A ‘cost effective and scalable’ greenhouse strategy for Europe
Added on 08 August 2023
In reality, not every CEA company teeters on the brink of bankruptcy or closure. While the greenhouse industry isn’t immune to current market forces (see AppHarvest’s recent Chapter 11 filing), more than one positive story has come out of the CEA segment of late.
The most recent is agribusiness investment vehicle Cibus Fund II‘s recent acquisition of Duijvestijn Tomaten BV, a Dutch greenhouse company that grows tomatoes in glasshouses powered by green energy, including geothermal.
Speaking to AgFunderNews, Jason Silm, head of agriculture at Cibus Capital, said the acquisition is a first step in Cibus’ larger indoor ag strategy of building The Flavour Farm, “a pan-European platform focused on fresh produce self-sufficiency,” starting with greenhouses and glasshouses.
Geopolitical crises and consumer demand mean change
The European greenhouse industry has long relied on cheap gas to produce heat and electricity that power operations.
That’s changed in the last couple of years thanks to the war in Ukraine, which pushed energy prices in Europe up to unprecedented high levels. Record inflation and trade disruption are also impacting food production, as are the adverse impacts of climate change. Britain’s tomato shortage, which is linked to freezing temperatures and poor yields in Spain, is one recent example.
Image credit: Cibus/The Flavour Farm
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