‘They’ve doubled’: Costs spiking for southern Alberta greenhouse operators
Yesterday
Eloise Therien / Global News
Like many Albertans, greenhouse operators are feeling the pinch of inflation and other rising expenses.
For Connie and Cullen Ng, who own Dan's Greenhouses in Lethbridge, the major increase in costs over the last year has been related to heating.
As a seasonal facility, they begin planting in the winter.
"They've doubled since last year," Cullen said.
"We just kind of have to budget it in, we just have to spend more money on everything."
But the company, which has accumulated many regular customers over 65 years in business, is hesitant to bump up prices on its plants, flowers and other items.
"Everything went up (in price), but we care more about supporting local -- local business," Connie explained. "We try to keep the price (for shoppers) as low as possible. So lots of stuff is the same price as last year."
Paul De Jonge, who owns Broxburn Vegetables & Cafe just outside the city, said he has seen at least a 10 to 20 per cent increase in overall costs this year.
"Electricity costs, we've seen a steady increase over the last year," he said. "Some of my shipping costs to bring in my plants from B.C., the costs doubled. So rather significant."
Whole Leaf, an indoor lettuce producer in Coaldale, has a co-generation facility in partnership with Signalta, which offsets its natural gas, electricity and carbon dioxide.
Despite this shielding them from those price increases, general manager Archie Mpofu said the facility is still feeling the pinch in other areas.
"We've seen about a 30 per cent increase in some of the inputs we use, including fertilizers and packaging supplies," Mpofu said.
"We're having challenges right now with just how much input costs have gone up in the past year."
Read more:
Albertans shocked twice by sky-high power bills caused by ‘estimated’ readings
Shipping to chains across Canada such as Wendy's, transportation has also proven to be a major expense.
"It's been a challenge because we are not able to pass all those costs to our customers, otherwise we'd have huge increases in produce prices," Mpofu said.
"We're just waiting it out and seeing how the economy can do better."
Eloise Therien / Global News
Like many Albertans, greenhouse operators are feeling the pinch of inflation and other rising expenses.
For Connie and Cullen Ng, who own Dan's Greenhouses in Lethbridge, the major increase in costs over the last year has been related to heating.
As a seasonal facility, they begin planting in the winter.
"They've doubled since last year," Cullen said.
"We just kind of have to budget it in, we just have to spend more money on everything."
But the company, which has accumulated many regular customers over 65 years in business, is hesitant to bump up prices on its plants, flowers and other items.
"Everything went up (in price), but we care more about supporting local -- local business," Connie explained. "We try to keep the price (for shoppers) as low as possible. So lots of stuff is the same price as last year."
Paul De Jonge, who owns Broxburn Vegetables & Cafe just outside the city, said he has seen at least a 10 to 20 per cent increase in overall costs this year.
"Electricity costs, we've seen a steady increase over the last year," he said. "Some of my shipping costs to bring in my plants from B.C., the costs doubled. So rather significant."
Whole Leaf, an indoor lettuce producer in Coaldale, has a co-generation facility in partnership with Signalta, which offsets its natural gas, electricity and carbon dioxide.
Despite this shielding them from those price increases, general manager Archie Mpofu said the facility is still feeling the pinch in other areas.
"We've seen about a 30 per cent increase in some of the inputs we use, including fertilizers and packaging supplies," Mpofu said.
"We're having challenges right now with just how much input costs have gone up in the past year."
Read more:
Albertans shocked twice by sky-high power bills caused by ‘estimated’ readings
Shipping to chains across Canada such as Wendy's, transportation has also proven to be a major expense.
"It's been a challenge because we are not able to pass all those costs to our customers, otherwise we'd have huge increases in produce prices," Mpofu said.
"We're just waiting it out and seeing how the economy can do better."
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