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Report on glasshouse

technology in Poland
with focus
on energy deficiency
Table of
contents

Introduction 3

2023 market situation 4

Sales of vegetables; retail structure 9

Technologies 11

Investments 14

The future according to the Polish glasshouse owner 15

SWOT analysis of the Polish glasshouse


zoomed on future dynamics, energy transformation and investments 16

Conclusion 17
I.

Introduction

This report focuses on the analysis, structure and potential of glasshouses and greenhouses
industry in Poland. This type of agricultural production plays a significant role
in the year-round production and supply of vegetables. This report presents the current
situation, trends, future growth, and development opportunities.

3
II.

2023 market situation

1. Macroeconomic data and forecasts


Population – 37 million people plus in the strong again. The Polish Ministry of Finance
last year, due to the war, an additional expects GDP growth in Poland in 2023 at
2 million refugees from Ukraine found a the level of 0.3%. According to the fund’s
home. forecasts, economic growth is expected
to accelerate to 2.4% in 2024 and 3.7
Poland is an economically stable country,
per cent in 2025. At the same time, the
although it has been slowing down since
Ministry forecasts a decrease in inflation
the outbreak of war in Ukraine with
in Poland to 7.2% at the end of 2023.
inflation eating away at a nominal wage
Inflation is expected to fall to 5% at the end
growth, thus inhibiting consumption.
of 2024 and to 3.6% at the end of 2025.
However, the economy appears to be

growth

4
2023 market situation

2. Protected cultivation - area and harvesting


According to IERiGŻ (The Institute of species referred to in the statistical
of Agriculture and Food Economics), statements of IERiGŻ as “other” vegetables
vegetables in glasshouses and greenhouses – including peppers, eggplants, radish
were grown in 2022 on the area of 5220 and lettuce – was cultivated last year on
ha. Tomatoes, grown on the area of the area of 2500 ha (IERiGŻ Fruit and
1750 ha, had the largest share. The area Vegetable Market). “Other” are greenhouse
of cucumbers was 970 ha. The group crops.

Harvests protected 2022 (thousand tons), according to the Central Statistical Office

Total tomato cucumber Other

1,457.6 615.7 327.7 514.2

3. Greenhouses vs. glasshouses


The above data includes glasshouses and greenhouses

Greenhouses – polytunnels
There is no reliable data on the size of stronger, traditional regions – near Radom
this market due to simple, easy to remove with pepper and cucumbers, Sandomierz
constructions. Is known that it is declining and Kalisz with cucumbers and tomatoes.
every year. An average grower is small Tunnels are often not heated, not advanced,
with less than 1 ha. Exceptions constitue simply equipped, for short cultivation cycle.

Photo: different types of greenhouses

5
2023 market situation

Glasshouses
Glasshouses represent professional, high Currently, it can be assumed that 50% of
tech vegetable production. The market glasshouses are companies above 10 ha
size is well recorded as the sector is stable, and the remaining 50% lower.
consisting of large companies and focuses
There are about 20 of the largest
on this sector.
glasshouse companies, representing half of
The glasshouse market in Poland has been the market. These are almost only family
stable for many years. The planted area in businesses. The exeption is the largest
2023 is ~1300 ha and within 100-200 ha company in Poland, which is a typical
there are small fragmentated farms. business venture.

In the Polish glasshouse industry Glasshouse companies in Poland are


consolidation trends are noticeable, the same rather not associated and act as individual
throughout Europe – the number of growers enterprises. There are several growers’
is decreasing while their area is increasing. groups but in practice the only to run
common sales policy.

Photo: Glasshouses

After the energy crisis in 2021/22, energy-demanding soft fruits (strawberries,


a decrease in vegetable production raspberries). This concerns older
in glasshouses was recorded by about constructions, and it is a way of looking for
50 ha. This acreage either closed other solutions for less efficient facilities.
permanently or changed its profile to less

6
2023 market situation

4. Crops and fruit types


In terms of crops tomatoes prevail. The second crop is cucumber.

Greenhouses Glasshouses
In greenhouses, however, cucumbers In glasshouses tomatoes predominate,
dominate, and their popularity is increasing. cultivated in year-round cycle. 70% of
It is mainly a PSP type (short, spine) for tomato type is pink beef with an upcoming
fresh consumption and for processing trend over the last 10 years. Red varieties
– pickling or self-fermentation, planted have 20% of market share and are declining.
1-3 times/season. Greenhouse tomatoes The remaining ones do not constitute a
are for a short cycle, not grafted, for 6-8 large part due to the frequent negative
trusses, beef varieties – pink and red ones. correlation of production costs and the
The third crop is pepper, which, in Poland, price achieved.
is produced only in greenhouses (partly
The cucumber is grown by smaller growers
heated or not heated), planted late with
or is an additional crop for those who
harvests in the months of summer and early
need a larger range of products. The most
autumn.
common type is medium-length smooth,
but more and more often a short spine type
is grown. Planting occurs in 2-3 cycles. The
long Dutch type is not cultivated in Poland.

The timing of planting for tomatoes and


cucumbers is similar to BX.

LIT production (winter, with artificial


light) covers about 100 ha; 99% tomato
pink beefs for local retailers. The leading
company is Citronex (78 ha).

7
2023 market situation

5. Geographical characteristic
The area of Poland is almost 8 times larger On the map below, large growers >20 ha
than NL. With a large population, this gives and more are marked in red. The map also
Polish growers great opportunities. indicates concentrations of smaller growers
with an estimated total number of hectares.
The regions of the country differ slightly
The largest concentration regions are close
in climatic conditions. Light is the most
to Warsaw and Kalisz.
important factor for cultivation, and
western areas have a higher average light
than eastern areas.

Glasshouse growers are dispersed


throughout the country.

There are no clear discrepancies in the level


of access to energy or water. However,
more densely populated areas, the vicinity
of large cities, have problems with workers
in greenhouses.

Greenhouses/polytunnels are even more


dispersed with the several regions indicated.
The largest are in the central part and the
estimated size is 100 ha each.

8
III.

Sales of vegetables; retail structure

Retailers, the biggest ones of which are Asia – China, Korea, Japan. More than 95%
Biedronka, Lidl, Dino play the main role of Polish consumers prefer this type. The
in the supply chain. Large growers are reason is the sweetish taste and softer skin
direct suppliers, smaller ones deliver to compared to the red ones.
wholesalers and traders that supply to
The cucumber in Poland is sold very fresh
chains. Another distribution channels are
because the consumer is unlikely to buy
local wholesale markets, purchase places for
foil-wrapped vegetables. Short, spine type
groceries, HoReCa, etc.
is for fresh consumption, and processing –
Vegetable consumption and awareness of pickling or self-fermentative.
healthy eating is like in other EU countries.
Big companies create their own brands
The tomato, most of which is the pink around the products with special labeling,
type, is a product for the domestic market. packaging, and positioning which guarantees
Only a small number is exported, while red them a stronger place on the market.
varieties are more suitable and are often
Although the Polish consumer is still price
shipped to southern countries in summer,
driven, it is important that they also prefer
when prices fall. The popularity of the pink
the Polish products, such as the unique
beef varieties deserves attention and is
pink tomato, which gives more protection
completely unique. Outside Poland, such
to the local production.
varieties are cultivated on a larger scale in

9
Sales of vegetables; retail structure

Import and export 2021-22

IMPORT

Vegetable Value (k EUR) Volume (T)

2021 2022 2021 2022


Fresh tomato import 2022 Cucumber import 2022
Tomatoes (fresh) 269176 312852 173640 180796

Cucumber (fresh and processed) 79432 97198 73145 79435

5%
Freshtomato
Fresh tomatoimport
import2022
2022 18% Cucumber
Cucumberimport
import2022
2022
12% 24%
36%
4%
15% 5% 5%
5%
12% 18%
12% 24%
24%
18% Spain
5% 36% Germany
Spain 4%
4%
36%
15%
15% 24% Netherlands 8% 5%
5% Greece
Spain
20% 16% 5%
Spain
Romania
Spain
Spain
Marocco 8% 5% Germany
Germany
24%
24% Netherlands 8%
8% Greece
20%
20%
Netherlands Russia
Greece
8% 16% Romania
Germany
Marocco
Marocco 8% 16% Romania
Netherlands
Russia
Russia
Germany
Germany
Turkiye
Turkiye
Netherlands
Netherlands
Bulgaria
Turkiye Bulgaria
Bulgaria
others
others
others others
others
others

EXPORT

Vegetable Value (k EUR) Volume (T)

2021 2022 2021 2022

Tomatoes (fresh) 75431 99239 67427 82464


Fresh tomato export 2022 Cucumber export 2022
Cucumber (fresh and processed) 188809 23202 20080 19554

(European Fund for the Development of Polish Villages, *GUS)

22% Freshtomato
Fresh tomatoexport
export2022
2022 Cucumber export
Cucumber
25% export 2022
2022
27%
34%

5%
5%
22%
22% 27% Ukraine 25%
27% 25%
34%
Germany 34%
5% 16% 20%
5% UK
5% 9%
7% 5% Ukraine
Ukraine
5% France 12%
14% 5%
5% 16%
Germany
Germany 20% Lithuania
16% UK 20%
7% Latvia
UK 9%
9% Latvia
7% France
14% France 12% Lithuania
14% Czech
Latvia Rep.
Latvia
12%
CzechLithuania
Rep.
Latvia
Czech Rep. Latvia
Italy
Czech Rep.
Italy
Czech Rep.
Germany
Czech Rep.
Italy Germany
others
others
others
Germany
others
others
others

10
IV.

Technologies

1. Types of buildings
Greenhouses represent many different Hoogendoorn. Many of them were built
types, sizes and solutions of a local origin. between 2004 and 2013 when the market
Usually, these are simple constructions, boomed. These older houses, 4-6 m high
sometimes old and low and small. The with a lower number of compartments, are
equipment is often only drip irrigation, still in the Kalisz region and the south of
connected to fertilizer tanks and heating Poland. The new ones, up to 10 years old,
boiler. Substrates used are peat, coco peat are higher (7m), with compartments on
slabs or reused rockwool from glasshouses. several hectares. It can be assumed that
40% of glasshouses are new, not older than
Glasshouse production is modern,
10 years.
Venlo type constructions, 100% soilless
technology, equipped by global technology There are no geographical differences in
providers, such as Priva, Sercom, advancement among growers.

2. Types of glass
The glass is tempered, float type. 20% transmitted inside, which is disadvantage
buildings have diffused glass, but this glass during dark Polish winters.
is reducing some amount of light to be

11
Te c h n o l o g i e s

3. Production means, irrigation, and equipment


As the market is mature, there are many suppliers on the Polish market, mainly Dutch.
The names of the major ones are mentioned in the following part. Not all are listed.

• Substrate • Digital plant steering tools


Cultivation in glasshouses is soilless, on Advanced sensors to monitor plant growth
soilless substrates and mineral wool parameters, such as: speed, fruit load,
(Grodan, Cultilene) plays the main role with consumption, are installed at high tech
others constituting only 5%. growers. Such growing tools measure 250-
300ha of protected vegetables production
• Irrigation
and help growers to take the right crop
Drip irrigation with computer steering is decisions. Technology providers are:
in common use. The reuse of the nutrient Gremon Systems, Priva, Sors.
solution (recirculation), popular in many
countries, is working in a very small number • Pest control
of growers as it is not mandatory yet. It Bio control only, based on natural enemies
may be due to the high prices of fertilizers, and bumble bees for pollination (Koppert,
recirculation will be used more often in the Biobest, Brinkman); chemicals are used
coming years. rarely and only when necessary, limited to a
low number allowed. Chemicals negatively
• Water
impact plant growth and, therefore, retailers
Water is from deep boreholes or, rarely, ground and food chains carefully examine the fruit
level water. Thanks to own water intakes, there supplied against residues.
are no strict limitations on its use.
• Harvest and sorting
• Fertilizers
Manual harvest. Sorting machines become
Single nutrient fertilizers are used to prepare less popular with an increase of popularity
irrigation solution in a majority of cases. of pink tomatoes, relatively soft and harvest
Single elements are more flexible and with calyx harvested directly into boxes in
cheaper components than ready mixed ones. the glasshouse. Other types of tomatoes
• CO2 and cucumbers are mechanically sorted.
The pure gas from tanks is dosed, supplied Packaging depends on the requirements of
by gas providers like Linde, Messer, Air a retailer. Tomato – carton boxes, flow pack
Liquide. Extra CO2 is commonly used and and various types of trays. Cucumber to
automatically fed. boxes, not wrapped.
• Climate steering • Light
Climate computers are in almost all LIT growers (winter production with lamps)
glasshouses with additional sensors to measure and young plant risers are equipped with
drain, moisture of substrate, steer temperature, gas congenators and very few is still
vents, RH, screens, CO2, fans, fog. dependent of power station. Light sources
are LED (85%) or sodium lamps (declining).
• Shadowing
Suppliers: Signify, Luminance.
Single or double curtains are the norm, in
LIT production blackout curtains are often • Robotics
required by local environmental reasons. These would be probably the most sought-
after tools, but not present on the market
yet. Induction carts from Bogaerts working
at modern houses constitute the first step.

12
Te c h n o l o g i e s

4. Heating and electricity


Polish glasshouses need to be heated installations. Agriculture and the agri-
during the entire production cycle. food industry have the greatest potential
amounting to be approximately 120-150
Heating is the highest cost of glasshouse
million tons of useful biogas waste. 98% of
production (30-35%). 95% of the facilities
biogas mass is still left to be used (Biomass
are heated by a small fraction of coal. The
„Biogas in Poland” warehouse). The
common use of coal is the result of the
investment in biogas plants is financed from
state’s economy, which supports fossil fuels
the project supporting the implementation
and the lack of a solid long-term energy
of the European Green Deal strategy.
policy. Gas heating is not popular due to
high costs, but it is often a local community Another energy solution based on
environmental requirement. Now, changes organic fuels is biomass boilers. They
from coal to other sources are not are successfully used in several farms.
noticeable. Investments related to heating The calorific value of biomass burned is
are rather directed towards additional, not sufficient for full heating and has a
supporting methods. secondary role.

There are glasshouses connected to a European funds support recycling


power station/public heating station and processes, aligned with the long-term
heating prices are slightly lower for them, reaching implications, causing that, in the
but with the risk of dependency on an next few decades, heat generation for
external supplier. heating systems based on the combustion
of coal, oil and natural gas will disappear in
20% of glasshouses have a buffer tank
favor of the use of renewable sources, such
installed.
as wind, solar or biogas.
Growers are increasingly using
Investment in photovoltaic panels is also
cogeneration. In Poland, unlike in NL the
supported by the state and European
energy generated is in practice for own,
subsidies and can complement the needs of
internal use, not to be taken over by power
the farm.
stations.
Considering limitations of the existing
A few percent of the greenhouse area
Polish energy network and regulations
use heat from biogas plants. Investing in
mentioned, the problem excess energy may
biogas plants is necessary to meet the EU’s
constitute a problem as surplus buy-back
2030 targets whereby at least 60% of the
systems do not work as well as in other
municipal waste produced annually by all
countries. Selling is not clear and not easy.
EU countries and reducing non-recyclable
The solution may be energy storage which
waste by 50%. The 2030 scenario,
is also subsidized.
including new investments in electricity
production foresee biogas to supply 2% of Although Poland is a large country
energy. At the end of last year, there were with various local resources, there is
378 biogas installations operating in Poland no dependency between the area of
with a total capacity of 271.1 MW. Poland Poland and energy source or preferences
has a sufficient reservoir of substrates to concerning the supplier.
ensure the economic existence of such

13
V.

Investments

Glasshouse horticulture is becoming more the total costs and are second after heating.
and more capital-intensive due to the need Lack of people to work is currently the first
of technical advancement. limiting factor in the industry.

The 2022 energy crisis has shown that the Most of the employees in glasshouses are
biggest limiting factor is energy. foreigners from the East, Asian countries, or
Latin America. The war in Ukraine has even
The recipe for combating energy problems
increased the problem with workers.
is to improve energy efficiency, i.e., all
actions and solutions that will serve to In Poland, like in in other countries,
reduce the amount of energy consumed in robotization is the future. Growers
relation to the effect obtained. would gladly invest in harvesting or plant
maintenance robots if they were available.
Projects involving the construction of
As yet, there are no such commercial
glasshouses with facilities can be financed
devices yet. Transport, sorting, packaging,
by banks. For several years, a slowdown in
climate control and fertigation are
investment in expansion has been noticed,
automatically steered, but manual work is
which is caused by the increase in steel and
still a must.
other building costs and lower availability of
external financing. It is also often a problem Polish growers follow news, ideas, and
of the lack of willingness to continue by the improvements. The Netherlands is the
young generation. leader in technology, genetics, varieties,
and know-how. Many global providers
Over the recent years fewer than ten
and industry leaders are present on the
growers have decided to enlarge the area.
market. Consulting companies are also
Since the pandemic, Polish companies have active, helping to apply the best practices
been most troubled by the uncertainty of the latest technology. Polish growers are
of the economic situation. The common always present in large numbers at fairs and
shortage of workers, with rising labor costs, conferences in BX, e.g., GreenTech, Global
were ranked second among the factors Tomato Congress, Fruitlogistica in Berlin,
that negatively affected the functioning Fruit Atraction in Madrid. They are keen
of enterprises. Unemployment in Poland to visit demo places and research centers
has a downward trend, and in May 2023 it to keep up to date, they are open for any
amounted to only 5.1%. For a glasshouse novelties in products, ideas, and solutions.
owner, the entire labor costs are 21% of

14
VI.

The future according


to the Polish glasshouse owner

Protected vegetable is part of food diversifying their assets. Family businesses


production. Despite obstacles and various are taken over by the next generations.
difficulties, people must eat.
The global trend is noticeable – the big
Until recently, there have been only typical companies are getting bigger by new
growers on the market, now there are big investments or acquiring smaller ones.
Polish companies which play a large role
Large growers consider investments
in the production and trade of fruit and
aimed at increasing the acreage or further
vegetables on the local or global scale.
modernization. Polish growers, except
Large growers are well prepared for market for Citronex, do not consider expansion
dynamics challenges. They have a stable beyond borders. Perhaps it is a time
situation with a stronger market position. of temporary stagnation on the market,
Companies with an established position verification of strength and quality.
on the market are expanding, sometimes

ToBRFV (Tomato Brown Rugose Fruit Virus)

ToBRFV is the most dangerous disease of eliminating companies. The task is to find
tomato today. In Poland, the first infection methods against it – hygiene, vaccines, new
was reported in 2021. So far, the virus has resistant varieties. 99% of growers have
been detected in several places and it has installed disinfectant stations and entrance
led 2 growers to change the crop. This mats. Disposable clothing, gloves become
new disease is the biggest treat, dangerous a standard. ToBRFV is a new, top priority
for the production economy, directly challenge for growers and suppliers.

15
VII.

SWOT analysis of the Polish glasshouse


zoomed on future dynamics, energy transformation
and investments
Strengths: Weaknesses:

• Modern technologies in a majority of companies • Coal dependency


• Strong market position of large growers • Shortage of employees
• Easy to invest, adopt and transform • Limited access to reusable raw materials and
• Ability to rapidly implement new solutions biomass
• Market knowledge • Limitation of land for photovoltaics and windmills
• Well-trained and experienced management • Dependence on energy suppliers
• Access and openness to news and best practices • Small capacity of existing energy net to resale
• Year-round production; reliable and stabile suppliers surplus; low motivation to invest in green energy
• Labor costs still lower than in many EU countries • Still small caloric efficiency of new, modern
• High quality products to offer methods
• Healthy foods thanks to use of biological control • No partnership between growers, no strong
• Product marketing awareness; brands and growers’ group
positioning/specialization (by type of varieties, type • No long-term state policy for the industry;
of consumer, etc.) glasshouse production is marginal compared to
• Relatively cheap and available land orchards or agricultural production; no specific
state support
• Very unstable income and costs
• Increasing number of certificates and procedures;
bureaucracy
• Lack of synergy between local authorities or state
organizations
• Glasshouse products are still perceived as “artificial”
• Lower light conditions versus BX

Opportunities: Threats:

• The size of the market and the country still creates • Unstable situation in Eastern Europe
investment opportunities • Strong competition from Turkey, Morocco and NL
• Space to develop energy efficiency with new • Lower yield performance vs. NL
technologies • New diseases (ToBRFV, CGMMV)
• A lot of waste material to reuse (energy, CO2) • CO2 emission fee and regulations
• Potential in reuse (e.g., irrigation) to reduce costs • Volatile prices of energy, coal, fertilizers, and other
• Access to international nets (Kaufland, Lidl, Netto, products
etc.) • Banks are more unlikely to invest (higher cost of
• Consumers’ awareness of the importance of invested capital)
vegetables consumption in the diet • Decreasing profitability forcing growth in volumes
• Polish origin is locally prioritized
• Constantly emerging new product opportunities
caused by environmental changes (e.g., water
restrictions and salinity in North Africa, increasing
number of emigrants in Poland)
• big country, smaller concentration of growers, lower
risk of disease transmission

16
VIII.

Conclusion

Despite the energy crisis and the war in The increase in output prices will not be
Ukraine, glasshouse production in Poland is compensated by an increase in sales prices.
stable. Increasing productivity is also possible,
although it is threatened by new diseases,
The role model of the modern grower is
which can lead to a significant decrease in
business oriented manager, often seen in
production, change of profile, etc.
larger companies.
Poland applies the same technologies, it
Polish growers are open to new
has similar limitations and opportunities
technologies, innovations, and cost
as other EU countries. Although the
optimization to increase economics. Coal
Polish grower does slightly differently, the
heating, old fashioned and consuming the
interests remain the same as those of the
largest share of costs, needs to be changed
Dutch. Both countries are a short distance
in the long-term period, and it must follow
away and in a similar climatic zone.
the state direction, which is still not clearly
regulated. Polish growers follow prices and trends on
the Dutch market. Due to large imports,
The industry is closely dependent on
local supply fluctuations are largely
energy. Innovations in energy, energy-
dependent on the harvest and price in BX.
saving solutions are particularly needed.
Even though Polish growers grow different
Another challenge is to optimize labor costs varieties, the crop remains the crop and this
and mitigate the impact of lack of people dissimilarity gives only partial protection of
through robotization, which might to be the local prices and demands.
next step.
Poland is the follower and the sentence
frequently heard in the industry is “what
happened in Netherlands yesterday, will
happen in Poland tomorrow”.

17
AUTHOR:

Anna Wojciechowska – graduate of


University of Life Sciences in Lublin (MSc),
for over 20 years active in the glasshouse
horticulture industry in Poland in crop
consulting and commercial supply.

Desi g n by:
Wo j ci ech C i ąg ł o

www.dtp-studio.pl

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