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Russia: 5 million euros invested to grow rucola

The Russian Lenagroproduct company has invested 5 million euros in the expansion of greenhouse production in Pushkin, counting on import replacement in the sphere of spicy greens. The aim is to compete with the southern producers, whose costs are lower. According to Mr. Guy Toran, whose family owns the Lenagroproduct company, the enterprise started producing greenery in Pushkin 2 years ago. Now on an area of 1.2 thousand m2 they grow 1.4 tons of basil and mint a month. "We are the first industrial-scale hydroponic farm in the Saint Petersburg region, focusing on herbs and various lettuce products", they explain on their website. 

In the coming years, the company is planning to invest 5 million euros in production expansion. Another 600 m2 of greenhouses will be launched until the end of the current year and production capacity will be increased to 3 thousand tons per month. It is also planned to expand the assortment and start producing rucola, stevia and mustard. By 2021-22 Lenagroproduct is going to increase production up to 12 thousand tons a month due to the new greenhouses launched.

“I used to work in trade, including foodstuffs. Now I’ve started in agriculture production as this direction seems promising”, says Mr. Guy Toran. According to the entrepreneur, Lenagroproduct is now working with wholesale companies and later on will establish direct supplies to the trade chains. The company is planning to compete with suppliers from Egypt, Armenia, Israel due to lower prices.

Experts say 6 thousand tons of greenery are grown in the Central Western Federal Region. In 2013, the greenery consumption in Saint Petersburg amounted to 4 thousand tons a year, according to the specialists of LLC Agriconsult. The amount of consumption in 2017 was the same. With that, the share of green onions, parsley and dill exceeded 90%. In Russia, greenery is mainly produced in the field, but greenhouse complexes are actively mastering this direction.

The new producer will be able to compete with the importers due to fresher and cheaper goods, claim the specialists of LLC Agriconsult. “Local greenery cannot be cheaper than the imported ones as it is more expensive to grow it here than in southern regions”, says co-owner of the trade chain 'Fruit Store' Ms Marina Stanchits. According to the owner of the trade chain 'Real', Mr. Alexander Myshinsky, the demand for greenery is limited because of high prices on these products.

Source dp.ru
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