Greenhouse business and innovations hubs in Ukraine

Sources

This article is based on the materials from Propozytsia Magazine, online publication AgroPortal, and Facebook page of  Podillia Greenhouse Cluster.

Sector Clusters in Ukraine

30 years ago, thanks to the American USAID project, the first attempts were made to cluster the Ukrainian economy. At that time, fantastic changes were taking place in the global and European market in particular, and at that moment, a structure such as the ECCP (European Cluster Collaboration Platform) was born - a European association of clusters, which now includes over three thousand clusters in Europe.

In Ukraine there is a uniting structure called the Ukrainian Cluster Alliance (UKA), I am the Chairman of the Board of this organization. Today we unite over 50 clusters throughout Ukraine. These are various cluster associations: medical, woodworking, shipbuilding in Mykolaiv, IT sector, etc

The most known are Lviv and Kharkiv IT sectors, because they have a large number of companies and significant turnover.  F.e. Lviv IT Arena is one of the largest cluster in Europe.

In 2017 we had the idea to launch a cluster model in the greenhouse business. Then we were supported by the European Bank for Reconstruction and Development. Together with my partners we started our first greenhouses of about 0,5 ha. We grew two crops  - cucumbers and lettuce. But later we switched entirely on cucumbers. During these years we obtaines our own experience, therefore, when I talk about a yield of 40 kilograms per square meter, these are not just words and theory, these are the results that we obtained in practice.

Regional specialization of greenhouse sector

A greenhouse is actually a living organism that constantly needs to be improved, modernized, and adapted to new conditions. Technologies are changing very quickly today — new solutions appear approximately every six months. These include artificial intelligence, automation, robotics, digital control systems, and so on.

Khmelnytskyi region, of course, is not the largest greenhouse region in Ukraine. Traditionally, Zakarpattya (in the West), Mykolaiv, Kherson, Odesa (in the South) are well known for their greenhouse production. Among the leaders, we can also name Cherkasy, Ternopil (Zalishchykiv), Chernivtsi region. But our idea has differnet aproach – our task today is not just to build commercial greenhouses, but to create technological greenhouse complexes that meet modern requirements and allow us to get a stable result. 

The regions like Zakarpattya, Ternopil, Chernivtsi have developed greenhouse production clusters, however we are focusing on “smart” greenhouses that will demonstrate in particular Dutch technologies, modern solutions and innovations. We will also focus on products with higher added value, novel crops etc. With this approach we can contribute to the further development of the sector not putting additional competition to already operational clusters.

Greenhouse innovation and professional education

In 2021 in the framework of EU funded project the training greenhouse of 600 m2 was put into operaiton in vocational school N 11in Khmelnytsky.  Then we realised that there is no educational standard for greenhouse production in Ukraine and there is a need in creation of the system of training of covered cultivation specialists. It took us two years to go through all the stages and actually “break through the wall”. As a result, we now have the first educational standard in Ukraine for training students in the specialization of “growing crops in protected soil” at the 11th vocational school.

This is a hydroponic greenhouse, and we are also building another one — a slightly different format. We would like to show students modern greenhouse technologies and materials, as well as different growing methods. So this first project encouraged us to move further.

We have also involved educational institutions in this process. Today, two universities cooperate with us - in Kamianets-Podilskyi and Khmelnytskyi, as well as two colleges.

Over the past four years, in the framework of our business-educational collaboration about 100 students completed the theoretical course and obtained applied knowledge of  greenhouse technologies. Therefore, we plan further develop the educational component not limiting it to universities or colleges, but also developing informal education through the so-called greenhouse innovation hubs.

Podillia Greenhouse Cluster

We united different business around our greenhouse cluster and now we have the following teams: berry growing, vegetable/mushroom production and floriculture. While talking about floriculture we discovered niche crop which can be potential for Ukraine - eatable flowers. So out team of researching not only production technology of these crops, but also sales and market strategy.

To better understand modern approaches to the greenhouse business, we studied the experience of different countries: we visited greenhouses in the USA, in particular in Silicon Valley, looked at technologies in Japan, the Netherlands, and China. We collected this experience, compared different approaches, and in 2024 we began to systematically formalize it into a separate structure — in fact, we began to institutionalize this direction.

We have identified for ourselves the so-called “hexagon” of countries that are a reference point in the development of modern greenhouse technologies. These are the Netherlands, Germany, Japan, Canada, the United Kingdom, and the United States. It is these countries that are currently shaping approaches to technological, efficient, and sustainable greenhouse production. We study their experience, analyze different models, and adapt the best solutions to Ukrainian conditions. And when we say “we,” we mean 40 participants who work and run their businesses in Khmelnytskyi region.

Plans for further development

We have a number of other projects. F.e. we got the financial support for construction of 48 small greenhouse complexes each ​​60–80 square meters, which are installed on the basis of schools.

We went further and began to develop the idea of ​​training future greenhouse specialists from school age. Through school enterprises, we want to show children the basics of the greenhouse business. We also learned the experience from USA and considering primary school training components of greenhouse food production for kids 4-5 years old.

What is relevant for us today is what is called European Innovation Ecosystems - regional innovation ecosystem of EU. Of course, it is not easy, it is not a fast business model like "Invest today, earn tomorrow". It takes several years for sure. However, it lays a solid foundation with which we want to work.

Key challenges of Ukrainian greenhouse sector

When we talk to greenhouse producers, they almost unanimously mention ENERGY as a core issue. When you understand and control the energy part of greenhouse business, keep energy costs within 20–25% of production cost, then your business is much more predictable. If the share for the energy in the production cost grows to 60–70%, the local greenhouse production lose competition to imported greenhouse produce. Ukrainian greenhouse sector with our blackouts, destruction of infrastructure and war force majeure have to compete on local Ukrainian market with products from other countries that do not have such problems.

Another challenge specified by the sector representatives is availability of TRAININGS and internships. Smart Harvest partially solves this issue through cooperation with universities and colleges.

The 3^rd challenge is marketing and promotion, not  just trading, but deeper comprehension of the market, sales and product positioning.

Gradually we listed 12 key challenges that a cluster or sector organization can render to its members.

We also see the role for our greenhouse cluster in helping to implement state support programs and, for example, veteran busines programs. For example when  veterans received state grants for greenhouses, they often did not fully understand the business model, lack knowledge and expertise. We believe that before launching large projects in the greenhouse business, people should undergo basic training and gain key practical skills.

Read more information on the project

Goedgekeurde projecten UPF | RVO.nl

Approved projects UPF | RVO.nl

Carolien Spaans visits Greenhouse innovation hub

Greenhouse Innovation Hub

Smart Harvest Ukraine construction site  at ART PAСK INDUSTRIAL

Ukraine-Netherlands cooperation expands hydroponic greenhouse projects in two regions

Project meeting Smart Harvest Ukraine