News Business Greenhouses Research Vegetables
New report touts Canadian greenhouse sector as a ‘hotbed for growth’

A new report from RBC’s Climate Action Institute is touting the potential of the Canadian greenhouse sector as being a ‘pillar’ of the country’s agri-food growth and sustainability well in to the future.

The report, entitled “The Greenhouse Boom: How indoor farming can transform food production and exports,” was published on June 12, 2024, and offers an in-depth analysis of Canada’s fruit and vegetable greenhouse sector and its potential for astronomical growth. Despite its potential, the report notes, the sector still faces several key barriers that could stunt growth unless they are addressed.

Here’s a brief synopsis  of the report’s key discoveries:

• Infrastructure limitations could stunt future growth. Greenhouse production in Ontario is estimated to more than double in acreage over the next 10 years, but the industry faces key barriers in accessing energy, water, waste management, and labour. The Windsor-Essex and Chatham area’s peak demand is projected to rise from 500 megawatt (MW) in 2023 to approximately 2,100 MW by 2035, driven primarily by growth in advanced and electric vehicle battery manufacturing and greenhouses.
• Canada’s global greenhouse strengths lie in productivity and land-use efficiency. The country’s greenhouse production boasts the highest yields per area of land among top greenhouse nations. Canada produces 4.5 times more per area of land than Spain, two times more than Mexico, and is slightly more productive than the Netherlands. The challenge over the next decade for Canada will be to continue to lead on land-use efficiency, while scaling production to meet domestic and trade demands.
• A key market for export growth is the western United States. Greenhouse vegetables account for 39% of Canada’s fresh produce exports, 99.5% of which are U.S.-bound. Canadian greenhouse fruit and vegetable products are consumed in the east from New York to Florida. Canada could also tap into the U.S. Midwest’s 68-million-strong market if it can build relationships, branding, and cold chain logistics.
• Greenhouses must solve their energy trilemma—of demand, emissions, and bills—to expand. Energy costs for Canadian greenhouses have surged 55% between 2013 and 2023, while natural gas-sourced power is driving the industry’s carbon footprint. Reducing natural gas demand and the green premium for alternatives including renewable natural gas, hydrogen, and clean electricity would enable Canadian greenhouses to thrive in a low carbon economy.
• Greenhouses are eyeing ways to expand their product offering. Tomatoes, cucumbers, peppers, lettuce, and strawberries dominate greenhouse production in Canada. But there are five new produce to watch, such as spinach, berries, bananas, okra and coffee. (Source: RBC)

Read more here.