The California Strawberry Nursery Industry: Overview, Challenges, and the Prospects of Controlled Environment Agriculture

California produces nearly 90% of U.S. strawberries, and its nursery industry supplies transplants to growers nationwide and globally. This study combines a literature review with interviews from three California nursery firms to examine industry challenges and evaluate whether Controlled Environment Agriculture (CEA) technology could complement existing propagation systems. The sector faces mounting pressures including disease risks, labor shortages, supply chain complexity, climate variability affecting chilling accumulation, and uncertainty surrounding potential methyl bromide phase-out. While CEA systems are integrated into European strawberry nurseries, California’s use remains limited to early propagation stages. Evidence suggests CEA technologies could potentially reduce disease transmission and weather-related vulnerabilities at certain supply chain points. However, significant barriers limit adoption, including high capital requirements, skilled labor scarcity, challenges scaling to meet production volumes, and insufficient economic data. While CEA may offer targeted applications as a complementary tool, fundamental questions about scalability, economics, and integration into existing production systems require further research.