Future of the Industry: U.S. greenhouse produce market to flourish
I came across an interesting article today about the future of greenhouse food production. Food service buyers are seeing the many benefits of produce being grown in greenhouses, and the industry is expected to grow rapidly over the next few years. Read the article below:
The U.S. greenhouse produce industry has been steadily growing over the past decade. This growth, driven in part by the need for more intensive production due to limited land, water and labor, has pushed sales to more than $3 billion and is estimated to reach more than $4 billion by 2020. This is according to Rabobank's Food & Agribusiness Research and Advisory (FAR) group. The report titled "The Growing U.S. Greenhouse Produce Niche -- Capitalizing on High Tech Quality and Consistency", goes on to point out that reducing the cost of high-tech greenhouse installations and differentiating from lower cost Mexican shadehouse and low-tech greenhouse competition will be the key to future growth.
The report, authored by Karen Halliburton Barber, Senior Analyst -- Produce at FAR, addresses a variety of opportunities for the industry as it grows. "There is a growing preference among U.S. Retail and Foodservice buyers for greenhouse produce," said Barber. "These buyers are seeking the quality and reliability of supply that greenhouse products provide."
Although greenhouse produce is estimated to only represent 1 to 2 percent of overall U.S. fresh fruit and vegetable production there are important trends to keep an eye on. Greenhouse tomatoes today account for as much as 70 percent of sales. This concentration in business is an indication that the key challenges noted in the report, costs and competition, are not insurmountable. Read more
At GGS we are noticing more and more growers shifting from field crops and shadehouses to full fledged greenhouses, due to the reliability and quality of crop produced from a robust, climate-controlled greenhouse structure.
