It's the second day of the Canadian Greenhouse Conference in Niagara Falls (Canada, indeed) and at the time of sending out this newsletter, some visitors and exhibitors might wake up doubting if the final drinks of last night were worth the headache of today. Others are fresh up and running and ready to discuss the challenges and opportunities the North American market is facing – and there are quite some.
After years of rapid expansion, the industry was confronted with a severe slowdown once the dust of the pandemic settled. Increased interest rates, labor shortages, skyrocketing inflation, limited water and energy availability in key industry areas, viruses, and biosecurity threats, and a reduced interest in private equity thanks to several failed projects in the vertical farming and greenhouse industry – we can keep going on, but the result remained the same: high operation costs, increased competition, insecurity in the market, and so instead of newbuilds, companies focused on their internal organization, and acquisitions have lately been more common than expansions. So where are we at in 2024?
Although the market is not back at full speed, it is for sure picking up again. Although insecurities in the industry remain present, others have been resolved: water is available again for newbuilds, and different investment funds find their way to the industry, with different expectations than private equity. At the same time, some suppliers feel growers are keeping their cards in hand, awaiting the election results. The strawberry market, which expanded rapidly over the last few years, is struggling: it seems the learning curve in strawberry cultivation is steep, and the rapid expansion and lack of communication among growers is not helping. Rugose resistant varieties offer perspective, but no solution yet for the tomato industry.
Now the cards have been shuffled, it seems local for local is picking up in the greenhouse industry too – and not just for consumers. The Canadian suppliers market has grown and matured, and the industry that previously relied greatly on imports from the Netherlands relies more on local solutions and suppliers.
In short: enough to be seen and to be done at the CGC and it's no wonder growers find their way to the event year after year – especially given the strong conference program (and the drinks that start at 4).
Before we dive into the market developments further, we have approximately 35417 more photos to take – so enjoy a sneak peek and see you today at the CGC.
Do not forget to pick up your Greenhouse Guide at booth 2013! This comprehensive guide offers an overview of international horticultural suppliers and is available free of charge.