Vertical Farming: Growing Up After The Pandemic

July 29, 2021

The Top 5 Benefits of Vertical Farming for Building a Sustainable and Resilient Fresh Food Supply Chain

“The COVID-19 crisis has really shown the cracks in the system. And I think that it was a test by Mother Nature to say, ‘Humanity, get your act together because your food systems are pretty fragile.’" This was an observation made by Dr. Nate Storey, co-founder and Chief Science Officer at Plenty, one of America’s leading indoor farming companies. Dr. Storey participated in a recent vertical farming webinar, co-presented by Heliospectra and the Association for Vertical Farming (AVF). Its purpose was to discuss the road ahead for vertical farming and building a sustainable blueprint to supply food to the world.

 The global response to the pandemic had an impact on all industries, and the food supply chain was not exempt:

• Laborers were unable to tend to the crops.

• Farmers were unable to get their produce to market.

• Restaurants, schools, and independent stores were shuttered.

• Consumers had to adapt to different ways to source their food.

As COVID-19 restrictions are easing around the globe, one of the things we have learned from the pandemic is that it is time to redesign and reengineer the food supply chain. Vertical farming may be the answer. Here are the top 5 benefits of vertical farming for building a sustainable and resilient fresh food supply chain:

1.) Proximity to Markets Results in Efficient Distribution

Transportation channels were disrupted as governments responded to the pandemic, which made it difficult for rural farmers to get their fresh produce to market. Vertical farms have a much smaller footprint compared to traditional field farms, which means they can be established inside, or closer to, urban areas. Heliospectra’s CEO, Ali Ahmadian, remarked during the webinar that “Urbanization is increasing, and by 2050 we're going to have close to 70% of the world’s population concentrated in urban areas. The population is growing, and COVID-19 has shown us that current food supply logistics are not sustainable when under stress. Going forward, we need to find ways to produce more food locally, where the population lives.” Proximity to market should also help reduce transportation costs and CO2 emissions, while time to market and produce freshness should improve.

2.) Innovative Technology Boosts a Growing Industry

Vertical farming is still in its infancy, but Dr. Storey noted, “We’re on the cusp of huge growth and expansion as an industry. In the next 10 to 15 years, vertical farming will rise as one of the dominant forms of agriculture.” He continued, “Technology has caught up with the vertical farming vision, and we're going to start to see tremendous growth over the next decade. I'm pretty excited about that.”  

Some of the fundamental technologies available to vertical farmers today include the ability to control and monitor:

• Lighting

• Irrigation

• Nutrients, PH, and CO2 levels

• Air temperature and humidity

• AI, big data, and intelligent controls

Vertical farms address many of the shortcomings of traditional field farms. Dr. Joel Cuello, a Professor of Bio-Systems Engineering at the University of Arizona, noted that “Vertical Farming is where artificial intelligence (AI) really has a big role to play. A lot of folks have already done optimizations in terms of lighting, temperature, relative humidity, but they are really done in a very limited scale. With big data and then applying AI, that is really a breakthrough waiting to happen in terms of vertical farming.”  

LED grow lights and recent advances in AI and intelligent control technology have been catalysts for sustainable year-round growing, enabling vertical farmers to maximize crop yields, refine crop quality, and standardize production with no seasonal downtime. By providing the light spectra that plants need and a controlled growing environment in which they flourish year-round, commercial vertical farming equipment can provide a sustainable and resilient way to feed the ever-changing world.

3.) Modern LED Systems Increase Energy Efficiency and High-Quality Crop Yields

The quantity, quality, duration, and distribution of light that each plant receives can be optimized. Innovative lighting technology developments have enabled vertical farmers to produce more quality food with less. Dr. Storey commented, “At Plenty, the primary tech inputs are LEDs and semiconductor technologies. As the cost of LEDs goes down and the efficiencies go up, we reap the benefits with very little investment on our part.” He continued, “We have created our own technology cost curve around indoor agriculture, which shows costs going down and quality going up. An illustration of that would be yield at Plenty has gone up 12X in the last 18 months. We have improved yield to the same unit of energy by 12X.”

4.) Labor Profile Shift Reduces Operational Overheads

There has been more recognition since COVID-19 of the inherent benefits of indoor/vertical farming, which can produce more with fewer hands. Lack of labor, particularly in times of global crisis, is a big contributor to food insecurity. The promise of vertical farms is that they could become a factor for resilience in any food supply chain. Dr. Storey commented, “With vertical farming, the supply chain is less complicated. It changes the shape of the labor profile of the business, from employing many workers in the field, which is a source of instability for field production, to employing much smaller numbers of very highly trained people that are operating robotics and managing production lines.”

5.) Modular and Scalable Design to Meet Changing Market Demands

Another benefit of vertical farming is its ability to quickly respond to food demand. Vertical farms can be modularized, and the modules can be shipped on pallets and quickly set up where the demand lies. They can also be added to and scaled to accommodate the rotation of crops according to market needs. This scalability enables farmers to establish vertical farms quickly and anywhere there is a need for food. It can also help farmers meet latent market demands. Storey commented, “When we look at the market, we see a world that consumes only 30% of what it should in terms of fresh fruits and vegetables. So, as we talk about scaling farms, we also have to talk about latent demand, like how much demand is out there that isn't being accessed because of low quality or just the lack of access to fresh food.” The potential for scalable, modular farms to fill this market need is enormous.

The COVID-19 crisis revealed weaknesses in the food supply chain. Storey commented, “We already had a system under stress that was beleaguered by rising labor prices, by the extended supply chains, and the fact that most of the consumers have been separated from the producers.” He continued, “The places where we produce the food and the places where we consume the food have been stretching out further and further and further. In many cases, it's a global supply chain now. We've been pushing the field to its max.”  

Want to know more? Watch the entire webinar: The Road Ahead for Vertical Farming Building Tomorrow's Industry Blueprint Today. WATCH NOW  

Securing Food Supply For The Long Term

While officially classified by the United Nations as ‘food secure’, its arid climate and widespread desert conditions, mean that the GCC is heavily dependent on food imports to meet local demand. In the UAE for instance, near­ly 90 percent of demand is met through imports.

The region’s depend­ence on imports is a significant food security risk to the region. The Covid-19 pandemic has further exposed the vulnerabilities of the global food supply chain, making it clear that any long-term disruptions to global food networks could have catastrophic consequences.

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Investing in food security
Even before Covid-19, the region’s food industry was undergoing radical transformation as governments implemented new strategies in response to population growth and climate change, while producers were reacting to rapidly changing consumer behavior, and the need for greater efficiency and sustainability.

To counter the effects of the region’s arid climate, the UAE, along with other governments in the region, has invested in cutting-edge food production and distribution techniques such as hydroponics and vertical farming, smart irrigation, and aquaponics. And it is clear that advanced technologies such as robotics and AI offer exciting new opportunities for the food F&B sector.

Building food security
Countries that have steadily worked towards strengthening their internal production capabilities and logistics networks over recent years find themselves much better placed to ride out the crisis. This is evidenced by the relative ease with which GCC governments were able to manage food demand during the pandemic.

Securing Supply, the latest briefing paper produced by MEED in partnership with Dubai-based Mashreq Bank, discusses the food security strategies underway in the GCC and Egypt, including the shifting focus on self-sufficiency in sectors such as fisheries, dairy, and poultry; enhancing in-country reserves; and growing investments in agricultural technology.

Download the paper here.

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29 Mar 2021

Bringing The Future To life In Abu Dhabi

Amid the deserts of Abu Dhabi, a new wave of entrepreneurs and innovators are sowing the seeds of a more sustainable future.

Image from: Wired

A cluster of shipping containers in a city centre is about the last place you’d expect to find salad growing. Yet for the past year, vertical farming startup Madar Farms has been using this site in Masdar City, Abu Dhabi, to grow leafy green vegetables using 95 per cent less water than traditional agriculture. 

Madar Farms is one of a number of agtech startups benefitting from a package of incentives from the Abu Dhabi Investment Office (ADIO) aimed at spurring the development of innovative solutions for sustainable desert farming. The partnership is part of ADIO’s $545 million Innovation Programme dedicated to supporting companies in high-growth areas.

“Abu Dhabi is pressing ahead with our mission to ‘turn the desert green’,” explained H.E. Dr. Tariq Bin Hendi, Director General of ADIO, in November 2020. “We have created an environment where innovative ideas can flourish and the companies we partnered with earlier this year are already propelling the growth of Abu Dhabi’s 24,000 farms.”

The pandemic has made food supply a critical concern across the entire world, combined with the effects of population growth and climate change, which are stretching the capacity of less efficient traditional farming methods. Abu Dhabi’s pioneering efforts to drive agricultural innovation have been gathering pace and look set to produce cutting-edge solutions addressing food security challenges.

Beyond work supporting the application of novel agricultural technologies, Abu Dhabi is also investing in foundational research and development to tackle this growing problem. 

In December, the emirate’s recently created Advanced Technology Research Council [ATRC], responsible for defining Abu Dhabi’s R&D strategy and establishing the emirate and the wider UAE as a desired home for advanced technology talent, announced a four-year competition with a $15 million prize for food security research. Launched through ATRC’s project management arm, ASPIRE, in partnership with the XPRIZE Foundation, the award will support the development of environmentally-friendly protein alternatives with the aim to "feed the next billion".

Image from: Madar Farms

Global Challenges, Local Solutions

Food security is far from the only global challenge on the emirate’s R&D menu. In November 2020, the ATRC announced the launch of the Technology Innovation Institute (TII), created to support applied research on the key priorities of quantum research, autonomous robotics, cryptography, advanced materials, digital security, directed energy and secure systems.

“The technologies under development at TII are not randomly selected,” explains the centre’s secretary general Faisal Al Bannai. “This research will complement fields that are of national importance. Quantum technologies and cryptography are crucial for protecting critical infrastructure, for example, while directed energy research has use-cases in healthcare. But beyond this, the technologies and research of TII will have global impact.”

Future research directions will be developed by the ATRC’s ASPIRE pillar, in collaboration with stakeholders from across a diverse range of industry sectors.

“ASPIRE defines the problem, sets milestones, and monitors the progress of the projects,” Al Bannai says. “It will also make impactful decisions related to the selection of research partners and the allocation of funding, to ensure that their R&D priorities align with Abu Dhabi and the UAE's broader development goals.”

Image from: Agritecture

Nurturing Next-Generation Talent

To address these challenges, ATRC’s first initiative is a talent development programme, NexTech, which has begun the recruitment of 125 local researchers, who will work across 31 projects in collaboration with 23 world-leading research centres.

Alongside universities and research institutes from across the US, the UK, Europe and South America, these partners include Abu Dhabi’s own Khalifa University, and Mohamed bin Zayed University of Artificial Intelligence, the world’s first graduate-level institute focused on artificial intelligence. 

“Our aim is to up skill the researchers by allowing them to work across various disciplines in collaboration with world-renowned experts,” Al Bannai says. 

Beyond academic collaborators, TII is also working with a number of industry partners, such as hyperloop technology company, Virgin Hyperloop. Such industry collaborations, Al Bannai points out, are essential to ensuring that TII research directly tackles relevant problems and has a smooth path to commercial impact in order to fuel job creation across the UAE.

“By engaging with top global talent, universities and research institutions and industry players, TII connects an intellectual community,” he says. “This reinforces Abu Dhabi and the UAE’s status as a global hub for innovation and contributes to the broader development of the knowledge-based economy.”

Forget Politics, Danny Ayalon Wants to Effect Change on The Ground

Having transitioned from politics to agriculture, Danny Ayalon shares how vertical farming, which provides fresh fruits and vegetables all year round, and lab-grown meat can rehabilitate the environment and dramatically reduce household expenditures.

Image from: Yehoshua Yosef

The coronavirus pandemic has drawn attention to humankind's carbon footprint. More than ever before we ask ourselves, how can we become more sustainable? Can we prevent pollution? How can we minimize waste? What about lowering emission levels? Will there be enough food for everyone in the future?

Danny Ayalon, a former ambassador and foreign policy adviser to three prime ministers-turned entrepreneur,  believes that the answer to many of the world's problems lies in modern agriculture. 

Having transitioned from politics to agriculture, he works with Future Crops, an Amsterdam-based company focused on vertical farming – the practice of growing crops in vertically stacked layers that often incorporates controlled-environment agriculture, which aims to optimize plant growth – and MeaTech, a company that creates lab-grown meat.

"Ever since the coronavirus came into our lives, we realized that man is not in charge of the universe," Ayalon told Israel Hayom. 

"Our control over the forces of nature, of Earth, of our future is more limited than we had thought. And when we are no longer in charge of the world, only three things guarantee our lives here: food, water, and energy security. Food, water, and energy are three resources that can be depleted and therefore literally cast a cloud on our world. 

"Experts have come to a conclusion that one of the most important fields to focus on is agriculture, and indeed we are currently witnessing the most significant agricultural revolution ever since the first agricultural revolution that took place about 10,00 years ago."

Q: Back then, in the first agricultural revolution, there was a need for a lot of land. 

"But today we have technology. The name of the game is to reach maximum output with minimum input in the smallest space possible. This is the holy grail of the new revolution. And that is how technology enters the picture. To grow fruits, vegetables and spices today requires lots of space. The technology we developed at Future Crops allows us to minimize the space, increase production and redefine the food supply chain."

Q: How exactly? 

"We have a nine-story hangar in Amsterdam to grow crops like coriander, basil, dill, and parsley. It has LED lights, and each plant gets exactly the amount of light it needs. We are the plant psychologists, [we] listen to all its needs and do everything to make sure the plant grows in the most optimal way. 

Image from: Future Crops

"If it lacks something, it immediately receives water. Everything is done without a human's touch. We use algorithms and big data in collaboration with world-class researchers from the Weizmann Institute. It is essentially the application of vertical farming, growing various crops in vertically stacked layers,  in enclosed structures, on soil platforms. 

"For example, if it takes a month to grow lettuce in an open field, in a vertical farm, it takes two weeks, half that time. There's also a significant reduction in water consumption, and no pesticides or sprays are used at all. Also, the produce is available in all seasons; it does not depend on the temperature. Whoever likes mangos and strawberries, for example, will be able to enjoy them all year round."

Q: So if produce is grown faster and within a smaller space, is it going to cost less?

"The prices might be a bit higher today because this technology and the various infrastructures require an economic return of the initial investment in them. With time, the process will become more efficient, and the investments will be repaid, so in the end, the prices that the consumer will need to pay will be lower than today. 

"Let me give you a simple example. Do you know how much a kilogram [2.2 pounds] of basil costs in Europe today? €90 ($108). In Israel, the price is €20 ($24). In the [United Arab] Emirates, where almost everything connected to food is imported – the prices go accordingly as well. Once you have more innovative vertical farms, consumers will pay much less."

Q: Should we expect vertical farm skyscrapers to pop up all over? 

"I'm not sure that we will need skyscrapers, as with time the facilities will become smaller. Imagine that in every supermarket there will be a vertical produce stand with all the vegetables and spices, and later also fruits which you pick on the spot, without the need to move the produce from place to place. That is why vertical farming is also called urban farming, meaning there is no need for fields; you can grow [produce] on the rooftop. No resource limits you."

Q: What about the taste? 

"Ours is a fresher and tastier product. I ought to give credit to the Weizmann Institute here. The challenge for them wasn't the quality of the vitamins but the taste, and they managed to achieve a great taste. In the Netherlands, Future Crops already sells parsley, and it tastes outstanding."

Q: Regular parsley lasts for about two weeks in the fridge. What about Future Crops parsley? 

"Our parsley has a two-month shelf life, and it does not oxidize within a week or two."

Q: If every country will be self-reliant in terms of agriculture, do you think it will affect relations between countries? 

"Economies will become self-sufficient eventually, which will ensure security with far fewer conflicts. There is less and less water in the Middle East, which might someday lead to tensions. We hope technology will reduce the tensions between countries, and territory will be less critical. Our world faces crucial challenges. Food and water security have the potential to either divide or bring us together and ensure our long-term existence. 

"By the way, in every developed Western country, like the United States, Australia, and also in Europe, issues of food security, climate, and greenhouse emissions are on the top of the political agenda. We are not talking about it [in Israel,] as security and foreign affairs take the central stage, but Israel does have a lot to offer here."

Q: Do we have the potential to become the Silicon Valley of advanced agriculture? 

"Israel takes tremendous pride in its actions that help save the world. Will we become the Silicon Valley of agriculture? There is no doubt about it. We can already see foreign investors who come here to look for opportunities, including my business partner Lior Maimon, co-founder and CEO of Silver Road Capital, and Steven Levin, one of the leaders of the US food industry. Silver Road Capital is a holdings and financial advisory firm with a broad portfolio of high-tech companies, as well as agricultural and food technologies, and represents international companies and funds in investments in Israel and the world. 

"Future Crops's goal is to raise 35 million shekels on the Israeli stock exchange to invest in enlarging the existing facilities and [set up] other production lines and facilities in Europe and other continents. We cooperate with the Albert Heijn supermarket chain [in the Netherlands] and a leading food chain in France."

Q: Vertical farming is estimated at $3 billion. Google and Amazon have invested hundreds of millions in the field as well. What is their goal? 

"A simple answer would be profit. A longer answer is that they [large corporations] understand that food has the highest demand. People cannot live without food and water, and Google and Amazon understand that potential."

Q: US President Joe Biden took office with the largest team of climate experts ever. That ought to give the field momentum. 

"Green energy and vertical farming will get a considerable boost. Climate change and green energy are well-rooted in the Democratic Party's ideology. 

"It is also possible that large companies entered the agriculture fields precisely because of the Biden administration; they are worried about their future. They are afraid of a certain dismantling, so focusing on secondary fields is part of a security scenario for them."

Q: Biden also wants to address greenhouse emissions, which are the result of the food production industry, mainly meat. Are Amazon and Google's food counterparts - McDonald's and Burger King - looking for meat substitutes?

"Firstly, cultured [lab-grown] meat does not require grazing land, cows do not need to be fed, and so much land can instead be turned into forests that support the environment. This is an optimistic industry that leaves us with a better world. 

"As for the meat alternatives market, there are two major companies in the US that produce plant-based protein, Beyond Meat, and Impossible Foods. 

"Impossible's burgers are already at Burger King, McDonald's has partnered up with Beyond Meat, and last November, it announced that it would create its own plant-based burger. 

"The problem is that pea protein [used in plant-based burgers,] does not have all the amino acids that animal protein contains. Also, they need to add additives to supplement for taste and smell.

"At MeaTech, where I'm a director, we are on our way to producing animal meat, cultured meat, real stakes: we take a cow's own stem cell from which meat can be produced in almost unlimited quantities. We also use 3D digital printing technology. And we also created a thin layer of meat, carpaccio. Needless to say, no cow was harmed in the process."

Image from: MeaTech

Q: Why do you use 3D printers? 

"Because there is no need for a human being's involvement. It is relevant now during the coronavirus pandemic when the food supply chain is disrupted. With such printers, your production can continue without delays, whenever you want. 

Also, it is theoretically possible to provide food for space flights. Astronauts who go out into space will not have to take food with them; rather, they will be able to produce it on the spot.

"People understand that crises like the coronavirus can disrupt the supply chain and are looking for alternatives. A 3D printer allows restaurants, supermarkets, and butcher shops to have meat without relying on the supply chain."

Q: The death rate from obesity is higher than the death rate from hunger. How will cultured meat affect these statistics? 

"It is possible to create meat with much less fat and more protein in each portion and add various nutrients in the future to strengthen the immune system and prevent disease. This, of course, requires a lot of research and approvals. Just like there's talk about customized medicine, so it will be possible to produce food that suits a person's genetic structure and body in the most optimal way."

Q: Will the cost of this meat also be optimal? 

"They will cost more in the beginning compared to regular meat because there are initial costs that have to be repaid. When it becomes a mass production, prices will drop over time."

Q: With your vast experience in politics, what do you think of Israeli politics these days? Do you ever consider a political comeback? 

"No election campaign goes by without someone making me an offer [to return to politics] but I'm not interested. Unfortunately, the Israeli government, and all governments in the Western world, have not been able to run their countries properly in recent years.

"For example, more of the government's national taks are transitioning to the private market or the third sector. We see that associations [are the ones] who take care of the needy, establish settlements in the Negev and in the Galilee, bring immigrants to Israel and provide Israelis with information. All these things should be done by the government.

"The Israeli government lacks vision, ideologies, every matter is personal and is charged with negative sentiments. If I do return one day, it will only happen after we change the government system which will take its power from small [political] parties.

"In my opinion, we need to transition to a regional choice, by district. This will result in higher quality politicians. How so? Because whoever wants to be elected will need to run and convince the people who live in his area and district, and they are the ones who know his activities best. Also, closed primaries should be avoided because they make all kinds of deals possible. That needs to change."

Warehouse Becoming Vertical Farms — And They’re Feeding New Jersey

Image from: New Jersey 101.5

New Jersey's vertical farms are transforming agriculture by helping farmers meet growing food demand.

New Jersey Agriculture Secretary Doug Fisher said that while conventional farming in outdoor fields remains critical, vertical farming has its advantages because of its efficiency and resistance to pests and thus less need for chemicals.

Vertical farming is the process of growing food vertically in stacked layers indoors under artificial light and temperature, mainly in buildings. These plants receive the same nutrients and all the elements needed to grow plants for food.

Vertical farms are also versatile. Plants may be growing in containers, in old warehouses, in shipping containers, in abandoned buildings.

"That's one of the great advantages — that we can put agriculture in the midst of many landscapes that have lost their vitality," said Fisher.

ResearchandMarkets.com says the U.S. vertical farming market is projected to reach values of around $3 billion by the year 2024.

The one drawback is that its operational and labor costs make it expensive to get up and running.

Image from: AeroFarms

In the past decade, however, vertical farming has become more popular, creating significant crop yields all over the state.

AeroFarms in Newark is the world's largest indoor vertical farm. The farm converted a 75-year-old 70,000-square-foot steel mill into a vertical farming operation. AeroFarms' key products include Dream Greens, its retail brand of baby and micro-greens, available year-round in several ShopRite supermarkets.

Kula Urban Farm in Asbury Park opened in 2014. Vacant lots are transformed into urban farms and there's a hydroponic greenhouse on site. That produce is sold to local restaurants.

Beyond Organic Growers in Freehold uses no pesticides and all seeds and nutrients are organic. There's a minimum of 12,000 plants growing on 144 vertical towers. On its website, it says the greenhouse utilizes a new growing technique called aeroponics, which involves vertical towers where the plant roots hang in the air while a nutrient solution is delivered with a fine mist. It also boasts that by using this method, plants can grow with less land and water while yielding up to 30% more three times faster than traditional soil farming.

Vertical farms in New Jersey help feed local communities. Many are in urban areas and are a form of urban farming.

Fisher predicts that vertical farms will be operational in stores and supermarkets around the state.

"It's continued to expand. There's going to be many, many ways and almost any area in the state has the opportunity to have a vertical farm," Fisher said.

Vertical Farming: Ugandan Company Develops Solution for Urban Agriculture

We speak to Lilian Nakigozi, founder of Women Smiles Uganda, a company that manufactures and sells vertical farms used to grow crops in areas where there is limited space.

Image from: How We Made It in Africa

1. How Did You Come Up with the Idea to Start Women Smiles Uganda?

Women Smiles Uganda is a social enterprise formed out of passion and personal experience. I grew up with a single mother and eight siblings in Katanga, one of the biggest slums in Kampala, Uganda. I experienced hunger and poverty where we lived. There was no land for us to grow crops and we didn’t have money to buy food. Life was hard; we would often go to sleep on empty stomachs and our baby sister starved to death.

Growing up like that, I pledged to use my knowledge and skills to come up with an idea that could solve hunger and, at the same time, improve people’s livelihoods, particularly women and young girls living in the urban slums. In 2017, while studying business at Makerere University, I had the idea of developing a vertical farm. This came amid so many challenges: a lack of finance and moral support. I would use the money provided to me for lunch as a government student to save for the initial capital of my venture.

I managed to accumulate $300 and used this to buy materials to manufacture the first 20 vertical farms. I gave these to 20 families and, in 2018, we fully started operations in different urban slums.

2. Tell Us About Your Vertical Farms and How They Work.

Women Smiles vertical farms are made out of wood and recycled plastic materials. Each unit is capable of growing up to 200 plants. The product also has an internal bearing system which turns 360° to guarantee optimal use of the sunlight and is fitted with an inbuilt drip irrigation system and greenhouse material to address any agro-climatic challenges.

The farms can be positioned on a rooftop, veranda, walkway, office building or a desk. This allows the growth of crops throughout the year, season after season, unaffected by climatic changes like drought.

In addition, we train our customers on how to make compost manure using vermicomposting and also provide them with a market for their fresh produce.

Image from: How We Made It in Africa

3. Explain Your Revenue Model.

Women Smiles Uganda generates revenue by selling affordable, reliable and modern vertical farms at $35, making a profit margin of $10 on each unit. The women groups are recruited into our training schemes and we teach them how to use vertical farming to grow crops and make compost manure by vermicomposting. Women groups become our outgrowers of fruits and vegetables. We buy the fresh produce from our outgrowers and resell to restaurants, schools and hotels.

We also make money through partnering with NGOs and other small private organisations to provide training in urban farming concepts to the beneficiaries of their projects.

4. What Are Some of the Major Challenges of Running This Business?

The major challenge we face is limited funds by the smallholder farmers to purchase the vertical farms. However, we mitigate this by putting some of them into our outgrower scheme which helps them to generate income from the fresh produce we buy. We have also linked some of them to financial institutions to access finance.

5. How Do You Generate Sales?

We reach our customers directly via our marketing team which moves door to door, identifying organised women groups and educating them about the benefits of vertical farming for improved food security. Most of our customers are low-income earners and very few of them have access to the internet.

However, we do also make use of social media platforms like Facebook to reach out to our customers, especially the youth.

In addition, we organise talk shows and community gatherings with the assistance of local leaders with whom we work hand in hand to provide educational and inspirational materials to people, teaching them about smart agriculture techniques.

6. Who Are Your Main Competitors?

Just like any business, we have got competitors; our major competitors include Camp Green and Spark Agro-Initiatives.

Image from: The Conversation

7. What Mistakes Have You Made in Business and What Did You Learn From Them?

As a victim of hunger and poverty, my dream was for every family in slums to have a vertical farm. I ended up giving some vertical farms on credit. Unfortunately, most of them failed to pay and we ended up with huge losses.

This taught me to shift the risk of payment default to a third party. Every customer who may need our farms on credit is now linked to our partner micro-finance bank. By doing this, it is the responsibility of the bank to recover the funds from our customers and it has worked well.

8. Apart from This Industry, Name an Untapped Business Opportunity in Uganda.

Manufacturing of cooler sheds for the storage of perishable agricultural produce is one untapped opportunity. Currently, Ugandan smallholder farmers lose up to 40% of their fresh produce because of a lack of reliable cold storage systems.

Providing a cheap and reliable 24/7 cold storage system would dramatically reduce post-harvest losses for these farmers.

Is AppHarvest the Future of Farming?

Special purpose acquisition companies, or SPACs, are red-hot right now, with investors clamoring to get into promising young companies.

In this video from Motley Fool Live, recorded on Jan. 28, Industry Focus host Nick Sciple and Motley Fool contributor Lou Whiteman discuss AppHarvest, one such SPAC that is looking to disrupt the agriculture industry. Here are the details on what AppHarvest wants to do, and a look at whether the company represents the future of farming.

Nick Sciple: One last company I wanted to talk about, Lou, and this is one I think it's -- you pay attention to, but not one I'm super excited to run in and buy. It was a company called AppHarvest. It's coming public via a [SPAC] this year. This vertical farming space. We talked about Gladstone Land buying traditional farmland. AppHarvest is taking a very different approach, trying to lean into some of the ESG-type movements.

Lou Whiteman: Yeah. Let's look at this. It probably wouldn't surprise you that the U.S. is the biggest global farm exporter as we said, but it might surprise you that the Netherlands, the tiny little country, is No. 2. The way they do that is tech: Greenhouse farm structure. AppHarvest has taken that model and brought it to the U.S. They have, I believe, three farms in Appalachia. The pitches can produce 30x the yields using 90% less water. Right now, it's mostly tomatoes and it is early-stage. I don't own this stock either. I love this idea. There's some reasons that I'm not buying in right now that we can get into. But this is fascinating to me. We talked about making the world a better place. This is the company that we need to be successful to make the world a better place. The warning on it is that it is a SPAC. So it's not public yet. Right now, I believe N-O-V-S. That deal should close soon. [Editor's note: The deal has since closed.] I'm not the only one excited about it. I tend not to like to buy IPOs and new companies anyway. I think the caution around buying into the excitement applies here. There is a Martha Stewart video on their website talking up the company, which I love Martha Stewart, but that's a hype level that makes me want to just watch and see what they produce. This is just three little farms in Appalachia right now and a great idea. This was all over my watchlist. I would imagine I would love to hold it at some point, but just be careful because this is, as we saw SPACs last year in other areas, people are very excited about this.

Sciple: Yeah. I think, like we've said, for a lot of these companies, the prospects are great. I think when you look at the reduced water usage, better, environmentally friendly, all those sorts of things. I like that they are in Appalachia. As someone who is from the South, I like it when more rural areas get some people actually investing money there. But again, there's a lot of execution between now and really getting to a place where this is the future of farming and they're going to reach scale and all those sorts of things. But this is a company I'm definitely going to have my radar on and pay attention to as they continue to report earnings. Because you can tell yourself a story about how this type of vertical farming, indoor farming disrupts this traditional model, can be more efficient, cleaner, etc. Something to continue paying attention to as we have more information, because this company, like you said, Lou, isn't all the way public yet. We still got to have this SPAC deal finalized and then we get all our fun SEC filings and quarterly calls and all those sorts of things. Once we have that, I will be very much looking forward to seeing what the company has to say.

Whiteman: Right. Just to finish up along too, the interesting thing here is that it is a proven concept because it has worked elsewhere. The downside of that is that it needed to work there. Netherlands just doesn't have -- and this is an expensive proposition to get started, to get going. There's potential there, but in a country blessed with almost seemingly unlimited farmland for now, for long term it makes sense. But in the short term, it could be a hard thing to really get up and running. I think you're right, just one to watch.

Advice For New Vertical Farmers: Grower Spotlight on Andrew Worrall

Last week we spoke about running a farm at LettUs Grow. What excites you about vertical farming? 

It’s the future of the industry. Also, the amount of salad that these farms can produce for their local community. We want to be able to eat salad all year round and we import to make that happen. However, just a small farm can easily provide for its local community, very efficiently and all year round. The sustainability element is also exciting: with our salad there’s no food miles, it’s very minimalistic. You could use an electric van or bike to distribute this crop if you wanted to. It’s a step forward in terms of what we need to do to take care of our planet. 

What do you think are the biggest downsides to vertical farming?

It’s still a new technology and it can be expensive. The biggest roadblock facing the industry is that we need more people and companies to collaborate together to make sure we can build these farms at a sensible rate, so we can provide farms to anyone. We want to be able to provide farms to people, communities and countries that don’t have a lot of money, so that they can provide affordable fresh produce to local people. 

How has vertical farming impacted your life?

Massively!  I wanted to find my passion, a job that I loved - that was very important to me. It’s satisfying to be in a position now where I’m very happy to be doing what I do and I look forward to going into work. I was happy to make the move from London to Bristol. I would have moved even further if it meant being able to continue working within this industry.

Image from: LettUs Grow

How do you see vertical farming playing a part in the future? 

When indoor farming first came about, it had a reputation of being competition for outdoor farming, which just isn’t the case. There’s so much we can’t grow that outdoor farming can provide, such as cereal crops. I’m glad we’re at a stage where indoor and outdoor farms can start to work together to optimise both methods. With these new relationships, there should be a good increase in the amount of indoor farms you’ll be seeing. What LettUs Grow offers with DROP & GROW™ is an exciting project because that’s a 40ft shipping container which can be placed pretty much anywhere. It’s not that big - it could go in a car park or behind a restaurant, but actually provide quite a lot of salad to that area. 

How much of our food should be grown this way? 

Good question. If you had asked me a while back I would have just said salad, but now I’ve changed my mind. Indoor farming can have a massive impact on propagation, especially aeroponics, because of how we aerate and nourish our roots. We could start lettuce for greenhouse projects and we can also propagate tomatoes, strawberries and tree whips. Propagating trees in this way could potentially be hugely beneficial and it’s something we want to do more of. 

We can also quickly grow large amounts of microgreens, baby leafs, herbs and we can grow fruiting crops like strawberries. We are slowly chipping away and it’s really exciting. I’m waiting to see if I can ever say I’ve grown or propagated every crop that can be grown in these farms! 

What do you think are the biggest benefits of vertical farming? 

How fast these crops can grow! The turnover can be as short as 5 days from seed, depending on the crop. Also how clean it can be - I’m very dedicated to making sure these farms are built to ensure they are easy to be maintained and clean. The most exciting part is the crop growth rate though - it’s incredible how fast our crop grows from seed to plate. In a very well maintained growing calendar, which Ostara® is great for supporting, you can optimise your beds so that the day you harvest can also be the day you germinate onto that same bed. Your farms can be forever providing salad at very fast rates. 

Image from: LettUs Grow

What was the biggest change you encountered during your years indoor farming?

Moving from being a production grower to an R&D grower. It has been a great change! As a production grower I knew what I needed to know about growing the plant safely and getting it onto a plate so it was good for the consumer. Now I’m fully optimising, learning and understanding the plants completely, so that I can help the grower that I used to be. We spend a lot of time on crop recipes to make sure that whoever we sell our farms to can start up very quickly and they won’t have to spend months developing their crops. If they have the customers and clients behind them, they can buy DROP & GROW and start producing salad as soon as it's been commissioned. 

What was the biggest change you encountered in the industry?

More and more people are speaking about what’s going on in the industry and getting involved. I get so many messages on LinkedIn with people who want to get into this career. It’s exciting to see that indoor growing is a career people can access now. When I was developing my skills I didn’t know I would end up in indoor farming. There are more opportunities than ever before. For example, our Crop Technician is doing a placement here for 2 years. The aim is that they can gain the skill sets and knowledge they need to then go off and do the same practice in any farm they want. 

What advice do you have for people who are looking to start a career in growing? 

Reach out to companies who are already out there. You could start off part-time or as an assistant. If you are patient and dedicated then it’s a journey I promise you won’t regret. It takes a lot of work, but the outcome is amazing - you’ll be learning so much about this new technology. You’ll also build great relationships: there are so many amazing people in this industry who are so interesting, with different backgrounds, who are willing to share their knowledge. You can always learn more and other people are a great source of that. 

What about for those looking to start a vertical farming business?

Do your homework.  There are people out there who you can reach out to and it’s very easy to get information. It’s very easy to get excited about the idea and jump straight into it, because it is exciting and can be very rewarding, but it’s really important to do it step by step. Know how to scale properly, learning the differences between a small and larger farm. Understand how many people you’ll need and the logistics. I’d also advise people to get some practical work experience before you buy. You want to start the company knowing the tricks of the trade. 

Image from: LettUs Grow

LettUs Grow Blog: www.lettusgrow.com/blog/advice-for-vertical-farmers

Coronavirus May Lead To More Indoor-Grown Produce Coming To Your Local Supermarkets

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Aug 13, 2020

Andria Cheng Senior Contributor Retail

I cover retail, from fashion to grocery, and its dance with technology

The coronavirus pandemic has disrupted traditional U.S. food and agriculture supply chain and proven to lend a potential growth opportunity for plant-based meat companies like Beyond Meat and Impossible Foods. It also may translate to your seeing more produce from indoor vertical farms in the so-called AgTech space. 

Supermarket chain Albertsons and San Francisco-based indoor vertical farm startup Plenty said this week that Plenty will supply its indoor-grown baby kale and other produce eventually to more than 430 stores across California beyond select Albertsons-owned Safeway and other stores in the Bay Area that currently, stock Plenty produce. 

The startup, which is backed by investors including Softbank, Amazon AMZN 0.0% CEO Jeff Bezos and Google GOOGL +0.6%’s former CEO Eric Schmidt, has raised more than $400 million as of Jan. 1, according to PitchBook. That puts it in the unicorn club of startups with valuation exceeding $1 billion. 

When fresh produce demand soared at the start of the pandemic, the companies said Plenty was able to boost production to supply more produce to relieve store shortages. 

“When COVID hit, that severely shocked the food chain and distribution centers were closed,” Matt Barnard, Plenty CEO, said on financial network CNBC Wednesday. “There were instances when Plenty was the only thing on the shelf. We were able to prove the extreme reliability of our farms and short food chain with our local farms.”

Like its rivals including AeroFarms and Bowery Farming, these indoor farms make part of the growing crop of AgTech companies that often have some sort of environmental sustainability pitch and tout the use of data science and other technology to increase crop yield and make different parts of agriculture more efficient and traceable. Plenty, for instance, said its vertical indoor farm uses less than 1% of land and 5% of water compared to traditional farming. 

In another sign of growing interest in the space, Oracle ORCL -0.3% Co-founder Larry Ellison and physician Dr. David Agus in July formed Sensei Holdings that also includes an indoor-farm AgTech unit. 

Investors also look to be taking a growing interest in the space, especially against the uncertain impact of the pandemic and how it may upend the global food supply chain. 

AgTech venture capital investment totaled $2.2 billion in the first two quarters of this year, after a record 2019 when $2.7 billion in total was raised, according to a study by Pitchbook and VC firm Finistere Ventures, which also invests in Plenty. This is in sharp contrast to Pitchbook data showing VC funding in the battered-retail sector having slumped by more than half this year.

In the so-called food-tech category, $4.8 billion already has been raised the first six months of this year, compared to $7 billion in total last year, the research shows. Most of the funding for both the food and agriculture tech spaces this year came in the second quarter when Covid-19 escalated to become a global crisis.

As consumers increased online orders, that translated to delivery companies Deliveroo, DoorDash and Instacart rounding out the top four startups, along with plant-based meat company Impossible Foods, in getting most VC funding in the first half of this year, according to the study. A case in point, for publicly-traded Uber UBER -1.2%, Uber Eats-led delivery business has beat its mainstay ride-sharing bookings.

After the pandemic idled or shut meat plants and caused spikes in prices, Beyond Meat, which went public last year, said in May it would introduce “heavier discounting against animal protein.” Company CEO Ethan Brown said then meat supply disruptions gave Beyond “an opportunity for consumers to be aware of a different model.”

The pandemic continues to sow its disruptive effect across different sectors of the economy.

Related on Forbes: As coronavirus batters retailers, mall owner Simon Property sees an opportunity in bankrupt chains

Related on Forbes: Uber’s biggest business is officially no longer ride sharing

Lead photo: With coronavirus having disrupted food supply chain, that may provide more growth opportunities for ... [+] LIGHTROCKET VIA GETTY IMAGES

Podcast Agency FullCast Launches Vertical Farming Podcast with David Farquhar of Intelligent Growth Solutions

MINNEAPOLIS, May 6, 2020 /PRNewswire/ — In the inaugural interview of the Vertical Farming Podcast, David Farquhar, CEO of Intelligent Growth Solutions (IGS), says Covid-19 has prompted a spike in interest in vertical farming, as retailers and governments scramble to improve supply chain resilience and lower their reliance on imported food.

The vertical farming industry must ‘take a hard look at itself’ before it fulfills its promise of reliable, quality food, produced affordably and sustainably, says one of its leading figures.

Vertical Farming Podcast produced by FullCast

“But it will be fascinating to see what changes last on the back of this pandemic,” he says. “To what degree are we willing to invest to prepare ourselves to survive another one? We’re working with a lot of governments to think how this might happen.

“Yes, there are huge opportunities, but let’s be realistic. Vertical farming and indoor agriculture are young; making them work is a marathon task. Anyone who says otherwise is lying.”

“In three decades in the tech sector, I’ve never seen anything that’s attracted so much interest nor created so much misinformation.”

“A lot of people are telling a lot of lies. The industry must grow up. Many commentators and participants within the industry feel the same.”

A former British Army officer, Farquhar announced on the podcast that he’s committing the company to openly publish all its data – energy consumption, water usage and nutrient utilization – from its ‘in a box’ vertical farming systems, in a bid to demonstrate the industry-wide honesty and transparency that he believes is so sorely needed.

Headquartered in Scotland, IGS is currently working with commercial and government groups across Australasia, the Middle East, the Caribbean, and North America. Farquhar was interviewed for the first episode of Vertical Farming Podcast, a new show produced by FullCast and hosted by Harry Duran. Harry has launched VFP to engage with the leaders, founders, and visionaries of the evolving vertical farming industry, to bring their insights and knowledge to a wider audience.

Farquhar kicks off a line-up of guests that includes Agritecture’s Henry Gordon-Smith, Freight Farms Co-Founder & COO Jon Friedman, and AgTech journalist Louisa Burwood-Taylor of AgFunderNews.

Listeners are invited to subscribe today at: https://verticalfarmingpodcast.com

Contact InformationCompany: FullCast
Contact Name: Harry Duran
Email: harry@verticalfarmingpodcast.com
Phone: +1-323-813-6570
Address: 340 S Lemon Ave #5557 Walnut, CA 91789
Website: https://verticalfarmingpodcast.com

Source: PRNewsire

Localization is Seeding Innovative Produce Supply Chains

A Key Theme of These changes is Localization – An Increasing Reliance on Local Growers to Supply Produce To Retail Outlets.

By Chris Mejia Argueta, Alexis H. Bateman, & Ken Cottrill · June 12, 2020

Editor’s Note: Chris Mejia Argueta is a Research Scientist at the MIT Center for Transportation & Logistics and directs the MIT Food and Retail Operations Lab. Alexis H. Bateman is a Research Scientist at the MIT Center for Transportation & Logistics and directs MIT Sustainable Supply Chains. Ken Cottrill is the Editorial Director at the MIT Center for Transportation & Logistics.

The COVID-19 crisis is shining a light on the vulnerabilities of food supply chains, as well as opportunities to develop inventive ways to deliver fresh foods such as fruit and vegetables from farm to table.

A key theme of these changes is localization – an increasing reliance on local growers to supply produce to retail outlets. The movement has gained momentum as a result of shifting consumer buying preferences and the need to make food supply chains resilient to a wide array of risks.

What is localization?

From a global perspective, localization can mean reorienting supply chains towards suppliers in specific countries or regions in any market. In this article, we focus on the localization of fruit and vegetable supply chains in the United States.

There are several definitions of what constitutes a “local” food supply in the US. The United States Department of Agriculture maintains that although “local” connotates short geographic distance between producer and consumer, there is no consensus on what products meet the definition. A government definition assumes that a product can be considered locally or regionally produced if it is less than 400 miles from its origin or within the state in which it was produced. A consumer survey carried out by the research firm Nielsen found that most buyers classify products across various food categories made 50 miles or less from the store, as local.

Local sources of produce are not confined to farms or small-size plots of land; They also include specialist operations such as high-tech commercial greenhouses and urban gardens. The enterprises sell directly to consumers or to retail customers such as supermarkets.

The size of the market for local food is unclear. From an industry standpoint, research from the Congressional Research Service (CRS) estimates that direct-to-consumer food sales account for about 3% of the total US agricultural production value. Up to one-half of the produce industry relies on sales to supermarkets and other chain stores, and the remainder serves foodservice companies (e.g., restaurants) and large consumers of produce such as schools and other institutions.

Pre-pandemic drivers

The localization movement was gathering steam in produce markets before the COVID-19 pandemic.

One of the drivers is the need to make produce supply chains more resilient to disruptions, like market volatility and labor shortages. Local sourcing avoids the risks associated with shipping perishable product long distances from growers to consumers. Also, shorter supply chains are more flexible, require fewer product touches and intermediaries, reduce wastage, and minimize potentially costly and delay-prone cross-border movements. There are cost advantages as well, mainly in the form of reduced transportation and warehousing costs.

Localization is finding support among consumers. Trust in food crops grown on distant, large-scale factory farms has declined as consumer interest in the safety and origins of food products has increased. Another component of this trend is the increased demand for sustainable products. For example, research by The Center for Food Integrity suggests that concepts such as “food miles” are becoming more relevant to consumers, as they place more value on shorter, more carbon-efficient supply chains.

The localization movement also aligns with the need to provide underserved communities with sources of fresh, nutritious food. One way to combat the spread of so-called food deserts – communities where access to fresh fruit and vegetables is limited – is to connect these communities with local growers.

These forces drive demand for locally grown fruits and vegetables and increase the premium that consumers are willing to pay for “locally produced” and “farm to table” product labels.

Coronavirus-related market shifts

Today, the COVID-19 crisis is reinforcing many of these market changes by illuminating weaknesses in produce supply chains. The pandemic shuttered restaurants and other places where large numbers of people congregate such as schools – effectively depriving fruit and vegetable producers of a primary market.

An obvious response was to pivot to other customers, notably supermarkets and other retail outlets. However, these are different channels with distinct specifications for product packaging and unit sizes. Reorienting supply chains geared to foodservice and institutional buyers towards customers in the retail business proved extremely challenging. To solve this issue, some farmers turned to selling their produce directly to the consumer, highlighting the value of locally produced foods as a source of revenue for farmers during supply chain disruptions. Some farmers may never go back to the original model.

The pandemic also exacerbated the labor shortages that plague growers in agricultural regions of the US. Restrictions on migrant workers crimped the supply of labor before the pandemic. The coronavirus’s health threat made it even more difficult to recruit the workers that growers need to harvest and pack food crops.

While localization does not address all pandemic-related supply chain issues, it does promote the flexibility, agility, and resilience needed to mitigate the risks associated with COVID-19 disruptions. This is one reason why the pandemic has underscored the advantages of local sourcing, especially for perishable products such as fruit and vegetables.

Moreover, preference for neighborhood markets may grow beyond food deserts. A recent study from mathematician Elena Polozova indicates that buying in corner stores is less risky than in big retail formats.

Innovations hone local models

The localization movement also benefits from a number of supply chain innovations in the agricultural industry. Here are some notable examples.

Local supply programs. As NPR reported recently, the movement known as community-supported agriculture (CSA) is experiencing growth in various parts of the country. Members of CSA programs typically commit to buying regular deliveries of fresh produce from local growers. The coronavirus pandemic has raised the profile of CSAs for the reasons described above, although the model is mainly growing in wealthy communities. 

Veggie box models. The so-called veggie box model is an evolution of the CSA movement. In this variation, groups of farmers create boxes of produce items in accordance with consumer preferences. 

Commercial veggie box models such as HelloFresh are expanding, and provide a new buying channel for fresh produce. However, they do not offer the variety and quantity that most customer segments need. In addition, these services are configured for middle-to-high income population segments and assume that there is enough last-mile delivery capacity to perform dozens of deliveries effectively. However, the capacity is not always available, a problem exacerbated by the COVID-19 crisis.

Dr. Chris Mejia, Dr. Lars Sanches, along with master’s students Jamal Taylor and Luiz Barreto from the MIT Food and Retail Operations Lab have collaborated with colleagues from Tufts University, and the City of Somerville, MA, to explore the veggie box model, in underserved communities. The options under review use neighborhood markets as pickup points for veggie boxes, analyze the impact of ride-sharing systems, and extend the impact of grocery delivery models in the city. Despite its complex design, the researchers found that the veggie-box model can support a local economy, decrease food insecurity, and address shortages of healthy food items. However, neighborhood market owners or managers need to widen the choice of produce, promote the veggie box service to the appropriate customers, and allocate space to store the boxes of produce.

A future article in this series on food supply chains will give a detailed account of the veggie box research described above.

Innovative growing models. Growers are harnessing novel agricultural methods such as hydroponics, advanced sensing, and information technologies to develop alternatives to traditional farms. An example is BrightFarms, a company that grows produce sustainably in high-tech, hydroponic greenhouses located in Pennsylvania, Ohio, Illinois, and Virginia. The greenhouses typically supply local supermarkets. In January 2020, the company opened a 280,000 sq. ft facility in Selinsgrove, PA, that can deliver over 2 million pounds of fresh, local produce year-round in PA and the PA-NJ-DE tri-state area. It has partnered with local supermarkets, including the Giant chain.

Urban and Container Farms. Small urban farms that sell to retail, food service, or restaurants have also become increasingly common with open fields, rooftops, brownfields, and other open spaces being utilized in cities to grow fresh fruits and vegetables. Urban farms that serve public demand reduce product transit and storage needs and increase food freshness in most cases.

Container farms use shipping containers to create self-contained growing environments for fresh produce, often in urban settings. One example is FreightFarms, which provides the container and set up that enable people to grow produce anywhere in the world.

Diversity programs. Traditional farmer’s markets allow residents to shop for a variety of produce items at specific locations in city locations at weekly times. However, these markets may not cater to the fruit and vegetable needs of ethnically diverse communities. World Farmers Organization in Massachusetts is implementing an innovative strategy to support culturally diverse farmers who grow their preferred products in small parcels and connect them to retail outlets. Some of these outlets are located in neighborhood markets. 

Small growers, big potential?

While the localization of fruit and vegetable supply chains is attracting interest, most conventional, large-scale growing operations are not under threat.

Not all food crops are viable candidates for small, local suppliers. Moreover, the competitive advantages of localization are subject to tradeoffs between economies of scale, the capital cost of growing facilities, and transportation costs. Also, more emphasis on locally grown produce increases the importance of supply chain transparency. Consumers who buy local produce want to be reassured that their purchases are sourced locally, and this will require relevant sourcing information at the point of sale.  The availability of investment funds also influences the commercial success of localization – a factor that could become more critical while the US economy remains mired in recession.

Still, consumers switching to local growers pre-COVID, in combination with the changes wrought by the pandemic, are creating a significant market for locally sourced produce that poses new supply chain challenges and opportunities. Researchers across MIT CTL are working on research projects to better understand this trend.

Looking Up: Vertical Farms Fill Produce Supply Chain Lag During Pandemic

By Jesse Klein | Green Biz | June 11, 2020

The great panic buying of 2020 revealed the time it takes for food to go from farm to shelves. The curtain was pulled back on something the shopper rarely thinks about — supply chain logistics. As grocery store shelves emptied, the problem wasn’t necessarily lack of food but a drastic shift in demand that caused traditional distribution engines to sputter.

For example, lettuce takes between 30 and 45 days to grow in a field farm. According to a 2001 study by the Leopold Center for Sustainable Agriculture, traditionally grown lettuce travels about 2,000 miles to get to Chicago grocery stores. So by the time prepackaged greens are bought by consumers, that produce can be almost two weeks old. These long lead times caused those empty shelves in March. 

Vertical farms have struggled to become a major force in the grocery market. Their products are usually limited to leafy greens, and the high labor costs have made turning a profit challenging for many. But the pandemic clarified their role within a more sustainable food system. Vertical farms, with their hyperlocality and ability to quickly grow new crops, can step in to fill retail shelves when traditional farms falter.

"We are a really critical part of this food supply chain, and we can fill a gap when there is a crisis," said Shireen Santosham, head of strategic initiatives at Plenty, which sells vegetables at 20 locations around the San Francisco Bay area.

Location always has been a core part of the vertical farm appeal and business model. During the pandemic, many have taken advantage of the fact that their growing operations often use abandoned warehouses in urban areas and therefore are much closer to retail stores.

Fifth Season Connection, a vertical farm that leverages robotic technology, operates a 600,000-square-foot vertical farm in the food deserts of Pittsburgh. Its chief category officer, Grant Vandenbussche, called me from inside his delivery truck. He was delivering that day’s produce to grocery stores a mere 24 hours after the greens were picked. His company has seen a 50 percent increase in orders over the past few months, even as its restaurant market has dwindled.

"We have fantastic retail partners that we have really leaned on," he said. "Our partnerships have allowed us to get more onto the shelves and expand our offerings."

The consumer also benefits from the quick turnaround time, especially during the pandemic. According to Vandenbussche, vertical farm greens typically last longer after purchase because they haven’t been out of the dirt for as long as traditional produce. So when every trip to the grocery store feels like a risk, shoppers are looking for products that will last longer than a few days.  

According to AeroFarms, its advantage has been the ability to produce baby greens in a third of the time of traditional farms, typically 12 days. AeroFarms operates four vertical farms in New Jersey harvesting almost 2 million pounds of produce a year using aeroponic mist instead of traditional irrigation, resulting in 95 percent less water usage than a traditional farm. According to Marc Oshima, co-founder and marketing director of AeroFarms, most field farms don’t have the nimbleness to respond to a quick change in market demand.

"Because we are inside, we are able to grow all year round," he said. "We can pivot as needed and adjust to the marketplace. We plant, seed and harvest for our customers based on their orders. That allows us to be very customer- and market-driven in how we grow."

Plenty has seen a threefold increase in demand from its retailers since the start of March. The pandemic opened up opportunities with new retail partners for Plenty because the stores were experiencing a disruption in supply chain and looking for alternative means of keeping shelves full, according to executives. 

"[The increase in demand] came from both our existing stores as well as from additional stores that called us up and said, ‘Hey, we are having trouble keeping our shelves stocked, could you add some volume with us?’" said Roger Kirkpatrick, director of business development at Plenty. 

Plenty was able to meet the demand as it already was gearing up its volume for placement in new stores but coronavirus accelerated the pace, Kirkpatrick said.

Vertical farms are hoping to capitalize on this moment. Shelves empty of a consumer's habitual brands help force consumers over the initial barrier of trying a new product such as those sold by Plenty. Once people do try Plenty's produce, according to Kirkpatrick, they tend to stick with the brand. So even as panic buying has calmed down, Plenty has seen its demand stay level, he said.

And even though the Centers for Disease Control and World Health Organization guidelines agree COVID-19 is unlikely to be passed through food contamination, vertical farms are using consumers’ increased awareness of the food supply chain to push their product as a safer and better alternative.

"[Consumers] will continue to gravitate towards local clean options because, now more than ever, they're thinking about where is my food coming from, who is touching it and how has it been processed," Vandenbussche said. 

As Food Supply Chain Breaks Down, Farm-To-Door CSAs Take Off

By Eric Westervelt | NPR | May 10, 2020

Images of some American farmers dumping milk, plowing under crops and tossing perishables amid sagging demand and falling prices during the deadly coronavirus pandemic has made for dramatic TV.

But it's not the whole story.

"We had a reporter call here and say, 'We want to see some produce rotting in the field and milk going down the drains,' " said Judith Redmond, a longtime farmer in California's Capay Valley, northwest of Sacramento. "And I said, 'Well, actually, that's not what's happening in the Capay Valley.' "

Redmond, a founding partner of the 450-acre, organic Full Belly Farm, is busier than ever trying to ramp up production to meet soaring demand.

From California to Maine, the movement known as community supported agriculture (CSA) is booming. Members buy a share of a farm's often organic harvest that gets delivered weekly in a box. CSA programs almost everywhere report a surge in memberships and growing waiting lists.

"The interest in getting local, fresh, organic produce just has skyrocketed during this crisis," Redmond said.

As with many farms, the restaurant and farmers market sides of her business have cratered. But the CSA side, which includes business across the San Francisco Bay Area, has jumped to 2,000 boxes a week. "We've doubled our CSA box numbers and quadrupled our add-ons like wheat flour, oils like olive oil, nuts, fruit juices, even yarn," Redmond said.

CSAs have long been something of a niche market that have never really penetrated the mainstream. Yet, the coronavirus just might prove to be sparking community supported agriculture's breakout moment.

"In all the time that we've worked with CSAs, which is several decades, we've never seen a surge as quickly as we have of the last few weeks," said Evan Wiig with the Community Alliance with Family Farmers, which supports and lobbies on behalf of CSAs across California.

"It's sort of a heyday for CSAs," he said. "Farmers that were starting in March struggling to get enough members for the season – which we see every year — by mid-March were dealing with waiting lists with hundreds of people trying to get in."

The coronavirus has exposed the vulnerabilities and fragility of the U.S. global agribusiness supply chain. The CSA model's focus on local and fresh is ideally suited for a crisis that has people deeply worried about germs on lettuce, beets or broccoli as the crops make their way from the field to the kitchen counter.

People "don't want that many hands on their food right now," said Sarah Voiland. "And we can offer that."

She and her husband, Ryan, run the organic CSA Red Fire Farm, in the Connecticut River Valley outside of Amherst, Mass.

The low-touch factor is an especially big draw at a time when a trip to a supermarket can involve masks, social-distancing lines, hand sanitizer and angst. "The supply chain with CSA is very short. It's like, we harvest the produce and you come pick it up" at a local site, she said.

"We think people's habits will shift because of this" pandemic, said John Tecklin, who runs the CSA Mountain Bounty Farm, serving the northern California communities around Truckee, Nevada City and Lake Tahoe, as well as Reno, Nev. "For a lot of them, it's kind of a wake-up call: 'what's really important to you?' "

In a move spurred partly by the pandemic, and a sign of the changing times for CSAs, Tecklin's farm is now entering into a partnership called Forever Farms with a non-profit land trust, a local food advocacy group and a food cooperative to help secure ownership of part of the farm's land in perpetuity.

"It's local food security for our community," Tecklin said. "In these times it's more important than ever now."

He believes that's the same motivation driving the recent doubling of interest in his CSA. "Everyone is just all of a sudden, 'Wow this is the kind of thing we need, we need local farmers who we're dealing with directly.' "

Some farms, large and small, that relied on restaurant, hotel, school and university food-service contracts have been hit hard. Many are now scrambling to adapt to a CSA-type model, at least in the short term, to survive. Some are now partnering with CSAs in a mutually beneficial pact that helps CSAs meet growing demand while offering an outlet for suffering farms.

Federal and state governments are also now taking a page from CSAs. As part of its coronavirus relief, the U.S. Department of Agriculture has put out a call for $3 billion in contracts for farmers to produce and deliver fresh produce and dairy boxes to food banks, many of which are struggling to support the growing ranks of Americans who are hurting and out of work.

Some states are trying to redirect to charities farm produce that in normal times would have headed to restaurants and hotels. California has expanded funding to help cover the costs of harvesting, packaging and transporting fresh fruits and vegetables from farms to local food banks. The state's Farm to Family Program, a partnership with the California Association of Food Banks (CAFB) and the USDA, provides fresh produce to needy households across the state.

CSAs still represent a very small slice of America's $100 billion farm economy. But their renaissance marks a rare bit of good economic news for an agriculture industry battered by trade wars, threatened by climate change and now facing a global pandemic.

And the new success brings new challenges. Many CSAs are now scrambling to find additional labor to plant, harvest and deliver produce to meet the moment. "We're totally able to produce so much more than we are, but we don't have the workers," said Redmond, of Full Belly Farm. "We're so stressed out by that that, you know, just knowing that there's going to be a difficult time getting workers, it just doesn't make any sense to ramp up production."

A big question for CSAs is whether the renewed interest represents a fleeting reaction to fear or a more sustainable, long-term trend.

"When the lockdown or shelter-in-place started in March, people were just a little panicked," Redmond said. "And what we're trying to do is turn it into a longer-term relationship with our farm and those members so that they see that there's a tremendous advantage of getting food locally from people that they know."

Farmers Markets Across the US Face Potential Economic Crisis from COVID-19

Across the US, farmers markets operators–the organizations and individuals who plan, coordinate, and run America’s farmers markets, are engaging in herculean efforts to protect their communities from COVID-19. But even as interest in local foods spikes nationwide, many market operators face the double threat of increased costs to operate during a pandemic, in addition to declining income. To make matters worse, many aren’t eligible for current federal relief efforts.

Farmers markets have always been a hub for innovation. When farmers have opted or been forced out of the traditional supply chain, farmers markets have served as a lifeline to their business, filling a vital role to move their goods from field to plate. Now, in this time of crisis, farmers markets are at the forefront of adapting rapid solutions and innovation to protect staff, customers, and community. Apart from these efforts, emerging research suggests sunlight  effectively kills COVID-19, adding more support to the idea that farmers markets may be the safest place to shop for groceries during the pandemic: 

“There are benefits to visiting a farmers market in light of coronavirus in terms of the fact that you’re outside, there’s fresh air moving and the supply chain is shorter,” said Yvonne Michael, an epidemiologist at Drexel University School of Public Health. “…so I would definitely encourage people during the coronavirus to visit a farmers market.”

But changes come with both increased costs and decreased revenue for organizations that run farmers markets. According to a Farmers Market Coalition member survey, 74% of respondents reported decreased income, while 93% report added costs, including the purchase of PPE for market staff, rental of more handwashing stations, new software or services, and additional staff to rearrange market layouts and monitor customer traffic. The need to reduce the number of vendors to enforce physical distance requirements, while other vendors are unable to attend markets due to health concerns, age, and labor shortages, points to a steep decline in revenue for market organizations. In a similar survey by the California Alliance of Farmers Markets, nearly 20% of respondents reported concern that they may not survive the economic impacts of COVID-19.

“We expect to lose almost $200,000 by the end of the year” said Kate Creps, Executive Director of the Heart of the City Farmers Market, in San Francisco, an organization that distributes $1.5 million in food assistance through its markets each year. “Only 50% of our vendors are able to continue selling during this crisis. At the same time, we anticipate over $60,000 in additional expenses to maintain strict social distancing protocol to protect customers, vendors, and staff.”

To make matters worse, farmers markets operators have largely been left out of relief efforts, both public and private. “Farmers markets are probably the safest place to shop now, but that hasn’t happened by accident. It’s thanks to the committed efforts of the community based farmers market operators who deliver for their communities,” said Ben Feldman, Executive Director of the Farmers Market Coalition, a nonprofit representing 4,500 farmers markets across the country. “These are very lean organizations and we are close to a breaking point for many of them, especially if they continue to be shut out of support other sectors of the economy are receiving.”

The impact of losing farmers markets would be massive. Farmers markets facilitate an estimated $2.4 billion dollars in sales for farmers each year. “Without direct assistance for our state’s farmers markets, many of which already operate on a shoestring budget and an all-volunteer staff, we risk losing this vital outlet, drastically affecting the livelihoods of farmers,” according to Robbi Mixon, a farmers market manager and Director of the Alaska Farmers Market Association. “Small to medium scale farmers are the cornerstone of local food systems. If farmers markets disappear, these farmers lose market access and economic stability”

“We are imploring state and federal governments to keep farmers markets in their mind as they develop relief packages,” said Feldman. “Please help markets keep their communities safe and thriving.” 

For more information:
Farmers Market Coalition
farmersmarketcoalition.org

Monday, May 11, 2020

Pandemic Proof: S2G Ventures on Why Resilient, Sustainable And Healthy Food Systems Are More Important Than Ever

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by guest 18 May 2020

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Sanjeev Krishnan

This is a guest post by Sanjeev Krishnan, Chief Investment Officer and Managing Director at S2G Ventures

The COVID-19 pandemic has caused a global health and economic crisis like none we have seen in our lifetime. In the food supply chain, this has impacted employees that ensure that food is planted, harvested, and processed, grocery shelves are stocked and food is available to all people. It takes a global village to feed the world, and we have seen selfless sacrifice and silent grit to ensure the continuity of our food system. Because, if our food supply breaks down, this pandemic may move from a crisis to a catastrophe.

Over the past several month’s several cracks have shown up in the food supply chain. The pandemic is challenging the nature of our global supply chain, stressing logistics networks, and reinforcing the importance of labor. There are concerns about food nationalism, continued access to labor, and redefining the nature of food security from global to national systems. While now is the time for urgent action – from government and private sector – there is a need for longer-term investments required for building a more innovative and resilient future food system.

Our team at S2G Ventures spent several months researching and monitoring COVID-19 and its implications to better understand these questions, keeping a close eye on the news cycle, conducting extensive desktop research, and speaking with various experts across many fields. We spoke to epidemiologists, healthcare professionals, farmers, entrepreneurs, philanthropists, and other investors to gather insights and develop our perspective on the implications of COVID-19 on the world of food and agriculture. We have compiled our findings into a report that explores the implications of the COVID-19 pandemic to the food and agriculture industry and identifies the areas of innovation critical to building a healthier and more sustainable food system.

As an investor in companies across all stages of the food system, we believe our role in the recovery is to ensure we build a more stable, resilient, sustainable, and healthy system. We will continue to invest in entrepreneurs and innovations that are the catalysts for meaningful progress. Below, we offer a summary of our report, which can also be downloaded in full here.

Pandemics 101: A History of Recovery & Innovation

Taking a look back in time, the world suffered a deadly pandemic in 1918. The Spanish flu, whose origin is believed to be a farm outside of Kansas City, spread quickly across the globe. Although the world was not as connected, World War I was still ongoing, and troops were being shuttled between the United States and Europe. Between 1918 and 1919, the Spanish flu is believed to have infected nearly a third of the global population and killed between three and 20 percent of those who were infected. In the end it killed between 40 and 50 million people. In the years following the Spanish flu, there was a bright period of innovation that included the adoption of the Bell telephone and modern medicine. It was an event that helped shape the future.

Between the Spanish flu and today’s pandemic, there have been seven major epidemics or pandemics. Each varies in mortality, duration, and contagion, but ultimately all come to an end. The economic recovery period that follows a pandemic-induced recession is generally different from traditional economic recessions. Pandemic-induced recession recoveries have generally seen a V-shaped recovery, while traditional recessions have varied between V-, U-, W-, and L-shaped recoveries. The global financial crisis of 2008 saw an L-shaped recovery. Typically, economic recessions have a longer duration and deeper economic consequences.

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The coronavirus pandemic is unique among prior events. While many events have temporarily shut down regions, none have had the same global shutdown that we are currently facing today. So, despite being able to draw comparison and insights to learn from pandemic economics, the situation is different due to a staggering rise in globalization, digitalization across many sectors, and the rise of fiat currencies. Pandemic economic history teaches us that one of the hallmarks is that innovation plays a critical role in the future normal that emerges. As Professor Katherine A. Foss notes, “disease can permanently alter society, and often for the best by creating better practices and habits. Crisis sparks action and response.”

While the direct effect of COVID-19 is on the population – with infection rates, social distancing, and shelter-in-place restrictions and continued operations of only essential businesses – there are significant implications across many industries. The second-order consequences of coronavirus are reshaping industries, catalyzing innovation, and encouraging resilience in business planning. Although the lasting impact on many industries is unknown, we see exciting innovation accelerating across automation, telemedicine, virtual reality, and transparency systems (i.e., blockchain or similar technologies).

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Everyone Eats – Pandemic Proof Demand, but Supply?

While the food and agriculture sectors are generally more resilient in bad economic situations, there are several sub-sectors that rely heavily on in-person labor and are currently strained due to the unique social distancing pressures placed on businesses. One significant pressure point is meat processors. Several large meat companies have been forced to shutter processing facilities due to COVID-19 outbreaks. Smithfield had to shut down one of its pork processing facilities that supplied roughly 5 percent of the U.S. pork supply, while JBS had to close a Pennsylvania facility that processed beef. The second-order consequence of these closures is the farmer, who may be forced now to cull their herds of cattle and hogs. The strain on this pressure point affects not only the farmer but also the consumer. Wendy’s felt the effects of this during this past week when nearly one-fifth of all 1,043 locations ran out of beef.

While it will take an extended period of time to fully understand the implications of consumer purchasing data coming out of the pandemic – more specifically if the duration of the consumer behavior shift will be a ‘fad’ or ‘trend’ – certain areas of the market are seeing a quick adoption of trends that were previously accelerating. As slaughter-house closures have increased, plant-based meats sales have jumped 200 percent. Plant-based meats remain a small portion of the market, but this is a significant and notable demand signal from consumers.

Coronavirus is notably changing how consumers shop, prepare and consume food. Between 2009 and 2018, out-of-home eating rose from 50.1 percent to 54.4 percent of the market. Now, with social distancing limited the ability to eat at restaurants, many are turning to preparing food at home or ordering delivery or takeout. And, despite food being a resilient sector, the bifurcation between grocery and foodservice has become clear.

In the grocery store, private label market-share gains are poised to accelerate, as consumers tighten spending and look for value-focused alternatives. However, we expect consumers to prioritize a balance of value and better-for-you brands instead of a complete tradeoff to value, consistent with the consumer megatrend towards better-for-you products.

Taking a step back, and observing the broader food value chain, we observed three primary delivery vulnerabilities in the food system:

1. Agricultural inputs to farms (e.g., seeds, animal feed, fertilizer, et al.)

2. Farm products to processors, packagers, spot markets and export markets

3. Food to retail distribution

This is important because the global food system relies on a just-in-time economy, where inventory levels are intentionally kept low. Meaning, that regardless if there is enough supply in existence, it may not be able to reach its proper destination if the supply chain is disrupted.

China, which provides a good example because it is further along in the lifecycle of the pandemic, has been suffering from this problem in the last several months. Upstream and downstream logistics are a major challenge; at the ports, there are thousands of frozen meat containers piling up because the trucking has effectively collapsed. Meanwhile, ports are running out of power, stoking fears that much of the food currently stored there will go bad. There is also an American company that makes immunization equipment for chicken that said their containers had been docked at Chinese ports for four weeks. Although China is doing its best to ensure that the grain planting season is not missed, the logistics of this supply chain are making it increasingly difficult.

 The Future of Food – COVID-19 and Calories

While we continue to watch the situation and the strain it is placing on the food system, we view the common threat that could bridge the existing system to the future as technology. Consumer purchasing behavior coupled with innovation may drive changes in market share and pressure existing players in the market. Although we have not seen COVID-19 create a new trend, we have seen several trends that were in motion pre-coronavirus further accelerated by the pandemic, including alternative protein, indoor agriculture, digitalization of agriculture, and grocery and food as medicine.

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Although animal agriculture remains a large and growing market, the pandemic has exposed challenges with the industries long production cycles, centralized production and limited processing facilities. It has allowed for faster consumer adoption of alternative proteins, including plant-based protein, fungi, algae and other biomass concepts including cellular meat. Notably, some of these technologies are further along than other, for example plant-based protein has been a trend for several years, while cellular meat remains in a research and development phase. We continue to believe that whatever the next generation of protein is, it will be driven by production speed, price and taste.

A second trend we believe is accelerating is food as an immunity. The convergence of food, science and technology may unlock this sector and usher in a new era in microbiome, functional ingredients, precision and personalized nutrition and medical foods. Prior to COVID-19, this was largely driven by nutrition-related disease, but the pandemic has exposed at-risk populations, with approximately 90 percent of hospitalized patients having one or more underlying condition, with the most common underlying condition being obesity.

Beyond specific trend acceleration, several themes emerge throughout this research that we believe may be catalyzed and emerge in a post-COVID-19 world. Digitalization will likely be driven by dis-intermediation to allow for new relationships with the consumer and to reduce risk throughout the supply chain. Decentralized food systems allow for the automation of local (alternative protein and produce) and the reshaping of complex perishable supply chains to reduce shrink and waste. They are also more omnichannel congruent as e-commerce, specifically online grocery, adoption accelerates. De-commoditization in the food supply chain, coupled with technologies that place deflationary pressure on the industry, may help catalyze breeding for attributes beyond yield (taste, protein content, et al), a return to polyculture farming and a shift from a strict focus on yield to profit per acre. Lastly, food as an immunity has the potential to bridge healthcare and food production and consumption for the treatment of specific nutrition-related chronic lifestyle diseases, as well as change the future of brands to focus on unique, functional ingredients. a

Our full report, The Future of Food in the Age of COVID,  is available online.

_____________________________

Sanjeev Krishnan, Chief Investment Officer and Managing Director at S2G Ventures

Sanjeev has nearly 20 years of experience in sourcing, executing, managing, and exiting venture and private equity investments, including a focus in agriculture and food companies. As Managing Director, Sanjeev is active in developing investments and managing portfolio companies including, serving on many portfolio company boards. His portfolio work ranges from genetics, crop protection, soil health, digital/IoT, crop insurance, merchandising, indoor agriculture, novel flavor, and ingredients, new protein development, unique processors, and brands that will feed this changing consumer.

He is passionate about the role of innovation, entrepreneurship, markets, and system investing as a theory of change. Sanjeev has worked in the intersection of sustainability, technology, and health in many regions, including Europe, Africa, Asia, and North America.  He has invested over $500 mm in venture and growth-stage firms throughout his career.

Sanjeev began investing as a co-founder of the life sciences practice of the IFC, the $99 billion private investment arm of the World Bank. His previous investment roles include CLSA Capital Partners, Global Environment Fund, World Bank Group’s IFC, and JPMorgan. Sanjeev is a graduate of the London School of Economics and Political Science.

About S2G Ventures: 

S2G Ventures (Seed to Growth) is a multi-stage venture fund investing in food and agriculture. The fund’s mission is to catalyze innovation to meet consumer demands for healthy and sustainable food. S2G has identified sectors across the food system that are ripe for change and is building a multi-stage portfolio including seed, venture, and growth-stage investments. Core areas of interest for S2G are agriculture, ingredients, infrastructure and logistics, IT and hardware, food safety and technology, retail and restaurants, and consumer brands.

For more information about S2G, visit www.s2gventures.com or connect with us on Twitter and LinkedIn.

Major US Meat Producer Warns Food Supply Chain Is Breaking

Tyson Foods says ‘there will be limited supply of products’ until it can open plants forced to close amid coronavirus pandemic. Tyson Foods, one of America’s largest meat producers, has warned “the food supply chain is breaking” amid the coronavirus crisis.

In a full-page ad on Sunday with the New York Times, the Washington Post and the Arkansas Democrat-Gazette, the Arkansas-based company cautioned “there will be limited supply of [their] products” until they can reopen closed facilities.

“As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” John Tyson, Tyson’s board chairman, wrote.

The advertisement came as several Tyson plants have shuttered amid the coronavirus pandemic. Tyson has closed or reduced production at several facilities throughout the US, including a pork-processing plant in Iowa, where several workers tested positive for the virus.

Tyson plants in Texas and Indiana had also closed. Other companies, including Smithfield Foods pork plant in South Dakota, and JBS beef plant in Wisconsin, have also announced temporary shutdowns.

Tyson also warned “farmers across the nation simply will not have anywhere to sell their livestock to be processed,” further sounding the alarm on the threat to the nation’s food supply chain.

The Department of Agriculture (USDA) had previously vowed to work with the FDA and the CDC, “ensuring the safety of the US food supply and protecting agricultural health”.

The USDA had been criticized for the millions of pounds of food rotting while the country’s food banks became increasingly depleted due to high demand amid the economic dive. Experts have warned it could be a matter of weeks before consumers feel the effect of shutdowns with meat shortages at grocery stores.

USDA waited more than a month to “make its first significant move to buy up surplus fruits and vegetables,” Politico reported. The agriculture secretary, Sonny Perdue, drew fire for the lag in response to the pandemic compared with other federal agencies.

“USDA is committed to maximizing our services and flexibilities to ensure children and others who need food can get it during this coronavirus epidemic,” Perdue said in a statement.

Earlier this month, Donald Trump had said that he expected the secretary “to use all of the funds and authorities at his disposal to make sure that our food supply is stable and safe.”

The USDA did not respond to the Guardian’s requests for comment. Meanwhile, concerns about food supply echo worries about the health of workers.

According to the United Food and Commercial Workers International Unions, a meatpacking and food processing union, at least 10 meatpacking workers and three food processing workers have died from the coronavirus and at least 5,000 meatpacking workers and 1,500 food processing workers have been directly affected by the virus.

Tyson, among others, had faced growing criticism for subpar standards in protecting workers, including a lack of adequate gear. The company had faced backlash for slow response to worker safety, including only requiring employees to wear company-supplied masks since mid-April.

Tyson shot back at accusations of an inadequate coronavirus response, committing to “waiving the waiting period to qualify for short-term disability so workers can immediately be paid if they get sick”.

The company also agreed in the letter to pay nearly $60m in bonuses to more than 115,000 workers and truck drivers.

Tyson Foods referred the Guardian to its letter in response to request for comment, but in an emailed statement to Time, said it “places team member safety as our top priority”, launching safety measures including temperature checks, requiring masks and ramped-up facility cleaning.

“Despite our aggressive efforts, in some locations, this was not enough and we decided to close several of our facilities,” the statement said.

By Kenya Evelyn | The Guardian | April 27, 2020

Re-Engineering America's Fresh-Produce Supply Chain Post COVID-19 For Greater Resilience, Inclusiveness And Sustainability

April 27, 2020

by Prof. Joel Cuello, Ph.D.

The UN World Food Programme announced just last week that over a quarter of a billion people around the globe could suffer acute hunger by end of this year in large part owing to the coronavirus crisis — a doubling of the 130 million people estimated to experience severe food shortages last year.

Such forecast makes all the more notable the three-way split screen that has been flickering in the news recently across the United States — showcasing barren shelves at grocery stores, miles of cars and people lined up at food banks, and milk by the millions of gallons being dumped in Wisconsin and Ohio as well as tons of fresh vegetables being plowed back into the soil in Idaho and Florida.

As jarringly incongruous and disturbing such split-screen images are, they have helped bring into stark relief the surprisingly sclerotic rigidity of the U.S. food supply chain amid the prodigious disruptions caused by the coronavirus pandemic.

At the heart of America’s fresh-produce supply-chain predicament in the time of Covid-19 are the double strands that make up this supply chain — running in parallel and perhaps even looping around each other, but never quite meeting and converging.

One supply-chain strand supplies the foodservice channels of restaurants, schools, hotels, offices, and coffee shops, while the second strand supplies the retail channels of grocery stores, supermarkets, and other retail outlets.

Never do these two fresh-produce supply-chain strands converge in normal times, but remain distinctly discrete and resolutely independent of one other.

And this explains how when Covid-19 shuttered in quick succession myriads of restaurants, schools, and coffee shops across the country, the producers and the roughly 15,000 suppliers that cater to the $300-billion U.S. foodservice industry are suddenly unable to sell the bulk of their produce.

And in attempting to pivot from the foodservice supply chain to the retail supply chain, they find themselves confronted, not only with the time-consuming and costly repackaging and relabeling requirements for their produce, but also with the daunting task under time duress of finding proper contacts as well as developing the needed contracts to deliver and sell their produce through the retail supply chain instead.

With many producers and foodservice suppliers completely unprepared and ill-equipped to accomplish the foregoing, many are forced to make the final dreadful choice of destroying millions of pounds of fresh food that they can no longer sell.

The industry trade group Produce Marketing Association estimates that approximately $5-billion worth of fresh fruits and vegetables have already gone to waste in the United States.

Thus, redesigning America’s fresh-produce supply chain post-COVID-19 to make it certainly more nimble and flexible in routing and rerouting as needed the logistical paths that connect from which farms to which tables is absolutely imperative.

Equally imperative in such redesign is also to make the fresh-produce supply chain definitively more inclusive and sustainable.

Here are six essential touchstones that should inform the much-needed re-engineering of America’s double-stranded fresh-produce supply chain after Covid-19.

(1) Regionally and locally-based— greater geographical proximity between the re-engineered supply-chain sources (producers) and sinks (retailers and foodservice providers) fosters increased resilience in terms of shorter distance, quicker access to produce, and allowing for time to repackage and relabel produce in events where there is need to switch supply-chain strands; proximity also promotes sustainability in terms of shorter food miles, lower concomitant greenhouse-gas emissions, less food waste during transport as well as greater produce quality and freshness;

(2) Inclusion of small and medium-scale producers— Addition of medium and small-scale producers in the re-engineered supply chain not only promotes economic inclusivity but fortifies the supply chain’s resilience given the relative ability of medium and small-scale producers to react more quickly and nimbly to projected changes in demands in the supply-chain sinks;

(3) Mixing of foodservice and retail clients in the chains— Combining to the extent possible foodservice and retail sinks in the re-engineered supply chains fosters resilience in regard to establishing and maintaining clients in both strands of the supply chain, and thus providing greater facility in events where produce needs rerouting from one supply-chain strand to the other.

(4) Inclusion of indoor and/or vertical farm producers— Addition of indoor and/or vertical farms significantly boosts the resilience of the re-engineered supply chain in terms of increased supply reliability (independent of weather, season, climate and geography), higher produce yield and quality, increased food safety owing to cleaner and controlled-environment operations, and amenability to the automation of operations for labor efficiency. The recent decision by Wendy’s, for instance, to source all of its tomatoes for all of its 6,000 restaurants across North America from indoor hydroponic greenhouses has helped enable the American fast-food company to uphold its motto of Always Freshby way of ensured quality as well as enhanced food safety, predictability, reliability and product traceability for its now far more dependable fresh-tomato supply chain;

(5) Linking producer farms with sources of renewable energy— Incentivizing and linking producer farms to ready sources of renewable energy, including solar and wind power plants, promotes enhanced environmental sustainability. Especially in temperate regions with reduced solar irradiance in certain periods of the year, producer farms may also be linked with wastewater treatment plants that generate renewable natural gas from digested organic wastes as exemplified by the Newtown Creek Wastewater Treatment Plant in Brooklyn, New York City; and,

(6) Certification of the supply chain nexus— Certification for resilience, inclusiveness, and sustainability (that is, a RISe certification) adjudicated and awarded by an independent body to supply-chain nexus of producers, suppliers and retail/foodservice clients would be a great boon to the fresh-produce distribution industry as well as to consumers, the general public and the environment.

With Covid-19 temporarily decimating the global economy and in the process exposing the vulnerability of partial paralysis of the American fresh-produce supply chain amid the chaotic disruptions wrought by the pandemic, a silver lining that has emerged is that America’s fresh-produce supply chain can very well be re-engineered for a much-needed upgrade — toward greater resilience, inclusiveness, and sustainability.

Dr. Joel L. Cuello is Vice-Chair of the Association for Vertical Farming (AVF) and Professor of Biosystems Engineering at The University of Arizona. In addition to conducting research and designs on vertical farming and cell-based bioreactors, he also teaches “Integrated Engineered Solutions in the Food-Water-Energy Nexus” and “Globalization, Sustainability & Innovation”. Email cuelloj@arizona.edu.