Huge Growth Expected for Greenhouse Produce in US

The United States greenhouse industry has booked significant growth over the past decade and is set to reach more than $4 billion in sales by 2020, according to a Rabobank report. The study executed by the Rabobank's Food & Agribusinesses Research and Advisory (FAR) group said growth was mainly driven by a demand for more efficient intensive production, following limited availability of land, water and labor in the US.

The researchers pointed out that the most important challenges facing the industry are high costs of greenhouse installations and competition from Mexican shade houses and low-tech American hothouses. Cost reduction and product differentiation are key to secure future growth, they said.

High-tech greenhouse produce is estimated to represent 1 to 2 percent of the overall US fresh fruit and vegetable production. But Karen Halliburton Barber, Senior Analyst at FAR, said there is a growing preference for greenhouse products among retailers and consumers. "These buyers are seeking the quality and reliability of supply that greenhouse products provide," she said.

The report mentions the greenhouse tomato that accounts for 70 percent of all tomato sales in the US as an example.

Greenhouse growers are faced with the task to educate retailers and consumers about quality differences between their products and fruits and vegetables from so-called "protected agriculture", a low-cost, low-tech growing method. In the US high-tech greenhouse products carry a Certified Greenhouse seal. According to Certified Greenhouse Farmers, a trade association representing American greenhouse growers, this means that a product was grown in a "true greenhouse" and represents "the best of the best in quality".

On its website the association emphasizes that what sets greenhouse fruits and vegetables apart is consistent high quality and a sustainable production process. The controlled environment and computerized irrigation and climate control systems minimize water use and protects against disease intrusion, the organization stated.

And because all products are hydroponically grown, meaning in coco fiber instead of soil, he possibility of soil-born contamination is eliminated and there is no need for herbicides.

Source: HortiBiz - Huge Growth Expected for Greenhouse Produce in US