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Países Bajos 09/09/2022

The price of gas is a threat to the greenhouse sector

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In the Netherlands, greenhouses have helped make the country a champion in agricultural exports. But this sector, worth around EUR 8 billion (USD 7.9 billion), has grown on cheap gas and now faces a huge price hike.
Since the invasion of Ukraine and Western sanctions against Russia, Russian gas supply has fallen and European prices have soared to 20 times their level of 1 year ago.
According to Glastuinbouw Nederland, an industry organization, up to 40% of its 3,000 members will experience financial hardship.
Some producers have decided to close during the winter season, others have decided to reduce the heated area, still others have decided to develop and strengthen the available alternatives (biomass, geothermal energy, solar energy, cogeneration, etc.).
This energy crisis means less volume produced and could cause, according to some analysts, the displacement of production to warmer countries. A step back, with Spain producing in winter and Northern European countries producing their own vegetables only in summer.
In the Netherlands, the greenhouse sector was able to develop thanks to natural gas from the Groningen field, which was the largest in Europe for decades until production decreased in the 2010s due to earthquakes of earth triggered by the extraction. Until recently, Dutch greenhouses consumed around 3 billion m3 of gas per year, around 8% of the national total.
source : euronews.com
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The price of gas will reduce the volume of out-of-season vegetables produced in the Netherlands and could cause production to shift to warmer countries (Photo: glastuinbouwnederland.nl).
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