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Project financing of vegetable import substitution in Russia

The idea of the project is to create seed-breeding centres and large greenhouse complexes under the conditions of import substitution of vegetables, which are now limited by Russian sanctions, said Deputy Agriculture Minister Dmitry Yuriev.

It is recalled by the Director of Department of Economic Affairs and State Support for Agriculture Anatoly Kutsenko that vegetable and potato production is currently subsidized by short-term and investment loans; economically significant regional programs are supported by the government.

The government support also intends to develop and implement new resource-saving technologies of greenhouse vegetable-growing. The financing is aimed at creation of new and modernization of existing greenhouses, at introduction of microclimate systems in greenhouses.

Prior to the imposition of sanctions, it was expected to reach self-sufficiency in potatoes in three years, and to decrease import dependence by a third. Now the level of self-sufficiency in vegetables in Russia is 87.5%, in potatoes 99.8%. However, the Ministry is reviewing the plan, and by August 30th, an update strategy of import substitution will be provided.

According to statistics, in 2013 Russia produced 14.7 million tonnes of vegetables, including 1.2 million tonnes of greenhouse vegetables. Potato production increased by 2.3% and amounted to 30.2 million tonnes - which is 5% higher than the average for 2008-2012.


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