HAMBURG, Germany -- Dutch horticultural suppliers are shifting from exporting complete greenhouses to China, where the industry has advanced in these constructions, to focusing on advanced technology, proprietary software and system integration -- areas where they still hold an edge.

Dutch companies have long dominated the global market for premium-crop systems that can grow cherry tomatoes to orchids. With limited land and a high population density, the Netherlands is at the forefront of greenhouse construction.

China faces a similar pressure to produce more with less: it feeds roughly 20% of the world's population, but only 10% of its land is arable.

Chinese farming companies have turned to the Dutch to build growing systems that they can control. The benefits are clear. In high-tech greenhouses, tomato yields can rise from about 15 kilograms per square meter to 80 to 90 kg. Water use also falls sharply because it can be recycled, particularly useful in arid places like western China and Inner Mongolia.

Demand is also driven by Chinese consumers who view produce grown in these kinds of environment as safer because of the controlled conditions, which means that they tend to be farmed without chemicals and in clean substrates rather than potentially polluted soil.

While the Chinese agricultural sector has matured and companies can now make or replicate many greenhouse components, the Dutch still hold an edge in integrating them into reliable, commercially viable production systems. "This is where international companies and research organizations can still bring value through proprietary algorithms, specialized equipment, system integration, production know-how, intellectual property and long-term technical expertise," said Patricia Mathabe, senior lecturer in agricultural technology at Britain's Royal Agricultural University.

Mathabe said the Dutch advantage lies not in any single technology, but in the ability to connect horticultural science, data and engineering with growers, research institutions and government support.

This is the approach taken by agricultural engineering company Ridder. The third-generation Dutch family business produces ventilation and screening drives, along with climate-control, water-management and labor-management systems.

After years of exporting to China, it is expanding a production facility in Pudong, Shanghai, where it will assemble lower-tech hardware such as control panels and irrigation units. But core research, high-tech software and intellectual property will remain in the Netherlands, and this part of its business is the most valuable. "While locally produced hardware is easier to copy, it is ineffective without the proprietary Dutch software," said Joep van den Bosch, managing director of Ridder China.

China accounts for nearly 10% of Ridder's 80 million euros ($89.6 million) in global revenue, and the company expects that share to more than double within five years.

Another company, Van der Hoeven, has followed a similar path. The company no longer ships commodities such as steel, aluminum, glass, PVC and heating pipes to China. Instead, a joint venture manufactures simpler components locally at comparable quality and lower cost. The Dutch business concentrates on higher-value system integration, including screening and climate computers.

Bas Duijvestijn, Van der Hoeven's chief commercial officer, said that Chinese entities can copy the hardware but for now, still require Dutch expertise to make it all work.

"Chinese buyers import Dutch tech, then shift to local solutions believing they can self-supply, which was then followed by performance gaps that trigger renewed imports," he said. "This cycle reflects a balance between cost, capability and reliability perceptions." Van der Hoeven expects to remain competitive over the next five years, although high capital costs and economic weakness make its systems harder to sell, he said.

The market is indeed already crowded. At least 50 Dutch horticultural technology companies operate in China, spanning greenhouse construction and optimization, seeds and breeding, and orchid cultivation, according to Gert Dral of Dutch Greenhouse Delta. They compete not only with Chinese companies but also with international suppliers, particularly those from Israel, France and Spain. "A major challenge is a public procurement regulation requiring 80% of project work to be done locally to be eligible for certain subsidies, prioritizing local companies and compelling foreign firms to find local partners or establish local subsidiaries to participate," Dral said.

At the same time, China is building its own expertise, partly through sending students to Wageningen University, the Netherlands' leading life sciences institution.

Liu Zhen, program manager at Wageningen Academy, estimated that about 500 Chinese students are enrolled in the university's specialized agri-food and environmental programs, with other Asians making up roughly three times that size. She sees Asian universities as catching up academically but with transfer gaps.

"In the Netherlands, fundamental research by universities and applied research by Wageningen Research drive technology push, while strong industry engagement creates market pull," Liu explained. "By contrast, in China, the tech push is present, but the market pull is weaker. Without close industry links, research topics can misalign with real challenges, reducing efficiency and relevance from the start." Jens Kastner is a contributing writer.