What are the Critical Success Factors in Operating an Economically Viable Northern Greenhouse? …The Federal Government wants to know! Larry Lenton Director Outreach and Collaboration Agriculture and Agri-Food Canada Strategic Partnerships Initiative – Aboriginal Agriculture Critical Success Factors in Locating and Operating a Northern Greenhouse 1. COMMUNITY ENGAGEMENT • ensure the community’s interest/leadership is engaged 2. MARKET DEMAND • opportunities for food/non-food commodities • size of service area and competitive advantages 3. LABOUR SUPPLY • skilled / non skilled labour (seasonal/full time) • competencies & level of education 4. RESOURCES • land & water • Infrastructure – Utilities and Roads 5. TECHNOLOGIES • agronomics & building design • heating and energy opportunities 6. ECONOMICS • enterprise budgets • macro economics (supply chain economics and transportation of inputs) 3 COMMUNITY ENGAGEMENT What is the community’s interest and expectations for northern greenhouse production? a. What is the business proposition that most interests the community? b. What are the community’s short term / long term vision, and how does a greenhouse support that vision? c. How simple or sophisticated does the greenhouse operation need to be to meet the community’s interest? d. Is the community interested in creating jobs and/or making profit? COMMUNITY ENGAGEMENT (cont’d) f. What’s the community’s level of commitment i.e. time and money for taking on this venture? g. Is there community leadership with possible succession planning to ensure the long term viability of operations? h. Does the community want a not-for profit business model where fresh food is provided, labour is volunteered and the produce is shared, e.g. community gardens? 5 MARKET DEMAND What are the drivers around the potential greenhouse services wanted and needed by consumers? a. What are the current foods consumed in the community? b. What is the size of the servicing area, where one community serves as a hub to providing services, and can a map be drawn for various opportunities? c. Are there food catering opportunities to local camps (e.g. mining, forestry), and how big does that service contract need to be for cost-effectiveness? d. What are the local diets and how does culture affect the introduction of new foods? 6 MARKET DEMAND (cont’d) e. Is there a historical understanding that might prohibit the introduction of new foods? f. What are the non-food services that a greenhouse could provide, (e.g. tree transplants for forestry and mining reclamation operations)? g. Are there transportation back haul opportunities within the northern routes for other commodities? h. Does the greenhouse serve a seasonal market (May-Oct) or is it a 9-12 month operation, and at what point is it feasible and desirable to switch, if it is technically or economically possible? 7 LABOUR SUPPLY What is the demographic make-up of the local labour market? a. What is the proportion of skilled and non-skilled labour? b. What are the competencies and minimum education requirements in running a greenhouse operation? c. Is there community leadership that can champion the project? d. What are the competing industries for the same labour pool? e. Is it cost prohibitive to import labour, seasonally or full time to meet educational requirements? f. What are the short term and long term training requirements and associated costs to addressing a skilled labour shortage? RESOURCES What are the available resources? a. Are there any competitive advantages to be captured in the community because of its location to resources e.g. natural resources or man-made infrastructure? b. How is the community accessed e.g. by air, road, winter roads, boat? c. What is the source of water and its quantity and quality? d. What are the capital resources that could be tapped through building relationships and partnerships e.g. mining, forestry companies? e. What are the government financial assistance programs that can be used to initiate and pay for start-up costs? (e.g. Aboriginal Affairs and Northern Development Canada Eco-Energy Program, federal/provincial government Growing Forward programs, etc.) RESOURCES (cont’d) f. What level of support can the Aboriginal infrastructure provide, for example, Economic Development Corporations that may exist for some Bands? g. What are the known limitations to development because of lack of certain resources (e.g. capital, human, natural, etc.)? h. What are the short term and long term training requirements and associated costs to addressing a skilled labour shortage? i. What are the energy and power sources? j. What are the resource management strategies for the energy feed stocks to be ecologically sustainable? 10 TECHNOLOGIES What are the proven sustainable northern greenhouse technologies that could be adopted? (Note: The assumption is that there is “transferability and relevance” of the technologies for wide use among northern/remote communities inclusive of the Territories and provinces.) a. What are the agronomics for growing food and non-food commodities, including pest management, growth medium, light, temperature, humidity, air exchange, etc.? b. What are appropriate varieties of warm and cool season vegetables and fruits that can be grown effectively in northern greenhouse operations? c. What are the operational requirements and technologies/techniques required for the growing of woody and herbaceous plants for landscaping, fibre, reforestation and mitigation needs? TECHNOLOGIES (cont’d) d. What are the most cost effective building materials to be used e.g. double walled poly, insulated shades, etc.? e. Which technologies are tried and true and can be operated and maintained by local staff? i.e. What are the most appropriate technologies given the existing labour supply to support it? f. What are the alternative energy/power technologies that can substitute for diesel and propane, e.g. biomass (wood, plant materials), biofuel (biodiesel, ethanol), biogas (bio-digestion from crops, manure, food by-products, landfill gas), solar, wind, thermal sinks, etc.? g. What can we learn from other countries like China with similar environments on low tech solutions and what is the certainty of success in Canada? 12 TECHNOLOGIES (cont’d) h. What are the other promising emerging technologies that could be commercialized in the future? i. What is the energy feed stock regime to supporting the different energy technologies? j. What are the proven best practice technologies in regards to energy efficient options for heating, cooling and lighting, e.g. Stirling engine, LED lights? 13 ECONOMICS What are the micro and macro economics surrounding the adoption of northern greenhouse technologies in support of economic development and food security? a. What is the most likely business proposition(s) that best aligns with the community’s vision and aspirations? b. What are the different commodities that could be feasibly grown and marketed along with their associated revenues and costs given the market potential, available human resources and natural resources, cost of production, revenue projections? (Provide enterprise budgets.) c. Are there niche market opportunities to pursue? d. What are the set up costs in the establishing a greenhouse using biomass – renewable wood products, as a fuel source for generating light and heat relative to one other regionally applicable technology? (This other technology should be financially competitive to burning wood for comparative purposes, and could be, for example; anaerobic digesters, gasifiers, solar, wind, thermal, natural gas etc.) ECONOMICS (cont’d) e. What are the risk management solutions for the different technologies, including back up energy systems? f. What are the food safety business costs that need to be included? g. What are the capital resources that could be tapped through building relationships and partnerships e.g. mining, forestry companies? h. What are the economies of scale and size to capture, especially other uses of the heat source, e.g. through a district heating system using schools and other buildings? i. What are the government financial assistance programs that can be used to initiate and pay for start-up costs, including any food/transportation subsidies? (e.g. Aboriginal Affairs and Northern Development Canada Eco-Energy Program, federal/provincial government Growing Forward programs, Nutrition North, etc.) 15 ECONOMICS (cont’d) j. What level of support can the Aboriginal infrastructure provide, for example, Economic Development Corporations that may exist for some Bands? k. When is it economical to go from a seasonal greenhouse to a 9-12 month period? l. What is the full cost accounting that includes carbon emissions and possibly reducing the current carbon foot print of a community? m. What are the associated economic benefits that could accrue to a community from a greenhouse investment using an input/output model on costs and benefits to determine the macroeconomics for a region? n. What are the socio-economic benefits accruing to a greenhouse project that could include personal health, etc.? 16 DELIVERABLES • Literature review of northern food production as it pertains to greenhouse production • Compilation of best practises of current design technologies relative to the main focus of using biomass renewable wood products as an energy source • Cost/benefit analyses including financial enterprise budget scenarios and a macro-economic analyses of community greenhouse investments that uses biomass • Develop recommendations towards how these findings could be used to support a northern greenhouse investment. 17 CONTACT Larry Lenton Director Outreach and Collaboration Science and Technology Branch Agriculture and Agri-Food Canada Regina, Saskatchewan Email: Larry.lenton@agr.gc.ca Phone: 306 780-5153 18