Locally grown market opens new window

Todd Davis

There's something very fortunate about the greenhouse industry. When it closes a door, it always opens a window.

In the 1970s, tropical foliage was the No. 1 greenhouse commodity. Then houseplants went the way of Naugahyde furniture and the fad died. But around the same time the market for flowering potted plants and baskets took off.

Twenty years ago the market for domestic cut flowers began to dry up, but the demand for bedding plants exploded.

Today the market for bedding plants and holiday potted crops remains huge, but it seems to have reached a plateau. It has certainly become more competitive in recent years, to say the least.

So what is the next big thing? It's no new revelation that greenhouse- and locally grown vegetables are popular. But the shocker is just how big this market could get. In Greenhouse Management's 2011 State of the Industry report (after Page 18), almost one in four growers reported that, over the next several years, they plan to produce more fresh produce than they do today.

Are they abandoning floriculture for greenhouse veggies? Not likely. But produce can be a profitable crop addition.

Several years ago I visited a New England grower that was experimenting with "micro greens" in addition to his annual and perennial crops. He grew lettuce, kale, spinach and other greens in 1020 seed trays and basically shaved the new growth from the plants every few days to sell to local restaurants.

I thought, "nice little experiment," until he told me he was making 100 times more net profit per square foot of greenhouse space with micro greens than with his bedding plants.

If you're going to get into the locally grown food market, do your research. Meet with high-end restaurants and find out what they need and what they're having trouble sourcing from traditional suppliers.

And take a hard look at farmers markets. USDA reports that the number of U.S. farmers markets increased 17 percent from 2010 to 2011, and there are now around 7,175 of these facilities across the country.

With masses of Gen Xers moving from the suburbs to the inner cities, it's easy to see the popularity of farmers markets hanging around a long time. Buying food from local farmers gives these condo dwellers a sense of nostalgia, not to mention feeding their need to help reduce the nation's carbon footprint.

"Locally grown," won't be the next Naugahyde anytime soon.

tdavis@gie.net