Russia: BelgorodAgro to build 70 hectare of UltraClima in Belgorod

BelgorodAgro plans to build a greenhouse complex in the town of Stary Oskol in the Belgorod region. By 2017, the company intends to build a complex (in four stages) with a total production capacity of 26 thousand tons of cucumbers and tomatoes a year on a plot of 70 hectares. It will cost 5.6 billion rubles (124.2 ml €). Experts believe that, despite the implementation of several similar projects, the company's products will be in demand throughout the Central Federal District of Russia, but only if effective marketing strategy is promoted.

The construction starts in 2014. According to a local source, the greenhouses will use UltraClima technology from KUBO, which helps to reduce heating costs by 25% and increase productivity by 20% due to the complete isolation from the external air.

The investments in the project will amount to 5.6 billion rubles (20% - company’s own funds and 80% - a loan, borrowed "most likely" from Sberbank). According to the regional program "The development of production of greenhouse vegetables in the Belgorod region in 2013-2015", by the year 2016, 94.6 ha of greenhouses, of which 82.6 hectares of new greenhouses, should produce vegetables. Through this, the regional government expects that more than 44 thousand tons of greenhouse vegetables per year will be produced by 2016.

Experts agree on the "viability" of the project. However, they point out the possibility of "serious competition" from imported products. In these circumstances, an effective marketing strategy should be a priority for the company’s management. In addition, such projects have a long payback period and technologically they are very complicated. But government support of Belgorod region will help reduce the payback period up to 7-8 years.

Source: www.kommersant.ru