GREENHOUSE PRODUCE MARKET ANALYSIS

Market Challenges And Opportunities

• Major driver for greenhouse produce market growth is increasing demand for more intensive production of crops due to limited land, water, and labor. Regional governments are taking initiatives to develop new greenhouse production units. For instance, according to the Russian Federation Ministry of Agriculture, in 2016, 160 ha area of modern greenhouses were built in Russia.
• Greenhouse production is more expensive than producing the same crop in the open field. Important factors determining costs of greenhouse production are depreciation of the structure and equipment, energy, labor, and variable costs such as plant material and fertilizer. According to the article published in an International Journal of Environmental Sciences, in 2013, comparison of the selling price of an open field and greenhouse cultivated tomatoes concluded that the selling price of greenhouse grown tomatoes was US$ 0.22 more than the open field grown tomatoes. Such factors are major challenges for growth of the market over the forecast period.