In 2024, Russia is set to launch approximately 108 hectares of year-round greenhouse complexes, which is projected to boost vegetable production in controlled environments by at least 20,000 tons, according to a Ministry of Agriculture representative. This planned expansion marks a significant recovery following a two-year decline in the construction of modern greenhouse facilities. In 2022, 90 hectares of year-round greenhouses were built, dropping to just 60 hectares in 2023. Therefore, the planned construction for 2024 represents an 80% increase over the previous year and a 20% rise compared to 2022.
The Ministry of Agriculture highlighted that the peak period for new greenhouse enterprises in Russia was between 2015 and 2021, with annual constructions ranging from 270 to 300 hectares during the best years of the 2010s. While the introduction of new greenhouse facilities has slowed due to market saturation, the Ministry assures that production growth will remain stable in the medium term through the construction of new greenhouses and the modernization of existing ones.
The average cost of building modern year-round greenhouse complexes is estimated at 250 million rubles per hectare, resulting in total investments of around 27 billion rubles for the 108 hectares planned for this year. The Fruit and Vegetable Union reports that in 2018, Russia had 2,450 hectares of greenhouse complexes, with 1,350 hectares outdated and 1,100 hectares modern. Intensive construction of 4th and 5th generation greenhouses has dramatically improved this situation, with 1,070 hectares of modern complexes built from 2018 to 2022.
Current greenhouse development is particularly active in the Siberian and Far Eastern federal districts. In contrast, construction in the European part of Russia is nearly stagnant, except for some project completions due to market saturation in these regions.
Tamara Reshetnikova, CEO of “Growth Technologies,” emphasized that building modern industrial greenhouses is a lengthy process. Even with fully open credit lines, it takes 10-12 months from laying the foundation to completing construction and equipping the greenhouses. However, the timeline can be significantly longer due to delays in obtaining financing and other challenges.
Reshetnikova cited the “Sayansky” greenhouse complex project in Irkutsk as an example. The company has been seeking credit and opening lines of credit since 2018-2019. Despite substantial investments by the investor, construction cannot proceed due to unresolved credit approvals. A similar situation exists in Magadan, where the “Sunny” greenhouse complex remains stalled despite initial investments and foundation work due to a lack of financing.
Reshetnikova notes that while ambitious plans for greenhouse construction are common, the actual results will only be clear at the end of the year. She recalled that although 200 hectares were planned for completion last year, only 60 hectares were realized. This discrepancy is not the fault of the investors, as the greenhouse business now involves professionals compared to a decade ago when many entered the business with government support and capital expenditures (capex). Currently, capex is available only in specific regions, particularly in the Far East and the Extreme North.
