Organic Greenhouse, Vancouver, BC Marchand 1

Jordan Marchand

AGR 1110

Tuesday, November 27, 2018

Large Scale Organic Greenhouses on Vancouver Island, BC

Organic Greenhouse, Vancouver, BC Marchand 2

Product

The proposed product is the expansion of farm production scale of organic vegetables on

Vancouver Island, with the use of a large-scale indoor greenhouse. The vegetables being focused

on are figs, lemon and limes, and olives. The produce is specifically chosen because of the fact

they are not native to Canada. Therefore Canada has to ship the products in, costing the economy

tariffs on imports. This results in higher prices for consumers and vegetables that are not as

desirable either being too ripe or not ripe enough.

To begin, the shelf life of figs is short. For example, figs become soft and less desirable

to eat, as well, there starts to be a growth of fungi on figs, moreover, their inability to transport

well. However with the production of figs locally on the island, there would be little to no

problems with their growth (Trivittayasil, ​et al. ​2014). Secondly, farm production scale of lemon

and limes on the island. Lastly, growing a farm production scale of olives. With research proving

global warming is becoming more of an issue and will continue to increase over the next

decades, Canada should and will support the growth of new plants. The goal is to supplement the

demand of the island to start with, then continue to grow to be shipped all around Canada and

outside of the country. Canada is not known for lemons, limes, figs, and olives, thus with this

large-scale greenhouse, they can be grown locally in Western Canada, avoiding the need for

imports.
Organic Greenhouse, Vancouver, BC Marchand 3

Figure 1: ​Fig production across the globe.

http://chartsbin.com/view/40542

Figure 1 demonstrates how there is no production of figs in Canada, and limited amounts

on the continent. Thus, Canada relies on imports from other countries around the world. Being

grown on Vancouver Island, the greenhouse can supplement the rest of the country and eliminate

the need to import.

Figure 2: ​Olive production across the globe.

https://www.bloomberg.com/features/2016-california-olive-oil/
Organic Greenhouse, Vancouver, BC Marchand 4

Figure 2 demonstrates how there is no production of olives in Canada as well. A large

portion comes from California, U.S., and Europe producing the highest amount, over 250k.

Environmental Sustainability

Canada is known for its harsh winter climates, therefore relying and dependent on

imports during the winter months. Local and domestic food production lowers the cost for

consumers as well as generating local employment. Greenhouses have the ability to protect the

agriculture indoors from outsides weather conditions such as rain, snow, and wind, while also

monitoring temperature and lighting (Papadopoulos, ​et al. ​2000). Furthermore, the research

indicates, because of winter not having as much light time during the days as summertime, plants

do not have as long of growing time. In addition, the research also states artificial lighting to

supplement natural light is used in greenhouses. Studies have proven using artificial lighting in

greenhouses during the winter time can greatly improve the growth and yield of major vegetable

crops (Papadopoulos, ​et al. ​2000). Vancouver Island, BC would be a specifically good spot for

greenhouse production because of the fact that its food is imported, therefore if supply were cut

off there were would a shortage of food.

Not only is winter time a major factor in the advantages of greenhouses, but the

environmental footprint. Like mentioned before, there would be no need for imports of certain

vegetables, consequently less transportation and greenhouse gases. Domestic goods would be

transported around Canada when shipping, however, there would be a decrease in longer
Organic Greenhouse, Vancouver, BC Marchand 5

transportation from other countries. Fewer kilometers, fewer fossil fuels and more affordable

prices would result in domestic production.

In addition, composting is an important part of not wasting food and reusing resources.

CH​4​, N​2​0, and NH​3 ​contribute to environmental pollution during the decomposition cycle (Saer,

et al. 2​ 013). Composting can pose a threat to the environment if not done properly. The article

also states that following municipal solid waste, food is the second most wasted thing. A

previous study by the article mentions in 2013 data was collected to determine only 3% of 30

million tonnes of food waste was recycled. Something that can be so easily avoided with the use

of a compost can help resolve this issue. Composting is beneficial for both municipalities to cut

down in solid waste and for individuals to grow their own gardens. Benefited from a compost are

soil quality and structure, reducing the need for fertilizers and pesticides, and intensifying carbon

storage capacity (Saer, ​et al. ​2013). Soil can be reused in the greenhouse, saving money and

leaving a positive ecological footprint.

Consumer

In today’s society, there is a great increase in the younger generations appreciation for

healthy and cruelty-free diets. The number of vegetarians and vegans has grown substantially.

According to a recent study by Weisskircher (2016), in the past decade, reported is an increase of

360% of people changed to a vegan diet in the UK. Moreover, the study notes a strategy many

food industry companies are taking is the approach to cruelty-free practices and an increase in

plant productivity. Furthermore, organic foods have made an impact on the food industry

(Weisskircher, 2016). With consumers discovering the artificial chemicals put into the foods
Organic Greenhouse, Vancouver, BC Marchand 6

consumed every day it is an obstacle many people are avoiding the more educated they get.

Although many people may still choose the non-organic choice over organic because of cost, the

higher price on produce can be viewed by the consumer as the cost of investment in human

health (Yiridoe, ​et al. 2​ 005). Consequently, the producer is getting a higher income although

spending more initially to start the organic greenhouse. This will also influence people living on

the island to buy locally.

Nutritional Information

A study by Forman (2012), states that there are many controversial debates whether it is

worth buying organic produce over conventionally grown produce. It also mentions organic

fruits and vegetables include the advantages of not being grown with the use of synthetic

chemicals, hormones, antibiotic agents, genetic engineering, and irradiation. Although there are

different studies concluding different results, it is illustrated that organic produce has an increase

in nutritional value, and a decrease in nitrate content (Forman, ​et al. ​2012). A study by

Dettmann, (2009) states that there was an increase of 34% of retail sales in 2006. The organic

industry is currently the fastest growing food sector in the United States (Dettmann, ​et al. ​2009).

As consumers are becoming more educated about how their food is grown and what it is grown

with, they are making changes with their diets. Making choices for optimum health and diet.

This includes consumption of meat as well. Vegan and vegetarianism, as well as organic diets, is

a huge topic, especially with younger people. With more education and with transparency with

food production, people are making better, healthier food choices. Thus, in the future, that is

what is going to be in demand.

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Table 1: ​Number of greenhouse vegetable operations by province. Canada has the

most amount of greenhouses in Canada and the Atlantic provinces the least.

2012 2013 2014 2015 2016

Atlantic 50 50 45 40 38
Provinces (2)

Quebec 240 235 195 242 247

Ontario 235 230 230 350 355

Prairie 85 85 80 106 113

Provinces (2)

British 135 135 130 125 125

Columbia

Canada 745 735 680 863 878

http://www.agr.gc.ca/eng/industry-markets-and-trade/canadian-agri-food-sector-intelligence/horticulture/horticulture
-sector-reports/statistical-overview-of-the-canadian-greenhouse-vegetable-industry-2016/?id=1511888129369#a1.1

As demonstrated in Table 1, in 2016 there was a total of 878 greenhouse vegetable

operations in Canada. British Columbia for example, has 125 of those greenhouses. In

comparison to Quebec and Ontario, British Columbia has a lot less greenhouse vegetable

operations in Canada. Thus, a new large-scale greenhouse would benefit the province, along with

the rest of the country and potentially outside of Canada with exports. British Columbia has the

ideal climate and perhaps with a more focused approach to composting and greenhouse

production, the domestic trade industry could flourish.

Benefits to Canada

Lemons, limes, figs, and olives are not native to Canada, therefore if they were to be

grown on Vancouver Island, there would be a decrease in imports. In addition to an increase in

Organic Greenhouse, Vancouver, BC Marchand 8

local jobs and businesses. The Canadian greenhouse industry has been increasing over the past

couple of decades (Ahamed, ​et al. ​2018). Moreover, the article states that the export industry has

increased. Because of the close location Vancouver Island is to Northern Canada, this could also

benefit the disadvantaged rural communities. Shipment would be cheap because of how close it

is, which is beneficial to the north because of how much they are currently paying for food in

their grocery stores. In addition, if the industry were to expand, another greenhouse could be

built closer, or in the North. This overall would have a hugely valuable and profitable gain.

Unlike the rest of Canada, the North is unable to grow many crops at any time of year due to its

unfavourable and undesirable weather conditions for crops throughout the year. A greenhouse

can protect crops from harsh weather. Although to expand, solar panels are something that would

have to be invested into. Lack of sunlight during the winter months would certainly be a factor,

however, the spring and summer months receive an abundant amount of sunlight. The

greenhouse would have to be heated all year round, therefore with solar panels, free energy is

being produced. Solar panels are an expensive investment initially but are beneficial in the long

run. Another perspective is the health benefits. Buying organic produce is rewarding in overall

health. As an economy, if everyone were to change their diets to vegan/vegetarian and organic

diets, there could potentially be an increase in the population's health. There is not enough

research to back this statement up, but with no use of hormones and artificial pesticides, it is

clear it would be advantageous. Optimal health can be obtained by a diet of fresh vegetables and

fruits and non-GMO foods.

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Vancouver is similar to Toronto in the aspect it attracts a lot of tourists. If there is an

organic greenhouse with fresh produce in a popular location, this could attract not only locals but

tourists to shop for fresh foods.

Costs

In order to start this project, costs are an essential factor. A greenhouse alone to make

varies depending on size. Greenhouses are $25.00 per square foot. The idea of a large scale

organic greenhouse would be approximately 500 to 1,000 square feet. Therefore, the cost to

build a greenhouse on the island would be an estimate of $5,000 to $25,000. Alibaba.com is a

company that can be used for purchasing a greenhouse and estimating prices.

Because of Canada’s cold temperatures in the winter time, heating the greenhouse is a

major factor to consider. The heating alone is 10-35% of production cost (Ahamed, ​et al. 2​ 018).

The article also states that heating the greenhouse depends on what is being produced, as

different vegetables give off different levels of CO​2​, need different levels of light, etc. Besides

the costs of the energy, there is production, materials used for packaging, marketing, and

advertising, etc. One lemon is approximately $1.00, a lime is $0.45, a fig is $6.50 per pound and

olives are at least $5.00.

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Table 2: ​Comparison of Organic versus Non-Organic prices. Organic costs more,

however, has advantages.

Organic Non-Organic

Lemons $6.00/2lb $1.00ea

Limes $5.00/lb $0.45ea

Figs >$10.00 $6.50/lb

Olives >$10.00 >$5.00

Demonstrated in Table 2 is the cost difference between non-organic and organic is clear,

non-organic is cheaper, however, organic has health benefits. The price difference is not

extremely significant, making organic options still affordable as well as beneficial. Those

consumers that wish to buy organic produce face the obstacle of spending more money on

groceries. However, as the industry grows and more items are being purchased, prices can

decrease as productivity increases.

Another cost is labour. There is the benefit of more jobs, which would positively affect

the community by employing many locals residents in addition to the ripple effect of new

business opportunities for others. Because of Vancouver's large population, many people are left

jobless. The industry would have to hire workers for building the greenhouse, maintenance,

farmers, marketing, etc. The minimum wage in British Columbia is currently $11.35 with an

expected increase over the next year. Depending on the position, the wage will vary.

Transportation is also a large component. Prices of produce increases when fuel and length of

travel increases. An article summarizing how transportation affects prices of produce by Volpe

(2013) indicated how prices of fuel are significant when determining price differences between
Organic Greenhouse, Vancouver, BC Marchand 11

domestic wholesale and farm-level produce. Moreover, transportation is a large expense.

Whether products are being shipped to Vancouver, or produce is being shipped out, there are

prices to consider.

If solar panels were to be used, there would be a cost in the purchase of them as well. A 5

kW system would cost approximately $25,000. They are an expensive investment especially in

the beginning year or so, however, over more years they would decrease energy bills.

Competitive Products

Although there are no greenhouses in Canada today that are organic containing lemons,

limes, figs, and olives, there are organic greenhouses. With this being said, there is competition

in the sales industry. In almost every grocery store in Canada, people are able to find organic

produce, so the question is, why would consumers buy this product? Advertising in media can

help promote the benefits of organic vegetables as well as local farming. Labeling is also a

consumer grabber. People are more likely to buy something based on its appearance. Therefore,

packaging and overall appearance are essential before hitting the market. Because of lemons and

limes most of the time being sold singularly, the stickers used as a consumer grabber. There is

also competition from businesses that are already selling organic lemons, limes, figs, and olives.

These products exist, which could already be many consumers first choice when in the grocery

store. Consequently, advertising can overcome consumers sticking to what they are comfortable

with and trying the new, fresh thing.

Organic Greenhouse, Vancouver, BC Marchand 12

Figure 3: ​Flowchart for Post-harvest handling operations of a lemon.

​https://www.slideshare.net/AnandvYadav/z-lemon-final

Figure 3 demonstrates the labour put into the production of a lemon. Post-harvesting

there is washing and cleaning of the lemon and waxing for consumer appeal. Next is drying,

sorting, sizing, packing and degreening, and then storage. There are many steps put into a lemon,

making it from harvesting to the market. This includes time and money.
Organic Greenhouse, Vancouver, BC Marchand 13

Figure 4: ​Lemon and limes production.

https://www.thebusinessyear.com/mexico-2015/above-the-lime/focus

To conclude this proposal, a large scale organic greenhouse in Vancouver, BC would be

advantageous to Canada and its economy. Consequently, with the production of figs, lemon and

limes, and olives with a large-scale greenhouse, Canadian farmers would be benefited, there

would be a local supply of produce that is not usually produced in Canada, in addition, health

benefits. As stated earlier, with an increase in vegan and vegetarian diets as well, this is an
Organic Greenhouse, Vancouver, BC Marchand 14

intelligent business to invest in for the future. The overall goal of this product is to supplement

the demand of Vancouver Island to start with, then continue to grow to be shipped all around

Canada and outside of the country. A high cost will initially be needed to purchase many of the

resources needed, but because of organic produce, money will be gained back quickly.
Organic Greenhouse, Vancouver, BC Marchand 15

References

Ahamed, M. S., Guo, H., Taylor, L., & Tanino, K. (2018). Heating demand and economic

feasibility analysis for year-round vegetable production in Canadian Prairie's

greenhouses.​ Information Processing in Agriculture.

Dettmann, R. L., & Dimitri, C. (2009). Who's buying organic vegetables? Demographic

characteristics of US consumers. Journal of Food Products Marketing, 16(1), 79-91.

Forman, J., & Silverstein, J. (2012). Organic foods: health and environmental advantages and

disadvantages. Pediatrics, peds-2012.

Horst, T. (1972). The industrial composition of US exports and subsidiary sales to the Canadian

market. The American Economic Review, 62(1/2), 37-45.

Papadopoulos, A. P., Demers, D. A., & Theriault, J. (2000, November). The Canadian

greenhouse vegetable industry with special emphasis on artificial lighting. In ​IV

International ISHS Symposium on Artificial Lighting 580​ (pp. 29-33).

Saer, A., Lansing, S., Davitt, N. H., & Graves, R. E. (2013). Life cycle assessment of a food

waste composting system: environmental impact hotspots. Journal of Cleaner Production,

52, 234-244.
Organic Greenhouse, Vancouver, BC Marchand 16

Trivittayasil, V., Tanaka, F., Hamanaka, D., & Uchino, T. (2014). Prediction of surface

temperature of figs during infrared heating and its effect on the quality. Biosystems

engineering, 122, 16-22.

Volpe, R., Roeger, E., & Leibtag, E. (2013). How transportation costs affect fresh fruit and

vegetable prices (No. ERR-160). United States Department of Agriculture, Economic

Research Service.

Weisskircher, M. (2016). World Animal Day: tracking the animal rights movement’s growing

presence in European politics. LSE European Politics and Policy (EUROPP) Blog.

Yiridoe, E. K., Bonti-Ankomah, S., & Martin, R. C. (2005). Comparison of consumer

perceptions and preference toward organic versus conventionally produced foods: A

review and update of the literature. Renewable Agriculture and Food Systems, 20(4),

193-205.