Hydro costs force Kingsville greenhouse to expand outside Ontario

After operating in Kingsville for 45 years, owners at Mucci Farms are building a new greenhouse in Ohio, saying the cost of expanding in Ontario is just too high, particularly when it comes to hydro.

Mucci farms would prefer to expand operations in the region, but hydro costs are just too high

Bert Mucci, right, of Mucci Farms in Kingsville, is expanding its operation to Ohio because of rising hydro costs in Ontario. (Mucci Farms)

Greenhouse growers in Kingsville are choosing to expand operations outside of Canada because of rising hydro rates.

After operating in the region for 45 years, owners at Mucci Farms are building a new greenhouse in Ohio, saying the cost of being in Ontario is just too high.

Bert Mucci would prefer to expand his business in the region, but hydro rates continue to rise. Instead, the business will stay in the region, while building their new U.S. operation. 

"If we had competitive electricity rates, we would be doubling our production here," he said. 

As the winter months approach, greenhouse growers are firing up their lights, and that means hydro costs are about to become even more grim. 

"We are paying one of the highest rates in North America," Mucci said. "It's causing us to move out of Ontario right now." 

Mucci Farms has paid up to 18 cents per kilowatt, but the company can get hydro for 6 cents a kilowatt in Ohio.

"The only thing in Ohio that's making it the most effective is the electricity costs," he said. "We have the best of the best here."

Corrections

  • A previous version of this story stated Mucci Farms was located in Leamington and planned to move operations to Ohio.
    Nov 28, 2016 8:46 AM ET