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Russia can’t produce enough tomatoes

Despite the restrictions imposed on the sale of foreign vegetables in Russia, domestic producers of fruit and vegetables will not be able to fill the market with tomatoes and cucumbers for a long time yet.

Greenhouse growers are trying to fulfill a program of import substitution but it is not working well. Last year the plan to increase the quantity of greenhouses was only 50% fulfilled. If before 2020, another 2,000 hectares of greenhouses are not built in the country, then the country will have to return to foreign vegetables. The Ministry of Agriculture reported that in 2015, 5% more vegetables were harvested than the year before, while imports of these products fell by 30%.

Officials believe that these figures demonstrate a successful attempt to replace foreign tomatoes. Investments in this area amounted to about 30 billion rubles, and new greenhouses were built on 200 hectares. 

However, in the face of declining living standards, not only for consumers, but also producers, many projects have been suspended or curtailed. Out of 60 agricultural enterprises, a little more than 20 greenhouses have reached operation level. Entrepreneurs do not have enough money to invest, so only 47% of the planned development of agriculture in the country over the last year has been carried out.

Domestic agriculture depends on the value of the ruble. Almost all the equipment needed for growing greenhouse plants is produced abroad. The technology for planting and the seeds themselves are also imported. Therefore, due to problems with the ruble, greenhouse owners costs increased by 64%. Prices of the finished products also increased. 

(1 Russian Ruble=0.015 USD)

Source: newvz.ru

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