Green Farming Growing Solutions: your next step in greenhouse · Growing Solutions: your next step...

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Growing Solutions: Demonstration Project for SME Vegetable Growers Green Farming Demonstration Project Growing Solutions: your next step in greenhouse vegetable growing Smart investment in sustainable horticulture

Transcript of Green Farming Growing Solutions: your next step in greenhouse · Growing Solutions: your next step...

Growing Solutions: Demonstration

Project for SME Vegetable Growers

Green FarmingDemonstration Project

Growing Solutions: your next step in greenhouse

vegetable growing

Smart investment in sustainable horticulture

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Green Farming is a Dutch programme that unites horticultural networks in the Netherlands, Kenya and other East African countries. This is achieved by setting up demo-projects, organizing trade missions, knowledge exchange and joint research activities.

Growing Solutions Kenya demonstration projectGrowing Solutions Kenya (GSK) is one of the demonstration projects set up within the frame of Green Farming. Growing Solutions Kenya aims to make Dutch greenhouse technology available for local vegetable growers. The programme demonstrates three different greenhouse growing systems adapted to local growth conditions: the BASIC, the PLUS and the ADVANCED units. The demonstration units are located at Latia Resource Center in Isinya, Kajiado County. Tomato, being the largest vegetable crop in Kenya, was selected for demonstration purposes.

Project PartnersGrowing Solutions Kenya is implemented by a consortium of leading Dutch greenhouse technology suppliers, in close cooperation with local partner Latia Resource Center. This consortium includes Bosman Van Zaal, Delphy, Gakon Horticultural Projects, Genap, Hoogendoorn Growth Management, Horticoop, HortiMaX, Koppert Biological Systems, Ludvig Svensson, Ridder Drive Systems, Van der Hoeven Horticultural Projects and AVAG, the Dutch organization for horticultural suppliers. The programme is supported by the Dutch government.

Green FarmingThe link between African and Dutch horticulture

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“Together with our partners in Kenya we aim to find solutions that best fit local conditions. Adaptation is the guiding principle.”

After three successful demo projects in the flower industry, Green Farming was asked by the Dutch Government to set up a demonstration project for vegetable growing in Kenya. Greenhouse technology and knowledge should be within reach of small and medium-sized farms in Kenya. That was our challenge. Then the search began for a suitable soil, for good water and for qualified manpower. We found this combination at

the Latia Resource Center. After two years of hard work we are proud to present a demonstration and training centre with three levels of greenhouse technology. After two cycles at the Latia Resource Center we can show you attractive investment opportunities.

Green farming aims to combine the best of two worlds. Kenyan farmers have the best knowledge of local production conditions, climate and infrastructure. Dutch companies add their knowledge on greenhouse technology and sustainable vegetable growing. Combining both sides is the key to achieving success. Together with our partners in Kenya we aim to find solutions that best fit local conditions. Adaptation is the guiding principle.

Growing Solutions Kenya has introduced an entirely new way of growing tomatoes in greenhouses: ‘high wire’ tomato growing on substrate and in soil, aiming to produce fruits year-round, with a higher and better quality return, and an efficient and sustainable use of inputs.

Training and knowledge transfer on tomato growing has been a central activity during the first two cycles. In this way the programme demonstrates the potential of the technology and creates local knowledge and growing experience at the Latia Resource Center. We believe that creating experienced local experts ensures long-term viability of the investments.

Green Farming combines the best of both worlds. Partners for growing solutions. We are looking forward to getting into contact with you.

Harm Maters Chairman Green Farming

Foreword

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Investing in greenhouses is a smart idea if you want to grow vegetables in an efficient and sustainable way. Growing vegetables in greenhouses makes it possible to target the top of production to the months when prices in the market are highest.

Production can be year round satisfying the needs of your retail clients. Money is saved as less water and fertilizers are needed to produce 1 kg of vegetables while pest and diseases can be controlled easier preferably using biological methods.

Growing Solutions Kenya has designed three levels of greenhouse technology suiting local production conditions: the BASIC module, the PLUS module and the ADVANCED module. The modular set-up will allow growers or investors to choose the most suitable module suiting their own conditions and in time “grow” to a higher level of production technology.

Introducing locally adapted, high quality and sustainable greenhouse technology.

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The BASIC module:

• Production in soil• Strong greenhouse structure with 4 m gutter height• Fixed ventilation windows at top and sides• Ventilation windows covered with insect netting• Manual application of water and fertilizer

The PLUS module:

• Production in soil• Strong greenhouse structure with 4 m gutter height• Manual adjustable ventilation at top and side vents• Ventilation windows covered with insect netting• Automated water and fertilizer application

The ADVANCED module:

• Production on substrate (coco peat/pumice)• Strong greenhouse structure with 4 m gutter height• Ventilation windows covered with insect netting• Automated climate control• Automated water and fertilizer application• Movable screen

A

B

C

Added valueThe automated water and fertilizer application with the FertiMIX-Go! will allow for the timely application of fertilizers and water in accordance with the needs of the plants. The automated climate control through the iSii-compact processor will create the optimal growing conditions for the vegetable crop. The movable screen will reduce sun intensity and temperature during day-time and keep up the night temperature closer to the optimal condition to grow vegetables.

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Per module of 500 m2, 1,100 plants are planted giving a plant density of 2.2 plants per m2. Planting is planned so that the top of production is in the December-March period when market prices for tomatoes are highest in Kenya. Eight weeks after planting, the first tomato crop can be harvested. Tomatoes are picked twice a week. The product is sorted into first and second grade. Second grade is sold at a 10-15% lower price.

Production results of the first cycle at the Latia Resource Center in 2016 compared to the prognosis are presented in the following figures.

Growing Solutions greenhouse technologymakes high yields per m2 possible.

Actual Yields 2016 (kg/m2) Cummulative

Yield Prognosis (kg/m2) Cummulative

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Summary:• Growing conditions in Kajiado County, Kenya are excellent for growing high-

quality tomatoes with Growing Solutions Kenya greenhouse technology.• High yields of 20 kg and more per m2 growing tomatoes can be achieved.• High price for quality tomatoes can be obtained when selling at the optimal period. • High increase in productivity is possible with yields reaching 28 to 35 kg/m2 for the

Plus and Advanced growing technology.

Different crop cycle lengths During the first two production cycles differences between the Basic, Plus and Advanced units became apparent. In the Basic unit tomatoes were harvested after 6 months, while plants in the Plus unit continued producing for another 6 weeks. The tomato crop in the Advanced unit was still producing 10 months after planting. At that point harvesting in the Advanced unit was stopped in order to replant a new cycle on substrate in time to have tomatoes ready for harvesting in November-December-January, when tomato prices are at their highest.

High sales priceThere is already demand in Nairobi for quality tomatoes supplied on a regular basis, preferably-year round. The main customer was a specialised Nairobi-based vegetable shop. The sale price ranged between 60-70 KES (€ 0.55-0.60) per kilo with a peak in January at 100 KES (€ 0.90).

High yields per m²Over the first full year period, the Advanced unit gave the highest yield at 28 kg/m2. The Plus unit produced 21 kg/m2 and the Basic unit 19 kg/m2. The main difference is caused by the need to have a break crop for 3 months in the Plus and Basic units. Taking into account the excellent local climate conditions and increased experience, productivity with the advanced technology can increase to 35-40 kg/m2. With the Plus technology 28-30 kg/m2 can be reached. The Basic technology is expected to reach its maximum at 20-22 kg/m2.

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Adv

ance

d

1500

Investment in KES/m2

Plu

s 1500

Bas

ic 1500

0 1,000 2,000 3,000 4,000 5,000

Installation

Transport

Equipment

Water & Electricity

Movable screen

Greenhouse

Infra-structure

Adv

ance

d

5000

Investment in KES/m2

Plu

s 5000

Bas

ic 5000

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Installation

Transport

Equipment

Water & Electricity

Movable screen

Greenhouse

Infra-structure

Adv

ance

d

1500

Investment in KES/m2

Plu

s 1500

Bas

ic 1500

0 1,000 2,000 3,000 4,000 5,000

Installation

Transport

Equipment

Water & Electricity

Movable screen

Greenhouse

Infra-structure

Adv

ance

d5000

Investment in KES/m2

Plu

s 5000

Bas

ic 5000

0 500 1,000 1,500 2,000 2,500 3,000 3,500

Installation

Transport

Equipment

Water & Electricity

Movable screen

Greenhouse

Infra-structure

Viewing the market situation, the local growing conditions for tomato and other vegetable crops and yield potential, interesting opportunities to invest in greenhouse technology exist. Calculations have been made for investment in tomato growing in the Growing Solutions technology units comparing a scale of 1500 m2 and 5000 m2. The graphs present the amounts to be invested.

The total investment in a greenhouse of 1500 m2 increases from 9.3 million to 11 million and 15.4 million KES for the Basic, Plus and Advanced modules. At a scale of 5000 m2 the amounts are 18.9 million, 22.7 million and 29.6 million KES resp. Every 4 to 5 years the poly-ethylene cover needs to be replaced at a cost of 365 KES/m2 for a greenhouse of 1500 m2 and 300 KES/m2 for a 5000 m2 greenhouse.

Investment opportunitiesin GSK greenhouse units

Investment in tomato growing in a greenhouse of 1500 m2 Investment in tomato growing in a greenhouse of 5000 m2

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Conclusions for future investments:• Growing Solutions greenhouse technology is interesting for investments from a scale of 2000 m² and larger.• At 5000 m² investment GSK greenhouse technology is very attractive for commercial investors.• Investment in fertigation, climate control automation and movable screens is interesting if production

levels of 28 kg/m² and higher will be achieved. • Production results from the first cycle indicate that productions of 28 kg/m² in Plus and 35-40 kg/m² in

Advanced units can be realized under Kajiado circumstances, therefore such investments are worthwhile.

The payback period and internal rate of return has been calculated in order to identify whether an investment in a greenhouse of 1500 m2 or 5000 m2 is financially interesting.

Parameter

Surface

Total Investment

Investment per m2

Total Investment

Investment per m2

No of workers

Yield per m2

Average Price per kg

Forecasted revenue/m2

Forecasted costs/m2

Forecasted profit/m2

IRR

Payback Period

Unit

m2

1,000 KES

KES

1,000 €

kg

KES

KES

KES

KES

%

Years

Basic

1500

9,320

6,213

84.7

56.5

4

22

70

1,540

1,162

378

3.3

8.2

Plus

1500

11,920

7,946

108.4

72.2

5

28

70

1,960

1,438

522

3.9

8

Advanced

1500

15,405

10,270

140.0

93.4

6

40

70

2,800

2,036

764

5.0

7.8

Basic

5000

18,975

3,795

172.5

34.5

10

22

70

1,540

868

672

20.3

4.1

Plus

5000

22,750

4,550

206.8

41.4

12

28

70

1,960

1,033

927

22.9

3.8

Advanced

5000

29,650

5,930

269.5

53.9

14

40

70

2,800

1,466

1,334

23.8

3.6

Investment overview growing solutions Kenya

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Tomato plants grow best at temperatures ranging between 18 and 22 °C during a 24-hours period. The greenhouse manager’s main challenge is to reach this optimum range in order to realize maximum growth and the highest production.

During the first growing cycle the maximum and minimum temperatures in the three growing units were recorded. The temperature graphs clearly show a positive effect of the retractable screen and of the automated climate control on the temperature. On average the maximum temperature is reduced by 1.5 -2 °C while the minimum temperature in the Advanced unit is 1.5 to 2 °C higher. Keeping the maximum and minimum temperature closer to the optimum will result in higher yield and better quality. The same effect has been noted for the humidity in the greenhouse. Better control of the humidity will result in lower risks of pest and disease, thus limiting costs for pesticides.

Climate control and screens optimizetomato-growing conditions

Figure Max-Min Temperature Differences June 2016

1.

Naam

10

15

20

25

30

35

3. 5. 7. 9. 11. 13. 15. 17. 19. 21. 23. 25. 27. 29.

Min Max Gem LeeslijnJuni (2016)

kastemp - °C -: Advanced 30.8 30.8 26.6 26.8kastemp - °C -: Advanced 17 17 14.7 13.3kastemp - °C -: Plus 33.8 33.8 28.7 29kastemp - °C -: Plus 15.9 15.9 13.1 11.5kastemp - °C -: Basic 33.7 33.7 27.6 28.4kastemp - °C -: Basic 15.9 15.9 13.2 11.4

1.

Naam

10

15

20

25

30

35

3. 5. 7. 9. 11. 13. 15. 17. 19. 21. 23. 25. 27. 29.

Min Max Gem LeeslijnJuni (2016)

Max-Min Temp

kastemp - °C -: Advanced 22 30.8 26.6 26.8kastemp - °C -: Advanced 11.7 17 14.7 13.3kastemp - °C -: Plus 22.7 33.8 28.7 29kastemp - °C -: Plus 9.5 15.9 13.1 11.5kastemp - °C -: Basic 20.4 33.7 27.6 28.4kastemp - °C -: Basic 9.8 15.9 13.2 11.4

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Consortium partner informationAvag Harm Maters, PresidentABC Westland 1092685 DB PoeldijkThe Netherlands

Horticoop Frank Combee, Export Area Mgr.P.O. Box 1302665 ZJ BleiswijkThe Netherlands

Bosman Van Zaal Gerard Peek, DirectorBedrijvenweg 10De KwakelThe Netherlands

HortiMaX René van der Stam, Sales Mgr.P.O. Box 332676 ZG MaasdijkThe Netherlands

DelphyNico de Groot, Sr. Project Mgr.P.O. Box 70016700 CA WageningenThe Netherlands

Koppert Biological Systems Ard van der Maarel, Business Development Manager P.O. Box 1552650 AD Berkel en RodenrijsThe Netherlands

Gakon Horticultural Projects Olaf Mos, Sales DirectorP.O. Box 472290 AA WateringenThe Netherlands

Ludvig Svensson Hugo Plaisier, Senior ConsultantMarconiweg 23225 LV HellevoetsluisThe Netherlands

GenapBas Fortuin, Sales ManagerP.O. Box 277040 AA ‘s-HeerenbergThe Netherlands

Ridder Drive SystemsJoachim Keus, Sales ManagerP.O. Box 3603840 AJ HarderwijkThe Netherlands

Hoogendoorn Growth Management Kevin Spoelder, Area Manager SalesP.O. Box 1083130 AC VlaardingenThe Netherlands

Van der Hoeven Horticultural ProjectsPeter Spaans, DirectorP.O. Box 51552600 GC DelftThe Netherlands

T +31 174 446 660F +31 174 446 661

[email protected]

T +31 10 524 16 00F +31 10 521 67 [email protected]

T +31 297 344 344F +31 297 326 280

[email protected]

T +31 15 362 03 00F +31 15 369 30 38

[email protected] www.hortimax.com

T +31 317 491 540F +31 317 460 400

[email protected]

T +31 10 514 04 44F +31 10 511 52 03

[email protected]

T +31 174 225 700F +31 174 225 701

[email protected]

T +31 181 392 663F +31 181 392 662

[email protected]

T +31 314 661 644F +31 314 662 137

[email protected]

T +31 341 416 854F +31 341 416 [email protected]

T +31 10 460 80 80F +31 10 460 80 00

[email protected]

T +31 88 262 66 66F +31 88 262 66 99

[email protected]

growing solutions

drive to innovate

A 104

A 104

A 104

A 104

A 2

A 2

Nairobi

Limuru Town

Ruiru

Thika

Athi River

MombasaKajiado

Arusha

LatiaResource

Center

Partners forGreen SolutionsConnecting horticultural networks ofthe Netherlands & East African countries

Contact information Green Farming Growing Solutions

Mr. Nico de [email protected]

Harm Maters, Chairman Green [email protected]

This publication is printed on FSC® certified paper.

November 2016

Latia Resource Center: Growing Solutions demonstration locationThe demonstration project is situated at the Latia Resource Center, a social enterprise in agriculture founded by the Faraja Trust in Kenya. The Center provides training and business support services to farmers, pastoralists and agribusinesses in Kenya and East Africa from the viewpoint that modernization of agriculture and improvement in food security in Africa can be greatly facilitated by effective training, adequate dissemination of knowledge and provision of business support services.

Latia Resource Center is located at Off Pipeline Road, 1.5 km west of Isinya Town, Kajiado County.

T +254 716 [email protected]

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