Finnish greenhouse growers rely on subsidies for energy and investment costs

Finnish greenhouse vegetable producers would struggle without EU agricultural subsidies, according to both a major cooperative and the Ministry of Agriculture and Forestry, Yle reports.

The Närpiö Vegetable Cooperative, which markets cucumbers and tomatoes from around 40 member farms in western Finland, received €2.7 million in subsidies last year—the second-highest amount in the country. While the total sum appears large, CEO Tomas Lindfors notes it is divided among all members, reducing the per-farm impact.

“In one way or another, production in Finland depends on the support system, whether it’s field or greenhouse farming,” Lindfors said, pointing to last spring’s tomato glut in Europe, which drove prices below production costs. Yet he added that greenhouse cultivation has thrived in Närpiö for over a century, suggesting the sector could adapt if subsidies changed.

Martti Patjas, a senior official at the Ministry of Agriculture and Forestry, confirmed that while greenhouse farming operates under market conditions, subsidies remain critical for advancements like energy efficiency. Most support goes toward environmental and climate measures, as well as investment aid for modernizing energy systems.

Patjas clarified that direct production subsidies account for only about 5% of the sector’s total revenue, with the bulk coming from marketing support and development grants. No overhaul of the subsidy system is currently under consideration, he said, as the industry’s direction aligns with market demands.

Looking ahead, Lindfors cited potential challenges, including plans to use waste heat from new data centers for greenhouses—though Finland’s domestic market is already saturated. Labor shortages also pose concerns, despite high automation levels at facilities like Närpiö’s packing plant, which employs over 80 people year-round.

Finland currently meets nearly all its cucumber demand domestically but still imports a significant share of its tomatoes.