Russia: Retailer Magnet invests 350 million Euro for own vegetable production

Sergey Galitsky, the founder of Magnet supermarkets network plans to invest about 350 million Euro to his own agricultural facility. He shared this information with the Governor of Krasnodar Region, Mr. Alexander Tkachev, during their official meeting. As he pointed out, development of own vegetable production is his primary objective at present.

"We decided to grow local vegetables for our supermarkets. We are now collecting the crops from the area of 40 Hectares. Within next two years we plan to extend the area up to 120 Hectares."

According to his words, Magnet supermarkets network plans to invest about 350 million Euro to its own facilities providing the fresh vegetables. And as per the planned capacities, the vegetables producing complex of the Magnet network will be among the biggest complexes in Europe.

In 2010 mass media published the information that Magnet will invest 8 billion Rubles into construction of a greenhouse complex for growing tomatoes and cucumbers in Dinsky District of Krasnodar Region. At that time it was already clear to experts that the company had difficulties in finding reliable suppliers for fresh vegetables in the required volumes.

The investor to the project and the operating agent is ZAO Tander, a subsidiary company of Magnet, as Reuters information agency reports. Tander was granted the area of 200 Hectares in Stanitsa (village) Plastunovskaya for rent to be used for its greenhouses where vegetables will grow all the year round in sufficient volumes.