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How To Maximize Resource Efficiency In Controlled Environment Ag Operations
Join Meena Sankara, KETOS CEO, and Tinia Pina, Re-Nuble CEO, for a discussion about the most significant challenges and opportunities facing Controlled Environment Agriculture operations
Tuesday, August 3 @ 12:30 pm ET / 9:30 am PT
Wednesday, August 4 @ 9:00 am ET / 1 pm GMT
Join Meena Sankara, KETOS CEO, and Tinia Pina, Re-Nuble CEO, for a discussion about the most significant challenges and opportunities facing Controlled Environment Agriculture operations. In this webinar you will learn:
Why water management is important in the CEA industry
Challenges soilless/indoor farms face when improving water management efficiency
How soilless operations (including vertical farms and greenhouses) can be more resource-efficient
Strategies for the nutrient wastewater recovery
Which waste recovery solutions are best for your operation
August 3rd Webinar Registration
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CEA Producers Join To Support Data-Driven USDA Project
AppHarvest (Ky.) and Revol Greens (Texas) are vanguards of modern greenhouse cultivation, while Elevate Farms (N.J.) and Fifth Season (Penn.) are pioneers in vertical farming
Four agricultural producers have joined with nonprofit Resource Innovation Institute (RII) under the banner of its USDA Conservation Innovation Grant-funded project: Data-Driven Market Transformation for Efficient, Sustainable Controlled Environment Agriculture.
AppHarvest (Ky.) and Revol Greens (Texas) are vanguards of modern greenhouse cultivation, while Elevate Farms (N.J.) and Fifth Season (Penn.) are pioneers in vertical farming. The producers will serve as initial pilot partners in support of the USDA-funded project that aims to transform the controlled environment agriculture (CEA) market sector toward more efficient production through coordinated research on energy and water practices spearheaded by RII and the American Council for an Energy-Efficient Economy (ACEEE).
“We are thrilled to unite with these categories in the name of innovation and agricultural resilience,” said Derek Smith, Executive Director of RII. “Working together with these initial pilot partners and others to follow, we can unlock basic knowledge about performance metrics that will serve as beacons of efficiency and productivity for CEA producers globally.” In addition to geographic diversity, the producers represent an expanding global market growing a range of crops in indoor environments, from microgreens to tomatoes to berries.
Resource Innovation Institute’s PowerScore resource benchmarking platform enables CEA producers to confidentially validate their innovative practices. Using standardized key performance indicators, PowerScore helps producers gain powerful insights into their operational performance while protecting strategic business interests.
“RII is trusted throughout the supply chain to provide data analysis and peer-reviewed guidance to producers, vendors, governments and utilities. Our consortium of members and partners are committed to collaboratively study the most sustainable horticultural practices across climate zones, building types, technologies and techniques to guide decision-makers on how to advance agricultural resilience,” said RII’s Smith.
To ensure the highest level of PowerScore data protection, RII has engaged Management Science Associates (MSA), global companies in data security and analytics, with expertise in HIPAA compliance and benchmarking for associations across industries. Together with producers, investors, and supply chain partners, RII continues to develop protocols that clearly define access, use, and ownership of data.
“We believe that the only way to fundamentally build an industry starts with data capture and accountability,” said Travis Kanellos, Chief Strategy Officer, Elevate Farms. “Our approach from day one has been to drive yields and profitability through metrics and KPIs. We believe RII will validate our approach."
For more information:
Resource Innovation Center
www.resourceinnovation.org
23 June 2021
Can Vertical Farms Be Profitable?
Basically, we’re skeptical of both the economics and the save-the-world ethos that many companies preach. We enlisted an industry insider to help us separate the wheat from the chaff
Earlier this year, we covered a couple of indoor farming companies going public through mergers with special purpose acquisition companies (SPACs). Neither seemed very appetizing for retail investors, with negligible revenues to date. As we predicted, more indoor farming startups (referring to both large-scale greenhouses and vertical farming operations) are jumping on the SPAC crazy train. The latest is a Montana company called Local Bounti that had generated little buzz until this month’s announcement, which included news that Cargill is providing $200 million in debt financing in the deal.
In this article, we want to take a step back and look a little more closely at the indoor farming industry, sometimes referred to as controlled environment agriculture (CEA), particularly on the vertical farming side of things. Basically, we’re skeptical of both the economics and the save-the-world ethos that many companies preach. We enlisted an industry insider to help us separate the wheat from the chaff.
Saving the World from BS
Mark Korzilius is the founder and chief strategy officer of &ever, a vertical farming startup based in Germany, with its first mega-farm located in the desert of Kuwait. Korzilius was also the co-founder in 2002 of a chain of fast-casual Italian restaurants, Vapiano, with more than 200 locations in about 30 countries. He reached out to us, as founders sometimes do after reading a story that didn’t include them, to tell us about all of the cool things their company is doing. In the case of Korzilius, he also wanted to set the record straight on all of the things that competitors like AeroFarms and other indoor vertical farming companies aren’t doing despite claims to the contrary.
Obviously, Mr. Korzilius is biased, but he also confirmed one of our chief suspicions: Many indoor farming companies claim they are on a mission to help feed the world, which seems incongruous with the fact that most are growing leafy greens, herbs, berries, and maybe tomatoes. Hardly the sorts of staples that are going to keep the estimated 800 million people in the world from going hungry at the end of the day. He also argues that claims of automation using artificial intelligence and sensor-rich environments are also overblown.
“We truly believe to become farmers and to be successful farmers for some crops, we can prove that [vertical farming] is, in the end, a way forward,” he says. “Hopefully, we can find some technologies to really overcome some issues that have been created by others … that will help solve problems that have been the result of technologies that have been created 50 years ago.”
In the second half of that comment, Korzilius is obviously referring to the modern industrial farming system, with its reliance on pesticides, herbicides, and fertilizers that deplete and poison soils and water supplies. That’s why you see so many companies developing natural fertilizers using microbes or biomanufacturing solutions for non-chemical pesticides. Outdoor agriculture is also water intensive, especially for products like almonds, which require one gallon of water per nut. Various technologies are in development to use water more efficiently, from soil sensors to aerial imagery from drones and satellites. Vertical farming gets at the root of the problem by moving the growing operation indoors, employing LED lights and hydroponics to deliver nutrients using only water rather than soil. That eliminates both pesticides and many traditional fertilizers, and reportedly cuts down on water usage by as much as 95%. Let’s take a look at the specific technology behind Korzilius’ company.
Creating the Right Climate for Vertical Farms
Founded in 2015, &ever (formerly known as Farmers Cut) has raised an undisclosed amount of money, originally through bootstrapping and Seed funding, before raising a Series A from partners in Kuwait for its mega-farm, a joint venture with a local investment company called NOX Management. Korzilius said &ever is currently raising a Series B but declined to offer any details.
There are two key parts to the company’s technology, as we understand it: Dryponics and climate cells.
Dryponics is a new riff on hydroponics, which involves growing plants without soil. The company uses a proprietary growth substrate to keep the roots dry. In effect, the root system stays on top of the substrate, while absorbing the nutrients in the water. This setup reportedly has several advantages, including using 68% less water than common hydroponic systems and 37% less water than aeroponic systems, which grow plants in the air using a mist environment or similar system. Less water means the basins underneath the substrates are flatter, allowing more compact layering of crops.
Each crop requires different growing conditions, Korzilius explains, so his team developed climate cells – microenvironments optimized for temperature, light, humidity, and CO2, among other factors. Controlling the environment also helps control energy costs, especially in the large structures that house many of today’s vertical farms, including the company’s flagship facility in Kuwait.
“Within the same premises, we can create different climates. In our Kuwait farm, we have four climate cells next to each other. So, we could potentially create California climate next to Denmark climate next to Singapore climate,” he explains. “By creating climate cells within one premise, we save energy [and] only climatize what needs to be climatized.”
Take spinach, a notoriously difficult plant to grow indoors that took the company two years to figure out the right combination of substrate and climate. But that work has paid off by reducing the amount of growth time by 15%, which translates into 18 grow cycles a year, which is good enough for Popeye to be an investor (if only he hadn’t blown his retirement on canned spinach).
Betting the Farm on Indoor Farming
The value proposition is that products from &ever leave the farm as living plants with the roots intact, continuing to grow while staying fresh and retaining maximum freshness, according to Korzilius. The Kuwait farm is the first large-scale effort to prove the business model, though the company also has smaller grow towers for on-site retail locations like grocery stores, including one in Munich. A second mega-farm is in development in Singapore.
The Kuwait farm, which went live shortly before the Rona hit, is designed to grow up to 250 varieties of greens and herbs. The 30,000-square-foot facility can reportedly produce up to 1,200 pounds of green stuff. Korzilius says the pandemic continues to hinder full-scale operations of the farm, which is overseen by just six employees. However, he claims the vertical farm is profitable from an operations standpoint (in other words, without accounting for the original capital expenditure). “So, we are not selling below cost. Yes, it’s a prototype, but it’s working nicely.”
However, there is a reason why the mega-farm is located in Kuwait and not in Munich or elsewhere in Europe. Energy is simply cheaper in the Middle East, so it was a no-brainer to plug into the grid there. In Singapore, where electricity doesn’t come as cheaply, the local government has stepped in with grant money to subsidize the project. Currently, Singapore imports more than 90% of its food, so the government is motivated to find ways to be more self-sufficient, especially in the wake of the pandemic.
The bigger implication is that vertical farms will require cheap sources of energy to be economically viable. That goes against the current narrative of locating large-scale operations in the middle of big urban centers where electricity is usually pretty expensive. Of course, there are other economics to consider: Centrally located growing facilities will incur lower shipping costs and can theoretically deliver fresher, tastier products to consumers, who may be willing to pay the premium for what Korzilius calls harvest on demand.
“I strongly believe in consumers being at the center of all activities,” he says. “The consumer, in the end, has to pay for this. And, if he doesn’t, then all of this is just a stupid bubble.”
Conclusion
The bubble is certainly ballooning. The three indoor farming companies that are going (or have gone) public that we are aware of are valued at nearly $4 billion. Last year, the top three indoor farming startups in 2020 funding brought in more than $400 million between them, according to AgFunder News. These companies claim to be building a sustainable food system, but it seems unlikely that a business built on microgreens can be sustainable at that scale and cost. As always, the market will decide which model will succeed.
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What Is Driving The UK’s CEA boom?
The main findings of the panel were that the UK has been lucky with its well-established greenhouse industry which offers a great foundation for vertical farmers to understand the CEA space
“In the UK, fruits and vegetables are quite cheap in comparison to other European countries and other parts of the world. In the UK, the market has been squeezed by supermarkets that squeeze out the margins of the supply chain,” said Andrew Lloud, COO at Intelligent Growth Solutions, during a panel at the Indoor AgTech Innovation Summit.
During the session, three UK-supplier panelists elaborated on the topic. Joining were, Andrew Lloud, COO at IGS, Ben Crowther, Co-founder and CTO at LettUs Grow, Jen Bromley, Head of Plant R&D at Vertical Future, and Oscar Brennecke with Rethink Events who led the conversation.
The main findings of the panel were that the UK has been lucky with its well-established greenhouse industry which offers a great foundation for vertical farmers to understand the CEA space.
However, at the same time, it's quite costly to produce indoors given the high electricity and transport costs. This might change over time, due to several renewable energies coming into the market that will allow for cheaper production. Later on, the panelists will elaborate on the differences between the US and Europe, being monocropping whereas EU farmers grow more different varieties at the same time.
What makes the UK CEA space unique?
Andrew noted that UK consumers are willing to pay a certain price for fruits and vegetables. However, indoor ag bring along high electricity costs, whereas UK transport costs are high as well. Next to that, the economic and political dynamic being post-Brexit and currently battling the pandemic has highlighted its challenges. “Technology can economically viable grow a wide variety of crops, forming part of the food mix in the UK and in other parts of the world.”
73% of the surface area available for farming, said Ben Crowther, Co-Founder and CTO at LettUs Grow, a UK-vertical farming supplier, however, the UK still imports half of the produce.” He claimed that there’s an opportunity to make things more sustainable and efficient. Jen Bromley, Head of Plant R&D at Vertical Future, said that it’s not always about growing at a large scale, but that it differs per crop. “It’s always about pushing boundaries to see where the economics can work for the crop.”
Opportunities
More renewables and power generation are coming in, so there’s the opportunity to drop in things like vertical farms according to Andrew. “The real trick is to see if you can get a tariff from the energy provider so that the price per kw/h consumed is optimized to grow plants in the cheapest way.
Jen added that there are some obvious low-hanging fruits that can be taken within the market. Such as leafy greens, herbs, and fruits, given they work really well with the infrastructure. “However, there are also markets we can go deeper into, such as proteins, high-care products that can all be managed very well in the vertical farming space.”
Andrew added that a wide variety of crops will eventually be important, depending on your location. The difference in the US is that it’s a lot about monocropping, but they don’t tend to have the same diversity as seen in the UK or other European countries. I’ve seen it here, but I expect it to come to America as well.”
UK greenhouse- vs vertical farming market
Ben notes that “because of the well-established UK greenhouse industry, we can better understand the vertical farming market.” Berries are a great example, in the UK there has been a 10% market growth. It drives how people are looking for rootstock in these markets, specifically in greenhouses. As well as looking into year-round growing to complement their off-season. The idea translates into more traditional farmers, looking for a more consistent, lower-risk way to make their business more resilient.
Jen said that a traditional farm is a long-term play as they’re handed down by generations. In a vertical farming system, it’s an infrastructure that has to last. Whereas, Andrew claimed that the seasonal variation will be smoothed out by multi-tenant farmers using the same facility for different crops for different points in the year.
Consumer perception
“On the whole, there’s a growing understanding I think,” says Ben. He explains that there are some products available at various retailers already. Jen noted that branding is far more developed in the US, given the produce brands they have. Whereas Andrew affirmed that the elephant in the room in the UK and Europe is the use of the word organic. In the US, vertically farmed produce can be labeled as organic, however, in Europe, we’re still looking at what post-organic looks like. It’s confusing for the consumers, however, we’re at the beginning of educating people, starting with kids.
Other topics discussed were subsidies and barriers in vertical farming in the UK.
For more information:
Intelligent Growth Solutions
www.intelligentgrowthsolutions.com
For more information:
Vertical Future
info@verticalfuture.co.uk
www.verticalfuture.co.uk
For more information:
LettUs Grow
info@lettusgrow.com
lettusgrow.com
For more information:
Indoor AgTech Innovation Summit
www.indooragtechnyc.com
29 Jun 2021
Author: Rebekka Boekhout
© HortiDaily.com
Pure Harvest Aims To Change The Face of Fresh Food
Having secured $60 million in funding, Pure Harvest Smart Farms is looking to expand its operations into Saudi Arabia and Kuwait, using advanced technology to bring food security to the arid Middle Eastern climate.
Having secured $60 million in funding, Pure Harvest Smart Farms is looking to expand its operations into Saudi Arabia and Kuwait, using advanced technology to bring food security to the arid Middle Eastern climate.
7 June 2021
Year-round Local Fresh Food
Pure Harvest is a farming startup using hi-tech, fully climate-controlled greenhouses and a coconut shaving hydroponic solution. Their aim is to provide year-round fresh food in a region where nearly 90% of food is imported. Having secured $60 million in funding, with a further $100 million earmarked by Kuwait’s International Investment Company (Wafra), Pure Harvest Smart Farms is looking to expand its operations into Saudi Arabia and Kuwait, using advanced technology to bring food security to the arid Middle Eastern climate. CEO and co-founder Sky Kurtz described their pilot project in Abu Dhabi as showing promising results with the “potential for year-round local production at very high quality and at a very good cost structure.”
Taming the Desert with High Tech Solutions
Farming consumes huge amounts of water, leading to water scarcity even in temperate regions such as Europe and America. In the arid, dry desert wasting even a drop of water is inconceivable, and Pure Harvest Smart Farms claims their self-contained greenhouses offer a level of efficiency 30 times greater than traditional field farms.
This model of controlled-environment agriculture (CEA) uses greenhouses that go far beyond glass walls to isolate plants. A climate chamber removes heat and humidity from the outside air; this humidity is condensed and fed to the plants inside. There is no soil as plants are grown inside a nutrient rich solution and monitored by sensors to keep the plants healthy. Triple-paned smart glass windows and over-pressurized airflow help manage temperatures to within a 1 degree Celsius margin and carbon dioxide is added to optimize plant growth.
Kurtz claims that Pure Harvest is expecting a yield of six to eight times more food per meter than other greenhouse farms, while using only one-seventh the amount of water. It will produce 17 to 23 times more food per meter than a traditional field farm.
A Large Market but Pure Harvest struggles to Gain Funding
Despite the success of the pilot, Pure Harvest has a long way to go. According to Kurtz, once they are producing at a scale of 30,000 square meters the produce should be 20-40% cheaper than imported fresh food giving them a very promising market.
But even with the investment of $60 million, and the $100 million soon to follow, Pure Harvest has struggled to secure the funding to expand. The industry is extremely capital intensive, and the Middle East venture capital market is less developed than in other countries. The company has managed to raise $50 million through bonds known as “Sukuk,” Shariah law compliant Islamic bonds, with a further $10 million investment from a January fundraising round led by Sancta Capital.
With the additional $100 million from Wafra, the total sum might appear to be significant, but compared to comparable ventures it is low. Recently a vertical farming firm in the U.S., Plenty, raised more than $500 million in funding.
A Promising Future for Local Food
With global supply chains heavily disrupted by the Covid-19 pandemic and further shaken by the blockage of the Suez Canal by the Ever Given in March 2021, the UAE region has become increasingly concerned about securing a food supply. If Pure Harvest can deliver on their promises, they stand to benefit handsomely. At the moment there is no reason to suspect otherwise as the company moves forward with expansion plans. Already the Pure Harvest has reached a $35 million agreement with The Sultan Centre in Kuwait to build a farm stretching across 80,000 square meters that can produce millions of kilograms of fresh fruit and vegetables, well past the size that Kurtz marks for profitability.
Photos: findwonder.abudhabi / agfstorage.blob.core.windows.net
OptimIA Program Analyzes Fruitfulness of US Vertical Farms
In a research fact sheet, a USDA Specialty Crop Initiative team outlines results with a model for calculating profitability potential against various factors that impact the return on investment of CEA operations
In a research fact sheet, a USDA Specialty Crop Initiative team outlines results with a model for calculating profitability potential against various factors that impact the return on investment of CEA operations.
May 21st, 2021
As we have heard from many industry speakers and reported in horticultural lighting coverage, global urbanization and population growth will continue to put a strain on the food supply. Such wide-scale concerns also breed opportunities for innovative research which will ultimately support technology development that helps improve the food supply.
I recently learned of Optimizing Indoor Agriculture (OptimIA), a Specialty Crop Research Initiative (SCRI) supported by the US Department of Agriculture (USDA). The larger objective is to extend the knowledge base regarding controlled environment agriculture (CEA) — often referred to as indoor farming, vertical farming, and indoor agriculture — to support long-term goals of:
Increasing uptake of CEA practices
Addressing food supply — quality, quantity, and availability, particularly in areas where food inequities are prevalent
Bringing sustainable, profitable operations and techniques to CEA growers
The initiative draws from team members across education and commercial horticultural/agricultural organizations: Dr. Greenhouse, Inc.; Michigan State University; Ohio State University; Purdue University; University of Arizona; and the USDA Agricultural Research Service (USDA-ARS). Some of the participants are familiar names from speaking at past LEDs Magazine events, such as Purdue’s Cary Mitchell, MSU’s Erik Runkle, and Dr. Greenhouse president Nadia Sabeh.
Digging into the OptimIA website, I saw the project team had posted a fact sheet of research highlights titled “Potential Profitability and Economic Success of Indoor Agriculture in the United States.” These highlights were collected in preparation for contributing a chapter to the upcoming book Plant Factory Basics, Applications, and Advances. The fact sheet offers a balanced summary regarding challenges to quantification of profitability, benchmarking data, and other factors. Researchers used a Japanese Plant Factory with Artificial Lighting (PFAL), base-case model, to perform their analysis of the profitability of US-based vertical farming.
The most interesting points I have included in the infographic above. But this general conclusion from the highlights comes as no surprise, really: “The changes with the most potential to increase profitability are those that focus on enhancing market price for the quality of product delivered, decreasing capital costs, and improving elements of biomass (plant size, density, and type of crop).” You can download the fact sheet from the OptimIA website.
That’s where the hands-on research will come in and why we continue to refine the program for HortiCann each year. We continue to pursue experts with scientific findings, case studies, and system developments that can decrease the capital costs of horticultural solid-state lighting (SSL) and AgTech systems and enhance grower operations with solid data and monitoring for buildable results. For example, look to last year’s HortiCann presentations on updated research findings on light spectra for various plant characteristics, data-driven automation, and our blog on the grower panel, which centered around end-user experiences in applying LED lighting to greenhouse operations — lessons learned and how they plan to evolve operations with future updates.
Watch the HortiCann Light + Tech website for updates to the program and register to join us for the free virtual event Sept. 28–29, 2021.
Visit the OptimIA website for more information on the project and other published research.
USDA Funds Composition of New CEA Market Characterization Report
. “This is the first such supply chain assessment in CEA. We appreciate these leaders for stepping forward to support this important effort.”
Resource Innovation Institute (RII) has assembled a senior level of its Technical Advisory Council to support its USDA-funded project titled Data-driven Market Transformation for Efficient, Sustainable Controlled Environment Agriculture. The new Controlled Environment Agriculture (CEA) Leadership Committee, composed of a range of subject matter experts in CEA, will advise the development of a Market Characterization Report that will analyze the emerging “controlled environment” horticultural supply chain to determine opportunities to increase energy and water efficiency in cultivation.
“Market characterization is a critical first step in a coordinated effort to transform an economic sector toward efficient production,” said Derek Smith, Executive Director of Resource Innovation Institute. “This is the first such supply chain assessment in CEA. We appreciate these leaders for stepping forward to support this important effort.”
The Market Characterization Report represents the first publication that RII will deliver as part of its work on a three-year USDA Conservation Innovation Grant designed to advance resource efficiency in CEA, a diverse, expanding market that includes greenhouses and vertical farms growing a range of crops, from microgreens to tomatoes to berries. RII is partnering with the American Council for an Energy-Efficient Economy (ACEEE) to deploy the grant.
The CEA Leadership Committee is providing input on key market characterization issues such as supply chain: describing key market actors, barriers to energy efficiency and the best leverage points for market interventions; energy use: describing the energy used by producers (including on-site renewable energy, microgrids, and back-up generation); advantages of efficiency; describing the energy and non-energy benefits realized through implementation of efficiency projects; and baseline identification: describing key market baselines to be used in evaluating the impact of the market transformation initiative over time.
The organizations represented on RII’s CEA Leadership Committee include:
American Society of Agricultural and Biological Engineers
American Society of Heating, Refrigerating and Air-Conditioning Engineers
CEA Consultancy
Ceres Greenhouses
Energy Solutions
Fifth Season
Fluence by OSRAM
Grodan
Midwest Energy Efficiency Alliance
Oregon Association of Nurseries
Priva
Resource Innovations
Schneider Electric
Signify
UVM Extension Services
Zartarian Engineering
For a complete roster, see www.ResourceInnovation.org/TAC.
For more information:
Resource Innovation Center
www.resourceinnovation.org
7 June 2021
Controlled Environment Agriculture (CEA) 4.0 - Conference & Exhibition Day 2 - Friday 4th June - Attendee Tickets Still Available - 522 Attendees Registered
By purchasing a ticket for Conference Day 2 you will receive access and instructions on how you can view recording of the below presentations from Conference Day 1
Controlled Environment Agriculture (CEA) 4.0
Day 2 Conference & Exhibition (Virtual)
Friday 4th June 2021
CEA 4.0 Conference & Exhibition Day 2 is this Friday the 4th of June. With 522 industry attendees officially registered, we still have a small number of attendee tickets that have been made available for Conference Day 2 on Friday
Attendee tickets range from £14.99 - £19.99 per attendee.
Day 2 Conference Presenters
Advanced Plant Growth Centre (APGC) - Derek Stewart, Director
Algal Tech - Armando Leon, Founder & CEO
AmplifiedAg - Don Taylor, CEO & Founder
DAG Facilities - Mark Gemignani, CEO
FarmTech Society (FTS) - Nicole Thorpe, Vice-Chair
GlobalG.A.P. - Kristian Moeller, Managing Director
Greens for Good by Farm Urban - Jens Thomas, Technical Director
GroenLeven - Willem de Vries, Business Innovation Manager
Growfoam - Niels Steenvoorden, Chief Commercial Officer
Intelligent Growth Solutions - David Farquhar, CEO
Jungle - Nicolas Seguy, Managing Director
Mycelium - Eric Dargent, Managing Partner
Mycelium - Yishai Nissan, Managing Partner
Natural Resources Institute Finland - Titta Kotilainen, Senior Scientist
Planet Farms - Daniele Benatoff, Co-Founder & Co-CEO
Red Sea Farms - Ryan Lefers, CEO
SolarPower Europe - Miguel Herrero, Policy Advisor
UK Urban AgriTech (UKUAT) - Katia Zacharaki, Communications Director
Urban-Gro - Mark Doherty, Executive Vice President of Operations
Urban Crop Solutions - Tom Debusschere, CEO
Urban Harvest - Alexandre Van Deun, Co-Founder
Urban Harvest - Olivier Paulus, Engineering & Co-Founder
Valoya - Mika Linden, VP Sales
Valoya - Satu Karjalainen, Research Coordinator
Vertical Farm Institute - Daniel Podmirseg, Director
Vertical Future - Jen Bromley, Head of Plant Research & Development
Vertical Harvest - Nona Yehia, Co-Founder & CEO
Würth Elektronik eiSos - Johann Waldherr, Business Development Manager
Day 1 Conference Presenters
By purchasing a ticket for Conference Day 2 you will receive access and instructions on how you can view the recording of the below presentations from Conference Day 1.
AeroFarms - Roger Buelow, Chief Technology Officer
BrightFarms - Paul Lightfoot, President & Founder
CEA Food Safety Coalition - Marni Karlin, Executive Director
Certhon - Martin Veenstra, Consulting Engineer Indoor Farming Systems
Cultinova - Jim Thorpe, Chief Technology Officer (CTO)
Department for Environment, Food and Rural Affairs (Defra) - Caroline Povey, Team Leader – Agri-Innovation Policy
Finnish Glasshouse Growers' Association - Jyrki Jalkanen, CEO
GE Current - Dr. Hans Spalholz, Senior Plant Scientist
Graines Voltz - Solène Voltz, Vertical Farm Sales
Graines Voltz - Wolfgang Fishcer, International Product & Sales Specialist
Heliospectra - Fei Jia, Technical Solutions Manager
HerbanLeaf Farms - Myrianthi Oxtoby, Founder & CEO
Jones Food Company - James Lloyd-Jones, Founder & CEO
LEAF (Linking Environment & Farming) - Caroline Drummond, Chief Executive
Netled - Niko Kurumaa, COO
North Carolina State University - Dr. Ricardo Hernández, Professor
ONO Exponential Farming - Thomas Ambrosi, Director
Planet Farms - Daniele Benatoff, Co-Founder & Co-CEO
Real Leaf Farms - Karen Hennessy, CEO
Signify - Tom Könisser, Business Development Manager City Farming
Singapore Food Agency (SFA) - Poh Bee Ling, Director, Horticulture Technology Department Agri-Food
UK Research & Innovation – Innovate UK - Ian Cox, Innovation Lead
UK Research & Innovation – Innovate UK - Tom Jenkins, Deputy Challenge Director – Transforming Food Production
Urban Crop Solutions - Tom Debusschere, CEO
VEK Adviesgroep - Reinier Donkersloot, Director Business Consultancy
Vertical Future - Jen Bromley, Head of Plant Research & Development
Vitabeam - James Millichap-Merrick, CEO
Wageningen University & Research - Luuk Graamans, Scientist Vertical Farming
CLICK HERE TO BOOK YOUR ATTENDEE TICKET
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Polygreens Podcast Episode 28 Jake Emling
Beginning in July 2018 he joined CropKing, Inc. based out of Lodi, Ohio. His experience with hydroponics, aquaculture, and aquaponics was instrumental to his desire to start Root 42 Harvests with his wife Katie
Jake attended Michigan State University where he earned both undergraduate and graduate degrees in horticulture. He has nine years of experience across a variety of specialties including agriculture, agronomy, entomology, and viticulture.
During his early career in Michigan, he worked for Michigan State University, AgroLiquid, and the U.S. Department of Agriculture.
Beginning in July 2018 he joined CropKing, Inc. based out of Lodi, Ohio. His experience with hydroponics, aquaculture, and aquaponics was instrumental to his desire to start Root 42 Harvests with his wife Katie.
Latest Episode
Vertical Farming: Disrupting Agriculture
A New Agricultural Revolution Could Forever Change The Planet
24 May 2021
Vertical farming leverages cutting-edge technology to grow food in a new and better way.
One of its many benefits is that it can increase crop yield by 700 percent.
Vertical farming can help relieve pressure on scarce resources and boost Earth's biodiversity.
One day soon, you could eat bananas grown in downtown Manhattan.
It's a way of growing food that turns traditional agriculture on its head. With the required technologies now rapidly maturing, vertical farming is sprouting across the globe.
While there are still unresolved issues with this marriage of technology and agriculture, its promise may be irresistible. If it gets off the ground — literally — in a major way, it could solve the problem of feeding the Earth's 7.9 billion people. And that's just one of the benefits its proponents promise.
Agriculture through time
When humankind began planting crops for nutrition about 12,000 years ago, the nature of our hunter-gatherer species fundamentally shifted. For the first time, it's believed, people began staying put.
With agriculture as their central mission, communities formed, with the now-familiar arrangement of residential areas surrounded by land dedicated to growing food. Even today, with modern transportation making the widespread consumption of non-local foods common, this land-allocation model largely survives: population centers surrounded by large areas for growing vegetables and fruit and raising livestock.
Challenges facing traditional agriculture
As our population has grown, traditional agriculture has begun facing some big challenges:
Farmland takes up a lot of space and destroys biodiversity. Our World in Data reports that half of all habitable land is used for agriculture. As Nate Storey of Plenty, Inc., a vertical farming startup, puts it, "It is probably one of the most defining acts of humanity: We literally changed the ecosystem of the entire planet to meet our dietary needs."
The demand for farmland — both for produce and livestock — has led to a dangerous deforestation in several parts of the world. This also results in biodiversity loss and contributes to an increase in the greenhouse gases that drive climate change.
Degradation of farmland, such as through soil erosion, poses a threat to agricultural productivity.
Agriculture consumes copious amounts of water, which exacerbates water shortages. (Obviously, water shortages also reduce agricultural productivity.)
Fertilizer run-off causes substantial environmental damage, such as algal blooms and fish kills.
Pesticides can degrade the environment by affecting non-target organisms.
The effects of climate change are already making agriculture more challenging due to significant shifts in weather, changes to growing seasons, and realignment of water supplies. Our climate is continuing to change in unexpected ways, and the only predictable aspect of what lies ahead is unpredictability.
Vertical farming proponents expect that a re-think of how we grow food can ultimately solve these problems.
What is vertical farming?
Vertical farming is a form of agriculture that grows plants indoors in floor-to-ceiling, tower-like walls of plant-holding cells. Instead of growing plants in horizontal fields on the ground, as in traditional farming, you can think of vertical farming's "fields" as standing on the edge and extending upward toward the ceiling. The plants need no soil or other aggregate medium in which to grow; their roots are typically held in a cell lining, often composed of coconut fiber.
Vertical flora is grown either aeroponically, in which water and nutrients are delivered to plants via misting, or hydroponically, in which plants are grown in nutrient-rich water. These are incredibly efficient systems, requiring 95% less irrigation than soil-grown plants. With vertical farming, Storey says that 99 percent of the moisture transpired by plants can be recaptured, condensed, and recirculated.
Plants, of course, also need light to grow, and vertical farms use increasingly efficient LED bulbs to keep plants thriving.
Vertical farms can increase crop yields by 700 percent
If vertical farming takes off the way its supporters believe it should and will, it may solve many of the aforementioned challenges facing agriculture.
Crop yields with vertical farming far exceed what's possible with traditional agriculture. Plenty, Inc.'s Shireen Santosham notes that the highly controlled growing environment of vertical farming has allowed her company to reduce the growing time for some crops to as little as 10 days. Without needing to consider whether or even sunlight, combined with the ability to operate 365 days a year, their system increases the potential annual yield by about 700 percent.
The land requirement for vertical farming is a mere fraction of that for traditional agriculture. Santosham says it can be done in a building the size of a big-box retail store that can be built pretty much anywhere that has adequate utilities, including within major urban centers. The tightly controlled environment of a vertical farm should also eliminate the need for applied pesticides.
Yet another benefit of vertical farming is the return of land currently needed for food production back to the planet. This could help facilitate Earth's recovery from deforestation and return much-needed habitat to threatened or endangered species. Of course, if we ever colonize the moon or Mars, vertical farming will be the go-to option for feeding the colonists.
Several vertical farming company pioneers are already getting their high-quality crops into the hands, and mouths, of consumers. Plenty, Inc. has an eponymous line of greens, and Aerofarms has their FlavorSpectrum line. Both companies claim that their products are exceptionally tasty, a result of their carefully controlled growing environments in which computer-controlled lighting can be optimized to bring out the most desirable qualities of each crop.
The history of vertical farming
The idea of vertical farming isn't new, and experts have been questioning its viability since the term was first coined in 1915 by Gilbert Ellis Bailey, who was obviously way ahead of the available technology at the time. The first attempt to grow produce in a constructed environment was a Danish farmhouse factory that was built to grow cress, a peppery green related to mustard, in the 1950s.
The modern concept of a vertical farm arose in the New York classroom of Columbia University's Dickson Despommier in 1999. He presented the idea as a theoretical construct, a mental/mathematical exercise imagining how to farm in an environmentally sound manner. His class began with the notion of a rooftop garden before considering a "high-rise" version that might theoretically be able to grow enough rice to feed two percent of Manhattan's population at the time. The eureka moment was a question Dispommier asked: "If it can't be done using rooftops, why don't we just grow the crops inside the buildings? We already know how to cultivate and water plants indoors."
With the technological advances of the last few decades, vertical farming is now a reality. Our sister site, Freethink, recently paid Plenty, Inc. a visit. (See video above.)
Vertical farming today
Today, growers across the globe are developing vertical farms. While the U.S. has more vertical farms than any other country, the industry is blooming everywhere.
There are currently over 2,000 vertical farms in the U.S. While more than 60 percent of these are owned by small growers, there are a few heavyweights as well. In addition to Wyoming's Plenty, Inc. and Newark's Aerofarms, there's also New York's Bowery Farming. There are also companies such as edengreen, based in Texas, whose mission is to help new entrants construct and operate vertical farms.
Japan comes in second, with about 200 vertical farms currently in operation. The largest vertical farming company there is SPREAD. Across Asia, vertical farms are operating in China, South Korea, Singapore, Thailand, and Taiwan. In Europe, vertical growers are in Germany, France, Netherlands, and the U.K. Germany is also home to the Association for Vertical Farming, "the leading global, non-profit organization that enables international exchange and cooperation in order to accelerate the development of the indoor/vertical farming industry."
In the Middle East, whose desert land and scarcity of water present a particularly challenging agricultural environment, vertical farming is taking root, so to speak. The United Arab Emirates' Badia Farms is now producing more than 3,500 kilograms of high-quality produce each day and expects to increase that yield going forward. In Kuwait, NOX Management launched in the summer of 2020 with plans to produce 250 types of greens, with a daily output of 550 kg of salads, herbs, and cresses.
The economics of vertical farming
Building and operating a vertical farm is a costly endeavor, requiring a substantial initial investment in state-of-the-art technology, real estate, and construction. AgFunderNews (AFN) estimates that it can cost $15 million to construct a modern vertical farm. Fortunately, investors see the potential in vertical farming, and the industry has attracted more than $1 billion in investments since 2015. That includes $100 million for Aerofarms. Plenty, Inc raised $200 million in 2017 from a fund backed by such respected forward-thinkers as Jeff Bezos and Alphabet chairman Eric Schmidt.
AFN is particularly excited by the potential of what they call second-generation vertical farming technology. They cite advances in LED technology — expected to increase energy efficiency by 70 percent by 2030 — and increasingly sophisticated automation that can streamline the operation of vertical farms. AFN anticipates operating cost reduction of 12 percent due to improvements in lighting and another 20 percent from advances in automation.
BusinessWire says that the vertical farming produce market was valued at nearly $240 million in 2019, and they expect it to grow 20 percent annually to over $1 billion by 2027.
A welcome disruption
Vertical farming will be disruptive.
Vertical farming would eliminate the need for the arduous work of harvesting crops by hand from vast tracts of farmland. Current picking jobs, the company says, can be replaced by better-paying, full-time jobs available 365 days a year in better working conditions — and in the variety of geographic locations in which vertical farms can operate.
There are two caveats, however. First, the number of people needed to manage and harvest vertical farm crops will be far fewer than the many farmworkers required for less efficiently planted traditional fields. Second, with automation becoming ever-more capable — and perhaps a key to eventual profitability — one wonders just how many new jobs ultimately will be created.
But the societal benefits far outweigh any costs. As Plenty's Storey muses, "Like most everything in the world, we can only save our species if it makes economic sense." Thankfully, it does make economic sense
Lead photo: Credit: Freethink Media / Plenty, Inc..
Widespread Investment In CEA Is An Important Piece of The Food Security Puzzle
It has become increasingly clear that traditional agriculture is simply not meeting the food demands of the future
There is a commonly quoted statistic estimating that by 2050, we will have nearly 10 billion people on the planet and, in turn, 10 billion hungry mouths to feed. Aside from population factors, the world’s climate is changing in ways human beings have never seen before. Across the globe, our water sources are being diminished and arable landmasses are shrinking. Food security and sustainability is becoming an ever-more pressing issue. There are a number of pioneering companies worldwide working hard to address these critical issues.
The Problem with Traditional Agriculture
It has become increasingly clear that traditional agriculture is simply not meeting the food demands of the future. Food production is heavily driven by significant freshwater consumption and can be both labour intensive and inefficient. Alongside this, changes in climate are negatively impacting yields. This is being witnessed across the board by the food production industry, investors, and governments alike.
The Power of the Consumer
Increased awareness of these issues has led to changes in consumer demands. Consumers have become more discerning about the quality of the products they buy, specifically when it comes to pesticide use, sustainability, freshness, food safety, variety, and brands. They are ever more interested in having knowledge of and creating a relationship with the foods they consume. This is evidenced by the huge organic growth rates of organics over the past 10 years. People care about quality and are voting strongly with their wallets.
Cultural and socio-economic demographics heavily influence what can and should be grown. Some crops such as premium quality leafy greens tend to target more affluent demographics and palates, whereas tomatoes, cucumbers, and a number of other greenhouse vegetables are staples of many diets and can be produced affordably in most places in the world.
The Promise of Controlled-Environment Agriculture
Controlled-Environment Agriculture (CEA) facilitates the growth of sustainable, high-quality produce but not at the expense of the consumer. CEA allows for consistent, high quality production by eliminating the environmental impacts on food production, allowing for more localized production, and reducing, or even eliminating, the use of pesticides.
Reducing Risk
Since early 2020, COVID-19 has woken the world to the risks and fragility of global fresh fruit and vegetable supply chains. Given perishability, the fruit & vegetable market is uniquely vulnerable vs. other crops e.g. the likes of corn, wheat, rice which can be stored & siloed. Controlled-environment agriculture is a solution that addresses these issues facilitating more localized production and supply, offering high output, resource-efficient production capabilities, while meeting the consumer’s changing demands.
In March, the world’s gaze turned to the Suez Canal where a container ship, the Ever Given, became lodged, blocking the canal. On a daily basis, the Suez Canal carries 12% of global trade, around one million barrels of oil and roughly 8% of liquefied natural gas. The cost of the blockage was reportedly $14m-$15m every day!
The Local Promise
The local unique selling point (USP) is now possible pretty much anywhere. Solutions like ours at Pure Harvest Smart Farms have made it possible to affordably produce year-round, even in the harshest climates in the world for example, the UAE, Kuwait, and Malaysia serving Singapore.
Large-scale solutions are necessary for the food to be economic, due to economies of scale in what is ultimately a manufacturing process. Large-scale greenhouses are particularly suitable for dense urban populations, as just 1 or 2 large production sites within 100 – 500 kilometers of the city or town can serve a large group of people affordably.
Unfortunately for more distributed, rural populations, this becomes more challenging. If you scale-down the solutions to hyper-localize, you often lose efficiency (in terms of both capital expenditure/ m2 and operational expenditure/ m2 for production. With more of the world’s population urbanizing, this is another trend that supports widespread investment in CEA as an important piece of the puzzle to serve future food demands.
The Future
The challenge of feeding nearly 10 billion people by 2050 MUST be solved on both the supply side and demand side. From the supply side, adopting technologies that augment output and resource-efficient growing methods. From the demand side, via changing what we consume, reducing waste, and environmental consciousness. Addressing these issues means we can produce more food with less and less resources.
High-tech agriculture presents a multi-decade investment opportunity to contribute to food security, water conservation, economic diversification, and a more sustainable future for all.
Join Sky at the virtual Indoor AgTech Innovation Summit on June 24 and tune into his live panel discussion on ‘Scaling at Speed: Delivering the Promises of a Mission-Led Industry’ at 16.50 EST.
For more information about Pure Harvest Smart Farms, follow them on Facebook, LinkedIn, Instagram and Twitter.
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Widespread Investment in CEA is an Important Piece of the Food Security Puzzle
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AeroFarms CEO Rosenberg Kicks Off Indoor Ag-Con 2021 Keynote Address
“We are thrilled to have an industry leader like David Rosenberg join us as we kick off our return to the live event format,” says Brian Sullivan, co-owner, Indoor Ag-Con LLC
Rosenberg Headlines Full Roster of Keynotes, Panels, Networking & Expo Floor Innovations For In-Person October 4-5, 2021 Edition In Orlando
MAY 6, 2021 -- AeroFarms CEO David Rosenberg will lead the opening morning keynote address for the 8th annual edition of Indoor Ag-Con, scheduled for October 4-5, 2021 at the Hilton Orlando, Florida.
Themed “Growing Your Business,” the premier trade show and conference for the indoor |vertical farming industry will give attendees the opportunity to explore new resources on the expo floor and hear from Rosenberg, other CEOs, thought leaders and industry experts from today’s cutting-edge farms and other innovative companies.
“We are thrilled to have an industry leader like David Rosenberg join us as we kick off our return to the live event format,” says Brian Sullivan, co-owner, Indoor Ag-Con LLC along with other event industry veterans Nancy Hallberg and Kris Sieradzki. “We look forward to gathering with our industry colleagues again and are working hard to bring the best possible combination of networking, education and exhibition opportunities together in Orlando.”
Scheduled for opening morning, October 4, Rosenberg’s address will be held from 8:30 am – 9:20 am. Rosenberg co-founded and leads AeroFarms. AeroFarms has been leading the way for indoor vertical farming and championing transformational innovation for agriculture overall. On a mission to grow the best plants possible for the betterment of humanity, AeroFarms is a Certified B Corp Company with global headquarters in Newark, New Jersey, United States. Named one of the World’s Most Innovative Companies by Fast Company three years in a row and one of TIME's Best Inventions, AeroFarms patented, award-winning indoor vertical farming technology provides the perfect conditions for healthy plants to thrive, taking agriculture to a new level of precision, food safety, and productivity while using up to 95% less water and no pesticides vs. traditional field farming. Grown for flavor first, AeroFarms enables local production to safely grow flavorful baby greens and microgreens all year round.
ROBUST 2021 CONFERENCE SCHEDULE NOW IN DEVELOPMENT
In addition to Rosenberg’s keynote, look for additional announcements coming soon on other CEO keynote presentations planned for the October event. The 2021 conference will also include a full roster of panel discussions, fireside chats and presentations offering a deep dive into three core tracks – Business & Marketing, Science & Technology and Alternative Crops.
In addition to the extensive educational component, attendees will find more new initiatives and show highlights to explore, including:
NEW LOCATION: HILTON ORLANDO – DISCOUNTED HOTEL RATES, TOO
Indoor Ag-Con’s Hilton Orlando venue makes it the perfect opportunity for a business vacation. Centrally located to all major theme parks and attractions, it is just minutes from the eclectic dining scene and entertainment of International Drive. What’s more, the Hilton Orlando resort sits on more than 26 acres of lush landscaping and tropical inspirations making it a true destination of its own. Indoor Ag-Con has arranged for discounted hotel rates for attendees and exhibitors starting as low as $129/night. Complete details are available on the show website.
NEW ASSOCIATION ALLIANCES
Indoor Ag-Con is also forging new alliances with other events, industry associations/groups that will play an integral role in its marketing outreach and conference programming. Look for partnership announcements coming soon.
EXPANDED EXHIBIT FLOOR & NETWORKING OPPORTUNITIES
The Indoor Ag-Con team is working to bring even more resources for farmers/growers to explore across all sectors – everything from IT, energy, AI and lighting solutions to substrates, vertical farming solutions, business services and much more. Attendees and exhibitors alike will also have even more networking opportunities with daily luncheon sessions and receptions on the show floor.
QUICK FACTS:
WHEN: Monday, October 4 – Tuesday, October 5
WHERE: Hilton Orlando, 6001 Destination Pkwy, Orlando, FL 32819
INFO: For information on exhibiting or attending visit www.indoor.ag
ABOUT INDOOR AG-CON LLC
Founded in 2013, Indoor Ag-Con has emerged as the premier trade event for vertical farming | indoor agriculture, the practice of growing crops in indoor systems, using hydroponic, aquaponic and aeroponic techniques. Its events are crop-agnostic and touch all sectors of the business, covering produce, legal cannabis |hemp, alternate protein, and non-food crops. In December 2018, three event industry professionals – Nancy Hallberg, Kris Sieradzki, and Brian Sullivan – acquired Indoor Ag-Con LLC, setting the stage for further expansion of the events globally. More information: https://indoor.ag
Robotic Warehouse Farms Will Save The World
CEA technology is just getting started. Like the Tesla Cybertruck, we have a working concept that promises a more-than-Jetson’s-level future many of us can see the benefits of and actively want―it’s just not quite available to the masses yet
by Elle Griffin
Four years ago, Ritch Wood was looking for a better way to grow plants. As the CEO of global skincare company Nu Skin, he ran into ingredient shortages every winter when fields went dormant―and when he moved grow operations to the equator he ran into water and land shortages, along with a host of quality control issues.
Nu Skin needed reliable, quality ingredients for their skincare products. But farming was too unpredictable an industry. “If there was a way to grow indoors,” he thought, “and be able to do that 24 hours a day, 365 days a year―if we could guarantee that it was grown without any herbicides or pesticides and in a sustainable way that uses less water and land―that would be really helpful.”
At the time, controlled-environment agriculture (CEA) was in its infancy and grow-light technology had yet to take a turn for the more affordable. When he learned of an agricultural system that promised to use a fraction of the land and water used by traditional agriculture methods and had the potential to make it more affordable, Wood made an investment.
Nu Skin paid $3 million for 70 percent of the company and rights to its IP―and Grōv Technologies was born.
Controlled-environment agriculture is on the rise
The theory behind CEA is that by controlling the environment in which it grows, we can control everything about a plant and what it grows into by micro-tweaking one of a thousand different characteristics―including temperature, humidity, light duration, light wavelength, dissolved oxygen in the water, and carbon dioxide saturation in the air. By tweaking the growing cycle, we can control the caloric content as well as the nutrient content and density of the plant.
“What we’ve learned through controlled-environment agriculture,” Benjamin Swan, co-founder and CEO at Sustenir in Singapore, once told National Geographic, “[is] we can actually emphasize certain characteristics of the plants. So, without using GMO, we can make our kale softer, we can actually make it sweet.”
The theoretical use cases for this technology are endless―from being able to grow in places where water is scarce (like in much of Africa), or where water is overly abundant (like Hawaii), or in places where labor is scarce (like in parts of Asia), or even in places that have long winters (like Northern Europe). Theoretically, we could have grow towers in every town and feed the whole of it no matter its natural environment.
We could even grow those foods to those cities’ exact nutritional needs―more vitamin D-rich foods in wintery places, for example. Dr. Lee Mun Wei, a senior manager at the Food Innovation and Resource Centre (FIRC) in Singapore aims to predict and prevent illness in a given population by tracking their biometric data using Apple watch-like wearables, then 3D printing nutrient-specific foods that could mitigate imbalances.
Though these technologies exist, they are still in their infancy. Singapore leads much of the research and development out of necessity. With limited land and water resources, the county is forced to import 90 percent of their food and 40 percent of their water from outside the country. As a result, they have no option but to grow vertically and desalinate water from the ocean.
Elsewhere, the industry has been slow to catch on, largely due to exorbitant startup costs, low returns, and lack of urgent need. According to a 2017 State of Farming report by L.E.K., only 27 percent of indoor, vertical farms are profitable compared with 50 percent of container farms and 75 percent of greenhouses. But one thing has spurred the industry on in recent years: cannabis.
Legalized in 39 states, demand for cannabis has created a $13.6 billion industry and enough capital to fund CEA-enabled grow operations. “When you have a crop that fetches up to $2,400 or $2,500 a pound, you need to be able to dial everything in and make it consistent and repeatable,” says Dashiel Kulander, co-founder and CEO at Boojum Group. “If the temperature swings five to 10 degrees on a cannabis plant, that will change the plant’s various cannabinoids. The goal is to create a medicine that is consistent batch after batch.”
It’s only recently that there has been some financial incentive to use CEA technologies for food use―largely driven by Big Ag players hoping to hedge out the competition. Berry farming giant Driscoll’s, for one, led a $500 million round to fund Plenty, a 2.2-acre vertical farm in California they hope will help them fulfill a contract with Albertsons. The Ingka Group, for another, led a $100 million round to fund AeroFarms, a 2.4-acre vertical farm in New Jersey that will help them fulfill a contract with Singapore Airlines.
Grōv Tech is building CEA prototypes in Utah
By investing in Grōv Tech, Nu Skin hopes to do something similar, getting ahead of the supply chain that fuels their skincare products before the competition can beat them to it, or before climate change makes traditional methods more difficult, all while shoring up technology that could provide a farming model that is more sustainable―if only it were more economical.
“The purpose was always, can we build a better product for Nu Skin?” Wood says. “We think there’s a huge story around the ingredient sustainability, and there were a lot of ingredients we felt we could grow, but the challenge was: could we do it in an economical way?”
Grōv Tech started out with a prototype: a tower that pairs hydroponic growing technology with grow lights. But like all CEA startups, a lot of the growing process was manual and the technology was prohibitively expensive. To make something that was scalable and profitable the whole thing needed to be automated and it needed to be cheap.
With this goal in mind, Wood decided they would start by growing animal feed for Bateman’s Dairy farm. Having grown up on a dairy farm himself, Wood figured this would allow the company to scale the product while refining and automating the technology to the point that it could be replicated. And all of this would have a fortuitous effect on Nu Skin’s bottom line.
“One of our bestselling products is a weight-loss protein powder which uses whey protein,” Wood says. “So again, a very nice connection there is if the animal is eating a more sustainable product and producing better milk with better protein and it’s being done in a sustainable way―certainly that can be a benefit to Nu Skin down the road.”
One year into feeding the 20,000 animals at Bateman, the company has learned a lot. For instance: cows need a lot of magnesium, but they don’t like eating it. Now, Grōv Tech puts magnesium in the water so it’s directly absorbed into the plant and then becomes bioavailable to the cow upon eating it. And because the growing process only takes seven days, data scientists can analyze the results in real-time and adjust the components to optimize production for the next batch of feed.
According to Grōv Tech president Steven Lindsley, it’s not far off that we’ll be looking at milk production (butter, fats, and proteins) and optimizing a herd’s diet for taste, quality, and nutritional value―not to mention the wellbeing of the animal. We’ll be able to look at how many trips from the veterinarian an animal gets when they’re fed certain nutrients in their diet, and whether they can have more calves and produce the same amount of dairy on less, better quality feed. (So far, the answer to this last question is yes. When animals are fed better quality food they need less of it―just like humans.)
And if we hook all of the cows up to robotic milking equipment and connect everything to artificial intelligence, machine learning, and the Internet of Things―Lindsley’s far-flung goal―then we might be able to collect enough data to not only feed cows to their optimum health and performance ability, but humans too. And that could have ramifications not only for feeding the world, but nourishing it― just like Dr. Wei hopes to do in Singapore.
“Last year was about starting to feed animals and get data and prove out the hypothesis we have while continuing to perfect the technology and get confidence there,” Wood says. “And now we’re really to a point where we’ve got data that proves that it works and that financially it’ll be a good thing for a farmer. So now we can really take that proposition to farmers and start to scale.”
CEA technology could feed the world
Right now, Grōv Tech is focused on refining its technology right here in our own backyard. But once they do that, the plan is to expand internationally.
“Saudi Arabia has actually passed a law where you cannot use water to grow fodder or feed for animals, so all of that now has to be imported. China imports one-third of their alfalfa feed for their dairy animals because they don’t have the capability of growing it,” Wood says. “So there are countries that will probably benefit more than the US would. But we’ve got to refine the technology and get that built to where it’s ready to scale before we start spreading ourselves all around the globe.”
CEA technology is just getting started. Like the Tesla Cybertruck, we have a working concept that promises a more-than-Jetson’s-level future many of us can see the benefits of and actively want―it’s just not quite available to the masses yet. But with more than a billion dollars invested in the technology in just the past few years alone―we’re getting there. And the “there” we are heading toward is rosy indeed.
“To put it in perspective, one tower that is about 875 square feet on the ground will replace 35 to 50 acres of land,” says Lindsley. “And that will feed the animals on roughly five percent of the amount of water. The UN says that that the world will add about 2.5 billion people in the next 30 years. And we have to find a way to feed them on arguably less arable land and water. The good news is the technology is coming along to help solve that equation.”
If COVID-19 taught us anything, it’s that our food supply chain is fragile. But that’s only because our supply chain was built to grow food in California, refrigerate it so it stays fresh, then transport it 1,500 miles so we can eat a salad in the winter in Chicago. In the future, that might not be a thing. “We’re having a dry year now,” Lindsley tells me in February. “But a year ago we were in a blizzard, and even in the middle of a blizzard in February in Utah, we’re pumping out fresh, beautiful, safe green grass for animals. It’s a paradigm shift.”
“Four years ago it was a good idea,” Wood tells me of his company’s investment in CEA technology, “But four years from now it’s going to be required.”
Elle Griffin
Elle is the editor-in-chief of Utah Business and a freelance writer for Forbes, The Muse, and The Startup. She is also a literary novelist and the author of a weekly newsletter called The Novelleist. Learn more at ellegriffin.com.
10 New Trends In CEA In 2021 And Beyond
The world of controlled environment agriculture (CEA) is continuing to develop at an accelerated rate. In line with Agritecture’s mission “to accelerate climate-smart agriculture strategies,” we’ve decided to share our top predictions for the future of CEA for 2021 and beyond
22-04-2021 | Agritecture
The world of controlled environment agriculture (CEA) is continuing to develop at an accelerated rate. In line with Agritecture’s mission “to accelerate climate-smart agriculture strategies,” we’ve decided to share our top predictions for the future of CEA for 2021 and beyond.
This post is a follow-up to Agritecture’s post on the “10 New Trends In Hydroponics: What To Expect In 2017 And Beyond”.
Here are our top 10 predictions:
#1: Strawberries
In a sea of vertical farmers producing leafy greens, we’ve noticed sights shifting to strawberry production. While strawberries were initially difficult to produce given on-the-ground concerns like pests, fungal diseases, and weeding, growing vertically has allowed for easier harvesting and limited damage to the fruit. According to Agritecture’s Founder & CEO, Henry Gordon-Smith, “Strawberries are the hot new product for indoor growers because they can charge a lot for the best ones, they’re desired year-round, and the freshness and flavor are very noticeable,” being made more achievable by vertical farming.
As of late last year, Driscoll’s and Plenty announced a partnership to grow strawberries indoors. We’re seeing increasing interest in high-quality strawberries with Oishii Berry’s $50m Series A fundraising for bee-assisted, carbon-neutral strawberry cultivation. In response to this growing interest, Agritecture’s Director of Operations, Yara Nagi, comments that “there is an interesting opportunity for growing strawberries hydroponically, especially for countries that import a majority of their strawberries. In order for strawberries to be exported to another country, they typically have to be harvested early. So, being able to grow them locally and in a controlled environment translates to better quality strawberries with a longer shelf-life. Other than the fact that growing strawberries hydroponically has become more and more efficient, the price point for strawberries can be relatively high when compared to other products grown in an indoor environment.”
#2: Breeding Seeds For Vertical Farms
As of recently, we’ve noticed a growing interest in breeding seeds for vertical farms. In February 2021, Kalera acquired Vindara Inc., a company developing non-GMO seeds for vertical indoor farms. Kasveista’s story of producing high-quality seeds and seedlings of open-source varieties for vertical farming similarly showcases this change in the industry.
Agritecture’s Lead Agronomist, David Ceaser, comments that “to date, crops grown in vertical farms have been grown using plant genetics developed for outdoor or greenhouse production. Environmental conditions in vertical farms are quite different from those environments, and so, plants respond differently. As genetics for vertical farms are developed, yields of current crops will improve greatly, and new crops will be successfully introduced into the vertical farm platform.”
#3: Fully Automated Vertical Farms
If you know anything about vertical farming, you know that labor is expensive and that this form of intensive agriculture requires highly skilled labor. According to Gordon-Smith, “new fully automated vertical farms are emerging” to respond to this labor challenge. He questions whether they will actually work, given that costs are high and the technology is new. Does this development in vertical farming mean fewer jobs or a more skilled workforce? Fully automated vertical farms are inevitable but will they pay off?
In September 2020, Agritecture’s new equipment partner, Urban Crop Solutions, launched their Module-X Automated Vertical Farm.
#4: Floating Farms
It’s always a struggle to find open space for agriculture in built-up urban areas. In recent years, we’ve seen abandoned and unused spaces converted into urban farms. So, why not take farming to the waters too? While it may not seem like the most sensible place to run a farm, it severely reduces food miles and pollution caused by the transportation of food.
Aqua Ark is a company that has taken to the waters to create Amphibious Homes that integrate floating wetlands for food production. Oceanix is a similar company that creates modular and self-sustaining communities on the water for people who want to live sustainably across the nexus of energy, water, food, and waste. The Floating Farm in Rotterdam is a project designed “for a future where rising sea levels mean that farmland is increasingly out of action due to flooding”.
To learn more, check out Agritecture Studios, where ‘floating cities’ is a challenging area within our inaugural cohort of architects.
#5: New Financing Options For CEA Startups
Financing for CEA operations is incredibly challenging. These capital-intensive projects require a robust business plan, strong management team, and access to capital to ensure on-time delivery of construction. Within the last year, we’ve seen SPACs be the latest means for private companies to raise capital. For startups, SPACs aren’t exactly the best route. “A new wave of investment and crowdfunding platforms are providing startups with alternative access to capital,” says Agritecture’s Director of Business Development, Jeffrey Landau.
Through Agritecture Designer, we have a partnership with several of these financing vehicles whereby our software users can access unique discounts and other benefits with these platforms.
#6: Labor Bottlenecks
According to Agritecture’s Director of Business Development, Jeffrey Landau, “the number of greenhouses and vertical farms is growing rapidly. Yet, the number of trained professionals with CEA operating experience is not keeping up with this increasing demand. Agritecture has been working with Cornell University through a National Science Foundation and Agriculture and Food Research Initiative grant to study solutions to this challenge.”
In production systems, workloads often arrive too quickly for the production process and labor to manage. Although seemingly a small problem, the inefficiencies brought about can create delays and result in higher production costs. As a result, we need a highly trained workforce and more workforce development programs for CEA growers.
#7: Singapore, The New Hub For Urban Agriculture
As a country that imports over 90% of its fresh produce and has severe land scarcity limiting its agricultural options, Singapore was in serious need of CEA. This changed when the Government launched the Sustainable Singapore Blueprint. The objective is to develop 200ha of high-rise greenery by 2050, incentivize developers to include urban farms in their developments, integrate farming in mixed-use districts, and encourage the adoption of technologically advanced infrastructure and smart systems. Today, they have the best funding and planning in the sector.
Citiponics is one of Singapore’s first hydroponic rooftop farms, located on top of a carpark, a structure that services almost every neighborhood in Singapore. Sustenir Agriculture is another company farming in Singapore, creating indoor vertical farms that can retrofit into existing buildings. Natsuki’s Garden is another example of successful CEA operations in Singapore. It’s a greenhouse in the center of the city, occupying reused space in a former schoolyard.
Learn more about Singapore’s efforts here. Additionally, Agritecture recently wrote about several other cities that are paving the way for urban agriculture to thrive here.
#8: Architecture
The global pandemic continues to reshape our relationship with food. Challenged by a lack of food access and the declining retail real estate market, individuals have taken a new interest in growing their own food, in the comfort of their own homes. This interest in bringing food production closer to people’s homes is empowering architects to transcend the boundaries of traditional food production to integrate urban agriculture and AgTech into cities. This innovative step will help solve food supply and food access quandaries globally.
Agritecture Studios is working to empower architects to continue on this mission and be key stakeholders in shaping our food-secure futures.
#9: “Alternative Products” x CEA
CEA has a rap for only growing leafy greens. However, several commercial growers have scaled up recently to produce a variety of other specialty crops, including Smallhold (mushrooms), We Are The New Farmers (spirulina), Ynsect (insects), and Pure Salmon (aquaculture).
AgFunderNews groups all of these producers under the category of “novel farming” in their annual funding reports. Per their most recent report, novel farming startups raised more than $1.3B in private investment in 2020, a 16x increase from 2015.
#10: Rise Of Energy Producing Commercial Greenhouses
The high energy use in controlled environment agricultural operations has been a cause for concern from the beginning. Commercial greenhouses, in particular, are reshaping how we think of energy by producing it themselves. ClearVue Technologies installed their energy-generating photovoltaic glazing panels on the world-first clear solar glass greenhouse. TSO Greenhouses is another AgriTech company with the primary objective of maximizing greenhouse light management. There is a lot more research happening here at the university level to investigate some of the tradeoffs between upfront cost, maintenance, energy production, and crop yields. Wide-spread commercial adoption will be multiple years away - but is it 3 years or 10+ years?
There’s no doubt that there’s more to come for the CEA industry. Here at Agritecture, we are constantly combing through the latest research papers, new technology releases, and industry trends to ensure that our clients and software users are able to get creative, build a competitive advantage, but still have realistic goals. Build your first urban farm model today, or get in touch with us to see how we help organizations around the world plan smarter through custom services.
Source and Photo Courtesy of Agritecture
MALAYSIA: Turn Empty Spaces Into Urban Farms To Grow Food
WITH the Covid-19 pandemic highlighting the importance of food self-sufficiency, it is probably time for Malaysians to turn empty urban spaces into farms. Urban farming is the practice of cultivating, processing and distributing food in or around urban areas
17 Apr 2021
WITH the Covid-19 pandemic highlighting the importance of food self-sufficiency, it is probably time for Malaysians to turn empty urban spaces into farms. Urban farming is the practice of cultivating, processing, and distributing food in or around urban areas.
Although our country is rich in natural resources, we are still highly dependent on high-value imported foods. Currently, our self-sufficiency level (SSL) for fruits, vegetables, and meat products is 78.4%, 44.6%, and 22.9% respectively.
With a lower occupancy rate in both retail and office space after businesses folded due to the pandemic, property owners could perhaps be induced into redeveloping their buildings for urban or vertical farming. This is being done in Singapore with tremendous success.
According to the National Property Information Centre (Napic), the occupancy rate for shopping malls in Malaysia has dropped steadily for five consecutive years, declining from 79.2% in 2019 to 77.5% in 2020, the lowest level since 2003.
And, according to the Valuation and Property Services Department (JPPH), the occupancy rate for privately-owned office buildings is lower now compared to the pre-pandemic era.
Aquaponics, a pesticide-free farming method that combines aquaculture (raising fish) and hydroponics (growing plants without soil), would be one of the ways forward in food production. In aquaponics, the nutrient rich aquaculture water is fed to the hydroponic-grown plant.
This method of farming could be the economic livelihood for many, particularly the underprivileged and disabled communities as well as fresh graduates who are still struggling to secure a decent job.
Sunway FutureX Farm, Kebun-Kebun Bangsar (KKB) and Urban Hijau are examples of good urban farming initiatives in the Kuala Lumpur city centre.
Perhaps Malaysians could adopt Singapore’s approach by setting up aquaponics farming systems on roofs of car parks and opening urban farms in unused buildings.
The vertical rooftop system is another way of increasing our food production capacity. This system requires only a quarter of the size of a traditional farm to produce the same quantity of vegetables. At the same time, it also reduces the need to clear land for agricultural use.
The government should provide incentives for farmers and the relevant stakeholders who are interested in venturing into urban farming. This would enhance the supply and affordability of a wide range of minimally processed plant-based foods, as suggested under the latest Malaysia Economic Monitor “Sowing the Seeds” report by the World Bank.
With the current administration’s laudable commitment to tackling food security issues, this would provide the opportunity for Malaysia to review the current national food security policy by addressing productivity, optimization of resources, sustainable consumption, climate change, and water and land scarcity. By putting greater emphasis on urban farming, the government could encourage farmers to plant more nutritious and higher-value crops.
Given that the involvement of youths in the agriculture sector is only 240,000 or just 15% of the total number of farmers in Malaysia, as noted by Deputy Minister of Agriculture and Food Industries I Datuk Seri Ahmad Hamzah, the Entrepreneur Development and Cooperatives Ministry and Youth and Sports Ministry would need to come up with training programmes and develop grant initiatives to attract the younger generation to farming, in this case urban farming.
These ministries can also work with the Agriculture Department, Malaysian Agricultural Research and Development Institute (Mardi), and Federal Agricultural Marketing Authority (Fama) to develop more comprehensive urban farming initiatives.
The upcoming 12th Malaysia Plan (12MP) would also provide opportunities for the government to turn empty spaces into urban farming. In a nutshell, every Malaysian can do their part to help the country become more food resilient by converting empty spaces into farms.
Lead photo: Vertical farming systems can maximize use of space in an urban context.
AMANDA YEO
EMIR Research
Kuala Lumpur
TAGS / KEYWORDS: Letters & Opinion,
May 18th, 9 am EST - Webinar On How To Invest In CEA With Confidence
Agritecture is hosting a series of webinars, starting with How to invest in CEA with confidence
Agritecture is hosting a series of webinars, starting with How to invest in CEA with confidence. The CEA sector is heating up and is expected to grow 5x over the next 10 years. Investment in CEA has surpassed $2.0B across North America and Europe. Join Henry Gordon-Smith, Founder & CEO at Agritecture, for this 1-hour live webinar to learn more about how to invest confidently in the CEA industry.
How To invest In Controlled
Environment Agriculture With
Confidence
May 18 - 9 am EST
The lineup of speakers include:
Louisa Burwood Taylor, Head of Media & Research at AgFunder
Robert Glanville, Senior Advisor at REG Consulting LLC
Andrew Carter, Co-Founder & CEO at Smallhold
Darren Thompson, CFO at Bowery Farming
Djavid Amidi Abraham, Director Of Consulting at Agritecture
Click Here To Register!
For more information, you can check out our events listing here.
Agritecture
www.agritecture.com
Oishii Sees Itself As ‘The Tesla of Vertical Farming.’ Here’s How It’s Cracking CEA Strawberries
“Strawberries are the hardest crop to grow in a vertical system and it’s been every vertical farmer’s dream to grow them. Conquering strawberries allows us to grow into other crops very quickly.”
March 31, 2021
Indoor farming is best known for leafy greens and micro-herbs. But New York’s Oishii is hoping to blaze a new trail and sweeten up the segment.
“A lot of people call strawberries the holy grail of vertical farming,” Oishii founder Hiroki Koga tells AFN. “Strawberries are the hardest crop to grow in a vertical system and it’s been every vertical farmer’s dream to grow them. Conquering strawberries allows us to grow into other crops very quickly.”
The startup announced a $50 million funding round this month led by Mirai Creation Fund, part of Tokyo-based SPARX Group. Additional investors included Sony Innovation Fund — the corporate venture arm of Japanese tech giant Sony — Tokyo-based AI company PKSHA Technology, and San Francisco-based VC Social Starts.
“We’ve had multiple offers from different funds but we ultimately decided to go with SPARX because they have a very strategically aligned mandate. They’re backed by Toyota, one of the largest manufacturing companies in the world [and] vertical farming is the intersection of agriculture and manufacturing,” Koga says.
Although it may seem odd for Toyota to be interested in agrifood tech, the carmaker is working on its Woven City project located at the base of Japan’s Mount Fuji. It’s a so-called “living laboratory” where researchers live and work full-time to imagine what future cities may look like through technological innovation.
Koga is no stranger to controlled environment ag (CEA). Six years ago, he was working as a CEA consultant in Japan, helping large corporations enter the space. While Koga views Japan as the birthplace of vertical farming, he moved to the US in 2015 – around the time that the method was becoming popular in the country.
Alongside the allure of being the first to crack indoor strawberry cultivation, Koga sees the fruit as a way to address what he calls the “unit economics problem” in indoor farming. He sees strawberries as providing a very strong revenue and profit model, as well as a crop that can further “democratize” vertical farming.
“In order to democratize it, I wanted to start with something that’s truly impactful — not products that people will buy because they are sustainable — [but] something that is superior compared to what is on the market, and that would completely change people’s experience,” Koga says.
He leveraged his personal network in Japan to collaborate with farmers and research institutions on the details of indoor strawberry cultivation – from seeding all the way to harvesting. It took “countless” iterations to get the formula right, he says.
“There’s probably 20 or 30 different things that you can tweak in a given cycle of the plant. So, let’s say there are five or six different stages of the plant life cycle – if you multiply all of those, there are millions of different combinations,” he explains.
“It’s a matter of tweaking those on a daily basis to figure out what the perfect mix is.”
However, this know-how isn’t what Koga considers to be Oishii’s “secret sauce.” Rather, that’s the bees that the startup’s using handle pollination.
While Koga won’t spill the ‘bees’ about how all this works in Oishii’s context, he claims to have found a way to replicate a natural environment within an indoor vertical farm that convinces the critters they’re outside.
“They live in harmony with our farmers and robots,” is all Koga will add.
The Tesla of vertical farming
With the initial R&D under its belt, Oishii is now turning its focus to consistency and quality of the product. Its current New Jersey facility spans a few tennis courts, Koga says; but its next one will be the size of an American football field. It currently sells direct-to-consumer through its website, and through traditional retail channels like supermarkets.
But its strawberries may be out of some consumers’ grocery budgets, retailing between $15 and $50 per pack depending on the size and the number of fruits. This price point puts Oishii’s berries in the luxury food category – for now, at least.
“If you think about how Tesla started with a Roadster or Nissan started with the LEAF, we like to think we are in the Roadster camp,” Koga says.
“Our current Omakase berry is our Roadster right now, but we already have developed multiple strawberry cultivars that we can produce much more cost-efficiently. Our Model S and Model 3 will be on the market soon,” he says, referring to the latter-day models now being sold by Elon Musk’s company.
Another US vertical farming startup, Plenty, is also trying to solve the strawberry equation. It recently added Driscoll’s to its list of backers and is collaborating with the major berry producer on indoor strawberry cultivation.
Koga welcomes competition in the space, particularly if it means branching beyond leafy greens.
“It’s generally a good thing that people are following in our footsteps and expanding out of the leafy green space. The more berries the better,” he says.
“Ten years ago, we only had Tesla, maybe a few other companies. But Tesla was the one who proved that it can be done, and now there are dozens and dozens of electric car manufacturers. [The electric car] become much more widely available.”
Expanding Controlled Environment Agriculture Beyond 'The Big 4'
Greenhouses, vertical farms, and hybrid systems (collectively known as controlled environment agriculture or CEA) continue to attract investment at a much greater scale than in previous decades
By PETER TASGAL
March 29, 2021
Greenhouses, vertical farms, and hybrid systems (collectively known as controlled environment agriculture or CEA) continue to attract investment at a much greater scale than in previous decades. In each of the past five years, there have been multiple nine-figure capital raises. Capital has been deployed across farm types:
Large-scale greenhouses (e.g., AppHarvest, Mastronardi Produce),
Regional greenhouses (e.g., Gotham Greens, Bright Farms),
Localized vertical farms (e.g., InFarm – Berlin, Kalera).
Sources of funding have expanded from almost exclusively highly-specialized private equity investors to include public equity, mezzanine debt and even commercial banks. Within these funding sources, the breadth of investors has expanded beyond agriculture-focused investors to more mainstream investors, especially those with an interest in Environmental, Social and Corporate Governance (ESG) investing.
More from The Packer: Deep dive on the economics of greenhouse growing
Despite all of the investment, the vast majority of produce grown in CEA’s across North America consists of tomatoes, cucumbers, peppers, and lettuce, and leafy greens (“The Big 4”). Most of the lettuce and leafy greens are coming from CEA’s in the U.S. In Canada, The Ontario Greenhouse Vegetable Growers include 220 members producing tomatoes, cucumbers, and peppers on over 3,000 acres of greenhouse.
In my opinion, the next leap for the industry will be expanding the breadth of products. Specifically, focusing on products the taste of which is highly important to the consumer. A strawberry, for example, is a more important purchasing decision to the average consumer compared to lettuce. Lettuce is much more likely to be eaten as part of a salad along with a variety of other ingredients. Today, you can buy at mainstream retail locations a greenhouse-grown strawberry likely grown by Mucci Farms in Ontario or Mastronardi’s Green Empire Farms in New York.
Consumer demand will continue to drive product expansion. Meeting that demand will be possible through further investment in the CEA space. Although investment has been growing, it has not met the levels of other industries where many billions of dollars have been invested on an annual basis. Investment levels in CEA are likely to become far greater over the near future as some of the largest investors in the world are focused on investments that meet and exceed ESG standards.
More from The Packer: On tour with AeroFarms
Efficient vertical farms and greenhouses meet and exceed ESG standards. The farms are closed-loop systems where everything that goes into the farm is contained and recycled. Additionally, as the environment is fully controlled, only the precise amounts of inputs are added so as to limit excess waste. Lastly, a controlled environment allows for plants to grow without chemicals and pesticides.
Combining consumers’ desire for more locally-grown produce throughout all seasons of the year with increased investor appetite should drive great growth across the industry for years to come. I believe the biggest leap will be new and exciting products coming from indoor farms. This will all be enhanced with incremental improvements in product taste, farm efficiency, and additional varieties within The Big 4 and other products to come.
Peter Tasgal is a Boston-area food agriculture consultant focused on controlled environment agriculture.
Evaluating Real Estate For Indoor Agriculture
Several factors need to be evaluated before purchasing or leasing a piece of real estate for CEA. Will you build new construction or rehabilitate a vacant building? Are you building a large-scale greenhouse or a small, urban vertical farm?
March 17, 2021
Traditionally, buyers of agricultural real estate have focused on rural land where primary considerations for their farm include things such as soil quality, annual rainfall amounts, and adequate drainage. Increasingly, however, agriculture start-ups are moving indoors. Compared to field-based agriculture, indoor farming allows for more crop cycles, less water usage, and the farms can be located closer to the consumer. The considerations for an indoor, or controlled environment agriculture (CEA) operation are considerably different than for outdoor farms.
Assessing Potential Real Estate for CEA
Several factors need to be evaluated before purchasing or leasing a piece of real estate for CEA. Will you build new construction or rehabilitate a vacant building? Are you building a large-scale greenhouse or a small, urban vertical farm?
Environment
Weather and terrain are important for natural light greenhouse projects. The primary limiting factor to crop production in a greenhouse is low light intensity during the winter so consult with an Ag-extension service or other resource to get that information for a proposed location. Adequate acreage is a must for not only the greenhouses themselves but, also shipping and receiving space, a retention pond (if needed), and potentially even worker housing.
Spacing
For a vertical or urban farm in an enclosed building, important factors to consider include adequate square footage to allow for proper spacing between growing systems and enough room to move the towers (if mobile) for cleaning or maintenance. Additionally, a building should have a sufficient water supply and potentially drainage, a robust HVAC system and humidity controls, and a ceiling which is high enough for the growing towers. Although indoor farms using high efficiency LED lighting, these systems, combined with pumps, humidifiers, and HVACs can use significant amounts of electricity, a developer should carefully and conservatively estimate those costs prior to negotiating those terms with a landlord or electric company. Finally, the farm should be in close enough proximity to allow for routine delivery to local customers, be they restaurants, groceries, farmers markets, or Community Supported Agriculture distributors.
Labor
In both types of farms, labor availability and cost is a critically important consideration. The cost of wages for urban farms, even for unskilled workers, will likely be higher than that of rural areas. And in the case of any real estate development, ensure prior coordination with relevant agencies has been done on permits, licenses, and zoning regulations prior to signing any leases or closing on a land contract. Prior to starting a search for a CEA project, it’s wise to seek expert help from outside consultants who can save an indoor farm developer time, money, and aggravation.
Tags real estate, indoor agriculture, cea