Recent research initiated by InnovationQuarter and conducted by Hillenraad, has explored opportunities for Dutch greenhouse horticulture companies in six US states. These are Ohio, Pennsylvania, Maryland, Virginia, North Carolina and Georgia.
The study looked at specific characteristics of US growers and synergy with Dutch technologies. The researchers identify large differences between the use of Controlled Enviroment Agriculture (CEA) in the different states.
According to the study, of the six states, CEA is largest in Ohio. The researchers count 240 hectares there, high-tech and mid-tech out of a total acreage in 2022 of 403. In the other states, CEA acreage does not exceed 100 hectares. For all states, greenhouse clusters are basically non-existent, with exceptions. Around Lake Errie, greenhouses are clustered in the state of Ohio, in Ontario (in Canada) and, for ornamental crops in particular, also in North Carolina around Asheville and Charlotte.
Drivers and trends
Demand for 'locally' produced products on the east coast of the US and solid retail connections are essential for new investments, states the study. Although there are counter forces, such as competition from Canada and Mexico and local regulations, the analysis shows that Dutch technologies can help overcome these challenges.
Challenges and opportunities
The biggest challenges that emerged during the research interviews are legal liability and approaching US growers commercially. Setting up a service organization in the US appears complex, but interest in Dutch knowledge and technology is high.
Source: Innovation Quarter
Index photo: greenhouse in cluster around Lake Errie, in Ontario