Rising Grocery Prices Are Not Benefiting Ontario Greenhouse Vegetable Growers

Greenhouse sector data shows declining returns for farmers despite increasing retail costs.

FOR IMMEDIATE RELEASE

Leamington, ON – June 9th, 2026 - 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 3% to 6% 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

• Transportation: Higher freight rates and supply chain inefficiencies

• Fuel: Ongoing energy cost pressures

• Labour: Rising wages and workforce shortages

• Energy: Heating and electricity costs critical to greenhouse operations

• Payment terms & rejection fees: Increasing financial risk and cash flow challenges

“At the farm level, margins are tightening - not expanding,” added Richard 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.

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About Ontario Greenhouse Vegetable Growers

Ontario’s greenhouse vegetable sector is a global leader in controlled environment agriculture, producing fresh tomatoes, cucumbers, peppers, and other vegetables throughout the year. The industry supports tens of thousands of jobs and is a cornerstone of Ontario’s agri-food economy.

Media Contact:

Richard Lee 

Executive Director 

Ontario Greenhouse Vegetable Growers 

519-326-2604 

lee@ontariogreenhouse.com