Written by Mohyuddin Mirza
It appears that market demand for locally grown cucumbers, tomatoes and peppers continues to be growing. With more awareness by consumers on the advantages of locally grown produce, and with more articles in the press, there is a demand for locally grown greenhouse vegetables. Our problem is the same that we are not getting a better price from commercial wholesale channels. Our price is still determined by Mexico, USA and The Netherlands. I was very surprised to see that greenhouse grown peppers air flown from The Netherlands were being offered at between $14.25 to $16.50/5 Kg case. According to 2008 cost of production figures variable costs of production for greenhouse peppers was $19.02/5Kg box and $2.53 for capital costs. This means total production costs were $21.56/5kg box. I think it is a clear case of dumping and our industry is going to suffer economic losses. The question is how our growers could stay competitive in a global context when large scale producers offer such prices?
The vegetable industry is still expanding and consolidating. During a visit to Redcliff-Medicine Hat area I found about 4 acres of greenhouse under construction. This is going to be glass as a cover material. It is an interesting change in the construction material. I remember in the 1980’s there was all glass in the area and then hail storms forced the growers to switch over to the use of plastic materials. Now it appears that due to more interest in winter production, maximum light availability is a big consideration. Ontario started into more glass greenhouses and now I think this is the first one in Alberta. There is no doubt that in summer, growers have to adjust to high light conditions and may have to re-learn the irrigation and crop management practices. Other expansions are being discussed by some growers. The market is there, it is the question of putting it all together.
Bedding plants season was reasonably good. Growers I talked to mentioned that they recovered their costs in June. Weather was not very good in May. Some growers in the Edmonton area with retail facilities are still busy with hanging baskets and garden centres.
With natural gas prices staying low for the time being, I think growers should discuss strategies when prices go up. They should consider investing in alternative fuels where feasible. Production per unit area of the greenhouse has to go up consistently. This means better understanding of environmental controls, choice of better varieties and whole areas of plant management. I think the next two years will be challenging for the industry and I know growers are ready to compete in this global market.
Mark Your Calendar
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The Greenhouse Business is a quarterly publication jointly produced by Alberta Agriculture and Rural Development and Dr. Mohyuddin Mirza.
Editors: Mohyuddin Mirza and Nabi Chaudhary
Contact, comments and feedback:
Email: mohyuddinmirza@gmail.com or
nabi.chaudhary@gov.ab.ca
Disclaimer: The identified use or notation of any particular brand of product is not identified as a recommendation nor any recommendation should be inferred.
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