Dolina ovoshchey lacks power - The 3rd International Investment Forum and Exhibition "Greenhouse Complexes Russia 2018" The 3rd International Investment Forum and Exhibition “Greenhouse Complexes Russia 2018”

Dolina ovoshchey lacks power

The company intends to build the sixth greenhouse phase in the Lipetsk region 2.7bn RUB worth.
One of the Russia’s major greenhouse vegetable producers, Dolina ovoshchey, intends to invest 2.7bn RUB in the sixth phase of its primary site in the Dankovsky area of the Lipetsk region. The capacities are expected to boost in line with market expansion. By 2020, the company intends to reach 120 ha of greenhouses and top the list of Russian gross yield. However the experts doubt the leadership prospects for the company on the Russian market due to extensive projections of other major players.

Dmitriy Lashin, Chairman of the Board at Dolina Ovoshchey, has shared the company’s intentions to build the sixth phase of 5-gen cucumber and tomato greenhouses, adding that the fifth phase as of 10 ha, 2.6-2.7bn RUB worth, will be finished in 2018, with further phase having equivalent specifications. “This project largely depends on the opportunity of adequate power supply,” — as reported by Mr. Lashin. Now Dolina Ovoshchey in the Dankovsky area features 34 ha of fifth gen greenhouses (managed by LipetskAgro), requiring 80 MW of electricity, which includes 30 MW generated in-house, and the remaining purchased from the market (with the HV line built for that purpose). At that, site power consumption already exceeds overall 20 k Dankov town’s demand several-fold. Nevertheless, the company management figures out that investment in boosting the greenhouse capacities is more profitable, than the acquisition of power generators.

By 2020, Dolina Ovoshchey expects to win the leadership on the Russian market by means of gaining 120 ha of overall greenhouse area, as noted by Lashin. The company has no particular projects yet, but it intends to develop both in the Lipetsk region, and in Siberia. In addition to the Dankov site, the company is now operating in the Yeletsk area, where the third phase of Yeletskiye ovoshchi as of 7bn RUB (overall greenhouse area is projected at 22 ha), and is resolving the land issue for potential construction of 30ha in the Krasninsky area, 6bn RUB worth. Simultaneously, it is expected to expand the markets: at present the company leases the logistic capacities in Moscow, Saint Petersburg and Chelyabinsk, with Voronezh and Kazan next in line.

The first phase was built in the Dankovsky area in 2013. According to Kartoteka.ru, the capital stock of LipetskAgro totals 378.3m RUB. The founder and managing company is Greeninvest, final beneficiaries are Andrey Gridnev, Alexander and Dmitry Lashins, Igor and Maxim Sokolovs, Iosif Beraya, Vladimir Tsanava, and Olga Tolmacheva. Financial performance is not exposed, but the inhouse figures testify that the complex capital accounts for 8bn RUB.

As reported by Growth technology consultancy, as a result of 2016, Yuzhny Agrokombinat ( Karachay-Cherkessia, 45.6 k t) ranked first for gross vegetable yield in Russia, followed by the Maisky Kombinat (Tatarstan, 34.3 k t) and Zelenaya Liniya (Krasnodar, 33.5 k t). Gross yield of LipetskAgro totalled 21.2 k t of cucumbers in tomatoes last year.

“If Dolina Ovoshchey manages to arrange the direct connection to the FGC grid (stipulated by the legislation), electricity acquisition will be more profitable, than installation of onsite generating capacities, — as highlighted by Tamara Reshetnikova, Director of Growth Technologies. — But this opportunity has some restrictions”. As reported by the expert, 120 ha would allow Dolina Ovoshchey topping the list of gross yield (not the overall area) if the existing performance of other producers remains the same. “However, big players also announce new projects. Thus Step Agriholding, comprising Yuzhny Agrokombinat, has already set up the reconstruction of 12-ha existing greenhouses, which in practice is the construction of new ones. Eco-Culture has announced the projects in the Stavropol Territory, with intentions in other regions,” — as Ms Reshetnikova noted.

Thermal and electric power cost accounts for 60% of greenhouse expenses, so power supply is a project’s critical issue, as Alexander Raksha, partner of Neo Centre consultancy, agrees. 5-gen greenhouses in his opinion, ensure certain energy saving, but are 30–35% more expensive. Despite the low share of 5gen greenhouses in Russia, all market participants aim to engage in their construction, as Mr Raksha believes. By his estimates, the overall Russian greenhouse market size in Q1 2017 equals to 2.3 k ha, with the annual gain before 2020 to reach 250 ha.

Source: Kommersant Voronezh