What to grow?

What to grow in a greenhouse?

The choice of crop is a crucial factor for the economic feasibility and success of a commercial greenhouse operation. The revenue of cultivated crop is responsible the return on investment in the greenhouse and its operational costs. Crop varieties suitable for greenhouse cultivation therefore need to differentiate themselves from open-field varieties; in quality, variety or as locally grown produce.

On our website, we categorize the crops into vegetables, flowers, cannabis and indoor produce. Potted plants and fruits, like strawberries, do not really fit in this classification. But looking at the cultivation methods and crop characteristics, it serves its function well. Tomatoes are the single most popular crop to be cultivated in greenhouses and come in numerous varieties. Choices between truss- cocktail- and cherry tomatoes can be made to target niche markets. The same applies for the other categories, where the variety is the result of decades of selective breeding, specifically to thrive in greenhouses.

A local approach for offtake

In many cases, tapping into local market demand is the easiest way to start off with a greenhouse operation. By producing a crop or crop variety that is not yet available in local supermarket chains, off-take could be ensured when promoted well. Due to minimal transportation costs, there is a large potential to compete with imported crops.

Vegetables, flowers and ornamentals grown in a Dutch greenhouse, are cultivated in a safe and environmental friendly way. Increasing awareness on used pesticides, food-security and sustainability offers great opportunities for investments in greenhouses that have a local-to-local approach. Products with a “biologically grown” and “locally grown” label have earned a premium position and price in supermarkets. A trend that allows greenhouses to differentiate their product.

Monoculture vs Multiple Crops

Monoculture is the practice of specialising in one specific crop rather than cultivating multiple crops. This very principal has helped the Westland Region in The Netherlands to become what it is today. Growers made the choice to specialize in one crop, where neighbours chose a different crop. Monoculture increased production quantity and quality, whilst lowering production costs.

However, the desire to grow multiple crops in one greenhouse is not uncommon. This desire is especially strong for entrepreneurs in greenhouses who want to test the market and do not want to bet on one horse with a crop. Because the handling of flower and vegetables are worlds apart, it is advised to stay within the “vegetable range” or “flower range” when considering multiple crops. To benefit from the economies of scale, the number of cultivated crops should stay as low as possible.

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Off-take agreements & cultivation contracts

Making an investment in a new greenhouse project, comes with risks. Producing the product at the right quality and quantity is one. Being able to sell the produce at the right price, whether these are flowers or vegetables, is by far the largest.

To limit those risks, off-take agreements and cultivation contracts can offer security to growers, investors, and banks. Being able to sell all, or a portion, of the produce at market price brings peace at mind.

When tapping into a local niche market, it is important to have potential customers lined up, even if it is only with a letter of intent. This allows for easier financing and it makes the choice of crop and variety easier. Arguably just as important, off-take agreements allow growers and managers to focus on a product and setting up the business properly.

Optimizing revenue

When dealing with fresh produce, there (almost) always is a waste portion. Whether it is leftover cucumbers in the supermarket or “A quality produce” that, due to delays in transport, can only be sold as “B quality produce”. The allocation of this risk is where the mark-ups are. This can be in a supermarket, in wholesale or through distribution channels. By shortening the supply chain, the waste portions are naturally significantly minimised.

By acting on developments in the market, growers can often steer when the produce is harvested and sold. The best example for this is in roses; every rose grower lines-up their production facility to have their production peak on Valentines day, when the prices are highest and sales are certain.

What to grow?

What to grow in a greenhouse?

A local approach for offtake

Monoculture vs Multiple Crops

Do you need help deciding what to grow in your greenhouse?

Do you need help deciding what to grow in your greenhouse?

Off-take agreements & cultivation contracts

Optimizing revenue

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