Automated greenhouses: Quebec ready to pay up to $20 million to Vegpro

The Ministry of Agriculture (MAPAQ) is ready to pay up to $20 million to Vegpro to help it pay the electricity bill for its new automated greenhouses in Montérégie.

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This is indicated by a decree adopted last month by the Legault government and made public on Wednesday.

However, greenhouse producers already benefit from an advantageous rate from Hydro-Québec.

“Increasing Quebec’s supply through the development of greenhouse cultivation constitutes an essential pillar for strengthening Quebec’s food autonomy,” explains Yohan Dallaire Boily, spokesperson for MAPAQ.

During a telephone interview with The JournalVegpro CEO Anthony Fantin maintains that the subsidy will not reach $20 million, but rather $6.7 million. It will cover up to 40% of the eligible electricity costs of the four-hectare greenhouse complex for eight years.

Vegpro also requested various subsidies totaling $8.7 million from Quebec, Hydro-Québec and Énergir in connection with the nearly $140 million project.

Anthony Fantin

Photo taken from LINKEDIN

“The risk is big”

“The investment is big, the risk is big because we are doing something completely new,” explains Mr. Fantin. So if we obtain $10 to $15 million in subsidies on an investment of $140 million, that reduces the risk.”

The new facilities, which are to be inaugurated in the spring, will be able to produce approximately 150,000 pounds of lettuce per week, which will be in addition to the current production carried out in fields in Quebec, British Columbia and Florida, or more than 600 000 pounds per week.

The project itself will create few jobs, but the associated packaging plant is expected to provide employment for around 80 people.

Sales down

Sold to the American investment firm Vision Ridge in 2022, Vegpro suffered from soaring inflation, which prompted several customers to abandon lettuce in favor of other vegetables.

“We have always called ourselves an affordable luxury, but here, in 18 or 20 months, we went from a bill of $3.29 to $4.99 [pour une boîte de mélange de laitue Attitude]. It’s a big sticker shock», underlines Anthony Fantin.

Over the past two years, Vegpro’s sales (by volume) have fallen by 15%, but the company has still managed to increase its market share.