Comparing the Profitability of a Greenhouse to a Vertical Farm in Quebec

Rapidly growing demand for year‐round fresh food, regardless of the weather or climate, is driving demand for controlled environment agriculture systems. Sales from greenhouses (GHs) are growing at 8.8%, while sales from vertical farms (VFs) are growing at 30%. It is commonly believed in industry circles that a VF cannot economically compete with a GH, due to the high cost of powering artificial lighting. Nonetheless, researchers have yet to analyze the economics underlying a VF, let alone compare the profitability of a VF to that of a GH. This research gap is particularly relevant to Canada, as it is uniquely positioned to be a leader in the VF market. Below, we report the results of a detailed simulation of the profitability of growing lettuce in a VF and in a GH located near Quebec City. Surprisingly, we find that the costs to both equip and run the two facilities are very similar, while the gross profit is slightly higher for the VF.