FRESNO, CA — Though still in its early stages, the U.S. greenhouse industry has been steadily growing over the past decade. This growth, driven in part by the need for more intensive production due to limited land, water and labor, has pushed sales over $3 billion and is estimated to reach over $4 billion by 2020. This is according to Rabobank's Food & Agribusiness Research and Advisory (FAR) group. The report titled "The Growing U.S. Greenhouse Produce Niche — Capitalizing on High Tech Quality and Consistency", goes on to point out that reducing the cost of high-tech greenhouse installations and differentiating from lower cost Mexican shadehouse and low-tech greenhouse competition will be the key to future growth.
The report, authored by Karen Halliburton Barber, Senior Analyst — Produce at FAR, addresses a variety of opportunities for the industry as it grows. "There is a growing preference among U.S. Retail and Foodservice buyers for greenhouse produce," said Barber. "These buyers are seeking the quality and reliability of supply that greenhouse products provide."
Although greenhouse produce is estimated to only represent 1 to 2 percent of overall U.S. fresh fruit and vegetable production there are important trends to keep an eye on. Greenhouse tomatoes today account for as much as 70 percent of sales. This concentration in business is an indication that the key challenges noted in the report, costs and competition, are not insurmountable.
The report concludes noting that growth in greenhouse production is likely to continue in the near term. A core challenge to that growth will be educating the consumer while differentiating high-tech greenhouse products from lower-tech products . Stricter labeling laws as well as greater awareness of certification programs already in place in the U.S. and Canada can aid in this education as well. Success in the niche is expected to continue to favor the most efficient, reliable and experienced producers with advantages in marketing, geography and technology.
A full copy of the report is available to the media upon request. Please note that the report is for informational purposes only and may not be reproduced, distributed or published in whole or in part, for any purpose, except with prior written consent by Rabobank, N.A.
About Rabobank, N.A.
Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees.
Rabobank, N.A. is a division of the Rabobank Group, the premier lender to the global food and agricultural industry and a financial services leader providing commercial, retail and agricultural finance solutions in 48 countries around the world. From its century-old roots in the Netherlands, Rabobank has grown into one of the world's largest and safest banks. www.rabobankamerica.com.
About Rabobank Group
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries. Rabobank is a premier bank to the global food, beverage and agribusiness industry, and has been financing leading food and agribusiness companies across North America for over 30 years. Rabobank's Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. Rabobank is also a leading financial partner to the renewable energy sector worldwide, providing financing for wind, solar and biomass energy projects in North America and other international markets. www.Rabobank.com.
Source: Rabobank Group
