2. Corporate Statement
The Greenhouse Service Network International has been established from the
Netherlands, the cradle of the greenhouse technology and experience, to bring in all
eastern European and former USSR countries this appraisement and knowledge to the
market.
The company intend, with a focus in particular on former Yugoslavia, Moldova and Ukraine, Georgia
and other new republics, to establish in each country in the Region a centre of excellence,
information and advisory to support local initiatives to improve or create greenhouses for all type of
horticulture production. This should help the countries to balance import and domestic production.
We offer at local level top experts with regional experience to develop this local Greenhouse Service
Network branches into transfer points for entrepreneurs, governments and companies regarding
greenhouse business. We are in the position to offer scholarships for students and cooperation with
local educational institutions to improve the education. The headquarter and brain box for these
service centres will be in The Netherlands. From Holland we will transfer the knowledge to the
different centres. But we also want to connect the centres together. So in different countries we will
build up and make available experience and information for wider dissemination.
The network will closely cooperate with the Breath Foundation to provide training and internship in
greenhouse projects for pupils from Breath centres in the respective countries.
Nico de Borst
Peter de Vreede
Rotterdam, September 2015
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3. THE FORMAT OF A CENTRE
Each centre should have sufficient room for 4 staff and rooms for seminars and training were a group
of 20 persons could be facilitated including a small kitchen and communication equipment. The office
should be contracted and equipped for operational purposes located on a suitable place with
possibility for parking and easy accessible with public transport.
The set up of such centre takes approximately 6 months including all legal steps and facility
provisions, selection of first staff (max 2), basic training and instruction and inventory of present
demands for greenhouse projects in the country. The Dutch office with 3 experienced senior business
developers will be responsible for development and realisation.
For these costs of development and start up we have to search for grants or support in the country
and also the first years a back up financing is necessary to guarantee the successful implementation
and operational capability to serve the country. If started in 2015 our assessment is that ultimate
2017 these conditions should be fulfilled thereafter the centre should earn its own money from
commercial assignments like financial services, training and business advisory. We assume that the
role from Dutch seniors could be changed from direct involvement into supervision and guidance.
The centre should also serve Dutch business and companies, active in the greenhouse sector, and
provide to them necessary assistance at a commercial fee.
A mutual effort will benefit the whole development of this horticulture sector in the country.
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4. SHORT BACKGROUND
Many countries in former USSR and Eastern Europe went in the past 25 years through an intensive
transition in the economy that influenced dramatically the primer production sector (agriculture) and
the retail sector. Both collapsed after the decision to change to market economy.
The era before there were many existing greenhouse companies in all that countries as well for
vegetables as for flowers and plants. Base culture was to produce on your own small piece of land
near your house or at the dacha. The greenhouses were mainly built for and near big cities, to provide
the products to the shops and urban population, hotels and restaurants. The latest investments in
that business date from the mid 1980’s.
After the ideological change, no new complexes were built and no renovation or innovation took
place or incidental. In the late 1990’s the international retail chains arrived in the market and rapidly
build their networks and coverage in the countries. Also local chains appeared in the first decade of
the 21st
century and gained position with the support of local authorities. All of them face at present
the same problem: how to get fresh products on the shelves?
So import and illegal import increased enormously to feed all this demanding supermarkets. The
result was that big quantities of dump and bulk product of low quality entered the markets and
appeared on high prices in the super and hyper markets. People complained without success. Almost
now new investments were done in the greenhouse production sector and year after year small
producers went bankrupt, due to problems getting finance, production being non-profitable and the
technology outdated.
This is still the current situation, but now business people understand that it is commercially
interesting and complies with the market demand of consumers to create year round fresh
production. Also important is producing close to the market, increasing the shelf-time of the products,
producing on an ecologic and healthy base, controllable locally and at a high standard. Fresh and
safe food! Unfortunately a lot of the knowhow was lost and knowledge missed the latest
developments in the greenhouse sector. How to turn the wheel?
The Greenhouse Service Network International should provide answers were locally not sufficient
knowledge and information is available. They should operate as matchmakers, as intermediary for
technology, transfer point of knowhow locally and internationally and be a smart engine for local
initiatives. Learned lessons from the transition period in neighbouring countries made clear that just
building greenhouses will be no guarantee for successful production and business. Therefor GSNI will
support, monitor and organise international back up for existing and newly to establish greenhouse
projects. More specific elements but not exclusive are mentioned in the service offer below.
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5. THE SERVICE OFFER
• documentation and information library facility;
• advisory and support for business case development;
• professional assessment of business plans;
• study visits to the Netherlands for professional acknowledgment;
• assessment of investment plans and search for co-investment and financing;
• training and education of staff, locally and abroad;
• assistance in market research and sales;
• learning schemes for greenhouse management;
• support in financial management;
• transfer knowhow on packaging and branding;
• transfer know how on distribution and logistics;
• for foreign companies’ country background information;
• local guidance, translation, guidance and other facilitating services;
• matchmaking or business contact via organisation of seminars, excursions;
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6. THE PROJECTS PROCESS LINE
Concerning the process of delivering of services GSNI follows a precise line of operation and project
process. Each project step will be descripting as a milestone and after completion of each milestone a
go-no go decision should be made before moving to the next stage. Roughly the following milestones
are in place:
1. Demand from a local entrepreneur/investor is received by GSNI and will followed up with a
first inquiry via internet or at location;
2. On the basis of the first inquiry a proposal will be made for the next steps, including a budget
proposal. Depending the local situation (government subsidy) 100% or less, in case of
subsidy, should be paid by the local party for a visit to the planned location and interviews
with all persons/parties involved.
3. GSNI will send a more detailed inquiry based on the outcomes of 1 and 2. After completion
of that format a development plan will be supplied to the initiator(s) to be agreed upon. A
go-no go first decision to continue or not.
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7. 4. In case of a go decision the second milestone will be the production and delivery of a
business- and investment plan suitable to present to co-investors or banks. That process will
take some time as experience learns that at least 6 months are necessary to receive answers
on the financial applications and discussions with financers.
5. The next milestone is the answer from the financials on the business plan and again a go-no-
go is actual if the answer is no and question is to make a new attempt, or change the
approach or redraft the business plan. Also possible to the initiator to stop further attempts
and make no more costs.
6. If a positive answer has been received from financer’s next stage is the tender for suppliers
and construction company, guidance and support to the new greenhouse enterprise during
this process, final allotment and the building process itself.
7. Meanwhile training program will start, first with selection of basic staff and eventually
internship in the Netherlands, start up of the management organisation and preparing for
marketing and sales, networking, distribution and logistics.
8. For the start up (2-3 years) a Dutch grower will manage the production and GSNI will act in a
supervisory role to support the greenhouse project.
BUDGET PROPOSITION
(To be specified separately)
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8. Nico de Borst, director De Borst International B.V.
Peter de Vreede, senior business consultant
De Borst International B.V.
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9. Hoofdweg 336
2908 LC Capelle aan den IJssel
The Netherlands
T: +31104514563
M: +31653642594
InHolland
Mr. Sjoerd Nieboer
Rotterdamseweg 141
Faculty of Horticulture & Agribusiness
2628 AL Delft
The Netherlands
9
10. Hoofdweg 336
2908 LC Capelle aan den IJssel
The Netherlands
T: +31104514563
M: +31653642594
InHolland
Mr. Sjoerd Nieboer
Rotterdamseweg 141
Faculty of Horticulture & Agribusiness
2628 AL Delft
The Netherlands
9
