Glasshouse Growing – technology & system production Challenges of: Glasshouse Growing – technology & system production

Company Introduction Third generation family run business, specialising in the production and supply of UK salad produce. Marketing over 40 hectares of UK glasshouse production Glasshouse production typically produces fruit between March and October The pack house operates daily year round. Our winter sources are in Spain, the Canary Islands and Israel.

Marketplace Overview Farms / nurseries are predominantly; privately owned, often by second or third generation family members The market is dominated by large marketing organisations specialising in a focussed growing practices and sub areas of these. Arable crops Orchard production of top fruit Vegetable open field production Semi-Protected growing of Soft Fruit Protected Edibles The average industry profit margin is now 1% * Survival is driven by consolidation and high volumes *source Plimsoll

Total Produce Overview Total Fresh Produce market farm gate value is over £2 trillion * Of this home production protected edibles equate for around £350m Total Fresh produce market has stabilised around 9.3 million tonnes * Vegetables including protected edibles equate for 4.8 million tonnes Fruit equates for 4.5 million tonnes 1980s 1990s 2000s 2010s % Home Production 58% 51% 39% 37% 2nd week of May *source DEFRA 2016 Horticulture Statistics

Protected Edibles - Salad Total Area has fallen from a 1990 peak of almost 300 hectares to under 1000 hectares Recent investments have stabilised the growing area Main causes: Competition for land with the housing industry Lack of inflation to returns Increased demand for alternate crops Total Productivity per hectare has increased 330% 1985 low 126 tonnes / hectare 2016 high 416 tonnes / hectare The only crop with increased area is peppers This crop has now moved from ‘exotic’ to ‘commodity’ resultant in a return price which is unsustainable and likely to lead to a decline

Protected Edibles - Salad Key crop productivity increases 2000-2016 Tomatoes 8% Cucumbers 32% Lettuce 68% Sweet Peppers 16% Increased production achieved through Investment in infrastructure Investment in energy modules New growing techniques Higher yielding varieties Higher yields with longer shelf lives have resulted in less flavour and lower nutritional value 2010-2016 All crops have slowed to <6% yield increases Remaining increases coming from site modernisation Variety improvements appear to have peaked

Contextualising the market Reduction in production areas are the result of: Falling Revenues per sales unit Increased competition for land from housing market Competition from imports Key markets The Netherlands and Spain where both are heavily subsidised from the European Union and National Banks Increased legislation High input costs both new start ups and at the start of each season Long hours for diminishing reward Labour availability and cost There are now two types of modern greenhouse business: Low / Low High / High

What does a modern business look like? Low Cost Low Production High Cost High Production Glass size and type Heating System CO2 options Staffing Onward fruit handling Advantages Disadvantages Older glasshouses (typically inherited) New glasshouse (typical externally financed) Basic gas boiler system Modern CHP and/or renewable energy CO2 produced from energy generation centre and reserve boiler CO2 taken from boiler flue gas Small area requiring less staff often family members Large areas demanding high volumes of skilled labour Sent to marketing organisation Self graded / marketed Low overheads High Control – all areas of business No pressure to produce at a financial loss Economies of scale Longer Seasons More crop options Low volumes Less crop options Difficult to re-invest to move to ‘next level’ High overheads Less focus Low yielding season = higher economic impact

What does a modern business look like? Solar Panels Grading and Packing facilities Glasshouse 5-7m Thermal screens Water collection Drip irrigation Automated fruit transportation Lighting Irrigation and water recycling centre Energy Centre CHP Biomass Boiler Anaerobic Digestion Heat exchange Pumps Reservoir

What does a modern business look like? Flood bench system Gutter system Lighting Heat and water storage

What does a modern business look like? - Top left and centre – ‘Umbrella style’ cucumber crops - Top right – early season tomato crops - Bottom left – peppers 1 week after ‘planting’

Biggest Challenges & opportunities Energy Pricing Staff Availability & cost Value in the market place Space for production Transportation costs Carbon Footprint Renewable energy / Energy storage technologies Robotics New products / Niche varieties / GM Fruit Innovative growing technics Inner City production Carbon capture and storage / Waste utilisation Our Goal = Commercial sustainable Carbon Negative Production

What Can EPIC do for us? Considerations Can the solution be applied to both modern and old facilities What would you suggest if we started again Is there an opportunity for cross functional solutions Areas of discussion for this afternoon: Labour efficiency – Robotics Harvesting / crop work Time management Pest & Disease scouting / Solution application Input management – Sensors & Networks Local area root zone management Localising humidity and temperature management to reduce energy use Improved CO2 capture, application and use Plant Performance & Productivity Improved nutrient absorption Productivity with lower inputs Increasing nutrition without reducing yield, disease resistance and shelf life

The Future of Protected Growing

Thank You For Listening Luke.hibberd@abbeyviewproduce.co.uk Abbey View welcome project opportunities and work experience requests – please contact the team directly through: Technical.manager@abbeyviewproduce.co.uk HR.Manager@abbeyviewproduce.co.uk