HydroNov Inc., incorporated in 1995, is a subsidiary of Montreal-based HydroSerre Mirabel Inc., a world leader in greenhouse lettuce production using its unique Floating Rafts Growing Technology. This hydroponics technology - hydroponics meaning growing without soil - is among the most water-conserving of such systems (the same water is used for every harvest; new nutrients are simply added to the existing water) and requires no herbicides or fungicides. The system produces lettuce and other leafy vegetables at four times the capacity of traditional soil-based technologies.

HydroSerre itself was formed in 1987 by Desrochers, who adapted for commercial production the Floating Rafts hydroponics system, the concept for which was developed at the University of Arizona in the late 1970s.

Starting in 1983, HydroSerre spent five years in research and development to adapt the technology for commercial use, assisted by a grant from Agriculture and Agri-food Canada. HydroNov is now doing $7 million in annual sales and currently exports to the United States (Florida) and China. Through its network of agents, the company is also actively working on potential projects in Japan, the Philippines, Mexico, France, and the Middle East.

Hydroponics boasts high output

It's no surprise that China, with its more than 1.3 billion people and shortage of arable land, would be attracted to a system with such a high output.

HydroNov's introduction to the Chinese market goes back to 1997, when it was invited by fellow Canadian company Delta Management Inc., to meet prospective partners in Guangzhou and Shenzhen. The resulting joint ventures were the Shenzhen Evergreen Vegetable Co. Ltd. (1998) and the China-Beijing Evergreen Vegetable Co. Ltd. (1999).

As of February's Team Canada mission, those joint ventures - with Canadian partner Asia Greenhouse Ltd. - also include the Shanghai Evergreen Vegetable Co. Ltd. and the Dalian Hualu Vegetable Co. Ltd. Both projects involve the delivery and construction of a modern greenhouse production complex of 14,000 m², for the production of Butterhead lettuce and a selection of Asian vegetables.

"We had been in negotiations with these two clients for several years. The Chinese place a very high value on the backing of government, and so the mission provided the perfect forum for formalizing and signing the contracts," says Desrochers, whose Dalian client joined him at the Prime Minister's Banquet at the Great Hall of the People in Beijing.

Extra exposure

The Prime Ministerial tour of the China-Beijing Evergreen Vegetable Co. Ltd. brought the company extra-special exposure. "It was an honour to receive the Prime Minister and the premiers at our humble agricultural project in the Chinese countryside," says Desrochers.

Also joining the tour were officials, including the Mayor and Agriculture Vice Mayor, of the Shunyi District Government, which supports the project financially. Says Desrochers: "Our Chinese partners were thankful for the opportunity to talk with Canadian officials, and to have Chinese officials witness such a high-profile visit." He adds, laughing, "Our partners realized only when our visitors arrived that we really were receiving the Canadian Prime Minister; that's how much of an honour it was for them."

HydroNov also gained exposure from other mission events, including two networking events organized by the Quebec government under the Team Canada umbrella. "These kinds of events have given us increased credibility with our existing Chinese customers and partners and aroused interest from new potential customers," explains Desrochers, now in negotiations with two of the more than 20 prospective partners who contacted him during the mission.

Assistance part of strategy

HydroNov is no stranger to the benefits of government cooperation - or high-profile visits. In Spring 2000, Agriculture and Agri-Food Canada Minister Lyle Vanclief and Canadian Ambassador to China Howard Balloch were present at the official opening of the China-Beijing Evergreen Vegetable Co. Ltd.

Over the years, the company has received venture capital funds from the Quebec Federation of Labour's Solidarity Fund and from the Fond Agro-Forestier in 1995; financial assistance from the Canadian International Development Agency's Industrial Program (CIDA-INC) for feasibility studies and/or employee training in China in 1999, 2000 and 2001; export insurance from the Export Development Corporation (EDC) for the Shanghai project; and information and contacts from the Canadian Embassy in Beijing and Consulates in Shanghai, Guangzhou and Hong Kong. The company has also participated in the Canadian booths of half a dozen trade shows in China over the last few years.

Desrochers sees such assistance as one of the steps to establishing a business base. "You cannot rely solely on government assistance, but it is valuable as part of a larger strategy."

Affinity for market important

The successful Montreal businessman has three important pieces of advice for companies contemplating the Chinese market. "Your first priority should be to make sure you have some affinity for this culture, to have a positive feeling for it. Otherwise, because business and cultural practices are so different from the Western ways, everything will look complicated and negative. Second is to be able to count on competent local people who can build the bridge between the two cultures. And third is to be ready to go out of your way to adapt your goals and methods to local reality."

It is advice well worth taking, from a man whose hydroponics technology company is giving the Chinese people vegetable harvests like they've never seen before.

For more information, contact:

Luc Desrochers
President
Tel.: (450) 475-7546
Fax: (450) 475-7501
E-mail: info@hydronov.com
Web site: www.hydronov.com