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Restart of the greenhouse complex: overview of the vegetable market in Ukraine

A year has passed since PJSC "Greenhouse Complex" in Kalynivka, Kyiv region, resumed operations after a one-year shutdown due to the proximity of the front line during the Russian invasion. Most workers had to leave the dangerous area. The complex missed out on 18,000 tons of tomatoes during the shutdown. Operations resumed on March 23, 2023, covering 35 hectares. Last year, due to a delayed start, only 11,000 tons of tomatoes were harvested. This year, aiming for 16-17,000 tons, the complex has fully restored its production cycle.

Meanwhile, niche greenhouse complexes such as Umansky, Zhytomyrsky, and Kamiansky continued to operate normally throughout the two years of war.

Regarding the current situation in this segment of vegetable production, "Gardening the Ukrainian Way" magazine interviewed Yevhenii Chernyshenko, owner of the "Greenhouse Complex" and president of the "Greenhouses of Ukraine" association. Chernyshenko discussed challenges in restarting operations after a year-long hiatus, highlighting the difficulty in obtaining a loan. Despite securing financing from Raiffeisen Bank, he expressed confidence in returning to standard operations this year and aiming to operate without loans by 2025. He noted labor shortages as a major challenge last year, with efforts made to recruit and raise salaries.

In terms of current processes, the complex is currently in the plant formation stage, showing good development despite slightly less sunlight this March compared to the previous year. However, higher spring temperatures have saved energy costs.

Regarding last year's harvest volumes at greenhouse complexes, Chernyshenko provided a breakdown of the largest producers within the Association of Greenhouses of Ukraine for 2023:

- PJSC "Greenhouse Complex": tomatoes, 11,000 tons; cucumbers, 0.

- State-owned enterprise "Umansky Greenhouse Complex": tomatoes, 9,000 tons; cucumbers, 8,000 tons.

- LLC "Dniprovsky": tomatoes, 2,300 tons; cucumbers, 700 tons.

- LLC "Ukraflora-Vinnytsia": tomatoes, 1,100 tons; cucumbers, 1,900 tons.

- LLC "Agroconcern", Rivne: tomatoes, 1,000 tons; cucumbers, 1,000 tons.

- Total: tomatoes, 24,400 tons; cucumbers, 11,600 tons.

Discussing the dependency on gas heating, Chernyshenko mentioned that some complexes have partially transitioned to alternative heating methods. For instance, "Ukraflora" in Dorozhne village, Vinnytsia Oblast, uses wood chips alongside coal, while the Umansky greenhouse complex operates on straw, wood chips, and gas concurrently. Surprisingly, gas prices unexpectedly dropped to 316 EUR per 1,000 cubic meters during the winter of 2023 and have remained stable since then. Chernyshenko believes this price level allows complexes to operate effectively.

The situation has improved, but the decision regarding cucumbers is influenced by both economic and political factors related to gas pricing.

The choice to discontinue cucumber cultivation is indeed strategic. It phased out 12 hectares of old greenhouses, some of which were 42 years old. The last time was introduced new greenhouses into production was in 2017.

The "Greenhouse Complex" is gearing up for a transition to alternative heating sources, considering a complete shift away from gas heating by summer. The project, involving Ukrainian-made woodchip boilers, requires significant investment, likely in the tens of millions of hryvnias, with plans to launch by the end of 2025, pending associated risks.

Regarding last year's vegetable import impact, prices sharply declined in May-June and began to rise towards September-October. Import volumes weren't significantly higher than in pre-war years, particularly as Turkey faced supply disruptions at the port of Odesa and increased logistics costs.

Within our association, no initiatives for new greenhouse areas have been undertaken. However, "Galicia Greenery" near Lviv has built a new greenhouse.

No new projects have been announced yet, as modern greenhouses require substantial time to recoup investments, up to 13–14 years, and aren't currently very profitable given associated risks. Greenhouses rely on gas, water, and electricity, which are in short supply due to damaged energy infrastructure.

Larger complexes predominantly cultivate tomatoes, while smaller ones focus on cucumbers. Medium-sized complexes grow both cucumbers and tomatoes.

Tomato hybrids mostly originate from European countries. Approximately 52% of our area is occupied by pink hybrids, with the rest comprising red round, plum red, yellow, and cocktail varieties. Hybrid choices consider market conditions, including selling price and consumer demand.

Over the past five years, there has been a shift from red round tomatoes to pink ones, with plum tomatoes and cocktail varieties gaining popularity. Tomato prices from June onwards are expected to be around 1.2 -1.4 EUR/kg, dropping to an average of 0.9 EUR/kg or even 0.7 EUR/kg in July.

source: agrotimes.ua

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