Increased production of fresh vegetables in Canada has not made it to Canadian consumers, according to a report from Farm Credit Canada (FCC).
The report states production of fresh vegetables rose 6.4 per cent in 2025, though domestic availability (excluding potatoes) fell for a seventh consecutive year.
Why it matters
Ontario dominates greenhouse production at more than 70 per cent of national output. Almost all greenhouse exports head south, meaning provincial growers carry the risk if the U.S. market tightens.
“This raises an important question,” the report says. As Canada expands its greenhouse sector, is production growth strengthening domestic food availability or simply reinforcing Canada’s role in North American supply chains?
Exports have absorbed the growth
It goes on to state Canada’s fresh vegetable imports have stayed relatively stable at roughly $2 billion annually, while greenhouse vegetable exports have increased from around $1.6 billion in 2020 to more than $2.3 billion in 2025. Almost all greenhouse exports are destined for the United States.
The report says exports should not be viewed simply as products diverted away from Canadian consumers, as the market typically follows a seasonal pattern, with greenhouse vegetable exports staying low during the winter months before increasing in the spring and summer as field-grown produce can supply the market.
“At the same time, farm-gate prices … for greenhouse tomatoes and peppers often exceed those received by field producers, creating additional incentives to access nearby U.S. markets,” the report reads.
Greenhouse production is on the rise in Canada and one of the fastest-growing sectors of Canadian agriculture, according to FCC.
Most recently, the government pledged an investment of $750 million over seven years toward indoor vegetable growing.
The report concludes by stating the Canadian greenhouse sector’s integration into the North American supply chain has provided opportunities, but close integration with the U.S. market also means risk.
“Ultimately, the sector’s long-term success will depend less on growing more vegetables and more on securing profitable demand, managing labour and energy costs, and remaining competitive with other North American producers.”
Representatives from the Ontario Greenhouse Vegetable Growers and Fruit and Vegetable Growers of Canada did not respond to written requests for comment on the FCC report.
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