Diamond FMS

Investing in new LED lighting for extra cucumbers

The case and the problem

A farmer is considering investing in LED lighting for his greenhouse. The goal is to achieve a consistent, high-quality cucumber harvest year-round. LED lighting offers a more sustainable alternative to seasonal production and can significantly increase the number of cucumbers produced per square meter.

The investment is substantial:


LED lighting: €60 per square meter, which for a 4-hectare greenhouse amounts to €2.4 million.

Automation: €1.5 million extra.


Total cost: €3.9 million.

The entrepreneur doubts whether this investment is financially sound. There is uncertainty about the impact on production costs, the sales price, and the ultimate profit. Furthermore, rising electricity costs and the dependence on market prices must be taken into account.


What went wrong?


  1. Lack of insight into cost price and margin: The entrepreneur does not have a clear picture of the impact of the investment on the cost price of the cucumbers.
  2. Insufficient risk management: Rising energy prices and changing demand are not taken into account in the calculations.
  3. No comprehensive overview: The entrepreneur views the investment separately from other financial aspects, such as cash flow and debt burden.


Diamond FMS

How do you solve it?

  1. Scenario analysis: Calculate how the investment will pay off under different conditions, such as fluctuations in energy prices or market prices.
  2. Cost calculation: Analyze the impact of LED lighting on the cost per cucumber. How many extra cucumbers does the greenhouse need to produce to make the investment profitable?
  3. Risk analysis: Identify potential risks, such as unexpected costs or disappointing returns.


With a comprehensive overview, the entrepreneur can determine whether the investment is financially feasible and how to manage risks.

Application of Diamond


Diamond calculates the entire investment, including costs, returns, and risks. The tool offers:


Cost Analysis: Diamond calculates exactly how much the new lighting costs per square meter and how this affects the cost of cucumbers.


Yield simulation: Diamond shows how many additional cucumbers must be produced to recoup the investment. For example: Without LED lighting, the greenhouse produces 3 cucumbers per square meter per week from January to March. With LED lighting, this can increase to 8 cucumbers per square meter per week.


Risk management: Diamond simulates what happens when energy prices rise or demand falls. This allows you to make strategic choices and be prepared for unexpected scenarios.


Thanks to Diamond, the entrepreneur can present a substantiated report to banks or investors, which significantly increases the chance of financing.