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Roto-Gro Set To Blast Into Space With Food Production System
Roto-Gro is capitalizing on the space exploration boom, as it applies to a NASA challenge developing novel food production technologies to feed astronauts on long-term missions
Advanced Agritech Company Roto-Gro International (ASX: RGI) Is Aiming To Feed The World’s Astronauts.
August 9, 2021
Roto-Gro is capitalizing on the space exploration boom, as it applies to a NASA challenge developing novel food production technologies to feed astronauts on long-term missions.
Advanced agritech company Roto-Gro International (ASX:RGI) is aiming to feed the world’s astronauts as it capitalizes on innovations in food production systems and a boom in space exploration.
Roto-Gro World Wide (Canada), a wholly-owned subsidiary of Roto-Gro International, has applied to the Deep Space Food Challenge as part of its first step into the space agriculture sector.
Administered under an international collaboration between National Aeronautics and the Space Administration (NASA) and the Canadian Space Agency (CSA), the international competition aims to incentivize the development of novel food production technologies needed for long-development space missions and terrestrial applications.
Roto-Gro’s application highlight’s the technological diversification and adaptability of its patented proprietary indoor vertical farming technology.
Astronauts’ food needs changing as missions evolve
Astronauts currently receive food from spacecrafts regularly launching from Earth, for example to the International Space Station.
However, NASA and the CSA recognize that as the distance and duration of space exploration missions increase, the current method of feeding astronauts will no longer be sustainable.
Future astronauts will be required to use food production systems on their voyages and be self-sustaining. The challenge aims to inspire the agricultural industry to help bring innovative food production technologies to space, reducing the need for resupply from earth and ensuring astronauts have continuous safe and nutritious food supplies.
The ability to develop sustainable food production is considered the crucial next step for longer-term human presence on the lunar surface and the future missions to Mars.
The challenge is not only about space exploration but also missions in extreme arid and resource-scarce environments on Earth. Like space, input efficiency will be key, including the efficient use of water and electricity to reduce resources needed for food production here on Earth.
Adapting Roto-Gro’s existing models key to space success
A new Roto-Gro rotational garden system — branded Roto-Gro Beyond Earth — will be designed with engineering adapted-off components from its existing Model 420 and Model 710 rotational garden systems.
Roto-Gro Beyond Earth will be a smaller, more portable version of the Model 420 but feature the injection feed system from the Model 710, significantly reducing the required resource inputs while maximizing nutritional outputs when compared to other indoor farming technologies.
Roto-Gro CEO Michael Di Tommaso said Roto-Gro Beyond Earth will enhance the already existing, unique benefits of its rotational garden systems, optimizing both the operational efficiencies and yield per m2, which is crucial to the development and prospective use of food production systems in space.
“The technology developed to form the application to the challenge is astoundingly demonstrating the vast applicability and sheer innovation of the company’s technology,” Di Tommaso said.
He said the company had developed several key relationships with organizations currently providing food system solutions for long-duration space voyages, along with others focused on using space to solve problems we are experiencing on earth.
“We look to develop and foster these relationships moving forward, further strengthening our position in the sector,” Di Tommaso said.
He said entering the space agricultural sector was a natural progression for Roto-Gro, supporting its vision to provide sustainable technological solutions for agricultural cultivation, critical to ensuring global food security.
“Food system innovation is crucial to our progression in space, and we are excited with the prospect of moving to the next phase of the Deep Space Food Challenge, while also generating other opportunities to develop and implement Roto-Gro’s technology in the industry,” Di Tommaso said.
Roto-Gro global forecasts international growth
Established in 2015, Roto-Gro is continuing to attract interest on a global scale.
The company recently partnered with agriculture company Verity Greens Inc. who has signed a binding $10M Technology License to purchase 624 RotoGro Model 710 rotational garden systems, with the first, flagship indoor vertical farming facility to be built in Canada.
The deal is expected to generate long-term, sustained recurring revenue with Di Tommaso hailing it as not only a “win-win” for both companies but a venture that works on a socially responsible level by helping tackle global food shortages.
“RotoGro will introduce our revolutionary technology into the booming indoor vertical farming space, while Verity Greens, utilizing the RotoGro Garden Systems and supporting technology, will operate with a viable and cost-effective competitive advantage,” he said.
“Verity Green’s first facility also serves to further its objectives – to roll out indoor vertical farming facilities globally utilizing RotoGro’s technology, not only to generate substantial revenue for both companies but also to provide a truly sustainable solution to address the issues caused by food insecurity.”
Lead photo: Pic: Giphy
This article was developed in collaboration with Roto-Gro International, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
VIDEO: Freight Farm To Teach Youth About Sustainable Agriculture
by Nicole Weaving
July 24th, 2021
To View The Video, Please Click Here
Freight Farm to teach youth about sustainable agriculture (Photo Credit: NTV News)
LINCOLN, Neb. — Beyond School Bells is partnering with the Bay in Lincoln for a new after-school program that will teach students about sustainable ag technology.
"We really see Freight Farm as kind of that key, climate-change impervious tool that young people need to know about as we face an uncertain future," said Jeff Cole, Network Lead for Beyond School Bells.
An old shipping container in the parking lot of the Bay has been transformed in a self-contained hydroponic farm.
Using red and blue LED lights, this Freight Farm, known as the Greenery, creates a climate-controlled environment, where the plants grow vertically without a need for soil.
"We enrich the water with nutrients that would normally be in the soil," said Colton Harper, Organizing Manager for the Greenery. "And then in these grow walls, we've got spickets that come right through these foam and it's directly onto the roots of the plants."
According to Harper, there are currently about 6,000 plants growing in the Freight Farm, but at full capacity, it can hold 13,000 plants between the seeding area and that walls. That would produce the equivalent of a 2.5-acre farm year-round.
"Even in the winter, if there are shortages anywhere, we can turn on a dime, 7-week grow cycle and be able to provide those crops for local markets," said Harper.
The Greenery arrived in Lincoln in April, and Harper has led to two teams to get it up and running. They are currently preparing for their first harvest with items like basil, lettuce and radishes.
"We're at about Week 7, and in 2-3 weeks, we'll have our produce at a farmer's market," said Harper.
After a few more grow cycles, the program will open to local students to teach them all aspects of sustainable farming.
"From the electrical side, the growing, the programming, computer science to the irrigation, the HVAC system, there's so many elements," said Harper. "And we're particularly well-placed with the Bay and their digital design area of focus, the students will also be able to design the packaging, design the labeling, so it's really a full-circle, interdisciplinary opportunity for the students to get involved."
The Greenery plans to hold a Harvest Party to celebrates the farm's success in the coming weeks.
Nordic Harvest: Danish-Taiwanese Indoor Farming Collaboration
Jesper Hansen, Chief Commercial Officer at YesHealth Group in Taiwan, has played an instrumental role in establishing a business partnership with Danish start-up Nordic Harvest and setting up their first Indoor Vertical Farming (IVF) plant in Copenhagen
Jesper Hansen, Chief Commercial Officer at YesHealth Group in Taiwan, has played an instrumental role in establishing a business partnership with Danish start-up Nordic Harvest and setting up their first Indoor Vertical Farming (IVF) plant in Copenhagen. Jesper has, a side business planning and marketing, developed vertical farm designs and so far helped raise more than USD $100 million for vertical farming projects across the world.
Following ten years of development and establishing Taiwan’s largest and profitable indoor vertical farm, further expansion in Denmark, the Nordics as well as in various countries in Asia is in the works. Their elaborate international expansion plan is based on developing technology, and building and operating such indoor vertical farming systems. Their farming technology is hydroponics-based; where plants grow in a solution of water and nutrients and no soil is used. This addresses climate change and food security challenges through sustainable and environment-friendly agricultural practices.
YesHealth Group is currently the largest vertical farming company in Asia, with its own operations and proprietary technology that underpins their vertical farms such as engineering design, climate control systems, fertilizer and micro-biology, automation design, and data collection and management.
The launch in Denmark represents a crucial milestone and the first step in its elaborate international expansion plan. “We are by far the largest player in Taiwan and our main production unit is the largest farm provider for the major retailers, in addition to hotels,” says Jesper.
Chinese studies the beginning
Jesper got involved through the family business of his Taiwanese wife. So let’s rewind to how it all started with this Dane working for a Taiwanese company exporting to Denmark.
After taking a degree in history at the University of Copenhagen earlier, Jesper realised that being a historian was not the kind of job he wanted. He then thought how he could further his studies with some skills that could allow him to travel. Language! Chinese! So he started Chinese studies, which included language, history, culture, politics, and society.
“That really kick-started my studies overseas and the first stay I had was in Hangzhou, where I first learned the basics of Chinese and got to a level where I could have a very basic conversation. I spent six months there as an integrated part of the Chinese programme at the University of Copenhagen.”
Then an opportunity to apply for a one-year scholarship worldwide came up and Jesper applied to the University of California is very strong on Chinese studies.
“I did a one-year programme of combined history and Chinese studies. That really took me to the next level of understanding Chinese – learning how to read and write and how to understand more technical conversations.”
“Next, a Taiwanese representative office in Copenhagen contacted my Professor with the offer of some of the best students from Copenhagen to go to Taiwan, paid by the Taiwanese government, to study Chinese. My professor offered that to me and I was granted six months of Chinese studies at Taiwan University – the top university in Taipei. So I took another six months on top of my degree to go there, and I managed to increase my Chinese to an even higher level during my time here,” says the Dane about his new-found home.
“When I was just about to go back to Copenhagen I met my current wife, my girlfriend at the time. I had little time to get to know her before I was going back to Copenhagen, so I told her that I would return after completing my graduation in Copenhagen. And so I did.”
Family job offer
“Once there I first joined a local Taiwanese company that helps large Western manufacturers (American and big customers such as Ericsson in Sweden), with mechanical components, specialising on Wi-Fi devices. My role was sales but just as much a matter of acting as a cross-cultural bridge. During my two years with this company I got very familiar with Taiwanese business and I also experience in how to link a Taiwanese company’s business mindset and way of approaching business with western practice. I was gradually becoming an expert on how to sell something from there to overseas, especially towards the western world,” he explains.
Indoor Vertical Farming by YesHealth Group in Taiwan
Then, as YesHealth Group was building a larger facility, his Taiwanese father in law took Jesper under his shoulders and offered him to join the company and work on its global expansion.
”So I joined and then spent about a year before we took on the first project, which was in China in 2018. And we succeeded in delivering that project in Shenzen and that remains one of the largest farms ever built up to today. And from 2019 onwards I started developing projects in Europe.”
Danish partnership
First out is Denmark, where in the fourth quarter of 2020 Nordic Harvest began operations of its vertical farm in greater Copenhagen, which will with full production capacity yield more than 3.000 kg every day, making it the most efficient vertical farm in Europe to date.
This Danish start-up that aims to make food production more sustainable has been made possible through a business partnership with YesHealth Group.
“Nordic Harvest ApS is backed by prominent investors and leaders within business, the food industry, and agriculture making Nordic Harvest an ideal partner,” says Jesper.
It has more than 40 private investors, aside some bigger investors and lenders like Vækstfonden, the Danish government’s financing fund for venture capital & private equity; and Danmarks Grønne Investeringsfond, a new, independent investment fund that co-finances investments supporting the transfer to a green society.
As an investor Yeshealth has also contributed capital towards setting up the Danish food business. “And we have a significantly larger stake through our technology transfer; licensing our technologies and proprietary formulas.”
Setting up sales and distribution, marketing and operating the business is done by Nordic Harvest, while Yeshealth looks after everything relating to technology.
“We are building the next phase in 2021, which will almost triple the capacity to around 1000 tons per year – to be completed and fully operational by early next year.”
The grow area is utilised optimally by placing the plants in floors. By having full control over the plants’environment the best conditions is created for their growth. Therefore, the indoor farm can deliver delicious, tasteful and nutrient-rich herbs and lettuces every day year round – 100% free of pesticides and herbicides.
Nordic Harvest is also one part in a two-pillar idea, by the Danish founder and CEO Anders Riemann, to take away the need for traditional farmland and instead grow vegetables inside cities. Farmland outside the cities should be returned to nature by growing forests, creating lakes etc.
“What we call nature in Denmark consist in farmland everywhere, and that’s not what nature looks like before. It’s all artificial – made by people. We should have untouched forest, which we almost don’t have any more. So the idea is to regenerate and create a better balance in the ecosystem.”
Making it sustainable and viable
The start-up also has further plans to expand into the other Nordic countries over the next years.
Jesper called the Danish launch proof “that it is now possible to commercialise vertical farming produce on a large scale and that this produce will be able to support the traditional farming sector from now on. Vertical farming is no longer just a theoretical concept for the garage.”
Favourable conditions in various markets and countries can vary. “It can be a combination of climate conditions favouring indoor farming, coupled with inexpensive energy or access to green energy. We are not dependent on the weather, so this enables us to supply the whole world locally. We can build a farm even in Greenland or Iceland if we want to and supply locally and take out the need for transportation,” says Jesper.
Jesper Hansen inspecting YesHealth Group’s Indoor vertical farming produce
“The harsher the climate is outside the better our technology is because it means you cannot grow outside. But it also means the more difficult it is for us to control the temperature inside. And we try purposefully to link our technology with green energy resources. Actually in the case of Denmark, including the wind power, electricity is not inexpensive. But it’s clean, so we don’t have the carbon footprint. The link with green energy sources is a driver and whether or not there is a market for high quality sustainably produced produce,” adds the Dane.
“In Denmark we are the only large-scale vertical farm. So the competition comes from overseas’ producers. We identify which crops that can be, and are grown, in Denmark, and we purposely grow other things. We are trying to take away import to Denmark. Competitors would be from countries like Italy and Spain. But we’re selling at a certain price point – because the cost structure is still relatively high compared to outdoor farming. The challenge is to make it a sustainable and viable business by being able to offer produce that doesn’t cost more than the traditional. So our goal is to bring down the cost so that this kind of quality and healthy produce is available to anyone,” he continues.
This is something they will achieve gradually, partly via technology improvement in terms of driving down cost. LED technology, for instance, becomes better and better and lower in cost. The same goes for software and automation.
“There is also an operational aspect that you get better and better at operating these farms, so using the same input in money and labour we can get more and more out of the farms,” says Jesper. “So there’s a learning curve in terms of being better at that but there’s also technology improvement over time.”
“With all of our technology in-house, YesHealth Group will be able to utilise real-world data from vastly different climates and environments and improve our technology at an even greater speed and efficiency.”
The Taiwanese company is the developer of all the technology that underpins their vertical farms such as engineering design, climate control systems, fertiliser and micro-biology, automation design, and data collection and management.
Bugs and insects on the market
YesHealth Group was actually mainly started to solve the issue with pesticides: “Taiwan is a hot country with lots of bugs and insects in nature. So the farmers have to spray a lot of pesticides on the crops. By bringing farming into a closed environment, relying on LED for light source instead of the sun, we have a whole lot of advantages. For instance, we can skip all the harmful chemicals and pesticides – we don’t need them anymore; they belong to the outside world. We can also use significantly less fertilizer and water to achieve the same result. We hardly use any other water than what goes into the crops, so it’s very resource-efficient. Then, in some areas like for instance Singapore, we have the ability to grow a lot on a very small footprint.”
Over time the Taiwanese company has developed technology and become experts at running these large farms that are suitable solutions also for export. “And our combination of being both a technology developer and manufacturer, and an operator, gives us a competitive edge towards many of our competitors who focus only on making the equipment; they don’t have live insights from operating these systems. We are one of the few companies that have been operating these farms over a number of years.”
“Almost everything essential to a vertical farm, such as LED lighting, is proprietary; something we developed. The same goes for the automation equipment – everything is made in-house.”
“We have something called ‘Nanobubble oxygene injection system’, which we use to induce oxygen in the water. We have some 50 patents of which some are only here in Taiwan and some are international, but, actually most of our core technologies are what we call trade secrets,” informs Jesper.
In Taiwan, they have a cost competitiveness advantage, but it is by no means any easy market for vertical farming and thus a tough test-bed. “Some of the values – for instance being pesticide-free and sustainable – are things that just don’t resonate. Taiwan is a little bit behind Europe and the U.S in focusing on these kinds of things, so selling the produce is more difficult. The fact that traditional produce from the field is extremely cheap in Taiwan also contributes to that. Hence, the price gap between the traditional produce and our premium produce becomes higher, whereas in Denmark people are used to eating organic, pesticide-free, high-quality produce. There, we don’t have to fight this price gap and change people’s perceptions. We just tap into the mass market, while in Taiwan we’re still a very premium product and a niche.”
“The way we see vertical farming is that it’s never going to replace traditional farming: it’s just going to be a big niche technology that will have applications in areas where you cannot grow, or have a problem with pesticides. And providing year-round pesticide-free, safe and healthy vegetables is part of a larger trend, which is to move away from the need for meat every day to a more plant-based diet. This is the kind of trend we are tapping into.”
Lead photo: Jesper Hansen, Chief Commercial Officer at YesHealth Group in Taiwan
About Joakim Persson
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Tags: AGRICULTURE, FISHING, FORESTRY / BUSINESS IN ASIA / CHINA / DENMARK / SUSTAINABILITY / TAIWAN
iUNU Meets U.S. House Agriculture Committee & Highlights Importance of CEA To U.S. Food Supply
Chairman David Scott (GA) held a Congressional Hearing Thursday morning to increase public awareness of the critical importance of the CEA (Controlled Environment Agriculture) industry to promote food safety, nutritious produce, and food security for the American people
Chairman David Scott (GA) held a Congressional Hearing Thursday morning to increase public awareness of the critical importance of the CEA (Controlled Environment Agriculture) industry to promote food safety, nutritious produce, and food security for the American people.
Adam Greenberg | CEO | IUNU LLC
“While a global pandemic certainly magnified our food supply chain issues, one of the issues we can cover today is how to ensure a supply of fresh fruits and vegetables from all sources,” Chairman Scott asserted in his opening statement. “Controlled environment agriculture has the ability to fill in gaps where there are food deserts, reduce emissions from transportation of produce, and very importantly, limit our reliance on imports to fill our needs for fresh produce. We have an opportunity today to be on the cutting edge of technologies and the ability to provide affordable food to more households that need it.”
iUNU, an AI and computer vision-based technology platform that is employed by large commercial growers to enhance productivity is working with Congress and the USDA to ensure nutritious produce is available to all Americans.
“iUNU is an integral part of the solution to these issues as the leading provider of Artificial Intelligence and machine learning to help indoor growers rapidly expand their operations,” stated CEO Adam Greenberg at the Hearing. “The fact that 87% of the imported tomatoes come from one country, Mexico, leaves the U.S. population highly susceptible to food insecurity whether it is from a pandemic or other forces we can’t control. The CEA industry can significantly reduce these risks.”
Representative Jim McGovern (MA) expressed deep concerns about the need to recognize that food security is a national security issue in terms of ensuring the availability of healthy, nutritious produce for all Americans. “Every child in America deserves fresh, nutritious, contaminant-free fruits and vegetables they can trust.”
iUNU provides indoor growers with an AI and machine learning technology that gives growers the ability to see a plant from the time it sprouts until the time it is harvested in real-time.
“Our LUNA system can see where a problem is when it is happening and what is causing it, which significantly reduces the time it takes to identify any potential outbreak,” Mr. Greenberg said. “By catching a pest or pathogen issue as early as possible, we help growers reduce the need for pesticides. In short, we help reduce a grower’s risks and increase their productivity.”
Representative Jim Costa (CA) reiterated his concern with the nation’s food supply. “The sustainability of our food supply is critical,” he stated. “Focusing on protecting America's food supply chain is a national security issue. We need to focus on innovation as we move forward.”
Later in the afternoon, both Chairman Scott (GA) and Ranking Member Thompson (PA) issued a joint statement urging Congress to address the expansion of Broadband Internet so Americans living in rural areas and food deserts will have the same access as those living in urban areas. The lack of access hampers the ability of businesses such as growers to optimize their facilities through the use of AI and computer vision.
Optimizing Resource Use Efficiency In CEA System
An important factor affecting the profitability of vertical farming is a grower’s ability to consistently deliver a predictable product
Date: July 29, 2021
Time: 2 p.m. - 3 p.m. EDT
Presented by: Murat Kacira (The University of Arizona)
Click Here To Register
Webinar Description
An important factor affecting the profitability of vertical farming is a grower’s ability to consistently deliver a predictable product. To achieve this, growers must create an environment that supplies all the crop’s needs over its entire growth cycle by identifying and co-optimizing environmental variables such as CO2, light, humidity, airflow, and other parameters. This presentation will focus on real-time sensing, monitoring, and climate control strategies with system designs for environmental uniformity leading to enhanced resource use efficiency in CEA system.
Dr. Murat Kacira (Professor)
Murat Kacira is director of the Controlled Environment Agriculture Center and he is a professor in the Biosystems Engineering Department at the University of Arizona. He received his B.S. degree in Agricultural Engineering in Cukurova University in Turkey and M.Sc. and Ph.D. degrees from Food, Agricultural and Biological Engineering from The Ohio State University in USA. His research involves automation, environmental control, alternative energy integrated CEA systems and resource use optimization in controlled environment agriculture systems including greenhouses and vertical farming-based plant factories with artificial lighting. He is a member of American Society of Agricultural and Biological Engineers (ASABE), American Society of Horticultural Sciences (ASHS), and International Society for Horticultural Science (ISHS). He serves as Chair of the Division Precision Horticulture Engineering under ISHS.
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No Soil. No Growing Seasons. Just Add Water And Technology
A New Breed of Hydroponic Farm, Huge And High-tech, is Popping Up in Indoor Spaces All Over America, Drawing Celebrity Investors And Critics
A New Breed of Hydroponic Farm, Huge And High-tech, is Popping Up in Indoor Spaces All Over America, Drawing Celebrity Investors And Critics.
By Kim Severson
July 6, 2021
MOREHEAD, Ky. — In this pretty town on the edge of coal country, a high-tech greenhouse so large it could cover 50 football fields glows with the pinks and yellows of 30,600 LED and high-pressure sodium lights.
Inside, without a teaspoon of soil, nearly 3 million pounds of beefsteak tomatoes grow on 45-feet-high vines whose roots are bathed in nutrient-enhanced rainwater. Other vines hold thousands of small, juicy snacking tomatoes with enough tang to impress Martha Stewart, who is on the board of AppHarvest, a start-up that harvested its first crop here in January and plans to open 11 more indoor farms in Appalachia by 2025.
In a much more industrial setting near the Hackensack River in Kearny, N.J., trays filled with sweet baby butterhead lettuce and sorrel that tastes of lemon and green apple are stacked high in a windowless warehouse — what is known as a vertical farm. Bowery, the largest vertical-farming company in the United States, manipulates light, humidity, temperature, and other conditions to grow produce, bankrolled by investors like Justin Timberlake, Natalie Portman, and the chefs José Andrés and Tom Colicchio.
“Once I tasted the arugula, I was sold,” said Mr. Colicchio, who for years rolled his eyes at people who claimed to grow delicious hydroponic produce. “It was so spicy and so vibrant, it just blew me away.”
The tomatoes at AppHarvest were delicious enough to attract an investment from Martha Stewart.Credit...Luke Sharrett for The New York Times
The two operations are part of a new generation of hydroponic farms that create precise growing conditions using technological advances like machine-learning algorithms, data analytics and proprietary software systems to coax customized flavors and textures from fruits and vegetables. And they can do it almost anywhere.
These farms arrive at a pivotal moment, as swaths of the country wither in the heat and drought of climate change, abetted in part by certain forms of agriculture. The demand for locally grown food has never been stronger, and the pandemic has shown many people that the food supply chain isn’t as resilient as they thought.
But not everyone is on board. These huge farms grow produce in nutrient-rich water, not the healthy soil that many people believe is at the heart of both deliciousness and nutrition. They can consume vast amounts of electricity. Their most ardent opponents say the claims being made for hydroponics are misleading and even dangerous.
“At the moment, I would say the bad guys are winning,” said Dave Chapman, a Vermont farmer and the executive director of the Real Organic Project. “Hydroponic production is not growing because it produces healthier food. It’s growing because of the money. Anyone who frames this as food for the people or the environment is just lying.”
The sprawling Kentucky farm is one of a dozen that AppHarvest hopes to open across Appalachia.Credit...Luke Sharrett for The New York Times
The technical term for hydroponic farming is controlled environmental agriculture, but people in the business refer to it as indoor farming. What used to be simply called farms are now referred to as land-based farms or open-field agriculture.
“We’ve perfected mother nature indoors through that perfect combination of science and technology married with farming,” said Daniel Malechuk, the chief executive of Kalera, a company that sells whole lettuces, with the roots intact, in plastic clamshells for about the same price as other prewashed lettuce.
In March, the company opened a 77,000-square-foot facility south of Atlanta that can produce more than 10 million heads of lettuce a year. Similar indoor farms are coming to Houston, Denver, Seattle, Honolulu, and St. Paul, Minn.
The beauty of the process, Mr. Malechuk, and other executives say, is that it isn’t limited by seasons. The cost and growing period for a crop can be predicted precisely and farms can be built wherever people need fresh produce.
“We can grow in the Antarctic,” he said. “We can be on an island. We can be on the moon or in the space station.”
That’s easy to picture: The farms are staffed by a new breed of young farmers who wear lab coats instead of overalls and prefer computers to tractors.
Today, the more than 2,300 farms growing hydroponic crops in the United States make up only a sliver of the country’s $5.2 billion fruit and vegetable market. But investors enamored of smart agriculture are betting heavily on them.
Lettuces at a Kalera vertical farm destined for nutrient-filled water begin in small plugs of growing medium.
Credit...Courtesy of Kalera
In 2020, $929 million poured into U.S. indoor-farming ventures, more than double the investments in 2019, according to PitchBook data. Grocery chains and California’s biggest berry growers are partnering with vertical farms, too.
“There is no question we are reinventing farming, but what we are doing is reinventing the fresh-food supply chain,” said Irving Fain, the founder, and chief executive of Bowery, which is based in Manhattan and has the indoor farm in New Jersey and one in Maryland, another under construction in Pennsylvania, and two research farms in New Jersey.
Mr. Fain said his farms are 100 times as productive as traditional ones and use 95 percent less water. Other companies claim they can grow as much food on a single acre as a traditional farm can grow on 390.
Vertical farms can be built next to urban centers, so lettuce, for example, doesn’t have to sit inside a truck for days as it makes its way from California to the East Coast, losing both quality and nutritional value. Vegetables can be bred for flavor rather than storage and yield.
The new systems are designed to produce a sanitary crop, grown without pesticides in hygienic buildings monitored by computers, so there is little risk of contamination from bacteria like E. coli, which forced large recalls of romaine lettuce in 2019 and 2020.
Bowery, the largest vertical-farm company in the United States, is growing hydroponic vegetables that have attracted the attention of chefs. Credit...Brian Fraser for The New York Times
Still, many farmers and scientists remain unpersuaded. Mr. Chapman, of the Real Organic Project, served on a U.S. Department of Agriculture hydroponics task force five years ago, and is leading an effort to get the agency to stop allowing hydroponic farmers to certify their produce as organic. The very definition of organic farming, he and others say, rests on building healthy soil. In May, the Center for Food Safety, an environmental advocacy group, led an appeal of a federal court ruling that upheld the agency’s policy.
Although the nutritional profile of hydroponic produce continues to improve, no one yet knows what kind of long-term health impact fruits and vegetables grown without soil will have. No matter how many nutrients indoor farmers put into the water, critics insist that indoor farms can never match the taste and nutritional value, or provide the environmental advantages, that come from the marriage of sun, a healthy soil microbiome, and plant biology found on well-run organic farms.
“What will the health outcomes be in two generations?” Mr. Chapman asked. “It’s a huge live experiment, and we are the rats.”
The divide between soil loyalists and ag-tech futurists is playing out on a much more intimate scale between two influential brothers: Dan and David Barber, who founded and own the organic farm Blue Hill and its restaurants in Greenwich Village and at Stone Barns in Pocantico Hills, N.Y.
In 2018, David Barber created an investment fund to support new food tech companies, including Bowery. But Dan Barber, a chef whose 2014 book “The Third Plate: Field Notes on the Future of Food” devotes an entire section to soil, believes that truly delicious food can come only from the earth.
“I am not buying any of it,” Dan Barber said of the hydroponic fever.
The chef Dan Barber, a soil loyalist, is skeptical of the claims made for hydroponic farms.
Credit...James Estrin/The New York Times
Trying to enhance water with nutrients to mimic what soil does is virtually impossible, he said, in part because no one really knows how the soil microbiome works.
“We know more about the stars and the sky than we do about soil,” he said. “We don’t know a lot about nutrition, actually.”
There is a cultural cost, too. For centuries, cuisines have been developed based on what the land and the plants demanded, he said. Regional Mexican diets built on corn and beans came about because farmers realized that beans fixed nitrogen in soil, and corn used it to grow strong.
“The tech-farming revolution is turning this equation on its head,” Mr. Barber said. It aids efficiency in the name of feeding more people but divorces food from nature.
His brother, David, had long been skeptical of hydroponics, too. “Most of my career was about good soil leads to good agriculture and good systems and ultimately good flavor,” David Barber said.
But the environmental advantages of next-generation hydroponic food production can’t be ignored, he said. Nor can the improvements in taste over earlier hydroponic produce. “They are combining outdoor and indoor thinking, and science and history, to create something special,” he said. “There are not going to be many winners in this space, but it is going to be a part of our food system.”
At Bowery, “there is no question we are reinventing farming, but what we are doing is reinventing the fresh-food supply chain,” said Irving Fain, its founder, and chief executive. Credit...Brian Fraser for The New York Times
Indoor farm companies view their competition as the large, industrial growers that produce fruits and vegetables bred to withstand processing and shipping — not smaller farmers using more natural growing techniques. The battle, they say, is against monoculture, not farmers who maintain healthy soil and feed their communities. Hydroponic farms can help develop new and more diverse plants, and reduce overall pesticide use.
“The only thing we are trying to do is get as good as farmers were 100 years ago,” said Mr. Malechuk, the hydroponic lettuce grower.
Indoor farming is a bet on the nation's agriculture, said Jonathan Webb, the Kentucky-born founder and chief executive of AppHarvest.
“The American farmer is already obsolete,” he said, pointing out that the United States imports four billion pounds of tomatoes from Mexico every year. “Our hope is we can get farmers back on U.S. shelves.”
Even Mr. Colicchio, who led a campaign against genetically modified food and has long been a champion of small farmers, said the two styles of farming can coexist. “We’re going to need a lot of tools in the toolbox,” he said.
Ouita Michel, a chef in Kentucky, likes AppHarvest because the company is creating jobs and growing tomatoes she is happy to use in her restaurants.
But technology, she said, will never trump the magic of soil. “Nothing will ever replace my summer Kentucky tomatoes.”
Lead photo: AppHarvest, the nation’s largest hydroponic greenhouse, opened in January in Morehead, Ky. — one in a new breed of huge indoor produce farms that use technology to fine-tune flavor, texture, and other attributes. Credit...Luke Sharrett for The New York Times
CEA Food Safety Coalition Details First Indoor-Farming Standards
Inspired by rising food safety concerns after the 2018 Thanksgiving romaine recalls, the CEA Food Safety Coalition is launching the first-ever food safety certification program specifically designed for indoor-grown leafy greens.
By AMY SOWDER June 2, 2021
(Photos courtesy CEA Food Safety Coalition)
Inspired by rising food safety concerns after the 2018 Thanksgiving romaine recalls, the CEA Food Safety Coalition is launching the first-ever food safety certification program specifically designed for indoor-grown leafy greens.
“The new standard champions CEA-grown produce as a critical component of safe and secure domestic food supply, especially in times of business disruption as experienced during the COVID-19 pandemic,” Marni Karlin, executive director of the CEA Food Safety Coalition, said in a news release.
Controlled Environment Agriculture, or CEA, has exploded with investment and sales the last few years, as more urban, indoor farms crop up to meet demand.
Soon after organizing in 2019, the coalition educated the Centers for Disease Control and Prevention and Food and Drug Administration about the limited risk of contamination from indoor-produced leafy greens, Karlin said.
“During the Thanksgiving 2019 romaine recall, those government agencies were transparent that CEA leafy greens were safe and did not extend the recall to them. This enabled retailers to keep CEA-produced greens on the shelves and consumers to safely buy CEA leafy greens for their families,” she said in the release.
The team had to create a standard that made sense across the board for the variety of production processes included in CEA — from greenhouses and vertical farming to aeroponic, hydroponic and aquaponic.
“Current food safety standards were written for the field, and many don't adequately address the unique attributes of controlled indoor environments,” Karlin said in the release. “Traditional food-safety risk profiles associated with conventional farming include examining the physical hazards and microbial hazards from water use, herbicide, and pesticide use, and impact from animals and animal byproducts. These do not impact CEA growers in the same way, if at all.”
As a result, a separate set of guidelines is needed.
This new certification process and the accompanying on-pack seal will spread awareness about CEA and unify these growers while differentiating them from traditional field growers, she said.
“It will allow producers to adhere to a standard tailored to indoor production and give incoming entrepreneurs guidance on the measures they'll need to meet to align with the existing industry,” Karlin said in the release.
The certification program is available to all CEA food safety coalition members for a small fee, and an external audit to the standard must be completed on an annual basis.
Growers are assessed across four key areas:
Hazard analysis: All potential hazards associated with a producer’s practices, including use of water, nutrients, growing media, seeds, inputs, and site control;
Water: Often used by CEA producers, recirculated water requires a continuing hazard analysis throughout its life cycle and zone-based environmental monitoring based on company-specific risk assessment, she said;
Site control: All food contact surfaces and adjacent food contact surfaces, including plant containers, must be considered and associated with potential farm physical hazards, including lighting, robotics, sensors, equipment, and utensils; and
Pesticide and herbicide use: Even though CEA-produced greens generally don’t use pesticides or herbicides, this module evaluates the potential risk of pesticide contamination and addresses if residue testing is required, she said.
“Consumer interest in food labels is high and shows a genuine desire to shop smarter,” Karlin said. “For consumers to truly make informed purchasing decisions, we need to explain what the labels mean, the process of certification and which labels they can trust.”
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
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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.
Grōv grass grown in the Olympus machine at the Bateman Mosida Farms. Photo from Grōv Technologies
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 tent at the Bateman Mosida Farms. Photo from Grōv Technologies
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.”
Olympus Tower Farm at Bateman Farms in Mosida, UT. Photo from Grōv Technologies
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.
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
CHINA: $500 Billion To Bring All World Crop Farming Indoors
China will build 2 Million hectares (20 billion square meters) of controlled environment greenhouses by 2025 and this will produce half of their vegetables and crop needs
Brian Wang | April 3, 2021
China will build 2 Million hectares (20 billion square meters) of controlled environment greenhouses by 2025 and this will produce half of their vegetables and crop needs. Temperature, humidity, lighting would all be under controlled conditions. It would not matter if there were new extreme temperature swings outside or if there was drought. The needed food and water would be immune to any projected climate change over the next 500-1000 years.
Alibaba sells greenhouses for as little as 70 cents per square meter. The bulk, high volume cost to the manufacturer is about 50 cents per square meter. If installation labor costs are 50% of the 2 million hectare project then it would cost about $20 billion for the 2 million hectare project. $40 billion would be sufficient for China to make 40 billion square meters of climate-controlled greenhouses which could produce all vegetables and crops. It would cost $260 billion to make greenhouses for the food production of the entire world.
Indoor climate-controlled agriculture has almost no need for pesticides and uses 7% of the water. This would take up 3-5% of the total land area of open-air farming.
Additional funds could be provided for higher demand from population growth and for some level of automation, sensors and other systems.
There is an economic analysis of smaller scale greenhouse and vertical farming. The all-in delivered cost of a pound of greens grown in a commercial greenhouse is estimated to be $2.33 per pound. It cost $18.3 million to build 280,000 square feet (2.6 hectares) of commercial greenhouse in the USA. The total cost to grow would be just over $3.0 million per year for 2 million pounds of greens or $1.52 per pound. BrightFarms employs 165 people for the three greenhouses. $1.10 per pound consists of employee costs.
The cost estimates for greenhouses could be brought down to $1 per pound or less with large-scale construction. Below are costs for 2.8 hectare systems in the USA.
There is value to having national food security and not having to depend on imported food. Ten billion to twenty billion dollars per year in indoor farm subsidies closes the cost gap with open-air farming.
China’s controlled environment system will have a lot of automation and lower construction costs because of the massive scale and lower costs in China.
PNAS – Wheat yield potential in controlled-environment vertical farms
Wheat growing is vastly more land and water-efficient but costs are not yet competitive with open-air farming.
Wheat is the most important food crop worldwide, grown across millions of hectares. Wheat yields in the field are usually low and vary with weather, soil, and crop management practices. We show that yields for wheat grown in indoor vertical farms under optimized growing conditions would be several hundred times higher than yields in the field due to higher yields, several harvests per year, and vertically stacked layers. Wheat grown indoors would use less land than field-grown wheat, be independent of climate, reuse most water, exclude pests and diseases, and have no nutrient losses to the environment. However, given the high energy costs for artificial lighting and capital costs, it is unlikely to be economically competitive with current market prices. Wheat grown on a single hectare of land in a 10-layer indoor vertical facility could produce from 700 ± 40 t/ha (measured) to a maximum of 1,940 ± 230 t/ha (estimated) of grain annually under optimized temperature, intensive artificial light, high CO2 levels, and a maximum attainable harvest index. Such yields would be 220 to 600 times the current world average annual wheat yield of 3.2 t/ha. Independent of climate, season, and region, indoor wheat farming could be environmentally superior, as less land area is needed along with reuse of most water, minimal use of pesticides and herbicides, and no nutrient losses.
Meat production could also be brought under climate control. The feed for cows, pigs, chicken and fish could be either brought into greenhouses or converted to insects. Insect feed can be twenty to one hundred times more space and water-efficient.
Meat can be converted into cell-based production in large vats. This would be similar to the industrial production of beer.
There would be zero risk of mass starvation caused by temperature or drought-induced crop failure.
There may not be a need to bring all crops indoors. But if China brings half of all of their crops indoors in five years it clearly shows that civilization can bring all crops and farming indoors at any time. The cost as I have shown is less than 0.5% of global GDP for the crops and a few percent to deal with the meat and feed as well.
It is likely only truly economical (even with China’s mass production) to bring vegetable and fruit farming indoors. If China has indoor vegetable and fruit production at $1 per pound then other countries could follow at different levels based upon how cost-competitive indoor farming is against open-air farming for a particular crop. There is also the question if people will pay more for greenhouse crops. Greenhouses allow for year-round crop production. This means consistent prices and availability for fruits and vegetable year round. It also means indoor farms can be inside of cities for fruit and vegetables that are fresh from the tree and vine. The greenhouse crops would also be mostly or completely free of pesticides. Indoor farming share will grow as efficiency and costs are improved.
I think 20-60% of all crops (mainly higher-value fruits and vegetables) globally will go indoors by 2030 and gradually more as indoor becomes a lower cost and superior product to outdoor farming. Greenhouse farmed fruits and vegetables can have a higher quality versus outdoor grown fruits and vegetables.
Some of the advantages of protected culture greenhouse crops are:
Season extension is just one of the advantages gained from greenhouse growing. Protected crops are less apt to be damaged by wind, rain, and hail so the percentage of marketable products is higher. Yield is often higher as well, if you can provide optimum growing conditions for each crop. Greenhouses protect crops from many diseases, particularly those that are soilborne and splash onto plants in the rain. And greenhouse crops may be protected from common field pests. Of course, greenhouse crops have their own particular problems such as foliar disease, aphids, and whiteflies, so vigilance is still required.
SOURCES- Alibaba, PNAS, agfunder news
How Can The World Benefit From Indoor Vertical Farming
Due to urbanization and enormous industrial development, we are losing our natural sources and farming land each year, bit by bit
by Bhok Thompson in Lifestyle
Have you ever sat down and wondered about the uncertainty of our future? With the world population growing and expanding each day, will we reach a point where we might face a scarcity of food? It has been speculated that three decades later, our world population will reach nearly 10 billion people. And feeding such a massive population is nothing less than a challenge.
Due to urbanization and enormous industrial development, we are losing our natural sources and farming land each year, bit by bit. As a matter of fact, according to a report published in 2015, our planet has lost 1/3 of its cultivable lands, which is quite alarming given the fact that our population is expanding each year.
That said, nothing can be predicted for sure about how much more arable land humanity will lose in the upcoming decades. Nonetheless, food demands will continue to grow proportionally to the growth of the world population. Many believe that vertical farming and indoor vertical farming software installation is the ultimate solution to our potential world hunger problems.
Read on to find out more about vertical farming and the future of our agriculture. Let us cover the basics first:
What Exactly is Vertical Farming?
You might have already figured out that vertical farming is all about producing and cultivating food on specifically vertically inclined surfaces. Instead of the traditional food cultivation methods of farming veggies and other food items on horizontally inclined surfaces, such as greenhouses and agriculture fields, the method of vertical farming intends to produce foods in vertically established layers with structures resembling a skyscraper. Nonetheless, the structures can also identify a shipping container and a warehouse.
For the effective production of foods in the vertical farming method, the integration of technology is mandatory. This is where the indoor vertical farming software comes in. With the integration of CEA (Controlled Environment Agriculture) technology, indoor vertical farming has been made possible.
The integration of the technology includes induced control of humidity, light, climate, temperature, and artificial gases that contribute to the possibility of growing indoor foods, herbs, and medicine. In this way, you can think of vertical farming in terms of a greenhouse where natural sunlight is induced with the help of metal reflectors and artificial light sources.
Nonetheless, indoor vertical farming’s primary goal is the optimization of food production within a limited space.
Why The World Needs Indoor Vertical Farming Software?
Vertical farming is the ultimate solution that can save us from hunger and starvation in the long run. Vertical farming allows more output and food production while using a small area of cultivation. The below-given list includes the essential benefits of vertical farming:
Preparing for The Future
As we mentioned earlier, four decades from now, our world population is more likely to expand to 10 billion. Not to mention that nearly 70% of the world population is expected to live in industrialized and urbanized areas, which will also peak food demand. The proficient use of vertical farming will prepare us for any upcoming challenges related to food scarcity.
All-Season Crop Production
Vertical farming enables us to produce more crops while using the limited square footage of the production area. If we were to make a rough estimation about the potential crop production, you could think of it in the following ways. For example, one acre of the indoor vertical farming area will allow you to produce crops worth four to six acres of outdoor capacity. Suppose you are running an indoor vertical farm inside a 30-story skyscraper that includes a basal area of five acres. With the integration of vertical farming software, you will produce food/ crops worth 2500 acres.
Unaffected by Weather and Climate Issues
Amongst the top benefits of indoor vertical farming is that this farming method is explicitly unaffected by unfavorable outside temperatures and weather conditions. Since everything is controlled and monitored inside, the crops and foods cultivated with indoor vertical farming are least affected by natural calamities. That said, indoor vertical farming allows you to produce food throughout the year without worrying about favorable weather conditions.
Indoor vertical farming is also good for biodiversity. This method is essentially environment friendly and exposes farmers to lesser risks and diseases.
The World’s First Autonomous Greenhouse Manager
Geert van der Wel started in the role of Autonomous Greenhouse Manager at Blue Radix. He represents the human support side of the Crop Controller service in addition to the smart algorithms that control greenhouses
07-04-2021 | Goedemorgen
Early February, Geert van der Wel started in the role of Autonomous Greenhouse Manager at Blue Radix. He represents the human support side of the Crop Controller service in addition to the smart algorithms that control greenhouses. Read more about how Geert helps customers and about his background. As he says himself: "I was almost literally born among tomatoes in De Lier, where my parents had a tomato greenhouse."
Name: Geert van der Wel
Home: I’ve been married to Tessa for 16 years and we have two children. We have lived in Burgundian West Brabant since 1998.
Childhood: Almost literally, I was born among the tomatoes in De Lier, where my parents had a tomato greenhouse.
Study: I completed Secondary Horticultural School in De Lier, and also undertook several (horticultural) studies.
Work experience: I worked in my parents’ tomato greenhouse right from my childhood. After finishing my studies my partner and I became owners of Kwekerij Polderwel for ten years, growing tomatoes on 2.5 hectares. We wound up this undertaking because of the construction of the A4 highway between Antwerp and Rotterdam. Then I did three years as a manager at the Nuijten plant nursery, and when this firm ceased trading I ended up at Nickerson-Zwaan in Made; it later became known as Hazera Seeds. For the first four years, I worked in the Planning & Control department, moving on to become Product Manager High-Tech Tomatoes for the final five years.
What can you do for growers as an Autonomous Greenhouse Manager?
“Blue Radix offers autonomous growing as a service. So alongside our smart algorithms controlling the greenhouse, our Crop Controller service also has a ‘human side’, and customers get daily support from an off-site Autonomous Greenhouse Manager (AGM). So as that AGM I’m constantly looking over the customer’s shoulder, and I’m their first point of contact. Right from the start, I guide clients intensively in taking their first steps into the world of algorithms. They are given an extensive onboarding program where they get explanations on the steps to autonomous growing, the operation of the algorithms, and the Crop Controller portal. I also monitor the management of the greenhouse continuously and discuss the progress on a regular basis, including through reports. My work experience has taken me through all the processes involved, from seed to the final product. This is what enables me to support our customers fully as AGM, to advise them, and to help them to realize their crop strategies.”
Blue Radix offers autonomous growing as a service; why is this important?
“Cultivation is the core business of every greenhouse company. To leave this completely to autonomous control requires a lot of trust from the customer. We are very aware that autonomous growing is still quite new and innovative. Providing good service with the support of the AGM lets us guide growers fully in working with algorithms. Our experience shows that customers are more likely to abandon their own processes and working methods step by step because there’s always someone monitoring the entire process.”
Describe your day. How do you monitor greenhouses worldwide?
“Every day I open the Crop Controller portal to see how the algorithms are behaving in terms of our various customers’ crop strategies. I contact the grower if any anomalies appear, or if there’s a technical issue I get in touch with the Blue Radix product developers. This also applies to feedback I receive from customers on how we can optimize Crop Controller still further.”
What do you like about your job? And what are your views on autonomous greenhouse management?
“In the horticultural world, it’s great to see that there’s a continuous search for innovations, and specifically for autonomous growing. I used sensors and digital tools on a small scale when I was a grower myself. But at that time I got very little guidance on how they worked and how to interpret it all. Now I use this experience to give our customers good information so that ultimately they’ll be able to grow autonomously in the best possible way!”
Got a question for Geert, or about autonomous growing generally?
Send us a message, and we’ll be happy to help you.
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.
Vertical Farming Startup Oishii Raises $50m In Series A Funding
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone.”
By Sian Yates
03/11/2021
Oishii, a vertical farming startup based in New Jersey, has raised $50 million during a Series A funding round led by Sparx Group’s Mirai Creation Fund II.
The funds will enable Oishii to open vertical strawberry farms in new markets, expand its flagship farm outside of Manhattan, and accelerate its investment in R&D.
“Our mission is to change the way we grow food. We set out to deliver exceptionally delicious and sustainable produce,” said Oishii CEO Hiroki Koga. “We started with the strawberry – a fruit that routinely tops the dirty dozen of most pesticide-riddled crops – as it has long been considered the ‘holy grail’ of vertical farming.”
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone. From there, we’ll quickly expand into new fruits and produce,” he added.
Oishii is already known for its innovative farming techniques that have enabled the company to “perfect the strawberry,” while its proprietary and first-of-its-kind pollination method is conducted naturally with bees.
The company’s vertical farms feature zero pesticides and produce ripe fruit all year round, using less water and land than traditional agricultural methods.
“Oishii is the farm of the future,” said Sparx Group president and Group CEO Shuhei Abe. “The cultivation and pollination techniques the company has developed set them well apart from the industry, positioning Oishii to quickly revolutionise agriculture as we know it.”
The company has raised a total of $55 million since its founding in 2016.
Lisette Templin, Professor At Texas A&M University - A Pioneering Woman In Agriculture
Lisette Templin is the director and founder of the Texas Urban Farm United (TUFU - TAMU) a startup vertical farm she and a couple of students began in 2019
According to Lenny Geist and Anne Amoury, with Kansas Freedom Farms, one of many pioneering women in agriculture is Lisette Templin, a professor of health and kinesiology at Texas A&M University (TAMU) in College Station, Texas. Lisette Templin is the director and founder of the Texas Urban Farm United (TUFU - TAMU) a startup vertical farm she and a couple of students began in 2019.
As a faculty member overseeing Physical Education, Templin is keenly aware of how food choices and essential daily nutrition are to overall animal and human health.
She and her students received a small grant from the TAMU public health school to go vertical. Templin has a number of hydroponic growing towers in her new venue she and a few co-workers maintain. Some of the all-natural forage is donated to the university’s “12th Can” food bank program to alleviate local hunger...clearly one of Templin’s strongest passions.
Lisette Templin (Photo credits: Texas A&M University)
“Food as medicine must play a more urgent and vital role in the health of our children and the health of our country. Indoor hydroponic farms can play a pivotal role in transitioning people off of medication from chronic diseases as well as strengthen the immune system.
Micro and macronutrient dense food grown locally can effortlessly replace food that is highly inflammatory to the human body while providing the needed phytochemicals that promote health,” she wrote recently. Templin is in the process of applying for grants and financial support in hopes of raising $1 million (USD) to erect a two-story CEA facility that will be home to hydroponic growing operations on the top floor with a kitchen, cafeteria, classrooms, and offices on the ground floor.
Photo credits: Texas A&M Urban Farm United / The Eagle
“Hydroponic food is about the impact of delivering maximum nutrient density to the immediate local community. Hydroponic vertical growing technology's innate potential is its ability to eradicate food deserts across our country,” Templin says. Clearly, she’s a Texas trailblazer with tall towers to tend.
According to Lenny Geist, "we need more like Templin, to improve agriculture and promote environmental stewardship. It behooves the stuffed shirts to follow the determined bunch out on the “north 40” -- the bunch that likes to wear Gucci or Louis Vitton heels just as much as they do Justin or Tony Lama boots."
"They aren’t afraid of hard work, trying new things, and exploring what’s possible even if it means a setback or two along the way," he adds. "Since they see these as learning opportunities to get better and march forward toward their ultimate objectives having gained greater perspectives. Someday, these movers and shakers or any of their sure-to-follow feminine disciples may just give the old, stodgy stuffed shirts the boot. There are lots of reasons to believe this will be for the best."
For more information:
Lisette Templin,
Texas A&M, Texas Urban Farm United
lisettetemplin@tamu.edu
www.agrilifetoday.tamu.edu
29 Mar 2021
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
FRANCE: Jungle Says It’s Cracked How To Make Vertical Farms Profitable
“No matter how good your product is, if the price is higher than the alternative, then you’re dead.”
“No Matter How Good Your Product Is,
If The Price Is Higher Than The Alternative,
Then You’re Dead.”
BY FREYA PRATTY
22 MARCH 2021
Jungle, a French vertical farming company that says it can produce ten to 30 times more food than traditional greenhouses, has raised €42m in new funding.
The company also says its focus on large-scale farms will help it overcome one of the biggest challenges facing vertical farming: how to make a profit.
Jungle’s new funding, €7m of which is in equity and €35m of which is debt financing, comes from Founders Future, a French investment firm focused on impact startups. Jungle is the firm’s first investment.
The company’s funding comes as the wider industry continues to grow fast. It was worth $2.2bn in 2018 but is expected to reach $12.8bn by 2026. Investor appetite is clearly there: vertical farming giant Infarm raised $170m at the end of last year.
Jungle is building a 5,500m2 farm 80km from Paris, where crops will grow on stacked platforms. The site is already partly operational and the company has secured contracts with French supermarkets Monoprix and Intermarche.
At present, it’s growing a mixture of aromatic herbs, greens and, unlike other vertical farms, flowers. It’ll be fully operational by the end of 2021.
Less pesticides, more local and a greater yield
Gilles Dreyfus, cofounder of Jungle.
“We don’t claim to be instigating a revolution, we are part of an equation that wants to be a solution,” explains Gilles Dreyfus, who cofounded Jungle in 2015.
For Dreyfus, vertical farming has several advantages. Crops can be grown close to cities, where the majority of consumers are, thereby reducing the environmental costs of transit.
Plants can also be grown on more frequent cycles than on traditional farms because they’re not seasonally dependent, and they’re also grown without using pesticides.
“Our most popular product, Green Basil, gives 14 harvests a year in the vertical farm, compared to 3 or 4 in the South of France, where the crop grows best outdoors.”
National food sovereignty
Being able to grow crops out of season means vertical farming can help countries achieve better food sovereignty, Dreyfus says.
“We have to go further and further from the country to get crops when they’re out of season,” he says. “Brexit import taxes on food have shown the complicated situations this can lead to.”
“If the price is higher, you’re dead”
Despite the benefits, vertical farming has often struggled with how to make a profit. “Having a viable financial model and an efficient farm is the main hurdle for vertical farming,” Dreyfus says.
“No matter how good your product is, if the price is higher than the alternative, then you’re dead.”
The company believes that bigger farms is the answer.
German company Infarm, which is aiming at profitability by 2023, places microunits into supermarkets. Jungle, which is aiming at profitability in 18 months time, will focus on large-scale production facilities that then supply a whole area.
“Price depends on scale and we’re not aiming for small-scale farms, we’re aiming for less farms but a lot bigger. If you activate the economies of scale you can get a very reasonable product,” he says.
The company’s aiming to sell food at 5% more than the cost of conventional alternatives, but at 20% less than organic foods grown on farms.
For Valentine Baudouin, partner at Founders Future which has invested in Jungle, the focus on large-scale farms is the key to profitability, and what makes Jungle stand out.
“They’ve answered the economic question of vertical farming, which is very important because you have many similar enterprises that haven’t done so.”
Jungle’s vertical farm warehouse.
Beyond salad?
A criticism often leveled at the vertical farming industry is whether it can grow beyond just salad leaves and herbs.
Unlike other farms, Jungle also grows flowers for the perfume industry, but Dreyfus says the other crops its working on, including cherry tomatoes and mushrooms, won’t be in supermarkets until 2023.
“You can grow virtually anything you want, except truffles — which is a real shame actually,” says Dreyfus. “But the question shouldn’t be, can we grow it, it should be, do we have the financial model to make it work?”
Jungle’s currently got a team of 25 people based in France, but will use the new funding to double its workforce by 2022. It also plans to open two new large-scale farms in France, including one in the south that’ll be twice as big as its first site.
Freya Pratty is Sifted’s news reporter. She tweets from @FPratty
Indoor Agtech: An Evolving Landscape of 1,300+ Startups
Our Indoor AgTech Landscape 2021 provides a snapshot of the technology and innovation ecosystem of the indoor food production value chain
March 17, 2021
Editor’s note: Chris Taylor is a senior consultant on The Mixing Bowl team and has spent more than 20 years on global IT strategy and development innovation in manufacturing, design, and healthcare, focussing most recently on indoor agtech.
Michael Rose is a partner at The Mixing Bowl and Better Food Ventures where he brings more than 25 years immersed in new venture creation and innovation as an operating executive and investor across the internet, mobile, restaurant, food tech and agtech sectors.
The Mixing Bowl released its first Indoor AgTech Landscape in September 2019. This is their first update, which you can download here, and their accompanying commentary.
Since the initial release of our Indoor AgTech Landscape in 2019, the compelling benefits of growing food in a controlled indoor environment have continued to garner tremendous attention and investment.
One of the intriguing aspects of indoor agriculture is that it is a microcosm of our food system. Whether within a greenhouse or a sunless (vertical farm) environment, this method of farming spans production to consumption, with many indoor operators marketing their produce to consumers as branded products. As we explore below, the indoor ag value chain reflects a number of the challenges and opportunities confronting our entire food system today: supply chain, safety, sustainability, and labor. Of course, the Covid-19 pandemic rippled through and impacted each aspect of that system, at times magnifying the challenges, and at others, accelerating change and growth.
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Our Indoor AgTech Landscape 2021 provides a snapshot of the technology and innovation ecosystem of the indoor food production value chain. The landscape spans component technology companies and providers of complete growing systems to actual tech-forward indoor farm operators. As before, the landscape is not meant to be exhaustive. While we track more than 1,300 companies in the sector, this landscape represents a subset and serves to highlight innovative players utilizing digital and information technology to enhance and optimize indoor food production at scale.
Supply chain & safety: Where does my food come from?
The pandemic highlighted the shortcomings of the existing supply chain and heightened consumer desires to know where their food comes from, how safely it was processed and packaged, and how far it has travelled to reach them. A key aspect of indoor farming is its built-in potential to respond to these and other challenges of the current food system.
Indoor farmers can locate their operations near distribution centers and consumers, reduce food miles and touch points, potentially deliver consistently fresher produce and reduce food waste, and claim the coveted “local” distinction. The decentralized system can also add resiliency to supply chains overly dependent on exclusive sources and imports.
Growing local has many forms. Greenhouse growers tend to locate their farms outside the metropolitan area while sunless growers may operate in urban centers, such as Sustenir Agriculture in Singapore and Growing Underground in London. Growers like Square Roots co-locate their indoor farms with their partner’s regional distribution centers, and Babylon deploys its micro-farms solution on site at healthcare and senior living facilities and universities. Recently, Infarm announced it was expanding beyond its growing-in-a-grocery store model, to include decentralized deployments of high-capacity “Growing Centers” across a number of cities. Additionally, the value of “growing local” might take on a much larger meaning if your country imports most of its produce from other countries; a number of the Gulf region countries have announced major indoor growing initiatives and projects with AeroFarms, Pure Harvest, and &ever to address the region’s food dependence on other countries.
Organic produce sales jumped to double digit growth in 2020 as consumers are increasingly mindful of the healthiness of their food. The additional safety concerns due to the pandemic only accelerated this trend. While not typically organic, crops produced in the protection of indoor farms are isolated from external sources of contamination and are often grown with few or no pesticides. Human touch points are reduced as supply chains shorten and production facilities become highly automated. Through the CEA Food Safety Coalition, the industry has recently taken steps to establish production standards with a goal to keep consumers safe from foodborne illness.
Indoor farmers market their products as local, fresh, consistent and clean. This story is resonating with consumers as the growers seem to be selling everything they can produce, with many reporting significant sales growth in 2020. The direct connection to consumer concerns is also a key part of their ability to sell their branded products at a premium, which has been critical to financial viability for some growers. This connection can also enable them to collapse the supply chain further, at least at smaller scales, through direct sales and creative business models, e.g., sunless grower Willo allows subscribers to have their own “personal vertical farm plot” and watch their plants grow online.
Sustainability: Is my food part of the problem or part of the solution?
Farming, as with most industries, has been under increasing pressure to operate more sustainably, and indoor growers, with their efficient use of resources, have rightfully incorporated sustainability prominently into their narratives.
We are well aware of the impacts of climate change, including greater variability in weather patterns and growing seasons. The UN’s Food and Agriculture Organization projects that over the coming decades climate change will cause a decrease in global crop production through traditional farming practices, causing greater food insecurity. Indoor growing, which provides protection from the elements, consistent high yields per land area, and the ability to produce food year-round in diverse locations, including those unsuitable for traditional agriculture, can help mitigate this trend.
Water scarcity is projected to increase globally, presenting a national security issue and serious quality of life concerns. According to the World Bank, 70% of the global freshwater is used for agriculture. Indoor agriculture’s efficient use of water decreases use by more than 90% for the current crops under production. It is also common practice for greenhouses to capture rainwater and reuse drainage as does Agro Care, the Netherlands’ largest greenhouse tomato grower.
On the flip side, energy use, particularly in sunless facilities, is indoor growing’s sustainability challenge. Efficiency will continue to improve, but as recent analysis on indoor soilless farming from The Markets Institute at WWF indicated, there is an industry-wide opportunity to integrate alternative energy sources. Growers recognize this opportunity to decrease impact and improve bottom-line and are already utilizing alternative approaches such as cogeneration, geothermal sources, and waste heat networks. H2Orto tomatoes are grown in greenhouses heated with biogas generated hot water. Gotham Greens’ produce is grown in 100% renewable electricity-powered greenhouses, and Denmark’s Nordic Harvest will be running Europe’s largest indoor farm solely on wind power.
Labor: We’re still hiring!
There are labor challenges and opportunities throughout the food system value chain, and this couldn’t be more acute than on the farm. Farm operators—both in-field and indoor—find it difficult to attract labor for the physically demanding work. Even before the pandemic, the hardening of borders in Europe and the US created a shortage of farmworkers for both field and greenhouse production. In addition, grower and farm manager-level expertise is in short supply, exacerbated by an aging workforce and the rapid addition of new indoor facilities. While operators would like to see more trained candidates coming from university programs, they are also looking to technology and automation to relieve their labor challenges.
Automation of seedling production and post-harvest activities is already well established for most crops in indoor farming. In addition, the short growth cycle and contained habit of leafy greens lends them to mechanization. For example, the fully automated seed-through-harvest leafy green systems from Green Automation and Viscon have been deployed in major greenhouse operations like Pure Green Farms and Mucci. On the sunless side, Urban Crop Solutions has uniquely implemented automation in shipping containers, and Finland’s NetLed has developed a fully automated complete growing system. Note that many of the larger-scale sunless growers have developed their own technology stacks and have designed labor-saving automation into their systems. For example, Fifth Season has robotics deployed throughout the entire production process.
Despite numerous initiatives, the challenging daily crop care tasks and harvesting for certain crops (tomatoes, peppers, cucumbers, and berries) have not yet been automated at scale. However, planned, near-term commercial deployments of de-leafing and harvesting robots offer the promise of significantly altering labor challenges. Software technologies, like those from Nitea and Hortikey address labor management, crop registration, yield prediction, and workflow/process management for the indoor sector and strive to improve operational efficiencies for a smaller workforce.
Technologies that provide, monitor, and control climate, light, water, and nutrients are already deployed in today’s sophisticated indoor growing facilities and are fundamental to maintaining optimal conditions in these complex environments. They also form the base for the next innovation layer, i.e., crop optimization and even autonomous control of the growing environment based on imaging and sensor platforms (like from Ecoation, iUNU, and 30MHz), data analysis, machine learning, digital twins and artificial intelligence. Recent events like the Autonomous Greenhouse Challenge have successfully explored the potential of AI to “drive horticultural productivity while reducing resource use and management complexity”. Emerging commercialized autonomous growing innovations, such as the Blue Radix Crop Controller and Priva’s Plantonomy, promise to extend and enhance the reach of available grower expertise, particularly in large and multi-site operations.
Where do we go from here?
Since we created our initial Indoor AgTech Landscape, there has been positive change and reason to be optimistic about the future. But, as with any evolving market and sector of innovation, it can be a bumpy ride. Some believe CEA is not the answer to our food problems because not everything can be economically grown indoors today. We see indoor ag as just one of the approaches that can help fix our food system and it should be applied when it makes sense. For example, tomatoes sold through retail are already more than likely grown in a greenhouse. Expect more crops to be grown indoors more economically with further advancements.
One aspect of our previous landscape was to increase awareness that, despite the fervor surrounding novel sunless farming, greenhouse growing was already well-established. Dutch greenhouse growers have demonstrated the viability of indoor growing with 50-plus years of experience and more acres “under glass than the size of Manhattan.” The recent public offering and $3 billion market cap of Kentucky-based greenhouse grower AppHarvest also clearly raised awareness! Other high-profile and expanding greenhouse growers, including BrightFarms and Gotham Greens, have also attracted large investments.
The question is often asked, “which is the better growing approach, sunless or greenhouse?”. There is no proverbial “silver bullet” for indoor farming. The answer is dictated by location and the problem you are trying to solve. A solution for the urban centers of Singapore, Hong Kong and Mumbai might not be the same as one deployed on the outskirts of Chicago.
Regardless of approach, starting any type of sizable tech-enabled indoor farm is capital intensive. A recent analysis from Agritecture indicates that it can range from $5 to $11 million dollars to build out a three-acre automated farm. Some of the huge, advanced greenhouse projects being built today can exceed $100 million. Given the capital requirements for these indoor farms, some question the opportunity for venture-level returns in the sector and suggest that it is better suited to investors in real assets. Still, more than $600 million was raised by the top 10 financings in 2020 as existing players vie for leadership and expand to underserved locales while a seemingly endless stream of new companies continue to enter the market.
Looking forward, indoor farming needs to address its energy and labor challenges. In particular, the sunless approach has work to do to bring its operating costs in line and achieve widespread profitability. Additionally, to further accelerate growth and the adoption of new technologies in both greenhouse and sunless environments, the sector needs to implement the sharing of data between systems. Waybeyond is one of the companies promoting open systems and APIs to achieve this goal.
As we stated in the beginning of this piece, the indoor ag value chain reflects some of the challenges and opportunities confronting our entire food system today: supply chain, safety, sustainability, and labor. Indoor agriculture has tremendous opportunity. While it is still early for this market sector overall, it can bring more precision and agility to where and how food is grown and distributed.
While Everything Is Falling Apart, It Could Be Easy To Miss The Incredible Opportunities That Are Coming Together Right Now
Check out the awesome opportunities growing on with access to the CEA census provided by Agritecture Autogrow and global market reports by Forward Fooding and United Nations
Take a look at the state of agriculture renaissance, with thousands of companies, and millions of people working toward food system transformation designed to sustainably feed 10B people, with 70% living in cities, using less energy, water, and waste, and reversing climate change.
Check out the awesome opportunities growing on with access to the CEA census provided by Agritecture Autogrow and global market reports by Forward Fooding and the United Nations
Some of the Numbers:
5.3k+ companies
$65B invested since 2010
$17B 2020 (up from $15B 2019) 42% CAGR
21% of funding went into AgTech and CEAs
5% went to digital services
48% to food delivery
Impact is being divided into five sustainable food action tracks - 10% Access, 35% Consumption, 40% Production, 5% Equity, and 15% Resilience aimed at innovative disruption.
Out of 300+ CEAs
40% were founded in the last two years
36% got funding from family and friends
35% from angel investors
80% were operating in indoor vertical farming
49% had no agriculture experience
46% were between ages 21-30
28% prefer using Coco Coir as a soilless growing medium
Largest crops microgreens, salad greens, leafy greens and herbs.