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Greenhouse Vegetable Production in Russia: Business Plan and Market Analysis

185 Pages Global Reach Consulting SKU: GRCL3861887

The aim of this project is to attract investments and to analyze economic efficiency of starting a commercial greenhouse business in Russia, to sell products and gain profit.

CONCEPT
  • Greenhouse complex for cultivation of vegetables and greens
  • Greenhouse area – *** ha
  • Projected production volume – up to 1.8 thousand metric tons of vegetables per year
  • Seedling unit
  • Auxiliary buildings and facilities
PRODUCTS
  • Greenhouse tomatoes
  • Greenhouse cucumbers
  • Greenhouse greens
INVESTMENTS AND FINANCING
  • Investments in the establishing of a greenhouse complex account for *** RUB. The term of the investment period is 13-14 months.
  • The project envisages to be financed through both borrowed funds (70%) and own funds (30%).
CONSUMERS

Disposal of products in the region of the project implementation, including:

1. Retail chains;
2. Markets;
3. Non-chain stores.

Entering the markets of other regions of Russia.

EQUIPMENT SUPPLIERS

The project presupposes the use of greenhouse constructions and equipment of domestic production of *** company.

PRECONDITIONS FOR SUCCESSFUL PROJECT IMPLEMENTATION
  • The increasing striving of population to a healthy lifestyle and as a result, the growth in consumption of fresh vegetables all year round (especially in winter and spring).
  • Growing interest in the fresh vegetables production in greenhouses by both large agricultural holdings and non-core investors.
  • The predominance of greenhouses using outdated crop cultivation technologies and equipment on the Russian market leads to a further increase in abrasion of the majority of greenhouse
MARKET
  • Cucumbers and tomatoes are the major items growing in greenhouses with shares of ***% and ***% respectively. The share of pepper, eggplants and greens accounts for ***%. Cucumbers, greens and tomatoes are the most profitable items.
  • The majority of greenhouse vegetable production in Russia occurs in the Volga Federal District with a share of ***%. In 2010 production volume here accounted for *** metric tons.
  • Domestic demand for greenhouse products is met by domestic vegetables less than 50%.

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