The Grower Newspaper March 2015

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CELEBRATING 136 YEARS AS CANADA’S PREMIER HORTICULTURAL PUBLICATION

MARCH 2015

VOLUME 65 NUMBER 03

Charting the flight of Canadian greenhouse investment to the U.S. Provincial regulations are stalling growth and jobs

Like strings of pristine pearls, these tomatoes on the vine promise premium prices here in Canada and in the U.S. Seventy per cent of Ontario’s greenhouse vegetable production is exported to the U.S. The dive in the value of the Canadian dollar should help business, although competition between Canadians in the U.S. is fierce. Here, Fabio Castelli, greenhouse operations, inspects the crop in a Mastronardi Produce facility in Kingsville, Ontario. Photos by Glenn Lowson.

INSIDE Why onion prices are at rock bottom Page 7 What’s new in potato production? Page B1-8

Focus: Crop protection

Page B9-20

www.thegrower.org P.M. 40012319 $3.00 CDN

KAREN DAVIDSON Geography matters. Or more to the point, policy and tax jurisdictions matter. While Ontario greenhouse vegetable growers expanded their domestic acreage by six per cent to 2553 acres in 2014, they made far larger investments in the United States. Statistics aren’t readily available of their total footprint in the U.S., but the plans of several leading growers are testament to the trend. Early this year, KingsvilleOntario-based Mastronardi Produce announced its plan to build a large-scale pepper facility in Coldwater, Michigan. When the new 41 acres of Pepperco USA are added to the current tomato greenhouses, its American presence will grow to 100 acres in total. These facilities have been built rapidly since 2012 with state-of-the art lighting, water and nutrient management.

Nature Fresh Farms based in Leamington, Ontario will make its mark in the U.S. with a 175acre greenhouse over seven years in Delta, Ohio. About 300 jobs will be created. “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 will be poised to ship its first case of vegetables in December 2015,” stated Peter Quiring, president, in a news release. “The greenhouse project will be completed in several phases over the next seven years with a total investment approaching $200 million by the year 2022.” Red Sun Farms, based in Kingsville, Ontario, opened 18 acres to local officials in a ribbon-cutting ceremony in Dublin, Virginia last November. It’s the first of three phases, with an emphasis on organic production.

Orangeline Farms is also considering an expansion in 2015 says Jordan Kniaziew, vicepresident sales and marketing. “It’s much easier to make decisions outside of Ontario,” says Kniaziew from Leamington, Ontario. “Our input costs – labour, hydro -- are higher than competitive jurisdictions.” Kniaziew has just come back from the world’s largest produce show, Fruit Logistica in Berlin, Germany. He’s convinced that Ontario’s greenhouse industry is on par or leading the Europeans. With nearly $1 billion in overall industry sales, he and other growers are frustrated that Ontario’s government is not engaged in building more infrastructure such as natural gas and hydro. The premier has challenged agriculture to create 120,000 new jobs by 2020, yet the business climate is not conducive for this growth. Money isn’t patient. It follows the path of least resistance to build market share.

Ontario growers aren’t alone in their migration south. British Columbia greenhouse grower Casey Houweling is building a 28-acre facility in Mona, Utah. This is in addition to his successful 125-acre facility in Camarillo, California. With 50 acres as home base in Delta, British Columbia, he has placed his bets on a sunnier economic climate south of the border. Despite its drought status, California is close to millions of consumers. Utah’s lure is access to waste heat and carbon dioxide from a nearby business. Linda Delli Santi, executive director of the B.C. Greenhouse Growers’ Association explains the exodus. “Our members are going to the U.S. because of the provincial government and its policies,” she says. “They can buy water in the U.S. cheaper than in British Columbia.

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