As consumers across Canada continue to face rising grocery costs, Ontario Greenhouse Vegetable Growers (OGVG) are addressing a growing misconception: that higher retail prices are translating into increased profits for farmers.

In fact, recent industry data shows that greenhouse growers of Ontario’s greenhouses producing tomatoes, cucumbers, and peppers have experienced a three per cent to six per cent decline in returns compared to the five-year average, even as production costs continue to rise sharply.

“Consumers are understandably concerned about the cost of food,” said Richard Lee, executive director, OGVG. “However, it is important to clarify that the price increases seen at the retail level are not reflected in what growers are receiving. The perception that farmers are benefiting is not accurate. In many cases, growers are receiving less today than they did several years ago, despite significantly higher costs to produce food.”



Ontario greenhouse vegetable growers are facing escalating costs across all areas of production, including:

• -  Fertilizer: significant price volatility and sustained increases
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• -  Transportation: higher freight rates and supply chain inefficiencies
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• -  Fuel: ongoing energy cost pressures
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• -  Labour: rising wages and workforce shortages
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• -  Energy: heating and electricity costs critical to greenhouse operations
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• -  Payment terms and rejection fees: increasing financial risk and cash flow challenges

“At the farm level, margins are tightening - not expanding,” added Lee. “Growers are committed to supplying safe, high-quality, locally grown produce, but the economic realities are becoming more challenging every year.”

These cumulative pressures continue to erode grower profitability, making it increasingly difficult to sustain operations and invest in future production.

Without sustainable returns at the farm level, Canada risks losing domestic food production capacity and becoming increasingly dependent on imported produce.

Source: Ontario Greenhouse Vegetable Growers June 9, 2026 news release