Revised September 2018

Agdex 250/830-2

Commercial Greenhouse Vegetable

Production
T his factsheet introduces greenhouse vegetable
production as a potential business opportunity. The
focus of this profile is on the key management issues
Industry highlights
In Alberta, the greenhouse industry is comprised of
associated with producing and marketing greenhouse about 230 greenhouses covering some 137 hectares.
vegetables in Alberta. Of these 230 greenhouses, 51, or approximately 22
per cent, are vegetable producers. Even with less than
The overview in this factsheet is not intended to be a a quarter of the greenhouses in the province, these
substitute for individuals making their own thorough vegetable producers make up approximately 46 per
assessment of all the key factors that would influence cent of the production under cover in Alberta at 63
the success of their individual operation. hectares.

Greenhouse vegetable production in Alberta is

Topics comprised of three main crops: tomatoes, cucumbers
and peppers. Other greenhouse crops grown in the
Industry highlights province include lettuce, arugula, basil, eggplant and
Business considerations snap beans, but typically on a much smaller scale.
Regulatory basics
Market basics The following table provides a brief crop overview of
Structure and start up basics the greenhouse industry in Canada and Alberta.
Production basics
Economic/finance basics

Table 1. Greenhouse industry in Canada, 2015

Total Total
Total number of Other (rigid
greenhouse greenhouse Glass Poly film
greenhouses plastic, etc.)
area area
2 2
(m ) (m ) (m2) (m2) (m2)
Ontario 1,000 14,019,833 14,019,833 4,513,588 217,616 9,288,629
Quebec 685 2,522,154 2,522,154 376,614 33,838 2,111,702
B.C. 525 5,153,339 5,153,339 3,999,721 160,930 992,688
Alberta 230¹ 1,370,000¹ 1,370,000¹ 1,160,423¹ 33,084¹ 1,160,423¹
Canada 2,978 23,797,404 23,797,404 9,162,561 512,332 14,122,511
Data from CANSIM 001-0046
¹ Data taken from “Profile of the Greenhouse Industry in Alberta 2014”
Table 2. Greenhouse vegetable production, 2015
Tomatoes Cucumbers Lettuce Peppers
Location Kg Kg Dozen Heads Kg
Ontario 178,968,106 144,436,581 42,457,087 --- 92,153,552
Quebec --- 1,648,970 484,714 26,250,668 782,752
B.C. 55,690,027 23,706,063 6,968,390 --- 40,392,648
Alberta 10,272,452 9,351,061 2,748,741 523,332 1,242,695
Canada 266,844,897 180,194,102 52,879,693 36,505,919 134,638,065
Source: Statistics Canada CANSIM 001-0006

Of the greenhouse vegetables grown in Alberta, the • Can you assess market potential?
majority are destined for domestic consumption. This • Do you have the financial resources to invest in the
domestic customer base makes access to retail markets development and operation of the business?
a critical issue for vegetable producers. • Are you able to juggle several activities at once?
• Can you manage labour and employees?
While a large amount of Alberta’s greenhouse • Can you keep control of the business financial
vegetables are produced to supply the co-operatives affairs as well as the production operations?
in the province, many growers are also active in farm
direct sales. Table 3 illustrates this point with data In addition to these considerations, individuals thinking
from the “Profile of the Greenhouse Industry in Alberta about establishing a greenhouse vegetable enterprise
2014” (Emmanuel Laate, Profile of the Greenhouse need to determine which marketing methods will
Industry in Alberta, 2015). Note: percentages do not provide the best fit for their operation. New entrants
add up to 100 per cent as many producers sell into to the greenhouse vegetable industry need to assess
more than one market channel. each market carefully for each vegetable crop they
might produce to determine if there is room for more
Table 3. Method used for majority of sales in greenhouse production.
vegetable growers
Time should be spent researching potential customers,
Marketing method Percentage identifying target markets and identifying different
Own retail shop 9% products/growing methods that can be used to
Farmers' markets 18% differentiate the producer and the product.
Wholesale/co-op 47%
Supermarkets/grocery stores 18%
Setting up a greenhouse operation is an expensive
endeavour given the need for a substantial amount
Independent garden centres 3% of land, the correct structure and inputs. Given the
Mass merchandisers/box stores 6% modest margins in the industry, as expressed in the
Percentages do not add up to 100% - many Table 4, many of the greenhouses in Alberta tend to
producers sell into more than one market channel. be family-owned businesses rather than corporate
businesses. This pattern is starting to change, due in
part to diversification in market channels amongst
Business considerations producers and further development of the grower co-
ops within the province.
Recent years have seen tremendous growth in the
greenhouse vegetable industry in Alberta, with Given Alberta’s climate, heating fuel is an important
renewed optimism for the future. However, potential consideration that can also have a substantial effect on
growers need to consider some basic requirements both short and long term expenses. While the majority
before entering the industry: of greenhouse operations are heated using natural
• Do you have a site that offers access to markets, gas (82%), propane, coal and wood are also popular
labour, good quality water, utilities and room for options for heating.
future expansion?
• Are you able to work from a high level of Historic lows for natural gas prices have decreased the
production management while still being able number of growers switching to alternative fuels in
to apply intensive management skills at the crop recent years; however, the potential for high fuel prices
level?

2
Table 4. Greenhouse vegetable production operating revenues and expenses
Cucumber Tomato Pepper
production production production
$ per square $ per square $ per square
metre metre metre
Average gross revenues 115.33 116.06 111.43
Average operating costs 109.06 101.01 114.67
Capital costs 9.17 9.02 10.19
Cash costs¹ 109.03 100.81 113.86
Average total production costs 118.22 110.03 124.86
¹
Cash costs is equal to total operating cost less unpaid labour.

continues to be a concern for growers and should be The roadside sale of vegetables within a town or city
for new entrants as well. To decrease production costs is largely unregulated, but may require a peddler’s
further, attention should be paid to energy conserving licence or business permit depending on your local
practices and energy efficient production methods. A government. Somewhat similarly, farmers’ markets
greenhouse energy and materials best management and those who wish to sell at them are often governed
practices assessment guide has been put together by by boards with rules set down by the board. Vendors
Alberta Agriculture and Forestry and can be found must abide by the rules of the market and any
at the following web link. http://www1.agric.gov. regulations that entails.
ab.ca/$Department/deptdocs.nsf/all/green16108
In Canada, the marketing of some vegetables through
wholesale channels is regulated under the Canadian
Regulatory basics Agricultural Products Act (CAPA). This Act governs
the marketing of common greenhouse crops such as
Individuals who are thinking about building a tomatoes, cucumbers and lettuce. The Act provides for
commercial greenhouse should investigate the national standards and grades that apply to vegetables
municipal requirements (such as business licence, sold inter-provincially or to wholesalers.
by-laws, land use requirements, etc.). Requirements
differ from municipality to municipality and can As of November 2012, a new Act called the Safe
range from little in the way of regulation to complete Food For Canadians Act received Royal Assent and
environmental impact reviews. consolidated several pieces of legislation including
CAPA. While the new Act will have relatively little
Zoning or the determination of how land can be used effect on those who sell into farm direct marketing
in a given area is done at the county/municipal level. channels, those selling across provincial borders or
Subsequently, zoning will affect the building code online will be affected and should stay informed as the
applied to the structure and operation. Always check regulations continue to develop.
with the local government to determine what sort of
licences and permits are required for an operation. More information and a copy of the Act can be found
on the Government of Canada’s Department of Justice
Given the dependence of greenhouse crops on website (http://laws-lois.justice.gc.ca/eng/acts/C-0.4/).
irrigation to meet their water needs, access to an Information on the regulations surrounding produce
adequate supply of good quality water is a critical and food sales can also be found with Alberta
component of any greenhouse operation. Depending Agriculture and Forestry (http://www1.agric.gov.
on the size of the proposed operation and the water ab.ca/$department/deptdocs.nsf/all/agdex3482).
source, an irrigation licence may be required.

Individuals considering developing a greenhouse

operation should contact a farm water specialist with
Market basics
Alberta Agriculture and Forestry by calling 310-FARM Many growers say that it is one thing to grow a good
(3276) before development to ensure water is available crop, but another thing entirely to sell it. To ensure a
and of good quality. consistent market for the product(s), market research
is strongly advised before any production activities are
started.

3
Traditionally, the three main greenhouse crops Farmers’ markets continue to grow in popularity;
(cucumbers, tomatoes and peppers) are sold however, historically, they tend to move relatively
wholesale, whether directly to a wholesale client or small quantities of greenhouse vegetables. Still, there
through one of the marketing co-ops in the province. are many advantages to selling at a farmers’ market
such as higher prices, ability to interact with your
Over time, interest has grown substantially in niche client, increased visibility for new operations and
crops such as herbs (basil, cilantro, etc.) and leafy greater flexibility on product grade.
greens (leaf lettuce, arugula, mustard greens, etc.);
however, these crops tend to move in smaller volumes However, farmers’ markets can be expensive ventures
and are often sold direct-to-market. Generally for the producer given that the markets are often
though, these niche crops command a higher price and spread out geographically. A grower must attend
are quicker to produce (reduced days from seed to numerous markets to sell even a fraction of what they
harvest). could with wholesale.

Furthermore, some trends to watch for in produce Thanks to the increased demand for local food, there
include such things as heirloom varieties, snap peas, has been an increase in the number of producers
chef-inspired greens and salad mixes as well as further selling to chefs and restaurants in their geographic
value-added products. location. Often, these buyers are higher end dining
establishments looking for a premium product in niche
Regardless of the approach chosen, here are some or different varieties.
specific questions individuals should ask when
considering commercial greenhouse vegetable Similar to wholesale marketing, the relationships
production: and expectations of management are key in these
• Is there an excess supply of this product in the arrangements, which can often move higher volumes
market (shown by lower prices and “blowing out” of produce than a farmers’ market, but at a price
of product)? slightly greater than wholesale.
• What products do consumers buy?
• Who buys the product(s)?
• Where are the buyers located? Structure and start up basics
• What is the market size? Greenhouse vegetable growing currently looks little
• What, when and where do the buyers buy? like it did in the past. The need for ever more efficient
• What are the packaging requirements of each production and increased yields has resulted in
market? increasingly scientific production that is monitored
• What are the market prices? by computers and an almost constant analysis of
• How much do prices fluctuate? information.
• Is the market mature or growing?
• Does the market have room for additional New entrants to greenhouse vegetable production
production? should be prepared to study existing operations and
• What will it cost to ship product to this market? relevant material to gain the knowledge needed to
• Do you have access to a main transportation succeed. Continuous improvement is required to
corridor? remain competitive, so growers should be prepared
to also do their own on-site research to determine the
In the world of wholesale greenhouse vegetables, growing techniques that give them the best results.
Alberta continues to be a price-taker. This phrase
means that growers compete on pricing with those When considering a potential greenhouse location, a
from Ontario, British Columbia, California, Mexico and, number of different factors need to be considered:
to some extent, the Netherlands and Spain.
Slope of the land and exposure to the sun
Prices fluctuate throughout the year depending on
factors such as production in competing areas, season • How does the land drain?
and field vegetable production. Furthermore, most • Is your structure oriented for maximum sun
wholesale buyers will only deal with operations of a exposure?
certain size who have an established track record of
production. Relationships with these buyers are crucial Access to adequate amounts of good quality water
as is staying aware of their needs and trends in their
sales and consumer preferences. • Do you have sufficient water? “Sufficient” can
mean up to 8 cubic metres of water per square

4
 metre of greenhouse space per year. and resource efficient manner?
• Are your irrigation system and pump designed to • Have you consulted experts in this field?
handle this quantity? • Have you developed a plan with your construction
• What is the quality of your water? Electrical company?
conductivity (EC) and sodium absorption ratio
(SAR) are used to measure water quality. If the
SAR is greater than 4.0 and/or the EC greater than
0.8, either special management will be needed, or
Production basics
you will have to find an alternate water source. Once you have answered the above questions and dealt
with the concerns around site layout, construction and
workflow, it is a good time to think about the crop you
Access to utilities
will be producing. Regardless of the crop you choose,
• Is there natural gas on the property? If not, do you there will be multiple varieties available from multiple
have access to propane? Coal? Wood? How will companies, all of them varying in qualities and traits.
these fuel costs affect your bottom line?
• Do you have access to electricity? Three- Talk to other growers who grow similar crops
phase power is more efficient for greenhouse for recommendations on varieties and take into
production, but can be costly to obtain. consideration the issues that may make your operation
unique (for example reduced access to water/varieties
Access to labour bred for dryer climates, production method, produce
qualities, etc.) when making a decision.
• Is there a local labour force that can be accessed?
Will you employ seasonal workers? Temporary
Once a crop and variety have been picked, future
Foreign Workers?
growers will need to consider their own production
• Do you comply with all the legislation/regulation
process. Oftentimes, beginning growers will use
required for hiring these types of workers?
processes much more basic than established growers
who have access to capital and other resources. This
Structure and room for future expansion basic approach is perfectly acceptable but must be
• What are your expansion plans? considered when looking at all aspects of production
• How many acres of land do you have? from labour to equipment and markets.
• Do you have enough appropriate space in which to
expand? While growers with more experience or capital may
• What are the zoning requirements or limitations have access to more labour saving technology or
for the land? increased yields, these technologies will often require
• What building codes do you have to adhere to? markets capable of accepting larger volumes of
• What permits or business licenses do you need? produce, which may, in turn, require more investigation.

Potential environmental hazards: industrial pollution, Crop scheduling

contaminated water Scheduling of crops is critical in Alberta where light
• Are there neighbouring operations that may affect levels decrease substantially in the winter months.
your production? Advances in lighting and changing methods of
• Will these operations affect the quality of your production have had dramatic effects on yield quality
water/air? and quantity, meaning the information contained Table
• How will you mitigate the potential risk of water 5 is subject to change.
contamination and air pollution?
It is estimated that approximately 90 per cent of a crop’s
Greenhouse layout quality and yield are dictated by appropriate control of
the greenhouse environment. Aspects such as carbon
• How large a structure will you build? dioxide levels, light, relative humidity, temperature and
• What glazing material will you use? water quality (EC, pH) all have to be managed to reduce
• Will the structure allow for growth over time or plant stress and optimize yield.
will you fill it in one season?
• Do you have an appropriately sized packing shed/ Currently, these aspects are primarily monitored by
header house? computers; however, growers should have enough
• Will you need to consider cooling equipment? knowledge of the correct crop conditions to interpret
• Have you looked at the efficiency of your layout? these readings and be able to address issues before
• Will production and post-harvest flow in a time problems appear in the crop.
5
Table 5. Crop scheduling for commercial greenhouse vegetables
No. of Seed to
Months typically produced Crop density Yield
cycles/year harvest
Crop Seeded Planted First harvest (days) (plants/sq. m) Kg/m 2
Nov January February 45 (summer) 1.25-1.50 110-1301
2
June July August 60 (winter)
Cucumbers,
Nov January February
long English
3 April May June
July August September
Cucumbers,
Similar to above but potential for 4 crop cycles in a year 70-90
mini
Tomatoes 1 November January February 110 2.5-3.2 2
50-70
Peppers 1 October December March 130 3.3-3.53 22-26
Eggplant 1 November January March 120 1.67-1.75 40-45
Lettuce 12-504 Seeded and harvested weekly 42-70 38-97 5.7
¹ Measured in cucumber/m²
2
In many systems, every fourth plant is twin-headed come late March, bringing the density closer to the 3.2 plants/m²
³ Each of these typically will have two stems, resulting in density of 6.5 to 7.1 stems/m²
4
Given the short seed to harvest time and advances in lighting, these crops can be grown and harvested nearly every week of the year

Growing media Some Alberta growers who wish to produce in a

Most greenhouse vegetables in Alberta are grown certified organic production system are now returning
in a hydroponic system, which typically refers to any to soil-based production (hydroponic production is not
method of production that does not require the use of eligible for organic certification) but are using better
soil. Even without soil, plants still require some sort soil and disease management techniques.
of substrate in which to anchor themselves and begin
growing. Obtaining seedlings
Nearly all commercial vegetable producers in the
This substrate, often called media, comes in a variety
province will contract a propagator to grow their plants
of different forms, shapes and qualities. Most
from seed to the three to four-leaf stage for them.
common is rockwool, a spun mineral product, followed
These propagators, of which there are only a few in
by coir (coconut fibre) or peat. Regardless of material,
Canada, are set up to ensure consistent germination on
all media have a few main characteristics:
a large scale.
• well drained
• uniform in particle size and texture Growers interested in obtaining these seedlings should
• disease-free contact a propagator early in their planning process
• good moisture/air-holding capacities to find out any critical dates in the production of
their seedlings. Potential growers should also talk to
A variety of different considerations will affect the neighbouring growers and try to time the delivery of
media selected, such as crop grown, production system their products together, where possible, to reduce
used or production designation. freight costs.

Historically, Alberta growers planted directly into the

soil of the greenhouse and continued to do so for Crop nutrition and irrigation
crop after crop after crop. The build-up of soil-borne Crop nutrition and irrigation are two factors that
diseases and nematodes from repeated cropping require constant vigilance and quick correction when
necessitated the move to hydroponic methods of things go wrong. Failure to correct problems with these
production, first in straw, then sawdust and finally to factors not only has the potential to reduce yields, but
the materials of today. can also decimate a crop if not dealt with quickly.

While different methods of sterilization such as steam For vegetable crops, the amount of nutrients, the pH
and chemical sterilization were used quite regularly in and electrical conductivity (EC, or more simply, the
the past, these methods became less effective over amount of salts in the solution) required by the crop
time. Disease-causing organisms became resistant to depend on a number of factors:
chemical controls or began to move away from the
sources of steam, removing these options for control.
6
• Temperature through the media (the leachate) and will compare
Most greenhouse vegetable crops grow best at the two results. Advanced growers will even have a
a daytime temperature of 20 to 24°C. Lower section of their crop on a scale so as to monitor water
temperatures will decrease photosynthesis and uptake and loss by the media, total weight of the plant
respiration, which will decrease the amount of and water use over time.
water taken up by the plant.
As fresh water becomes more scarce, increased
• Intensity/hours of sunlight
emphasis will be put on re-using the crop leachate. In
Increased hours of sunlight or intensity increases some jurisdictions (for example Ontario), the discharge
photosynthesis as well as respiration and, of this nutrient and salt-heavy water is severely limited
subsequently, plant growth, meaning a higher and must be dealt with in retention ponds, approved
amount of nutrients are required. The general rule sewage treatment operations or adequately sized
of thumb is that a 1 per cent increase in light levels municipal waste systems.
leads to a 1 per cent increase in growth.
• Crop stage In constructing a greenhouse, cost should be factored
in for storage and re-use of leachate as well as
Fruiting is a biologically expensive process rainwater capture and retention systems. Emphasis
requiring much water and a significant amount of should be placed on re-using leachate as much as
nutrients. When the plant is in a vegetative state, possible to reduce drawing on fresh water sources.
these needs are substantially less, and therefore, Treatment of the leachate should be considered to
water and nutrient use will correspond with these reduce disease and insect pressure and can be done
demands. through methods such as filtration, ultraviolet light
• Time of year treatment or pasteurization.
Quantity and quality of sunlight changes
throughout the year and the changing of the Supplemental lighting
seasons. Just as with “crop stage” above, these To compete on a global scale and obtain the highest
changes will dictate the proportion of nutrients yields possible for the longest periods, many growers
and water required by the plant. are now using supplemental lighting in their operation.
• Humidity The three most common forms of supplemental light:
As greenhouse humidity increases, a plant’s ability • fluorescent
to evapotranspirate or move water from inside the • high intensity discharge (HID)
leaf to outside the leaf decreases. This concept, • light emitting diode (LED) lamps
termed vapour pressure deficit, will affect the
speed at which water and nutrients are taken up Only the latter two are being used in a large scale
by the plant and, subsequently, the rate at which commercial context in the province. In Alberta, the
they are required. overwhelming majority of growers (71%)( (Laate,
Profile of the Greenhouse Industry in Alberta, 2015)
Each of the crops discussed in this factsheet will who use supplemental light use high pressure sodium
have different needs regarding the above variables (HPS), a form of HID lighting.
throughout the crop life cycle, and inattention to these
factors can detrimentally affect yield. HID lighting comes predominantly in two forms: HPS,
noted above, or metal halide (MH). HID lighting is often
For example, some cucumber varieties are bred to differentiated by colour (HPS emits a yellow/orange
perform better in low light conditions rather than in light, MH a blue-tinged light), and the colour ultimately
high light situations. Therefore, a prospective grower affects the end use.
would consider growing these low light varieties very
early in the year as opposed to over the summer as MH lights are often used for vegetative growth, thanks
yield will better in Alberta’s relatively darker winters to light produced in the blue/green (440 to 510 nm)
than in the very bright summers. range of the light spectrum. Alternatively, HPS is often
used for fruiting crops, given its ability to stimulate
Commercial growers typically use a drip-stake style flowering and fruit production with its output in the
system to deliver water to the plant when required. 600 to 700 nm range.
Good commercial growers will monitor water for
properties such as pH, E.C. and nutrient levels, not only Both types of light fixture use large volumes of power
before the water goes to the crop, but after it has gone and waste a substantial amount of that power in
the production of the desired light through heat
7
production. During the winter months, this heat Climate control
can be used to offset heat required from the boiler; Climate control and crop monitoring systems have
however, such heat production limits use during times eliminated much of the guesswork associated with
of the year when temperatures are more moderate. analyzing the many points of data generated in a
Furthermore, both MH and HPS bulbs are relatively greenhouse (water and nutrition for light levels, hours
short-lived, operating efficiently for approximately of sunlight and temperature); however, these systems
20,000 and 30,000 hours, respectively. come with their own set of challenges.
Growing in popularity because of its greater potential These systems have extremely high upfront costs
for electrical efficiency, decreased amount of heat and will often require substantial technical skills to
produced and longer lamp life is LED lighting. LED keep them running. Furthermore, they are primarily
fixtures can be placed substantially closer to the crop reporting systems, not decision-making systems.
without concern for burning the plants. In a number of Someone will still have to decide how best to adjust
operations, LEDs are actually placed inside the canopy electrical conductivity, pH, etc. to obtain the desired
to stimulate growth. outcome.
The LED light spectrum can be tailored and tweaked
to precisely what is required, which can reduce waste. Pollination
The relatively slim LED profile means that these Depending on the crop chosen, pollination may be
fixtures block less natural sunlight. required. Many varieties of long English cucumbers
and mini cucumbers (the most commonly greenhouse-
However, even given all these benefits, LED lights grown cucumbers) are parthenocarpic. This term
are still relatively unproven in the greenhouse means that pollination is not needed for the plants to
environment. Much work needs to be done as to how produce fruit.
these lights will affect pest pressure, plant productivity,
etc. Furthermore, given their relatively lower output of Tomatoes, peppers and eggplants, while all self-
light compared to HID units, more lamps are required pollinating, will benefit with higher yields from being
(on the order of 2 LED lamps to every 1 HID lamp) to pollinated. Pollination can be done by hand with an
ensure adequate amounts of light reach the crop. electric vibrator, with air blasts or the more common
method, by bumble bee. Bumblebee colonies are
For the above reasons, growers are encouraged to widely available and need to be maintained properly to
engage with their selected company early in their continue their viability and benefit. This maintenance
greenhouse development process to ensure they are information is available from the supplier and should
fully aware of the limitations and merits of such a be considered when making a decision on pollination
lighting system. method.

Carbon dioxide (CO2) Pest management

Carbon dioxide (CO2) is an essential component of Integrated Pest Management, or IPM, is common
plant life, and the practice of enriching the greenhouse practice in varying forms in greenhouses throughout
atmosphere with it is becoming increasingly common. Alberta. IPM is a broad-based approach of integrating
While most greenhouses are at an ambient CO2 level different methods of pest control to maintain pest
of 340 ppm, research has shown that increasing levels below what is considered the “economic
this level to 1,000 ppm can increase photosynthesis threshold” (the maximum amount of pest damage
by approximately 50 per cent. This increase in that can be tolerated before intervening with control
photosynthesis directly contributes to plant growth methods).
and also increases yields of marketable material as
well. The foundation of this crop production method is
a rigorous, consistent scouting program to ensure
Enrichment is typically accomplished through either that growers remain on top of problems and correct
the burning of natural gas, propane or kerosene or the them early. With very few chemicals registered for
use of compressed, purified gas from a supplier. Each pest control in greenhouses, growers must extremely
of these methods has advantages and disadvantages, vigilant of pests to mitigate the damage caused by
including increased cost, so growers who are them.
considering enriching their greenhouse with CO2 should
weigh all pros and cons before making a decision on its Because few chemicals are permitted in greenhouse
use. vegetable production, biological controls continue to

8
grow in popularity. Biological control methods use recorded through a rigorous audit and documentation
parasitic or predatory insects as well as beneficial fungi schedule.
and bacteria to consume, parasitize or overcome other
insects that may cause crop damage. These controls The market chosen to sell into will have a direct effect
are widely available from commercial producers, and on whether a producer requires some form of OFFS.
thanks to the products’ increasing popularity, have CanadaGAP is the program available to greenhouse
been the topic of much research and best practices vegetable operators and is operated by CanAgPlus,
work. a non-profit organization originally started by the
Canadian Horticulture Council. More on the program
Harvesting can be found on the website listed in the resource
section at the end of this factsheet.
Harvesting greenhouse crops is a labour intensive task
that, when the greenhouse is in full production, has to Regardless of the production method chosen, growers
be done almost daily. Frequent pickings ensure that are strongly encouraged to read and research as much
produce is picked at the optimal stage and that the information as possible on the production of their
potential risks of disease and insects are mitigated. crop. To reduce the cost of production and stay ahead
of market and technology trends, growers should place
Picked produce must be removed from the heat of the an emphasis on accessing high quality, relevant data
greenhouse as quickly as possible to extend its shelf and information. If possible, growers should consider
life. Produce should be stored in the correct conditions employing the services of a knowledgeable consultant,
until delivery or sale to ensure a consistent, quality if only for the first number of production cycles.
product.

Packaging requirements can vary depending on market

channel and consumer demand. Information on these Economic/finance basics
aspects can be found in the Canadian Food Inspection As in all facets of agriculture, it is not enough for a
Agency’s Food Labelling Tool (http://www.inspection. greenhouse grower to simply produce a good crop.
gc.ca/food/labelling/food-labelling-for-industry/en Growers must now not only produce a high quality
g/1383607266489/1383607344939) or in Alberta crop, but they must also spend time marketing that
Agriculture and Forestry’s Farm Direct Marketing: crop as well as ensuring they have a good grasp of the
Know the Regulations publication series (http:// finances within their business.
www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/
agdex13504). Accurate records are a must as these accounts will
  ultimately be used to determine price. The following
Table 6 lists the optimal post-harvest conditions by budgets in Tables 7 and 8 are provided for information
crop for greenhouse vegetables. purposes only and are of the three main greenhouse
commodity crops in Alberta. The costs to a producer
Table 6. Optimal post-harvest conditions of their own individual enterprise will be different
Relative Shelf life based on size, location, crops grown, machinery, labour
Temperature
Humidity (approx.) and market channel.
Crop (°C) % days
Cucumbers 7-9 >95 10-14 Data are based on the 2011 Alberta Agriculture
Tomatoes publication Economics of Production and Marketing of
(green, 13-16 90-95 ≤42
mature)
Greenhouse Crops in Alberta and are adjusted by the
Tomatoes farm input price index to reflect 2016 costs.
10 90-95 Limited
(ripe)
Peppers 10 90-95 8-14
Eggplant 10 90-95 ≤14
Lettuce 0 >95 ≤21
(Commercial Vegetable Production on the Prairies, 2014)

Food safety
There is an increasing emphasis on On-Farm Food
Safety (OFFS) systems to ensure a safe, reliable
product. These systems ensure that appropriate
handling and production techniques are followed and

9
Table 7. Capital investment requirement for production of various crops, 2016
Crop Tomatoes Cucumbers Peppers
$ $ $
Building (sq. m.) 9,043 11,374 3,682
($) 592,374 856,625 361,000
Land value ($) 23,689 22,309 11,420
Building, equipment and machinery ($) 606,895 490,735 172,505
Total investment ($) 1,222,958 1,369,669 544,925
Investment/sq. m ($) 135.24 120.42 148.00

Table 8. Production costs and returns for various crops, 2016

Tomatoes Cucumbers Peppers
Greenhouse
production area (sq. 8,637 11,374 3,682
m)
Total ($) $/Sq. m. Total ($) $/Sq. m. Total ($) $/Sq. m.
A. Gross revenue 1,002,379 116.06 1,311,791 115.33 410,294.00 111.43

Tomatoes Cucumbers Peppers

Variable costs Total ($) $/Sq. m. Total ($) $/Sq. m. Total ($) $/Sq. m.
Growing media,
63,118.20 7.31 154,937.84 13.62 47,603.32 12.93
seeds/cuttings
Fertilizer &
67,390.31 7.80 71,894.90 6.32 27,813.78 7.55
chemicals
Greenhouse
15,321.46 1.77 21,947.71 1.93 9,140.28 2.48
insurance
Trays, boxes, and
9,960.04 1.15 9,806.54 0.86 4,239.27 1.15
other packaging
Freight and/or
6,281.48 0.73 8,776.70 0.77 5,983.78 1.63
trucking costs
Auto fuel, insurance,
16,544.44 1.92 24,531.41 2.16 6,789.48 1.84
registration, repairs
Repairs - Building &
14,549.40 1.68 22,450.98 1.97 12,810.08 3.48
equipment
Utilities: natural gas 129,777.75 15.03 145,502.56 12.79 44,966.73 12.21
Utilities: electricity 39,080.25 4.52 160,472.33 14.11 61,340.65 16.66
Utilities: water 7,182.15 0.83 12,343.69 1.09 1,115.10 0.30
Utilities: phone 1,745.05 0.20 4,250.51 0.37 1,100.94 0.30
Custom work and
2,294.26 0.27 5,239.20 0.46 1,758.20 0.48
specialized labour
Marketing costs 160,897.21 18.63 178,791.10 15.72 42,609.80 11.57
Assoc. dues, prof
10,898.98 1.26 5,624.84 0.49 2,993.66 0.81
fees and promotion
Small tools,
supplies and misc. 9,709.38 1.12 24,870.27 2.19 11,167.52 3.03
expenses
Operating interest
1,006.29 0.12 2,066.40 0.18 918.28 0.25
paid
Labour
27,755.45 3.21 33,082.04 2.91 2,279.76 0.62
insurance/benefits
Hired labour 287,164.80 33.25 353,422.98 31.07 134,606.14 36.56
Unpaid labour 1,739.66 0.20 383.50 0.03 2,992.48 0.81
B. Total variable
872,386.58 101.01 1,240,407.48 109.06 422,229.25 114.67
costs

10
Table 8. Production costs and returns for various crops, 2016 continued.
Tomatoes Cucumbers Peppers
Tomatoes Cucumbers Peppers
Capital costs Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Capital costs Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Property/business
Capital costs Total ($) $/Sq.
Property/business 4,059.20 0.47m. Total ($)
10,805.26 $/Sq.
0.95m. Total ($)
595.19 $/Sq.
0.16m.
Capital
taxes costs
Property/business Total ($)
4,059.20 $/Sq.
0.47m. Total ($)
10,805.26 $/Sq.
0.95m. Total ($)
595.19 $/Sq.
0.16m.
taxes 4,059.20 0.47 10,805.26 0.95 595.19 0.16
Depreciation
Property/business
taxes 59,786.00 6.92 60,470.81 5.32 26,133.90 7.1
Depreciation 4,059.20
59,786.00 0.47
6.92 10,805.26
60,470.81 0.95
5.32 595.19
26,133.90 0.16
7.1
taxes
Paid capital Interest
Depreciation 14,093.00
59,786.00 1.63
6.92 33,000.63
60,470.81 2.9
5.32 10,794.00
26,133.90 2.93
7.1
Paid capital Interest 14,093.00 1.63 33,000.63 2.9 10,794.00 2.93
Depreciation
C. Total
Paid capital
capital Interest 59,786.00
14,093.00 6.92
1.63 60,470.81
33,000.63 5.32
2.9 26,133.90
10,794.00 7.1
2.93
C. Total capital 77,938.20 9.02 104,276.70 9.17 37,523.09 10.19
costs
Paid
C. capital
Total Interest
capital 77,938.20
14,093.00 9.02
1.63 104,276.70
33,000.63 9.17
2.9 37,523.09
10,794.00 10.19
2.93
costs 77,938.20 9.02 104,276.70 9.17 37,523.09 10.19
C. Total capital
costs 77,938.20 9.02 104,276.70 9.17 37,523.09 10.19
costs Tomatoes Cucumbers Peppers
Tomatoes Cucumbers Peppers
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
D. Total production Total ($) $/Sq. m. Total ($) $/Sq. m. Total ($) $/Sq. m.
D. Total production Total ($)
950,324.78 $/Sq. m.
110.03 Total ($)
1,344,684.18 $/Sq. m.
118.23 Total ($)
459,752.34 $/Sq. m.
124.86
costs
D. Total (B + C)
production 950,324.78 110.03 1,344,684.18 118.23 459,752.34 124.86
costs (B + C) 950,324.78 110.03 1,344,684.18 118.23 459,752.34 124.86
D. Total (B
costs production
+ C) 950,324.78 110.03 1,344,684.18 118.23 459,752.34 124.86
costs (B + C)
Tomatoes Cucumbers Peppers
Tomatoes Cucumbers Peppers
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Return over variable Total ($) $/Sq. m. Total ($) $/Sq. m. Total ($) $/Sq. m.
Return over variable
costs over variable
Return Total ($)
129,992.42 $/Sq.
15.05m. Total ($)
71,383.52 $/Sq.
6.27m. Total ($)
-11,935.25 $/Sq.
-3.24m.
costs 129,992.42 15.05 71,383.52 6.27 -11,935.25 -3.24
(A - B) over variable
Return
costs 129,992.42 15.05 71,383.52 6.27 -11,935.25 -3.24
(A - B)
costs
(A - B) 129,992.42 15.05 71,383.52 6.27 -11,935.25 -3.24
(A - B) Tomatoes Cucumbers Peppers
Tomatoes Cucumbers Peppers
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Total ($) $/Sq. m.
Tomatoes Total Cucumbers
($) $/Sq. m. Total ($)Peppers$/Sq. m.
Return to Total ($) $/Sq. m. Total ($) $/Sq. m. Total ($) $/Sq. m.
Return to
management*
Return to Total
52,054.22($) $/Sq.
6.03m. Total ($)
-32,893.18 $/Sq.
-2.90m. Total ($)
-49,458.34 $/Sq. m.
-13.43
management* 52,054.22 6.03 -32,893.18 -2.90 -49,458.34 -13.43
(A - D) to
Return
management* 52,054.22 6.03 -32,893.18 -2.90 -49,458.34 -13.43
(A - D)
management*
(A - D) to
*Returns management are the52,054.22
funds available after6.03
all operating costs,-32,893.18 -2.90
opportunity cost on investment -49,458.34
and operator labour -13.43
*Returns
and to management
depreciation arepaid.
have been the funds available after all operating costs, opportunity cost on investment and operator labour
(A - D)
*Returns to management
and depreciation arepaid.
have been the funds available after all operating costs, opportunity cost on investment and operator labour
and depreciation
*Returns have been
to management arepaid.
the funds available after all operating costs, opportunity cost on investment and operator labour
and depreciation have been paid.

Resources Revised by
Here are resources that provide more detail about the Robert Spencer – Commercial Horticulture Specialist
commercial greenhouse vegetable industry. Dean Dyck – Farm Business Management Specialist
Dustin Morton – former Commercial Horticulture
Alberta Greenhouse Growers Association Specialist
#200, 10331 - 178 Street Alberta Agriculture and Forestry
Edmonton, Alberta T5S 1R5
Website: agga.ca/

CanadaGAP More information, contact

Website: http://www.canadagap.ca/ Alberta Ag-Info Centre
Call toll free 310-FARM (3276)
Original information compiled by Website: agriculture.alberta.ca
Dennis Dey – Farm Management Consultant
Jim Calpas, Dr. M. Mirza, Betty Vladicka,
Nabi Chaudhary
Alberta Agriculture and Rural Development

11