Lower electricity costs would allow Ontario growers to expand to year-round production, says official
KENT BRIDGE, Ont. — Development on farmland in southwestern Ontario doesn’t always result in the loss of agricultural production.
With the greenhouse vegetable industry, it means growth.
Jason Geertsma and his father, Rob, at Greenhill Produce are part of the phenomenon, beginning with a six-acre greenhouse in 2002.
“We never dreamed in a million years we would get this big. We’re getting close to what the natural gas supply infrastructure can handle. We hope in the future there will be some expansion.”
Geertsma said his family will be producing 86 acres of greenhouse vegetables once their latest 18-acre expansion is complete. The business is just one of many growing operations in the province.
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George Gilvesy, general manager of Ontario Greenhouse Vegetable Growers, said the industry has been expanding by six percent a year over the past five years. He sees it as a good news story but wishes government would reward that achievement with greater support.
The greenhouse industry in Ontario employs a mix of skilled and unskilled positions, including hundreds of temporary offshore workers.
“It’s an untold story. In essence, we’ve built the equivalent of two car plants in Ontario in the past five years.… Our members have spent more than $700 million,” Gilvesy said.
“If we were able to secure access to less expensive electricity or get more involved in co-generation, that would be of assistance.”
Electricity rates in Ontario are among the highest in North America. Gilvesy said lower costs would allow growers to produce tomatoes, cucumbers and peppers 12 months a year.
That requires supplemental lighting from November to February, but there’s a cost in electricity.
The co-generation strategy relates to the natural gas that greenhouse operators use to heat their greenhouses.
They already use the carbon dioxide that’s generated to support plant growth, which Gilvesy said is positive for the environment. The addition of co-generation could prove a win-win.
With the right pricing, growers could affordably expand to year-round production, and the province would have access to an environmentally friendly and steady supply of electricity independent of sunshine or wind.
There are now more than 2,500 acres under poly and glass producing tomatoes, cucumbers and peppers in Ontario, Gilvesy said. About 80 percent of the acreage is in Essex County in the Leamington-Kingsville area, which has the largest concentration of greenhouses in North America.
Strong supply this year has lowered prices below the six-year average, although profitability and pricing vary within the industry depending on the market.
Growers have focused on differentiating their crops. For example, tomato producers are growing cocktail, beefsteak and heirloom types in a medley of colours.
“That’s one of the things that has transformed the sector, is the amount of innovation we’ve had,” he said.
“There are different products, different variations.… With continued expansion of the industry, it’s incumbent on the marketing community to develop new products.”
