MARCH 2016
CELEBRATING 137 YEARS AS CANADA’S PREMIER HORTICULTURAL PUBLICATION
THEGROWER.ORG
BALANCING SUPPLY WITH DEMAND
Greenhouse cucumber expansion encouraged by firmer prices
Greenhouse cucumber grower Jan VanderHout, pictured above, along with his brother Dale, manage 20 acres of cucumbers near Dundas, Ontario. More recently, they added two acres of propagation facilities for cucumber seedlings to reduce diseases and encourage a faster start. This is just one of many risk management practices in a sector that has been battling roller coaster prices. Photos by Glenn Lowson.
Innovation at Fruit Logistica
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Talk to any greenhouse cucumber grower and prices, in 2012 and 2015, were in the gutter. Prices as low as $5 for a case of a dozen medium-sized cucumbers at the Ontario Food Terminal don’t cover costs. As the industry seeks to balance supply with demand, this winter’s prices of 33 per cent higher than the six-year average are signaling modest recovery. In Ontario alone, 754 acres of cucumbers are under hydroponic cultivation. “I think this reflects growers making decisions based on macro factors such as interest rates, exchange rates and other options for investments as well as growing demand for Ontario greenhouse products,” says Rick Seguin, general manager, Ontario Greenhouse Vegetable Growers (OGVG). The U.S. market is still ripe for development. Food safety is a strong card for the Canadian industry to play, especially
because an outbreak of Salmonella-contaminated, field cucumbers from Mexico has made headlines for months stateside. Nancy Hewitt, foodservice market specialist, OGVG, observes that inconsistent supplies of field cucumbers have hampered the image of cucumbers for some U.S. retail chains. The issue also plagues foodservice companies which depend on consistency of experience as part of their brand. “We have noticed considerable diversity at retail in how greenhouse product is merchandised or presented in the U.S.,” says Seguin. “There is also a wide range in knowledge of the advantages of Ontario greenhouse vegetables by retailers, foodservice and consumers in general. This varies considerably within and by region, according to our research.” As the entire food chain buys into sustainability initiatives, preventing food waste will
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We still need more from the marketplace. With labour and electricity costs increasing, we can have no significant gaps in efficiencies. ~ JAN VANDERHOUT
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INSIDE
KAREN DAVIDSON
become part of that equation. Greenhouse cucumbers fit that new narrative because they result in zero waste. Lakeside Produce is one Leamington, Ontario company which plans to keep greenhouse cucumbers in its mix. The Cervini family announced a 10acre expansion last month that will include cucumbers along with tomatoes. Supported by a $1 million grant from the Ontario government, these growers see opportunity beyond the U.S. “Over the last two years, we have explored the opportunity to expand into the Asian
market,” says Tariq Malik, marketing director. “I have personally visited Shanghai and Hong Kong to introduce our brand to this area. There is a huge demand for healthy, good-for-you products in this area due to the ongoing water concerns.” “We are continuously working on new and innovative packaging that will increase both shelf life of the product to account for long distance travel and, more importantly, allow product to remain fresher on our customers’ tables,” says Malik. CONTINUED ON PAGE 3