"We see that there is global interest in realizing horticultural projects, but also that many projects stumble over securing financing or the availability of operators for the greenhouse. We are now taking care of those aspects." These are the words of Milan Zuidhof from GrowingDutch. The company has advanced plans to set up a high-tech greenhouse in Canada: GrowingAugusta. Initially, 8 hectares will be established, but the total project will consist of 8 such phases. "The location is confirmed, due diligence is complete, and the permits are in place," he sums up. The next step is securing investments: discussions with investors are ongoing both in Canada and the Netherlands.
Milan and Marc Zuidhof
From finance to project
Marc Zuidhof, also from GrowingDutch, explains how he and his son Milan, both with financial backgrounds, were approached by suppliers from Westland a few years ago. These companies noticed a global interest in their products but also saw that their clients struggled with securing financing and finding suitable greenhouse operators. Marc says, "There was a need for a turnkey solution that combines financing, development, and operations."
Together with various suppliers, GrowingDutch developed a strategy that integrates these elements. Central to this is the integration of innovative technologies, through which they developed a business model that is less dependent on human operators—or in other words, the grower. "The traditional grower, as they used to be, no longer exists. Young people are no longer interested in the profession. But thanks to innovations from Westland, it's now possible for a horticultural business to no longer be entirely dependent on the grower," says Marc. He refers to technologies like sensors and robots and explains that their Canadian greenhouse will be equipped with these. "We will also use artificial lighting to enable year-round production and work with strict hygiene protocols. This ensures a clean and safely grown product." This is further enhanced by the choice of location in Augusta, in Ontario, but away from the busy Leamington area. "This means we have less contamination from other companies and no overloaded power grid."
Partnerships
In developing this concept, they partnered with Horti-Tech. This Dutch company was established by the Van Adrichem family, founders of the World Horti Center. Last year, they launched their own trial and demonstration greenhouse, which also serves as a training center for growers and horticultural workers. Horti-Tech will be involved in providing cultivation advice as well as HR and technical advice. Dutch Greenhouses, a partner and builder of the greenhouse, also plays an important role. The company has already completed projects in the Middle East, Europe, and the United States and is now ready to realize its first Canadian project.
"The plot offers space for 8 phases of 8 hectares each," says Milan. "As more phases are realized, we want to use remote technologies to monitor and advise on cultivation from the Netherlands. At the same time, we also want to train and attract our own people. There is a significant shortage in the market, but with a high-tech workplace, we see an opportunity to interest others in this—also those without a biological or plant science background. Of course, someone needs to understand what's happening in a greenhouse, but we see horticulture increasingly relying on data. Instead of a traditional grower, sensors now measure at a molecular level how moisture is managed in a tomato."
Fundraising
However, before all this can happen, funds must first be raised. These can come from both North American and European parties. "In Canada, we are currently attracting the major players. The long-term vision of the projects requires substantial investments. In the Netherlands, we are open to allowing various small or large investors to participate collectively through the fund," says Marc.
But what about those investors? In recent years, enthusiasm for horticulture from their side has significantly declined. This is due to disappointing results, with AppHarvest being the absolute low point. "We have to explain a lot that we are not like that," confirms Marc, who conducted an in-depth analysis to find out what went wrong there. "We prefer to take things slow, think things through, and not rush. By ensuring that we are well-organized and collaborating with the right parties, we can guarantee good performance."
Trust and demand
Marc sees that there is still trust and demand in the market. He explains that the North American market is looking for more safely produced food, in which horticulture plays an important role. "Even in food, globalization is happening, with Dutch peppers being flown into Canada. Completely unnecessary, given that it can also be produced locally, reducing the number of food miles and food waste. From the Windsor corridor, you can reach a market of 100 million people within 8 hours: Boston, New York, Washington," he lists. This market is served by a limited number of trading companies, which currently control about 80% of the market, and Milan also expects to work with one of these parties. Initially, they will supply tomatoes, but later, they want to expand the range with cucumbers and peppers. "We have spoken with these parties and also discussed which products and segments are in demand. It's not about bulk production but about premium tomatoes, where taste is important. And we can achieve that thanks to our concept, including the high-tech greenhouse and Dutch expertise."
For more information:
Milan Zuidhof
GrowingDutch
[email protected]
www.growingdutch.fund
Dutch Greenhouses
https://dutchgreenhouses.com/
HortiTech
www.horti-tech.com