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State of the fresh vegetable market

The construction of new greenhouses in the Russian Federation allows to increase the percent of domestically produced products. At the moment, Russian production satisfies only 60% of the total demand for vegetables.

Currently, there is a shortage of domestic goods on the shelves of retail stores. Majority of small-scale manufacturers are unable to enter retail chain stores due to delivery problems, certification, and manufacturing capabilities. Large manufacturers face the problem of shortage of their own production, since the demand for domestic high-quality products exceeds by far the production capacity. Thus, retailers have to replace the lack of domestic products with imported vegetables. Which, by the way, significantly affects the current price, as these countries by supplying tomato at the lowest cost, thereby run down prices.

Due to the fact that more consumers are switching to a domestic product we can see the production development. Indeed all products supplied from abroad reach the consumer in 2-3 weeks after collection. The modern consumers are well aware of this and that is why they choose farm and greenhouse products.

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The consumer is waiting for delicious tomatoes at the affordable price

Throughout the year demand for fresh vegetables remains at a high level due to their beneficial properties, providing greenhouse business with a particularly high level of profit in early spring – as human body has a special requirement of “fresh” vitamins after winter.

Market of year round fresh vegetables and greens, is not complete and is represented mainly by imported producers, to which Russian consumers do not have much confidence, therefore there is an unfilled market niche for greenhouse facilities.

High competitiveness of the products will be ensured by the following factors:

  • Exclusively organic products will be grown in our greenhouse complex;
  • vegetables will have excellent taste;
  • products will be sold at reasonable prices;
  • discounting are planned for wholesale customers;
  • customers give preference to local products over imported comparable products.
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Who is our consumer?

The idea of a year-round supply of domestically produced tomatoes to the population of the North Caucasian Federal District and nearby regions is at the root of the project. Due to the proximity to the consumer, the implementation of the project will allow replacing imported production with own affordable, fresh, organic tomatoes of the best varieties.

Tomato is the main crop to be cultivated within the framework of the project.

The project is targeted at the Stavropol region market of greenhouse vegetables - the largest one in the Russian Federation, about 2% of Russian population live in the regions closest to the production site. Most of the target end-consumers of the products are residents of large and medium cities.

Major customers of products (in order of priority):

  1. retail chains.
  2. wholesale customers (vegetable wholesale warehouses, outdoor wholesale markets).
  3. local sales (small wholesale + company stores).