On the Verge of Survival: Greenhouse Growers Are Operating at a Loss Amid the Energy Crisis

22 June 2026, 06:01 808

The war and the energy shock have transformed Ukraine’s greenhouse business, but it remains a strategically important sector. Western regions are gradually forming new greenhouse hubs. Those who focus on the latest technologies are the ones surviving. With energy costs rising to 60–70%, domestically grown greenhouse vegetables and herbs are becoming uncompetitive. In such conditions, it is cheaper to import produce.

Energy blow

The key constraints for Ukraine’s greenhouse sector are the growing energy intensity of production, staff shortages, higher logistics costs and imports from Türkiye. These findings come from a survey of greenhouse farms commissioned by RVO, the Dutch government organization that supports business development.

«The energy crisis began long before the war and probably destroyed more greenhouses than the hostilities themselves. Transport and logistics costs have increased, while exports have fallen fourfold compared with 2021. Population migration and mobilization are also taking place. As a result, the greenhouse sector is experiencing a shortage of agronomists and engineers,» said Kateryna Volianska, an independent RVO consultant on protected cultivation, during the presentation of the Dutch study.

Another limiting factor for Ukraine’s greenhouse sector is the import of Turkish products, mainly cucumbers and tomatoes, which have been putting downward pressure on prices. Restrictions on imports from Türkiye are currently expected for a period of five years, which would create opportunities for the growth and development of the Ukrainian sector.

Another problem is access to training and technological knowledge in the industry.

Shift to the west

Since the beginning of the full-scale war, the sector has undergone a major regional transformation. The greenhouse sector has shifted from the east and south to the central and western regions. Chernivtsi, Kyiv, Ternopil, Zakarpattia and Vinnytsia regions are becoming dominant.

«Ukraine’s protected cultivation sector has shrunk under the impact of the war and energy pressure, but it remains strategically important,» the consultant added.

Energy costs in winter greenhouse production have risen to 60–75%, which is critically high as a share of production costs. Therefore, restoring the sector requires not only the reconstruction of destroyed facilities, but also a structural rethinking of energy use and resilience.

Kateryna Volianska, independent RVO consultant on protected cultivation

Energy costs now exceed the combined costs of labour, materials and logistics. In the winter cycle, it is energy that determines the profitability of production: the viability of winter production today is determined primarily by the cost of energy, not only by agronomic efficiency. The increase in prices is structural, not temporary. Gas prices are three to four times higher than before the war, while electricity prices have stabilized at a structurally higher level.

The price of greenhouse products is also affected by the volatility of the hryvnia exchange rate against the euro or the dollar, as greenhouse growers usually purchase growing materials in foreign currency but sell their products in Ukraine.

Two models within one sector

It is also important to take into account that Ukraine’s protected cultivation sector operates under two different development models.

The first model is industrial greenhouses, which are mostly high-tech facilities. The study covered 20–25 such enterprises with a total area of 270–290 hectares.
The second model consists of small and medium-sized producers with a total area of around 4,000–7,000 hectares. The wide difference in area is explained by the fact that not all producers are properly registered. These are mostly low-tech or mid-tech greenhouses, whose development is often supported by grant programmes. They are highly price-sensitive and require comprehensive support, especially in technology and training.

The future development of the greenhouse sector will mainly take place through the modernization and renewal of existing facilities.

Kateryna Volianska, independent RVO consultant on protected cultivation

Large-scale construction of new greenhouse complexes covering several dozen hectares is not expected, as it requires major investment, while the risks of war-related damage, energy costs and staff shortages remain significant. It is important that the sector needs a segmented approach to development. A single universal strategy will not be effective.

At the same time, facilities of up to one hectare are currently developing actively. Film-covered and tunnel greenhouses are relevant, as they require lower investment and are easier for people to understand and operate.

European integration and organic production

The greenhouse sector is the most prepared for European integration. Many greenhouse growers have already obtained GAP certification and are able to export their products.

As for organic products, they will not be a key focus for hi-tech greenhouses, as these mostly use hydroponics.

«A dual segmented market will operate, with high-tech facilities growing fairly high-quality produce, as well as a mid-tech and low-tech market where organic production is possible,» the expert explained.

Shortage of seedling departments

According to the authors of the study, Ukrainian greenhouses primarily need modernization and technological upgrading: energy equipment, climate control systems, post-harvest handling equipment and packaging lines, as packaging is currently mostly done manually.

There is a very strong need for seedling departments at greenhouses or within seedling department hubs.

Under current conditions in Ukraine, demonstration projects are also needed, as they can help reduce investment risks. With their help, farmers can see how a particular technology is used and easily adapt it to their own enterprises.

Demonstration greenhouses that will be able to receive up to 100 visitors at a time are currently being built in Lviv and Khmelnytskyi.

Oleh Demchuk, co-founder of the SmartHarvest Greenhouse Innovation Hub

A greenhouse, like a living organism, needs constant improvement: the world of technology is now changing every six months. The demonstration greenhouses will be modular and produced using 3D printers. These will be the first training centres of their kind in Ukraine. In these centres, we want to showcase not only Dutch technologies, but also German, Canadian and Japanese ones, ranging from energy efficiency to various types of prototyping.

A single voice and legislative barriers

Among other things, the sector lacks a strong producers’ association.

«This sector appears to be functioning, but it has no single voice. Producers should be consolidated. This would help exchange knowledge, coordinate training, represent the interests of the sector and cooperate with suppliers and government institutions,» Kateryna Volianska noted.

A significant obstacle to business development is the absence of a legal definition of a modular greenhouse, which is a temporary structure and, in practice, does not require construction permits. In Zakarpattia, there are villages with thousands of hectares of such modular greenhouses. The requirement to obtain a construction permit could wipe out this business.

Edible flowers and other promising products

Cucumbers and tomatoes remain the most promising greenhouse products, as domestic market needs have not yet been fully met.

Ukrainian greenhouse growers currently harvest 20–30 kg/m² of cucumbers, although the basic yield indicators are 40–60 kg/m². Dutch technologies make it possible to obtain up to 100 kg/m². To achieve more than 60 kg/m², a well-coordinated team, high technologies and an uninterrupted electricity supply are required.

At the Zdorovo-Smachno farm in Sumy region, cucumber yields reach 37 kg/m².

Inna Pashchenko, Head of the Zdorovo-Smachno farm

We started with a small but automated greenhouse with drip irrigation. We installed a new industrial greenhouse with roof and side ventilation. However, soil has the primary impact on the taste and quality of the products. We established warm beds, and the soil is steamed. The year was very productive — 37 kg/m² with an extended growing season. Seedlings were planted in March; early cucumbers were sold fresh, summer cucumbers were used for sauces, and overall the cucumbers bore fruit until November.