January 30 2008, 13:52

"Capital Vegetables" plans to construct 30 ha of greenhouses in Rostovskaya region

"Capital Vegetables" company plans to construct the greenhouse complex of the total square of 30 ha in Rostovskaya region. The investments to the project will amount to RUR 1.3 billion ($50 mln.). The experts point at the relatively low cost efficiency of greenhouse business on the background of a high demand for the grown products.

Vladimir Zinchenko, the Chief of the Department of Agrarian Policy and Industry Development, Regional Ministry of Agriculture, told RBC daily that now "Capital Vegetables" are studying two variants of the location of their greenhouse complex - either in Neklinovskiy or Azovskiy districts of Rostovskaya region. "At the present moment the company is just considering the proposals. If the decision is made, the complex will be constructed during a year and a half", the official explained. The same as the representatives of "Capital Vegetables", he made no comments about the project.

On the condition of anonymity the source of RBC daily in the Regional Ministry of Agriculture specified that the complex would probably be constructed in Azovskiy district; the products will be predominantly supplied to Moscow.

Vasiliy Danilenko, the Chief of Agricultural Department, Neklinovskiy district, is familiar with the business plan of the company. He tells that the company plans to construct the sheltered greenhouse on 16 hectares; the closed-type enterprise with around 250 people of personnel will be created. "They want to rent exactly municipal land for 49 years; they have no desire to deal with the owners", the representative of the District Administration pointed out.

According to Mr. Danilenko data, the company intends to grow vegetables and fresh herbs; they will be primarily focused on tomatoes. The goal is to saturate the market of Rostov and the region, and the remnants will be supplied to the other regions including Moscow. The annual turnover of the enterprise should amount to RUR 500 mln. ($20.4 mln.) As known, the company is ready to fund only one fifth of the project; the other funds will be loaned.

Tatyana Kulik, the Deputy General Director of "Greenhouses of Russia" Association, explains the increasing interest to greenhouse business by the fact that such enterprises may count on state support (donated loans) in the framework of the national project of agri-industrial complex development. For example, in October past year "Aston" group of companies announced about the construction of 12 ha greenhouse complex for vegetable and lettuce production in Millerovo, Rostovskaya region. Twenty one million of dollars will be invested to the project.

The expert estimates the cost efficiency of this business as relatively low, up to 10%; according to her information, the projects are paid back in 5-6 years. "The revenues of the enterprises in this industry may also be relatively low, because up to 50% of the production cost are the expenses for heat and energy resources", Mrs. Kulik adds.

To the contrary, Andrey Verkholantsev, the analyst of "AntantaPioglobal" investment company, is sure that the activities of Moscow players outside Central Federal Okrug and business development in the regions prove the low production cost of such vegetable production on fertile land and higher efficiency of product growing exactly on the South. "The value for money ratio of the vegetables produced in Rostovskaya region is quite able to compensate the transportation costs from the production region to Moscow. Today the greenhouse capacities of Podmoskovye are not able to satisfy the appetite of the region", the analyst concludes.