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Gas Crisis Hits Food as Giant Dutch Greenhouses Go Dark
Your Tomatoes May Cost More as Gas Prices Hit Dutch Greenhouses
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Gas Crisis Hits Food as Giant Dutch Greenhouses Go Dark Aine Quinn, Megan Durisin & Fred Pals 30 Sep 2021, 9:51 PM IST 01 Oct 2021, 1:54 PM IST 30 Sep 2021, 9:51 PM IST 01 Oct 2021, 1:54 PM IST (Bloomberg) -- Skyrocketing power prices are forcing the vast network of Dutch glasshouses -- the continent’s biggest -- to go dark or scale back, threatening to cut supplies at Europe’s fruit and vegetable
stalls and flower shops. Although small, the Netherlands is the world’s second-largest exporter of food by value, thanks in part to its high-yielding glasshouses that span some 10,000 hectares (25,000 acres) -- about the size of Paris. They grow vegetables like tomatoes, cucumbers and bell peppers and flowers including orchids, tulips and chrysanthemums -- making the country one of Europe’s key
key suppliers of fresh produce and a huge hub for the floral trade. In 2020, Dutch exports of greenhouse produce amounted to 9.2 billion euros ($10.7 billion).
But heating these sprawling glass structures uses up to 3 billion cubic meters of natural gas a year, or about 8.2% of the country’s overall consumption of the fuel. Europe’s soaring energy prices are having a “massive impact” on the sector, said Cindy van Rijswick, a senior analyst at Rabobank. That’s driving some producers to cut back on lighting, end the growing season early or plan to start later next spring. “These are drastic measures that reduce production and yield and have major economic consequences for the companies,” according to industry association Glastuinbouw Nederland. “We cannot rule out whether consumers will also pay more for their vegetables, flowers and plants.” Any fruit and vegetable shortages could further stoke food inflation. index of world prices hovering near a decade high. Grain harvests were hit by bad weather, shipping costs are soaring and worker shortages abound from farms to restaurants. The energy crunch could exacerbate those problems -- rippling through not just greenhouses, but also costs for fertilizers spread to boost crop yields.
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