Cheaper hydro and tax incentives that Ontario municipalities just can't offer, are making the U.S. market an attractive draw for one Ontario greenhouse operator – and likely more.
Nature Fresh Farms of Leamington announced earlier this month that it’s embarking on a $200-million investment in a 175-acre greenhouse facility in Delta, Ohio, to be built over the next seven years.
Nature Fresh Farms president Peter Quiring said in a media release on the company’s website that contingent upon acceptable levels of incentives from the State of Ohio and other government authorities, as well as utility rates agreeable to Nature Fresh, the company would be poised to ship its first case of vegetables by December.
Gerard Verbeek, president of Platinum Produce, a greenhouse operation north of Blenheim, expects things could get tough for Ontario greenhouse growers trying to compete with U.S. incentives and lower operating costs.
“Yes, we're concerned,” Verbeek said, who estimates it will be at least five years before the bulk of the impact is felt.
“We're in big competition, we're in tough right now,” he said Monday, adding Ontario has higher costs for such things as labour and electricity.
Verbeek said greenhouse operations across Canada have already expanded into the U.S., which is a huge market for Ontario greenhouse vegetable growers.
“They're not going to buy from Canada if it's U.S.-grown,” he said.
George Gilvesy, general manager of the Ontario Greenhouse Vegetable Growers told The Chatham Daily News: “We knew there was going to be greenhouse expansion across North America and our intention was to maintain as much of that investment as possible in Ontario.”
He said this issue has been raised often with upper levels of government – primarily the provincial government – to make them aware of all the competitive factors out there for people being attracted to make their investments.
Gilvesy said the government has long been made aware of the constraints greenhouse operators face in the area of electricity and natural gas infrastructure.
He said they have talked about the availability of competitive pricing on electricity especially “as we're trying to move into regimes that grow vegetables with lights.
“That's a very important feature for us going into the future, because our customers are looking for us to have 12 months supply,” he added.
Gilvesy said the association has also been advocating through green energy initiatives in Ontario to develop electrical co-generation opportunities through greenhouse operations.
“It's a good green initiative, as well, it allows growers the ability to harness some of that electricity for powering their own lights, as well as being able to be on call to produce some for the grid.”
Verbeek said his company has been trying for years to get approval for co-generation at its greenhouse operation. He said the 8.1 megawatts that could be produced would help offset costs for the operation.
Gilvesy said the nation of Holland is estimated to get about 15% of its electricity needs from co-generation through greenhouses.
“It's not a new template, but it is one that is every efficient from a perspective of recouping the efficiencies that you're losing in a total gas generated electrical plant,” he said.
Gilvesy said greenhouse growers are prepared to invest millions of dollars to develop co-generation capabilities, but there isn't enough infrastructure in the Essex and Chatham-Kent areas to handle the power that would be delivered to the grid.
He said this infrastructure shortfall on the electrical grid has existed since when the former Heinz plant started operating in Leamington. He added the plant had to put in its own electrical supply because of the problems with the system.
On the natural gas side, Gilvesy said a new line was installed in the Essex area and there is already a need for another one.
He said a positive trend is the fact more people are continuing to eat healthier and greenhouse growers continue to produce premium products for consumers needs as far as greenhouse vegetables.
“It's going to be grown somewhere, it's just where it is going to be produced?” Gilvesy s
Greenhouse growers want co-gen approval to offset costs
By Ellwood Shreve, Chatham Daily News