimlendirme Makina» www.fogsis.com
Italy «Vifra» www.vifraitaly.com
30 - 60 thousand EUR per 1 hectare + water treatment
(LED) LIGHTING SYSTEMS
Now the main light source for addional lighting is the sodium high-pressure lamps HPS (90% of all lighting). The innovations - LED-lighting systems – use very rarely, but the experts suppose LED- lighting systems have a potential.
According to the data from Iurii Rabinovich, the representative of LLC STK «STROYTEH», 600 W sodium lamps are traditionally used in Russia, while for the high greenhouses (more than 5,5 m) 1.000 W lamps are used. According to him, the light systems based on sodium lamps are the most profitable for the commercial greenhouses. They are repaid during 3-5 years (https://www.agroinvestor.ru/technologies/article/26539- teplichnaya-evolyutsiya/).
Table 26. Advantages and disadvantages of lightning by HPS and LED
Types of Working lifetime Advantages Disadvantages lamps/fixture • the limited red-orange spectrum leads to the excessive extension of plants during the early stages of plant development • the lamps are unsafe: if the lamp is Emit red light spectrum which broken, air will be polluted by the no less than 16.000 is useful for plants during fruit HPS poisonous vapors of metals hours formation and flowering stages • the excessive heating of an active lamp. But if the lamps are located high above the plants and supplementary lighting is carried out in winter time, this disadvantage develops into advantage and heats greenhouse air • lower consumption of electricity (up to 45% saving on energy costs), • it is possible to set the • higher invetments comparing with Up to 50.000 hours best spectrum for plant HPS, LED (actually 25+ thous. growing during the different • they require special agronomic hours) stages of its development, support • possibility to operate from low voltage power supply. Under the conditions of 86 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 increased humidity in a greenhouse this variant of lighting is the safest • Longer use than HPS (repay not less than 8-10 years) Source: https://gardenaddict.ru/instrument/lampy-v-teplice.html https://www.agroinvestor.ru/technologies/article/26539-teplichnaya-evolyutsiya/
The world leader in LED-lighting is a wellknown professional enetrprise from The Netherlands, which puts considerable efforts in fast innovation and invests a lot in technology and knowledge development of LED. For example, together with the official partner – Russian company «SVETOGOR» www.stk- stroytech.ru the hybrid solution was developed using combination of sodium lamps and LED.
Volume of the Russian market of HPS lamps for industrial greenhouses
The number of HPS lamps per 1 hectare depends on the power of HPS lamps, crop, type of greenhouse, etc. So, the number of HPS lamps per 1 hectare can vary from 1.100 pieces of 1.000 W lamps to 2.000 pieces of 600 W. The price of 1 HPS lamp can be on average from 25 - 27 EUR for a Russian HPS lamp of 600W to 40 - 45 EUR for an imported 1.000 Watts. Since a large share of greenhouses uses 600 W HPS lamps, experts assume for calculations that on average 1 hectare of greenhouses requires about 1.500 HPS lamps, price for 1 piece is about 27 EUR.
Table 27. The calculation of the market volume of HPS lamps for industrial greenhouses in Russia Indicators Value 1.020 ha Greenhouse area, ha. (about 200 ha. are launched annually + replacement 1 time per 3 years, 2,45 thous. ha. /3 45) HPS lamps per 1 ha., pieces 1.500 Market capacity of HPS lamps, thous. 1.530 lamps Price of 1 HPS lamp, EUR about 27 Market capacity of HPS lamps, mln. EUR 41
Russian companies produce only 600 W HPS lamp. 1.000 W sodium lamps are 100% imported.
According to experts, old greenhouse complexes use 600W HPS lamps. New complexes built after 2014-2015 use 1.000W HPS lamps. The area of old greenhouses is about 80% of the total area of greenhouses. Given that 1 hectare of greenhouse needs more 600W of sidium lamps than 1.000W sidium lamps, the share of Russian HPS lamps exceeds 80% of the market. Import share is estimated at not more than 15%.
In value terms, the share of imports is higher because the price of HPS lamps is higher.
45 According to producers and consumers, Russian 600W HPS lamps should be replaced once every 3 years, foreign 1.000 W HPS lamps - once every 5-6 years. Since a large proportion of greenhouses use 600 W HPS lamps, for the calculation we accept a replacement once every 3 years. 87 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Table 28. Market capacity of HPS lamps for commercial greenhouses Russian production Imports Total Market capacity, thous. HPS lamps 1.300 230 1.530 Share in volume terms, 85% 15% 100% % of market capacity Market capacity of HPS lamps, mln. 33 8 41 EUR Share in value terms, 80% 20% 100% % of market capacity
There are 3 large players in the market of sodium lamps: ✓ Russian group of companies «Reflux» ✓ Wellknown Netherlands enterprise ✓ German «OSRAM AG»
Group of companies «REFLUX» (Ltd «Reflux», Moscow and Ltd «Reflux-S», Saransk) 109428, Moscow, Ryazanskij avenue, 30/15 Теl.: +7 (495) 232-42-93, 617-11-70 Email: [email protected], [email protected] www.reflux.ru
The largest Russian producer of sodium lamps.
It produces: ✓ Sodium lamps Reflux for general and horticultural lighting; ✓ lighting systems.
According to experts, the company does not produce the lamps. It buys the components (glass bottles, caps etc.), including from China, make a lamp and puts its logo.
The lamps Reflux are used in the greenhouses «Novosibirskij» (Group of companies «Gorkunov») www.cgorkunov.com, «Churilovo» www.churilovo-agro.ru, «Majskij» www.maiski.ru and others.
The market players point out that both Russian and imported lamps are produced mainly from Chinese components.
Fixtures
Russian HPS lamps are used in conjunction with Russian fixtures (luminares). The use of imported HPS lamps does not necessarily require imported HPS fixtures. Since the share of imported HPS lamps is low, experts assume that almost the entire market for fixtures is Russian products.
88 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ Ltd NPP «NFL» 394019, Voronezh, Krasnodonskaya str., 1Б, office 1 Теl.: +7 (473) 200-04-35, 221-51-90, 276-27-87 E-mail: [email protected] www.nppnfl.ru
The company offers a wide range of HPS and LED fixtures.
In Russia «NFL» is a leader in HPS and LED fixtures for greenhouses. Fixtures by «NFL» are used in more than 200 greenhouses in Russia, near and far abroad.
The company has the branch in Western Europe – «NFL-Lighting» (Prague, Czech Republic).
The LED fixtures by «NFL» are used in the greenhouses of «Churilovo» www.churilovo-agro.ru, «Teplicy Belogorya» www.tepbel.ru, «Vyborgec» www.vyborgec.ru, «Rose Hill» www.rosehill.ru, etc.
«NFL» is a member of Russian association «Greenhouses of Russia».
✓ Company LLC STK «STROYTEH» (HPS fixtures «SVETOGOR» trade mark) Moscow, Luzhnetskaya nab., D. 2/4 Tel.: +7 (495) 788-80-23 [email protected] stk-stroytech.ru The assembling of the fixtures is Russian, and the producers of the parts are large European companies, for example, «Almeco» (Italy, aluminum) and «Vossloh Schwabe» cartridges (Germany).
Among foreign producers and suppliers of fixtures in Russia are:
- Ltd «DGK Agro» is the official distributor of a wellknown professional company from The Netherlands.
The company offers a full range of work on the light system, from design to installation in the greenhouse complex.
- Another wellknown Dutch professional company, who provides lighting solutions for greenhouses worldwide, including in Russia.
Аccording to previous calculations, greenhouses need HPS fixtures as much as HPS lamps – 1.500 thousand pieces. Scheduled replacement 1 time in 6 years. The average cost of 1 fixture (without HPS lamp) for the most commonly used 600 W HPS lamp is 74 - 77 EUR.
89 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 29. Calculation of market volume of HPS fixtures (without HPS lamp) for industrial greenhouses in Russia Indicators Value 608 ha. Greenhouse area, ha. (about 200 ha. are launched annually + replacement 1 time per 6 years, 2,45 thousand ha./6) HPS fixtures per 1 ha., pieces 1.500 Market capacity of HPS fixtures, thousand 912 pieces Price of 1 HPS fixture, EUR 75 Market capacity of HPS fixtures, mln. EUR 68
Over the last few years, Chinese HPS lamps and fixtures produced by «Megafoton» have started to appear on the Russian market.
«Reflux» produces mainly 600W HPS lamps. «Signify» and «OSRAM» produce mainly 1.000 W HPS lamps. Some years ago, 1.000W HPS lamps were relatively quite expensive compared to the most applied 600W HPS lamps, but now the price has decreased. The experts expect that due to a decrease in price the company «OSRAM» will increase its share on the Russian market. According to experts, future belongs to LED, because usage of LED compared to sodium lamps allows saving energy and is reducing operating costs.
The structure of the market will change significantly within 5 - 7 years. Now an experiment with LED lighting is carried out (in the greenhouse «AgroInvest» with LED lamps of a wellknown professional Dutch enterprise).
As noted by Aleksei Kurenin, the regional manager of the company Grodan (the Netherlands), now the hybrid technologies are ready to be applied: using two types together, for example, for supplementary lighting of tomatoes HPS lamps are located above, and LED — inside the growth zone of plants.
The experts point out that when choosing LED-lighting for a greenhouse it is necessary to use slightly different ventilation and heating systems than for traditional sodium lamps. It is easier to build a new greenhouse with LED-lighting than to re-equip the traditional one with sodium lamps.
100% grow light with the use of LED-lighting is still in the experimental stage, since the use of LED leads to an adjustment of the greenhouse system as a whole. The use of LED horticultural lighting saves operational costs compared to the use of HPS fixtures, but leads to an increase in the project budget.
For salad greenhouses, LEDs increase productivity and product quality, the effect of using LEDs has been proven in practice.
90 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 30. The main players in the «Climate Control and (LED) Lighting Systems» subsegments in the Russian market Subsegments Russian companies Foreign companies + Ventilation Several wellknown and professional companies from The Netherlands + Cooling and Screening - ✓ «LUDVIG SVENSSON», Sweden Systems None ✓ «PHORMIUM», Belgium + + HPS fixtures and LED ✓ GC «Reflax», ✓ Several wellknown + professional fixtures ✓ Ltd NPP «NFL», companies from The Netherlands ✓ Ltd CTK «Stroytekh» ✓ OSRAM AG, Germany
We calculated market volume for HPS fixtures and LED fixtures only, not for total light systems which include fixtures, cables, switchboards, underground cables etc.
The investments for light systems are much higher than just for HPS fixtures and LED fixtures. For example, with HPS fixtures for 5 ha greenhouse, lighting equipment with installation materials can cost more than 1 mln. EUR. With hybrid system at the same greenhouse – 3 mln. EUR, 100% use of LED- lighting – up to 6 mln. EUR.
91 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.6 INPUT FOR CROP GROWING
SUBSTRATE
In modern greenhouse complexes hydroponic system is used, that is, growing plants without soil. Roots of plants receive mineral substances when placed in an artificial substrate. Seeds are germinated in the substrate, seedlings are grown, and then the plant grows in this way up to harvesting.
Growing methods without growing substrate, such as flowing hydroponics and aeroponics, are becoming increasingly common. These two methods are more suitable for growing green crops, when the duration of cultivation is relatively short.
For crops with a longer growing season (greenhouse vegetables, flowers) greenhouses apply the technology of growing on stone wool substrate (up to 70 - 75% of all greenhouses) or on coconut substrate.
Coconut substrate is more than 2 times more expensive than mineral wool substrate: ✓ the price of 1 mat of mineral wool - 1.1 EUR, ✓ the price of 1 mat of coconut substrate is 2.8 EUR.
The substrate was first used for hydroponic installations in 1969 in Denmark. Since then, technologies have been modernized, and today the substrate is offered in the form of corks, cubes, cassettes, blocks and mats.
Picture 41. An example of a substrate for different stages of growing plants in a greenhouse: cubes and mats of stone wool substrate
According to market players; opinion about 70% of consumed substrate is stone wool substrate. The share of imports of wool substrate is - 36%, the share of the Russian produced - 64%.
The share of coconut substrate is not more than 35% of the market volume and it is 100% imported.
92 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The need for wool substrate varies by crop. So substrate replacement for tomatoes should be done once a year, for cucumbers once every three to four months, roses are grown on one substrate for five to six years (https://agrosektor.kz/agrotema-online/teplichnyj-biznes-razvitie -prodolzhaetsya.html).
On average, about 5 - 6 thousand mats are needed per 1 hectare greenhouse.
For the cultivation of salad and green crops Russian peat is used as a substrate (not taken into account in the calculations).
Table 31. Volume of the Russian substrate market Russian production minus Parameters Import Total export Substrate market volume, thous tons 7 8,5 15,5 Market structure in volume terms, % 45% 55% 100% Substrate market size, mln. EUR 6 11,1 17,1 Market structure in value terms, % 35% 65% 100% Reference source: Federal State Statistics Service of the Russian Federation, Federal Customs Service of the Russian Federation, customs code 6806100001
According to customs statistics, the main supplier of mineral wool to Russia is Poland, which supplies: 88% in value terms, 92% in volume terms, which means 3.6 thousand tons, worth 4.7 mln. EUR.
The Netherlands is the second important supplier: 8% in value terms, 4% in volume terms, or 143 tons, worth 441 thousand EUR.
But in essence, these supplies belong to the same «ROCKWOOL Group» company, since it has plants for the production of substrate in the Netherlands and Poland.
Table 32. Dynamics of import of substrate to Russia, thousand tons 2013 2014 2015 2016 2017 2018 Import of substrate, 3.1 3.7 3.2 3.7 4.7 3.9 thousand tons Reference source: Federal Customs Service of the Russian Federation, code CC FEA 6806100001
At the end of 2018, the volumes of import of the «GRODAN» substrate to Russia decreased, since in October 2018 «ROCKWOOL» launched a plant for the production of substrates in Russia. The plant produces about 4 mln. mats (about 3.6 thousand tons). And only those substrate positions that are not produced in Russia are now imported.
Table 33. Dynamics of import of substrate into Russia by half-year period for 2016-2019, thousand tons
1st half 2nd half 1st half 2nd half 1st half of 2nd half of 1st half of of 2016 of 2016 of 2017 of 2017 2018 2018 2019 Import of 0,8 2,9 1,5 3,2 1,8 2,1 0,7 substrate Full year 3,7 4,7 3,9 in total
93 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Picture 42. The structure of import of substrate into Russia in 2018, in value terms
The main buyers of the substrate from Russia are: Kazakhstan, - 52%, and Belarus,- 24%. According to the information from a player in the industry, the entire volume of imported substrate is used in Russia. Only Russian-made substrate is exported.
Picture 43. The structure of the export of substrate from Russia in 2018, in value terms
The main supplier of the substrate (mineral wool) for growing plants in Russian greenhouses is the company «ROCKWOOL Group», the substrate of «GRODAN» brand.
1 «GRODAN» (part of the «ROCKWOOL Group») Moscow office: Zemlyanoy Val, 9, Moscow, 105064 Tel.: +7 (495) 995-77-55 www.grodan.com, www.grodan.ru
94 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The ROCKWOOL Group is a world leader in the production of mineral (stone) wool for various industries. Agricultural needs are supplied by GRODAN, a separate division of the Group. For the needs of greenhouses, GRODAN offers a wide range of substrates (stone wool substrates). The head office of the ROCKWOOL Group is located in the Netherlands.
GRODAN is one of the few companies that provides services for the processing of the used mineral mats into raw material for production of plastic granules, compost, etc.
In October 2018, ROCKWOOL launched a plant for the production of «Grodan» substrates in the Republic of Tatarstan in Russia. Over 6.8 mln. EUR were invested in the project. This is the 4th Grodan plant in the world and the first one in Russia. The launch of this plant will allow solving the problems of import substitution, since at present the main part of the substrate is import. 46
According to a company representative, stone wool substrates produced in Russia has the same high quality as imported. And its price is lower since transport costs and customs costs have decreased (https://agrosektor.kz/agrotema-online/teplichnyj-biznes-razvitie-prodolzhaetsya.html).
The second largest player in the substrate market is Corporation «TechnoNIKOL» www.tn.ru. They have 2 plants for the production of substrates: one in Belgorod, producing «Izovol» brand mainly, and another in Ryazan, producing «Speland» brand.
The main distributor of these mineral wool substrates is «AgroSoil Trade» LLC.
2 «AgroSoil Trade» LLC Tel.: +7 (495) 481-22-32 E-mail: [email protected] Address: Moscow, Yaroslavskoye Shosse, 146, Building 2, Hanoi-Moscow multifunctional center E-mail: [email protected] www.agrosoiltrade.ru
It has been operating since 2014, and supplies products to the largest greenhouse enterprises in Russia.
«AgroSoil Trade» is also the major supplier of coconut substrate - «Cocogreen», which is produced at their own plant on the island of Sri Lanka. Product export is over 10 thousand tons per year. The plant products are delivered to all corners of the world, including Asia, Europe, the USA and Russia.
In addition to the substrate, the company offers a wide range of products for greenhouses: ✓ drip irrigation; ✓ twine; ✓ insect traps and more; ✓ agronomic support.
Most of the old greenhouses work on Russian substrates. For example, «Yuzhny» Agricultural Combine, «Alekseevsky» Combine and more than 100 other combines use «Speland» substate (as of July 2018, http://greentalk.ru/topic/11971/).
46 https://ria.ru/20181002/1529813195.html 95 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 New greenhouse complexes prefer to use imported substrate.
There is also the Russian company «GrowTech» LLC, offering Belarussian wool substrate «Belagro» and French coconut substrate «BIO-GROW».
3 «GrowTech» LLC 109390, Moscow, Artyukhin St., 6-B, of. 505 Tel.: +7 (499) 179-02-66 www.growtech.pro
«GrowTech» LLC offers:
✓ mineral wool of «Belagro» company www.belagro.ws (Belarus) Belagro substrate has been produced since 2006. It is used by many factories in Eastern Europe and Central Asia.
In Russia, the substrate is used by:
Greenhouse «Zelyonaya linia», Krasnodar Territory (80 ha. of cucumber); Greenhouse «Agapovsky», Chelyabinsk region (2 ha. of tomato); «Novgorodskiye teplitsy», Novgorod region (5 ha. of cucumber); Greenhouse «Agrokultura-Group» (Moscow region).
Clients are offered agronomic support in the process of using the substrate.
✓ coconut substrate «BIO-GROW» - from well-known producers of coconut substrate, France. It has been present on the Russian market for 10 years.
In 2016, 90% of Russian greenhouses are growing on coconut substrate using BIOGROW.
The company provides: ✓ technological support; ✓ seminars in Russia and in other European countries; ✓ consultations of French specialists.
The company has a greenhouse complex with an area of 85 ha. in the south of France, where tomato, cucumber, strawberry and kiwi are grown on coconut substrate.The substrate production is located in Sri Lanka and in India.
HYDROPONICS, DRIP IRRIGATION
This is a system of hoses and droppers of various diameters and sizes, non-specialized equipment. The choice of supplier depends on product specifications and price. There are many companies, but no one has the leading position. Mostly the suppliers are Russian or Chinese.
96 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
(ORGANIC) FERTILIZERS
The technology used in modern greenhouse complexes excludes contact with the soil and is based on the use of mineral nutrition elements as the part of a nutrient solution. Therefore, organic fertilizers are hardly used.
Fertilizers are used only in the southern regions and at the family farms in the film covered greenhouses, where plants grow on soil.
Thus, in this section we will discuss mineral fertilizers.
Currently, mineral fertilizers recommended for use in sheltered soil must comply with particularly strict requirements. Mineral fertilizers should be completely soluble, ballast-free, containing a complex of trace elements, preferably in chelated form.
The general structure and market trends are considered on the example of the aggregate Russian market of mineral fertilizers. Further on the fertilizer market volume will be calculated separately only for the production of greenhouse products.
The total capacity of the Russian fertilizer market in 2018 amounted to about 15.600 thousand tons.
Table 34. The volume of the Russian fertilizer market, thousand tons 2018 Production, thousand tons 49.350 Import, thousand tons 308 Export thousand tons 34.077 Market volume, thousand tons 15.581 Import share in volume terms,% of the market volume 2 Reference source: Federal State Statistics Service of the Russian Federation, Federal Customs Service of the Russian Federation, code CC FEA 31
Russian producers of mineral fertilizers are export-oriented - 69% of the country products are sent abroad and only 31% are used in the domestic market. The main importers of Russian fertilizers are Brazil, USA, the Ukraine and China.
The main countries exporting fertilizers to Russia are Belarus and Kazakhstan. Fertilizer exports from the Netherlands to Russia in 2018 amounted to 3.2 mln. EUR, or 3.1%. A year earlier - 2.8 mln. EUR or 2.8%.
In the structure of Russian fertilizer production, the main volume falls on nitrogen and potash. Mixed fertilizers and also some potash are imported.
The Russian fertilizer market is quite monopolized: the top ten producers account for about 67% of total revenue. Moreover, in recent years consolidation and integration of the Russian agrochemical companies into very large concerns (and having production facilities abroad) took place. Holdings like «Eurochem», www.eurochemgroup.com, «PhosAgro», www.phosagro.ru, and «Akron», www.acron.ru.
97 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 In the fertilizer sector for greenhouses the share of imported products is about 40%.
Fertilizers vary significantly in price: from 0.3 EUR per 1 kg of ammonium nitrate to over 8 EUR per iron chelate.
Cheaper fertilizers are used in a larger volume, so for calculating the size of the market the experts of this research will take an average price of 0.5 EUR per 1 kg.
Market players estimate the market volume of mineral fertilizers for greenhouses at about 10 mln. EUR.
Greenhouse vegetable producers work with foreign fertilizer producers mainly through regional dealers or official representatives.
Key market players on fertilizers are: ✓ foreign «Yara» and «Kemira», ✓ Russian «URALCHEM» and «Buisky khimicheskii zavod».
Foreign producers are:
1 «AgriTek» LLC www.agri-tek.ru Official dealer of the Norwegian company Yara International ASA since 2010. YARA has been producing mineral fertilizers for over 100 years.
109456, Moscow, Ryazansky Prospekt, 75, building. 4, floor 4, compartment IX, room. 3 Tel.: +7 (495) 128-16-45 E-mail: [email protected]
2 «Kemira Agro» CJSC Kemira Lux Moscow Region, Kotelniki, Yanichkin thoroughfare 2 Tel.: +7 (495) 550-64-78, 550-67-27 www.kemira.com
«Kemira Agro» is a subsidiary of the Finnish company Kemira GrowHow Oyj - one of the largest European producers of high-quality special complex mineral fertilizers. They produce fertilizers for plants for open and protected fields, preservatives of feed used in the preparation of silage, haylage, and for preservation of flattened grain for fodder.
3 «Haifa Chemicals» Ltd
4 Chrysal International Representative Office in Russia Tel.: +7 (495) 767 21 83 E-mail: [email protected]
Produces «Pokon» fertilizer for roses and has offices in 14 countries and manufacturing enterprises in 5 countries: Japan, Colombia, Ecuador, Kenya and The Netherlands.
98 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Some large Russian greenhouses uses Russian fertilizers for example «LipetskAgro» (http://www.fito- system.ru/Lipetsk-agro-Expert).
1 «URALCHEM» solar-agro.ru – the largest producer SOLAR is a line of water-soluble fertilizers specifically for protected ground
2 «Buisky khimicheskii zavod» JSC (Buisky Chemical Plant) Address: 157003, Kostroma region, Bui, Chapaev st., 1 Tel.: +7 (49435) 44-182, 44-197 E-mail: [email protected] www.bhz.ru
Produces brands like «Aquarin» and «Rastvorin».
Table 35. Main market players in the «Input for Crop Growing» subsegments in Russia Subsegments Russian producers Foreign producers + + ✓ «GRODAN» («ROCKWOOL ✓ «GRODAN» («ROCKWOOL Substrate Group») in Tatarstan Group»), The Netherlands ✓ «TechnoNIKOL» Corporation ✓ «Belagro», Belarus («Izovol» и «Speland») ✓ «BIO-GROW», France (coconut) Hydroponics, + + Drip Irrigation Russian Chinese + + Fertilizers ✓ «URALKHEM» ✓ Yara International ASA, Norway ✓ «Buisky khimicheskii zavod» ✓ «Kemira Agrо» Finland
99 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.7 GREENHOUSE MATERIAL
FLOOR COVERS AND MATS, ROPES, YARNS, CLIPS, CRATES, CONTAINERS
The sector is represented by many Russian, European companies offering various materials. Nevertheless, several well-known companies from The Netherlands can be distinguished.
Russian-made products are cheaper than imported, but of lower quality. As a competitive advantage, Russian producers offer prompt and free replacement of defective parts, which is impossible for foreign producers (due to longer distances and customs clearance procedures).
In the Greenhouse material segment there are both companies specializing in one or a few products and companies offering a wide range of equipment and materials. They are many and it is difficult to single out leaders. But there are a few that market players know and often turn to.
These are the companies of the so-called «one store shop» type. They are not producers, only traders.
The large foreign companies are:
1 «A number of large Netherlands wellknown professional companies» These Dutch companies offer a wide range of materials and equipment; like:
✓ A wide range of products for plant growing, crop care, crop protection and disinfection, packaging and design; ✓ Consumables - tools, fasteners, knives and pruners, clothes and shoes, fittings; ✓ Mechanical equipment - measuring instruments, equipment for spraying, collecting and processing crops, transportation means; ✓ Service ✓ Agronomic support; ✓ Turnkey construction of greenhouses; ✓ Staff training; ✓ Water emission; ✓ Water techniques; ✓ Test and measurement equipment; ✓ Climate computers; ✓ Climate control; ✓ Mechanical techniques; ✓ Crop protection techniques; ✓ Services, maintenance and inspections.
2 «Schetelig RUS» JSC - a representative office of the Finnish concern «Schetelig Oy» in the Russian Federation www.schetelig.com, www.schetelig.ru.
The main activity is the provision of turnkey services for the organization of greenhouse complexes. It also offers a wide range of services, equipment and materials: ✓ Services for the construction and reconstruction of greenhouses, design, etc.; ✓ Salad lines; ✓ Heating system;
100 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ Electrics and artificial lighting systems for plants; ✓ Horizontal and vertical curtain systems; ✓ Plant growing equipment; ✓ Harvest carts; ✓ Bumblebees; ✓ Biological plant protection; ✓ Substrates; ✓ Coils, hooks, clips for growing plants; ✓ Measuring instruments, etc.
3 Israel company «PASKAL» www.paskal-group.com Offers сlips, hooks, truss archers, cluster support, flower markers, twines.
4 «Precimet Company», Poland www.precimet.pl
Offers: ✓ Plant care and harvest trolleys, spray trolleys; ✓ Greenhouse sprayers; ✓ Fog generators; ✓ Fans; ✓ Supports for tomato stems, hooks, clips, etc.
From Russian companies, the following companies can be mentioned:
5 Ltd NPK «Rassadnyi servis» The company is part of Agroholding «Moskovskii» as a subsidiary and integrates several manufacturing companies.
Offers about 250 items, of which: ✓ Substrates for greenhouses and for open ground; ✓ Seedlings pots, pots, containers for flowers; ✓ Various plastic products for a full cycle of growing flowers, vegetables, shrubs and trees.
142784, Moscow, Troitsk, Sosnovaja street, industrial area Теl.: +7 (495) 640-47-48, (925) 589-76-96 Е-mail: [email protected]
Pots for salad and greens - only Russian.
101 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 It worth saying a few words about equipment for growing salad crops.
Finnish companies are leading in lettuces and herbs production. However, other companies are also present on the market:
✓ Green Automation Group Ltd Oy www.greenautomation.com, Finland — systems for growing lettuces and herbs; ✓ AgroForest Group, Finland — lettuces lines.
Green Automation Group Ltd Oy www.greenautomation.com designs and produces smart systems for growing lettuces and herbs using hydroponic NFT growing systems. The first system was designed for their own greenhouses in Finland over 30 years ago. The successful experience prompted the company to start exporting its technology first to Europe and later to Asia and North America. The systems are optimised for growing lettuces, Baby Leaf and herbs.
The equipment supplied by the company works on an area of over 30 hectares of greenhouses.
The company offers the whole range of related services from the early planning stage to harvesting.
Green Automation Group Ltd Oy Hermannin rantatie 22 00580 Helsinki Finland [email protected] Теl.: +358 10 5044344 www.greenautomation.com
Picture 44. Green Automation in Russia
Source: presentation by the «Green Automation» company at the Forum and Exhibition «Greenhouse Complexes Russia 2018»
102 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 TROLLEYS, PLATFORMS ETC.
The best known company supplying trolleys, platforms for plant care, harvesting and transportation of crops, collection and transportation of plant residues in greenhouse plants:
✓ Ltd «Walzmatic» 141401, Moscow Region, Khimki, Communalnui passage, 30 www.walzmatic.com Теl.: +7 (495) 748-51-20 E-mail: [email protected]
The Polish company «Walzmatic» was the first in Russia to start producing logistics equipment for industrial greenhouses, organizing production in 2013. Localization is more than 70%.
«Walzmatic» is the main supplier of trolleys in Russia.
The company considers its own design bureau like its main advantage. In close cooperation with greenhouse plants it allows company to supply equipment that meets greenhouse plants’ requirements as much as possible.
Greenhouse growers prefer to purchase Russian carts, as they are of high quality and have a lower price than from foreign producers.
Walzmatic products are used in many regions of Russia, as well as in some neighboring countries.
Picture 45. Geography of product supplies «Walzmatic»
https://www.walzmatic.com
103 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 From foreign producers it can be noted:
✓ «Bogaerts greenhouse logistics», Belgium www.bogaertsgl.com
✓ «A wellknown professional company from The Netherlands»
Table 36. Main market players in the subsegments of «Greenhouse Materials» in of Russia Subsegments Russian producers Foreign producers Floor Covers and Mats, + + Ropes, Yarns, Clips, Crates, Russian European, Chinese Containers + ✓ «Bogaerts greenhouse logistics», + Trolleys, Platforms Belgium ✓ Walzmatic ✓ «Wellknown professional company from The Netherlands»
104 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.8 AUTOMATIZATION AND CONTROL SYSTEMS
CONTROL CLIMATE, ENERGY, WATER AND DATA MANAGEMENT, (PROJECT) MANAGEMENT, LABOUR
Despite the fact that the Automation and Control Systems segment is not cost-intensive, accounting, on average, for 3 - 6% of investment costs, it is the quality of equipment, its dependability and personnel's skills that determine the working process of the entire greenhouse complex.
Every greenhouse complex is equipped with a climatic computer with target values for such variables as temperature, humidity, watering and lighting to ensure the optimal performance of the entire greenhouse complex.
The monitoring system controls the attainment of the target values of the variables. In the case of their divergence the monitoring system data are transferred to the climatic computer that automatically adjusts the values to the required level.
In general, the monitoring system is an add-on to the climatic computer that affords a more accurate assessment of the plants' condition and a prompter response to its change. Yet, not all greenhouse complexes choose to buy it.
Climatic computers
The only Russian producer of climatic computers is the Research and Production Company «PHITO». It offers packaged software solutions that provide for a simultaneous control of all the greenhouse processes: climate control, energy control, water and data management, labour control, etc. As to labour tracking system, it works together with a wellknown professional company from The Netherlands.
The company's share of the Russian market is about 20%. According to experts, «PHITO»'s systems are mostly installed in old greenhouse complexes. The company's advantage is a lower price of the equipment in comparison with foreign made alternatives, however the quality is also lower.
Overall, the Russian market is dominated by foreign companies and mainly from The Netherlands. These companies accounting for the remaining 80% of the market.
Monitoring systems
There are many companies, both Russain and foreign, producing monitoring systems. Out of the most well-known and high-quality ones, experts point out 2 companies, both from the Netherlands.
The price of the monitoring systems strongly depends on the greenhouse layout and amount to 15.000 EUR on average.
105 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Of the Russian companies that supply automation systems, one can mention the company:
NPO «Cascade» www.cascad-co2.ru. Republic of Mari El, Yoshkar-Ola Теl.: +7 (8362) 24-00-02, 63-20-00 [email protected]
Designs, producers, carries out installation and maintenance of automatic systems:
CO2 feeding complex; Drip irrigation process; Mortar nodes; Automated climate control system.
Table 37. Main market players in the «Automatization» subsegment on the Russian market Subsegments Russian producers Foreign producers Climate control
Energy + + Water and Data ✓ Research and Production ✓ Several wellknown professional Management Company «PHITO» companies from The Netherlands (Project) Management
Labour
106 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.9 CROP PROTECTION
INSECT TRAPS, INSECT NETTING
This type of equipment is not complex in terms of technology and there are many suppliers. Insect traps, insect netting are purchased by greenhouse vegetables producers mostly from the Russian trade houses that offer both Russian and foreign products.
✓ Ltd «AgroSoil Treid», Moscow www.agrosoiltrade.ru - offers a wide range of products for greenhouses, including traps.
✓ Belgian «Biobest Group NV» www.biobestgroup.com
BIOLOGICAL CONTROL AGENTS
Biological control agents are predatory insects that eat insect pests.
Overall, 27 biological control agents are registered in Russia. 17 out of them can be used in industrial greenhouses.
Currently, the entomophages segment is one the most promising segments of biopesticides. The market itself can be described as emerging since it was not until 2011 that the first considerable market volumes were demonstrated. At the same time, the entomophages market in Russia has shown a 20- fold growth in the last 5 years.
This market is almost completely dominated by foreign suppliers, their overall share exceeding 90% and amounting to 94% in 2013.
The main Russian producer of entomophages is the Federal State Budgetary Institution «Rosselhoscenter», its share in the production of 11 bln. species or 71%. 47 Thus, the volume of Russian production is estimated at 15 bln. species. Import in 2017 amounted to 348 bln. species of entomophages and bumblebees with a total value of 4.3 mln EUR.
Russian production of bumblebees is estimated at about 50 thousand families (about 8 mln. species).
Thus, the market volume of entomophages and bumblebees is 363 bln. species (2017).
For bumblebees, Russian products predominate, for entomophages - imported (in volume).
47 https://rosselhoscenter.com/index.php/pressa/analitika/11150-informatsionnyj-listok-rosselkhoztsentra-28-2017- yubilejnyj-vypusk 107 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The leader in imports to Russia is The Netherlands, 30% of import. Belgium is slightly less, 28%.
Picture 46. Import structure of entomophages and bumblebees in value terms, 2017
Russia's internal production of entomophages can be divided into 2 groups:
✓ Products produced by the branches of the Federal State Budgetary Institution «Rosselhoscenter» 48 www.rosselhoscenter.com and some other companies that are sold on the open market, ✓ Entomophages produced by major greenhouse facilities for their own needs (i.e. not marketed).
Picture 47. The structure of entomophages production in Russia by type of producers, % of the overall production volume
Source: estimated by Research.Techart https://techart.ru/files/publications/publication-674.pdf
48 FSBI «Rosselhoscenter» is a state-run institution offering services (works) in the field of crop production including: ✓ collection, processing and analysis of statistical data, etc.; ✓ prevention and desinsection activities, prevention and combating plant diseases; ✓ assessing the sowing and seed variety qualities of seeds; ✓ studying the phytosanitary situation in Russia; ✓ information and consulting services in the field of crop production. 108 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
As a rule, biolaboratories at greenhouse complexes produce 2 - 3 species of entomophages avoiding those insects whose prolifiration is costly (i.e. Orius bug). Such entomophages are imported.
One of the greenhouse complexes producing entomophages for its own needs is the Production Centre «Entarium» created on the basis of the A.I.C «Churilovo» in Chelyabinsk.
The production of biological control agents was established in compliance with the Federal «Integrated Program for the Development of Biotechnology in Russia through 2020».
«Entarium» launched commercial production of predatory insects in 2016. Currently it produces about 6 bln. insects per year to be used mostly in their own greenhouses to combat tomato, cucumber and green crop pests. They also cooperate with major greenhouse complexes.
After achieving the full capacity output the biofacility will produce 9 bln. insects. There are also plans to embark upon phase 2 construction works and extend the product range to include insects for the protection of forests, grain crops, fodder crops, fruit-and-berry crops, orchard crops and flower farms. 49
Table 38. Volume of the Russian market of biological control agents and bumblebees, 2017 Parameters Russian production Import Total Market volume, bln. insects 15 348 363 Share by volume, % of market volume 4% 96% 100% Market volume, mln. EUR a little more 1.5 * 4.3 a little more 5,8 Share by value, % of market volume 10% 90% 100% * - estimate: bumblebees cost 1.5 mln. EUR, the share of Russian production of entomophages in value is small so we do not take it into account
Reference source: Federal Customs Service of the Russian Federation, code CC FEA 0106490009, open information sources
The share of the Netherlands suppliers of entomophages to Russia is high:
✓ Share by volume is 22% or 25,7 tons; ✓ Share by value is 32% or 1.742 thous.
Among other Russian producers we can mention the Production Enterprise «Sibbiopharm» Ltd. 633004, Novosibirsk region, Berdsk, 11/1 Khimzavodskaya str. www.sibbio.ru - Dealer for protected ground «AKIM» Ltd. +7 (915) 006-59-10, (926) 571-06-52
The Production Enterprise «Sibbiofarm» was establised in 2003 on the basis of FSBI «Berdskiy zavod biologicheskih preparatov» («Berdskiy bio-products plant»).
Apart from biological control agents and plant growth regulators it also offers: ✓ Enzymes for fodder and alcohol production; ✓ Medicinal products; ✓ Biopreservatives for fodder production; ✓ Synbiotics and prebiotics;
49 http://svetich.info/news/uralskii-fo/churilo-biofabrika.html 109 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ Microbiological fertilizer, etc. The overall production output depending on the product range is 8 - 15 thousand tons per year. Among the company's customers are over 600 enterprises in the Russian Federation. Its products are exported to 15 countries in the world.
The same CC FEA code also includes bumblebee supplies. It is impossible to determine the volume of the supplies but based on some several information sources experts can infer that bumblebees used in the Russian greenhouses are mostly imported from Israel and the Netherlands. 50
Thus, for example, the group of companies «Dolina Ovoschey», one of the major greenhouse agro- industrial complexes, uses bumblebees imported from the Netherlands (https://kiozk.ru/article/rbk/16138) and supplied by a wellknown professional Dutch company.
Some suppliers to the Russian market from other countries besides The Netherlands are:
✓ BioBee Biological Systems, www.biobee.com (Israel)
The company is a major producer of Phytoseiulus mite, the most effective natural predator of the red spider mite. Besides, it also supplies bumblebees.
✓ Belgian company «Biobest Group NV» www.biobestgroup.com
The company supplies entomophages, bumblebees, pest traps.
Besides, there are several small Russian producers, i.e.
«Bumblebee Company» http://bumblebeeco.ru Voronezh, 1 Shishkova str. +7 (473) 261-91-51 [email protected]
Apart from producing its own bumblebees the company also offers entomophages from the leading international and Russian companies.
✓ Biological Pollination Service «COMPAS» Ltd. www.sbo-compas.ru (bumblebee rearing) www.compasltd.com (fertilizer) Moscow region, Lytkarino, Turayevo industrial area, builidng 38 +7 (495) 369 50 74, (963) 724 49 28 [email protected]
Over the last 20 years the company has been supplying bumblebee families to major greenhouse facilities and gardens in Russia and the CIS including the Agroholding «Moskovskiy», the greenhouse complex «Agro Invest», «Argocomplex «Gorkovskiy», etc.
50 https://www.agroinvestor.ru/analytics/news/31099-za-pyat-let-proizvodstvo-teplichnykh-ovoshchey-udvoitsya/
110 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The company has an in-house bio-laboratory. In 2017 it sold over 24 thousand bumblebee families per season. In December 2017 the company started cooperating with the world's leading bumblebee producer AgroBio A.L. (Spain) selling over 600 thousand bumblebee families per year. The company also plans to create a joint venture for the production of bumblebees and entomophages in Russia.
PESTICIDES
This Section reviews the chemical crop protection market.
The overall market structure and trends are analysed using the example of the aggregate Russian market of crop protection agents.
Currently the Russian market of crop protection agents demonstrates a positive dynamic in comparison with that of Europe.
According to the data of the major argochemistry supplier BASF, intensification of crop-farming and the growing crop acreage of large agroholdings are among the most compelling reasons for market growth.
In 2018 the volume of the crop protection market in Russia amounted to 385 thousand tons.
Table 39. The volume of the Russian crop protection market in 2013 and 2018
Indicators 2013 2018 Production, thousand tons 56 290 Import, thousand tons 82 118 Export thousand tons 11 23 Market volume, thousand tons 126 385 Share of import by volume, % of the market volume 65,0 30,6 Reference source: Federal State Statistics Service of the Russian Federation https://fedstat.ru/indicator/57783, Federal Customs Service of the Russian Federation, code CC FEA 3808
The import content in Russia is gradually going down. While admitting the sucesses of import substitution, the industry players indicate that the Russian companies producing crop protection agents depend on the import of raw material — acitve substance.
Since some of the Russian agents are produced using the imported active substance, the experts estimate the local production to import ratio being 40% / 60%. 51
According to «Kleffmann Group» (a research agency specializing in agricultural products market), the Russian crop protection market is divided almost into halves between the Russian and multinational companies (47% and 53% respectively in 2017) (https://www.agroxxi.ru/gazeta-zaschita- rastenii/zrast/globalnye-i-rossiiskie-trendy-rynka-sredstv-zaschity-rastenii.html).
Recalculated on a pro rata basis for the 2018 market volume, the volume of the crop protection market in 2018 in the Russian Federation amounted to 1,8 bln. EUR.
51 https://www.agroxxi.ru/gazeta-zaschita-rastenii/zrast/globalnye-i-rossiiskie-trendy-rynka-sredstv-zaschity- rastenii.html 111 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 In case it is accepted that import by value is 30,6%, as well as import by volume, then the volume of the crop protection market might amount to 2,4 bln. EUR.
Table 40. Dynamics of import and export of crop protection agents in Russia in 2014 and 2018 Unit 2014 2018 2018 / 2014, %E Thousand tons 13 23 77% Export mln. USD 117 170 45% Thousand tons 87 118 36% Import mln. USD 601 856 42% Reference source: Federal Customs Service of the Russian Federation, code CC FEA 3808
In 2018 the leading pesticides supplier to Russia by volume was China with its almost 32 thousand tons, 27%, whereas by value the leading pesticides supplier to Russia was France - 156 thousand EUR, 22%.
The share of the Netherlands: ✓ 9,5 thousand tons, 4th place, 8%; ✓ 14,2 thousand EUR, 11th place, 2%.
In the production of greenhouse products, the shares of Russian and imported products are approximately the same.
The largest Russian producer of pesticides is JSC Firma «Avgust» www.avgust.com. Main office 129515, Moscow, Tsandera St., 6 Tel.: +7 (495) 787-08-00, 787-08-20 E-mail: [email protected]
Firma «Avgust» sells its products in more than 20 countries around the world, including Latin and Central America, Africa, the CIS countries and the Middle East. The enterprise has 3 production sites and its own research center and a sales network of 60 representative offices and 17 subsidiaries in the regions of the Russian Federation and other countries. Furthermore, the company's sales in 2018 reached 367 mln. EUR (without VAT). The product range includes more than 110 types of products. It provides technological support services for the use of pesticides and publishes the newspaper «Pole Avgusta».
Wellknown professional companies from The Netherlands offers pesticide sprayers. That is, almost 100% of the sprayer market belongs to companies from the Netherlands. There are hardly any Russian producers on the market, who produces sprayers. At the exhibition «The greenhouse of Russia» in May 2019, «Walzmatic» introduced the «Walzmatic AGRO JET 125E» sprayer.
Table 41. Main market players in the subsegments «Crop Protection» on the Russian market Subsegments Russian producers Foreign producers + + ✓ Branches of the FSBI «Rosselhoscenter» Biological Control ✓ The Netherlands 30% ✓ Production Centre «Entarium» Ltd. created Agents ✓ Israel 20% on the basis of the A.I.C «Churilovo» ✓ Belgium 28% ✓ Production Complex «Sibbiopharm» + Pesticides + ✓ JSC Firma «Avgust» 112 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The Netherlands, almost Sprayers - the whole Russian market 2.10 AFTER HARVEST LINES
SORTING, GRADING AND PACKAGING LINES FOR VEGETABLES
The main customers purchasing sorting, grading and packaging lines for greenhouse vegetables include: ▪ Greenhouse complexes; ▪ Vegetables importers/wholesalers; ▪ Packaging companies ▪ Major retail networks.
They are ranked in descending order by their need in the required volume of equipment.
The producer's receipts are largely determined by the packaged to non-packaged goods ratio and distribution channels.
Currently, the prices for packaged tomatoes and cucumbers in Russia are 25% higher than those for the unpackaged ones on average. According to the data provided by one of the Russian Federal retail networks, 3 - 4 years ago the share of packaged products accounted for 10 - 16% by volume. Today their share has grown up to 21% on average though it varies a lot across the Russian regions.
The service-zone located chilled storage, loading/unloading, packaging and filling facilities envisaged by different investors vary considerably by their size and cost. The cost may vary up to 10 times, however, the increased receipts for packaged branded products compensate for it.
Table 42. Share of packaged goods according data of one of Russian Federal retail networks
Share of packaged goods, tons Share of packaged goods, roubles
2015 - 2016 2018 2015 - 2016 2018 Tomatoes 10% 21% 18% 34% Cucumbers 16% 21% 27% 30%
Russian greenhouse complexes are focused on retail sales, which require the supply of batches of products of constant high quality in retail packaging. Therefore, practically all new and existing projects of greenhouse complexes envisage in-house pre-sale preparation (sorting, packaging) of greenhouse vegetables. Also, packaging line are acquired by existing greenhouse complexes in which they either did not exist or were out of order.
As a rule, high quality, No. 1 Grade products are packaged for retail networks. The greater part of the products is transported and marketed in cardboard cartons or plastic/wooden boxes or crates for the customers to choose and weight vegetable in the store themselves.
This section mostly discusses equipment for: 113 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ Sorting and grading; ✓ Weighing and dosing; ✓ Packaging and filling.
Sorting, grading and packaging lines for vegetables are purchased by greenhouse vegetables producers that work with retail networks or on b2b markets where equipment breakdowns entail short- delivery and big fines. Hence the key parameter governing the choice of the equipment is dependability.
In general, this market is a well-established one, its main producers having worked on the Russian market for a long time. The main suppliers of the analysed equipment to Russia include the Netherlands (leader) and Italy. Greenhouses choose to work with relibale, high quality equipment, and hardly with Russia, Belarus or China.
The volume of the market of sorting, grading and packaging lines for vegetables in Russia amounts to 5-10 mln. EUR.
Equipment can be divided into 2 groups: ✓ For sorting and calibration; ✓ For packing and packaging (including equipment for weighing, dosing).
Equipment for packing and packaging - about 15 - 20 lines are sold annually. A line cost from 100 to 150 thousand EUR / line. Equipment for sorting and calibration - about 2 - 3 lines (up to 5) are sold annually. A line cost from 1.300 to 1.000 thousand EUR / line.
There is the calculation of the market volume of sorting, calibration and packaging equipment for new greenhouse complexes below.
Table 43. Volume of the market of sorting, grading and packaging lines for greenhouse vegetables in Russia Parameter Value Commissioning of new greenhouses, hectare per year 200 Commissioning of new greenhouses, thousand tons per year 200x60 = 120 Share of packaged goods, % about 20% Sorting, grading and packaging lines, thousand tons of greenhouse 25 vegetables Sorting, grading and packaging lines for functioning greenhouses or for greenhouses that did not have them or replacing old ones, thousand tons - (can’t define) of greenhouse vegetables Volume of the market of sorting, grading and packaging lines, mln. 5 - 10 EUR per year including imported equipment (90 - 95%) 4.5 - 9.5 Russian components (5 - 10%) 0.3 – 1,0 Reference source: estimated by «Rusmarketconsulting»
Additionally, the import data for the CC FEA code «8433600000 — equipment for cleaning, sorting or grading of eggs, fruit or other agricultural products» were analysed. This is a mixed code including primarily the equipment for cleaning and sorting of vegetables, mainly potatoes. However, it is evident that the supplying countries here are Italy, The Netherlands and Germany. 114 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Picture 48. The import structure of the equipment for cleaning, sorting or grading of eggs, fruit or other agricultural products in 2018, mln. USD
Reference source: processed data for CC FEA code 8433600000
According to the equipment suppliers, hardly any Russian made analogies are available today. However, any European equipment contains some components — elevators, transporters, etc. — that are produced in Russia.
In many projects customers seek to reduce equipment costs, so suppliers decide which parts should be produced in Europe and which – the less important ones – can be replaced for the Russian ones. Therefore, there are Russian companies that are unable to produce the entire equipment order, but can supply individual components.
The share of Russian equipment in a project depends on the specific set of equipment: in some cases the share of Russian components can account for up to 50% while in some other cases it makes 5 - 10%.
Even if Russian equipment producers switch on to integrated supplies, components will still remain European and cost reduction can only be achieved due to the cheaper Russian assembly. The end customers will still pay attention to where the equipment was assembled — in The Netherlands or in Russia.
Among the Russian companies there are 2 leading suppliers: 1 «Agropak» Ltd.; 2 «Leaderpak» Ltd.
Yet, these companies supply primarily foreign lines, mainly from The Netherlands. Together these two companies cover up to 70% of the Russian market.
1 «АGROPAK» Ltd. Address: 117342, Moscow, 17 Dutlerova str., business centre «NEO GEO» Теl.: +7 (495) 775-16-83 115 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 E-mail: [email protected] www.agropak.ru
Since 1997 the company has been developing the packaging material market for vegetables and fruit and in 2002 it started offering services in design, supply, installation and after-sale service. «Agropak» is an official representative of the major equipment producers and sorting and packaging material: ✓ Several Wellknown Professional Companies from The Netherlands; ✓ NEWTEC www.newtec.com Denmark; ✓ ESPERA; ✓ FORMIT; ✓ WEBER COOLING; ✓ REISOPACK www.reisopack.com Spain (streppers); ✓ UNICON (washing of boxes, sanitary inspection rooms); ✓ Robopaс www.robopac.com San Marino (pallet wrappers).
The company “Agropak” has 8 branches, 17 warehouses for spare parts and expendable materials. It is a member of the «Greenhouses of Russia» Association. The company organises business tours and workshops in Russia and Europe.
2 «LIDER-PACK» Ltd. 197374, Sankt-Peterburg, Optikov str., 4, build. 2, liter А, business centre «Lahta», office 3-Н Тел.: +7 (800) 550-71-97, +7 (812) 317-01-70 E-mail: [email protected] http://liderpack.net
This company supplies equipment and packaging materials for open field and indoor vegetables. The company works with the following equipment manufacturers: ✓ Several Wellknown Professional Companies from The Netherlands; ✓ Bizerba; ✓ DAUMAR; ✓ Gruppo Fabbri; ✓ Induser; ✓ Intermas; ✓ Pro-Vega; ✓ REV; ✓ RGD Mape; ✓ Robopac; ✓ Sacmi; ✓ SORMA www.sormagroup.com, Italy.;
Among other market players the following companies can be mentioned:
▪ «АGROLINE» Ltd. www.agroline.su (Russia) 129164, Moscow, Metro VDNH, Yaroslavskaya str., 8, building 5 Теl.: +7 (495) 749-95-51
116 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 «AGROLINE» is a distributor of the world's major producers of equipment for growing, storing, pre- sale preparation of vegetables and fruit for industrial enterprises and farms: ✓ «SORMA» www.sormagroup.com, Italy (packing and weighing stations); ✓ «Several Wellknown Professional Dutch Companies» (tray forming machines of one of the world market's leaders and vacuum packaging solutions for cucumbers. ✓ «SINCLAIR» www.sinclair-intl.com, England (labelling equipment),
«AGROLINE» is also an official dealer of a wellknown Nwtherlands professional company that offers a whole range of services for greenhouse complexes in the Russian Federation for: ✓ Designing construction projects of industrial glass greenhouses; ✓ Modernizing industrial greenhouses; ✓ Selecting and assembling engineering and technological equipment; ✓ Providing agronomical and technical support for the project ✓ Training operating personnel.
▪ Another wellknown company from The Netherlands was established in 2016. It supplies sorting and grading equipment for fruit, vegetables and roses across Russia. The Dutch company has service and spare parts storage facilities in Moscow, St Petersburg, Voronezh, Rostov-on-Don, Nalchik and Maykop.The company receives ongoing support of the plants in The Netherlands and Italy and it has an agency and dealer network across Russia and the CIS.
▪ «Interagro» Ltd. www.interagro.info Address: Moscow, 2-nd Sinichkina str., 9а, business centre «Sinitsa Plaza» Tel.: +7 (495) 783-94-84 E-mail: [email protected]
«Interagro» is a designer and integrator of integrated projects for the Russian Ago-Industrial Complex: ✓ Wholesale and distribution centres; ✓ Vegetable storehouses; ✓ Vegetables and fruit post-harvesting and processing lines; ✓ Mushroom growing complexes.
Besides, «Interagro» offers automated lines for the seedling units of a wellknown professional company from The Netherlands. The enterprise “Interagro” also represents a wellknown professional company from The Netherlands that is dealing in design and production of metal products, Russian assembly, IDROMECCANICA LUCCHINI (Italy) producers plastic greenhouses and different greenhouse systems, SORMA GROUP S.P.A. (Italy) is offering automated lines for weighing, grading and packaging of vegetables and fruit.
Among Russian manufacturers the following company can be mention: JSC «ТAURAS-FENIX» www.taurasfenix.com. The company producers packaging equipment for the food industry.
Legal address: 196240, Sankt-Petersburg, 80 Kubinskaya str., lit. B, premise 11N, office 606 Теl.: +7 (800) 200-49-10, +7 (812) 494-88-08 E-mail: [email protected]
Phone numbers of the Regional representative offices
117 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Moscow: +7 (499) 649-31-84 Ekaterinburg: +7 (343) 383-12-55 Novosibirsk: +7 (383) 209-19-40 Saratov: +7 (8452) 25-87-40 Ukraine, Cherkassy: +38 0472 36-20-31
PACKAGING MATERIALS
Packaging forms and formats for greenhouse vegetables vary a lot. Primarily these are made of cardboard and plastic.
Since these materials are non-specific, there are quite a number of producers and suppliers offering film, polystyrene foam trays, containers, etc. Identifying a leader is a challence.
Picture 49. Packaging formats for greenhouse vegetables
As a rule, packaging materials are offered by the same companies that supply packaging lines: 1 «Аgropak»; 2 «Liderpack».
3 Among the companies that offer only film the company «Komus-upakovka» can be mentioned. www.komus-upakovka.ru/catalog/vegetables
Client account managers can be found in almost all regions of Russia. The company also works in Kazakhstan and Belarus and it offers packaging not only for fresh vegetables but also for confectionery products, fast-food, ready-to-serve salads, etc.
4 Manufacturers in Russia also often order film from the company «MUOVIJALOSTE OY», Finland www.muovijaloste.fi
118 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 5 Polyethlene film and bags for various industries are for example supplied by: «Interbag plus» Ltd. 630049, Novosibirsk, 220 Krasniy prospect str, build. 32 Тел. +7 (383) 210-62-69 www.interbag.ru [email protected]
Table 44. Main market players in the subsegments of «After Harvest Lines» in Russia Subsegments Russian producers Foreign producers + Sorting, grading and packaging ✓ «Agropak» ✓ Several wellknown professional lines for vegetables, flowers, ✓ «Tauras-Feniks» companies from The Netherlands and plants and soft fruits dealers «Agropak» and «Liderpack» + + Packaging Materials Many Russian ✓ company MUOVIJALOSTE OY, companies Finland
119 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.11 LOGISTICS OF PLANT PRODUCTS
STORAGE, COOLING FACILITIES, DISTRIBUTION CENTERS
The storing of greenhouse vegetables requires only cooling. The survey of the industry players demonstrated that the main cooling system equipment (condenser, compressor, heat-exchanger, pump) is imported: from Germany, Italy and other world leaders. Design, assembly and service can be provided by: ✓ Russian companies-official dealers of foreign manufacturers; ✓ Independent Russian companies; ✓ Companies offering turn-key greenhouse projects.
Listed below are the foreign companies and brands that were known to most of the industry players and are the major suppliers of cooling equipment parts to Russia.
1. Condensers:
✓ Thermofin https://www.thermofin.de, Germany Representative Office in Russia is «Termofin» http://thermofin.ru
✓ Güntner Europe GmbH www.guentner.ru, Germany This group of companies works in international transport, food, pharmaceutical and computer companies.
«Aircool» https://cool-centre.ru/ is an official partner and service centre of GÜNTNER in Russia.
2. Compressors:
✓ Bitzer, Germany http://bitzer-russia.ru is an official supplier of Bitzer equipment on the territory of the Russian Federation. The company deals in supplies, design, assembly, service and maintenance.
✓ DORIN www.dorin.com, Italy The company was established in 1918. http://www.dorinrus.ru – the company's official website in Russia.
Also, can be mentioned the Russian company «Aircool» Ltd. www.aircool.pro, St. Petersburg. The company is a major player on the refrigeration market and one of the top five refrigeration companies in Russia. Its core business is providing refrigeration supply systems for food and industrial warehouses. The company has been on the market for over 25 years with over 400 implemented projects.
The company has an in-house certified production facility in St. Petersburg under the AIRCOOL brand.
120 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The company “Aircool” is an official distributor and works directly with the production enterprises of the leading European brands including: «Bitzer», «Copeland», «Emerson», «Frascold», «Alfa Laval», «Güntner», «WTK» S.p.A, «Сarel», «cool it GmbH».
3. Heat-exchangers:
✓ Alfa Laval www.alfalaval.com, Sweden «Lunda» Ltd. is an official distributor of Alfa Laval in Russia.
This is also one of the first foreign companies that opened its own production facility in Russia in 1992 in the town of Korolev in the Moscow region on the basis of the «Bolshevo machine-building plant» - «Alfa Laval Potok» PLC. The company produces among others heat-exchangers and rubber seals. The overall level of production localisation amounts to 95%. 52
✓ GEA https://www.gea.com, Germany The international group of companies GEA is one of the major suppliers of technological solutions for food and other manufacturing industries.
4. Pumps:
✓ DANFOSS www.danfoss.com, Denmark
«Alfa-Gidravlika» Ltd. is a distributor and authorised service partner, Moscow region.
✓ Copeland https://climate.emerson.com, USA
«Aircool» Ltd. http://copeland.su, https://cool-centre.ru/ is an official distributor of and service centre for Copeland compressors as well as compressors of other leading European producers, St .Petersburg.
✓ Grundfoss https://ru.grundfos.com, Denmark
The enterprise has a well-developed network of branches and service centres in many of the Russian regions. The Representative Office in Moscow was established in 1992. In 1998 a subsidiary company «Grudfoss» Ltd was established.
In 2005 the construction of phase 1 and in 2011 of phase 2 of the «Grudfoss Istra» plant was completed in Moscow region (manufacturing various pumps). This is one of the localisation examples in the industry.
These companies seldom work with Russian producers because: ✓ Their quality is lower than that in Europe; ✓ They consume considerably more energy and buying an expensive foreign pump to pay less for electricity eventually proves cheaper.
52 Source: https://termopartner.ru/brands/alfa_laval/ 121 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
TRANSPORT
When transporting products, it is necessary to observe a temperature regime of about + 5°C. For transportation, any vehicle on which a refrigerator is installed is suitable. Refrigerator producers are producers of refrigeration equipment - see the previous section.
Picture 50 below shows an example of transport based on the transport of «Vyborzhets», a large greenhouse complex in the Leningrad region. As a vehicle, the SCANIA unit (Sweden) is used, to which a trailer with a refrigerator is attached.
Transport can be owned as well as rented.
Picture 50. Transport of the greenhouse complex «Vyborzhets»
Table 45. Main market players in the subsegments of «Logistics of plant products» in Russia Subsegments Russian producers Foreign producers Storage, cooling facilities, - ✓ Germany, Italy, Denmark, Sweden distribution centers Transport - ✓ Germany, Italy, Denmark, Sweden
122 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.12 CONSULTANCY
KNOWLEDGE TRANSFER AND PRACTICAL TRAINING OF MANAGEMENT, GROWERS, AGRONOMISTS, ETC.
This Section review the available consulting services for greenhouses.
All the interviewed experts agree that: ▪ In Russia independent consulting for agriculture is facing big challenges; ▪ The main volume of consulting services is rendered in the framework of campaigns promoting goods and services by specific companies.
Independent consultants (consulting companies) appear a one-off case and their volume of work is quite modest.
It is difficult for independent consultants to compete with consulting services rendered in the process of promoting goods and services since such consulting from suppliers to clients is formally free.
There are independent consultants, both in technical consulting and marketing, but there are just a few.
At the same time, the interviewed industry players note the high cost of the services of foreign consultants. Thus, the cost of one working day of a Dutch technical expert amounts from 600 up to 1.200 EUR plus travel expenses.
In Russia there are hardly any special purpose subsidies available for agricultural producers to compensate for consulting services.
At the same time, the industry players note that a situation when the initiators of a billion roubles strong project refuse from consulting explaining it by the lack of funding is not untypical.
An increase in sales of consulting services depends on the results achieved by a specific consultant. Then the system of personal referrals steps in.
The advantage of an independent consultant is that he is not affiliated with any supplier companies, so he is not aimed at maximising the sales of a specific product but seeks to ensure the maximum possible effect for the customer.
The greenhouse business players share the opinion that The Netherlands companies prove indisputable leaders whose expertise and authority in growing greenhouse vegetables are well- acknowledged.
The market of consulting services is not transparent, there exist both positive and negative experiences of involving consultants.
The choice of consultants depends on the status of the greenhouse facility: strong facilities mostly choose foreign consultants while the weaker ones might involve experts of the leading Russian complexes or other industry companies.
123 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The following types of organisations offer consulting services in Russia:
1 Industry Associations of - consultations on growing technology, equipment, protecting Entrepreneurs the interests of the producers, etc.
2 Suppliers of equipment, materials - technological consulting
3 Independent consultancies / - information and marketing support consultants
- consultations on growing technology, on the use of 4 Greenhouse complexes equipment, etc.
Below one can find 1 - 2 examples from each group and the description of the services rendered.
1. INDUSTRY ENTREPRENEUR ASSOCIATIONS (UNIONS)
1 The «Greenhouses of Russia» Association
109390, Moscow, 6B Artyukhinoy str., office 501 Теl.: +7 (495) 651-08-39 www.rusteplica.ru English language website www.rusteplica.ru/en President of the Association Alexei Vladimirovich Sitnikov CEO of the Association Natalia Dmitriyevna Rogova
The «Greenhouses of Russia» Association was created in 1994 on the initiative of the greenhouses managers. The Association includes 242 members including 127 greenhouse facilities with an overall area of winter glass greenhouses of over 1.900 hectares.
The Association's main areas of activity include: ✓ Representing and protecting the interests of the greenhouse producers in the RF Government, State Duma, Federation Council, Ministry of Agriculture, regional ministries and departments; ✓ Studying and implementing new technologies at the protected ground complexes; ✓ Providing information support to greenhouse facilities; ✓ Promoting international cooperation in the area of protected ground business.
The Association carries out the following activities: ✓ Conferences, seminars, etc.; ✓ Further education courses; ✓ International Forum «The Greenhouses of Russia»; ✓ Specialised exhibition «Protected Ground of Russia».
The Association also publishes «The Greenhouses of Russia» magazine targeted at the industry experts. This magazine has been published since 1994.
124 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
2 «The National Union of Vegetable Producers»
123376, Moscow, 20 Rochdelskaya str., Tel.: + 7 (495) 926-25-60, +7 (985) 639-10-12 www.ovoshnoysouz.ru [email protected]
The Union was established in 2014. Goals: ✓ Representing and protecting the interests of the Union members; ✓ Providing legal assistance to the Union members, protecting legal and economic interests of the Union members.
2. SUPPLIERS OF EQUIPMENT, MACHINERY AND MATERIALS, TURNKEY PROJECTS
It has been already mentioned that the main volume of consulting services is affiliated with the producer or supplier of products, equipment, services and materials i.e. technology consulting.
The new projects tend to involve companies that offer turn-key solutions. The range of services includes the following stages: ✓ Assisting the customer in choosing technology, production volume, cultures and writing a business-plan; ✓ Then the consulting company can act as project designer, equipment supplier, carry out assembly works and commissioning; ✓ Some companies also offer support during the production process (consulting, technical maintenance and repair, supplying expendables, etc.).
In Russia there are many both Russian and foreign companies that offer turn-key solutions. Some of such companies were mentioned earlier in Section 2.3 «Greenhouse Construction».
In addition to the already mentioned companies, Ltd PKF «Teplichnye Tekhnologii» can be named. Integrator company. Moscow, Kostyakova St., 10 Tel: +7 (495) 125-12-21, +7 (499) 977-56-08, 977-51-33 E-mail: [email protected] www.ght.ru
Both Russian and foreign companies conduct trainings and seminars in Russia and abroad. For example, the Russian company «GrowTech» (dealing in rockwool «Belagro» and coco-peat slabs «BIO-GROW») apart from providing agronomical support in the process of using the substrate also offers consultations by French experts.
The company Ltd. «Teplichnyi Servis» is a distributor of a wellknown professional company of The Netherlands in Russia supplying biological protection agents and bumblebees:
✓ Since 1995 the company has published «The World of Greenhouses», an industry trade journal for protected ground specialists that discusses new technologies, engineering and economic issues as well as international production practices; 125 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
✓ Since 2003 the company has held the «Tomato Club» workshops where experts from the Netherlands provide consultations on the technology of tomato growing and present promising developments in the greenhouse sector. 53
3. INDEPENDENT CONSULTING COMPANIES /CONSULTANTS
3.1 Consulting services in marketing research and business planning:
1 «Agriconsult group» www.agricons.ru/en, St. Petersburg Ltd. «Agriconsult» and Ltd. «Rusmarketconsulting» The company has been working in the sphere of business planning and marketing for 25 years.
2 Holding «Tekhnologii Teplichnogo Rosta» www.ghgt.ru One of the leaders in the greenhouse vegetable market (see section 1.9.3 «Large greenhouse holdings»). Provides consulting services.
3 «AB Tsentr» Legal address: 385019, Republic of Adygea, Maykop, Shosseynaya st., 12, 50 Tel.: +7 (495) 374-67-10 [email protected] www.ab-centre.ru Marketing research of agricultural raw materials and food markets.
3.2 Technology consulting:
«A wellknown professional company from The Netherlands»
Ltd «Greenland» 153035, Ivanovo region, Ivanovo, Radishcheva st., 18, of. 72 Tel.: +7 (963) 214-12-34 E-mail: [email protected]
Individual Entrepreneur Elinson Galina Vitalievna Galina Elinson Tel.: +7 (921) 946-71-39 E-mail: [email protected]
3 Financial audit:
«WALTER company» Moscow office: Tel.: +7 (499) 646-01-23 ext. 145 E-mail: [email protected], [email protected]
53 http://www.ghservice.ru/index.php?p=index&area=1 126 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 www.waltercompany.ru Financial and technical supervision and consulting, construction and technical audit, development of business plans and other services.
«NEO Tsentr» Moscow, Novinsky Boulevard, bld. 31, Novinsky Trade Center Tel.: +7 (495) 739-39-77 [email protected] Kazan, Spartakovskaya St., 6, Business Center Suvar Plaza, floor 7, office 712 Tel.: +7 (843) 526-55-06 [email protected] www.neoconsult.ru
Services: ✓ Rating; ✓ Engineering; ✓ Fundraising; ✓ Research and analytics; ✓ Strategic and operational consulting.
4. Producers of greenhouse vegetables
Producers of greenhouse vegetables themselves also can provide consulting services, as they have direct experience in using various equipment, machinery, materials, they monitor trends in the market for their products (vegetables, flowers).
For example, the greenhouses of the FITO company («LipetskAgro» and «Yeletskye ovoschi») offer advice on the issue of subsidies for regional and federal programs. Trading House «Dolina ovoschey» (part of «FITO») offers consultations on the practice of cooperation with large retailers.
Overall, the market of independent consulting services for greenhouse vegetable producers is not big and it is quite a challenge to provide a quantitative assessment of it.
127 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2.13 INTERMEDIATE CONCLUSIONS
Before 2018 the greenhouse sector developed rapidly. About 200 hectares were launched annually. As of 2019 the launching of some large greenhouses is announced. It will provide the capacity gain about 200 - 260 hectares, in 2020 – about 250 hectares.
Since 2020 the new planned greenhouses to be build is declining (for more detail, see section 1.11). Consequently, the volume of supply of main greenhouse equipment in Russia will decrease in the sector as well.
The feature of greenhouse production in Russia is highly import dependency driven in many segments: specialized equipment and replacement components for the greenhouses, packaging lines for the vegetables, propagation material, chemical and biological control agents. There is an import substitution in some segments. Before aluminium and steel structures for greenhouses were imported; now to 30% of structures are produced in Russia.
The most advanced market segments for the companies from The Netherlands are defined according to: ✓ The market capacity of the segment and the share of imports in it; ✓ The current position of Dutch companies in the segment.
As has been seen in section 2.1.1 «Investment costs», the largest segments of the capital expenditures are «Greenhouse Construction», «Heating & Power Equipment» и «Climate Control and (LED) Lighting».
Investment costs
Including imports Market Market value, Product categories prospects for mln EUR % mln EUR 3 - 5 years
90 Greenhouse Construction ✓ Foundations 30 Decrease ✓ Steel and aluminum structures 40 Up to 70% Decrease ✓ Glass 18 0% 0 Decrease
110 - 160 Heating & Power Equipment ✓ Heating & power systems 108 - 160 100% 108 - 160 Decrease ✓ CO2 enrichment - Decrease ✓ Boilers for heating, water basins - Decrease ✓ Electronic systems - Decrease
120 Climate Control and (LED) Lighting ✓ Ventilation - Decrease ✓ Cooling and screening systems 10 Decrease ✓ Coatings - Lamps 20% Lamps 8 Lamps 41, Decrease, ✓ Lighting systems lighting lighting lighting prospects for LED- systems 68 systems systems lighting insignificant insignificant
12 Automatization ✓ Control climate, energy, water 12 80% 9,6 Growth 128 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 and data management, (project) management and labour
Small, can’t be Consultancy Growth estimated
After harvest Lines 7 ✓ Sorting, grading packaging lines for vegetables, flowers, plants 7 Insignificant growth and soft fruits
3 Logistics of Plant Products ✓ Storage and cooling facilities 3 Growth
Operating expenses
Including imports Market Market value, Product categories prospects for 3- mln EUR % mln EUR 5 years
90 Propagation Material ✓ Vegetable seeds 39 85% 33 Growth ✓ Other seedlings and seeds 9 Stagnation or ✓ Flower bulbs 22 98% 22 insignificant growth ✓ Roses nursery material 28 30%* (in value, in 8 Stagnation volume much less)
34 Input for Crop Growing on average 65% ✓ Substrate 17 (stone wool 11 Growth substrate 36% coconut 100%) ✓ Hydroponics 4 ✓ Fertilizers 10 40% 4 Growth ✓ Drip irrigation 2
65 Greenhouse Material ✓ Floor covers and mats, ropes, 8 Growth yarns, clips, crates + containers ✓ Trolleys, platforms 7 5% 0,35 Growth Stagnation or ✓ Packaging material 50 20% 10 Decrease
8 Crop Protection ✓ Biological control agents and 6 74% 4,3 Growth bumblebees ✓ Pesticides 1 50% 0,5 Growth ✓ Insect traps and insect netting - Growth
СONCLUSION for segment «Propagation material»:
The share of the companies from The Netherlands in this segment is significant. Up to 70% of the seed market for vegetable greenhouses is occupied by wellknown professional Dutch companies.
The tulip bulbs and the rose seedlings are the top requested from the flower propagation material:
129 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ 98% of bulbs are imported; 87% of imports are from The Netherlands, ✓ 24% of imported rose seedlings are from The Netherlands.
In future the share of Dutch companies in the greenhouse vegetable seed subsegment will be the same, but the value of seed subsegment will increase due to the seed supply to the new greenhouses.
The share of Dutch companies in the subsegment of flower propagation material will be the same, but the value will not increase because there are hardly any new projects.
CONCLUSION for segment «Greenhouse Construction»:
The share of the companies from The Netherlands in the segment «Greenhouse Construction» is high.
According to experts, the subsegment «greenhouse turnkey projects» is presented by the Dutch companies to 70 - 80%. The companies from Italy, Israel and Spain compete with them.
In the subsegment «steel and aluminum structures» 70% are imported, mainly from The Netherlands. In future the share of Netherlands will increase because the investors will abandon Russian products to the imported products (higher quality).
The subsegments «foundations» and «glass» are 100 % Russian. The pales are mainly produced in Russia, so the share of imports is small.
CONCLUSION for segment «Heating & Power Equipment»:
Power equipment is supplied by Austria, Germany and USA.
The companies from The Netherlands supply power and heating equipment.
The position of the companies from The Netherlands is significant in the segment «heating equipment» only. The products are supplied directly from the producers of boilers and heating systems or as a part of turnkey projects.
There are some Dutch companies offering power equipment, but the players at the Russian market do not really know about power equipment from The Netherlands.
The share of CO2 enrichment equipment is insignificant in the total project cost.
There are no possibilities to strengthen the position of Dutch companies in this segment.
CONCLUSION for segment «Climate Control and (LED) Lighting»:
The share of The Netherlands in the subsegment «Ventilation» is high. One of the wellknown professional Dutch companies occupies around 70% of the market.
130 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 There are German ventilators «ZIEHL-ABEGG». The company is increasing the share of the market because its ventilators have a high quality and are near-silent. Russian producers try to produce ventilators but the engines have relatively low quality.
90% of supplementary lighting in Russian greenhouses is sodium lamps. The Netherlands is represented by a number of wellknown professional companies and one of them has about 20% of the market. 60%-80% of sodium lamps are produced by the Russian company «Reflux».
The small but perspective market player is German company «OSRAM». It produces 1.000 W lamps. Taking into account a decrease in price, the company can increase its share in the Russian market.
Lighting systems: the products of Russian assembly are from imported components.
In the subsegment «Cooling & Screening Systems» there are no many companies from The Netherlands. Most of the market is divided between two leaders - «LUDVIG SVENSSON» and «PHORMIUM».
In general, the share of Dutch companies in the segment will be the same. The volume of supplies will decrease because of the volume reduction in the launching of new greenhouse projects. Continuation of service of the existing greenhouses.
The market capacity of lamps and lighting systems will increase insignificantly, because of the launching of less new greenhouses + the replacement in the existing greenhouses complexes (for example, the full lamp replacement is necessary one time per three years).
CONCLUSION for segment «Input for Crop Growing»:
The Netherlands is represented in the «substrate» subsegment as the main supplier of the mineral substrate brand «GRODAN» («ROCKWOOL Group»). Under this brand, both the substrate imported from Poland and The Netherlands as well as the substrate produced in Russia at the new plant in Tatarstan are supplied on the Russian market.
The types of substrate not produced in Russia are imported.
The share of imported substrate in the Russian market is 55%. The coconut substrate, which occupies up to 30% of the market, is 100% imported from Sri Lanka.
Hydroponics and drip irrigation – the volume of the subsegment is insignificant, many producers.
Fertilizers – mainly Russian, imported - about 40%.
Because «ROCKWOOL Group» already accounts for about 96% of the import - that is, any growth in this direction is hardly possible. But it is possible to increase the substrate production at the Russian «ROCKWOOL Group» plant in Tatarstan.
CONCLUSIONS for segment «Greenhouse Material»:
131 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
In the «Trolleys & Platforms» subsegment, almost the entire market is occupied by Russian «Walzmatic» company. There are single deliveries from Dutch companies. But experts expects they will not be able to increase their share, because the trolleys from «Walzmatic» are cheaper and of good quality.
The sub-sector «Floor Covers and Mats, Ropes, Yarns» presents companies from The Netherlands. In the future, their share will remain, there are many similar companies on the market in Russia.
The sub-sector «Packaging Material» is quite large, about 80% are Russian materials.
CONCLUSION for segment «Automatization»:
This segment is not a big one but the share of Dutch companies is large. The share will not increase because the growth rate of greenhouse construction is decreasing. On the other hand, to increase the competitiveness of the greenhouses there might be a demand for the automatization, control, monitoring systems for those greenhouses which do not have such systems. But the value will be small. A plus is the service of the existing automatization, control, monitoring systems (replacement and reparation of old equipment).
CONCUSION for segment «Crop Protection»:
The share of Dutch companies in the subsegment «Biological Control Agents» is large, 30% of imports in value terms. For bumble bees the Russian products dominate.
The subsegment «Pesticides» is small. The biological control agents are mainly used. The volume of applied pesticides is 4 - 5 times less than the volume of biological control agents.
CONCLUSION for segment «Sorting, Grading and Packaging Lines»:
Imports are mainly from The Netherlands. In future, on basis of the positive experience of working with Dutch companies, it is expected investors in Russia will continue to contact and work with them.
Packaging materials are mainly Russian. The share of import is small, imported products are more expensive that Russian ones, the quality of Russian and imported products seems to be about the same.
In Gennadii Kalistov’s opinion, the General Director of LTD «Agropak», in the near future the share of packaged products will not increase and more likely decrease as a result of the decline of the population income.
CONCLUSION for segment «Logistics of Plant Products»:
The main equipment of cooling systems is imported, from the world-class producers.
132 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Cooling equipment for subsegment «Transport» is produced by the same players.
133 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 3 GUIDE TO MARKET ENTRY
The main goods and services connected with the greenhouse sector can be divided into two parts:
- Necessary for the implementation of new investment projects (the core assets are metal structure, lamps and lighting systems, climatic screens, foundation, trolleys, glass, power and heating equipment, sorting, grading and packaging lines etc.);
- Necessary for greenhouse working (current assets – seeds, substrate, fertilizers, packaging materials, biological control agents and pesticides, twine, etc.).
According to current market players, the entrance of a new player to the greenhouse market in these two directions is a great challenge. The main suppliers in the different segments have been well known, have established reputation and the competition among the companies in the Russian market is very high.
About 200 hectares of greenhouses are planned to be launch in 2019 - 2020 annually. After these two years, experts expect the volume of launching new projects will slow down. Consequently, the volume of supply of main equipment will decrease as well. This also means that competition will increase more with a decrease in launching greenhouse projects.
At the same time the volume and the share of modern greenhouses with European technologies will grow slowly. Consequently, the supply capacity of the consumable and expendable materials, including innovation, will increase.
There are some new suppliers on the Russian market. For example, the Russian company «Interagro» now offers biodegradable twine produced by a wellknown professional company from The Netherlands.
Dutch companies have many years of experience in the sphere of equipment supply and consulting for the greenhouse projects. This experience can be the main point to entry the market of new products or new companies. However, Russian companies are gaining experience and competences gradually, especially those who have an experience of cooperation with the producers from The Netherlands.
Prospect regions
The most prospect regions are the regions where the greenhouse investment projects are implemented or will be built. Regions like: ✓ Moscow region; ✓ Neighbouring Moscow regions: Lipetsk, Belgorod, Kaluga, etc.; ✓ Southern regions: Rostov region, Stavropol Krai, etc.; ✓ Separate projects in for example Siberia, Urals, Far East, etc.
Prospect crops
134 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Earlier the greenhouse complexes were aimed at cucumber growing. Now there are a growing number of greenhouses with tomato specialization. Sometimes egg-plant and sweet (bell) pepper growing is planning. There is an interest in growing greenery and salad, especially nearby the big cities in Russia. Prospect technologies
In the next one or two years the extensive growth of the greenhouse sector will carry on due to the increase of the greenhouse area. After that the development of the greenhouse sector will be caused by the improvement of operational efficiency of the greenhouses.
This trend is also proved and confirmed by the survey carried out by the investment company «Vostock Capital» (more than 250 respondents) in the lead-up to the 4th International Investment Forum and Exhibition «Greenhouse Complexes Russia and CIS 2019». The experts mentioned the technologies which they plan to use in Russia:
✓ LED additional lighting; ✓ Automatization of lighting, monitoring, sorting, grading and packaging; ✓ Some producers – generator and storage techniques of electricity, heat and carbon dioxide.
Now there is a trend of оn-line management. For example, the company «Grodan» offers a mobile app «e-Gro» providing on-line data about substrate.
There is an increasing interest to vertical growing/farming and indoor growing without natural light.
Now the companies from The Netherlands are the market leaders in this direction. Chinese companies take a large interest in this segment as well.
In picture 51 the locations of vertical greenhouses are indicated by points. The most vertical greenhouses are located in The Netherlands. The number of greenhouses and the trends are also indicated. In Russia and in some developing countries there is an increasing tendency in this market segment.
Picture 51. Estimated greenhouse vegetable production area & vertical farming concentrations
135 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Source: publication of Stroomi B.V. (international consulting company) «Agro-innovation media» May 2018-2nd issue Promotion tools
The majorities of companies, working at the Russian market, conduct active marketing policy and use the following promotion tools: ✓ Participation in exhibitions; ✓ Participation in specialized seminars and/or conferences; ✓ Direct sales; ✓ Providing consultancy; ✓ Publication in trade journals and other mass media, web promotion.
There are some main federal exhibitions in Russia for greenhouse producers and suppliers:
✓ Specialized exhibition «The greenhouses of Russia» www.rusteplica.ru; ✓ International Investment Forum and Exhibition «Greenhouse Complexes Russia and CIS 2020» («Vostok Capital») www.greenhousesforum.com.
There are agrarian exhibitions, including different segments – for example «Zolotaya Osen’» («Golden Autumn»), www.hgoldenautumn.moscow – the largest and strategic agricultural exhibition in Russia.
There are specialized exhibitions for some segments, for example: ✓ «RosUpack» www.rosupack.com for producers of packaging equipment and materials; ✓ «Interlight Russia | Intelligent building Russia» www.interlight-moscow.ru.messefrankfurt.com – lighting, safety control systems, building and electrical engineering, automatization, etc.
The detailed list of exhibitions is presented in Addendum 3.
Possibilities for localization
136 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 At the present time in Russia there is a general trend to support Russian production. Such trend is not only for agricultural products, but also for infrastructure elements, for example.
One of the possibilities of market promotion in Russia can be localization.
There are a few such examples, for instance LTD «Lipeckij zavod teplichnyh konstrukcij» which actively cooperates with a wellknown professional Dutch company, which is a producer of greenhouse structures.This Dutch company is a main supplier of structures for the implementing projects of the greenhouses of agroholding «EKO-KULTURA».
The development of the greenhouse sector (both the construction of new greenhouses and the modernization of the existing ones) requires investment in teaching and training as well.
For example, «EKO-KULTURA» is building 5 - 6 large greenhouses in Russia at the same time, besides the projects in Uzbekistan and Kazakhstan.
The issue of education and training of staff can be solved by the transfer of personnel from the existing regular production sites to the new ones with an intensive corporate training and by choosing the best- motivated experts.
137 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 THE REPUBLIC OF KAZAKHSTAN
4 GREENHOUSE SECTOR SITUATION
4.1 THE AREA OF GREENHOUSE FOR GROWING OF GREENHOUSE VEGETABLES
The greenhouse industry in the Republic of Kazakhstan started to develop only in 1970s. A powerful park of winter (glass) greenhouses has been created since 1980 until the collapse of the Soviet Union. So, in 1990, in the Republic of Kazakhstan, there were 560 hectares of protected ground, 59% thereof were spring film greenhouses. The industrial scale of construction was provided, first of all, by the high profitability of farms (70-200%), to a greater extent due to low energy prices.
Similar to Russia, the collapse of the Soviet Union and further economic crisis brought the industry into decline. By 1994, the volume of production of vegetables in greenhouses has decreased by more than 2 times. Increased energy prices, abolition of most benefits and subsidies, lack of credit policies, leasing schemes, development of new high-yielding varieties and hybrids of vegetables led to a sharp decrease in the area of protected ground. Only since 2003, Kazakhstan has a positive trend in the construction and reconstruction of greenhouses.
As the president of the Association of Greenhouses of Kazakhstan Kanat Koshman noted, the development of greenhouse business in the Republic is now experiencing a great upsurge. In 2008 in Kazakhstan there were only 108 greenhouses with a total area of 59 hectares, in 2018 the utilized area of greenhouses amounted to 1.164 hectares (all categories of farms) - in ten years it has grown by almost 20 times. But, at the same time, unlike Russia, there are a lot of small producers of greenhouse vegetables.
Picture 52. The area of greenhouses used to grow vegetables on protected ground, ha.
Source: The Committee for Statistics of the Republic of Kazakhstan
Greenhouses of obsolete designs were ineffective due to high energy costs, so greenhouse farms and new investors were switching to construction of high-tech greenhouses equipped with their own energy center.
138 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The largest areas of greenhouses are concentrated in family farms - 53% in 2018. Since 2013, the share of the family farm sector has grown by 12% or 384 hectares.
Table 46. The area of greenhouses used to grow vegetables on protected ground, ha. Agricultural Individual entrepreneurs Private Years All categories enterprises and family farms farms 2013 141 234 201 576 2014 151 389 304 844 2015 153 441 373 968 2016 186 471 378 1 035 2017 219 528 372 1 120 2018 180 618 366 1 164 2018/2013 + 39 + 384 + 165 + 588 Source: The Committee for Statistics of the Republic of Kazakhstan
The share of agricultural enterprises in the total area of protected ground is only 15%. This distribution is significantly different from the Russian one, where the main production is concentrated in large entities.
139 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.2 GROSS PRODUCTION OF GREENHOUSE VEGETABLES
According to official statistics, the main share of local production of greenhouse vegetables in Kazakhstan is provided by individual entrepreneurs and family farms - 49%.
Agricultural enterprises have the smallest share in the total production. See picture 53 and table 47 below.
From 2013 to 2018, the gross harvest of vegetables increased by 86 thousand tons, almost 2 times. Moreover, 55% of this growth was provided by family farms.
Picture 53. The volume of production of protected ground vegetables in Kazakhstan by types of farms, thousand tons
Source: The Committee for Statistics of the Republic of Kazakhstan http://stat.gov.kz/faces/wcnav_externalId/homeNumbersAgriculture?_afrLoop=10453351334063583#%40%3F_af rLoop%3D10453351334063583%26_adf.ctrl-state%3Dhs4vmzz90_67
Table 47. Total gross harvest of protected ground vegetables in Kazakhstan, thousand tons Agricultural Individual entrepreneurs Private Years All categories enterprise and family farms farms 2013 34 40 16 90 2014 24 81 48 153 2015 26 76 46 148 2016 29 82 48 159 2017 43 82 50 175 2018 45 87 44 176 2018/2013 + 11 + 47 + 28 + 86 Source: The Committee for Statistics of the Republic of Kazakhstan
The structure of production is characterized practically by equal shares of tomatoes and cucumbers, 47% and 49%. The rest of crop cover 4% of the production volume. The share for tomatoes is higher than in Russia.
140 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 54. The structure of production of greenhouse vegetables in Kazakhstan, agricultural enterprises + family farms, thousand tons, 2018
Source: The Committee for Statistics of the Republic of Kazakhstan
There are no official data on the yield of vegetables. According to the calculated data, the highest yield is typical for agricultural enterprises - 23 kg/m2 for cucumbers and 26 kg/m2 for tomatoes. The yield in greenhouses of family farms is lower - 16 kg/m2 for cucumbers and 13 kg/m2 for tomatoes.54
For comparison: the yield of greenhouse vegetables in the greenhouses of Kazakhstan is lower than in Russia (average 40 kg/m2).
Most likely, it is explained by the low share of the use of modern technologies, even in most of the new greenhouses.
54 Yield data have been obtained by dividing the production volume by the growing area. 141 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.3 IMPORT AND EXPORT OF GREENHOUSE VEGETABLES
Data of the Customs statistics were analysed:
✓ by CC FEA code 07 02 000 000 – tomatoes, fresh and chilled; ✓ by CC FEA code 07 07 000 500 – cucumbers, fresh and chilled; ✓ by CC FEA code 07 05 190 000 – salad (This code is for leaf salad only, not incl. iceberg type lettuce); ✓ by CC FEA code 07 09 300 000 – aubergines (eggplants), fresh and chilled; ✓ by CC FEA code 07 09 601 000 – sweet peppers, fresh and chilled.
The data source for analysis: https://comtrade.un.org/data/, http://kgd.gov.kz/ru/exp_trade_files.
4.3.1 IMPORT
Kazakhstan is a net importer of fresh greenhouse vegetables.
Table 48. Import of greenhouse vegetables to Kazakhstan in 2018 Import Supplying Country’s share in the mln. EUR thous. tons mln. EUR countries volume of supplies Uzbekistan 53% 3.1 Cucumbers 10.3 5.9 China 35% 2.1 Uzbekistan 56% 21.3 Tomatoes 65.1 38.3 China 38% 14.4 Uzbekistan 61% 2.1 Aubergines 15.2 3.5 China 37% 1.3 Salad 0.4 0.3 China 49% 0.14 Sweet pepper 22.8 12.8 China 76% 9.75 TOTAL: 113.8 60.8 - - -
4.3.2 EXPORT
Table 49. Export of greenhouse vegetables from Kazakhstan in 2018 Export Countries- Country’s share in the mln. EUR thous. tons mln. EUR consignees volume of supplies Cucumbers 6.1 5.1 Russia 100% 5.1 Tomatoes 20.8 13.3 Russia 100% 13.3 Aubergines 0.2 9.1 thous.EUR Russia 81% 7.4 thous.EUR TOTAL: 27.1 18.4 - - -
142 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.4 MARKET VOLUME AND CONSUMPTION
4.4.1 MARKET VOLUME AND IMPORT SHARE
Kazakhstan borders with China, Uzbekistan, and Kyrgyzstan. The natural and climatic conditions of these countries make it possible to make greenhouse products for a longer time at lower prime cost. Therefore, during the off-season, that is, when there is a shortage of local fresh vegetables, the market of Kazakhstan is filled with a large number of products imported from China, Uzbekistan, and Kyrgyzstan. Market volumes of various types of products were calculated on the basis of official statistics on production in greenhouses and customs data on the volumes of imported and exported products. The volume of the greenhouse vegetables market in Kazakhstan in 2018 amounted to 219 thousand tons. Kazakhstan is a net importer of fresh greenhouse vegetables. The minimum share of imports is for cucumbers - 15% and 61% is the share of imported tomatoes. Almost 100% of the Kazakhstani market is provided by imported sweet peppers, aubergines and salad crops.
Table 50. Calculated volume of the greenhouse vegetables market in Kazakhstan in 2018 In volume terms Production Import Export Volume Import Crop thous. tons in 2018 share, % Tomatoes 61.8 65.1 20.8 106.1 61% Cucumbers 64.7 10.3 6.1 68.9 15% Sweet pepper 22.8 22.8 100% Aubergines 15.2 0.2 15 100% Salad 0.4 0.4 100% Other (including aubergines, 5.5 other types of salad, etc.) TOTAL 132 113.8 27.1 218.7 52%
Compared to Russia, the share of imports of greenhouse vegetables in Kazakhstan is approximately the same - 46% and 52%, respectively. However, the share of exported products is significantly different: Russia exports only 2% of the market (39 thousand tons), and Kazakhstan 12% (27 thousand tons). The ratio of export volume to production volume, shows a percentage of 3.6% for Russia and 20% for Kazakhstan. The average per capita production of greenhouse vegetables in the studied countries is approximately the same: 7.4 kg/year in Russia and 7.1 kg/year in Kazakhstan.
4.4.2 CONSUMPTION
Greenhouse vegetables are consumed mainly in the "off-season", that is, when there is no offer of vegetables from the open ground. The average season for Kazakhstan is no more than 4 months. Actual (estimated) consumption in the «off-season» in 2018 – see table 51 below.
Table 51. Calculated consumption of vegetables in «off-season» in Kazakhstan
Types of vegetables Actual consumption in «off-season», 2018, kg/person
Cucumbers 2.5 Tomatoes 3.8 Sweet pepper 0.8
143 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Source: calculations of «Rusmarketconsulting» Ltd. on the basis of formal statistics; population of Kazakhstan is 18.6 million persons. Kazakhstan, as well as Russia, mostly, has demand for: ✓ Medium-sized red tomatoes, 70%, and cherry tomatoes, 19%; ✓ Smooth medium and long-sized cucumbers, 61% and 23%; ✓ For green and salad crops: green onion 20%, dill and parsley 20%, 10% lettuce and almost 9% celery leaves.
Picture 55. The share of sales by types of tomatoes in HoReCa and retail in Almaty, Aktobe, Astana, Shymkent according to the audit of retail, 2016
Source: research of «EXIMAR» Kazakhstan company «Market of fresh vegetables and herbs of Kazakhstan», 2016
Picture 56. The share of sales by types of cucumbers in HoReCa and retail in Almaty, Aktobe, Astana, Shymkent according to the audit of retail, 2016
144 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Source: research of «EXIMAR» Kazakhstan company «Market of fresh vegetables and herbs of Kazakhstan», 2016
145 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.5 GROWING AREA AND GROSS COLLECTION OF PROTECTED GROUND CUT FLOWERS
The share of greenhouses, where flowers are grown, according to official statistics in Kazakhstan, is about 2% of the total area of greenhouses of agricultural enterprise + family farms and individual entrepreneurs, 19 hectares. Mostly agricultural enterprises deal with production of flowers - 82% of the area.
Picture 57. The area of greenhouses for growing of protected area flowers in Kazakhstan by categories of farms, ha.
Source: The Committee for Statistics of the Republic of Kazakhstan
Picture 58. Gross collection of flowers in Kazakhstan by categories of farms, mln. pcs
Source: The Committee for Statistics of the Republic of Kazakhstan
For comparison: in Russia there are about 170 hectares of flower greenhouses, in 2018, gross collection amounted to 263 mln. pcs. That is, the flower yield in Kazakhstan is more than 1.5 times lower.
The average per capita flower production in Russia is almost 2 times higher: 1.8 flowers/year versus 0.9 flowers/year in Kazakhstan. 146 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.6 CUT FLOWERS FOREIGN TRADE
4.6.1 IMPORT
Import of cut flowers to Kazakhstan in 2018 amounted to 32.2 mln. EUR, or 84.5 mln. pcs.
Ecuador is a main exporter of flowers (roses) to Kazakhstan, similarly to Russia.
Picture 59. Dynamics of import of freshly cut flowers to Kazakhstan, mln. EUR CC FEA code 0603 - Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared
Source: https://comtrade.un.org/data/
Picture 60. Structure of import of fresh cut flowers in Kazakhstan by countries in value terms, %
Source: https://comtrade.un.org/data/
Roses are 65% of the imports in terms of value, with 64 mln. pcs. of flowers worth 20.8 mln. EUR.
147 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Picture 61. Structure of flowers import to Kazakhstan, 2018, in value terms, %
4.6.2 EXPORT
Export of flowers from Kazakhstan in 2018 amounted to about 10 mln. EUR. 100% of the products are exported to Russia.
4.7 CUT FLOWERS MARKET VOLUME
Table 52. Cut flowers market volume in Kazakhstan, 2018 Parameters Production Import Export Total Cut flowers market volume, mln.EUR 5.3 * 32.2 10.2 27.3 Share in terms of value, 19% 118% 37% 100% % market volume * - calculated value based on average import price of 0.32 EUR per a flower multiply 16.6 mln. flowers
If we calculate the market volume without any regard to the export, the share of local production in Kazakhstan will be aronud 19%, slightly higher than in Russia.
148 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.8 THE LARGE PRODUCERS
4.8.1 THE LARGE PRODUCERS OF GREENHOUSE VEGETABLES
The total number of industrial greenhouses in Kazakhstan is about 40, farmers’ greenhouses - more than 4,000 (http://www.greenhouses.kz/news/teplica-pochemu-proizoshlo-zamedlenie-v-tempah-razvitiya-i-rosta-v-otrasli).
The top 5 largest greenhouse complexes in Russia provide 20% of the industrial production of vegetables, the top 5 in Kazakhstan - 40%.
Table 53. List of biggest operating greenhouse complexes in Kazakhstan Complex area, Production capacity, Name of the company Region ha tons Family Farm «Adelya» South-Kazakhstan region 16 8.400 LLP «BRB APK» Almaty 17 More than 7.000 LLP «Greenhouse Aktyubinsk region 9.5 about 6.000 Kazakhstan» LLP «Green Land Alatay» Almaty region 10 6.000 LLP «Toparksiye teplitsy» Karaganda region 20 4.500 LLP «KazTomat» 3.600 Pavlodar region 5 (LLP «Green House») tomatoes LLP «Teplichniye Akmola region 5 2.300 Tekhnologii Kazakhstana» TOTAL - 82.5 More than 37.000
1 Family Farm «Adelya» South-Kazakhstan region
Film greenhouse. The modern (Netherlands) equipment is installed by French company – «RICHEL Serres de France», which made it possible to computerize all the growing processes.
2 LLP «BRB APK» A part of Agricultural Holding «NAK» Almaty city Director Nurlan Adilkhan.
The largest greenhouse complex in Kazakhstan. It was built in 2016.
The project with a total value of 21.7 million EURs (8 bln. tenge) was funded by «KazAgroFinance» JSC. The area is 17 hectares.
The production capacity is 4.5 thousand tons of tomatoes and 2.5 - 3 thousand tons of cucumbers: ✓ 2 types of cucumbers - short-sized cornichons and long-sized Meva; ✓ Tomatoes – 7 - 8 varieties; ✓ Aubergines and sweet pepper.
149 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The technology by a wellknown professional Dutch company is used for the production. Equipment has been installed in the greenhouses and a number of innovative solutions have been applied: lighting, fogging, curtain system, and drip irrigation. Water treatment is also provided, which will save almost half its consumption. Bumblebees are purchased from Dutch and Israeli companies. Sources: http://greentalk.ru/topic/5965/, https://kapital.kz/business/73498/vygodno-li-soderzhat-teplicu.html
3 LLP «Greenhouse Kazakhstan» Aktobe region
The complex was built in April 2017. The investment project was funded through «KazAgroFinance» JSC in the amount of 11.4 mln. EUR (4.2 bln. tenge at the exchange rate of 2018).
The company is managed by two partners: ✓ ADM Capital - the largest international asset management structure in Kazakhstan, invested 8.6 mln. EUR in capital for development of the company; ✓ Food Ventures - a greenhouse operator from the Netherlands owns and operates 3 greenhouses in Ukraine and Georgia. It invested 1.7 mln. EUR.
Construction of the first 5 hectares, including buildings and generators (8 MW) amounted approximately to 20 mln. EUR.
According to various sources, the production capacity of the enterprise ranges from 5.700 to 6.500 tons of vegetables per year.
The products are supplied to the Kazakhstan market, the greenhouse works with large Kazakhstan, Russian and other large foreign hyper- and supermarkets chains, like «Metro», «Cash & Carry», «Fozzy Group», «Carrefour», and «Auchan». A letter of intent has been signed with «Lenta» retail chain.
The greenhouse will be expanded for 20 hectares, 12 - 15 thousand tons. In the future, the complex is going to grow tomatoes and eggplant and is going to increase the export share to 80% (for more details about the project, see below in section 4.11).
Half-closed greenhouse (http://www.kaf.kz/press_center/news_detail.php?ID=275207, http://www.greenhouses.kz/news?page=3#).
4 LLP «Green Land Alatay» Kapshagay, Almaty region Tel.: +7 (727) 244-66-41 ext. 101/107, 350-10-19 E-mail: [email protected] +7 (72153) 790-02, 406-99 www.gla.kz
There are 2 lines of 5 hectares. The first line produces: 1.200 tons of tomatoes, 1.800 tons of cucumbers and 50 tons of salad products.
All the technological solutions and equipment are imported «turnkey» from a wellknown professional company from The Netherlands.
150 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
4 LLP «Teplichniye Tekhnologii Kazakhstana» Akmola region +7 (71645) 373-93
The production started in 2010. The greenhouse complex was one of the first in Kazakhstan, construction thereof was funded by «KazAgro» state program.
2.300 tons of products with an area of around 6 hectares.
Its products are mostly cucumbers, and tomatoes. A little salad of Batavia, arugula, green onion, sorrel (capacity 2.000 pieces per day), aubergines and sweet pepper.
The greenhouse complex uses: ✓ Dutch seeds; ✓ Dutch bumblebees; ✓ Coconut substrat; ✓ Dutch climate and irrigation control system; ✓ Russian lighting. Source: http://khabar.kz/ru/news/obshchestvo/item/60453-ploshchad-teplitsy-stepnogorska-rasshiryat-do-6- gektarov, http://gavrish-journal.ru/index.php/novosti-otrasli
5 LLP «KazTomat» Pavlodar region
A 5-hectare greenhouse complex for growing 3.600 tons of tomatoes per year was built at the end of 2017. The bulk of the grown tomatoes is supplied to the border regions of Russia. The investments amounted to 10.3 mln. EUR (3.8 bln. tenge).
«KazTomat» LLP built a new 16-hectare greenhouse complex on the territory of the industrial zone of Ekibastuz, which was launched in 2019. After construction of the second stage is completed, the volume of products will be increased to 35 tons vegetables daily. The enterprise cooperates with a wellknown professional Dutch company. To build a new greenhouse, the company sold a technical solution to them, giving them the opportunity to build on their own. Although, usually “the Dutch manage the project from start to the end”. Such an opportunity will help reducing the cost of work, as metal structures are manufactured in Ekibastuz.
Both greenhouses were built near the source of cheaper electricity – «Ekibastuzskaya GRES-1» (thermal power station). Source: https://inbusiness.kz/ru/news/investicii-v-teplichnyj-biznes-nashli-pochvu-na-severe
6 LLP «Toparskiye teplitsy» 4, Sary-Arka Str., Topar settlement, Abayskiy district, Karaganda region, 100116 www.topar.kz
In total around 20 hectares of modern greenhouses.
«Toparskiye teplitsy» has created their own biological laboratory, where they produce useful insects (biological control agents). Bumblebees are imported from Europe or Israel.
151 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Vegetable production is year-round thanks to the installation of a backlight system. But the backlight system is still used partially, because lack of voltage. 55
Actual figures until 2018 inclusive, further - plans, tons/year
4.8.2 BIG FLOWER PRODUCERS
The main flower producers in Kazakhstan are the following: ✓ Greenhouses specializing in production of flowers – «Kunarly» LLP and «Green House» LLP; ✓ Greenhouses specializing in growing vegetables, as well as production of flowers; ✓ Private farms.
1. Greenhouse complex «Kurnaly» «Kurnaly» LLP U113, Promzone, Stepnogorsk, Akmola region Tel.: +7-71645-49478, 49481 E-mail: [email protected]
About 10 mln. USD was invested in the greenhouse project, built by the Dutch. 2 hectares of land, total production, according to various sources, is about 5 - 6 million pcs. of roses, up to 10% of products are exported; some tulips as well (source: «Kapital, Delovoy Ezhenedelnik» Newspaper).
There is a chain of stores «Gollandskiy Cvetochnik». 80 stores in total.
Online store is available by the link www.cvetochnik.kz.
2. LLP «Green House» 74, Koroleva Str., Akibastuz, Pavlodar region +7 (701) 910-30-10 www.ghouse.kz Director – Erlan Matymov
Green House KZ is a modern greenhouse complex for growing Dutch Red Naomi roses. The largest supplier of red roses in Kazakhstan.
55 http://www.greenhouses.kz/news?page=3, https://kapital.kz/business/67097/kazahstanskaya-teplica- snabzhaet-ovocshami-goroda-sibiri.html 152 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 The greenhouse complex is built in 2015. The area is 5 hectares and production 324 thousand rose bushes. The volume of production is 28 thousand stems per day or about 10 million pcs. per year. The investments amounted approximately 8.7 mln EUR (3.2 billion tenge at the exchange rate of 2018).
Most of the flowers, i.e. roses of Red Naomi, Avalang, Pinch Avalang varieties, are sold to Russia: Moscow, Krasnoyarsk, Novosibirsk, Omsk, Krasnodar, and Penza.
The equipment was designed and supplied by a wellknown professional Dutch company.
153 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.9 STATE SUPPORT
In 2010, the Association of Greenhouses of Kazakhstan, together with the Ministry of Agriculture of the Republic of Kazakhstan, developed rules for subsidizing greenhouse construction in the Republic of Kazakhstan. For 6 years, funds have been allocated to compensate for the costs of greenhouses, farm greenhouses and hotbeds, about 3.500 EUR per 1 hectare (1.3 mln. tenge calculated at the exchange rate for 2018).
Due to enforcement of the program for the development of the agricultural sector of Kazakhstan until 2020 by the Government of the Republic of Kazakhstan in 2013, new support mechanisms, such as investment subsidies, subsidies for insurance and loans of agricultural entities, etc. appeared. According to the development program of the agro-industrial complex of Kazakhstan until 2020 («Agrobiznes 2020»), the estimated amount of subsidies allocated for growing vegetables in greenhouses will amount to 43.8 million EUR for the period 2014 - 2020.
Since 2017, the rules for subsidizing greenhouses have changed. Funds were paid only to greenhouse farms that have production in the off-season. The costs of heating and lighting were compensated, not more than 14.5 thousand EURs per 1 hectare per year (according to the president of the Association of Greenhouses of the Republic of Kazakhstan Kanat Koshman https://foodindustry.kz/sostoyanie-razvitiya- teplichnoj-otrasli-v-rk/).
So, for the period from 2010 to 2017, through the financing of «KazAgro», greenhouse complexes were built on a total area of 139 hectares, and the investments amounted to 1.2 bln EUR.
According to the Ministry of Agriculture of the Republic of Kazakhstan, in 2017, the investment for cultivation of greenhouse vegetables (taking into account 2 lines) amounted to 6 mln. EUR (as part of the so called «hectare» subsidies).
Later, the «hectare» subsidies were abolished. Producers of greenhouse vegetables have an equal right to all other types of state support along with producers of other crops:
✓ Subsidies for mineral fertilizers, herbicides, entomophages and biological products; ✓ Loans; ✓ Subsidizing the cost of water supply services for irrigation; ✓ Participation in leasing programs; ✓ Reimbursement of a part of the costs in implementation of projects for construction and expansion of greenhouse complexes.
Only industrial greenhouses can apply for subsidies. This means in practice that those greenhouses, where plants are grown in soil, where yield is low, greenhouses in which there are no additional lighting systems and where there are no heating systems, cannot get a subsidy. 56
56 http://www.greenhouses.kz/news 154 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.10 PERSPECTIVES OF GREENHOUSE SECTOR
To replace imports with an average yield of 40 kg/m2 (average for Russian greenhouses, 2018), about 285 hectares of greenhouses are required. In 2018 import reached 113.8 thousand tons.
According to the president of the Association of Greenhouses of the Republic of Kazakhstan, Kanat Koshman, «to fully provide population of the country with vegetables in the off-season, Kazakhstan needs at least 305 hectares of industrial greenhouses, the construction of which can take 10 - 15 years» (https://foodindustry.kz/sostoyanie-razvitiya-teplichnoj-otrasli-v-rk/).
According to the «State Program for Development of the Agroindustrial Complex of the Republic of Kazakhstan for 2017 - 2021», in 2019 - 2021, 35 - 40 hectares of greenhouses should be built with a total area of 110 hectares. 57
Picture 62. Expected areas of greenhouses in Kazakhstan, hectares, progressive total
Source: State Program for the Development of the Agro-Industrial Complex of the Republic of Kazakhstan for 2017-2021
As a rule, not all investment projects are implemented, or are not fully implemented (see the list of projects in section 4.11 below). What proportion of projects will be implemented depends on the following factors: ✓ Scope of state support for the industry; ✓ Financial condition; ✓ Will of large investors to work in this industry; ✓ Availability of skilled labor.
The next section 4.11 «Investment Projects» will show that Agroholding «EKO-KULTURA» announced a large-scale project for construction of a 500-hectare greenhouse complex. It can be seen that the declared areas do not meet the industry development plans in accordance with the State Development
57 http://www.eurasiancommission.org/ru/act/prom_i_agroprom/dep_agroprom/sensitive_products/Documents/%D0 %93%D0%BE%D1%81%D1%83%D0%B4%D0%B0%D1%80%D1%81%D1%82%D0%B2%D0%B5%D0%BD% D0%BD%D0%B0%D1%8F%20%D0%BF%D1%80%D0%BE%D0%B3%D1%80%D0%B0%D0%BC%D0%BC%D 0%B0%20%D1%80%D0%B0%D0%B7%D0%B2%D0%B8%D1%82%D0%B8%D1%8F%20%D0%90%D0%9F% D0%9A%20%D0%A0%D0%B5%D1%81%D0%BF%D1%83%D0%B1%D0%BB%D0%B8%D0%BA%D0%B8%20 %D0%9A%D0%B0%D0%B7%D0%B0%D1%85%D1%81%D1%82%D0%B0%D0%BD%20%D0%BD%D0%B0% 202017%202021%20%D0%B3.pdf 155 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Program. It is explained by the fact that the program was adopted in 2017, and «EKO-KULTURA» announced its plans in 2018 - 2019.
156 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.11 INVESTMENT PROJECTS
As of April 2019, the National Holding «KazaAgro» www.kazagro.kz has approved 41 projects for the construction of industrial-type greenhouse complexes on an area of 147 hectares for financing (that is, on average one complex is 3.6 hectares). Their total cost is about 110 mln. EUR, and production capacity is 63 thousand tons of products per year (that is, almost half of the actual production in 2018). 33 projects out of 41 already have been launched.
According to the Association of Greenhouses of Kazakhstan, there are about 15 more projects on protected ground, but these are small in volume. On average, from 1 to 5 hectares with a planned volume of vegetable production from 1 to 3 thousand tons.
Table 54 below shows an overview of the biggest investment projects on growing greenhouse vegetables in Kazakhstan.
Table 54. Investment projects of greenhouse complexes in Kazakhstan Commissioni Name of the company Region Area Capacity ng New construction LLP GC «Yuzhnaya Stolica», Turkestan Up to 500 52 thousand tons (formerly South 2023 a part of «EKO-KULTURA» hectares Tomatoes Kazakhstan) Up to 80 thousand Turkish «Dal Holding Pavlodar tons Tomatoes, 2020 - 2024 Investment Company» Cucumbers Extension of existing companies Tomatoes, LLP «KazTomat» (LLP «Green Pavlodar 16 hectares Cucumbers, House») Aubergines 15 thousand tons LLP «Greenhouse Kazakhstan» Aktyubinsk 15 hectares Tomatoes, Sweet 2020 - 2021 pepper, Cucumbers LLP «Green Land Alatau» + Almaty 12 hectares Cucumbers 2020 - 2021 «EKO-KULTURA»
Thus, the geographically largest greenhouse projects are being implemented either in the south or in north-west of Kazakhstan.
The largest project is the project of Agroholding «EKO-KULTURA» on construction of a 500-hectare greenhouse complex. The total investment in the project is estimated at over 930 mln. EUR.
The complex will be built in several stages over 5 years in the Turkestan region of Kazakhstan. The first line will occupy 80 hectares, and the planned volume of production of finished goods will reach 52 thousand tons per year. The greenhouse complexes will be equipped with a computerized system that controls the full cycle of growing vegetables, regulates the heating system and cooling, light mode, drip irrigation and carbon dioxide content in the atmosphere. (https://www.agroinvestor.ru/investments/news/31767-eko-kultura-vlozhit-1-1-mlrd-v-teplichnyy-kompleks/)
In addition, in Kazakhstan, «EKO-KULTURA» has a partner with 10 hectares of greenhouses – «Green Land Alatau». Two more greenhouse complexes will be built in 2020 – 2021 with a total of 32 hectares
157 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 for growing cucumbers. In this project, «EKO-KULTURA» ensures the construction and management of the greenhouse. The volume of investments is around 108 mln. EUR). (https://www.interfax.ru/interview/672190).
For the implementation of the second phase of the project, in 2020 - 2021 about 23.4 mln. EUR (8.6 bln. tenge) will be allocated for «Greenhouse Kazakhstan» LLP. The total project cost for the construction of the half-closed greenhouse complexes will be 55.4 mln EUR (20.4 bln tenge).
In the greenhouse complex tomatoes and sweet pepper will be grown. The market for these products is the large cities in Kazakhstan, as well in Russia. The export share will be increased to 80%
When the company reaches full capacity, 12 - 15 thousand tons of vegetables will be collected in the greenhouse (https://foodindustry.kz/v-aktyubinskoj-oblasti-zapustili-teplichnyj-kompleks-pyatogo-pokoleniya/).
The cost of the construction of net stages of 5 hectares of greenhouses, including generators, will be about 15 mln. EUR for each.
Table 55. Diagram of the project on creation/extension of greenhouse complexes in Kazakhstan Volume of Amount of the Number of Total area, production, project, project hectare thous.tons thous.tenge Greenhouses 17 54 28.6 104 of them built 7 16 8.3 29 to be build 10 38 20.4 75 Perspective projects 10 41 17.5 49 for 2019 / 2020 Source: The Association of Greenhouses of Kazakhstan http://www.greenhouses.kz/news/teplica-pochemu- proizoshlo-zamedlenie-v-tempah-razvitiya-i-rosta-v-otrasli dated 26.03.2019
The Turkish company «Dal Holding Investment Company» is going to build a greenhouse complex in Kazakstan worth 170 mln. EUR (200 mln. USD) in Pavlodar region. The Turkish party is interested in the opportunity to use cheaper electricity from «Ekibastuzskaya GRES-1». If the project is included in industrialization zone of the region, then the Turkish company will be able to receive additional preferences, for example, the company can be exempted from corporate income and land taxes for ten years (https://inbusiness.kz/ru/last/v-pavlodarskoj-oblasti-tureckaya-kompaniya-planiruet-postroit-teplicu).
158 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.12 SPECIFIC FEATURES AND PROBLEMS OF THE INDUSTRY
4.12.1 SPECIFIC FEATURES OF THE INDUSTRY
A feature of agriculture in Kazakhstan is the small commodity production, that is, a significant proportion of producers, including growers of vegetables in greenhouses, are small farms. Thus, family farms account for 49% of the production of greenhouse vegetables (the average greenhouse size of a family farm is about 0.15 hectares). This makes it difficult to introduce modern production technologies and hinders faster and better development of the industry.
As already noted, National Holding «KazAgro» approved 41 projects for construction of industrial-type greenhouse complexes on an area of 147 hectares for financing. That is, the average size of the greenhouse is 3.6 hectares.
For comparison: in Russia, on average, a project or stage of a greenhouse project involves organization of a greenhouse complex of 10 - 20 hectares.
Production of greenhouse vegetables, i.e.:
✓ 51% industrial production; ✓ 90% production on family farms; ✓ 100% production on private farms.
The Kazakh greenhouse sector is concentrated in three southern regions:
✓ Almaty region; ✓ Turkestan region; ✓ Shymkent (regional center of Turkestan region).
These regions are the most populated territories of Kazakhstan, 37% of the country’s population is concentrated in these three regions.
Picture 63. Regions of Kazakhstan
159 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Comparing the greenhouse business conditions in Kazakhstan, Russia, and Uzbekistan - Kazakhstan has more attractive business conditions than in Russia. But less attractive than in Uzbekistan.
Therefore, Russian investor, Agricultural Holding «EKO-KULTURA», the largest producer of vegetables, is going to arrange greenhouse complexes abroad: in Kazakhstan and Uzbekistan. According to the president of the enterprise, Aleksandr Rudakov, «Uzbekistan has a good investment climate: great state support, a minimum of bureaucracy, long tax breaks for investors, good weather conditions and relatively cheap staff».
The president of the «National Fruit and Vegetable Union» Sergey Korolev confirms the country’s attractiveness for organizing greenhouses: if in Russia 1 hectares of greenhouses costs 3 - 3.4 mln. EUR, in Uzbekistan these cost might be a third lower.
According to Rudakov, 40% of production will go to Russia, 60% - to China, South Korea and Japan, Middle East and Europe: these are huge markets with good demand for organic vegetables. In China and other Asian countries there is a large domestic production of fruits and vegetables, but the quality is low, vegetable growers use chemicals, which is why there is a need for premium environmentally friendly products. (https://www.vedomosti.ru/business/articles/2018/10/24/784495-rossiiskii-proizvoditel- ovoschei#galleries%2F140737494230406%2Fnormal%2F1).
The attractiveness of Kazakhstan for an investor is, according some experts:
✓ Warmer climate in Kazakhstan than in Russia; ✓ «There is no such bureaucracy in Kazakhstan as in Russia, it’s easier to agree»; ✓ Government support for the industry.
More simple customs clearance procedures are the country’s advantage to do business for Dutch companies, as for developers, equipment suppliers (https://agrosektor.kz/agrotema-online/teplichnyj- biznes-razvitie-prodolzhaetsya.html).
The table below compares production costs in Kazakhstan and Uzbekistan. The competitive advantages of Uzbekistan are visible.
Table 56. Comparison of production costs in Russia, Kazakhstan and Uzbekistan, tenge 10 tenge = 1.814 rubles = 0.025 EUR Russia* Kazakhstan Uzbekistan Electricity, kW/h 25 28 8 Water, m3 32 50 15 Gas, m3 22 36 11 Water sewage, m3 136 205 10,4 Average salary, 2018, USD/month. 692 474** 218*** Source: Presentation of the president of the «Union of Grain Processors of Kazakhstan» Evgeniy Gan at the II International Conference «Mill 2014», September 2018 * - based on the data of http://ect-center.com/blog/business-in-russia ** - based on the data of https://banki24.by/news/3113-sravnivaem-zarabotnaya-plata-v *** - https://eadaily.com/ru/news/2019/02/27/tak-zhit-nelzya-v-uzbekistane-zarplata-deputata-186-ministra-205
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4.12.2 CHALLENGES IN THE GREENHOUSE SECTOR
One of the challenges in Kazakhstan is the relatively small scale of greenhouses in comparisoson with Russia, as well as the use of insufficiently intensive and modern technologies in many projects. This has a negative impact on the yield and competitiveness of products.
Another issue refers to the fact that the country does not have its own production of components, equipment and materials for greenhouses - almost 100% is imported.
Another challenge is the lack of a sufficient number of highly qualified specialists. In most greenhouse complexes, top managers are foreigners. Agricultural universities of Kazakhstan, like Russia, do not really graduate specialists for modern greenhouses. Training of local specialists who can work in innovative greenhouses with sophisticated equipment and modern equipment is performed by representatives of foreign companies supplying equipment, technology, etc.
4.13 SWOT–ANALYSIS OF THE GREENHOUSE SECTOR
Table 57. SWOT – analysis of the greenhouse sector in Kazakhstan Internal factors Strengths Weaknesses ✓ State support of the sector and preferential tax ✓ Low share of big industrial producers in regimes for agricultural producers. production of greenhouse vegetables. ✓ Favorable (compared with the main regions in ✓ Low proportion of farms using modern high- Russia) light zones. intensity technologies. ✓ High import dependence of the industry on materials, equipment - currency risks. ✓ Lack of qualified personnel in the industry.
External factors Opportunities Threats ✓ Development of import substitution through the ✓ Increased competition with imported industrial production of greenhouse vegetables. products. ✓ Realization of the export potential of the ✓ Market saturation due to increased local industry, mainly to Russia. production followed by lower prices and profitability.
161 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 4.14 INTERMEDIATE CONCLUSIONS
1 In 2018, the volume of the greenhouse vegetables market in Kazakhstan amounted to 219 thousand tons (which is comparable to the production volume of the top 5 Russian greenhouses).
2 Kazakhstan is a net importer of fresh greenhouse vegetables. The average import share for greenhouse vegetables is 52%.
The minimum proportion for cucumbers is 15% and 61% is the share of imported tomatoes. Almost 100% of the Kazakhstani market is provided by imported peppers, aubergines, and salad crops.
The main competition is observed with cheaper products from Uzbekistan and China.
Exports are 4 times less than imports and almost 100% of production goes to Russia.
3 In the next 3 - 4 years, about 40 - 50 hectares of greenhouses will be built in Kazakhstan.
This is in addition to the project of Russian Agricultural Holding “EKO-Kultura”, which announced the construction of a 500-hectare greenhouse complex. Interviewed industry experts express doubt about the full implementation of the announced plans for the following reasons (in particular regarding the foreseen projects of «EKO-KULTURA» in Uzbekistan and China):
• Uzbekistan + Kazakhstan ✓ Lack of sufficient number of specialists; ✓ Lack of sufficient water of high quality; ✓ Higher pathogenic load - the climate allows all pests (in particular greenhouse) to survive in the natural environment.
• China ✓ Chinese part took over the financing of the project, in this case, Agricultural Holding «EKO-KULTURA» «is waiting for the financial apsect».
Nevertheless, the project of Russian investors in Kazakhstan has already begun on a small scale and preparations are being made for scaling it up.
4 Kazakhstan has more attractive business conditions than Russia (when comparing production costs). But less attractive than those in Uzbekistan.
162 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 5 PRODUCT CATEGORIES
The bottleneck for the development of the greenhouse sector in Kazakhstan is a high dependency on imports. Virtually all required equipment, components, materials are imported from The Netherlands, Spain, Israel, Turkey and Russia.
During some meetings of Eurasian Economic Commission (regulates the activity of Eurasian Economic Union) the delegation from Kazakhstan offered to abolish a state duty on imported greenhouse equipment (to Eurasian Economic Union 58). But the producers of greenhouse structure and equipment in Russia and Belorussia insisted on Kazakhstan buying the products from them but not abroad. As a result, the state duty did not be abolished. Although from all required equipment Russia and Belorussia produce only metal structure, irrigation systems, substrate and climate computers (from the speech of the president of the Greenhouse Association of Kazakhstan Kanat Koshman on the Horticultural Forum https://foodindustry.kz/sostoyanie-razvitiya-teplichnoj-otrasli-v-rk/).
5.1 TYPES AND CONSTRUCTION COST OF GREENHOUSES
In northern, central and western regions of Kazakhstan with more severe climate (temperature in winter to minus 45оС) double glazing and polycarbonate 8-10 mm thick is used for commercial greenhouses, in southern regions – mainly single- and double-layered film coating.
The construction cost of 1 hectare of such greenhouses depends on materials and components using in construction:
✓ High-tech commercial year-round greenhouses framed to resist low temperature. By the system VENLO. With the use of double grazing the turn-key construction cost can reach 200 EUR/m2. The construction of such greenhouses possibly is carried out close to heat or energy source (TEC, GRES or gas). The planned yield by the use of such technologies is 40 - 45 kg/m2 without supplementary lighting, to 70 kg/m2 with additional lighting, in case production is organized twice a 1 year.
✓ Multispan greenhouses up to 5-6 m high, with polycarbonate coating — the construction cost is about 130 EUR/m2. The planned yield is 36 kg/m2, at if production is organized twice a 1 year.
✓ Multispan greenhouses with double-layered film coating with warm air ventilation. By Spanish technology - to 100 EUR/m2, by Turkish technology — about 50 EUR/m2 turn-key. The planned yield is 36 kg/m2, in case production is organized twice a 1 year. These greenhouses are suited more for south-eastern, south-western and southern regions of Kazakhstan with softer climate.
The modern plastic greenhouses are high-tech and relatively expensive, with automation and supplementary lighting.
✓ Farm greenhouses, in which the products can be grown from spring to autumn.
58 Custom Union of Eurasian Economic Union includes Russia, Armenia, Kazakhstan, Belarus, Kyrgyzstan. 163 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Source: https://foodindustry.kz/sostoyanie-razvitiya-teplichnoj-otrasli-v-rk/ 5.2 PROPAGATION MATERIAL
VEGETABLE SEEDS
According to experts, the imported products dominate in the segment «Vegetable Seeds» for the commercial greenhouses in Kazakhstan, as well as in Russia (to a greater degree): the share of imports is near to 100% (including the suppliers from Russia).
The market capacity of vegetable seeds for the commercial greenhouses in Kazakhstan is about 3 mln. EUR.
According to estimates of two agronomists from LLP «KazAgronom» (3 hectares) and LLP «Teplichnye Tekhnologii Kazahstana» (5 hectares) (2018), all vegetable seeds are bought from The Netherlands. 59 There are however also some supplies from Russia to other greenhouse complexes.
Some producers of seeds used in Kazakhstan:
1 Official representation of Russian company «GAVRISH» in Kazakhstan Kazakhstan, Almaty, mcr. dstr. Aksay, 3а, 62 Phone: +7 (705) 411-11-60
2 LLP «Syngenta Kazakhstan» 050059, Almaty, Al-Farabi venue, 5, business centre «Nurly Tau», building 2а, 3 floor Phone: +7 (727) 277-78-11, 277 78 16 E-mail: [email protected] www.syngenta.kz
FLOWER BULBS AND ROSE SEEDLINGS
There are hardly any data on flower bulbs, corms and rhizomes production in Kazakhstan. There are official data on external trade. To analyse the external trade the CC FEA codes are used: • 060110 - flower bulbs, tubers, tuberous roots, corms and rhizomes dormant,; 060240 - roses, grafted or unvaccinated.
The table 58 shows that the main part of bulbs and grafted roses is imported from The Netherlands.
Table 58. Imports of flower bulbs, corms and rhizomes, including tulips, and grafted roses to Kazakhstan in 2018, thousand EUR Bulbs, corms and rhizomes Grafted roses 1.056 Imports 569 including tulips 897 Exports 4 7 50% Share of the Netherlands, % 80% (24% Italy)
59 https://weproject.media/articles/detail/kak-vyrashchivayut-ovoshchi-v-kruglogodichnykh-teplitsakh- kazakhstana0/ 164 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Source: FCS RF
SOFT FRUIT NURSERY MATERIAL
In Kazakhstan strawberries are hardly grown under greenhouse condition, only in open field (18 hectares in agricultural enterprises 60). There is also hardly any demand for seedlings. The market of strawberry seedlings was introduced in the research «FRUIT SECTOR IN THE RUSSIAN FEDERATION, KAZAKHSTAN AND BELARUS», 2018.
5.3 GREENHOUSE CONSTRUCTION
GREENHOUSE TURNKEY PROJECTS
Mainly wellknown professional companies from The Netherlands work in Kazakhstan as well as in Russia.
Regarding industrial glass greenhouses several Dutch leaders are represented on the Kazakhstan market.
The Russian NPF «FITO» operates in Kazakhstan as well (the company «FITO» carries out the greenhouse «turnkey» projects. Ltd «LIS» producesfor example equipment for water management and automatization. Approximately 8 years ago, a project on 10 hectares in the Aktobe region was implemented. Currently, a project is being implemented in the same area of «Green Capital Kazakhstan» LLP, a semiclosed type greenhouse of 20 hectares. 61
Film greenhouses are mainly concentrated in the south of Kazakhstan, in the Turkestan region. The main company that designs and supplies (Netherlands) equipment for these greenhouses is the French «Richel» www.richel-group.ru.
STEEL AND ALUMINIUM STRUCTURES
The metal structures for the commercial greenhouses in Kazakhstan are imported. There are some local producers of metal structures, but their products are suitable only for small farm greenhouses with film and polycarbonate coating. Nevertheless, a brief description of these producers is provided below.
✓ LLP «Zero Max Kz» — the first plant for production of galvanized pipes and components for greenhouses in Kazakhstan
160050, South Kazakhstan, Shymkent, Abajskij district, mcr. dstr. Asar-2 Phone: +7 (7252) 95-58-40, (778) 165-64-24 https://19982-kz.all.biz [email protected], [email protected]
60 Digest «Total yield of agricultural crops in the Republic of Kazakhstan, 2018» 61 https://www.zakon.kz/4964532-v-aktobe-otkryta-teplitsa-pyatogo.html 165 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The company started its activities in 2011.The production equipment is of the South Korean company «Korea greenhouse CO.LTD», which was installed using the latest Japanese technology. It also provides services in turn-key assembly and installation of greenhouses, technical support and control, consulting in usage of greenhouse equipment, in agrotechnical and agrochemical activities and marketing programs. The heating, drip irrigation and automated ventilation systems and insect screens are supplied as a set.
The structure produced by «Zero Max» is designed for a farm greenhouse and for the southern climate. It is unsuitable for the northern and western regions of the country (https://foodindustry.kz/vygodno-li- postroit-maluyu-dachnuyu-teplitsu/).
✓ In 2017 in Almaty region, village Kokozek, one more plant for production of greenhouse structures was opened.
The technology of the structure was bought in The Netherlands. The greenhouse complex was built by private investors with a total investment of 5,4 mln. EUR (at the exchange rate of 2018) (https://www.inform.kz/ru/teplicy-po-gollandskoy-tehnologii-stroyat-v-almatinskoy-oblasti_a3224587).
According to experts, the average price of 1 m2 of metal structure for greenhouse at order in the Netherlands is 20 - 22 EUR. Considering, the customs clearance and transportation the price increases to 32 - 34 EUR/m2. Over the last 5 years about 10 hectares of commercial glass greenhouses are launched annually in Kazakhstan. Consequently, the market capacity of metal structures for glass greenhouses is about 2,2 mln. EUR per year. Considering, the modern high plastic greenhouses, the market capacity can be several times higher.
GLASS
Glass for greenhouses is imported, mainly from Russia – to 80%. About 20% is imported from other countries, like from Belarus, China, etc.
There is virtually no flat glass production in Kazakhstan: the local production is about 530 tons whereas the imports is more than 110 thousand tons. 62
Over the last couple of years, the building of the plant for flat glass production in Kazakhstan is discussed actively. LLP «InturServisPuls» intends to build the plant in Pavlodar region to 2021. The project has been discussed during 4 years and it is far from clear when it will be completed. The project cost is 123 mln. EUR, the design capacity is 140 thousand tons per year, or 10,5 – 11 mln. m2 of glass. 63
From the Russian companies, the glass company «SIMVOL» www.firmasimvol.ru is exporting glass to Kazakhstan. The market capacity is about 1 mln. EUR (10 hectares of new greenhouses + replacement about 2% of the total area, the average price of 1 m2 of strengthened glass is 7 EUR).
62 Research «Production of flat glass in Kazakhstan», prepared by the National chamber of entrepreneurs of the Republic of Kazakhstan «Atameken» - https://atameken.kz/uploads/content/files 63 https://yandex.ru/turbo?text=https%3A%2F%2Fkursiv.kz%2Fnews%2Fvlast-i-biznes%2F2019-08%2Fproekt- stekolnogo-zavoda-v-pavlodare-mogut-isklyuchit-iz-karty&d=1 166 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
5.4 HEATING & POWER EQUIPMENT
COMBINED HEATING & POWER SYSTEMS, CO2 ENRICHMENT, BOILERS FOR HEATING, WATER BASINS, ELECTRONIC SYSTEMS
The analysis of the existing greenhouses and investment projects suggests that the share of the greenhouse projects which offer the building of the own energy centre is small, no more than 20%.
Table 59. Data on energy source for large producers/projects Producer/project Data on energy source 1 «Green Land Alatau» The cost construction of the following lines by 5 hectares of 2 LLP «Greenhouse Kazakhstan» greenhouses, including generators, will be about 15 mln. EUR per each line. The Turkish company is interested in the possibility to use Turkish Dal Holding Investment 3 lower cost electricity from «Ekibastuzskaya GRES-1» and Company want to avoid problems with water. LLP «BRB APK», included in 4 the agroholding «NАК» The cost construction of the first 5 hectares including 5 LLP «Greenhouse Kazakhstan» buildings and generators (8 Mwatt) was about 20 mln. EUR. LLP «Teplichnye Tekhnologii 6 Kazahstana» Both greenhouses are built close to the source of lower cost 7 LLP «KazTomat» electricity – «Ekibastuzskaya GRES-1». 8 LLP «Toparskie teplicy» 9-10 2 flower greenhouses
On average about 10 hectares of greenhouses are launched annually; we accept that the energy centre is supposed only for 20%, i.e. 2 hectares. So, the market capacity of power equipment is no more than 4 mln. EUR per year.
Table 60. Market capacity of power equipment for commercial greenhouses in Kazakhstan
Average demand Market capacity Market capacity in volume on average 1 hecatre of greenhouses with 3 - 4,4 Mwatt terms, Mwatt per year additional lighting requires 1,5 - 2,2 Mwatt Market capacity in value 1 Mwatt costs about 900 EUR 2,7 - 4 mln. EUR terms, mln. EUR
In Kazakhstan, as well as in Russia, there are hardly no local producers of power equipment. This segment is presented by the foreign producers – the world leaders are from Austria, Germany and USA.
167 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 5.5 СLIMATE CONTROL AND (LED) LIGHTING
VENTILATION, COOLING AND SCREENING SYSTEMS
Equipment in the segment «Climate Control» is imported, mainly from European countries:
✓ Ventilation — «wellknown professional Dutch companies», «ZIEHL-ABEGG»; ✓ Cooling and screening systems — «Ludvig Svensson», «Phormium».
The South Korean producers also offer their products in Kazakhstan, for example the company «YUK- IL CO.», Ltd; a supplier of cooling and screening systems.
LIGHTING SYSTEMS
The subsegment «lighting systems» is presented by imported products, mainly Russian and European producers. For example, Russian sodium lamps «Reflux» (http://www.reflux.ru/catalog/glighting/) are used in the greenhouse of LLP «Teplichnye Tekhnologii Kazahstana».
There is hardly any local production of lamps for greenhouses in Kazakhstan.
There is only one producer of lighting systems – ТОО «Production company «Elektroservis» 050061, Almaty, Utegen-Batyr str., 7-а, 2nd floor E-mail: [email protected] Phone: +7 (727) 276-77-77, 396-70-70, 243-75-75 www.e-s.kz
As in Russia, up to 80% of greenhouses use Russian 600 W lamps, new greenhouse complexes that have been introduced in recent years (approximately from 2014 to the present) use mainly 1.000 W lamps. Russian lamps are mainly supplied by «Reflux». Of the European imports, mainly wellknown professional Dutch suppliers and a bit of lamps by «Osram» (Germany). According to experts the share of European lamps is about 15%, about 19 thousand lamps per year (taking into account the annual commissioning of 10 hectares and replacement in existing greenhouse complexes).
According to representatives of a number of wellknown leading lighting companies from The Netherlands, quite a share of high-tech imported lighting systems by Kazakhstan finds its origin in The Netherlands.
Table 61. Calculation of market volume of lamps for industrial greenhouses in Kazakhstan Indicators Value 70 hectares Greenhouse area, hectares (about 10 haectares are launched annually + lamp replacement 1 time per 3 years, 180 ha / 3) Lamps per 1 hectare, pieces 1.500 Market capacity of lamps, thousand 105 lamps Price of 1 lamp, EUR 27 Market capacity of lamps, mln. EUR 2,8 168 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
169 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 62. Calculation of market volume of lighting systems for greenhouses in Kazakhstan Indicators Value 40 hectares Greenhouse area, hectares (about 10 hectares are launched annually + replacement 1 time per 6 years, 180 ha / 6) Lighting systems per 1 hectare, pieces 1.500 Market capacity of lighting systems, thousand 60 pieces Price of 1 lighting systems, EUR 75 Market capacity of lighting systems, mln. EUR 4,5
The calculation above is a modest evaluation of the market capacity, because only the demand in the lamps and lighting systems for the commercial glass greenhouses is taken into account.
In future to optimize the expenditures for electricity the application of energy-saving technologies like LED is discussed. On the other hand, the application of this technology will increase the initial project cost (from the speech of the president of the Greenhouse Association of Kazakhstan Kanat Koshman on the Horticultural Forum https://foodindustry.kz/sostoyanie-razvitiya-teplichnoj-otrasli-v-rk/).
5.6 INPUT FOR CROP GROWING
SUBSTRATE
The substrate in the greenhouses in Kazakhstan is mainly imported from Russia and European countries.
In 2018 around 942 tons of substrate from mineral cotton were imported to Kazakhstan. This volume of substrate is enough for about 188 hectares (taking into account if production is organized once a 1 year).
The share of Russian substrate in the imports to Kazakhstan in value terms is 52%, in volume terms — 62%.
There is hardly any production of substrate in Kazakhstan and there is hardly any export. The volume of import is equal to the market capacity – this means 943 tons priced at 1.360 thous. EUR.
Table 63. Imports - market capacity of substrate from mineral cotton in Kazakhstan in 2018 The share in The share in Imports thous. EUR tons value terms volume terms From Russia 714 588 52% 62% From other countries 643 355 48% 38% Including from Poland 531 310 39% 33% Total: 1.357 943 100% 100% Reference source: data base analysis http://kgd.gov.kz/ru/exp_trade_files, http://stat.customs.ru, CC FEA code 6806100001
170 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Picture 64. Dynamics of import of substrate to Kazakhstan during 2014-2018, except the countries of Custom Union
Reference source: data base analysis http://kgd.gov.kz/ru/exp_trade_files, CC FEA code 6806100001
Among other supplying countries the large share is occupied by Poland — from 41% to 99% during 2014 -2 018, the company «ROCKWOOL group». There is a representative office in Kazakhstan.
According to the representative of the company «ROCKWOOL», Kazakhstan is the second largest market for substrate after Russia.
The greenhouses «Green Land Alatau», «BRB APK», «Greenhouse Kazakhstan», «Green Capital Kazakhstan» and others work with substrate «Grodan» (https://agrosektor.kz/agrotema-online/teplichnyj- biznes-razvitie-prodolzhaetsya.html).
FERTILIZERS
Nitrogenous and phosphorous fertilizers are mainly produced in Kazakhstan. Kazakh producers of nitrogenous fertilizers are mainly oriented to the domestic market. As for phosphorous fertilizers the producers cover 100% of the domestic demand. Potassic and compound fertilizers are almost not produced; their share of import reaches 100%. 64
The growth of the market capacity is provided by the increase of local production in 2012 - 2017 – from 230 to 530 thousand tons or from 30 to 46 mln. EUR. The volume of export in 2012 - 2017 was about 200 thousand tons priced at 60 mln. EUR. The volume of import has increased from 377 to 394 thousand tons or 82 mln. EUR.
The market capacity of mineral fertilizers in Kazakhstan in 2017 was 461 thousand tons or 196 mln. EUR. The share of import was 33% in value terms and 70% in volume terms. 65
64 https://hghltd.yandex.net/yandbtm?lang=ru&fmode=inject&tm=1531904199&tld=com&la=1531577344&text=http
65 The market capacity is reported for 2017 because there are no data on the volume of mineral fertilizer production in 2018. 171 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The volume of import in 2018 was 395 thousand tons priced at 82 mln. EUR. 66
The largest supplier of mineral fertilizers to Kazakhstan is the Russian Federation, 68% of total import in value terms - 55,4 mln. EUR, 76% in volume terms – 300 thousand tons.
The share of European countries in the import of mineral fertilizers to Kazakhstan is insignificant. For example, 751 tons of fertilizers priced at 775 thousand EUR were imported from the Netherlands in 2018 (1% of the total imports), mainly compound ones.
A significant volume of fertilizers is imported from Israel: 14,4 thousand tons priced at 8 mln. EUR (4% respectively 10% of the total imports).
The market capacity of the fertilizers for the commercial greenhouses in Kazakhstan is about 735 thousand EUR.
Kazakh producers:
The largest producers of mineral fertilizers: ✓ LLP «KAZAZOT» www.kazazot.kz The large producer of ammonia and ammonium nitrate.
✓ LLP «EUROCHEM-KARATAU» www.eurochemgroup.com It is included into JSC «Mineral and Chemical Company «EuroChem», the large producer of mineral fertilizers, makes the top three of European and the top ten of the world largest fertilizer producers.
050059, Almaty, Bostandykskij district, Al-Farabi avenue, 17/1, Multifunctional complex «Nurly-tau», building 5b, office 2 Phone: +7 (727) 311-51-52
✓ LLP «KosAgroKommerc» www.kosagro.kz One of the largest suppliers and producers of potassic fertilizers in Kazakhstan. It is more than 20 years active on the market. The enterprise is a distributor and partner of many wellknown world producers of fertilizers.
050031, Almaty, mcr. dstr. Aksaj – 3а, 62а, office 32 Phone: +7 (727) 301-34-19, 301-35-30 Е-mail: [email protected] There are the representative offices in Shymkent and Kostanaj.
Russian producers of fertilizers are presented widely in Kazakhstan: ✓ «URALCHIM» www.uralchim.ru, there is a representative office in Kostanaj, ✓ «Bujskij Himicheskij Zavod» www.bhz.ru ✓ «Uralkali» www.uralkali.com, ✓ «PhosAgro» www.phosagro.ru
66 Source: data analysis https://comtrade.un.org/data/ by CC FEA codes 3102, 3103, 3104, 3105
172 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Foreign producers:
1 Norwegian «Yara International ASA» www.yara.com There is no representative office in Kazakhstan.
2 «Kemira GrowHow Oyj», Finland www.kemira.com There is no representative office in Kazakhstan.
As in Russia, Kazakh greenhouses work with the producers of fertilizers, pesticides, seeds through the distributors. One example is
✓ LLP «ALEM AGRO HOLDING» It is since 2004 active on the market. Almaty, avenue Abylaj han, 135, business center «White Tower» Phone: +7 (727) 266-39-81, 266-39-82 E-mail: [email protected] www.alemagro.kz
The company offers among others seeds, pesticides, micro fertilizers. It has representative offices in all regions of Kazakhstan.The company is an official distributor of «Bayer Crop Science» www.bayer.com, «BASF» www.basf.kz, «DuPont» www.dupont.kz, «Valagro» www.valagro.com en «Avgust» www.avgust.kz
5.7 GREENHOUSE MATERIAL
FLOOR COVERS AND MATS, ROPES, YARNS, CLIPS, CRATES, CONTAINERS
There are many companies offering different materials in this segment. These are mainly not producers but companies offering the wide range of materials and products. There are many companies and for that reason it is difficult to select leaders.
Foreign companies working on the Kazakh market are:
✓ «Several wellknown professional companies from The Netherlands» These Dutch companies offer a wide range of consumable materials and equipment and/or specialists in design and production of trays for plant growing in greenhouses.
Some active Kazakh companies are:
✓ LLP «Kaz Poliv» Almaty, avenue Seifullinа, 458/1, business centre «Majsat», office 111 Phone: +7 (7272) 790-279, +7 (705) 111-58-62 [email protected] www.kazpoliv.com
173 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 It offers film, twine, equipment for agriculture and greenhouses, drip irrigation systems, etc.
✓ LLP «Baro-Max» www.baromax.kz This company is an official distributor of some foreign companies, such as: «Vatan-Plastik» (Turkey), «Heungil Technology ltd.» (South Korea), «SAB S.p.A.» (Italy), «Beijing-Agro» Ltd (China). It offers: ✓ Components for greenhouses; ✓ Polyethylene film for greenhouses; ✓ Drip irrigation systems.
There are some Internet-shops in Kazakhstan as well, which offers different equipment and materials for greenhouses, for example, www.kz.all.biz.
TROLLEYS, PLATFORMS
Ltd «Walzmatic» www.walzmatic.com Office in Moscow (Russia). There is no office in Kazakhstan.
Leader in the supply of logistic equipment for the greenhouses in Russia. Works with the greenhouses in Kazakhstan.
5.8 AUTOMATIZATION
CONTROL CLIMATE, ENERGY, WATER AND DATA MANAGEMENT, (PROJECT) MANAGEMENT, LABOUR
The same companies operate in Kazakhstan as well in Russia: ✓ Several wellknown professional companies from the Netherlands; ✓ Russian NPF «FITO».
A large market share is occupied by companies from The Netherlands.
Also in Kazakhstan there is a dealer in Central Asia of the Russian Research and Production Company NPO «Kaskad» — LLP «AJC – Asia gas Company» Almaty, Makataeva str., 117, build. «А», office 5013 Phone: +7 (727) 328-28-80, +7 (778) 746-06-90 [email protected] www.cascad-co2.ru
The Russian Research and Production Company «Kaskad» designs, produces, assembles and services automatic systems in the field of:
✓ СО2 enrichment; ✓ Drip irrigation; ✓ Dissolution and irrigation units;
174 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ✓ Microclimate control.
5.9 CROP PROTECTION
BIOLOGICAL CONTROL AGENTS, INSECT TRAPS, INSECT NETTING
In Kazakhstan biological methods as plant protection is mainly used on the field to protect cotton. For example, LLP «Biofabrika-Zhetysaj», Turkestan region, is specialized in the production of entomophages to protect cotton. The plant capacity allows protecting more than 50 thousand hectares of planting.
According to engineer of LLP «Agroshield» (the large producer of entomophages for open field and greenhouse conditions) Olzhas Manel, the capacity of the Kazakh market of entomophages has grown over the last years. Now the market capacity is about 8 - 9 mln. EUR. In 2017 the growth of the market was 7,6%.
The advantages of local products are:
✓ Lower cost — on average 30 - 50% cheaper than foreign ones; ✓ The waiting period of the product supply is 3 - 4 times shorter. 67
The main supplier of imported products in 2018 was Russia, 419 thousand EUR in value terms, 80% (see table below). But in 2017 only 0,1 ton was imported priced at 49 thousand EUR. There were no supplies in 2016.
If imports are seen only from countries except the counties of the Custom Union, then the top three has not changed over the last years: Netherlands, Belgium, Israel (the positions have changed). In 2018 Israel was a leader, 0,8 tons priced at 86 thousand EUR.
Table 64. Volume of import of biological control agents to Kazakhstan in 2018 Number, mln. Share in value Country Weight, tons Cost, thous. EUR spieses terms Belgium 0,4 0,1 thousand 7 1% Israel 0,8 68,9 86 17% Netherlands 0,1 2,5 thousand 2 0,4% Ukraine 0,1 5,3 7 1% Russia 4,4 12 thousand 419 80% TOTAL: 5,8 74,2 521 100% Reference source: data base analysis http://kgd.gov.kz/ru/exp_trade_files, http://stat.customs.ru, CC FEA code 0106490009
The share of the Netherlands was high in 2017: 67% in value terms of the volume of import (except the countries of the Custom Union), 302 thousand EUR, 80% in volume terms, 7,1 tons (8,6 bln. species).
67 https://www.agroxxi.ru/gazeta-zaschita-rastenii/zrast/v-kazahstane-rastet-rynok-yentomofagov-kak-alternativa- pesticidam.html 175 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Picture 65. Dynamics of import of biological control agents to Kazakhstan during 2014-2018, except the Custom Union counties
Reference source: data base analysis http://kgd.gov.kz/ru/exp_trade_files, CC FEA code 0106490009
The share of greenhouses, using the biological control agents, has grown from year to year. Now it is more than 50% of all greenhouses. According to experts, the market capacity of the entomophages for the greenhouses is about 400 thousand EUR.
One of the large producers of the entomophages is LLP «Agroshield». In 2017 a project received the joint grant of the Government of Kazakhstan and the World Bank «Fostering Productive Innovation». The grant receiver created an insectarium, tested and developed the technologies of large-scale production of biological control agents, did marketing research and invited the experts in the field of entomology from different counties.
Now a days 7 species of entomophages and bumblebees are produced at the biofactory (for open field and greenhouse conditions). The innovation technologies are used to produce insects and acaridae. The production is automated and can be controled remotely. Since the beginning of the project the products for the total area of more than 20 hectares were sold. The company plans to enter a world market and encourage the production of environmentally safe products (https://www.agroxxi.ru/gazeta- zaschita-rastenii/zrast/v-kazahstane-rastet-rynok-yentomofagov-kak-alternativa-pesticidam.html).
Almaty, Almalinskij district, Abaya avenue, Gagarina str., 143/93
The distributors of the foreign producers work in Kazakhstan, for example:
✓ A distributor of a wellknown professional and leading company from The Netherlands is «EAST- WEST» LLC
050016, Almaty, Kunaeva str., 21 б, office 55 Phone: +7 (727) 244-66-77 E-mail: [email protected]
✓ LLP KAZ BIO PROTECT Almaty, Raiymbeka str., 312 176 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Phone: +7 (705) 238-53-95, +7 (701) 675-52-17 www.kazbioprotect.kz
The distributor of: • Israel international company BioBee (bumblebees and entomophages, technical support and training IPM); • Russian company LTD PO «SIBBIOFARM» (biofungicides and entomophages); • Russian company LTD «Bionovatik» (bumblebees and entomophages); • Insect traps.
LTD «AGROSERVIS» This company supplies entomophages, insect traps and pesticides and offers also services for biological plants protection in greenhouses, technological and engineering support for the vegetable and flower production.
LLP «BIOGRIN TARIM» Almaty, Raiymbeka str., 415/1 Phone: +7 (747) 966-37-71 The company was established in 2015 in two countries Turkey (Antalya) and Kazakhstan (Almaty, Shymkent). In 2018 an office in Ukraine was opened. It is one of the large suppliers of fertilizers, pheromones and traps. The enterprice in Kazakhstan is also a large producer of bumblebees. It carries out consultations, seminars and trainings as well.
PESTICIDES
Official statistics does not give data about the overall production of pesticides (the plant protection agents) in Kazakhstan. According to the Executive Director of the «Association of Kazakh Producers of Crop Protection Agents» Boris Tsoktoev, the production of pesticides has increased 9,5 times since 2010, from 0,9 thousand tons to 8,6 thousand tons in 2016. Such volume (8.600 tons) is equal to 55% of the total demand of pesticides in Kazakhstan.
The assortment of pesticides in Kazakhstan has increased 14,5 times from 4 to 58 different brands. The share of Kazakh local components has increased from 6% to 53%, on average. 68
Picture 66. Dynamics pesticides production Picture 67. Dynamics of external pesticides in Kazakhstan in 2010, 2016 and 2019, thous. trade Kazakhstan during 2013-2018, mln. EUR tons
68 http://atameken.kz/ru/news/25199-himiya-dolzhna-byt-svoya 177 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Reference source: data processing of customs statistics https://comtrade.un.org/data/ The foreign investors take an interest in the Kazakh market. Nowadays a project for plant protection agents in Almaty region is discussed. With the support of the national company «Kazakh Invest» in cooperation with a Turkish investor – holding «Agrobest Grup» – a factory for the production of plant protection agents will be built in 2019 / 2020. The investor invests 25,2 mln. EUR. The investment project is implemented under the auspices of the Embassy of Kazakhstan in Turkey. 69 The production capacity will be 12 thousand tons pesticides per year. 70
The market capacity of pesticides in Kazakhstan can be estimated by different sources from 16 thousand tons 71 to 21 thousand tons or on average around 108 - 144 mln. EUR. 72
The raw material for the pesticides production and the finished pesticides are imported by Kazakhstan from the Russian Federation, 40%, China, 15% and France 11% in value terms. 77% of Kazakhstan pesticides export finds its destination to the Russian Federation. 73
0,9 tons of pesticides with a market value of 26 thousand EUR were imported from the Netherlands in 2018.
The market capacity of pesticides for greenhouse conditions is about 70 - 75 thousand EUR.
Kazakh producers of pesticides:
1. LLP «Astana nan» 0130000, Nur-Sultan, Korgalzhinsky highway, 3 В Phone: +7 (7172) 792-988 www.astana-nan.kz
The company was established in 1999 and is specialized in plant protection agents’ supplies as well as carrying out of field tests. Since 2010 the company has its own plant – the daughter enterprise to produce the chemical plant protection agents LLP «Astana-Nan Chemicals». The annual volume of production is 50 mln. liters.
The company offers a wide range of plant protection agents for all crops and cooperates with producers from Germany, USA, Switzerland, Russia, Austria and France.
2. LLP «Agrokhimiia» www.agrochemicals.kz This enterprise produces plant protection agents.
69 https://primeminister.kz/ru/news/all/zavod-po-proizvodstvu-pestitsidov-budet-postroen-v- almatinskoi-oblasti-16280 70 https://abctv.kz/ru/last/tureckaya-agrobest-group-postroit-v-kazahstane-zavod-po-pro 71 Based on the data from «Association of Kazakh Producers of Crop Protection Agents» that Kazakh production is 55% from the needs. 72 Based on the data from «Association of Kazakh Producers of Crop Protection Agents» and the external trade volume. 73 Reference source: data processing of customs statistics https://comtrade.un.org/data/. 178 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Foreign producers of pesticides:
Since Russia is the main supplier of pesticides to Kazakhstan, the large Russian producers are well represented on the Kazakh market and have representative offices / branches, like:
✓ LLP «Shchelkovo Agrokhim-KZ» - the company started in 2009 and has 4 branches; ✓ LLP «Avgust-Kazakhstan» www.avgust.kz; ✓ «Agroexpert Group» www.astanabusiness.kz/ru/kontakty.
The world leaders in the production of plant protection products are also represented on the Kazakhstan market:
✓ Bayer www.bayer.com (Germany), Bayer Kaz – they have a representative office in Kazakhstan; ✓ ChemChina www.chemchina.com.cn (China); ✓ FMC www.fmc.com (USA); ✓ DuPont www.dupont.com (USA), the representative office in Kazakhstan www.dupont.kz.
Generally, the greenhouses work not directly with the producers but with the dealers and shops offering the wide range of products, including fertilizers, pesticides and other materials. An exampleos such a dealer is «POLEVOD» www.polevod.com.
5.10 AFTER HARVEST LINES
SORTING, GRADING AND PACKAGING LINES FOR VEGETABLES
The market of presales preparation and/or packaging of the greenhouse vegetables only starts to develop in Kazakhstan. It is almost equal to the development level which the Russian market had 5 - 7 years ago.
The market capacity is small because of:
✓ Less market capacity of vegetables (less population than in Russia); ✓ Now in Kazakhstan the wholesale and retail food markets are more developed. These segments do not require packaged products, only sorted and graded. But this process can be done by human labor without any special equipment.
The packaged greenhouse vegetables are demanded by retail chains. But the retail trade develops in Kazakhstan less than in Russia: its share is about 16% of total retail sales while in Russia this figure is about 30%.
Also the packaged greenhouse vegetables are demanded by the greenhouses which export products to the nearest regions of Russia, and the volume of export is growing.
179 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 In Kazakhstan there are no large producers of greenhouse vegetables like in Russia (20 – 30 thousand tons). The local large producers are LLP «BRB APK» or LLP «Greenhouse Kazakhstan», producing 6 - 7 thousand tons. They rule the trend in the sector and install the sorting, grading and packaging lines. But such companies are only few.
For example, Russian company «Agropak» supplied equipment to LLP «Greenhouse Kazakhstan».
The market will develop and, according to the market players, in the next 2 - 3 years a further increase in demand for the sorting, grading and packaging lines will be expected.
The market capacity is 370 - 730 thousands EUR.
The equipment producers – the key players at the Kazakhstan market - are wellknown professional leading companies from The Netherlands.
PACKAGING MATERIALS
According to experts:
✓ The market value of packaging material for greenhouse vegetables is insignificant because of the underdevelopment of this market segment in Kazakhstan; ✓ Packaging materials from Russia and Kazakhstan have large market shares, while imported materials are rather rare.
The cardboard boxes and plastic crates are mainly used as a package for the greenhouse vegetables in Kazakhstan, because the greenhouse vegetables are harvested manually and sold by weight.
There are many companies, which produce and supply plastic films, tray packs, plastic containers. It is difficult to define a market leader in this segment.
Some examples of companies in Kazakhstan which produce different packages:
✓ «Alma grafiks» www.almagraf.kz – cardboard package and plastic bags; ✓ «Mir paketov» www.mirpack.kz – bags and plastic package; ✓ «LOGOTAPE» www.logotape.kz – plastic food and shrink wrap; ✓ «Intellpack» www.intellpack.kz – plastic food wrap; ✓ «Upack» www.upack.kz - plastic package; ✓ «Iuzhuralpak-Kazakhstan» www.yup.satu.kz – trays from polystyrene; ✓ «KOLEX» www.kolex.kz – carton boxes; ✓ «GLOBAL PACK KZ» www.globalpack.kz – plastic package; ✓ «Protek» www.protekgroup.com, Russia - plastic package.
Crates and other packaging materials of local and Russian production are more common for the north of Kazakhstan. In the south - the share of Chinese products is larger.
180 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
5.11 LOGISTICS OF PLANT PRODUCTS
STORAGE, COOLING FACILITIES, DISTRIBUTION CENTERS
The storage of greenhouse vegetables requires only cooling. In Kazakhstan this sector is filled by imported equipment from the companies which presented in Russia.
There are some large market players which supply equipment, cooling facilities:
1. LLP «Titan Аlmaty» www.titan-almaty.kz This enterprise is active in assembling and maintenance service of cooling and freezing chambers. It is an authorized distributor of companies’ equipment (compressors), like: ✓ TECUMSEH (France); ✓ BITZER (Germany); ✓ EMBRACO (Brazil); ✓ SECOP (Austria); ✓ THERMOWAY, FRITERM (Turkey).
The consumable materials and components are also imported from: ✓ Eliwell (microprocessors, Italy), ✓ Ziehl-Abegg (ventilators, Germany), ✓ DeNa (filters, Germany).
2. LLP «Inter-Kholod» www.intercool.kz The company is active in assembling, service and repair of cooling and freezing facilities from partners’ equipment: ✓ Climaveneta climaveneta.com (Italy); ✓ Copeland www.emersonclimate.com/europe (Germany); ✓ concern Alfa Laval www.alfalaval.com (Sweden); ✓ Friga-Bohn (Franco-American company).
3. In Kazakhstan there is a representative office of company Danfoss www.danfoss.kz, Denmark, pumps.
4. IFT Project Development http://iftpd.com The company “IFT Projects” works closely with a number of wellknown professional companies from The Netherlands.
There are a couple of leading Dutch suppliers of high-tech storage and cooling facilities active on the Kazakh market.
TRANSPORT
181 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
To transport the products, truck transport with refrigerators is used. The producers of refrigerators are the same as of storage and cooling facilities.
5.12 CONSULTANCY
KNOWLEDGE TRANSFER AND PRACTICAL TRAINING OF MANAGEMENT, GROWERS, AGRONOMIST
The following types of institutions deliver services for information and marketing support, financial matters and consulting in Kazakhstan:
1 Government institutions; 2 Sector associations; 3 Foreign / Kazakh producers and dealers; 4 Private / foreign companies.
Below 1-2 examples are provided from each group and some provided services are considered.
1 GOVERNMENT INSTITUTIONS
At the present stage the agrarian science in Kazakhstan has a significant number of scientific results. Their adoption and implementation theoretically could significantly increase of the effectiveness of vegetable growing. However, these results are quite rare used in practice. The main reason for this is the low development of knowledge transfer from the research institutions (like 1.1 and 1.2) to the agricultural enterprises, extension system and agricultural consultancy.
1.1 From 2006 on the subsidy program «The information support of AIC subjects on a free-of- charge basis» is realized by the Ministry of Agriculture.
1.1 Centers of transfer knowledge were established. The mass media coverage is conducted by the Center together with the national chamber of entrepreneurs of the Republic of Kazakhstan «Atameken» and the regional chamber of entrepreneurs. The articles are published in all main social media, like: Facebook, Instagram, Twitter and LinkedIn.
The research and information portal www.fаrmers.kz and the call-center are working.
The different variants of knowledge transfer lead to providing practical training, consulting and methodological support at the local level in all regions of Kazakhstan.
1.2 The National Chamber of Entrepreneurs of Kazakhstan «ATAMEKEN» has provided information and marketing support since 2016. www.atameken.kz
The chamber of entrepreneurs represents the interests of small, medium and large business and covers all business areas including internal and external trade. The main task of «Atameken» is the
182 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 protection of rights and interests of business and the provision of a wide coverage and involvement of all entrepreneurs and informing them about legislative and other normative rules of business work.
1.3 «NATIONAL COMPANY KAZNEX INVEST» JSC www.invest.gov.kz
Annually it supports the participation of Kazakh producers in the exhibitions abroad and promotes the outside activities.
1.4 «KAZAGRO» NATIONAL MANAGEMENT HOLDING» JSC www.kazagro.kz
JSC «National management holding «KazAgro» has the subsidiary companies which: ✓ Finance under the «Program for Development of Agroindustrial Complex for 2017-2021» (credit and leasing activities); ✓ Provide the analytical, consulting and maintenance services in AIC.
The subsidiary companies:
✓ JSC «Agrarian Credit Corporation»; ✓ JSC «Kazagrofinance»; ✓ JSC «Kazagroynim»; ✓ JSC «Fund of Financial Support of Agriculture»; ✓ JSC «Kazagromarketing»; ✓ JSC «Kazagrogarant»; ✓ JSC «National Company «Food Contract Corporation».
2 SECTOR ASSOCIATIONS
These associations give information and marketing support, collect and promote data, promote effective foreign technologies and represent the interests of the associate members towards the government.
2.1 «GREENHOUSES ASSOCIATION OF KAZAKHSTAN» www.greenhouses.kz +7 (727) 303-68-28 [email protected]
The Association has been established in 2008. Their main activities are:: ✓ Promoting the existing greenhouses in solving the issues of allocating limits and reducing the tariffs and barriers for trade; ✓ Organizes training courses for managers and agronomists of greenhouse enterprises, advises them and accompanies them at each stage, conducts an annual international exhibition, studies the experience of the work of greenhouse complexes of near and far abroad.
183 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
3 FOREIGN / KAZAKH PRODUCERS AND DEALERS
These companies consult as a part of their products delivery.
3.1 The company LLP «Inter-Kholod» is active in assembling, service, repair of cooling facilities;
3.2 «A number of wellknown professional Dutch greenhouse companies» technically support in the framework of turn-key project the implementation of greenhouse complexes.
4 PRIVATE / FOREIGN COMPANIES & ORGANISATIONS
A wellknown professional independent technological consultant organisation from The Netherlands is working in Kazakhstan.
It is worth noting The Program of the European Bank of Reconstruction and Development (EBRD) www.ebrd.com for supporting small business in Kazakhstan. This is a program for the development of small and medium business through grants with the aim to support business advices. 74 The program is realized by EBRD through financing from the Government of Kazakhstan via the Ministry of National Economy.
The support includes: ✓ The assistance in choosing the consulting company and consulting project organization; ✓ A compensated grant to 10.000 EUR which cover 25 - 75% of the expenses for services of the consulting company.
The requirements to the consultants according to the program of the EBRD are: non-resident of Kazakhstan, work experience more than 10 years and project experiences in more than two countries.
74 http://www.ebrd.com/work-with-us/advice-for-small-businesses/international-advisers.html%20 184 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 5.13 INTERMEDIATE CONCLUSIONS
The largest segments in the greenhouse market of Kazakhstan by the investment expenditures are:
✓ Greenhouse construction – not less than 4 mln. EUR; ✓ Heating & power equipment – not less than 4 mln. EUR; ✓ Climate control and lighting – not less than 7 mln. EUR.
The segment «Greenhouse Construction» is 100% occupied by the foreign companies, mainly from the Netherlands. These companies have already established a good reputation in the market, it is more than likely that the investors will contact them. The project of the agroholding «ECOCULTURE» can be an exception, because this company will most likely work with its traditional suppliers (see Appendix 2).
In Kazakhstan, as in Russia, the segment «Heating & Power Equipment» is 100% occupied by imported products. The energy centre is installed for no more than 20% of the greenhouse area. Power equipment is supplied by the same world leaders as for Russia: Austria, Germany and USA. The Dutch companies supply heating equipment, but the volume of this subsegment is lower than power equipment.
In the segment «Climate Control and Lighting» the main costs are accounted for lamps (100% imported) and lighting systems (mainly imported). The old greenhouses use mainly Russian 600-watt lamps. Russian lamps are often supplied with Russian lighting systems. The new greenhouses built over the last years (since about 2014 and till present) use 1.000-watt lamps. They are only imported, mainly by brands of Dutch companies and some few under Osram (Germany).
According to experts, the share of European lamps is about 15% in volume terms, about 19 thousand lamps per year (taking into account the annual launch of 10 hectare and the replacement in the existing greenhouses).
In Kazakhstan a couple of Dutch producers of lighting systems are quite active and provide Kazakhstan with innovative and high-quality lighting systems.
The largest segments by the operating expenses (with import components, without including electricity, heat and labour costs) are:
✓ Propagation material – more than 4.4 mln. EUR; ✓ Input for crop growing (including substrate) – more than 1.4 mln. EUR.
The costs in the segment «Propagation Material» are mainly presented by the costs for vegetable seeds. The share of import of vegetable seeds is closed to 100%. A significant part of the seeds is supplied by The Netherlands.
The subsegment «substrate» is occupued 100% by imported products, mainly Russian, 52% in value terms, and Polish, 39%, mainly of the company «ROCKWOOL» («Grodan»).
185 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Table 65. Summary table of market value and import share in regard to most important segments Investment costs
Market value, Including imports Market prospects Product categories mln. EUR % mln. EUR for 3 - 5 years
4,9 Greenhouse Construction ✓ Foundations 1,7 Growth ✓ Steel and aluminum structures 2,2 100% 2,2 Growth ✓ Glass 1 100% 1 Growth
4 Heating & Power Equipment no more than ✓ Heating & Power Systems no more than 4 100% Insignificant growth 4 ✓ CO2 enrichment - ✓ Boilers for heating + Water basins - ✓ Electronic systems -
more than 7,3 Climate Control and (LED) Lighting ✓ Ventilation - ✓ Cooling & Screening Systems - ✓ Coatings - lamps 2,8, ✓ Lamps and Lighting Systems lighting 100% 7,3 Growth systems 4,5
Operating expenses
Market value, Including imports Market prospects Product categories mln. EUR % mln. EUR for 3 - 5 years
more than 4,6 Propagation Material ✓ Vegetable Seeds 3 to 100% 3 Growth ✓ Flower Bulbs more than 1 more than 1 Stagnation more than ✓ Roses Nursery Material more than 0,6 Stagnation 0,6
2,5 Input for Crop Growing ✓ Substrate 1,4 100% 1,4 Growth ✓ Hydroponics 0,3 Growth ✓ Fertilizers 0,7 Growth ✓ Drip irrigation 0,1 Growth
186 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 6 GUIDE TO MARKET ENTRY
All main equipment, materials, services related to the establishment and operation of a modern year- round greenhouse are almost 100% imported.
The small share of Kazakh companies is in the subsegments «Pesticides», «Fertilizers», «Packaging Materials».
Now there is a strong interest of investors to the greenhouses with a total area of 10 and more hectares. Generally, the volume of launched areas is small because only 1 - 2 projects per year are implemented. Consequently, the investment volume in the sector is small.
Several wellknown professional companies from The Netherlands have already worked in Kazakhstan for many years. These companies have already established a good reputation among the market players. It is more than likely that the future investors will contact with them.
Kazakhstan is interesting potentially for the companies from The Netherlands because:
✓ The greenhouse sector in Kazakhstan is for investments attractive, because of the food embargo by Russia. Kazakhstan has a strategic location in the region (Russia and China); ✓ A significant volume of greenhouse vegetables is exported to the Russian market; ✓ The modern Dutch greenhouses are more effective than traditional ones; ✓ Competition with local producers of equipment and materials for greenhouses is less than in RF.
There is a relatively low yield in the commercial greenhouses in Kazakhstan (23 - 26 kg/m2) and the yield in the plastic greenhouses is around 13 - 16 kg/m2. So, in future the attention can be directed to modern equipment and systems improving the efficiency of production of greenhouse vegetables (automation systems, process control, etc.). These are additional arguments and potential for the companies from The Netherlands.
187 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ADDENDUM 1. INVESTMENT PROJECTS – GREENHOUSE PRODUCTION
INVESTMENT PROJECTS OF AGROHOLDINGS
"MANAGEMENT COMPANY TEKHNOLOGII TEPLICHNOGO ROSTA" (MK TTR) Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Extension of the Investor: “MK TTR”, LTD greenhouse area +7 (812) 327-39-29 from 11 till 53 Second + "Lukhovitskie Moscow ha. The total Under construction Cucumbers Customer: "Lukhovitskie third stages 6.000 20,6 ovoshchi", LTD region area for finished / Completed Tomatoes ovoshchi", LTD 42 ha. products storage +7 (495) 995-41-60 and sorting is [email protected] 1.8 thousand ha. Investor: “MK TTR”, LTD +7 (812) 327-39-29 [email protected] The project under http://ghgt.ru construction. The
construction time Greenhouse Bryansk Tomatoes, Customer: Greenhouse 7,2 ha. 2.000 Addional lighting was extended but "Zhurinichi", LTD region Cucumbers "Zhurinichi", LTD will be completed +7 (812) 327-39-29
[email protected] http://ghgt.ru, http://овощи- рост.рф 12 production units with a total Investor: “MK TTR”, LTD area of 75.6 ha; The full launch and Tomatoes +7 (499) 389-44-25, +7 (812) Greenhouse First stage nursery area is reaching the Tambov 50 – 100 Cucumbers 327-39-29 “Michurinskij", 30 ha. in 3 28.400 7.6 ha; service project capacity is region in total Salad and [email protected] LTD stages and sorting area planned in 2021 Greenery http://ghgt.ru is 3.4 ha. + the
training centre is 1.1 ha. 188 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Extension of the Investor: “MK TTR”, LTD greenhouse area +7 (812) 327-39-29 from 11 till 53 Second + "Lukhovitskie Moscow ha. The total Under construction Cucumbers Customer: "Lukhovitskie third stages 6.000 20,6 ovoshchi", LTD region area for finished / Completed Tomatoes ovoshchi", LTD 42 ha. products storage +7 (495) 995-41-60 and sorting is [email protected] 1.8 thousand ha. Investor: “MK TTR”, LTD +7 (812) 327-39-29 [email protected] The project under http://ghgt.ru construction. The
construction time Greenhouse Bryansk Tomatoes, Customer: Greenhouse 7,2 ha. 2.000 Addional lighting was extended but "Zhurinichi", LTD region Cucumbers "Zhurinichi", LTD will be completed +7 (812) 327-39-29
[email protected] http://ghgt.ru, http://овощи- рост.рф 12 production units with a total Investor: “MK TTR”, LTD area of 75.6 ha; The full launch and Tomatoes +7 (499) 389-44-25, +7 (812) Greenhouse First stage nursery area is reaching the Tambov 50 – 100 Cucumbers 327-39-29 “Michurinskij", 30 ha. in 3 28.400 7.6 ha; service project capacity is region in total Salad and [email protected] LTD stages and sorting area planned in 2021 Greenery http://ghgt.ru is 3.4 ha. + the
training centre is 1.1 ha. 14.7 ha. were launched.
Plans to launch 5.2 ha. in 2020 Investor: “MK TTR”, LTD Greenhouse (the question with Rostov Cucumbers +7 (812) 327-39-29 "Donskaya 18 ha. 4.200 the construction 10 region Tomatoes http://ghgt.ru usadba" financing is in 189
Ltd. «Rusmarketconsulting» suspense, the www.agricons.ru, [email protected] construction cost is +7 (812) 712 50 14 800 mln. RUB). The project will be completed. Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Extension of the Investor: “MK TTR”, LTD greenhouse area +7 (812) 327-39-29 from 11 till 53 Second + "Lukhovitskie Moscow ha. The total Under construction Cucumbers Customer: "Lukhovitskie third stages 6.000 20,6 ovoshchi", LTD region area for finished / Completed Tomatoes ovoshchi", LTD 42 ha. products storage +7 (495) 995-41-60 and sorting is [email protected] 1.8 thousand ha. Investor: “MK TTR”, LTD +7 (812) 327-39-29 [email protected] The project under http://ghgt.ru construction. The
construction time Greenhouse Bryansk Tomatoes, Customer: Greenhouse 7,2 ha. 2.000 Addional lighting was extended but "Zhurinichi", LTD region Cucumbers "Zhurinichi", LTD will be completed +7 (812) 327-39-29
[email protected] http://ghgt.ru, http://овощи- рост.рф 12 production units with a total Investor: “MK TTR”, LTD area of 75.6 ha; The full launch and Tomatoes +7 (499) 389-44-25, +7 (812) Greenhouse First stage nursery area is reaching the Tambov 50 – 100 Cucumbers 327-39-29 “Michurinskij", 30 ha. in 3 28.400 7.6 ha; service project capacity is region in total Salad and [email protected] LTD stages and sorting area planned in 2021 Greenery http://ghgt.ru is 3.4 ha. + the
training centre is 1.1 ha. Customer: Greenhouse "TyumenAgro", LTD Greenhouse Under construction Tomatoes +7 (3452) 565-352 Third stage Tyumen "TyumenAgro" 3.000 / Completed Cucumbers [email protected] 11 - 15 ha. region Greenery http://ghgt.ru/factories/15
Investor: “MK TTR”, LTD 190 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Extension of the Investor: “MK TTR”, LTD greenhouse area +7 (812) 327-39-29 from 11 till 53 Second + "Lukhovitskie Moscow ha. The total Under construction Cucumbers Customer: "Lukhovitskie third stages 6.000 20,6 ovoshchi", LTD region area for finished / Completed Tomatoes ovoshchi", LTD 42 ha. products storage +7 (495) 995-41-60 and sorting is [email protected] 1.8 thousand ha. Investor: “MK TTR”, LTD +7 (812) 327-39-29 [email protected] The project under http://ghgt.ru construction. The
construction time Greenhouse Bryansk Tomatoes, Customer: Greenhouse 7,2 ha. 2.000 Addional lighting was extended but "Zhurinichi", LTD region Cucumbers "Zhurinichi", LTD will be completed +7 (812) 327-39-29
[email protected] http://ghgt.ru, http://овощи- рост.рф 12 production units with a total Investor: “MK TTR”, LTD area of 75.6 ha; The full launch and Tomatoes +7 (499) 389-44-25, +7 (812) Greenhouse First stage nursery area is reaching the Tambov 50 – 100 Cucumbers 327-39-29 “Michurinskij", 30 ha. in 3 28.400 7.6 ha; service project capacity is region in total Salad and [email protected] LTD stages and sorting area planned in 2021 Greenery http://ghgt.ru is 3.4 ha. + the
training centre is 1.1 ha. +7 (812) 327-39-29 [email protected] http://ghgt.ru
191 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Extension of the Investor: “MK TTR”, LTD greenhouse area +7 (812) 327-39-29 from 11 till 53 Second + "Lukhovitskie Moscow ha. The total Under construction Cucumbers Customer: "Lukhovitskie third stages 6.000 20,6 ovoshchi", LTD region area for finished / Completed Tomatoes ovoshchi", LTD 42 ha. products storage +7 (495) 995-41-60 and sorting is [email protected] 1.8 thousand ha. Investor: “MK TTR”, LTD +7 (812) 327-39-29 [email protected] The project under http://ghgt.ru construction. The
construction time Greenhouse Bryansk Tomatoes, Customer: Greenhouse 7,2 ha. 2.000 Addional lighting was extended but "Zhurinichi", LTD region Cucumbers "Zhurinichi", LTD will be completed +7 (812) 327-39-29
[email protected] http://ghgt.ru, http://овощи- рост.рф 12 production units with a total Investor: “MK TTR”, LTD area of 75.6 ha; The full launch and Tomatoes +7 (499) 389-44-25, +7 (812) Greenhouse First stage nursery area is reaching the Tambov 50 – 100 Cucumbers 327-39-29 “Michurinskij", 30 ha. in 3 28.400 7.6 ha; service project capacity is region in total Salad and [email protected] LTD stages and sorting area planned in 2021 Greenery http://ghgt.ru is 3.4 ha. + the
training centre is 1.1 ha. The construction «Greenhouse Nizhny First stage Additional deadline: 2020 Tomatoes Nizhegorodskij», Novgorod 17.3 ha. lighting Cucumbers LTD region
Agricultural holding "EKOKULTURA"
192 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Project Volume, investment Project Project status. thous. Customer, investor Project Region Crops Contacts cost, mln. description Plans tons per RUB year Investor: agricultural February 2018: holding “EKOKULTURA”, designing LTD
+7 (495) 514-00-99 The construction "Podmoskovye [email protected] deadline: the end of greenhouse 60 ha. Moscow region 12.000 45 Tomatoes http://aph-ecoculture.ru 2020 complex"
Customer: "Podmoskovye The launch of the greenhouse complex" third stage in the
period 2019-2022
In March 2018 the designing Investor: agricultural The beginning of holding “EKOKULTURA”, 2019: construction LTD +7 (495) 514-00-99 "Voronezh [email protected] greenhouse 60 ha. Voronezh region 17.000 The launch of the, 45 Tomatoes http://aph-ecoculture.ru complex", LTD second stage (22 ha) in the second Customer: "Voronezh quarter of 2020 + greenhouse complex", LTD the third stage (16 ha.) in the second quarter of 2021 Customer: "Black Earth Greenhouse vegetables", LTD with the Second http://aph-ecoculture.ru distribution and third "Ovoshchi centre in stages – Lipetsk region 24.000 2017 - 2020 Tomatoes Investor: agricultural Chernozem’ja", LTD Lipetsk region 30 + 25 holding “EKOKULTURA”, with a total ha. LTD +7 (495) 514-00-99 area of 10 [email protected] thousand m2 http://aph-ecoculture.ru
193 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
Customer: "Tulskiy The construction greenhouse complex", LTD deadline: 2021 http://aph-ecoculture.ru
Second stage (22.6 "Tulskiy greenhouse 71 ha. in Investor: agricultural Tula region 20.000 ha.) in the second 56,85 Tomatoes complex", LTD total holding “EKOKULTURA”, quarter of 2020 + LTD +7 (495) 514-00-99 the third stage [email protected] (23.65 ha.) in the http://aph-ecoculture.ru second quarter of
2021 Customer: "Solnechnyi Dar greenhouse complex", LTD +7 (985) 800-97-77 [email protected] http://aph- ecoculture.ru/ooo- "Solnechnyi Dar the Plans: solnechniy-dar greenhouse second Stavropol Krai 13.200 60 Tomatoes 2019 - 22.8 ha. complex", LTD stage under construction, Investor: agricultural 2020 - 20 ha. holding “EKOKULTURA”, LTD +7 (495) 514-00-99 [email protected], [email protected] http://aph-ecoculture.ru
194 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 "DOLINA OVOSHCHEJ Group”
Project investment Project Volume, thous. Customer, investor Project Region Project status. Plans Crops Contacts cost, mln. description tons per year RUB Customer: Greenhouse "Eleckie ovoshchi", LTD +7 (47467) 47-900 [email protected] 15 ha were launched.
Greenhouse Lipetsk System Ultra Cucumbers Investor: “Dolina "Eleckie ovoshchi", 44 ha. 17.000 region Clima Tomatoes Ovoshchej Group”), LTD LTD The project is under +7 (495) 246-03-30, +7 construction (812) 646-50-42, +7 (912) 770-16-91 [email protected] http://dolina-o.ru System Ultra Clima
The stages: Customer: Greenhouse ✓ I-II - 9,4 ha of "LipetskAgro", LTD Greenhouse six stages Lipetsk tomatoes, Fourth stage (13.3 ha.) Cucumbers 2.500 "LipetskAgro", LTD 58.4 ha. region ✓ III-IV - 24,7 ha is under construction. Tomatoes Investor: “Dolina of cucumbers, Ovoshchej Group”, LTD ✓ V - 11 ha of tomatoes, ✓ VI - 13,3 ha of tomatoes*
* - The total area taking into account , is the main area, nursery, service units and administrative complex.
195 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 "GORKUNOV GROUP"
Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Customer: Greenhouse "Smolenskij", LTD +7 (915) 967-17-00 Greenhouse Approx. Smolensk Under construction Cucumbers "Smolenskij", 2.600 22 15 ha. region / Completed Salad Investor: “Gorkunov Group” LTD +7 (495) 252-01-70 [email protected] http://gorkunov.com Customer: Greenhouse “Novosibirskij“, LTD +7 (383) 285-57-70 [email protected] Second Greenhouse Novosibirsk Under construction http://tknso.ru stage 1.791 Tolmachevskij" region / Completed 9.4 ha. Investor: “Gorkunov Group”, LTD +7 (495) 252-01-70 [email protected] http://gorkunov.com Customer: Greenhouse "Obskoj", LTD +7 (913) 005-39-09, +7 (960) 748- 00-58, +7 (383) 284-84-29 [email protected]
Investor: Greenhouse Greenhouse Novosibirsk Under construction Tomatoes 8.2 ha. 3.500 “Novosibirskij“, LTD "Obskoj", LTD region / Completed Cucumbers +7 (383) 285-57-70 [email protected] http://tknso.ru Investor: “Gorkunov Group”, LTD +7 (495) 252-01-70 [email protected] http://gorkunov.com 196 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 «Renova» Group
Project Volume, Project Customer, investor Project Region investment Project status. Plans thous. tons Crops Contacts description cost, mln. RUB per year Investor-customer: Greenhouse "Sosnogorskij", +7 (912) 100-10-12 Greenhouse
"Sosnogorskij", LTD 12.6 ha. Komi Fifth generation Under construction / Cucumbers 3.600 10 Project initiator: (is included in Renova in total Republic greenhouses Completed Tomatoes Renova Group Group) +7 (495) 7204999, 7204998 [email protected] http://www.renova.ru Greenhouse "Novocheboksarskij", LTD Greenhouse Under construction /
"Novocheboksarskij", Completed Chuvash Fifth generation Cucumbers Project initiator: LTD 23.6 ha. 6.500 19 Republic greenhouses Tomatoes Renova Group (is included in Renova The planned capacity - +7 (495) 7204999, 7204998 Group) 2020-2021 [email protected] http://www.renova.ru The structure of owners has changed: 51% JSC Greenhouse Greenhouses «Complexprom», 49% «Permskij», LTD, more than Tomatoes 24 ha. Perm Krai and Energy LTD «Renova-Holding 19 Director Shashikashvili Dmitrii (is included in Renova 7.000 Cucumbers Centre Rus». According to Group) experts, the project is still planned
The total area of the greenhouse complexes (4 greenhouse complexes) of the Renova Group will be about 100 ha (in case of their full implementation). The total investment will be 25 bln. RUB. The planned capacity is 75 thousand tons per year.
197 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 LTD "Holding UMMC-Agro"
Project Volume, Customer, investment Project Project Region Project description thous. tons Crops Contacts investor cost, mln. status. Plans per year RUB Customer: "Teplichnoe", JSC +7 (343) 288-22-26, 288-22-26, greenhouses ULTRA 368-69-92, 334-93-65 CLIMA, photoculture "Teplichnoe", The project is [email protected] of tomatoes - 10.4 JSC completed: the http://www.aoteplichnoe.ru ha., photoculture of Tomatoes (is included in Sverdlovsk first stage was 24.7 ha. 5.500 cucumbers – 6.7 ha., Cucumbers, “Holding region launched in semi-automated Salad UGMK-Agro”, 2017, second Investor: “Holding UGMK- salad and greenery LTD) stage in 2018. Agro”, LTD complex – 3 ha., +7 (343) 288-22- own energy centres [email protected] http://www.zdorovomoloko.ru
198 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 INVESTMENT PROJECTS OF INDEPENDENT ENTERPRISES
Project Volume, Customer, investment Project Project status. thous. Project Region Crops Contacts investor cost, mln. description Plans tons per RUB year Customer: Agrocomplex "Ivanisovo", LTD Two stages: 15.1 +7 (496) 577-45-03 + 20.4 ha. [email protected]
"Bogorodskije http://agpcomplex.com The project is ovoshchi ", LTD Tomatoes suspended in not less (Victoria Estate 20 ha. Moscow region 6.000 Photoculture Cucumber Investor: Victoria Estate 2019 than 70 Management, Greenery Management, LTD
LTD) +7 (495) 221-52-51, 579-20- Plans: to extend 50, +7 (496) 579-33-13 the total area till [email protected] 80 ha. in 2020 http://www.v-em.ru
Around 20 ha. of the 25 ha. Own sorting, completed First stage: "Greenhouse", Customer: "Greenhouse", packaging 19-22 LTD LTD First stage is and The construction (Investment Belgorod region 5.930 Tomatoes [email protected] 25 ha. distribution deadline (3 Total: not Company "Sigma http://www.gnhs.ru centre near stages) - 2020, less than Capital") Moscow 108 ha. 95
199 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Three stages (80 Tomatoes, ha) were cucumber launched. Customer-investor: "Agro- Greenery The fourth stage Inwest", LTD
(30 ha) is under +7 (495) 204-85-55, +7 "Agro-Inwest", Fourth stage Exclusive Kaluga region 13.000 construction. 75 (48444) 683-86 LTD 44 ha. varieties of The total area will [email protected] tomatoes be 112.5 ha. http://agroinwest.com for the
Russian Fourth stage market launched in 2019 Cucumber - 12 thous. Greenhouse The project will be tons, «Sayanskij», 12.5 ha. Irkutsk region 3.000 launched in 2019 - 12 Salad - LTD 2020 about 1 mln. pieces Cucumber: 3.1 thous. Cucumber tons 2.7 ha. Customer: "PROMPARK", Tomatoes: 1.900 LTD "PROMPARK", 2.2 thous. Tomatoes 6 ha. Orel region LTD Tons 3.1 ha. (3.400) Investors: Sal. Aficion, 3 individuals Otili - 600 Salad thous. 0.36 ha. pieces Investor-customer: "ECOPRODUCT", LTD "ECOPRODUCT The project has Cucumber 7 + 4 ha. Orel region 1.900 8 +7 (920) 837-70-88 ", LTD completed Tomatoes [email protected] http://ecoproduct57.ru
200 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 11 ha. of modern Customer-investor: greenhouses Agricultural holding (cucumbers + Agricultural "Vyborgec", LTD tomatoes), 8 ha. Eggplants holding +7 (812) 329-22-20, 525-67- 14 ha. Leningrad region 8.000 salad + greenery Cucumber "Vyborgec", 97, 329-22-27, 331-54-60 Tomatoes LTD [email protected] Plans: 14 ha - http://vyborgec.ru 2019-2020. Will
be completed. Tomatoes Investor: "Kabosh Group", The construction Cucumber LTD "Kabosh deadline: 2023 Sweet B. +7 (81153) 47-477, 47-480, 165 ha. Pskov region 28.000 Group", LTD pepper +7 (800) 234-11-01 Salad http://www.kabosh.ru Eggplants Customer: "Ovoshchevod", LTD +7 (8443) 210-510, 210-517 Vegetable Greenhouse [email protected] storage - 28 "Botanica", LTD http://botanikaonly.ru thous. tons, (the fourth modern investment Volgograd Plans: to increase Cucumber Investor: "Radezh", LTD 20 ha. 3.000 sorting and 35 project of GC region the total area from Tomatoes +7 (8442) 266-190, 266-387, packaging "Radezh" as part 25 till 110 ha. 266-192 line in the of the project [email protected]; logistic "Ovoshchevod" [email protected] centre [email protected]; [email protected] http://www.radezh.ru
201 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 http://agrokulturagroup.ru Three stages (52 Cucumber Green house in Kashira ha.) have Tomatoes +7 (495) 123-40-01 completed. «Agrocultura Fourth stage Sweet B. Office in Moscow (Bolshoy Moscow region 74 total Group», LTD is 28 ha. peppers, Savvinskiy pereulok, 2-4-6, The fourth stage Eggplants building 4) (28 ha.) is under Greenery +7 (499) 649-20-00 construction. [email protected]
202 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Customer: Agrocomplex Agrocomplex "Martynovskij", LTD "Martynovskij", +7 (351) 211-18-12 LTD http://churilovo-agro.ru (Agrocomplex 15 thous. “Churilovo”, tons of Investor-initiator: Tomatoe LTD) Kurgan Under construction / vegies + Agrocomplex “Churilovo”, 12.5 ha. 3.400 – 3.550 Cucumbe region completed 200 thous LTD Greenery Now “Churilovo” pieces of +7 (351) 225-07-05, 730-48- has 25 ha. greenery 38, 211-11-18, +7 (919) 300- After the launch 12-36 of 2 projects it [email protected]; [email protected] will have 62 ha. http://www.churilovo-agro.ru
Logistic centre for storage and Customer: “Agropark Ural”, LTD processing for
agrocomplex 16 year Investor: Agrocomplex Agrocomplex and nearest round “Churilovo”, LTD "Gornyj" LTD, agricultural plastic Chelyabins Under construction / +7 (351) 225-07-05, 730-48-38, (Agrocomplex 25 ha. 5.750 enterprises. green- Vegies 211-11-18 k region The capacity of completed “Churilovo”, houses [email protected]; the centre lets LTD) [email protected] to ship 400 22 - total http://www.churilovoagro.ru tons of
products per day Projec initiator: Republic of «Greenhouses of Alania», «Greenhouses North First stage 10.8 ha. 835 4.71 Vegies LTD of Alania», LTD Ossetia - +7 (909) 665-72-24 Alania [email protected]
203 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
The launch of the second stage was planned in the first quarter of 2019. The Greenhouse project was Tomatoe Second stage is Chechen suspended but it will not less «Yugagroholdi 2.400 Cucumbe 10 ha. Republic be completed. than 10 ng» r After the third stage launching the total area will be 21.2 hа. (8 ha. tomatoes and 12 ha. cucumbers).
204 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 INVESTMENT PROJECTS OF PLASTIC GREENHOUSES
Project Volume, Customer, investment Project Project status as thous. Project Region Crops Contacts investor cost, mln. description of 2018. Plans tons per RUB year Customer-investor: Moscow branch of Ingush The construction Cucumbers Second company "Agrocomplex "Agrocomplex Republic of deadline for the Tomatoes stage 2.000 Additional lighting Sunzha", JSC Sunzha", JSC Ingooshetia second stage: Salad and 20 ha. 20 - total +7 (499) 505-50-63 2020 Greenery [email protected] http://ak-sunga.ru The first stage (2.6 ha) and vegetable storage Customer: "Sady Giganta", (10 thous. tons) LTD+7 (383) 285-42-12 were launched. [email protected]
; [email protected] Second May 2018: the "Sady Giganta", the first http://sadygiganta.ru stage Second stage: second stage is LTD stage - 2 7 ha vegetable storage under Cucumbers (is included in Novosibirsk Second stage thous. tons, Investor: trading holding - 13 thousand tons construction. Tomatoes trading holding region - 520 and the the second "Sibirskij gigant", LTD Third Greenery "Sibirskij gigant", third stage stage + 6 +7 (383) 255-55-53, 363- stage May 2018: the LTD) - 750 thous. tons 25-80 3 ha third stage [email protected], construction has [email protected] not begun yet. http://www.sibgigant.ru
The construction deadline of the third stage: 2019
205 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 LTD "GORKUNOV GROUP" – FLOWER PRODUCTION IN GREENHOUSE CONDITIONS
Project Project status Volume, investment Project Customer, investor Region as of 2018. thous. tons Crops Contacts cost, mln. description Plans per year RUB Customer: Greenhouse "Novosibirskij", LTD Sections +7 (383) 285-57-70 Greenhouse Reconstruction of № 1, 4, 5, 6 [email protected] "Novosibirskij", LTD 6.84 ha. cut roses Under Novosibirsk about 12 roses tknso.ru (is included in 1.500 and gerberas. construction / region mln. roses “Gorkunov Group”, Greenhouses completed Section № 3 Investor: “Gorkunov Group”, LTD LTD) "Venlo" type gerberas. +7 (495) 252-01-70 [email protected] http://gorkunov.com
206 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ADDENDUM 2. INVESTMENT PROJECTS VEGETABLE GREENHOUSE PRODUCTION IN RUSSIA
INVESTMENT PROJECTS OF AGROHOLDINGS
"MANAGEMENT COMPANY TEKHNOLOGII TEPLICHNOGO ROSTA" (MK TTR) Customer, investor Project Region Partners General contractor: StarKom, LTD
Design engineers/Projectors: • PF-AgroGroup, LTD, • STYNERGY Group, LTD "Lukhovitskie ovoshchi", LTD Second and third stages Moscow region (is included in "MK TTR", LTD) 42 ha. Design engineer-contractor: Astron Buildings, LTD
Project management: Geo Invest, LTD (construction and investment company Geo Invest)
Financial partner: Russian Agricultural Bank (Rosselkhozbank), JSC Greenhouse "Zhurinichi", LTD, 7,2 ha. Bryansk region General contractor: StarKom, LTD (is included in "MK TTR", LTD) Greenhouse “Michurinskij", LTD First stage of project Tambov region General contractor: StarKom, LTD (is included in "MK TTR", LTD) 30 ha. General contractor: StarKom, LTD
General design engineer: engineering-construction company ROSS, Greenhouse "Donskaya usadba" 18 ha. Rostov region LTD (is included in "MK TTR", LTD)
Financial partner: Rostov regional branch, Russian Agricultural Bank (Rosselkhozbank), JSC Greenhouse "TyumenAgro" Third stage of project Financial partner: Tyumen regional branch, Russian Agricultural Tyumen region (is included in "MK TTR", LTD) 1 - 15 ha. Bank (Rosselkhozbank), JSC
207 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
"DOLINA OVOSHCHEJ Group” Customer, investor Project Region Partners General design engineer: LTD Research and Production Company FITO
Greenhouse "Eleckie ovoshchi", LTD General contractor: Teplichnye tekhnologii, LTD (is included in “Dolina Ovoshchej 44 ha. Lipetsk region
Group”) Contractor: TeplicStroiUniversal, LTD
Technical customer: StroiEngineering, LTD Greenhouse "LipetskAgro", LTD (is included in “Dolina Ovoshchej Six stages - 58,4 ha. Lipetsk region General contractor: TeplicStroiUniversal, LTD Group”)
LTD "GORKUNOV GROUP" Customer, investor Project Region Partners Financial partner: Sberbank, JSC Greenhouse "Smolenskij", LTD 15 ha. Smolensk region (is included in “Gorkunov Group”, LTD) Financial partner: Russian Small and Medium Business Corporation, JSC
Greenhouse "Tolmachevskij" Second stage is 9,4 ha. Novosibirsk region Financial partner: VTB Bank, JSC (VTB Group) (is included in “Gorkunov Group”, LTD)
Greenhouse "Obskoj", LTD 8,2 ha. Novosibirsk region Design engineer: Siberian Urban Planning Projects, LTD Investor: Gorkunov Group, LTD
208 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 «Renova» Group Customer, investor Project Region Partners Dutch and Russian equipment will be used in the project
General design engineer / general contractor / technical customer / equipment supplier: LTD Research and Production Company FITO
Greenhouse "Sosnogorskij", LTD 12,6 ha. Komi Republic Project operator: AGRO Management, LTD (is included in Renova Group)
Resource provider: Branch of JSC Т Plus Sosnogorsk Thermal Electric Power station
Financial partner: Russian Agricultural Bank (Rosselkhozbank), JSC Project operator: AGRO Management, LTD
Greenhouse "Novocheboksarskij", General design engineer / general contractor / technical customer / LTD 23,6 ha. Chuvash Republic equipment supplier: Research and Production Company FITO, LTD (is included in Renova Group)
Financial partner: Russian Agricultural Bank (Rosselkhozbank), JSC
LTD "Holding UMMC-Agro" Customer, investor Project Region Partners
"Teplichnoe", JSC General contractor and general design engineer: LTD Research and (is included in “Holding UMC-Agro”, 24,7 ha. Sverdlovsk region Production Company FITO LTD)
209 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 INVESTMENT PROJECTS OF INDEPENDENT ENTERPRISES
Customer, investor Project Region Partners General contractor: TeplicEnergoStroi, LTD "Bogorodskije ovoshchi", LTD Third stage - 35 ha. Moscow region (Victoria Estate Management, LTD) General design engineer: TeplicEnergoStroi-proekt, LTD Full-service project management: Razvitie Corporation, JSC Belgorod region
Contractor: LTD Manufacturing Commercial Company AGROTIP +7 (495) 940-87-54, 704-05-40, 706-38-11 [email protected] http://agrotip.ru
Design engineer (power facilities): Cogeneration RU, LTD (VVP "Greenhouse", LTD First stage - 25 ha. Belgorod region Engineering) (Investment Company "Sigma Capital")
General contractor (power supply systems): SVEL Group, JSC
Contractor (gas pipeline construction): Gazprom Gas Distribution Belgorod, JSC
Supplier: Belgorod concrete products and pipes plant, LTD
Financial partner: Gazprombank, JSC General design engineer: TeplicEnergoStroi-proekt, LTD
General contractor: InterStroiGrupp, LTD
Project management: Special Economic Zone of Industry Type "Agro-Inwest", LTD Fourth stage - 44 ha. Kaluga region “Kaluga”, JSC
Contractor (design and construction of power park): Cogeneration RU, LTD (VVP Engineering)
Glass: LTD «MIR STEKLA» Marenin Iurii Nikolaevich "PROMPARK", LTD 6 ha. Orel region Financial partner: Sberbank, JSC
210 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Design engineer: Regional State-Financed Institution Kurskgrazhdanproekt
General design engineer: Design-engineering company "ECOPRODUCT", LTD 7 + 4 ha. Orel region AGROPROMPROJECT, LTD
General contractor: AGRO-EXIM, LTD
Financial partner: Sberbank, JSC Agricultural holding "Vyborgec", LTD 14 ha. Leningrad region Design engineer: TeplicEnergoStroi-proekt, LTD Greenhouse "Botanica", LTD General contractor: TeplicSpecServis, LTD (the fourth investment project of GC 20 ha. Volgograd region "Radezh" as part of the project Financial partner: VTB Bank, JSC (VTB Group) "Ovoshchevod" General design engineer: ESK-proekt, LTD
Agrocomplex "Martynovskij", LTD Design engineer - general contractor: LTD Manufacturing (Agrocomplex “Churilovo”, LTD) Commercial company AGROTIP
12,5 ha. Kurgan region Now “Churilovo” has 25 ha. The launch of the German gas engines "MWM" After the launch of 2 projects it will have
62 ha. Financial partner: Kurgan regional branch, Russian Agricultural Bank (Rosselkhozbank), JSC General design engineer: ESK-proekt, LTD Agrocomplex "Gornyj" LTD, 25 ha. Chelyabinsk region (Agrocomplex “Churilovo”, LTD) Project management: Monotowns Development Fund, Non-profit Organization Design engineer of the first stage «PF-AgroGroup», LTD Greenhouse «Yugagroholding» Second stage - 10 ha. Chechen Republic Design engineer of the second stage TeplicEnergoStroi-proekt
211 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 LTD "GORKUNOV GROUP" – FLOWER PRODUCTION IN GREENHOUSE CONDITIONS Customer, investor Project Region Partners
Greenhouse "Novosibirskij", LTD 6,8 ha. Novosibirsk region (is included in “Gorkunov Group”, LTD)
212 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ADDENDUM 3. KEY CONTACTS IN RUSSIA AND KAZAKHSTAN
1. KEY GOVERNMENTAL AGRICULTURAL CONTACTS IN RUSSIA AND KAZAKHSTAN
Name Contacts Russian Federation Address: 107139 Moscow, Orlikov рereulok, d. 1/11 The Ministry of Agriculture of the Russian Phone / Fax: +7 (495) 607-80-00 Federation http://mcx.ru/ Address: 107139 Moscow, Orlikov pereulok, 1/11 The Federal Service for Veterinary and Phone / Fax: +7 (495) 607-51-11 Phytosanitary Surveillance (Rosselkhoznadzor) http://www.fsvps.ru/ Address: 121087 Moscow, Novozavodskaya str., 11/5 The Federal Customs Service of Russia Phone: +7 (499) 449-7675 http://www.customs.ru/ Address: 109074 Moscow, Kitaygorodskiy proezd 7 The Ministry of Industry and Trade of the Phone: +7 (495) 539-21-87 Russian Federation http://minpromtorg.gov.ru/en/ Address: 125040 Moscow, Pravdy str., 26 Phone: +7 800 200 5395 AO «Rosagroleasing» E-mail: [email protected] https://www.rosagroleasing.ru Address: 107139 Moscow, Orlikov Pereulok, 1/11 Phone: +7 National register of selective breeding results (495) 607 - 6827 admitted for using E-mail: [email protected] http://gossort.com/ Kazakhstan Address: 010000 Nur-Sulan, Kenesary str., 36 Ministry of Agriculture of the Republic of Phone: +7 (7172) 555-995 Kazakhstan E-mail: [email protected] mgov.kz «Committee of State Inspection in the Agro- Address: Almaty, Makataeva str., 15 Industrial Complex of the Ministry of Agriculture Phone: +7 (727) 397-50-36 of the Republic of Kazakhstan» Address: 010000 Nur-Sultan, Abaiy prospect, 13, business The State Institution «State Commission for the center “Isker”, 11th floor Testing of Agricultural Crops» of the Ministry of Phone: +7 (7172) 73-10-39, 73-10-40 Agriculture of the Republic of Kazakhstan Web: www.goscomsort.kz E-mail: [email protected] Address: 010000 Nur-Sultan, Respubliki str., 24 Phone: +7 (7172) 70-56-20 «National managing holding «KazAgro» Web: www.kazagro.kz E-mail: [email protected] Reference source: websites of companies, media data
213 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 2. MAIN ASSOCIATIONS / BUSINESS GROUPS AND THEIR CONTACTS IN RF AND KZ
Name Contacts Russian Federation Address: 123376, Moscow, Rochdelskaya str., 20 National Union of Fruit and Vegetable Phone: +7 (495) 9262560 Producers (Fruit and Vegetable Union) E-mail: [email protected] www.ovoshnoysouz.ru Address: 109390, Moscow, Аrtiukhinoi str., 6B, office 501 Phone: +7 (495) 6510839 Association «Greenhouses of Russia» E-mail: [email protected] http://rusteplica.ru/ Kazakhstan Address: Nur-Sultan, Kunaeva str., 8, business center “Izumrudniy kvartal”, block “B”, 26th floor The National Chamber of Entrepreneurs of the Phone: +7 (7172) 919393 Republic of Kazakhstan «Atameken» Web: atameken.kz E-mail: [email protected] Address: 050005, Almaty, Raiymbeka prosp., 312 «Kazakh Research Institute of Mechanization Phone: +7 (727) 2479600, (727) 2479607 and Electrification of Agriculture» E-mail: [email protected] http://kazars.kz Address: Almaty, Кultobe str., 1 Kazakh Scientific Research Institute of Plant Phone: +7 (727) 2467366, (747) 2709937, (708) 2429128 Protection and Quarantine named after J. E-mail: [email protected] Zhiymbaev https://www.niizkr.kz/ JSC «NATIONAL COMPANY KAZNEX Address: 010000 Nur-Sultan, str. Kunaeva, 2, 6th floor INVEST» Phone: +7 (7172) 620 620 National Company for Investment Support and E-mail: [email protected] Promotion http://www.invest.gov.kz Reference source: websites of companies, media data
214 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 3. KEY RUSSIAN AND KAZAKH MARKET PLAYERS IN EACH PRODUCT CATEGORY
The largest producers of greenhouse vegetables
Name Contacts Russian Federation Address: Moscow Phone: 7 (495) 514-00-99 AGRICULTURAL HOLDING «EKO-KULTURA» E-mail: [email protected] www.aph-ecoculture.ru Saint Petersburg, Embankment river Moika, 7А, office 501 Ltd «MANGEMENT COMPANY «TECHNOLOGII Phone: +7 (812) 327-39-29 TEPLICHNOGO ROSTA» Web-site: www.ghgt.ru www.ghgt.ru Moscow, Profsoyuznaya str., 56 Phone: +7 (495) 246-03-30 – Moscow +7 (812) 646-50-42 – Saint-Petersburg DOLINA OVOSHCHEJ Group» +7 (912) 770-16-91 - Chelyabinsk E-mail: [email protected] www.dolina-o.ru Karachayevo-Cherkessian Republic, Ust-Dzheguta-3 Phone: +7 (863) 309-07-10, 309-07-15 JSC «AGROCOMBINAT YUZHNY» E-mail: [email protected] www.sistema.ru, www.ahstep.ru/yuzhny-agrokombinat Krasnodar Krai, Plastunovskaya Phone: +7 (861) 277-45-54, 861-49-30 Ltd «GREENHOUSE «ZELENAYA LINIYA» Web-site: http://magnit-info.ru http://magnit-info.ru Zelenodolskij municipal district, Osinovo, Gagarin Str., 15 Phone: +7 (843) 524-21-21 Ltd «Greenhouse «Majskij» E-mail: [email protected] www.maiski.ru Republic of Kazakhstan Family Farm «Adelya» Address: South-Kazakhstan region LLP «BRB APK» Address: Almaty region A part of Agricultural Holding «NAK» LLP «Greenhouse Kazakhstan» Address: Aktobe region Address: Kapshagay, Almaty region Phone: +7 (727) 244-66-41 ext. 101/107, 350-10-19 LLP «Green Land Alatay» +7 (72153) 790-02, 406-99 E-mail: [email protected] www.gla.kz Address: Akmola region LLP «Teplichniye Tekhnologii Kazakhstana» Phone: +7 (71645) 373-93 LLP «KazTomat» Address: Pavlodar region 4, Sary-Arka Str., Topar settlement, Abayskiy district, LLP «Toparskiye teplitsy» Karaganda region, 100116 www.topar.kz Reference source: websites of companies, media data
Propagation material
Name Contacts Russian Federation Moscow, ul. Novodmitrovskaya, 2, building 2, 7 floor Phone: +7 (800) 550-47-02, +7 (499) 686-10-56 Group of companies «GAVRISH» E-mail: [email protected] www.gavrish.shop Аgroholding «Poisk» Moscow region, Ramensky district, Vereya Ostrovetskoe 215 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Name Contacts highway, p. 500, 501 Phone: +7 (495) 660-93-73, 992-56-57 E-mail: [email protected]; [email protected] Online store www.online.semenasad.ru www.semenasad.ru Republic of Kazakhstan Official representation of Russian company Almaty, mcr. dstr. Aksay, 3а, 62 «GAVRISH» in Kazakhstan Phone: +7 (705) 411-11-60 Almaty, Al-Farabi venue, 5, business centre «Nurly Tau», building 2а, 3 floor LLP «Syngenta Kazakhstan» Phone: +7 (727) 277-78-11, 277 78 16 E-mail: [email protected] www.syngenta.kz
Greenhouse construction
Name Contacts Russian Federation Moscow, settlement Sosenskoe, Sosenki, 138 Phone: +7 (495) 647-89-30, 228-78-47 Research and Production company «FITO» E-mail: [email protected], [email protected] www.fito-system.ru, www.lis-agro.com Address: Saint Petersburg CJSC «Schetelig Rus» Phone: +7 (812) 336-92-23 the representative of Finnish Concern «Schetelig E-mail: [email protected] Oy» www.schetelig.com Kaluga region, Maloyaroslavec, Karla Marxa str., 3А Ltd «TeplitsSpetsServis» Phone: +7 (48431) 523-45, 523-46, +7 (910) 860-30-30 Web-site: www.stroitelstvo-teplic.ru «TES-PROJECT» www.tesproject.ru Phone: +7 (495) 769-38-19 «PF-AGROGRUP» www.pfagro.ru Voronezh, Svoboda str., 69 Phone: +7 (800) 500-60-48, +7 (961) 184-69-15 Group of companies «Teplichnye sistemy» E-mail: [email protected] ghsystems.ru Kursk region, Kursk district, Voroshnevo, Sosnovaya str., 1/1 Actual address: 115230, Moscow, Kashirskoe shosse, 19-2 CJSC «Kurskpromteplica» - Phone: +7 (4712) 735-400, +7 (495) 722-55-61 JSC «GlavTekhKonstrukciya» E-mail: [email protected] www.glavtk.ru Lipetsk region, Gryazinskij district, Kazinka, the territory of special economic zone «Lipetsk», building 46, 2, office 1 Ltd «Lipeckij Zavod Teplichnyh Konstrukcij» Phone: +7 (4742) 57-00-06, 57-00-09, 57-57-50, 57-57-05 Web-site: www.lztk.ru Mirnaya str., 3, Maloyaroslavec, Kaluga region, 249092 Phone: +7 (495) 647-04-44, ext. 1035, 1000 Ltd «AGRISOVGAZ» E-mail: [email protected] www.agrisovgaz.ru Republic Tatarstan, Naberezhnye Chelny, Profilnaya str., 53 Phone: +7 (8552) 77-85-80 Company «TATPROF» E-mail: [email protected] www.tatprof.ru Branch in Moscow: Bagrationovsky pr-d, d. 7, of. 321 Phone: +7 (800) 700 62 82 ext. 2 «GlavFundament» Ltd E-mail: [email protected] www.glavfundament.ru Ltd «MIR STEKLA» Penza, Gagarin str., 21
216 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Name Contacts Phone: +7 (8412) 20-25-10, 20-27-89, +7 (800) 250-47-89 E-mail: [email protected] www.mir-stekla.ru «SIMVOL» (Ltd «EXPO GLASS») Web-site: www.firmasimvol.ru Moscow region, Shchyolkovo, Zavodskaya str., 16 JSC TRADE HOUSE «RGB» - the exclusive Phone: +7 (495) 780-72-03 representative of OJSC «Gomelsteklo» in Russia E-mail: [email protected] www.gomelglass.by Ryazan, Bogoliubov str., 109 Phone: +7 (800) 511-89-75, +7 (4912) 51-20-27 Ltd «AGROMAR» E-mail: [email protected], [email protected] www.aglass.su Republic of Kazakhstan Shymkent, Abajskij district, mcr. dstr. Asar-2 Phone: +7 (7252) 95-58-40, (778) 165-64-24 LLP «Zero Max Kz» E-mail: [email protected], [email protected] https://19982-kz.all.biz
HEATING & POWER EQUIPMENT
Name Contacts Russian Federation Moscow, Presnenskaya str., 10А JSC «VAPOR» - the official distributor of gas Phone: +7 (812) 207-10-37, +7 (495) 933-01-87 engines GE JENBACHER E-mail: [email protected], [email protected] www.aglass.su Saint Petersburg, Torzhkovskaya str., 5, office 209 Phone: +7 (812) 336-33-01, 336-33-04 «Electrosystems» E-mail: [email protected] www.electrosystems.ru Chelyabinsk, Kirova str., 159, office 1610, Business center «Chelyabinsk» Group of companies «MKS» Phone: +7 (351) 222-06-36 E-mail: [email protected] www.mks-group.ru Address: Saint Petersburg Ltd «Mejregional’naya Enrgeticheskaya Phone: +7 (931) 372-10-89 kompaniya» (IEC Ltd.) is included into Group of E-mail: [email protected] companies «TES DKM» www.iec-energy.ru, www.iec-energy.by Moscow region, Schelkovo, Khotovskaya st., 34, bld. 2 Phone: +7 (495) 504-15-40 Ltd «KOROLEV AGRO» E-mail: [email protected] www.korolevagro.ru
CLIMATE CONTROL AND (LED) LIGHTING
Name Contacts Russian Federation Moscow, Ryazanskij avenue, 30/15 Phone: +7 (495) 232-42-93, 617-11-70 Group of companies «REFLUX» E-mail: [email protected], [email protected] www.reflux.ru Voronezh, Krasnodonskaya str., 1Б, office 1 Phone: +7 (473) 200-04-35, 221-51-90, 276-27-87 Ltd NPP «NFL» E-mail: [email protected] www.nppnfl.ru Lighting systems «SVETOGOR» of the company Moscow, Luzhnetskaya nab., D. 2/4 217 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Name Contacts LLC STK «STROYTEH» Phone: +7 (495) 788-80-23 E-mail: [email protected] stk-stroytech.ru
INPUT FOR CROP GROWING
Name Contacts Russian Federation Moscow, pos. Schapovskoe Phone: +7 (495) 996-72-47, +7 (926) 206-74-21 Ltd «Greenhouses Technologies» E-mail: [email protected] www.technology-greenhouse.ru Moscow, Yaroslavskoye high way, 146, building 2, Hanoi- Moscow multifunctional center «AgroSoil Trade» Ltd Phone: +7 (495) 481-22-32 E-mail: [email protected] www.agrosoiltrade.ru «URALCHEM» solar-agro.ru Kostroma region, Bui, Chapaev st., 1 «Buisky khimicheskii zavod» JSC (Buisky Phone: +7 (49435) 44-182, 44-197 Chemical Plant) E-mail: [email protected] www.bhz.ru Republic of Kazakhstan LLP «KAZAZOT» www.kazazot.kz Almaty, Bostandykskij district, Al-Farabi avenue, 17/1, Multifunctional complex «Nurly-tau», building 5b, office 2 LLP «EUROCHEM-KARATAU» Phone: +7 (727) 311-51-52 E-mail: www.eurochemgroup.com Almaty, mcr. dstr. Aksaj – 3а, 62а, office 32 Phone: +7 (727) 301-34-19, 301-35-30 LLP «KosAgroKommerc» E-mail: [email protected] www.kosagro.kz Almaty, avenue Abylaj han, 135, business center «White Tower» LLP «ALEM AGRO HOLDING» Phone: +7 (727) 266-39-81, 266-39-82 E-mail: [email protected] www.alemagro.kz
GREENHOUSE MATERIAL
Name Contacts Russian Federation Moscow, Troitsk, Sosnovaja street, industrial area Ltd NPK «Rassadnyi servis» Phone: +7 (495) 640-47-48, (925) 589-76-96 E-mail: [email protected] Moscow Region, Khimki, Communalnyi passage, 30 Phone: +7 (495) 748-51-20 Ltd «Walzmatic» E-mail: [email protected] www.walzmatic.com Republic of Kazakhstan Almaty, avenue Seifullinа, 458/1, business centre «Majsat», office 111 LLP «Kaz Poliv» Phone: +7 (7272) 790-279, +7 (705) 111-58-62 [email protected] www.kazpoliv.com LLP «Baro-Max» www.baromax.kz
218 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14
CROP PROTECTION
Name Contacts Russian Federation Address: Moscow Ltd «AgroSoil Treid» www.agrosoiltrade.ru Novosibirsk region, Berdsk, 11/1 Khimzavodskaya str. «Sibbiopharm» Ltd. Phone: +7 (915) 006-59-10, (926) 571-06-52 www.sibbio.ru Voronezh, 1 Shishkova str. Phone: +7 (473) 261-91-51 «Bumblebee Company» E-mail: [email protected] http://bumblebeeco.ru Moscow region, Lytkarino, Turayevo indus. area, builidng 38 Phone: +7 (495) 369 50 74, (963) 724 49 28 Biological Pollination Service «COMPAS» Ltd. E-mail: [email protected] www.sbo-compas.ru www.compasltd.com Moscow, Tsandera St., 6 JSC Firma «Avgust» Phone: +7 (495) 787-08-00, 787-08-20 E-mail: [email protected] - www.avgust.com Republic of Kazakhstan Almaty, Raiymbeka str., 312 LLP KAZ BIO PROTECT Phone: +7 (705) 238-53-95, +7 (701) 675-52-17 www.kazbioprotect.kz Almaty, Raiymbeka str., 415/1 LLP «BIOGRIN TARIM» Phone: +7 (747) 966-37-71 Nur-Sultan, Korgalzhinsky highway, 3 В LLP «Astana nan» Phone: +7 (7172) 792-988 www.astana-nan.kz LLP «Agrokhimiia» www.agrochemicals.kz
AFTER HARVEST LINES
Name Contacts Russian Federation Moscow, 17 Dutlerova str., business centre «NEO GEO» Phone: +7 (495) 775-16-83 «АGROPAK» Ltd. E-mail: [email protected] www.agropak.ru Saint Peterburg, Optikov str., 4, build. 2, liter А, business center «Lahta», office 3-Н «LIDER-PACK» Ltd. Phone: +7 (800) 550-71-97, +7 (812) 317-01-70 E-mail: [email protected] http://liderpack.net Moscow, Metro VDNH, Yaroslavskaya str., 8, build. 5 АGROLINE» Ltd. (Russia) Phone: +7 (495) 749-95-51 www.agroline.su Moscow, 2-nd Sinichkina str., 9а, business centre «Sinitsa Plaza» «INTERAGRO» Ltd. Phone: Phone: +7 (495) 783-94-84 E-mail: [email protected] www.interagro.info Saint Petersburg, 80 Kubinskaya str., lit. B, premise 11N, office 606 JSC «ТAURAS-FENIX» Phone: +7 (800) 200-49-10, +7 (812) 494-88-08 E-mail: [email protected] www.taurasfenix.com «Komus-upakovka» Web-site: www.komus-upakovka.ru/catalog/vegetables 219 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 Name Contacts Novosibirsk, 220 Krasniy prospect str, build. 32 Phone: +7 (383) 210-62-69 «Interbag plus» Ltd. E-mail: [email protected] www.interbag.ru
LOGISTICS OF PLANT PRODUCTS
Name Contacts Russian Federation Address: Saint Petersburg «Aircool» Ltd. www.aircool.pro
CONSULTANCY
Name Contacts Russian Federation Moscow, 6B Artyukhinoy str., office 501 Phone: +7 (495) 651-08-39 The «Greenhouses of Russia» Association www.rusteplica.ru www.rusteplica.ru/en Moscow, 20 Rochdelskaya str., Phone: + 7 (495) 926-25-60, +7 (985) 639-10-12 The «National Union of Vegetable Producers» E-mail: [email protected] www.ovoshnoysouz.ru Moscow, Kostyakova St., 10 Phone: +7 (495) 125-12-21, +7 (499) 977-56-08, 977-51-33 Ltd PKF «Teplichnye Tekhnologii» E-mail: [email protected] www.ght.ru Address: Saint Petersburg «Agriconsult group» www.agricons.ru/en Saint Petersburg, Embankment of the river Moika, 7А / 501 Ltd «MANGEMENT COMPANY «TECHNOLOGII Phone: +7 (812) 327-39-29 TEPLICHNOGO ROSTA» www.ghgt.ru Republic of Adygea, Maykop, Shosseynaya st., 12, 50 Phone: +7 (495) 374-67-10 «AB Tsentr» E-mail: [email protected] www.ab-centre.ru Ivanovo region, Ivanovo, Radishcheva st., 18, of. 72 Ltd «Greenland» Phone: +7 (963) 214-12-34 E-mail: [email protected] Phone: +7 (921) 946-71-39 Individual Entrepreneur Elinson Galina Vitalievna E-mail: [email protected] Moscow, Novinsky Boulevard/bld. 31/Novinsky Trade Center Phone: +7 (843) 526-55-06 «NEO Tsentr» E-mail: [email protected]; [email protected] www.neoconsult.ru
220 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ADDENDUM 4a. KEY CONTACTS & EXHIBITIONS RUSSIA
The table shows annual exhibitions, so the dates are almost the same for years.
Name Place Time Contacts RUSSIAN FEDERATION Address: Prospect Mira, 119, Moscow, Exhibition of pavilion №75 «The greenhouse Achievements of the Phone: +7 (499) 1780159, +7 6510839 May/June market of Russia» National Economy E-mail: [email protected] (VDNKh), Moscow Organizer - Association «Greenhouses of Russia» XXVI International Exhibition of Plant Address: Prospect Mira, 119, Moscow, Exhibition of Growing, Floriculture, pavilion №75 Achievements of the Gardening, August Phone: +7 (499) 178-01-59, +7 (495) National Economy Beautification and 651-08-39 (VDNKh), Moscow Landscape Urbanism https://expo.vdnh.ru/calendar/ «Flowers and City» Address: Prospect Mira, 119, Moscow, Exhibition of «Zolotaia osen’ - pavilion № 69, 75 Achievements of the 2020» October Phone: +7 (499) 178-01-59, +7 (495) National Economy («Golden Autumn») 651-08-39 (VDNKh) https://expo.vdnh.ru/calendar/ Address: Balchug str., 1 Phone: +7 (495) 109-95-09 E-mail: Annual International [email protected] Investment Forum Hotel «Baltschug https://www.greenhousesforum.com «Greenhouse December Kempinski», Moscow Complexes of Russia The Forum is supported by the Ministry of and the CIS» Agriculture of the Russian Federation; profile partner Association «Greenhouses of Russia». Address: Moscow region, Krasnogorsk International district, Krasnogorsk, Mejdunarodnaia str., Exhibition of the IEC «Crocus d. 16, 18, 20 June Packaging Industry Expo», Moscow Phone: +7 (499) 750-08-28 «RosUpack» E-mail: [email protected] www.rosupack.com Interlight Russia | Organizer of the exhibition - LLC Messe Intelligent building Frankfurt RUS Russia — the Address: 125167, Leningradsky prospekt international exhibition IEC «Expocentr», September 39, p. 80 of lighting, security Moscow Phone: +7 (495) 649-87-75 systems, building [email protected] automation and interlight-moscow.ru.messefrankfurt.com electrical engineering
221 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14 ADDENDUM 4b. KEY CONTACTS & EXHIBITIONS KAZAKHSTAN
KAZAKHSTAN Date Name, place, brief description
KazAgro - KazFarm
Nur-Sultan, Exhibition Center «Korme» Dostyk str., 3 http://kazfarm.kz/
International exhibition of agriculture and food industry. Thematic sections of the exhibition: Agricultural machinery and spare parts. October Crop production: crops, genetics, selection, varieties, seeds, fertilizers, agrochemistry. Irrigation and drainage. Harvesting and storage. Packaging equipment and materials. Agricultural construction, warehouses. Greenhouse economy, horticulture. Biotechnology, quality control of agricultural raw materials and products. Equipment for food and processing industry. Agricultural science, education, publications.
AgroWorld Kazakhstan
November Almaty, Kazakhstan Center Business Cooperation «Atakent», Timiriazeva str., 42 https://www.agroworld.kz/ru/
Central Asian International Exhibition «Agriculture»
WorldFood Kazakhstan
November Almaty, Kazakhstan Center Business Cooperation «Atakent», Timiriazeva str., 42 https://foodexpo.kz/ru/
Central Asian International Exhibition «Food industry»
KazUpack
November Almaty, Kazakhstan Center Business Cooperation «Atakent», Timiriazeva str., 42 https://www.kazupack.kz/ru/exhibition-ru
Kazakhstan international exhibition «Packaging, label and printing»
AgriTek / Farm Tek
March Nur-Sultan http://agriastana.kz/ru/index.html
International specialized agricultural exhibition
Greenhouses - Vegetable Growing – Irrigation - Flowers
April Almaty Jandosova str., 51, KazNII, office 606 E-mail: [email protected] http://www.greenhouses.kz/exhibition Reference source: websites, media data
222 Ltd. «Rusmarketconsulting» www.agricons.ru, [email protected] +7 (812) 712 50 14