"Russia: "Economic situation doesn't affect our plans to increase business"

The greenhouse complex ‘Rostovsky’ hopes to reach full project capacity this year, which will equate to 9,600 tons of vegetables annually. Today, it is the largest project in this region for the cultivation of greenhouse vegetables.

The ‘Rostovsky’ project in Neklinovsky region of the Rostov oblast is realised by the Moscow company group ‘Fabrika Ovoshey’ (which sells products under this brand). The company was launched in June 2014, the cost of the project was more than €25 million and was implemented at the ‘Fabrika Ovoshey’ company’s own expense and with a credit line from the Vnesheconombank, to the amount of just over €20 million. The total area of the complex now stands at 16.6 hectares. Cucumbers, tomatoes and salad greens are the main crops cultivated at ‘Rostovky’ today. In addition, the company also now produces particularly sought-after in the market greens such as parsley, sorrel, basil, dill, and others. The plant's products are sold in the Rostov region, as well as in other regions of the Russian Federation.

“Up to today, we have harvested around 4,500 tons of vegetable produce. The realisation of project capacity, which amounts to 9,600 tons of vegetables annually, should be completed this year,” reported Chief agronomist Paul Leontiev to the news agency ‘RBK-Yug’. According to him the plans to increase the company’s capacity were not altered, despite the difficult economic situation. Nevertheless, the depreciation of currency was a significant "obstacle" to the development this year.

"As a significant part of the materials and equipment for greenhouses are produced abroad, the cost of the construction of the new complex grew with the devaluation of the rouble. In addition, we have to buy seeds, substrates, biological products, and more from abroad, as Russian counterparts are not always able to completely replace the necessary equipment and materials,” said Leontev.

Concerning this, for the ‘Rostovsky’ project the company noted that they give priority to goods produced in the Russian Federation, but of course, this is subject to appropriate quality.

"Today, Russian companies engaged in providing greenhouses seeds, the means of biological plant protection and other material of own production, are moving ahead in leaps and bounds, new varieties and hybrids vegetables are appearing, best practices are being implemented in plant protection, and very advanced systems are being produced for climate control and irrigation,” recognizes Leontev.

The ‘Rostovsky’ project is located in the Varenovka Neklinovsky area. It is included in the "100 priority investment projects of the governor of Rostov region".