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Cultivating Hydroponic Lettuce to Conserve Water:
HydroNov and the World Bank in China
China is using hydroponic technology developed in Quebec to deal with its growing water scarcity. In many areas, the country's increasing demand for water for agriculture, industry and municipalities can no longer be met through the construction of additional hydraulic infrastructure such as reservoirs. HydroNov Inc. of Mirabel, Quebec, has introduced its hydroponic growing systems to China as part of the Word Bank-funded Water Conservation Project, which is aimed at enhancing agriculture productive capacity and farmers' incomes by increasing yields.
The concept of soilless gardening has been around for thousands of years. The hanging Gardens of Babylon and the Floating Gardens of China are two of the earliest examples of hydroponics. With a population of more than 1.3 billion and a shortage of arable land, China can make great use of HydroNov's Floating Rafts growing technology, a water-conserving system originally developed at the University of Arizona in the late 1970s. This system produces leafy vegetables at four times the rate of traditional soil-based methods.
Reducing water loss in irrigation
A major component of the World Bank's Water Conservation Project for China is the creation of mechanisms for the sustainable management of water resources, including in irrigated areas. "Our advanced technology restricts water consumption strictly to the needs of the plant, avoiding waste caused by evaporation and overirrigating," explains HydroNov President Luc Desrochers.
HydroNov's business strategy in developing countries such as China usually involves the creation of joint ventures. "We invest a lot of energy in establishing relationships with our partner-clients," says Desrochers. "They provide funds and identify potential clients and other key players, while HydroNov supplies technology transfer and administrative and training expertise." In China, where HydroNov has two joint venture companies, the firm's partners are hired by government agencies, who in turn are contracted by the World Bank.
Asia's most advanced hydroponic lettuce grower
HydroNov's greenhouse operation in Shanghai, Evergreen Vegetables Co. Ltd., produces primarily butterhead lettuce, which is selling extremely well in major Chinese superstores such as Carrefour, Metro, Nong Gong Shang, Hymall, Century Lianhua, RT-Mart and Auchant. Evergreen has also built 75,000 square metres of greenhouses in the cities of Dalian, Beijing, Shenzhen and Shenyang, which produce vast quantities of fresh vegetables without the danger of E. coli commonly found in fields irrigated with sewage. The most advanced grower of hydroponic lettuce in Asia, Evergreen expects that its market share in Shanghai will reach 80 percent before the 2010 World Exposition opens in that city. Future plans include introducing hydroponic technology into inland regions of China.
Support from government services
Over the years, HydroNov has been supported by Export Development Canada (EDC) and the Canadian Trade Commissioner Service in China. The Canadian International Development Agency's Industrial Cooperation Program has also played a key role in evaluating the firm's projects and providing human resources training. Desrochers sees such assistance as one of the steps to establishing a solid business base. "You cannot rely solely on government support, but it is valuable as part of a larger strategy," he says.
Two of the company's partnership agreements in China were sealed during the 2001 Team Canada trade mission. "We had been negotiating with both of these clients for several years," says Desrochers. "The Chinese place a very high value on the backing of government, so the trade mission provided the perfect forum for formalizing and signing the contracts."
Valuable pointers
For companies contemplating the Chinese market, Desrochers offers some advice: "Your first priority should be to make sure you have an affinity for this culture. Otherwise, because business and cultural practices are so different from Western ways, everything will look complicated and negative. Your second priority is to be able to count on competent local people who can build the bridge between the two cultures. Last but not least, you should be prepared to adapt your goals and methods to local realities."
HydroNov, which also exports its expertise to Japan, Mexico and the United States, is currently examining potential projects in France, Russia and Slovakia.
For more information, contact:
International Financing Division
International Trade Canada
Tel.: (613) 995-7251
E-mail: ifinet@international.gc.ca
or
Mr. Luc Desrochers, President
HydroNov Inc.
Tel.: (450) 475-7546
E-mail: luc@hydronov.com
Internet: www.hydronov.com
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