April 5 2007, 09:17

Russia may have the largest fruit farm in Europe

Volgograd juice company "National Food group "Pridonye orchards" OJSC plans to build up investments to the development of their own intensive orchards. The objective is to increase the orchard acreage up to 10 thousands hectares by 2012. According to information provided by "Trade Newspaper", "Pridonye Orchards" company intends to plant up to 500 thousands of seedlings each year so that the acreage of the orchards could reach 10,000 ha. If this plan is implemented, the enterprise will become the largest fruit producer in Europe. However, several companies on the territory of the former USSR, including Ukraine, have already claimed about the same goal.

"It costs 10-20 thousands dollars per hectare to establish now an intensive orchard. So "Pridonye Orchards" will spend 100-130 thousands dollars to expand 2,200 ha of orchards they have at the present moment", Andriy Yarmak thinks, the expert of ""Agrooglyad: Vegetables and Fruits" journal". The expert believes, the most serious obstacle to implement the mentioned plans is probably not money, but lack of experience in organizing the production process (labor resources in particular) on such a huge enterprise. According to the most conservative estimate, the enterprise will have to hire more than 10,000 of seasonal workers in the harvesting season to pick apples on 10 thousands hectares of orchards.

In addition to the problems with the labor resources, the enterprise should be involved in the professional handling, storage, packing and wholesale trade of fresh fruits despite of "juice" specialization of the company. It is possible to earn two-three-fold greater profit selling marketable fresh apples rather than processing apples into juice. Nevertheless, the own production of raw materials will provide "Pridonye orchards" with a certain advantage among the competitors on the juice market of Russia.

According to the specialists' evaluations, "Pridonye Orchards" company belongs now to three leading juice companies in Russia. This company plans to increase juice production up to 150,000 tons by 2012 (to compare: as of today, Russia produces 300,000 tons of juice products). Meanwhile own production should provide 50% of raw materials. The third along, juice and nectar-bottling unit is planned to be launched in the third quarter 2007 on the enterprise. Simultaneously the company constructs and prepares to launch 4,500 sq. m storage terminal.