Canada (ON): Greenhouse English cucumbers see strong winter market

Thanks to low supplies out of California, Ontario greenhouse growers are seeing strong prices this winter on seedless English cucumbers – welcome news after a year marked by oversaturated markets.

 

According to Dave Pereira of Mor Gro Farms, a Leamington, ON, greenhouse grower that sells under the Smarty Brand label, the market on English cucumbers has “jumped” in December and January. Pereira says that prices have been in the “teens” for most of the winter. For Mor Gro, which is in its first year of winter production on cucumbers, the strong pricing has helped offset the trade-offs that come with winter growing in Ontario.

 

“To grow cucumbers in the winter months, you just don’t get the same yields,” says Pereira, who notes that overhead costs are also much higher, due to heating and lighting through the winter months. As a result, few Ontario growers continue production past the fall.

 

“You’re hoping market prices compensate for lack of yields,” Pereira says.

 

Thanks to abnormal weather patterns – particularly south of the border – that seems to be the case this year. “Weather has been a little erratic. That’s played into a lot of it,” Pereira says of the short market. Pereira notes that California, Florida and Mexico all experienced pockets of adverse weather, depressing supplies.

 

While markets are favorable now, Pereira expects greenhouse cucumbers to suffer from many of the same issues that the industry grappled with in 2015.

 

“Cucumbers had a difficult spring and summer [in 2015],” Pereira says, pointing to “oversaturation” as the main culprit behind a weak market.

 

According to Pereira, the problem is directly related to category growth, a trend that has developed over the past half decade. “[Ontario growers] have already made strides in growing [the English cucumber] category over the past four years, and we continue to push for new growth,” says Pereira. Last year, however, expanded production of English cucumbers by Ontario growers dramatically outpaced category growth, causing the market to flood with product.

 

Pereira says that Ontario greenhouse marketers came out of the 2015 season in decent shape despite the turmoil, as other products helped offset the cucumber market. “Other commodities, like beefsteak tomatoes, tomatoes on the vine, and bell peppers, were able to carry the cucumber category,” Pereira explains.

 

Pereira and other greenhouse growers expect the same issues to occur in 2016, as the industry waits for category growth to catch up with the increased acreage and production of the past few years. “Ontario grower/marketers, we’re constantly having dialogues among [each other] about how we can educate our customers in the US,” says Pereira, “Cucumbers have gained traction in regards to the many health benefits it provides.” Pereira notes that he expects further category growth in the upcoming year.

 

“Right now, I don’t think we’re sustaining,” Pereira says, though he and other growers are optimistic that demand and supply will balance out over the next few years. “It’s definitely going to take some time.”

 

For more information:

Dave Pereira

Tel: +1 (519) 322-1990+1 (519) 322-1990