An issue of safety
Investing in health and safety programs leads to high and unexpected returns. By Matthew Bradford | 14
How and why you should go beyond the basics Inside View 38 Collaboration to succeed
Virtual model tests energy consumption using different screens
BY ROB HANIFIN
Passive solar
Heating the greenhouse using the sun’s energy at just $1 per hour
BY TRINA MOYLES
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New year, new challenges? Maybe not.
In speaking with individuals across Canada for our annual state of the industry report, costs and supply were clearly top of mind.
If you haven’t yet read Brian Minter’s report that was published in our last issue (see December) or comments from a wide array of individuals collected just ahead of the Canadian Greenhouse Conference (see CGC show guide), I would encourage you to do so. Both write-ups speak to the concerning issue of supply amid high demands for product and possible approaches to it.
Things have been further exacerbated since then, as ports shut down, shipping containers remained empty and the flooding in B.C. prevented ground transportation from reaching boat-transported goods. All this has slowed down the shipment of product, as well as further delayed supplies for the oncoming season.
As supply becomes scarce and expenses rise, how do you approach the issue of pricing? Stan Vander
How do you approach the issue of pricing?
Waal of Rainbow Greenhouses offers some inspiring advice (see pg. 32), encouraging growers to do their homework, be ready with some hard numbers and financial calculations and, very importantly, believe in the quality of the product they produce.
Last month, I highlighted a video roundtable series online that discusses opportunities for engaging the next generation as well as enticing individuals with non-agricultural backgrounds to join the sector. Well, the sector needs to act as local labour remains almost impossible to come by and recruitment of Canadian employees continues to be a challenge.
“It is a workers’ market out there,” Vander Waal says, during our Zoom call. Starting wages are much higher than they were three years ago, but many local workers don’t return after their first or second day on the job. It’s not just entry-level positions. Recruiting for mid- to higher-tier positions remains a challenge. “We are in a constant state of recruitment.”
Though the initial growth of the cannabis sector did impact the availability of skilled workers at first, Vander Waal has seen this trend readjusting, with some workers returning to floral and vegetable horticulture.
“I just don’t see a lot of people engaging in the floriculture side of the business and I don’t know why,” he says. “As an industry, we’ve got to find a way to get that message out there…to get people excited about this business.” He points out that the medium and upper management positions are particularly competitive. “I would have never thought 10 years ago that we’d be talking six figures in the greenhouse business, but there’s
plenty of them right now.”
As for temporary foreign workers, at time of writing, there were uncertainties around vaccination requirements – both for TFWs as well as truck drivers, shares Andrew Morse of Flowers Canada (Ontario) Inc. Though, regulations may evolve at the beginning of the year in 2022.
Other features in this issue include ideas on saving energy, protecting employee health and safety, as well as financial fluency. Plus, an insightful feature on THC in cannabis and whether it’s really all that important. Ideas to hopefully spark change in the year ahead.
GoodLeaf Farms has announced their expansion into Calgary, Alta.
The vertical farming company will build a 74,000 square foot indoor farm in the city, after receiving a $2.73-million incentive to locate to the province.
According to GoodLeaf, the design will allow for future expansion to double its size when needed.
“Construction is currently underway with an expected completion date by the end of 2022. The
A new generalist predator will soon be commercially available.
“This new predator Anystis is effective against several key greenhouse pests by controlling thrips and spider mites and suppressing aphids. As a generalist predator, Anystis also preys on Echinothrips and mealybugs for which no biocontrol agents exist,” says Rose Buitenhuis, PhD, senior research scientist in biological
Calgary farm will produce more than one million pounds of fresh, local leafy greens each year, which will be on the shelves of grocery stores across Western Canada by early 2023.”
“Calgary is the perfect location for our first Western Canada location as it’s a main corridor and central access point,” says Barry Murchie, Chief Executive Officer of GoodLeaf.
Source: Government of Alberta, GoodLeaf
control at Vineland Research and Innovation Centre in Ont. “Anystis is functionally compatible with commonly used biocontrol agents including aphid parasitoids and Neioseiulus cucumeris...”
Discovered at Vineland, this is a result of a fiveyear project funded in part under the Canadian Agricultural Partnership in collaboration with the Université du Québec à Montréal and biocontrol producer Ap-
Winter Farm (Ferme d’Hiver) has inaugurated its first industrial unit in Vaudreuil, Que. With a total area of 1,150 m2, the project was carried out in two phases in partnership with Les Serres Vaudreuil, becoming the largest controlled-environment vertical strawberry farm in Canada.
Every year between October and June, over 180,000 kg of strawberries will be grown, which the company says will equal production yielded by more than 2 ha of traditional greenhouse space. Under its commercial agreement with Sobeys, Fraise d’Hiver strawberries will first enter in 15 IGA stores in Montréal and in the Montérégie during winter 2021/22. Grown locally, in an eco-responsible manner and without chemical pesticides, the strawberries offer an alternative to imports from California and Mexico.
Source: Ferme d’Hiver
plied Bio-nomics Ltd.
“Anystis is an exciting new predator. It appears to be a true generalist and is not intimidated by some of the toughest pest’s natural defenses, such as wax and webbing. It is easy to see and scout, helping growers see their activity. And, it is always hungry, a very good trait,” says Brian Spencer, president of Applied Bio-nomics Ltd.
The company is now rearing Anystis with a
limited number available for growers to try. Anystis as a biocontrol agent has already been validated in commercial greenhouse trials of gerbera and sweet pepper. Additional research is planned for other crops including greenhouse strawberries. Trials with Niagara College have shown promising results in cannabis against aphids, one of the most problematic pests in this crop.
– Source: Vineland
Quebec prioritizes food autonomy
Greenhouse producers aim to produce
2x the fruits and vegetables over a 5-year period.
Year-round, local production is a key goal.
Hydro Québec will reduce electricity costs by up to 40% to help greenhouse producers.
The province has ~550 greenhouse businesses.
Source: Les producteurs en serre du Québec
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A vegetative series for quick turns and reliable production, this tidy, long-lasting Exacum affine will hold up through shipping. Plus, this series does not require pinching or PGRs for ease of growing. Jupiter will arrive at retail in great condition while also providing outstanding shelf life. The fun, double blooms make for a great impulse buy. Thrives as an indoor potted plant or outdoors in a protected, shaded area. 10-15cm tall, 18-20cm spread. ballingenuity.com
Multi-branched plants fill packs and small pots with ease for highdensity production. A tight flowering window and well-matched plant habits increase efficiency and reduce grower costs. The collection was bred under extreme conditions to perform well in high heat and humidity, resisting stretch and fade. Perfect for use as a border plant, in hanging baskets, and as a filler component for combinations. 15-20 cm tall, 15-20cm wide. syngentaflowers-us.com
Said to be the most highly sought-after cultivar in the Tradescantia class, the eye-catching foliage of Nanouk lights up with dark green, mint, pink and magenta. Its leaves grow densely along sturdy vining stems and are on the larger side
than other Tradescantia varieties. Nanouk is an effortless addition for indoor and outdoor programs, as a phenomenal houseplant or added into shady combination planters and baskets for outdoor summer sales. dummenorangena.com
Supersemps is a collection of Sempervivum with stunning geometric shapes and a beautiful array of colours. Boosting large 8” single rosettes in as little as 20 weeks, the collection is hardy to Zone 4. ‘Onyx’
is coloured as its name suggests – stone, dark, mahogany-black. Excellent year-round colour and ideal for both containers and landscapes. 5-10 cm high, 10-20 cm spread. planthaven.com
Augusta Lavender is a great pollinator plant that will attract moths, butterflies, hummingbirds, and bees. It is extremely heat- and humidity-tolerant, The habit is somewhat upright, which creates a mound when planted in the landscape and it will flower over the pot edge when planted in containers. Avoid overwatering and try
to keep the media moderately dry. Scout regularly for aphids and whitefly and pinch two weeks after transplant. Augusta Lavender will make beautiful hanging monoculture containers yet work very well in many planter recipes and as a landscape crop. 30-61cm tall, 61-91cm spread. provenwinners.com
A new 2023 introduction, Cool Wave Blue was one of a number of early releases to help growers meet springseason demand for pansy baskets and landscape colour. It’s said to be the fastestgrowing, longestlasting, truly trailing
pansy for Spring and Autumn, extending the season for the Wave brand. The vigorous, prostrate habit works well in combos and as groundcover. Hardy to Zone 5 and said to be the earliest pansy to return in the spring, the vibrant blue makes for an attractive option
at point of sale. 1520cm tall, 61-76cm spread. panamseed.com
This new addition to the Nesia Nemesia hybrida series offers a good habit with strong and stable stems as well as an abundance of big flowers in striking colours. The plant is covered in multi-coloured blooms and flowers early spring through summer, holding its blooms late into the season. The series is known for its heat tolerance. 25-36cm tall, 25-30cm wide. danzigeronline.com
Using simulation models, greenhouse operators can predict energy use and cost savings by selecting different types of energy curtains, tailored to their greenhouse operations.
BY ROBERT HANIFIN
Greenhouse climate screens, or curtains, were first introduced in the late 1970s as a means to conserve greenhouse heating fuel in the midst of that decade’s energy crisis. Their technology, appearance, and functionality in greenhouse climate management have all greatly diversified since then, but their single largest use in northern climates remains achieving greenhouse energy savings through trapping heated air beneath them. Common greenhouse energy saving curtains used widely in Canada today run the gambit from transparent curtains that allow high light transmittance in the winter for various vegetable crops, to blackout curtains used for abatement of supplemental lighting or for photoperiod control, as well
as curtains with nearly every level of shade in between for ornamental crops and other specific greenhouse crop needs.
Most new glass greenhouse construction projects within Canada and the northern United States include a minimum of one energy saving curtain, if not multiple curtains. This is necessitated by the relatively lower insulation value of glass versus other greenhouse covers. Greenhouses covered with inflated double-poly, polycarbonate, and other materials are increasingly including curtains in their construction as well. This is as the energy savings of curtains, as well as their overall importance in managing greenhouse climate, are becoming more widely understood. However,
some new greenhouse construction of alternative glazing materials, as well as many older structures, still continue to forego curtains.
Certain trends in greenhouse technology are also increasing the popularity of double curtain installations. This is the case with greenhouse supplemental lighting, which has caused a rapid expansion in the use of blackout curtains for light abatement, aided in part by new, restrictive bylaws in some areas aimed to curb light pollution from greenhouses.
Throughout Canada and the northern U.S., energy saving curtains help greenhouse growers conserve heating fuel and save money. Utilizing multiple energy saving curtains across different crop types significantly increases energy savings in most northern regions, and also gives the greenhouse grower greater flexibility in managing their climate. Although every greenhouse offers a unique production environment, the energy benefits of single and multiple curtains can be simulated with specialized modeling software. It combines greenhouse parameters with real world climate data to estimate the energy needed to heat a simulated greenhouse. The remainder of this article provides examples of such modeling exercises.
Within each scenario, the energy calculator tool is utilized to simulate the energy savings gained by using curtains in one-hectare vegetable greenhouses, with different covers, differences in
supplemental lighting and in different parts of Canada. In other parameters the greenhouses are the same (e.g gutter height, use of natural gas heating, etc), and common temperature setpoints and curtain control setpoints are used for the different crops. In each scenario, the energy saved by utilizing one or two curtains is compared to a reference of not having a curtain present in the greenhouse. A description of each scenario is followed by a graph and table of the energy savings, along with some explanations.
Certain trends are increasing the popularity of double curtain installations.
Note that these scenarios were created for comparison purposes. Each one is accompanied by a table presenting the results in numerical format. Specific values in energy savings will differ depending on the curtains used. Each scenario notes the screen models that were used as examples.
Scenario One: Tomato, supplemental HPS, Venlo glasshouse, Montreal, QC. The graph compares the monthly (solid
About a decade ago, greenhouse curtain manufacturer Ludvig Svensson developed an energy calculator tool that modeled greenhouse energy savings with different curtains. This was designed to help guide growers in selecting product for energy savings. This tool was subsequently incorporated into the Hortinergy platform (hortinergy. com), a simulation program utilized to model energy performance across greenhouse types. It combines user input on specific greenhouse parameters with real world climate data, providing a more accurate picture of energy consumption for heating in a simulated greenhouse anywhere in the world. Now, Svensson uses the energy calculator within a specialized version of the Hortinergy platform that incorporates the energy performance of the company’s energy saving curtains. Thus, the energy performance of closed structured, energy-saving curtains in any greenhouse can be simulated.
lines) and running annual total (dotted lines) of natural gas consumption for a tomato greenhouse in Montréal lit by HPS lamps. The solid blue line and yellow dotted line serve as the reference with no curtain/screen. The solid orange line represents the level of natural gas consumption with a single transparent energy-saving curtain. The gray solid line indicates the pairing of the single energy saving screen with a light abatement screen, resulting in lower energy consumption out of the three options.
Based on this model, a single energysaving curtain reduces natural gas consumption over a year-long growing cycle by 24 per cent; using two energysaving screens in this scenario reduces energy consumption by 34 per cent. In the latter example, one of the curtains being a light abatement blackout curtain shows that these curtains are capable of significantly contributing to greenhouse energy conservation.
Curtains tested in model: Svensson Luxous 1147 FR for the single curtain option. Svensson Luxous 1147 FR and Obscura 9950 FR W for the double curtain option.
Scenario Two: Lettuce with supplemental LEDs, double-poly greenhouse, Medicine Hat, AB. In this scenario, an inflated doublepoly greenhouse is equipped with LED lamps for supplemental lighting. By
local ordinance on light abatement, such a greenhouse would likely need to utilize a blackout curtain. In the double curtain example, the blackout curtain combined with a transparent energy saving screen once again leads to higher energy savings. When compared to no curtain use at all, the amount of natural gas consumed is reduced by more than 25 per cent using double screens. Using one single screen reduces natural gas consumption by over 14 per cent compared to no curtain use.
Curtains tested in model: Svensson Harmony 3647 FR for the single curtain option. Svensson Luxous 1147 FR and Obscura 9950 FR W for the double curtain option.
...the cost must be justified to retrofit an existing greenhouse with additional curtains.
2.
Model showing natural gas use (m3gas/m2 greenhouse space) in a lettuce doublepoly greenhouse with supplemental LED lighting in Medicine Hat, AB.
Scenario Three: Peppers, no supplemental lights, glasshouse, Chilliwack, B.C.
In this scenario, the unlit sweet pepper greenhouse is equipped with one or two energy-saving screens. Use of a common energy-saving screen for single installations in peppers leads to a 19 per cent reduction in total natural gas use. The added second curtain provides for additional energy savings throughout the year, and in this particular case, was selected for light diffusion and shading in the summer months. The option for two energy-saving screens provides nearly 30 per cent reduction in natural gas consumption, compared with not utilizing any curtains at all.
Curtains tested in model: Svensson Luxous 1547 D FR for the single curtain option. Svensson Luxous 1147 FR and Harmony 2047 FR for the double curtain option.
The above scenarios capture only a fraction of the wide range of simulation models that can be made. Greenhouse location, physical parameters like size and glazing material, heating fuel, and type of curtain or curtains utilized can be
FIGURE 3.
Model showing natural gas use (m3gas/m2 greenhouse space) in a pepper glasshouse with no supplemental lighting in Chilliwack, B.C.
customized in the modelling software for specific greenhouse projects. In addition, the cost of greenhouse construction and the cost of heating fuel can be introduced into the simulation to model the return on investment of a single or double energy-saving curtain systems. This is vital, as the cost must be justified to retrofit an existing greenhouse with additional curtains or to include a second curtain in a new greenhouse build. However, with the amount of added energy savings that can be realized, this
is becoming an increasingly attractive option that also provides greater flexibility as an additional benefit to the grower, better overall control over their greenhouse climate, and compliance with light abatement regulations.
Rob Hanifin is a Greenhouse Climate Consultant for Ludvig Svensson and is based in the United States. Questions on greenhouse energy-saving simulations and curtains? Email him at Robert.Hanifin@ ludvigsvensson.com.
Investments in occupational health & safety can yield unexpected and high returns.
BY MATTHEW BRADFORD
It’s a good time to be a Canadian grower. Activity is rising across the greenhouse sector, and while growth is almost always good, emphasis on employee wellbeing, and the health & safety (H&S) programs to protect them, become increasingly important
“The greenhouse sector has seen significant growth in Ontario at a rate of 5 per cent per year but also experiences one of the highest rates of lost time injuries (LTIs) in the agriculture sector,” says Kristin Hoffman, a consultant with Workplace Safety & Prevention Services (WSPS).
According to the Workplace Safety and Insurance Board (WSIB), Ontario’s agriculture sector had the highest rate of LTIs from 2012 to 2018 and was second only to transportation in 2019.
“While business is good, and many operators are taking these issues to heart, there is still a need to take a closer look at how the industry is upholding its health and safety obligations.”
Greenhouse work comes with risks that can take a physical and mental toll. Common risks include:
• Musculoskeletal Disorders (MSDs), which are injuries to muscles, nerves, tendons, joints, cartilage, and spinal discs caused by repetitive actions, static postures, constant standing, and other poor work habits.
• Heat exhaustion and fatigue, resulting from hot outdoor temperatures and tiring work.
• Bodily injuries, due to falls or equipment misuse.
• Stress and anxiety, triggered by extended working hours, language or cultural barriers, or recent pandemic issues.
These common, yet preventable injuries were identified in the Greenhouse Risk Assessment Project, a collaborative effort by WSPS and the Ontario Ministry of Labour, Training and Skills Development, to frame and address the health and safety risks within the greenhouse sector. This study,
combined with further research, revealed critical gaps in knowledge, awareness, and training, as well as root causes associated with those risks.
In Canada, a third of the greenhouse sector’s 16,000-plus workforce is comprised of foreign workers; individuals who at times arrive with inadequate health and safety training that goes unrecognized due to cultural and language disconnects.
“For example, there are some places that bring in workers who only speak Spanish. And while some will translate pertinent documents and training for them, there are others who don’t,” notes Jay Remsik, a WSPS consultant who has seen these language barriers first-hand. “Taking the extra step to tailor this information can definitely pay off.”
Competing priorities can also pull focus away from worker health and safety, including audits, other regulations and keeping up with demand. That’s not to say safety is ever a low priority, but it can sometimes take a backseat.
Moreover, adds Remsik, “There can be a mindset amongst some growers that, ‘I’ll worry about health and safety when an inspector shows up.’ The risk with that is if you are not investing in H&S and a critical injury or fatality occurs, it could result in a significant fine if charges are laid. A proactive approach eliminates that risk.”
H&S programs are proven to protect greenhouse operations from financial and reputational damage, as well as contribute greatly to a company’s overall sustainability.
First, says Remsik, when an incident occurs, you want to
be able to show the Ministry and other stakeholders that you did everything in your power to prevent it. “Take anti-fatigue mats, for example. At $250 each, some employers might not want to make the investment for everyone on the pack line, even though those mats will go a long way toward easing risks of back problems. But they need to consider the benefits of less fatigued, more productive workers who feel valued as opposed to running the risk of a back injury and having a claim on their hands. Evidence shows every dollar spent on ergonomics can yield a $6 to $19 return.”
According to a 2019 report by Mustard et al., the average employer in Ontario spends approximately $1,300 per worker per year on occupational health and safety. Annual expenditures range from $600 per worker in the educational sector to more than $4,400 per worker in the mining sector. Agriculture including forestry, fishing and hunting comes in at $890.
Costs supporting injured workers can add up as well
According to a report from the Association of Workers Compensation Boards of Canada, the average administrative cost of an LTI claim was $14,563 in 2019. This, combined with the average benefit cost of $32,675, equaled $47,238 for the life of the claim. Indirect costs, such as expenses incurred to recruit and retrain replacement workers as well as lost productivity, are more difficult to quantify and dependent on many variables but they are at least two times that of direct costs.
“Investing in health and safety means investing in business continuity,” says Hoffman. “Recruiting, training, and retaining workers is no small expense, and it’s already tough to bring workers into the agricultural field.” Losing any one employee
can have a significant impact on productivity and the ability to meet shipment obligations.
There are reputational considerations as well. Word of incidents can spread, leaving a negative impression on labourers and customers.
“The big customers look back at incident history and claim history, and if they see that you are not a high or a safe performing employer, they might not buy your product,” Hoffman adds.
Last but far from least are the social advantages. As Hoffman and Remsik have witnessed time and again, greenhouses that make health and safety a priority are the ones that benefit from happier, more engaged, and loyal teams.
Across Ontario, there are proactive greenhouse operations keeping health and safety front and centre.
Great Northern Hydroponics is a 70acre facility that grows a variety of tomatoes for the Village Farms label. Thanks to a multi-pronged H&S program led by Xiomy Moreno, Human Resources Manager, the operation has been successful in lowering injury rates across the board.
“Like everyone always says, if you take care of your employees, they’ll take care of you,” says Moreno. “Our employees are very important to us and providing them with a healthy work environment is our utmost priority.”
Their approach includes extensive and multilingual orientation, training, and regular meetings. Safety is championed at all levels of leadership and by a joint health and safety committee (JHSC) comprised of reps across every department who wear specialized shirts to identify them on the floor.
Combined with a program for em-
LEFT
Carter Hall of Jeffery’s Greenhouses.
ployees returning to work post-illness or injury, supporting injured workers, and an annual survey, which keeps all H&S stakeholders on target, Moreno reports their organization is seeing a marked difference in workplace morale, and business operations. “We’ve seen a big reduction in our injuries, which in turn, comes with reduced loss of earnings (LOE) and potential WSIB premiums.” From 2016 to 2019, reductions in workplace injuries ranged between 38 to 66 per cent.
Jeffery’s Greenhouses has also seen quantifiable benefits from its health and safety focus across its two Niagara facilities. And like Great Northern Hydroponics, the key to success has been buy-in across the company.
“I took over the health and safety file about 20 years ago when accident rates were high and we were up for a Workwell (WSIB) audit,” recalls Gina Marchionda, controller with Jeffery’s Greenhouses Inc. “Fortunately, we were able to build a health and safety program and get management buy-in to the point where we avoided that audit and really started turning those numbers around.”
In the years that followed, Jeffery’s Greenhouses was able to reduce its WSIB accident costs by about 95 per cent and receive rebates of approximately 10 per cent of its insurance premiums during that time, which it funnels back into training and resources (e.g. PPE).
Building a culture of health and safety has led to stronger employee relationships as well. According to Allison Beekhuis, Manager, Human Resources at Jeffery’s Greenhouses Inc., “[Our program] has helped us create a good reputation within our company and out in the industry. [Recently] we had someone come in and thank us for everything we had done [on COVID precautions], and how they feel safe and supported when coming to work. That’s not the first employee to say something like that, and it’s led to people referring others to come work for Jeffery’s.”
Beekhius and Marchionda say creating this culture has taken time and resources, but the payoff is worth it.
“It can be time-consuming to develop these policies and keep our H&S training and initiatives going, but ... it’s far better than dealing with an accident.”
This success is being replicated at Medisun Inc., an Ontario-based medicinal
cannabis grower, where reduced LOE and a stronger team have been attributed to holistic training and awareness programs, a JHSC, regular meetings, and continued H&S investments.
“Because we invest as much as we do into our health and safety strategies and team, our staff trusts that we’re doing everything we can to protect them. As a result, they’re more positive, more engaged, and more willing to come to us with new ideas, issues, or concerns,” says Jessica Welch, Director Human Resources Operations with Medisun Inc., adding, “Nobody shies away from health and safety. Everyone feels free to bring up a health and safety issue because they know it will make their work even safer. And because we have everyone on board, we actually welcome MLTSD audits; for us, it’s a free opportunity to find out how we can be doing even better.”
Welch reports that their strong reputation has also attracted a wealth of resumes and generates positive word of mouth among potential recruits. Investing in “train the trainer” programs has equipped supervisors with the tools to act quickly and decisively within their departments.
Like her peers, Welch says maintaining its H&S program is an expense, but it’s one that pays off in peace of mind. “We know these investments save us time and money in the long run because we have fewer injuries and a team that keeps raising the bar for health and safety practices.”
At the end of the day, creating a safe workplace is an ongoing commitment that can yield significant benefits. Investing in health and safety is good business and a business that is protected can grow.
“We see a lot of good actors out there, but there is still an opportunity to improve some of the general understanding around health and safety responsibilities, accountabilities, and rights,” says Hoffman. “We’ve learned a lot from operators and the Ministry, and we’re eager to help greenhouse stakeholders understand their challenges and potential solutions. At the end of the day, though, the only way we’re going to bring those incident numbers down is if the sector commits to prioritizing H&S and joins us at the table.”
Workplace Safety and Prevention Services (WSPS) is a not-for-profit organization offering H&S expertise and resources. Find out more at wsps.ca.
Stretching your financial knowledge beyond the basics can allow you to remain one step ahead.
BY KELLEEN TAIT
In an era of rising costs, reduced profit margins, and everchanging consumer habits, financial fluency has never been more important for the owners and managers of greenhouse-based agricultural businesses. Whether you work with food, flowers, or cannabis, the fundamentals of sound financial procedures apply to all types of greenhouse operators.
Financial fluency is the knowledge covering financial information, and possessing it allows an individual to make informed and effective decisions with their financial resources. While not every owner is expected to be their own accountant, stretching your financial knowledge beyond the basics will allow you to remain one step ahead, knowing the impact of your financial decisions before you make them.
As a greenhouse operator you are a business manager, and in most cases a business owner, meaning you oversee the costs and assume the financial risks. Those costs have gone up significantly since COVID started, and so have the risks. For example:
help you improve the factors you can control. For example:
• You can assess a situation early and facilitate risk management planning.
• You will be able to diagnose problems and opportunities, act on them, and understand the impacts of each action on your business, leading to profitability and growth.
• You can prioritize your efforts by focusing on the right problems and opportunities. You may realize that some problems aren’t as bad as you thought when you can quantify them.
ABOVE
• With mounting turnover in the workforce, labour has been harder to secure and wages have increased, meaning more resources spent on recruitment and payroll.
Costs have gone up significantly since the COVID pandemic, and so have the risks.
• Prices for fertilizer and other essential commodities have become quite volatile
• Energy costs have noticeably increased, with supply chain disruptions and increased carbon taxes.
• Interest rates are on the rise, so more capital is needed to service higher interest costs
All these issues layered on top of each other will result in more funds at risk, that production and top line revenue will need to offset. Understanding your revenue and related costs of production for your products allows you to better project future profits as well as gauge past years’ profitability.
If there’s anything the past few years have taught us, it’s that we can’t always predict what our economic future holds in store. Even as the health of your business becomes impacted by factors outside of your control, your own financial fluency will
• Your relationships with lenders, advisors, and other business partners will improve.
• There is a measurable link between the adoption of business practices, profitability, increased confidence, and lower stress and anxiety.
While the vast majority of greenhouse operators apply triedand-true business practices that work for their business, the data behind financial planning and forecasting are surprising. According to 2019 statistics from Farm Credit Canada, only 43 pe rcent of Canada’s greenhouse operators assess their financial risk, and only 33 per cent have a concrete or written financial plan. 41 per cent who do not have a written plan cite it as not necessary — they are “succeeding without it.”
A bright spot in this data is that 88 per cent of Canada’s
operators who do have a written plan say that it contributes to peace of mind.
Some key elements of a financial plan for a greenhouse operator include knowing the following:
• Cost of production
• Breakeven points
• Projected net income
• Cash flows
Greenhouse operators regularly face questions about the financial health and stability of their business. Are we prepared for the possibility of a bad year ahead? What will we do if we encounter a financial setback, what changes will we need to make? A financial plan, built on the bedrock of strong financial fluency, will remove the guesswork from many of these questions.
Financial reporting is a ubiquitous part of greenhouse operating — all owners and managers of greenhouse businesses must complete it. But being financially fluent can make all the difference in the quality of the reporting process, and how painless it is to complete.
The relationship between reporting
and planning can be a positive cycle: as your financial reports become better and more current, you will have better data to work with when forming your plans. The more diligent and consistent you are about planning, the simpler and more accurate the reporting becomes.
There are two options for financial reporting: cash basis or accrual basis. Cash accounting records financial information when cash is exchanged. Accrual accounting, however, records financial information when a transaction occurs, even if the cash has not changed hands yet.
Many greenhouse operators prefer cash-based reporting for a few reasons:
• It’s easier for a person without financial/accounting training to understand.
• It’s the type of reporting used for tax purposes, so it is familiar.
• It’s easier to manipulate by simply delaying bill payments or inflows of cash.
However, accrual accounting is
the preferred method, and not just by accountants — banks, lenders, and government programs usually default to accrual accounting. Here’s why:
• It better matches expenses and revenues to the same financial reporting period in which they occurred.
• It reflects the value of each year’s production, regardless of when it’s sold, as well as the expenses for each year’s production, regardless of when they’re paid.
• It accounts for more nuanced situations such as prepaid expenses, amounts owed or not yet collected (accounts payable/accounts receivable), and total inventory.
In short, accrual reporting is a better reflection of how your operation actually did. This is why some greenhouse operators will enter transactions on a cash basis and turn to their accountant to assist with accrual adjustments at year-end.
Kelleen Tait is a partner and business advisor with MNP in Lethbridge, Alberta. Reach her at Kelleen.Tait@mnp.ca or at 1.800.661.8097.
This former geologist built and now operates the largest commercial size passive solar greenhouse in Alberta, growing year-round with almost zero energy costs.
BY TRINA MOYLES
BELOW
Looking for a meaningful career, Dong Jianyi turned to greenhouse farming.
Dong Jianyi prefers to grow heritage varieties of tomatoes, the kind of tomatoes you wouldn’t find in grocery stores. Tomatoes so sweet they make your taste buds sing. So sweet they remind you of the tomatoes your grandparents used to grow thirty, forty, fifty years ago. Tomatoes with fine, thin skins, not ideal for transporting over long distances, but rather, cultivated for maximum sweetness, pleasure, and nourishing communities in central and southern Alberta.
At Freshpal Farms in Olds, Alberta, Dong and his family grow tomatoes, peppers, cucumbers, spinach, corn, and sunflowers. They experiment with planting rare, niche varieties of radishes –“green and long – like a small arm!” – and big, thick leafed spinach, along with a type of hardy Chinese cabbage that’s well suited to survive winter’s harsh bite on the Canadian prairies.
“The vegetables I grow are very natural, they’re organic, clean, and healthy,” Dong enthuses. “And they taste so good!”
But what makes Dong’s vegetables at Freshpal Farms so unique isn’t only a matter of taste: it’s how he grows what he loves. Dong cultivates vegetables 12 months of the year in a passive solar greenhouse – a greenhouse powered 100 per cent by the energy of the sun. Whereas conventional greenhouses rely on fossil fuels and artificial heat to warm through the winter, a passive greenhouse relies only on the sun. Dong runs the largest commercial passive solar greenhouse in Alberta.
Passive solar technology works to trap and
store solar energy, which is then released slowly to heat up the greenhouse. This way, produce can thrive year-round – even in one of the coldest growing zones on the planet.
The passive solar greenhouse uses polycover, a steel pipe frame and a 1/3-inch thick insulated blanket.
On the north side of the greenhouse, he constructed a half-metre thick clay wall.
Dong’s story is an extraordinary one, in part, because he didn’t grow up on a farm, or even study agriculture in university. In fact, he never even planned on becoming a farmer.
Dong grew up in the city of Tangshan, China, located 150 kilometres northeast of Beijing. It never occurred to Dong that he might one day grow food for a living. The young man who “never even stepped foot on a farm,” studied to become a geologist and went on to work in natural resource extraction. In late 2014, Dong’s work as a geologist brought him to Canada to work for a large oil and gas company.
“The work and pay were good,” recalls Dong. “But it felt like nothing belonged to me, and that the company could let me go at any time.”
With increasing uncertainty and volatility in the oil and gas sector, Dong made the decision to transition
into a new career. He wanted his work to be secure and sustainable. Dong yearned to do something that would cultivate a sense of longevity and creative ownership.
The geologist recognized a different kind of opportunity on the Albertan prairies.
“The first thing that came to me was farming,” says Dong. “Where I lived in China, there were so many passive solar greenhouses. But in Canada, I didn’t see any on the commercial scale.”
In 2017, Dong and his wife invested in an acreage outside Olds, and gradually – over the course of a year – built a passive solar greenhouse measuring over 100 metres long and 10.5 metres wide with a height of 6 metres.
Dong chose to build a double-layer greenhouse using a steel pipe frame with polycover. A 1/3-inch-thick insulated blanket covers the first layer. To receive sunlight during the day, Dong uses an electric motor to roll up the insulated blanket. At night the blanket rolls down again, trapping the heat inside.
On the north side of the greenhouse, he constructed a 1/2-metre thick clay wall.
“Clay holds the heat,” explains Dong. “The sunlight heats the back wall to a very high temperature –about 30 degrees. During the night, the clay releases the heat gradually.”
The solar greenhouse is large enough for Dong to operate a small tractor. He sows directly into the soil and relies on organic methods: using compost and manure to enrich the soil, and avoiding the use of pesticides, herbicides, or fungicides.
In order to gain farm experience, Dong spent time apprenticing at Wenkai Oriental Vegetables, another passive solar greenhouse in Manitoba, and even traveled back to the Shan Dong province in
northern China to learn about different models of passive solar greenhouses.
“Without research, I wouldn’t have dared to start my business,” recalls Dong. “There’s existing technologies and business models, which are successful. I wanted to copy this success.”
The Shan Dong province is famous for their concentration of passive solar greenhouses. Farmers rely on the sun to grow food, despite cold temperatures, and avoid the high costs associated with heating.
“Farmers in China don’t have much land,” explains Dong. “Every family has a small piece of land, which they have to make a living on. Many farmers build solar greenhouses to grow vegetables. The operational costs of conventional greenhouses are too high. But passive greenhouses allow farmers to grow through the winters without heating, so they can keep vegetable prices low.”
Over the winter, Jianyi cultivated vegetables right up until January, when temperatures plummeted to forty below zero. He explains that the crops did remarkably well through the winter until the tenth day of extreme cold. In the summer months, he uses a seeding cloth to block out sunlight in the greenhouse, which maintains a temperature of 25 to 32 degrees Celsius.
In addition to the vegetables in his greenhouse, Dong planted field vegetables in the summer. But his crops fared
Dong Jianyi and his wife, Ting Wang, invested in an acreage outside Olds, Alta.
poorly due to the below average temperatures and heavy precipitation.
“We need heat to grow vegetables,” he says, “But the weather was extremely cool.” He believes that growing in the greenhouse provides greater environmental control and certainty over the outcome of crops.
Dong is sharply aware of climate change and the increasing shift in weather patterns. His previous experiences as a geologist involved working in mountainous regions where glaciers have retreated rapidly over the past fifty years – with some disappearing entirely. But he insists that becoming a farmer made him pay greater attention to weather patterns and the climate.
“There’s no normal anymore. There’s only extreme,” says Dong. “Extreme is normal. We have to get used to [growing food] in extreme conditions.”
He also believes that farmers can play a role in mitigating the effects of climate change. The use of passive solar greenhouse technology is a win-win for the farmer and the environment.
“In the agricultural industry, we must reduce our energy consumption as much as possible. The passive solar greenhouse is a good idea,” Dong says. “I only use a little bit of electricity to pull down my insulating blanket. It costs me about $1/day. The environmental impact is close to zero.”
Dong’s goal has been to double his production area from one to two acres. In November 2021, he finished building a second solar greenhouse of the same dimensions. He also wants to experiment with extending the growing season by using simple high tunnel insulation for field crops.
Dong works closely with educators at Olds College, along with central Alberta-based group Rural Routes to Climate Solutions, to create learning opportunities for other Albertans interested in the passive solar greenhouse model. His passive greenhouse at Freshpal Farms has served as a demonstration farm for other farmers to come and learn about the possibility of investing in passive solar technology.
“Many people want to change their careers,” he says. “Some people want to buy a piece of land and start a new life. I want to tell these people that, in the beginning, it can be difficult –but if you hang on, in a couple of years, you can have a better life.”
As new farmers, Dong and his family have fallen in love with the slower paced rural lifestyle in Olds. He enjoys farming and the ability to make decisions on his land, to experiment with innovation, and to feel in control of his livelihood. Dong also points to the support and kindness from neighbours and the wider community in the Olds area.
“I think I need to thank the slowing down of the oil and gas industry,” says Dong. “It gave me the chance to start something that belongs to myself. Here, I can control my life.”
Trina Moyles is the author of Women Who Dig: Farming, Feminism, and the Fight to Feed the World. She lives in northern Alberta.
Sawaya Gardens in Waterford, ON, recently conducted a trial of 150 commercial and pre-release poinsettia varieties.
The grower’s Variety Day was hosted on November 16, for breeder representatives, growers, broker representatives, and retailers. The trial was produced under natural season commercial production protocol with no growth regulators or other chemical applications – host, Mel Sawaya, wants
to see the genetics in their truest form.
“Our new poinsettia trial and variety day at our brand-new facilities in Waterford emphasizes our commitment to the industry by showcasing every breeder’s genetics under Canadian growing conditions,” said Mel Sawaya, coordinator of the poinsettia variety day. “It is important for growers to see how these genetics perform in their truest nature, but under Canadian conditions, so they know how they will integrate into their own programs.”
Genetics represented were submitted by all the major breeding companies around the globe, and representatives were present from each company to showcase their materials to the Canadian industry.
Dümmen Orange had an impressive display in this year’s trial, showcasing the oldest and most diverse breadth of genetics in the industry. As the originator of the poinsettia crop from the Ecke Ranch, Dümmen Orange remains an industry innovator with fresh colours, new unique product forms, and of course, reliable performance in the classic reds.
Viking Pro, a new introduction for the 2021 season, made headlines at the Sawaya trials, as well as throughout many of the growers in the Toronto region this year. Ball Seed Representative, Max Epp, said, “This is my top pick for new reds this year. It has the perfect, yet adaptable habit for multiple container sizes, dark foliage, nearly black transitional bracts, and a classic Christmas presentation.” This new upgrade to the Viking line certainly meets professional needs and delivers an easy program throughout the season.
Imperial, also a 2021 introduction for mid-season sales, put on a fiery display with the large, bright scarlet bracts set off by the dark, charcoal green foliage. This plant’s tight V-shaped structure, paired with the strong branching, makes it ideal for high-density premium production. As a more vigorous grower, it easily fills out medium-to-large containers with ease – and can handle a later transplant than comparable varieties for the same finish time.
In novelties, the J’Adore series continues to gain momentum in the Canadian market as a new plant for the modernday Christmas décor. “I’m a big fan of the new J’Adore varieties for their
unique presentation of the bracts, the bright illuminating colours, and how easy they are to blend into mixed containers.”, says Allan van Staalduinen, Ball Seed Canada. The velvety multitonal pink colours provide a fashion forward option to go beyond the 12days of Christmas and enjoying a full season of winter opportunities.
And the favorite of the show host, Mel Sawaya? “Runway Red was my top pick for being a plant that represents Christmas. This was a fantastic plant early on with excellent breaks, and has remained a strong performer with no botrytis, a classic red color, and continues looking great in my own home.”, says Sawaya. Runway Red is a new introduction for the 2022 season with an 8-week response time. This fashion friendly variety will steal the show with the large, vivid red bracts and boldly presented cyathia. This industrial strength variety has strong vigor and a broad and spacious habit for bold presentations, while also having the durability to go the distance throughout the season.
It is important for growers to see how these genetics perform in their truest nature, but under Canadian conditions, so they know how they will integrate into their own programs.”
Good horticultural management is key to growing a cannabis crop high in THC.
BY DERON CAPLAN, PhD
As a horticulture consultant specializing in cannabis production, one of the most common questions I get is, “how can we consistently increase THC content?” Unfortunately, my answer is not straightforward, but I’ve done my best to summarize it here. As a disclaimer, the following methods are based on hands-on experience, consultation with experienced cannabis cultivators and recent scientific studies. The research in this area is still quite limited.
If you want to maximize THC content in cannabis inflorescences (buds), cultivar selection is the most important first step. To a certain extent, the cultivar dictates the upper limit of THC expression. For this reason, building relationships with experienced breeders and constantly trialling
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new cultivars in your facility or new cultivation system is vital.
The next step to growing high-THC cannabis is good horticultural management. Maintaining good plant health throughout the crop ensures that plants can produce enough carbohydrates that can be converted to secondary metabolites like THC, other cannabinoids, and terpenes. Suppose a grower can consistently grow a healthy crop, avoiding common environmental or cultural stressors (described later), then it’s reasonable to assume that THC values will be close to the theoretical maximum of the cultivar. However, it seems likely that some horticultural practices can actually stimulate THC by pushing the plant beyond its optimal health. The research is early, but treatments
Maintaining good plant health can help the crop produce enough secondary metabolites.
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such as controlled drought stress during the flowering stage have stimulated THC content in some cases.1
Of the barriers to growing high THC cannabis, there are several that are key hurdles.
1. Inconsistent growing environment: Temperature and humidity impact plant transpiration and nutrient uptake. Environmental set points can be tuned to encourage faster growth rates and maturation, but if managed improperly, this can hasten the onset of water and nutrient deficiencies. Frequent swings in specific environmental parameters can also be troublesome. For example, overly fluctuating humidity can bring on issues with fungal diseases that impact crop health and, consequently, THC content.
2. Over-watering: Irrigating too frequently can cause an oxygen-deprived root zone, promoting disease from waterborne pathogens. The key is to allow sufficient dry-down of the growing media between irrigations, especially when water use is low at times close to
3. Harvest Timing: THC accumulates at varying rates depending on the cultivar. Typically, THC levels increase to a maximum at some point during flowering then begin to drop off as it is converted to other minor cannabinoids. By sampling the THC content in your buds throughout the flowering stage, you can identify this maximum to inform harvest timing. I’ve seen
THC levels peak anytime from day 40 to day 70 of flowering in an indoor environment.
4. Nutrient imbalances: These are commonly caused by sub-optimal fertilizer rates or ratios, growing media pH, or environmental conditions. Make sure to closely monitor the nutrients in leaf tissue and the growing media throughout the crop. Samples can usually be sent to a lab as part of a standard service.
Our fields are meticulously cared for to create some of the largest, most generously graded bare root perennials in the industry. Upon harvesting, our product is cleaned and trimmed, stored properly, and capable of filling out a container in the first year. The result is a strong, reliable retail presence. With hundreds of varieties to choose from, there is something for everyone!
5. Analytical testing: This point may seem out of place, but how you sample the buds and where you send them for analysis impacts the THC value going on the package. THC content can vary depending on the location of the bud on the plant or where it was situated in the growing area. Picking representative samples ensures a more meaningful result. There also tends to be variability between labs, so shop around for one that provides consistently accurate results.
THE DOWNSIDE OF HIGH THC
THC is not the sole indicator of good cannabis.
Back in the 1960s to 1980s, the THC content of cannabis was typically less than two per cent. Since then, cannabis breeders and growers have been pushing THC levels higher and higher to the point where it’s now common to see dry flower with over 20 per cent THC on today’s dispensary shelves.
While the focus has historically been on THC, cannabis trichomes (resin glands) also contain an array of other interesting and desirable compounds. For example, terpenes and other cannabinoids can alter both the physiological effects of a cannabis product and contribute to unique smells and flavours. The plant can only produce so much resin from these trichomes, so when THC levels are high, it can be at the expense of these other compounds.
Doesn’t more THC mean a more intoxicating effect? Not necessarily. A 2020 study from the University of Colorado at Boulder’s Institute of Cognitive Science2 found that the THC content of the cannabis flower was a poor indicator of potency. Sixty-four trial participants consumed dry flower ranging from
16 per cent to 24 per cent THC and reported no difference in intoxication based on THC content. This seems counterintuitive, especially considering that many consumers shop for higher THC products to get the best bang for their buck.
It is apparent that our fixation on THC has decreased the prevalence of other, perhaps more desirable, compounds in cannabis and, therefore, the diversity of the products on the shelf. It’s unfair to expect an immediate shift in demand away from high THC products, but consumers are gradually becoming more experienced and informed. Soon, it might be the terpene content, aroma, or the presence of some minor cannabinoid that drives a purchase. This could mean that growers can stop worrying about whether their next batch is going to hit 20 per cent THC and, instead, focus on unique cultivars and their crop’s other differentiating characteristics.
1. Caplan D, Dixon M, Zheng Y. Increasing Inflorescence Dry Weight and Cannabinoid Content in Medical Cannabis Using Controlled Drought Stress. HortScience. 2019;54(5):964969. doi:10.21273/hortsci13510-18
2. Bidwell LC, Ellingson JM, Karoly HC, et al. Association of naturalistic administration of cannabis flower and concentrates with intoxication and impairment. JAMA Psychiatry. 2020;77(8):787-796. doi:10.1001/jamapsychiatry.2020.0927
Deron Caplan, PhD, is a horticultural consultant at Sostanza Global. He is based out of British Columbia and can be reached at deron@sostanzaglobal.com.
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Revisiting 2021 provides a glimpse of what’s to come in 2022.
BY GRETA CHIU
Just when greenhouse operators were becoming more familiar with COVID-related issues, the latter half of 2021 brought about some memorable hurdles that will likely have an impact on 2022 and plans for 2023.
Torrential rainfall followed by flooding and landslides impacted British Columbia’s agriculturally rich areas in mid-November. The resulting road closures led to significant delays in shipments.
As Stan Vander Waal, owner of floriculture producer Rainbow Greenhouses based in Chilliwack, B.C. explains, it’s the Sumas Prairie area just west of Abbotsford where the flooding took place. He estimates that this has happened about five times over the past 25 years, “but this year has just been unbelievable compared to others. We got 10 inches of water in two days.”
Unable to ship the vast majority of the product,
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his team unpacked 30 trailers’ worth of goods. As roads opened and shut over subsequent weeks due to changing road and environmental conditions, the team shipped as much as possible but was restricted to slower moving routes. On one trip, Vander Waal personally transported a shipment into the Okanagan area, driving at 40 km/h on a 77 km road. “We had many, many late deliveries into the stores.” Routing through the U.S. has been another alternative, but this too has been met with high levels of congestion.
Though strong demand had been forecasted for Christmas, product shortages and delayed deliveries may result in a hit to the bottom line.
“A lot of Lower Mainland farms have been unable to ship to Alberta or further east without leaving Canada,” says Andrew Morse, executive director of Flowers Canada Growers. Many of their members in B.C. were impacted by the washed-out roads, unable to ship product or receive supplies.
Costs are rising, supplies are scarce and delays continue in the transportation of both goods and supplies. With high demands for ornamental products and local produce, can the sector keep up?
Greenhouse Canada and Fruit & Vegetable brought stakeholders in horticultural production, education and policy together to a virtual roundtable to discuss their experiences, ideas and initiatives to grow the next generation of horticulturalists.
Listen to the discussion on recruitment and training, what horticultural operations are looking for in candidates, and how to tap into a new labour pool.
Speakers include:
^ Kim Wickwire | Olds College
^ Laura Bryce | Kwantlen Polytechnic University
^ Dusty Zamecnik | EZ Grow Farms and Hometown Brew
^ Niki Bennett | Ontario Greenhouse Vegetable Growers
^ Tania Humphrey | Vineland Research and Innovation Centre
^ Stephanie Slaman | John Slaman Greenhouses Ltd./Slaman’s Quality Flowers
“No one is going to know how bad the impact of this will be to the industry for years,” he adds. Not being able to fulfill contracts may have consequences going forward, in addition to potential impacts on insurance coverage, soil health and other areas of production.
With most greenhouse vegetable producers in B.C. cleaning out their facilities near the end of the year, the impact of the floods was mixed. Linda Delli Santi, executive director of BC Greenhouse Growers Association (BCGGA), estimates that four or five of her members were more severely impacted by water damage and flooding in their facilities, but the main impact was in moving product to customers. Roadblocks going eastward led to some producers closing up a few weeks earlier than usual, but normal sales to the U.S. and within the Lower Mainland area were generally fulfilled. Product unable to be delivered east of BC were sold in secondary markets. Sector losses will be in delayed plantings as well as sales and marketing difficulties, she says. Plus, with many living in the valley, labour has also been an issue.
It was around mid-summer that challenges in the supply chain became increasingly apparent. “Especially when it came time for the members to start planning for their 2022 season,” says Delli Santi. “It’s not just costs. It’s delays and availability.”
Even before B.C. was affected by the floods, production costs were rising due to a combination of supply shortages, transportation issues and general inflation. A survey conducted by the BCGGA identified increases in key expenses, which included fertilizer at 28 per cent, cardboard boxes at seven per cent, plastics at 15 per cent, propagative materials at 12 per cent, insurance at 23 per cent, and growing media at 18 per cent.
of additional supplies offshore, such as fertilizers and plastics.
Already congested ports in Vancouver shut down briefly in December as floods prevented ground transport from reaching and receiving goods.
Plastics and pots for ornamental producers are in particularly short supply, and many items come from off-shore. “Suppliers were booked very early, the demand was higher, and with that you had shortages of resins, increased costs, [and] huge shortages of labour in these factories,” says Vander Waal.
“In general, we’re seeing delays of two to three months. We’ve generally tried to get ahead of this by ordering very much ahead,” he adds. In fact, the operation will be booking hardgoods for 2023 right about now.
“The cost of shipping a 20-foot container from China went from being $800 to $1,200 USD per container two years ago, to anywhere from $12,000 to $15,000 USD right now.” With some industries slowed down, still recovering or unable to find enough workers, Delli Santi notes that many transport containers are sitting empty and not being shipped back to their origins, making them unavailable for pick-up
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For Melhem Sawaya, a long-time greenhouse consultant in Ontario, he’s noticed that the cost of 4-inch pots have gone up from 4 cents to 9 cents. Hanging baskets have risen from 60 cents to 90 cents. “Shipping is the worst one,” he says, which is projected to increase by an average of 30 per cent among his customers. Meanwhile, the
minimum wage will be increasing to $15 in Ontario.
“Prices are going up. So for the greenhouse industry, natural gas is a huge concern,” says Albert Cramer, owner of Rolling Acres Greenhouses, Alta. and president of the Alberta Greenhouse Growers’ Association.
Electricity costs have greatly risen in the province over the past year as well, increasing by about 15 to 25 per cent. “It’s big for us because we have yearround production now,” he says of their business’ lit acres. “That becomes a huge cost. More so than even natural gas.”
As Cramer notes, there are many gas wells being shut down in Alberta and investments in re-drilling have not appeared. However, greenhouse producers in the province have benefited from very low costs over the past few years at around $2 per GJ. “It could be five dollars [per GJ] as a new normal, and then we would have to adjust to make it work.”
With inflation, all of the supplies and expenses are coming in higher, he says. “It costs you more to live, too. So theoretically, wages have to go back up again to make up for it.”
OPPORTUNITIES IN BLOOM
“There’s great momentum in the industry right now – something that we haven’t seen in years,” says Vander Waal. The demand remained strong for hanging baskets, potted plants and garden products. “Our retailers closed off the year with an excellent spring season.
“The one thing that didn’t go as well as we had hoped was vegetables,” he adds. They had anticipated far greater demand than what was actually sold. “All of our buyers were saying we’ll need more vegetables than ever before.” But in the end, they found they had grown too many. “Consumers were worried from the year before where [retailers] ran out of seeds, and they were buying them en masse,” he says. With seeds already planted, consumers may not have needed the starter plants as much.
While foliage plants remained strong, interest seems to be levelling off. Looking at BC floriculture in particular, he sees an abundance of opportunity for the cut flower market, particularly as product levels arriving from South America remain lower on average.
For spring 2022, Vander Waal anticipates strong demand once again, including for potted crops, but costs and
supplies will be an issue.
In Ontario, Morse who also serves as executive director of provincial association Flowers Canada (Ontario) Inc., reported sustained growth and export throughout 2021. According to his report presented at the organization’s annual general meeting in December 2021, “Ontario exported over $353 million in flowers and plants in 2020 – a modest jump from 341 million in 2019, an increase of 31 per cent since 2016. That’s really remarkable considering how the beginning of 2020 started and the impact that it had on members.”
However, the past year wasn’t rosy for all producers. During the AGM, Morse noted that there were “changes in what businesses and activities were considered essential, resulting in some members again, seeing lost sales opportunities through the spring season.”
With many member relying on access to the U.S. markets, the FCO team placed much of their efforts on keeping product moving across the border, working with the CFIA to address ongoing delays and to come up with solutions to common challenges.
“One major barrier to this has been the ongoing transition to the new GCP training program,” said Morse, who explained that it is the most critical trade program currently affecting their members. “Despite the value of the program, many members have struggled with the time crunch to change over operations and get approved for the new program deadline.” So far, their online GCP training program has seen success, with over 320 users across Canada and in the U.S. “Our standardized modules
have become widely adopted and CFIA now recognizes them when they get submitted.” Over the past year, they’ve continued to address changes in policy around pests, including strawberry blossom weevil, box tree moth, and Ralstonia, to name a few.
Because of the rising costs of supplies, shipping and production, Rainbow Greenhouses has increased their prices by 10 per cent, which will likely be passed onto the consumer. “We know that has a volume impact,” Vander Waal says. There’s no question in his mind that there will be additional price increases for the 2023 season, but he hopes that the jump won’t be nearly as high.
“People are going to start making decisions [about] what they want from the dollar that they spend at the garden centre,” he says. Ensuring a value-add component as well as high quality products can help make them more appealing to the consumer.
“Consumers are really not scared off by the higher prices,” he says, particularly if there can be good value added. However, this proposition may be more applicable to the Western Canadian consumer. “When we move more eastward, we see that moderates a little bit. Particularly when we get into our Manitoba marketplace, we start seeing a little bit of softening [in] the amount of money a consumer would offer for a specific value-added product.”
While Rainbow Greenhouses usually aims to increase their unit growth by 10 per cent in an average year, Vander Waal says they’re simply hoping for a two to
three per cent growth this coming year as the consumer adjusts to cost increases.
“As a business owner, the critical part is to make sure that we’re not afraid to raise those prices to match the costs,” says Vander Waal. Their price increase will simply help them cover their own costs and won’t be adding to their bottom line.
“It’s not easy to go to your customer and say, ‘I’ve done the math and I need 10 per cent more.’ That’s a tough discussion. But if you can go in there with a full account of what you’re seeing driving those costs…? You can get it.” Because of widespread supply chain issues, he felt that both sides were more open to pricing discussions compared to other years when the ask was almost 10 times less.
“As growers, we’re often afraid that when we raise the price too much, we might not be able to sell everything… or that’s going to make it too expensive.” He likens it to the rise in costs at coffee chains where consumers continue to pay for the product because they enjoy it.
“As growers we have to believe in our product, too. Don’t try to take the product down in spec to meet that low price point. Go the opposite way. You’re
better off to sell fewer units at a higher dollar than you are to sell more product.”
Pricing-wise, Cramer says prices for their own greenhouse’s vegetable products have remained fairly stable in Alberta. “If anything good can come out the pandemic, it’s that everybody looks a little bit closer to local. [A lot of] what we produce is staying in our area.” That, as it turns out, is good for logistics, as trucking product from outside of Canada has become a growing issue. Last winter, they had a tough time sourcing from Mexico, citing delays at the border.
For greenhouse vegetable producers in Ontario, 2021 was generally trickier compared to the year before. As Glen Snoek, marketing and economic policy analyst at Ontario Greenhouse Vegetable Growers (OGVG) explains, 2020 saw an estimated 30 per cent bump in retail sales for greenhouse vegetables, likely due to the transition away from food service. “That did not repeat as much this year
“We saw some increase in exports from Mexico into Canada in the latter part of the summer this year. And that was primarily due to some disease pressure issues that the sector was having at the time, especially with tomatoes.” As restaurants reopened in Canada and the U.S., produce swayed back towards food service and the varieties that cater to those uses. As a result, some growers had a rougher year in 2021.
Peppers seemed to finish the year at an acceptable price albeit a rough patch in the summer. Some growers were hit hard by the heat, leading to smaller sizes and lower yields. “There was some relatively strong pricing for larger calibre peppers, but that’s because no one had any for the better part of two months…the plants were dropping blossoms and it was just a real struggle for pepper growers at the latter part of August,” says Snoek.
In 2021, cucumbers displayed a volatility that the markets had never seen before. Pricing started at levels much lower than they were historically before ramping up, plateauing and then unfortunately plummeting. Snoek calls it the ‘bullwhip effect,’ where retailers tried their best to estimate quantities for orders, but when consumers started eating out more often, the retail demand suddenly dropped and grocers were left with too much product. This, in turn, likely lowered retail order volumes and the rest of the supply chain reacted accordingly. “It was a very unpredictable market this year,” he observes.
As for supply chain issues, OGVG and fresh produce experts don’t foresee the situation changing for the better in 2022. There will likely remain another year of strong increases in input cost pressures. “I hope I’m wrong,” Snoek says, but even if things start flowing now, it will likely take anywhere from six months to two years to recover from the congestion and recurring ripple effects at the ports. “The BC flood recovery is another wild-card as are trucking dilemmas that threaten cross-border movement. There is much fluidity with a lot of moving pieces.”
Supply chain issues haven’t barred operators from expanding this past year, though rising costs and scarcity in supply are catching up.
Delli Santi knows of a few B.C. growers who initially had plans to build this winter, but have delayed them due
to issues in obtaining structural parts arriving from Europe.
Rainbow Greenhouses was able to expand by 10 acres in B.C. and by another 15 acres in Alberta in 2021, albeit some slowdowns around COVID. This year, they’re working on a new 15-acre block set to come online for the 2023 season. “The cost of this facility is close to 20 per cent over previous builds,” Vander Waal says. “I wouldn’t be surprised, if I were pricing now, to find that it could be considerably higher than that.”
In Ontario, Snoek has noted an acceleration in new vegetable acreage over the past couple years, with a 10 per cent increase in 2021 over the previous year. “It was a sizeable amount. Historically, we increase about five to six per cent a year,” says Snoek. He surmises that they’re now seeing builds which were planned four or five years ago, likely delayed initially by cannabis via shortages in building material and construction crews.
“A huge portion of the new builds are lighted acres,” he adds.
The province currently sits at 630 lit acres and with this continued growth comes new possibilities, says Joe Sbrocchi, OGVG Executive Director. “We’re seeing a lot of staggered production. Some replants occur in August or September or even earlier, taking advantage of more suitable market conditions, not having to compete with the field growers, and then the ability to stagger sizes throughout the year … so you can meet all size requirements. Growers are finding ways to make it economical and are finding markets to make it worthwhile.”
“For many, many years, the only lit crops we had were tomatoes. This growth over the last couple of years is in large part due to the increase in cucumbers. We do have some growers experimenting with peppers, but that’s still [in the] very early stages,” says Snoek.
Looking ahead to 2022, OGVG encourages retailers not to look at their previous year or promotional activities, but to work directly with marketers to set prices appropriate for the sector.
“I’m optimistic that the growth in the American market and on the retail side outside of our traditional stomping grounds will continue. I’m hopeful that both has enough to absorb the increase in acreage that we’re seeing, so that pricing remains reasonable for growers,” says George Gilvesy, OGVG Chair.
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GARY JONES | Gary.Jones@kpu.ca
Last summer, Surrey Board of Trade presented “Surrey and BC Agriculture Industry - A Dialogue with BC Agriculture Minister Lana Popham.”1 Popham agreed that the time during COVID has been very difficult for everyone, while recognising the resilience and innovation shown by many. Here are some key (paraphrased) elements of the conversation.
The pandemic has highlighted flaws in our food supply and a need to make sure we’re more food secure. The [BC] government is focussed on being more self-sufficient: connecting soil, farmers, communities, (global) markets, and is looking for new opportunities to develop our food system, while maintaining high standards of safety and quality.
Agritech is everywhere (150 companies operate in BC). BC has a diverse landscape, 200 land-based commodities, and suitable technology development. Popham says that, ‘Applying technology to agriculture will increase our competitiveness and allow us to move into more sustainable models of production: less inputs, reduced costs, smaller environmental footprints.’ The BC government has invested $7.5M in agritech (e.g. robotic strawberry harvester development, potential mushroom harvester, vineyard drones). This has to be developed against a backdrop focussed on climate change (especially after the summer ‘Heat Dome’).
Agritech creates new / different kinds of jobs, and we have to solve the issue of intense labour
labour needs?’
• ‘KPU released a new report on the sustainability of the BC food system. What is your perspective on this?’
• ‘Today [Premier of] BC announced a new centre for clean energy. Can BC do more to de-carbonise?’
Across the Atlantic, issues facing the UK cucumber industry have been widely reported. In a HortiDaily report,2 the UK Cucumber Growers Association (CGA) is very concerned. Joe Sheperdson, Secretary of the CGA, says that, “The challenges facing the current owners and managers are more severe than ever before.”2 In particular, the extreme (300%!) rise in wholesale gas prices in Europe, the lack of labour (up to 40% of permanent positions going unfilled) and highly unpredictable transport availability mean “food shortages if no corrective actions are taken.” While Canadian growers are not dealing directly with the Brexit fall-out, all can relate to unprecedented cost increases of all consumables. “It is a time of crisis for the industry.” CGA members ‘are facing business-critical decisions this winter as to the viability of continuing often longstanding family-run business in an industry spanning over 100 years.’ So, what gives?
We need, more than ever, players willing to work with producers.
needs in agriculture, especially around Temporary Foreign Worker issues that have been expensive and challenging during the pandemic.
Love it or hate it. The ALR is always a hot topic. Regulatory changes effective Dec. 31st, 2021 allow flexibility for small family operations around housing on ALR lands, to encourage getting land into production. (Sadly though, the housing allowance isn’t tied to requirements to farm the land.) Also, a Young Agrarians ‘land matching’ program aims to link land owners with those wanting land, and has already matched 5,000 acres of valuable farm land.
Minister Popham fielded diverse questions, emphasizing the key issues and threats to agriculture:
• ‘What is your perspective on agriculture
“The CGA is asking the members of the British Retail Consortium to end the unsustainable pricing practices on UK produced goods and work with their direct suppliers to provide some respite on the corkscrew of ever-decreasing returns whilst looking to the government to form policies protecting food production business from spiraling energy costs and improved access to labour schemes”.2
The issues highlighted by the UK CGA are essentially no different to those facing growers here. And the bottom line mentioned so often is that public food security is under real threat. We need, more than ever, governments and industry players who are willing and able to work with producers to ensure reliable supply of high quality, nutritious, affordable healthy food, while at the same time ensuring those producers can make a reasonable living for themselves and their families.
1 Surrey Board of Trade, Surrey and BC Agriculture Industry, 16 July 2021.
2 Cucumber Growers Association, reported by Arlette Sijmonsma, HortiDaily.com 14 Sep 2021
Gary Jones is a faculty member in the School of Horticulture at Kwantlen Polytechnic University, Langley, BC. He sits on several industry committees and welcomes comments at Gary.Jones@kpu.ca.
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