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‘Smart Agriculture City’ by Japan in Yakutia

  • Published in Economy

The Japanese JFE Engineering Corp will become a new resident of the Advance Development Zone in Yakutia and implement the project of a three-stage Smart Agriculture City on the territory of the republic, TASS was informed by the First Deputy Chairman of the government of the republic, the region's economy Minister Aleksei Struchkov.

"The Company on the territory of the republic is implementing the project of a three-stage "City of smart agriculture." By the end of this year, a feasibility study will be developed.” – the Minister said.

As explained by the First Deputy Chairman, at the first stage the Company will create a greenhouse complex on the area of two hectares where greens and vegetables will be grown, at the second stage a cattle-breeding complex with processing of dairy and meat products will be built, as well as a fodder base for the operation of the complex. At the third stage, it is planned to build a fish factory for industrial sturgeon breeding.

"According to preliminary calculations, the infrastructure of this project requires more than 600 million rubles - for energy supply, water supply, water disposal, energy center, boiler house, gas supply, water intake. The creation of the production facilities themselves requires about 1.3 billion rubles," Aleksei Struchkov said. The greenhouse complex will be financed by the parties in equal shares - 100 million rubles will be invested by the Yakut side and 100 million rubles by the Japanese side.

"The operator of the facility is the Corporation for the Development of Yakutia, and in the future will be created a manufacturing company as a resident of the Advanced Development Zone," explained Struchkov. According to him, the creation of a new greenhouse complex together with the operating Japanese greenhouse Sayuri (resident of the ‘Kangalassy’ Advanced Development Zone) can satisfy up to 70% of the needs of residents of Yakutsk and its environs in vegetables and greens.

"We provide ourselves with meat products only by 30% and dairy products - by 50%, the rest can be covered just by a new cattle breeding complex, which will be realized at the second stage," the First Deputy Chairman specified.

Japanese company JFE Engineering and the government of Yakutia in October 2016 signed a memorandum on the project to create a "City of Smart Agriculture" in the republic. In Japan, the Company built a greenhouse complex in the Hokkaido governorate in Tomakomai, and greenhouses are being built in the cities of Sapporo and Niigata.

The Company has 18 offices outside of Japan. There are no branches in Russia yet, but the Company takes part in the Far East farm project in the city of Artem, where there is a greenhouse with a total area of 18 hectares. The project in Yakutia for Japanese investors is unique due to climatic conditions and permafrost.