Asia seeks knowledge to modernize horticulture

'Passion' embodies our unlimited commitment to crops, people, and technology, driving innovation across the horticulture sector. Building on the enduring importance of personal touch, GreenTech is excited to strengthen connections and unveil new initiatives designed to inspire growth and collaboration within the industry. In a series of articles, the passion within horticulture worldwide will be highlighted from different angles. This time, we focus on the horticultural developments in Asia and the opportunities for companies from abroad.

Asia is not only the largest continent in the world in terms of area, but with 3.97 billion inhabitants it also accommodates no less than 61% of the total world population. That also means that a lot of people need to be fed. Currently, a lot of food is still imported, but in the future, Asian countries want to produce more and more themselves to be self-sufficient. To achieve this, the help from companies with the right expertise is necessary. It offers opportunities for specialists from established or well-developed horticultural countries, such as the Netherlands.

In recent years, China has increasingly opted to become self-sufficient. Modernization of horticulture in that country is a requirement for this, says Gert Dral. He is Director China at Dutch Greenhouse Delta (DGD), an international platform representing the entire ecosystem of horticultural expertise from the Netherlands. “In China, this modernization has been imposed on local governments and companies in a five-year plan. The government wants higher revenues to be generated. That is a favorable factor for foreign companies. However, local authorities are limited in their financial options. They don't have enough money to participate in these projects. In addition, there is increasing pressure from the government for local parties to start initiatives themselves or at least be involved in projects. China is capable of a lot these days, but certain core competencies are still missing to really make horticultural projects a success.”

Education, training and guidance

According to Dral, foreign companies should no longer have the idea that they can 'just build a greenhouse' in China, and then leave again. “They can play an important role in the process management to make a project a success, but only by working more closely with Chinese companies. It is important that these projects are followed up with education, training and guidance, either on location or remotely. It’s the only way to really help China and continue to play a significant role as foreign companies in the future.”

Dutch Greenhouse Delta has been running a so-called PIB program (Partners for International Business) in China for the past four years. This included setting up a 'knowledge to knowledge' module to promote Dutch horticulture. “We try to use our knowledge and expertise in the right way with webinars and on-site training, and the response to this has been very positive. China realizes that the Netherlands is a top country in the field of horticulture and there is a lot of need for knowledge.”

Energy and robotization

Dral points out some themes that are 'hot' in China, such as energy. “What is the most suitable energy supply for every situation? The development of geothermal energy, solar energy and nuclear energy is happening very quickly here. But biodiversity is also receiving increasing attention and interest in automation, robotization and AI is also growing rapidly.” According to Dral, automation is desperately needed, as it is difficult to interest enough people in working in horticulture. “Robots and AI can take over certain tasks at companies, but they also make horticulture in China more attractive to young people.”

Mirjam Boekestijn is CEO at Dutch Greenhouse Delta. In addition to Gert Dral's story, she sheds light on Southeast Asia. “In this part of Asia you see more and more large cities emerging, such as Ho Chi Minh City, Jakarta, Kuala Lumpur and Bangkok. There is also a middle class that demands healthy and, above all, safe food. They want products with sufficient nutrients and without pesticides. You see that the retail sector is increasingly focusing on this and that this development requires modernization of horticulture.”

An important horticultural country in this region is Vietnam. The country has its own large production area where flowers and plants are mainly grown, but also vegetables. “These vegetables are mainly grown in foil greenhouses, but there is a movement towards cultivation on substrate. Entrepreneurs are aware that you lose a lot of fertilizer with irrigation in open fields. That is why people are increasingly opting for closed water systems,” says Boekestijn, who indicates that the differences between countries in Southeast Asia can be large. “But areas in the countries themselves also have to deal with varying circumstances. One area is low based and has to deal with high temperatures and humidity, while other places are higher and have a slightly more favorable climate for growing. This requires customization to successfully produce products.”

High-quality nutrition

According to Boekestijn, food security and food safety are high on the agenda in Southeast Asia. This offers opportunities in the areas of seed breeding, crop protection, substrate, water and climate systems, but also for larger turnkey projects in the future. It will develop step by step. “There is a great need for new vegetable varieties and biological crop protection. However, legislation and long procedures make it difficult to import these products. So, there are still some challenges.” Boekestijn also sees a shift from products such as rice and corn to more high-quality food products. “We inform growers about the advantages of protected horticulture compared to growing in the open field. The climate and weather conditions can be managed better in a greenhouse, resulting in higher yields and better quality. But you also have less impact on the environment, because the use of water and resources can be significantly reduced. We exchange knowledge about this through webinars, at trade fairs and during company visits and tell what Dutch companies have to offer to take the next steps.”

Boekestijn sees opportunities for foreign companies, such as in Vietnam. “There is less protectionism in Southeast Asia compared to China. Vietnam for example is seriously seeking cooperation.” The development of horticulture in these countries is less advanced than in China and the projects are somewhat smaller, Boekestijn indicates. “There are still many small family businesses and small plots of land owned by different owners. That makes it difficult to achieve real scale increases and further professionalization. But by working together with the embassies, contributing to local initiatives and appealing to governments, we try to play a role in this. Because Southeast Asia has a lot of potential.” 

Japan's export potential

Japan is also a country with opportunities, says Frederik Vossenaar. He is an advisor within Dutch Greenhouse Delta and knows the country well. “The aging population is high in Japan, which is causing rural exodus. To keep the countryside vital, local authorities mainly see a solution in horticulture. Many vegetables are still imported now, but Japan has an incredibly good reputation in terms of food safety. In many surrounding countries there is also export potential if production in Japan would increase.”

Japan is an island surrounded by North Korea, Russia, China and Taiwan, countries with political tension. This has increased awareness of how dependent the country currently is on imports, says Vossenaar. “Increasing production in Japan is therefore an attractive idea. And the possibilities are there. In recent years, steps have been taken to facilitate local production. In the past, nothing was ever possible in Japan, but now it is easier to combine pieces of land and it is also allowed for external companies to invest in Japanese horticulture. Some Dutch greenhouse complexes have already been built and people understand that collaboration can move the country forward.”

In order to take that next step, there is a great need for knowledge. “It's not so much about building that greenhouse or about technology. Japan itself is also highly developed in terms of technology. It's more about how you can properly manage the greenhouse and the technology to get the most out of it. With our experience to connecting parties and setting up production chains, we can also help.” An important moment is the Expo Osaka, which starts in April. Stimulated by the success of the Expo in Dubai, the Netherlands is participating again. “As DGD we are responsible for the horticultural part of the exhibition. That could possibly be the kick-off for follow-up projects after the Expo.”

WHC in China and South Korea

World Horti Center (WHC) is the knowledge and innovation center for the international greenhouse horticulture sector, based in the Netherlands. It’s a place where entrepreneurs, education, research and government innovate, connect, inspire and share knowledge together. All these organizations work on solutions for relevant social themes such as water, food supply, food safety, well-being and sustainability. “Every year, around 40,000 visitors from all over the world come to WHC to be inspired by the knowledge and innovation offered by Dutch companies. World Horti Center with its physical location inspires other countries to create a similar center in their own country”, says Lenny Dijkshoorn. As International Affairs Manager at WHC, she is in contact with interested parties. “We also see that the challenges in many countries are often the same: each country is looking for ways to modernize their horticultural sector and have a need for self-sufficiency. However, the circumstances in which you can do this and how their market currently is organized is different.” 

“Our ambition is to create physical local hubs in other countries to make the Dutch horti business community visible and to connect the local ecosystem in the respective country with our Dutch horticultural ecosystem.” 

The Netherlands is worldwide known for its open and innovative horticultural ecosystem. By strengthening the cooperation between Dutch and Chinese (and also other country eco-systems) sectors, World Horti Center wants to achieve three important goals: matchmaking between companies, creating business opportunities and stimulate growth of both markets; promotion of the horticultural sector, by organizing local events, training and knowledge sharing sessions; talent development, attract and connect talent for a sustainable future in horticulture.

Local WHC hubs have now been opened in South Korea and China. The local World Horti Centers are currently smaller than in the Netherlands. “They only have an exhibition area or a demo center, but from there we can continue to grow in the,” says Dijkshoorn. “In Asia we have noticed that you can only be successful if you have a good relationship with both government and the business community., then there is a basis for cooperation.”

Exchanges

WHC China has just been opened, and so far, they have received a lot of requests for training, and during the opening a matchmaking event was organized. South Korea has facilitated multiple student exchanges, trainings and field trips. “Another advantage for a local hub is that a broader group of horticultural entrepreneurs and or employees can get the opportunity to visit and connect with WHC as not everyone has the opportunity to come to the Netherlands.”