Powering Growth – Invest Medicine Hat

Powering Growth

News / People / Real Estate

The rising demand for greenhouse vegetables could power growth in Medicine Hat.

 

Canada’s greenhouse operators are growing their square footage to take advantage of rising vegetable prices in international markets.

In Alberta, Medicine Hat continues to lead the way, accounting for 70% of the province’s total greenhouse area, while producing enough power to meet the growing needs of the city.

And there’s room for more.

On November 2, the City of Medicine Hat officially opened a new power plant that Cal Lenz, City Commissioner of Utilities says “will meet the growing needs of the City,” while mentioning new greenhouses as a potential source of demand.

That’s no coincidence.

Rising value for peppers, tomatoes and cucumbers has lead to greenhouse operators adding square footage in order to take advantage of a growing global market.

Peppers in particular have been on a run, with their farm gate value rising from $300,000 to over $425,000 (thousands of dollars) between 2011 and 2015, according to Statistics Canada.

The farm gate value of tomatoes and cucumbers has risen by approximately 9% over the same time period.

As greenhouse vegetable prices continue their upward trend, expect square footage to increase as well, along with demand for power.

Most notably, Big Marble Farms recently cut the ribbon on a 1.5 million square foot vegetable greenhouse adjacent to Medicine Hat.

The facility is Alberta’s largest greenhouse and draws on city power, proving that large-scale operators can indeed thrive in Canada’s sunniest city.

With the City’s new power plant now online, greenhouse operators seeking a location to expand their own square footage will begin looking harder at Canada’s sunniest city, confident that their power, logistics and labour force needs can be met.

As a power generator, Medicine Hat is able to cut transmission costs, which are forecast to nearly double by 2025.

For any major power user, that represents significant savings.

Combine locally-generated power and no transmission costs with available land, and a well-established greenhouse industry, and it is clear that Medicine Hat has planted the seeds for success in Canada’s growing greenhouse industry.

This article originally appeared in the Medicine Hat News on November 23, 2017.