The changes in the field of crop protection (read: fewer and fewer agents are authorized) are going to have consequences in the short term. That is the prediction made by Floris Berghout of Viemose DGS. Towards the winter of 2025-2026, he already foresees serious problems. As a specialist in systems for growing on water, he sees the current market developments as an opportunity to use the promising technology much more widely than is already the case in Europe. Lettuce growing on water has been done for years, but despite the proven benefits, the market here is still somewhat reluctant.
There are all kinds of explanations for this European reluctance. The vertical farming debacle of recent times, with several bankruptcies, for instance, has not helped, Floris knows. "Regular cultivation of water also suffers from this. Investors are spooked by it. You see less extreme investments, and regular horticulture also notices this."
However, the CEO of the originally Danish company also notes that investors from the vertical farming market, with faith in food cultivation, have started to look more towards a greenhouse, or a hybrid cultivation system with greenhouse and multilayer cultivation again. So it doesn't always have to be entirely negative either.
Floris Berghout (left) followed in Søren Kristensen's footsteps as the new CEO of Viemose DGS this summer
European slam market is locked
Now Floris is not negative anyway, but rather enthusiastic about the market opportunities and potential, but realistic. Anyone who starts growing lettuce on water will have to make substantial investments. As long as there is still plenty of lettuce available from less capital-intensive crops, the market will quickly tend towards this. Certainly in Europe, according to Floris, this makes the market for lettuce cultivation on water 'fairly locked up' so far.
In the United States, among others, it is different. "There, a grower really pushes his product to retail himself. In Europe, it's more that retail is leading. That is the asking party. The European grower mainly grows what the retail demands." At the same time, that also offers opportunities, especially at a time when lettuce availability is coming under pressure as outdoor growers face climate extremes and a declining resource package. "And there are also considerable challenges in the greenhouse with a soil-based crop." Floris mentions Fusarium. "Growers can steam as long as they can bear the gas cost for this with a good gas contract. Steaming at the daily price for gas, that already becomes a lot more difficult."
Lettuce growing on water, in Poland, at Smart Vegetable Innovations
Tightness in the lettuce market
Since becoming CEO of Viemose DGS last summer, Floris has been in talks with numerous parties in the chain, and certainly not only with the grower who has to choose the cultivation system. "Tightness in the lettuce market is good for our business. At that point, parties will start jumping into the gap that will arise." Tightness or crisis may accelerate the switch to lettuce cultivation on water.
Who will be the parties that react first in case of tightness is the question. The Dutchman knows that covered lettuce cultivation on the water is being looked at by livestock farmers, among others. Political measures threaten their future. "The advantage is that these kinds of large farmers are already used to high investments. The disadvantage, in turn, is that they do not yet have cultivation knowledge."
Floris also started talking to supermarket buyers. "One already told me that he foresees big problems. According to him, large outdoor lettuce growers in particular will find it difficult. If they stop, something has to take their place. Buyers still require A-quality, but also at a low price. As long as that continues, the system will keep going, but at some point, it can't."
Lettuce on water, at Smart Vegetable Innovations in Poland
Enough market for everyone
At least, that is what the Dutchman foresees and predicts. According to him, the years 2025-2026 are going to be a turning point. That is why he is now busy making the 'gospel of hydroponics sing around'. He stresses that he is therefore certainly not talking only out of Viemose's interests. Of course, the Danish company, which has supplied systems for more than 700 hectares since the 1980s, is happy to sell a few new projects, but one also benefits from an overall development of the market. "There is more than enough market for everyone if we also get the market going," he says.
According to Floris, one of the reasons that specifically in the Netherlands, where horticulture is often at the forefront of technical innovations anyway, lettuce growing on water has not yet taken over the entire market is the "good distribution" here. Logistics make it possible to get lettuce fresh and quickly to the right places. "Elsewhere in Europe, this is already a lot more difficult. The availability of good growing areas for outdoor cultivation is decreasing, and so is the amount of product you can harvest per hectare because of challenges with climate and plant protection products. In Europe, there is room on the market."
As an example, he cites Italy and Macedonia, where a lot of arugula comes from outdoor cultivation, from under tunnels. It is a ground crop, just like in Greece, where Floris also visited the crop up close. "Here, growers are increasingly bothered by insects. Because they have fewer pest control options, they cannot grow as good produce or the number of kilos decreases. At that point, the price goes up."
Joining forces
The Dutchman hopes for a chain reaction, in which a new wave of investments, like earlier in the cannabis market and vertical farming, now drives lettuce cultivation on water. "Now the chain in Europe is still short and there is always lettuce to be had somewhere, but that won't last. We're not all going to wait until it's too late, are we?"
His colleagues in engineering are calling on Floris to join forces. The systems for growing lettuce on water are already in place. Now the business case needs to be further optimized. In the vertical farming market, Floris feels that the business case has long been looked at as being too rosy. "Maximum prices were only looked at at maximum production. Among other things, start-up time was forgotten here. In that, you don't have production, but you do have costs. That affects your ROI. The right arithmetic has to be done."
Floris, in the middle, at the opening of a new greenhouse with lettuce cultivation on water in Poland this winter, at grower Smart Vegetable Innovations
Good example leads the way
The Dutchman sees plenty of opportunities for clustering technical knowledge. "After all, in horticulture, we are all sort of married to each other anyway. Together with technology suppliers, consultancy firms and growers, we have to complete the picture for growing on water." One challenge, however, is that Floris says there is still some reluctance in lettuce cultivation when it comes to sharing data. The market is still tight at the moment. Possibly that explains the fear of competition. Once the market, perhaps sparked by a good crisis, does start moving, there will be market enough for everyone. "If we pull in a few percent of outdoor cultivation, we will bring in a lot of work," he says.
A good example of such a forward-thinking outdoor grower who has moved into lettuce growing on water, even in Europe, is based in Poland. It is Smart Vegetable Innovations from Zdunów, near Warsaw.* "This grower has several thousand hectares of outdoor fields across Europe for all kinds of crops. By taking steps to grow lettuce on water, among other things, this grower is prepared for the future."
In this way, the grower, who recently opened phase 2 which includes a Moving Gutter System from Viemose DGS, can gain experience and understand market dynamics. The grower himself, in the person of director Piotr Izdebski, stresses that lettuce cultivation on water does not directly replace outdoor cultivation, but complements it. "Outdoor cultivation will remain an essential part of our sourcing strategy for the foreseeable future. Our investment and growth in lettuce cultivation on water enables us to expand into new product categories, such as BIO herbs and BIO quality lettuce. These products align with changing consumer preferences and sustainable growing practices, reinforcing our role as a diversified and innovative grower."
Floris advises other growers to take a step like the Polish grower did too. "Start small with lettuce cultivation on water, but make sure you start. For almost every grower who dares to start growing from the ground, there is a conclusive system. Moreover, with a small acreage, you can soon grow much more product than in open ground. That can be calculated around anyway."
In the greenhouse at Smart Vegetable Innovations
For more information:
Floris Berghout
Viemose DGS
[email protected]
www.viemose.nu