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FCC sees opportunity in indoor farming, but warns of scale and input challenges in Canada

Farm Credit Canada’s (FCC) latest report, Canada sees rising interest in controlled environment agriculture, published on May 28, explores the growing role of controlled environment agriculture (CEA), which includes greenhouse, vertical and container farming, as a strategy to reduce Canada’s dependence on imported fruits and vegetables, especially during the winter.

The report focuses on fruits and vegetables grown in greenhouses, which are by far the largest and most established segment of CEA in Canada, according to FCC.

By extending the growing season, greenhouses can achieve higher yields than traditional outdoor operations growing the same types of produce, FCC said in the report.

While the space and time advantage in greenhouses increases yield density, FCC said they still only meet a fraction of national demand.

Many crops, including tomatoes, peppers, and cucumbers, contribute to the national supply, but according to the report, Canada will need to find ways to boost output for other crops, such as lettuce, herbs and strawberries, to meet domestic demand.

To boost productivity, Canada will need to look for opportunities through labour- and resource-saving technologies, research and development for new crops, and explore ways to bring CEA to more regions, the report said.

It goes on to note, while rising costs are a challenge, the bigger threat is the availability of key inputs.

CEA must compete with other high-tech sectors for limited municipal infrastructure, such as energy, water and waste services, making expansions or new buildings more challenging or completely out of reach, the report said.

The report said that the investment in and adoption of technology is crucial to overcoming high operational costs, addressing labour and infrastructure constraints and allowing the sector to reach its full potential.

Read the full report here.