Singapore To Host Major Multi Stakeholder Virtual Event On Food Security & Sustainability In Partnership With UNDP & APEC

12 August 2021, Singapore – To address the potential impact to the global food system from the twin effects of the Covid-19 pandemic and climate change, government officials and top-level executives from the Asia Pacific region will be attending the Global Food Security & Sustainability Virtual Summit 2021 on 17 September 2021.

Singapore’s Minister for Sustainability and the Environment, Ms. Grace Fu will be delivering the opening address for the event. Providing the keynote address will be A/Prof Matthew Tan, the co-chair for Sustainable Development in Agriculture & Fishery Sectors for APEC Policy Partnership on Food Security on the topic: Global Food Security – The Next Frontier In The Agriculture And Aquaculture Industry.

Organized by The Pinnacle Group International, a leading conference organizer headquartered in Singapore, the event is formed in partnership with UNDP and APEC with the support of multi agencies and NGOs around the world. This event is positioned as the Pan Asian multi-agency and private sector event to facilitate policy, business, and technological exchanges amongst key stakeholders in the global food community.

The event is expected to feature 35 influential speakers who will cover a wide range of topics including macro and regulatory issues, food technology, food waste, financing, food security & sustainability, cold chain & logistics, and nutrition. The event agenda, set against the conference theme “Towards A Future Safe Global Food System” will be developed in consultation with members of the summit’s board of advisors.

The appointed board of advisors are:

• -  A/Prof Matthew Tan – Co-Chair for Sustainable Development in Agriculture & Fishery Sectors - APEC Policy Partnership on Food Security/CEO Asia, Assentoft Aqua Asia

• -  Professor William Chen - The Michael Fam Chair Professor and Director of NTU Food Science and Technology Co-Director, Future Ready Food Safety Hub @ NTU, Consultant, Asian Development Bank

• -  Mr. Lim Hui Jie - CEO, VisionTech Pte Ltd

• -  Mr. Eugene Wang - Co-Founder & CEO, Sophie’s BioNutrients Pte Ltd

  (Singapore)

• -  Mr. Rohit Behl - Interim CEO of EntomoVentures Pte. Ltd & Business

  Development Lead of Cellivate Technologies Pte Ltd

• -  Mr. Wee-Meng Thoo - Partner and Head Of Investments, Digital and

  Sustainability, Leonie Hill Capital

• -  Mr. Richard Hayler, CFO of Nutrition Technologies

• -  Mr. Robert (Bob) Nichol, Director Asia Pacific, Innovad Asia Pacific Pte. Ltd

• -  Mr. John Friedman, Executive Director, AgFunder Asia & GROW Accelerator

• -  Mr. Nick Hazell, CEO & Founder, v2food

• -  Ms. Mirte Gosker, Acting Managing Director, The Good Food Institute Asia

  Pacific

• -  Mr. Christoph Langwallner, Initiator of Nutritional Paradox & CEO and Co-

  Founder of WhatIF Foods

• -  Mr. John Cheng, Founder, and Managing Director Innovate 360

• -  Mr. Niels Arbjerg, Regional President of the Asia Pacific Region, Danfoss

• -  Mr. Tan Ernest, Head of Agribusiness & Animal Protein of United Overseas

  Bank Limited (UOB)’s Sector Solutions Group – Consumer Goods Group

  Wholesale Banking Division

• -  Dr. Ling Ka Yi, CTO & Co-Founder, Shiok Meats

• -  Mr. Saurabh Bajaj, CEO, Eat JUST Asia

• -  Mr. Yuki Hanyu, Founder & CEO at Integriculture Inc

• -  Ms. Elizabeth Hernandez, Head of External Affairs and Sustainability, Asia

  Pacific, Corteva Agriscience

• -  Mr. Steve Rhodes, Chairman & CEO of Trendlines Investments Group

• -  Ms. Nathalie Lung, Program Manager for the Food Technology Accelerator

  Programs, Brinc

• -  Ms. Rebecca Vaught, Founder, Van Heron Labs

• -  Mr. William Koo, Managing Director, Temasek Life Sciences Accelerator

  (‘TLA’)

• -  Dr. Andrew Powell, CEO, Asia BioBusiness

• -  Mr. Puis Chong, Managing Director, Mergers, Acquisitions & Divestitures,

  Deloitte Financial Advisory SEA

• -  Mr. Dominique Kull, Co-Founder, and CEO, SGProtein

The current confirmed prestigious panel of speakers are:

• -  Ms. Grace Fu, Minister for Sustainability and The Environment - Republic of Singapore

• -  A/Prof Matthew Tan, Co-Chair for Sustainable Development in Agriculture & Fishery Sectors - APEC Policy Partnership on Food Security/ CEO Asia, Assentoft Aqua Asia

• -  Mr. Riad Meddeb, Director ad-interim of UNDP Global Centre for Technology, Innovation and Sustainable Development(GC-TISD)

• -  Mr. Eric Paillard, Managing Director, Adisseo Asia Pacific

• -  Ms. Cecilia Ku, General Manager, Delta Electronics International Singapore

• -  Mr. Torben Funder-Kristensen, Head of Public and Industry Affairs, Danfoss

  Climate Segment, Danfoss A/S (Denmark)

• -  Dr. Sun Hui, Chief Engineer of the Academy of the National Food and Strategic

  Reserves Administration of China

• -  Ms. Mirte Gosker, Acting Managing Director, The Good Food Institute Asia

  Pacific

• -  Mr. Nick Hazell, CEO & Founder, v2food

• -  Mr. Tan Ernest, Head of Agribusiness & Animal Protein of United Overseas

  Bank Limited (UOB)’s Sector Solutions Group – Consumer Goods Group

  Wholesale Banking Division

• -  Mr. Christoph Langwallner, Initiator of Nutritional Paradox & CEO and Co-

  Founder of WhatIF Foods

• -  Dr. Viknish Krishnan-Kutty, Founder & CEO of Cellivate Technologies

• -  Mr. Eugene Wang, Co-Founder & CEO, Sophie’s BioNutrients Pte Ltd

  (Singapore)

• -  Mr. John Friedman, Executive Director, AgFunder and GROW Accelerator

• -  Mr. Robert (Bob) Nichol, Business Director - Asia Pacific, Innovad Asia Pacific

  Pte. Ltd

• -  Mr. Richard Hayler, CFO of Nutrition Technologies

• -  Mr. Rohit Behl, Interim CEO of EntomoVentures Pte. Ltd & Business

  Development Lead of Cellivate Technologies Pte Ltd

• -  Mr. Will Cowling, Marketing Manager, FMCG Gurus

• -  Mr. Wee Meng Thoo, Partner and Head Of Investments, Digital and

  Sustainability, Leonie Hill Capital

• -  Mr. Smith Taweelerdniti, CEO, Let’s Plant Meat – Managing Director, Nithi

  Foods Co. Ltd, Innovator & Entrepreneur

• -  Mr. Jean Pasternak, Strategy Director, Nasekomo

• -  Dr. Emily Chang, Professor, Department of Agriculture Economics, National

  Taiwan University

• -  Mr. Travin Singh, Founder & CEO, Crust Group

• -  Mr. Jean-Yves Chow, Agri-Food Sector Coverage Lead, Senior Vice-

  President, Asia & Oceania Corporate Banking Department, Sector Coverage

  Team, Mizuho Bank

• -  Mr. William Koo, Managing Director, Temasek Life Sciences Accelerator

  (‘TLA’)

Supporting Organisation(s):

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The organizers are expecting 700 participants to attend the online event. Global Food Security & Sustainability Virtual Summit 2021 is supported by the following sponsors:

For more information on the event, please visit:

https://pinnaclegroup.global/gfsss/ About

The Pinnacle Group International

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The Pinnacle Group International - CDMC is a leader in the conference industry in Asia, designing and launching its own brand of conferences and events. The Pinnacle Group is headquartered in Singapore with supporting regional offices in Shanghai and Philippines. The Company’s renowned brands of conferences and events cover a wide spectrum of industries including finance, energy, education, aviation, food security and sustainability and real estate.

SCOTLAND: World’s Most Powerful Tidal Turbine Starts To Export Power To The Grid

29 July 2021

Orbital Marine Power’s O2, the world’s most powerful tidal turbine, has commenced grid-connected power generation at the European Marine Energy Centre (EMEC) in Orkney. The innovative, floating turbine is anchored in the Fall of Warness where a subsea cable connects the 2MW offshore unit to the local onshore electricity network, so the company in a press release yesterday.

Manufactured and launched in Dundee earlier in the year before being towed up to Orkney, the O2 is Orbital’s first commercial turbine and represents the culmination of more than 15 years of world-leading product development in the UK. The 74m long turbine is expected to operate in the waters off Orkney for the next 15 years with the capacity to meet the annual electricity demand of around 2,000 UK homes with clean, predictable power from the fast-flowing waters. In a further ground-breaking element of the project, the O2 is to provide power to EMEC’s onshore electrolyzer to generate green hydrogen that will be used to demonstrate decarbonization of wider energy requirements.

‘Creating a new, low-carbon industrial sector.’

Orbital CEO, Andrew Scott, said: “Delivering this pioneering renewable energy project safely and successfully is a major milestone for the O2. This project is the trigger to the harnessing of tidal stream resources around the world to play a role in tackling climate change whilst creating a new, low-carbon industrial sector.”

The construction of the O2 turbine was enabled by public lenders through the ethical investment platform, Abundance Investment, as well as being supported by the Scottish Government by the Saltire Tidal Energy Challenge Fund. The O2 project has been supported through funding from the European Union’s Horizon 2020 research and innovation program under the FloTEC project and the European Regional Development Fund through the Interreg northwest Europe Programme under the ITEG project.

Read the complete press release here.

Read also: Ocean waves and giant magnifying glasses should facilitate energy transition

Spain is going for floating wind turbines and tidal energy on a grand scale

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UAE’s “Green Sheikh” Visits Green Bronx Machine, Gotham Greens And CS55

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22-July-2021

by Green Bronx Machine

Green Bronx Machine founder Stephen Ritz welcomes the "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi to GBM's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

1. Green Bronx Machine founder Stephen Ritz welcomes the "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi to GBM's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

2. Green Bronx Machine

   The "Green Sheikh," His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi tours Green Bronx Machine's National Health, Wellness and Learning Center at CS 55 in the South Bronx.

3. Gotham Green Co-Founder and CEO Viraj Puri (r) hosts the "Green Sheikh," His Royal Highness SheikhAbdulaziz bin Ali Al Nuaimi, along with Green Bronx Machine Founder Stephen Ritz and former GBM student and current Gotham Greens employee Corey Gamble at their Brooklyn-based greenhouse.

4. Senior officials from NYC Department of Education, the Office of the Brooklyn Borough President, NYS Senator Gustavo Rivera, and other staff and community from CS 55 greet His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi at Green Bronx Machine's National Health, Wellness and Learning Center.

Newswise — BRONX, NY, July 22, 2021 – Green Bronx Machine founder Stephen Ritz and his students welcomed yesterday His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi, to their classroom at the National Health and Wellness Learning Center (NHWLC) at CS 55 in the Bronx.

A member of the ruling family of Ajman of the United Arab Emirates and an environmental adviser to the Ajman Government, HRH is a globally acclaimed humanitarian and philanthropist whose work focuses on mindfulness, well-being, spirituality, sustainability, and nutrition, particularly in children and those living in marginalized communities. 

During the visit, HRH, known as the “Green Sheikh,” and Ritz, often called “America’s Favorite Teacher,” had a chance to catch up on all things ag education-related and see what GBM students are growing and learning during the Summer Rising school program that is currently in session.  In fact, GBM’s students hosted a luncheon for HRH, preparing and serving him a vegan meal made from vegetables grown by them right in their NHWLC classroom.  Prior to arriving at CS 55, Ritz accompanied HRH on a tour of Brooklyn-based Gotham Greens, a longtime GBM supporter, and partner. Gotham Greens, a pioneer in sustainable indoor farming with the largest network for hydroponic greenhouses in North America, brings a fresh perspective to how businesses can operate with a triple bottom line.

"The power of friendship between the UAE and USA started many years ago via multiple platforms.  Events like these help that friendship to continue to blossom and grow. Today, we all come together for sustainability, stewardship, and the best interests of all children. Today, we celebrate education and possibilities,” said His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi.  “After many years of working together overseas, to be able to visit my dear friend, Stephen Ritz, and see the work of Green Bronx Machine personally, in his home country and home community is beyond exciting. To see this classroom and to visit Gotham Greens is to truly understand what is possible when people work together with innovation and dedication to change lives. This is what community looks like. This visit helps to share our work, our commitment, and our shared vision for the future and the planet for everyone to see - all around the world. I want to thank the NYC Department of Education, the residents of the Bronx, Stephen's family, colleagues, and the community at Community School 55 and the staff at Gotham Greens for their gracious hospitality. I look forward to continuing our sharing, our learning, and our working together." 

Longtime sustainability allies, the two green leaders met years ago in UAE via government officials with The Knowledge and Human Development Authority (KHDA) of Dubai.  KHDA is responsible for the growth and quality of private education in Dubai.  The two quickly became friends, sharing their passion for impact work, philanthropy, sustainability, education, and wellness initiatives. 

Stephen continues to work in UAE with ESOL Education.  Based on the model of Green Bronx Machine's National Health, Wellness, and Learning Center, ESOL launched the International Health, Wellness and Learning Center at Fairgreen International School located in the heart of Dubai’s The Sustainable City – the first net-positive city in the world.  Fairgreen International School is considered a Top Twenty School in the UAE and is known for innovation globally. 

“It has been an honor hosting His Royal Highness Sheikh Abdulaziz bin Ali Al Nuaimi, our dear friend, colleague, and fellow believer in the power of the plant to grow successful people, communities and economies,” said Ritz.  “We look forward to our continued work with HRH.  We are always ready to bring the Bronx to the world and make epic happen for millions more across the globe.” 

Over the coming months, HRH and Ritz will embark on a series of joint projects including a series of books for young people about bringing the farm to the desert, as well as building farms throughout the UAE to address food insecurity, agricultural innovation, workforce development, and overall health and wellness. 

“We built our first greenhouse in New York City in 2011 with the mission to reimagine how and where fresh food is grown,” said Viraj Puri, Co-Founder, and CEO of Gotham Greens. “His Highness, Green Bronx Machine, and Gotham Greens all share a passion for environmental advocacy and building a more sustainable future for our planet and for people around the world. We believe business can be a force for good, so we plant roots in the neighborhoods surrounding our greenhouses through long-standing partnerships with community groups and non-profit organizations like Green Bronx Machine, bringing nutritious, local food and STEM education to cities across America. We know that the impact from these programs extends beyond the borders of our neighborhoods and are proud to share learnings from our experience over the past decade.”

About Green Bronx Machine

Founded in 2011 by Global Teaching Prize finalist and life-long educator Stephen Ritz, Green Bronx Machine (GBM) is an impact-driven, for-purpose organization with 501(c)(3) status.  GBM builds healthy, equitable, and resilient communities through inspired education, local food systems, and 21st Century workforce development. Dedicated to cultivating minds and harvesting hope, its school-based model and propriety curriculum uses urban agriculture aligned to key school performance indicators, to grow healthy students and healthy schools.  Simultaneously, GBM also transforms once fragmented and marginalized communities into neighborhoods that are inclusive and thriving.  For more information, visit www.greenbronxmachine.org.

Follow us on social media:

Facebook:       https://www.facebook.com/green.BX.machine/

Instagram:       https://www.instagram.com/greenbronxmachine/

Twitter:            https://twitter.com/greenBXmachine

YouTube:        https://www.youtube.com/c/Greenbronxmachine/about

"Precision Indoor Propagation For High Quality Transplants" - August 3rd Tuesday 11:00 AM Eastern Time

August Indoor Ag Science Cafe

August 3rd Tuesday 11:00 AM Eastern Time

Please sign up, thank you!

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by
Dr. Ricardo Hernandez
North Carolina State University

• Please sign up to receive your Zoom link.

• Indoor Ag Science Cafe is an open discussion forum, planned and organized by the OptimIA project team.

• OptimIA (Optimizing Indoor Agriculture) is a project funded by the USDA Specialty Crop Research Initiative and supported by many of you receiving this email (thank you!).

Sign Up Here

Farming During The Dry Age

The period of 2000 to 2018 was the second driest 19-year period in over a thousand years. Let that sink in for a few moments. Global warming drives increased evaporation, causing droughts to become more likely and more severe where they already exist.

The past 10 to 20 years have been some of the driest on record, especially for the west coast of the United States. 70% of the land in the West is already in severe drought, and the National Weather Service estimates that the area is closer to 90%. Water demand is expected to rise by 55% by 2050, so planning how to provide more water with a diminishing supply is not a matter of whether one believes in climate change, it’s a crisis.

These climate events in the west have economic impacts worth noting water shortages during the 2015 droughts in California resulted in almost $2 billion in direct costs. On average, one drought event causes a 0.8% decrease in agricultural GDP, let alone the cost to the population. 

With California responsible for a large portion of the country’s produce and experiencing extremely dry conditions, indoor farming is the only option. CEA (controlled environment agriculture) where environmental factors are manipulated can help keep the west coast's agricultural sector intact.

Greenhouses, whether traditional or vertical uses methods such as drip irrigation that save up to 30-50% of the water it would take to conventionally grow using surface irrigation. Up to half the amount of an outdoor farm. Overall, reports indicate that greenhouses create around a 60% water savings during crop cultivation.

Droughts affect not only the direct air and soil of an open farm, but also the types of pests and pathogens living in them. When a climate drastically changes, the organisms that thrive there adapt much quicker than the plant’s ability to resist them. With the U.S. already using over one billion pounds of pesticides per year, as drier environments invite new pests and pathogens that native crops are ill-equipped to handle on their own either crops will die, or pesticide use will increase.

The agricultural economy along the West Coast and indeed across the U.S. and the world will need to adapt their growing techniques to meet the demand of a growing population and conserve water. Indoor growing saves water during growing cycles and significantly reduces crop loss, pesticide use, and GHG’s.

Droughts along the West Coast are already transforming the farming landscape as we watch farmers plow crops under knowing that there won’t be enough water to sustain them throughout the summer. Crops grown indoors can be both protected and hydrated with indoor technologies that are more secure for feeding people and sustaining the planet.

Hallie Cordingley, Intern

hcordingley@iunu.com

Carl Silverberg, Sr. VP Outreach & Public Affairs

csilverberg@iunu.com

844 746 4868 

AppHarvest: Firing On All Cylinders

Written by Jamie Louko

July 12, 2021

AppHarvest, Inc. (APPH)

Summary

• AppHarvest is trying to reimagine how consumers see produce.

• With sustainability as one of their key focuses, AppHarvest separates itself from the pack of traditional farmers, and its size, scalability, and offering selection separate itself from other agtech players.

• In this article, I am going to examine some of the most recent news AppHarvest has shared with investors, as well as looking back at AppHarvest compared with other agtech players.

AnnaStills/iStock via Getty Images

Investment Thesis

The agtech and sustainable farming industry has proved to be more efficient and sustainable compared to traditional farming. However, the difference and competitive edge lie between each sustainable farming business. These agtech businesses achieve similar sustainability and efficiency goals, so the competitive advantage comes in other forms. AppHarvest's (APPH) competitive advantage comes in the form of the size and scale potential of their farms, as well as their broad expansion of product offerings. Because of this, AppHarvest is one of the stronger players in the agtech space, and investors who want to play in this industry should be considering AppHarvest before other competitors.

Where We Last Left Off, and What's New

In my last article about AppHarvest, a large-scale indoor farming business operating in central Appalachia, I focused on the competitive advantages over traditional farming operations. Since then, other indoor farming businesses similar to AppHarvest have come out of the woodwork and announced plans to trade as public companies. Some of these businesses include AeroFarms (SV, will become ARFM), a sustainable farmer focused on vertical farming, Local Bounti (LIII, will become LOCL), an indoor farming business located in the pacific northwest, and Infarm, a German-based distributor who has become the world-leader in indoor farming. Infarm has rumored to becoming public via SPAC with Kernel Group Holdings Inc. (KRNL), but nothing definitive has been reached.

As these businesses show their superiority, they all claim similar sustainability and efficiency metrics. Most businesses claim that their use of water is extremely efficient, as is their optimization for crop growth, and their LEDs allow for optimal sunlight. Simply, all of these businesses have very similar technology that makes them superior to traditional farming, but this does not mean success for any individual business within the agtech industry. They all show that the agtech industry is superior, but rather they should focus on what makes their business superior to other agtech players.

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Source: Investor Presentation

In my opinion, traditional farming is a dying industry, and it is sensible that sustainable farming and greenhouses will be the future of farming. Therefore, it is sensible that the agtech business should be demonstrating its competitive advantages over other agtech competitors, rather than traditional farming.

AppHarvest, even in this sense, does stand out from the competition. They are slowly becoming a bigger player in this space, and one that is starting to run ahead of the pack. While other agtech businesses are busy constructing their first farm, AppHarvest has jumped ahead with the production of its next 4 farms. While its competitors are starting small with only 1-2-acre farms, AppHarvest has positioned itself well with 15-60-acre farms. AppHarvest's competitors are currently focusing on one product category, yet AppHarvest is rapidly expanding its product offerings.

In an industry that is growing rapidly, AppHarvest is executing everywhere it needs to, and it is allowing for AppHarvest to set itself apart from the competition.

Competitive Advantages Over Agtech Businesses

AppHarvest has three quality characteristics that show it is stronger than most of its agtech competitors. Due to the size and scalability of its farms, expansion in offerings, and consistent execution, AppHarvest is proving to investors that they are one of the stronger players in this industry.

Size and Scale of Farms

One of AppHarvest's strongest competitive advantages within the agtech space is the size of its facilities. These facilities are absolutely massive, with their first facility 60 acres in size. This allows for mass production of sustainable-grown produce at a scale that no other agtech business has. These facilities can often take longer to construct, but once constructed, there is a long runway for growth and full-scale operations for it. It would take substantially less time to fully scale a farm this size compared to building and scaling 60 1-acre greenhouses.

The second option is what Local Bounti is doing, for their facilities are only 1-2-acre facilities. They plan on constructing 9 facilities by 2025, 8 of which will be roughly 5 acres, which would only lead to a maximum growing capacity of 42 acres. This goal of 42 acres would be less than AppHarvest's currently operating growing capacity.

Clearly, the size of AppHarvest's farms is a massive advantage for them. The scalability of these farms gives them an even greater lead. AppHarvest expects production of their first facility in Morehead, Kentucky to be fully scaled by the end of 2021, whereas Local Bounti's 42 acres would not be fully operational and scaled until at least 2025. AppHarvest would then have 4 years of fully-scaled operations to build a brand, strengthen the balance sheet, and fuel more growth for AppHarvest.

The scalability shows itself through guidance estimates for FY 2021 as well. By the year's end, at full-production, AppHarvest expects to make $21 million in revenue, whereas Local Bounti only expects to make $13 million by the end of 2022. The size and scalability of AppHarvest's farms are simply unmatched by its competitors, and as they build more farms (I will dive into that shortly), these size and scale advantages will only become more prevalent.

Offering Expansion

Compared to its competitors, AppHarvest is planning to expand its product offerings at a faster rate. One of the keys to success for these agtech businesses is having a successful brand, and one way to grow a brand is to put it in the eyes of more customers. One way to do this is by expanding the products offered. That way, both salad enthusiasts can eat the leafy greens and tomatoes produced, while berry lovers (like myself) can also recognize the brand. If a business were to only focus on leafy greens, then they would not achieve brand recognition from people like me as much.

AppHarvest's offering expansion is happening fast, and it will only be a matter of time before AppHarvest can offer products in various categories, rather than simply tomatoes. Their primary facility in Morehead, KY, solely produces tomatoes, but they have 4 facilities under operation that will be producing a wide variety of offerings. Here are the 4 facilities being constructed, along with what they will be producing:

Facility LocationProduction CategoryAcreageExpected Construction Completion DateBerea KYLeafy Greens15Q3 2022Richmond KYVine Crops60Q4 2022Somerset KYBerries30Q4 2022Morehead KYLeafy Greens15Q4 2022

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Source: Press Release

Considering that AppHarvest currently focuses solely on tomatoes, expansion into 3 other product categories is a wonderful step in growing its brand recognition. This is something that few of its competitors are doing. Local Bounti does not have any structural plans on expansion out of leafy greens, and AeroFarms has plans to expand into berries for its primary leafy greens production.

As previously mentioned, I believe that offering expansion is important to the brand growth for these agtech businesses. As they expand their offerings, they will be able to get their products and their name in front of more consumers. AppHarvest has started showing signs of doing this well, where its competitors have failed to do the same.

Signs of Execution

One of the risks I mentioned in my last article was about the ability of management to meet or exceed guidance they put out for themselves. This included construction guidance. In their investor presentation, they expected to have 4 facilities up and running by the end of 2022, including their main facility in Morehead. Recently, they announced plans to construct two additional facilities, meaning that they are now expecting to have 5 facilities up and running by the end of 2022.

This seems small on the surface, but this is the exact type of execution proof that I look for in small businesses like AppHarvest. The fact that management was able to start construction on more farms than expected and thus increase their timeline shows that they are executing and exceeding the guidance they set out for themselves.

For investors, this should demonstrate that AppHarvest management can be trusted, for their guidance was beaten. Management was able to beat their own guidance, and that should show investors that AppHarvest is not just a pipe dream, but it actually has something tangible to run with and build.

A Look at My Risks: What Risks are Still Present, and What Risks Have Grown

In my last article, I noted many risks that are potential with the business:

• AppHarvest is unable to grow its factories at or faster than projections.

• Their Mastronardi partnership goes awry.

• They are unable to educate the broader public on what makes them special.

• AppHarvest is unable to lower prices.

• Management leaves the company.

For the most part, all of these risks are still prevalent today, if not even more important. Although they have begun to prove they can beat their own guidance, they will still need to continue to prove this, both in quarterly and yearly financial estimates, but also through construction estimates.

Their Mastronardi partnership is still fragile, and if anything were to happen with that partnership AppHarvest would have no way of distributing its product to local grocers, which could potentially decimate this business.

Although the offering expansion will make it easier to gain brand recognition and thus educate the broader public about their business, this will likely always remain a risk as long as traditional farming produce dominates grocery store shelves. Gaining brand recognition will also go a long way in being able to lower prices. So, while their offering expansion has the potential to increase brand recognition for AppHarvest, risks still remain and likely will remain for a long time.

Even though management seems very happy at AppHarvest, and loss of a major figure, Jonathan Webb specifically, would greatly damage their business. Management is the face of the business until they are able to bring products to shelves at a very large scale, so management impressing investors is largely how they will gain capital to subsidize the financing of their farm construction. If the face of AppHarvest were to leave, it could hurt their ability to receive financing and thus their ability to develop their facilities.

After seeing many agtech businesses come to the market via SPAC, there has been more concern about competition in this space. Because of this, I would likely add competition as a risk to AppHarvest. While many of its competitors are pre-revenue and are not far along on facility construction, they do have a competitor that is much larger than AppHarvest. Infarm is a German-based sustainable food producer that sells its product internationally, with the U.S. being its most recent expansion area. They have expanded broadly in Europe, and they seem to have their eyes set on the United States. This could pose a tremendous risk for AppHarvest, for there is no agtech player that comes close to the size of Infarm. They have $19 million in sales across the world compared to AppHarvest's $2 million last quarter.

AppHarvest's competition is fierce, and there is no doubt that the competitive threats will slow as time goes on. Therefore, I am confident to say that AppHarvest will have to fight against fierce competition in order to gain market share in the U.S., but their competitive advantages listed above will be able to help them do so.

Recent Stock Decline: Buying Opportunity?

AppHarvest's stock price has plunged in recent months, falling roughly 58% since February 2021.

Data by YCharts

This has put AppHarvest's market cap roughly around $1.5 billion and dropped their valuation down from extremely high multiples to still high, but comparatively lower multiples. Currently, it is trading over 600x sales, but it is trading at 73x forward sales if investors are looking at FY 2021 revenue estimates.

A business that just got its first revenue in Q1 of 2020 is obviously going to have extremely high valuation multiples, but revenue is growing extremely fast, and it is expected to continue to do so. Considering that the stock price has had a tremendous fall from grace, and revenue is expected to grow rapidly, today could potentially be a wonderful time to invest in this business at a very low price.

Conclusion

As I have said before, an investment in AppHarvest is not for the faint of heart. It is valued at very high multiples, and the number of risks for this business is high. AppHarvest will need to continuously execute at a strong level, for there is little room for slip-ups. With plenty of competition in the agtech market, AppHarvest will need to hold onto its competitive advantages tight if it wants to be a market leader in this industry.

Despite all of this, AppHarvest is one of the better investments for investors who want to get in on the agtech industry. They are one of the few companies with strong competitive advantages, and there are very few companies that could construct what AppHarvest is constructing. Their valuation is high now, but as they grow revenue it is likely that it will rapidly decrease, and it will be much more reasonable in the future. The risks associated with this business are plenty, but management has begun to prove they can efficiently execute.

For risk-tolerant and volatility-tolerant investors who wish to capitalize on the sustainable produce transformation, AppHarvest is one of the best bets to make. Their competitive advantages are strong, and they are one of the only businesses that have proved they have the ability to accomplish what they say they can. Because of this, I am recommending that risk-tolerant and volatility-tolerant investors who wish to invest in agtech should consider AppHarvest before any other competitors.

Lead photo: Source: Investor Presentation

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This article was written by

Jamie Louko

I am a college student who has found a deep thirst for learning and investing. Being very young, I have leaned toward very long-term investments and growth stocks, primarily in tech. I do, however, love consumer goods companies as well. Currently, I am studying International Business and Economics.

Long Only, Growth, Long-Term Horizon, Tech

Contributor Since 2021

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Large-Scale Automated Vertical Farm Near Tokyo by Spread And ENEOS Partnership

July 14, 2021, Spread Co., Ltd. (HQ: Kyoto, Japan; CEO: Shinji Inada, hereinafter “Spread”)’s partner, and a member of ENEOS Group, J Leaf Corporation (HQ: Chiba, Japan; President: Jun Uehara, hereinafter “J Leaf”) started operating the automated vertical farm “Techno Farm Narita” (Chiba, Japan) on 30th of June.

Spread’s Large-Scale Vertical Farming Partnership with ENEOS Group’s J Leaf Starts Operations near Tokyo

Spread owns and operates two vertical farms in Western Japan (Kyoto), the Kameoka Plant and Techno Farm Keihanna. Techno Farm Narita is Spread’s first partnership project, and the first to be located in Eastern Japan. The most significant feature of Techno Farm Narita is the increased efficiency in the use of land. This has been achieved by increasing the number of cultivation racks levels to 28, double that of Techno Farm Keihanna. Techno Farm Narita will produce 30,000 heads of lettuce daily, building on the know-how accumulated through the operation of Techno Farm Keihanna to deliver increasingly sustainable food production.

Unique Features of Techno Farm Narita

Even more efficient land saving through 28-level cultivation rack system (roughly 2 times more efficient than Techno Farm Keihanna)

Located in the Greater Tokyo Area, allowing for local production and consumption

Transforming idle land to efficient and sustainable agriculture ・

The utilization of renewable energy generated from solar panels

Techno Farm Narita also retains other features of Spread’s next-generation food production system, Techno Farm™, including pesticide-free, stable cultivation, integrated automation, specialized LED lighting, and Spread’s proprietary IoT-based cultivation management system, Techno Farm Cloud.

Techno Farm Narita’s Cultivation Room Opening Ceremony

About the Partners

ENEOS Group is one of Japan's leading corporate groups, with revenue in excess of 10 trillion yen. *1

The Group has the largest market share in oil refinery and petrochemicals distribution in Japan and is centered around ENEOS Holdings.

Spread’s vision is to create a sustainable society where future generations can live with peace of mind. On the way to this objective, Spread plans to reach a total production capacity of 100 tons per day domestically by 2030, through the expansion of its Techno Farm™. With the collaboration at Techno Farm Narita as a foundation, both parties are considering further partnership projects. The green business market is expected to continue growing, and Spread strives to become a leading vertical farming company globally.

Spread will continue to pursue further business opportunities through technological innovation both in Japan and overseas. Spread aims to provide solutions for the global problems of climate change and food security and the delivery of a truly sustainable society.

*1 FY2019 results (announced on May 20, 2020)

*2 ENEOS Techno Materials Corporation is a member of ENEOS Group

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PODCAST: This Weeks Episode - Season 3 Episode 35

Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show, co-founder and Chief Marketing Officer at AeroFarms, Marc Oshima. AeroFarms is an award-winning indoor farming company that is on a bold mission to grow the best plants possible for the betterment of humanity. 

Today, Harry and Marc talk about Marc’s background in marketing and how it has impacted his work at AeroFarms. Marc provides his thoughts on the concept of ‘speed breeding,’ speaks to his passion for food, and expounds on the concept of utilizing business as a force for good

Listen & Subscribe

All You Need To Know About Hydroponic System

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By: Harold Camaya

July 12, 2021

Many people use hydroponics to grow plants that use nutrient-rich solutions in water, so there’s no use of soil. Instead, some materials support plant roots, such as peat moss, rock wool, perlite, and clay pellets.

Hydroponics has existed in various forms for thousands of years, from Babylonian hanging gardens to ancient Mexican Chinampas.

Only in the past 70-80 years have we understood the science behind this technique. While we have practiced hydroponics in various forms for centuries, some places have sometimes been more developed than others. For example, people use ac infinity to ventilate their growing space. 

In this article, you’ll learn all you need to know about hydroponic systems. We will aim to answer these questions that include:

What is hydroponics?

How do you set up your hydroponic systems?

What systems do people use in hydroponics?

What are the advantages of hydroponics?

What is hydroponics?

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Photo by Lyn Ong from Pexels

Hydroponics refers to any growing of terrestrial plants that delivers nutrients directly to the roots rather than having the roots seek them out by digging in a soil body. 

We derive the word hydroponics from the Greek word hydros, which means water, and pon means work. The plant’s roots receive nutrients from water-based nutrient solutions.

How do you set up your hydroponic system?

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Photo by Jatuphon Buraphon from Pexels

Depending on what your tastes are, your hydroponic system can be simple or very complex. It is possible to set up several approaches that require little effort and set up some that require a significant investment.

The three elements of hydroponic design include: 

1. Growing containers

2. Sump tank

3. Pump

Systems used in hydroponics

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Photo by Anna Tarazevich from Pexels

Selecting a hydroponic system involves choosing from six different types. They all revolve around the use of water and nutrients. Each design addresses the core elements but in slightly different ways.

1. Water culture

Water culture is a simple and inexpensive system. We place plants in a basket above reservoirs filled with nutrient solutions. After hanging in the solution for a while, the roots descend entirely into the soil. They will need regular aeration leading to faster growth to prevent suffocation because of constant submersion. 

1. Nutrient Film Technique (NFT)

The system comprises a shallow, downward-sloping stream of nutrient solution. This stream contains roots that absorb nutrients from its steady flow. Growing lettuce, herbs, and baby greens in this system are excellent for plants with a short growth cycle.

1. Aeroponic

By creating an aeroponics system, we expose roots to as much oxygen as possible. Growing chambers without growing medium allow roots to hang upside down in midair, exposing their entire root system. As the roots grow, we mist them periodically with aeroponics misters within this section. It has proven successful commercially propagating seed potatoes, growing tomato plants, growing leaf crops, and growing microgreens using aeroponics techniques.

1. Ebb and Flow

A water pump runs on a timer in Ebb and Flow, also known as Flood and Drain. Water and nutrients flood and then drain the root system. The overflow tube allows the excess water to drain through. What’s left is a dry pond with soaking roots and an overflow tube to drain water away. 

1. Drip

We use perlite or gravel as a drip system for supplying the roots with nutrients. We then pump water and nutrients into them via tubes from a reservoir. Soaking the growing medium and roots makes the solution drip back into the container and the pool. 

1. Wicking

Plants grow in wicking media, such as vermiculite or perlite. You can find them in a container next to the water and nutrient reservoir. To connect a wicking medium to a solution, we use wicking ropes or strips of felt.

What are the advantages of hydroponics?

Hydroponic gardening offers many benefits. Among the most important are:

• Total control over nutrient supply

Because the soil is not a source of minerals or nutrients, it is easy to adjust mineral or nutrient levels based on plant needs.

• Climate or season is not a constraint

Regardless of the weather outside, you can grow hydroponically whenever during the year.

• Better results and higher yields

If we calibrate the hydroponic system and maintain it well, it can effortlessly produce a higher product quality and quantity than a soil-based system.

• Hydroponics offers significant environmental advantages

Not only does hydroponics take up much less space than traditional horticulture, but it also uses much less water. And it allows nutrient solutions to be recycled.

• It is possible to grow all plants hydroponically

You can grow vegetables like potatoes, carrots, onions, etc., that grow on the earth using hydroponics.

Determining Your Best Method

It would be best to have some ground understanding of each system’s strengths and weaknesses, as well as your hydroponic needs, before choosing one of these systems. 

For example, wicks and water culture systems are excellent options for home growers who want an easy setup system. 

Drip systems and NFT systems may be the right choice if you want to grow various plants. Examine each hydroponic system’s pros and cons to pinpoint the best one.

Conclusion

Growing your fruits and vegetables is a fun way to do so from the comfort of your own home using hydroponics. 

The process can become complicated and expensive, but you do not have to make it so if you don’t want to. With all the essential information in this guide, you can better decide for yourself. 

Lead photo: Photo by Anna Tarazevich from Pexels

Signify Announces New Philips Horticulture LED Partner Hortipar

June 28, 2021

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, has signed a partnership agreement with Hortipar, an expert in realizing lighting projects for the horticultural sector worldwide. Hortipar is based in ‘s Gravenzande, the Netherlands, and operates mainly in North America, Canada, Eastern Europe, and the Netherlands.

Hortipar will now add Philips GreenPower LED grow lights to their global portfolio. Focussing on quality, flexibility, knowledge, and expertise, Hortipar offers their customers a complete solution for their greenhouse from the beginning till the end of a lighting project. With their independent advisors and team of dedicated experts, Signify is proud to add Hortipar to the global partnership network of Philips Horticulture LED.

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“We are excited to be a partner of Signify and offer the range of Philips GreenPower LED grow lights to our customers”, said Aad van Ruijven, director at Hortipar. “Sustainability and innovation are of great value to us and to our network. Our customers expect the highest quality, and that we offer them the full package for their lighting installation, together with high-end advice and project management. The expertise of the team at Signify and their Philips GreenPower LED grow lights fit perfectly within these expectations and in our ambitions for the future.”

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“Adding Hortipar to our global network of certified Philips Horticulture LED partners is something we are proud of”, said Udo van Slooten, Business Leader Horticulture at Signify. “According to our estimates, about 30% of the world’s greenhouse surface will be lit by 2025, and LED technology will light more than half of that surface. Therefore, we are continuously pursuing further development of our Horti LED partnerships worldwide, and Hortipar is a valuable addition.”

Signify continues to expand its Horticulture partner network, further demonstrating its commitment to lead the horticulture industry as the innovative LED lighting systems provider for greenhouses and indoor farming. 

--- END ---

 For further information, please contact:

Global Marcom Manager Horticulture at Signify

Daniela Damoiseaux

Tel: +31 6 31 65 29 69

E-mail: daniela.damoiseaux@signify.com

www.philips.com/horti

About Signify

Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2020 sales of EUR 6.5 billion, we have approximately 37,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for four consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.

VIDEO: Is Hydroponic Produce Organic?

Aaron Fields, Eden Green Technology's Head of Horticulture
Photo from Eden Green Technology

The organic farming standards were created by the USDA in the 1990s when there was increased public awareness of the health and safety of our food. However, at that time, hydroponic farming wasn't as widespread as it is today. That leads us to question: is hydroponic produce organic? 

Check out this great video from Eden Green Technology, a hydroponic farm based in Texas. Aaron Fields, their Head of Horticulture, explains what organic really means and how hydroponic growing can be sometimes cleaner and safer. (Did you know? I hate to burst the organic bubble, but produce that is grown organically can still have some level of pesticides.)

USA: INDIANA - Delaware County Moves Ahead With Economic Incentives For Vertical Farming Company

Corey Ohlenkamp

Muncie Star Press

MUNCIE, Ind. — Delaware County is moving forward with economic incentives for a vertical farming company looking to buy the Industria Centre shell building along Fuson Road. 

The shell building, measuring 200,000 square feet, was built in 2014 by Garmong Construction. The nearly $8 million county-funded shell building had been unable to find a tenant in seven years.

This building is officially owned by Garmong, a Terre Haute-based company that's been a frequent partner with the county on shell buildings in the past.

►PREVIOUS: Indoor farming company could purchase Delaware County Shell building

The building is funded by the county and built on county-owned land.

Living Greens Farm, an indoor produce farmer based out of Minnesota, is looking to turn the space into its next produce facility. The company uses an aeroponics process, also referred to as vertical farming, to produce greens for sale in grocery stores.

Vertical Harvest Collaborates Directly With Chefs Across Jackson

06-21-21

 Vertical Harvest Collaborates Directly With Chefs,

Finding Fresh Flavor To Elevate Any Dish

JACKSON, Wyo. — Chef Alejandra Peña nibbles a small green leaf and the spark in her eyes is unmistakable. Her customers at Persephone Westbank will soon find a similar tiny stalk in their morning granola bowl. “They’ll be surprised at the pop of citrus with their oats and yogurt,” said Peña. “ Tangerine cress is something people haven’t experienced as a taste before and it is really exciting to use microgreens like these in unexpected ways.”

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Chef Alejandra Peña of Persephone Wesbank. Photo: Lindley Rust

It’s a fun day at the farm when a chef stops by the Vertical Harvest greenhouse. Geeking out over a microgreen’s flavor profile rings deeply sincere coming from the person who places it precisely on the plate. “Seeing the colors, tastes and textures helps me brainstorm my menus with something that is very tangible,” said Peña. “This is such a different experience than looking at a product list because being in the greenhouse and talking through the flavors with the growers helps the dish in my head come to life.”

Since its inception, Vertical Harvest Farms has had a special relationship with the chefs of Jackson. The farm works closely with chefs to grow micro and petite greens specifically curated to each restaurant’s menus. Chefs are welcome to book time to come and “shop” the greens with the Vertical Harvest grow and sales teams.

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Persephone West Bank Chef Alejandra trying microgreens with Hannah Bouline (Product Manager) and Emily Peterson (Sales Director). Photo: Kyra Foley

“It’s satisfying to see the look in chefs eyes when we sample a new green with them. We always do a deep dive into how the flavors and textures can make other ingredients come alive,” said Hannah Bouline, Vertical Harvest Product Manager.

On her recent greenhouse visit, Peña was preparing for Persephone Westbank’s new 5-9 p.m. dinner service, which just started on June 17, 2021. She tasted radish microgreens, mustard frills, rock chive, and red veined sorrel. While the sorrel and tangerine cress are already breakfast and lunch menu staples, she was excited to play with the mustard frills for the dinner menu.

According to Peña, it’s important to have microgreens and petite greens that she can use for breakfast, lunch, and dinner but still have very different flavors and textures throughout the day. “Our goal is to avoid waste and use the freshest product possible.”

The overall vibe of the new dinner menu is fresh, floral, and citrus-like a French bistro, she says. “We’ll offer vegan dinner options and provide an experience that is casual and kid-friendly with a specific kid’s menu. I don’t want anything to be too heavy, but instead, have the entire family leave feeling like they could really enjoy the dishes and not be too full.”

The Salmon Tartine. Photo: Kyra Foley

Peña’s plan is to pair Vertical Harvest’s red-veined sorrel with dishes such as salmon tartine and use the tangerine cress across many dishes on the menu. She also hopes to make Vertical Harvest edible flowers a key part of the restaurant’s cocktail program.

She is most excited about the ½ roasted chicken with seasonal vegetables. “It’s so juicy and has a light yet flavorful cardamom glaze,” she said. “I’m so excited for everyone to try it!”

A group of Vertical Harvest team members visited opening night and were impressed with the atmosphere and the food. “It was so lovely to enjoy the light, yet flavorful, food on a warm afternoon,” said Emily Peterson, Vertical Harvest Sales Director. “The cocktails were spot on and I loved the salmon tartine with its pop of citrus supplied by the red-veined sorrel. The menu perfectly balances rich dimensions of flavor without being too heavy. Even the usually deep and earthy ratatouille had a fresh essence.”

Try the chicken, salmon tartine, and other wonderful new dinner menu items yourself this season. Dine at Persephone Westbank at 3445 N Pines Way in the Aspens, Wilson WY. Learn more about Vertical Harvest Farms and its freshly, locally grown produce on the company’s website here.

Lead photo: Vertical Harvest collaborates directly with chefs, finding fresh flavor to elevate any dish. Photo: Shannon Corsi

ABOUT THE AUTHOR

Sponsored by Vertical Harvest - Jackson Hole, Wyoming

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• VERTICAL HARVEST VERTICAL HARVEST JH

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Research Signify And Fragaria Innova Into Growing Strawberries With LED Bears Fruits

June 15, 2021

·     Provides better steering of the plants

·     Optimizes winter growth

·     Helps growers realize a stabile production pattern with high yield and good quality strawberries

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, has worked together with Fragaria Innova to develop specific light recipes for strawberries, resulting in a steady production pattern with high yield, and good quality strawberries in wintertime. The joint research over the past year helps to further optimize the winter production of the so-called ‘June bearers’, a strawberry cultivar known for relatively short peaks in production.

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Within Fragaria Innova, progressive strawberry growers commit themselves, together with external partners, to innovation surrounding the themes of growing under light and plant health. For growing under light, Fragaria Innova and market leader Signify conduct a multi-year program with participating growers/propagators. At one of the production companies, a special compartment has also been equipped with separate climate control, this enables the testing of several growth- and light strategies for multiple cultivars under full LED. One of the main goals of the research is realizing a (more) stable production pattern during wintertime.

Current winter productions usually take place with June bearers with a short production period of 8 to 10 weeks, after which a new planting in another section takes over production to create a stable, flat production. Unlit cultivation dominates before- and after the winter production.

“Extra growth light is needed to realize sufficient yield and quality in winter”, according to plant specialist Peer Hermans, who conducts the research on behalf of Signify. “The trials have shown that you can influence the plant build-up somewhat with specific light recipes, for which LED is ideally suited.” By accurately tuning the light intensity and spectrum offered to the developmental stage of the plant, you can optimize the leaf surface and stretching of the flower trusses and leaf stalks. A better plant build-up can benefit the production. The idea is to raise the production quality through light optimization.  

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Grower Marcel Dings from Brookberries, co-initiator behind Fragaria Innova, noticed some influence on the plant build-up, but the extra assimilates that came with it, went mostly to the crop and less to the fruits. Dings: “Next season will focus on how we can further optimize the division of the assimilates in the plant, and how we can get the assimilates to the fruits”. The grower notices that there are a lot of variables at play, such as: cultivars, planting times, cultivation goals, light spectra, light intensity, and the balance between natural daylight and artificial lighting. “The benefit of this new generation of LED grow lights is that we can play with lighting efficiently and that we can finetune the recipe to our own wishes and possibilities. Within this project, together we can achieve faster and more progress. I am satisfied with the results of this first year, but there is definitely room for further optimization. Hopefully, we can keep this going in the coming years.”

Grower Dave Linssen, a participant within Fragaria Innova (cultivar: Malling Centenary), had a trial with different spectra at one company location, planted in August just like his unlit crop. “The lit plants went into production earlier in winter, as expected. When it came to kilos and plant build-up, we hardly noticed any difference between the light spectra”, he concludes. “We may need to tinker a little to get the ideal light recipe for our company. It seems obvious to me that growing under LED is a desired addition.”

 Based on these encouraging results, the trial set-up for the coming season will be determined. Spectrum research and testing different cultivars will be part of this research. For more information on growing strawberries with LED grow lights, please go to www.philips.com/horti.

--- END ---

For further information, please contact:

Global Marcom Manager Horticulture at Signify

Daniela Damoiseaux

Tel: +31 6 31 65 29 69

E-mail: daniela.damoiseaux@signify.com

www.philips.com/horti

About Signify

Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2020 sales of EUR 6.5 billion, we have approximately 37,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for four consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.

 About Innoveins | Fragaria Innova

Innoveins is an ecosystem where organizations cooperate at the cross-over between plants and technology to develop innovations through co-creation and bring them to the market.

Within Innoveins, Fragaria Innova unites ambitious strawberry growers to jointly tackle challenges in the areas of labor, upscaling, efficiency, plant health and resilience, biodiversity, growth media, product quality, continuity, delivery reliability and smart farming.

CEA Food Safety Coalition Details First Indoor-Farming Standards

By AMY SOWDER June 2, 2021

(Photos courtesy CEA Food Safety Coalition)

Inspired by rising food safety concerns after the 2018 Thanksgiving romaine recalls, the CEA Food Safety Coalition is launching the first-ever food safety certification program specifically designed for indoor-grown leafy greens.

“The new standard champions CEA-grown produce as a critical component of safe and secure domestic food supply, especially in times of business disruption as experienced during the COVID-19 pandemic,” Marni Karlin, executive director of the CEA Food Safety Coalition, said in a news release.

Controlled Environment Agriculture, or CEA, has exploded with investment and sales the last few years, as more urban, indoor farms crop up to meet demand.

Soon after organizing in 2019, the coalition educated the Centers for Disease Control and Prevention and Food and Drug Administration about the limited risk of contamination from indoor-produced leafy greens, Karlin said.

“During the Thanksgiving 2019 romaine recall, those government agencies were transparent that CEA leafy greens were safe and did not extend the recall to them. This enabled retailers to keep CEA-produced greens on the shelves and consumers to safely buy CEA leafy greens for their families,” she said in the release.

The team had to create a standard that made sense across the board for the variety of production processes included in CEA — from greenhouses and vertical farming to aeroponic, hydroponic and aquaponic.

“Current food safety standards were written for the field, and many don't adequately address the unique attributes of controlled indoor environments,” Karlin said in the release. “Traditional food-safety risk profiles associated with conventional farming include examining the physical hazards and microbial hazards from water use, herbicide, and pesticide use, and impact from animals and animal byproducts. These do not impact CEA growers in the same way, if at all.”

As a result, a separate set of guidelines is needed.

This new certification process and the accompanying on-pack seal will spread awareness about  CEA and unify these growers while differentiating them from traditional field growers, she said.

“It will allow producers to adhere to a standard tailored to indoor production and give incoming entrepreneurs guidance on the measures they'll need to meet to align with the existing industry,” Karlin said in the release.

The certification program is available to all CEA food safety coalition members for a small fee, and an external audit to the standard must be completed on an annual basis.

Growers are assessed across four key areas:

1. Hazard analysis: All potential hazards associated with a producer’s practices, including use of water, nutrients, growing media, seeds, inputs, and site control;

2. Water: Often used by CEA producers, recirculated water requires a continuing hazard analysis throughout its life cycle and zone-based environmental monitoring based on company-specific risk assessment, she said;

3. Site control: All food contact surfaces and adjacent food contact surfaces, including plant containers, must be considered and associated with potential farm physical hazards, including lighting, robotics, sensors, equipment, and utensils; and

4. Pesticide and herbicide use: Even though CEA-produced greens generally don’t use pesticides or herbicides, this module evaluates the potential risk of pesticide contamination and addresses if residue testing is required, she said.

“Consumer interest in food labels is high and shows a genuine desire to shop smarter,” Karlin said. “For consumers to truly make informed purchasing decisions, we need to explain what the labels mean, the process of certification and which labels they can trust.”

North America’s Indoor Farms Plan To Add 500-Plus Acres Over Next 5 Years

June 7, 2021 Lauren Manning

Indoor farming analytics provider Artemis has just released its annual State of Indoor Farming report, which reflects a survey of 205 enterprise horticulture facilities across the US and Canada. Put together in partnership with research firm Startle, the report’s goal is to assess where the region’s industry is today – as well as giving growers a voice around the latest trends, challenges, and opportunities it presents.

It covers everything from container farms to high-tech glass greenhouses and vertical farms.

“One thing we did this year that was different from last time was asking things like, ‘How are you actually getting capital? How are you getting contracts with buyers? How did the mechanics work to make sure that you can actually expand and build projects?'” Artemis co-founder and CEO Allison Kopf tells AFN.

“There are some really interesting tidbits that might go unnoticed, like the small number of people who indicated that part of their expansion plan includes packing operations. I think this is probably driven by Covid-19 and the supply chain holes that we saw. Doing more on-site packing and increasing on-site capacity is very different from field ag.”

A few other notable findings from the report include:

• 77% of respondents are growing multiple crops while 23% are growing a single crop.

• The three most commonly cultivated crops indoors are leafy greens (26% of total), herbs (20%), and microgreens (16%). Tomatoes (10%), cucumbers (8%), peppers (8%), ornamentals (6%), and strawberries (6%) round out the list.

• The average revenue reported by growers selling the leading indoor crop, leafy greens, is $7.82 per pound.

• Inputs remain one of the biggest drivers of operational costs for indoor growers with average annual costs for seeds ($24,989), grow media ($19,190), and nutrients ($17,510) among the most expensive.

• Retail and grocery outlets (28%) remain the dominant sales channel for indoor growers, followed by direct-to-consumer outlets (26%) and wholesale accounts (17%).

Indoor growers are also eager to expand their footprints. Roughly three-quarters have expansion plans that they aim to execute in the next five years. If they are successful in their endeavors, they’ll add a predicted 544 acres to North America’s indoor farming industry.

Technology adoption indoors

The indoor farming industry has a big appetite for technology, according to the Artemis report. Just over a third of respondents are using mainly tablets and mobile phones to run their daily operations, with 24% using desktop computers. Six percent have adopted barcode scanners.

When considering new technologies, 39% of indoor growers are eager to find solutions to manage operations more efficiently. Lowering the cost of production (20%) and increasing yields (19%) are also high on the tech discovery list.

Investing in technology and understanding it is a critical ingredient for success, according to Kopf.

“Now that the market has established itself, you’re going to see a lot of technology in the next few years come on to the market. New hardware, new sensors, new control systems, new lighting, new physical structures, new growing system automation, robotics, AI — you name it,” she says.

But the increase in choice comes with its own problems. Some growers may find themselves overwhelmed by the flood of new offerings, or lack the time to research the optimal products for them.

“Being able to find the right stuff to operate the facility the way you want for the crops that you are growing is going to be really, really critical. [Tech vendors] that differentiate based on product are going to stand above the rest,” Kopf suggests.

This could include products that help indoor farms prove they are carbon neutral or negative, opening up a new world of branding and marketing opportunities.

Advancements in breeding technology are also starting to open the door to new types of crop cultivation. As developments in genetics unlock the right varieties for indoor conditions, the industry will be better equipped to move beyond leafy greens and herbs.

Suited for public markets

As more indoor farming startups raise substantial rounds or take their companies public — like AppHarvest and Aerofarms have done recently through SPAC mergers — questions are bubbling up around whether the momentum can last.

For Kopf, the fact that indoor farms are producing tangible products differentiates them from some of the other hyped subsectors within agrifoodtech. Indoor farming operations can also involve substantial physical infrastructure, making them well suited for public markets, she says – while they can also tick the increasingly important ESG box for investors. As a result, she sees more SPAC deals and IPOs on the horizon.

There’s also room left for indoor farming to expand in certain geographies where massive consumer markets await.

“If you look at the Netherlands or Spain, markets where greenhouse production is commonplace, we’re really behind in the US. If you’ve got plenty of room to grow – that changes the dynamic,” Kopf says.

“I don’t think we are anywhere near where we will be in the next five to 10 years, which to me indicates you’re not in a bubble. You’re in the early stages of a transitional period for an industry as a whole.”

Vertical Farming Startup Hopes To Make Fresh, Healthy Greens More Affordable Across America

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May 28, 2021

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Esha Chhabra Contributor

Entrepreneurs

I write about the growing "industry" of social innovation.

Vertical farming startup from Vancouver, Washington, hopes to transform the "greens" industry.

FORWARD GREENS

With land expensive to buy, and farmers facing weather-related changes constantly and a push towards more eco-friendly and local production of food, could indoor (and vertical) farming be part of the answer?

Forward Greens, a Vancouver, Washington-based vertical farm is re-envisioning and repurposing existing machinery, technology, and traditional farming methods. Founder Ken Kaneko who previously worked in tech at Intel and Apple is now looking at how to make indoor farming an accessible resource across the nation. 

Here’s more on his unique journey from tech to agriculture and his new mission to get us growing more green vertically.

Chhabra: You were inspired in Japan. Tell me what you saw there and how it got your wheels turning.

Kaneko: When I was working at Apple, I went to Japan on business to look for real estate for manufacturing electronics components for phones and other devices. Japan used to have many semiconductor and hard-disk manufacturing sites before much of it got off-shored, much like America. We took a look at many of these older sites, which were oftentimes empty or repurposed for other activities. One of the sites was operating as an indoor farm, and that piqued my interest.

My background is in R/D for semiconductors, and the fact that there were plants growing in an old semiconductor fabrication made me think, “Maybe I can try this.” So I did.

Founder Ken Kaneko  | FORWARD GREENS

Chhabra: Why don't we do more vertical farming? It makes a lot of sense from various angles — space, water, cost, etc.

Kaneko: There’s a capital intensity that is not easy to manage. That’s in part due to the fact that a strong vendor and sub-vendor network has not yet matured, so getting the right equipment in place can require big up-front costs. While vertical farming is poised to transform the future of agriculture because of its multiple benefits across the environment, food safety and supply chain, starting a farm can be expensive, especially if it’s built to scale. Production has yet to be formalized so that it can be replicated and used as a template to build multiple vertical farms across the country, and this would help the industry deliver a cost-effective product to consumers in a financially sustainable way.

Another key component is that introducing something new takes time. The idea of vertical farming is gaining traction, but most consumers require education to understand what exactly it is, how it works, its benefits, the things that can be grown, etc. Without that knowledge, it can be an intimidating industry. Produce itself is also heavily commoditized. So many marketing dollars have gone into different brands, farming methodologies, cultivars, etc. Overcoming that, especially as a new entrant, takes time. 

Chhabra: How did you fund this venture?

Kaneko: Forward Greens was funded through a mixture of capital from friends, acquaintances and from my own savings.

Chhabra: What challenges did you face in your first harvest? Any big learning curves?

Kaneko: Everything about this experience has been humbling. For the first harvest, things went surprisingly well with respect to product formulation, product packaging, quality assurance and food safety. The part that was the trickiest was learning how the distribution business works with respect to retailer preference and margin expectations. 

Chhabra: Is vertical farming getting enough traction and support, in your opinion? 

Kaneko: I think vertical farming is beginning to gain traction as a number of facilities are opening up across the country. Vertical farms, in conjunction with controlled environment greenhouses, will likely create a unique market category known for never using pesticides, herbicides or fungicides. Alongside the environmental benefits, these farms provide a significant safety factor that outdoor farming has difficulties in controlling, especially with fresh produce. 

Chhabra: How do you think you can make vertical farming more cost-effective and easier to replicate?

Kaneko: From an idealistic engineering perspective, I would like to think anything is possible in terms of making vertical farming more cost-effective. The difficult part is executing this possibility at a reasonable cost. To do it, the industry requires the collective learnings built on the successes and mistakes of everyone involved. You see something similar with the recent technologies in electronics and automobiles. As companies start iterating on others’ ideas, innovations happen. And when more companies build on these solutions it actually helps drive down costs associated with those solutions.

Forward Greens is highly focused on the costs related to delivering a fantastic product to the consumer. We aim to optimize the cost of the whole process by using existing machinery, technology and methods already tried and tested in agricultural and packaging industries. Our focus is on streamlining production to spend more time pushing the practice toward its intended use: using less land, less water, zero pesticides and prioritizing the environment. Efficiencies in how to use technology lead to new ways to apply the technology. 

Chhabra: What do you make of all this chatter around regenerative agriculture? Where does vertical farming fit into this?

Kaneko: Agriculture heavily impacts greenhouse gas emissions, in addition to the space utilization, deforestation, water and chemical discharge in the environment. And many people are now noticing these effects. Any practice or methodology that helps in mitigating impacts on the environment should be considered as part of the portfolio of solutions. Regenerative agriculture, organic farming, controlled environment agriculture and vertical farming should all be pursued as they optimize on varying impacts. 

Much like negotiating problems spanning science, politics, etc, there is rarely a single solution that addresses all of the issues. I think this is especially true for something as complex as climate change and repairing the environment. 

Chhabra: Do you have to have a branded product to make it a profitable venture or can you just be a classic farmer (albeit vertically) and sell the crop to distributors/ CSAs/ markets?

Any of these models can work. Forward Greens opted to brand our greens because we hope to educate the consumers about the benefits of our methodologies and products. Because we’re indoors, we use no pesticides, herbicides or fungicides. We use 97% less land and 95% less water than traditional outdoor agriculture. As a company and brand, Forward Greens is also able to build local partnerships within our own community through employment opportunities and food donations. These benefits and possibilities are due in large part because we grow our products and distribute them under our brand.

Because farm products traditionally trade many hands, the integrity of the product is oftentimes diluted at each node of the supply chain. The farms, packers, distributors, etc. all have competing interests, so messaging and communication can be inconsistent to the end consumer. Forward Greens believes in what we’re doing and how we’re doing it, so we want to keep a channel of communication open directly with our consumers.

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Esha Chhabra

I cover a new taxonomy that looks at the crossroads of business and impact, particularly brands and individuals who are developing solutions for social and environmental problems. As a freelance journalist, I’ve written for numerous publications, including the San Francisco Chronicle, New York Times, Atlantic, Economist, and The Guardian. In recent years, the Pulitzer Center for Crisis Reporting has supported my reporting from Asia, which looks at sustainable fashion, global health, and technology for development. Follow me on Twitter @esh2440 or on Instagram at @eshatravels.

3 Challenges of Vertical Farming And Their Solutions

Source: Shannon Flynn, ReHack

05/26/21

The world is continuing to grow. By the year 2050, researchers estimate that there will be nearly 10 billion people on the planet. As the population increases, the demand for food and food security also increases. 

Traditional farming methods won’t be able to sustainably keep up with the necessary food production to feed the population. That’s why farmers and researchers have been developing new means of feeding people, especially in urban areas.

The advent of vertical farming has taken the agricultural industry by storm. Although it has proven to be beneficial to farmers and the environment alike, there are some challenges that vertical farmers face. Below are three challenges of vertical farming and their solutions. As long as the solutions are available, vertical farming can still be a reliable way to feed the population.

Vertical Farming Basics

Vertical farming takes traditional farming to new levels — literally. Instead of conventional horizontal, soil-based farming, vertical farming implements hydroponics into vertical buildings. Crops grow upwards instead of outwards.

The buildings use a combination of climate and light-controlled areas to grow the plants. It creates a perfect environment for plants to thrive. This type of farming is optimal in urban areas because it takes up much less space than a traditional farm.

Therefore, populations in cities and urban communities have the opportunity to get fresh produce a few blocks away from their homes. Since most of the world’s population will reside in urban areas, this provides greater food security for them.

 Vertical farming has evolved over the years to include more than just fruits and vegetables. Seafood producers wanted a more sustainable approach to seafood production, so they have also implemented vertical farming techniques. Seafoods like mussels, scallops, and seaweed grow vertically on ropes, which creates a more biodiverse and resilient seafood system.

Challenges of Vertical Farming and Their Solutions

Unfortunately, there are challenges that vertical farmers face that they must solve to meet those future food needs and to remain sustainable. Here are some of the challenges, along with potential solutions, of vertical farming.

Location

Although vertical farms can go almost anywhere, farmers have to choose the correct location. If it’s too far from potential consumers, then it won’t be a lucrative business. One could have the best place, but if there isn’t a demand for food there, then they won’t be able to sell the produce. 

Plus, land in cities can be a bit more expensive. Smaller vertical farms have a more difficult time finding land they can afford, along with permits and insurance.

The solution is to research the considered location for a vertical farm. What kinds of food are the people there looking for? Can a vertical farm provide that for them? Will they be a loyal customer to the farm? Without a good location, a vertical farm won’t get far. Fundraising, loans, and grants are great options for farmers who may not have the funds for a location, too. 

Temperature and Humidity Control

The next challenge is temperature and humidity control. These two need to be spot on to produce vegetables and fruits. Managing them can take a while to overcome. Farmers often have to try various recipes of cooling, dehumidification and heating. Vertical farms are usually well-insulated, so when the weather gets warmer, the farmer must cool it and remove humidity.

Before installing an HVAC system, it’s wise to ask for professional help to know how large of a system will be needed for the building. This is the best solution to this challenge, and it will save a lot of headaches in the future.

Multitasking

Another challenge is ensuring proper management of the entire vertical farm. Many farmers who set out to start their industry in vertical farming rely on themselves and possibly a couple of other people to get all of the work done. Vertical farms attempt to do too many things simultaneously, like growing food and selling technology, and managing day-to-day tasks. 

New vertical farmers should focus on one thing, like growing food and selling it. This helps build a solid customer base. Choosing either growing and selling or developing technology so allows the farmer to put their best effort into it.

Farming of the Future

Vertical farming has become a popular solution to the growing problem of food security. However, there are challenges within the industry that must first be addressed and overcome to remain a sustainable business. These challenges and solutions are excellent learning tools to grow a thriving vertical farm.

Tags: Indoor & Vertical Farming, Processing & Supply Chain | Business Development, vertical farming

Purpose At Work: How Square Roots Is Growing A Sustainable Food Movement

May 24, 2021

Simon Mainwaring Contributor

CMO Network

I write about how to drive growth for purpose-driven brands.

Purpose At Work: How Square Roots Is Growing A Sustainable Food Movement

PHOTO PROVIDED BY SQUARE ROOTS

How can we reduce the climate impacts of our food system? How can we get the freshest produce to people in urban areas? How can we offer fulfilling jobs to today’s youth? These are all issues that Square Roots is working to address. 

“The mission of the company is to bring locally grown food to people in cities, all across the world while empowering the next generation of leaders in urban agriculture,” Tobias Peggs, Co-founder, and CEO of Square Roots, tells We First.

The agriculture startup’s modular and technology-first design is transforming how food is grown and distributed in amazing ways. The scalability and data-driven approach make Square Roots an excellent example of a company demonstrating how to scale business growth and impact.

Founding story

Before Square Roots, Tobias received a Ph.D. in machine learning and had worked for a number of successful startups, one of which was acquired by Walmart. “I worked as a data scientist there for a year. One of the projects they had me do was study global grocery buying behaviors.”  With around 300 million customers, Tobias had a massive amount of data to pull insights from.

“That's a lot of bananas flying all over the world,” he says. “You begin to think about the impact of transportation on the planet. “As food is traveling, nutrients are breaking down and maybe the quality of food isn't as good at the end of long supply chains as it would be for local food. Customers don't have any idea of where that food comes from. The sense of community around food was just lost.”

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Vertical Indoor Farms Make Sense

The insights Peggs was having lit a spark in his entrepreneurial engine. “People want food from all over the world. That's not going to change,” he says. “Instead of shipping food, how about we ship environmental data from one part of the world to the other?”  By collecting data on the best growing conditions, Tobias could hypothetically grow anything at any time of year in a controlled indoor environment made from repurposed shipping containers and deliver that to a nearby retail store on the day it’s picked. “It looks and smells amazing, which also means all the nutrients are intact,” he says. “That was the idea behind Square Roots.”

Peggs cofounded the company with Kimbal Musk, “He would say, ‘Can it feed the world? And are we going to make a massive positive impact? If so, let's figure out how to get this done,’” Peggs recalls. The two innovators began by working together in a WeWork office. “With the experience of being involved in a number of startup companies before—some successful, some failure—I know for sure that if you don't get started, you're going to fail.”   

In the two-man brainstorming sessions, Peggs and Musk would visualize the business at scale. “We saw these modular farms in every city across the world. That is the way that we're able to think about feeding every consumer on the planet with locally-grown food,” Peggs says. “There was a missing piece of the puzzle. There wouldn't be enough farmers to hire to staff all of those farms.” That realization was the foundation of the second pillar of Square Roots’ purpose, “To provide pathways for young people to come into the farming industry and become the future leaders,” he shares. 

Leading with purpose

Purpose At Work: How Square Roots Is Growing A Sustainable Food Movement

PHOTO PROVIDED BY SQUARE ROOTS

Square Roots’ core business was structured to address some of the world’s biggest challenges. Food is interconnected with climate, which also poses risks on outdoor crops. It is also fundamental to public health and prosperity. As the global population rises, our planet’s carrying capacity will be tested. We need to innovate to meet that rising global demand for food. 

The model relies on able-bodied young people to tend to the crops. The talent pool of skilled farmers in the U.S. is aging. The average farmer is 58 years old. “Who the hell is going to grow all the food when our current farmers retire in five or 10 years’ time? ” Tobias proposes. “We had to figure out a way to bring young people into the industry and train them quickly so they could be not just productive farmers, but feel infused about a career in a completely new industry.”

To overcome the hurdle, the founders developed hardware, software and teaching methods. “We had an investment banker who was bored sitting behind a spreadsheet all day. He quit his job to join Square Roots because he wanted to make an impact on the world. He was growing the most delicious kale, you've ever tasted in your life,” Peggs says. “That was six months after making the transition, it was magic to see that.” Within a year they trained 10 people, many with no previous farming experience.

In addition to creating purpose-driven employment opportunities, Square Roots is addressing climate through transportation and waste. “Forty percent of food from industrial systems is wasted. We waste around 3%,” Tobias says. A significant portion of wasted food is discarded before it even hits the shelf, due to damages during shipping or spoiling quickly.  “Because we're indoor, there's a lot of precision, a lot of control. We can grow food for demand.”

Modular design

Square Roots’ structure allows it to be replicated and optimized from a systems approach. It's a distributed model.  “We deploy clusters of these modular farms together so there's some operational scale and the business economics work,” Peggs explains. “Each farm serves its local market and runs its own independent business entity, set on top of a standard technology platform.” Every compound grows, harvests packages and delivers produce to local retailers. “We look after everything from seed to shelf.” 

The growing startup has set up operations in Brooklyn, New York, and Grand Rapids, Michigan with plans for expansion across the Midwest, the North East in cities around the world where demand is large enough. People can see inside the shipping containers and when Covid-19 is under control, you can schedule a farm tour.  “While its a very scalable platform, the consumer experience is a hyper-local one.”

Leveraging data & technology

When it comes to deciding what to grow, Square Roots focuses on crops that require the least amount of energy. “Walk into a supermarket. Lineup every single fruit and vegetable from the lightest to the heaviest. And that's essentially our product roadmap for the next 20 years,” Peggs says. 

They also choose crops based on economic yields based on competitive market prices. “This is where data science and technology marry,” Tobias says. “Outdoor farmers can’t suddenly look at the sun, make it twice as efficient and reduce costs or double their yield. Indoor farmers can.”

Integration of AI machine learning empowers Square Roots to optimize at scale. “We're building a network of cloud-connected modular farms,” Tobias says. The company monitors and collects data from each of those farms every second. “We’re looking at temperature, humidity, nutrients, yield, taste and texture,” Peggs says. “ If in one particular box, a farmer did something or we changed an environmental parameter that increased yield or improves efficiency, we can spot that information from the data and push that new instruction out across the whole network. The whole network is learning how to farm better as we go about building the business.”

Building community

Food has the potential to unite people.  While Square Roots farms are indoors, they connect and share knowledge with outdoor farmers. “ I'll give you an example,” Tobias says. “A good technique in organic farming is known as integrated pest management, where a farmer might release beneficial insects onto the crop, essentially ridding the nasty insects that we don't want. We use that technique inside the farm.”

“The farmers that we work with are very much on the same mission, which is how do we get people more connected with where their food comes from? How do we build that sense of community around food? And I think the common enemy is the industrial food system,” Peggs says. That common enemy also resonates with employees, consumers and other key stakeholders who join together around a set of core values.

“I know pretty much every founder or CEO of every indoor farming company. There's remarkable alignment around that mission,”  Tobias says. “Everybody understands that we've got to change the food system and if we're helping each other out, it's better for all of us,” Tobias mentions companies like Gotham Greens and Oishii that are also innovating in the indoor farming space.

Purpose also informs Square Roots’ investor strategy. “We’re a venture-backed company. When we're talking with investors, we want to make sure that they're mission aligned. I can’t tell you how many investors have talked to me about considering cannabis. It’s not aligned with our mission.” A lot of people don't realize that the power of purpose is just as compelling in terms of what you don't do, as opposed to what you do.

The takeaway here is that building your community around shared purpose fosters goodwill amongst team members and customers. It also presents collaborative opportunities with other brands and organizations working towards the same goal.

Challenges and opportunities

With the opaque information in the industrial food system and increased health consciousness, consumers are looking for transparency.  In addition to its open invitation to check out the farms, the company includes a QR code on each product. You can scan the code and learn all about where it's made and the value chain.

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Purpose At Work: How Square Roots Is Growing A Sustainable Food Movement

PHOTO PROVIDED BY SQUARE ROOTS

Covid-19 has also presented challenges for businesses across sectors and Square Roots is no exception. Before the pandemic, they trained new hires to be farmers in classrooms. “If we didn't have our mission, it would have been easy to say, ‘We got to keep growing, forget this farmer training stuff. We're just going to go hire experienced people.’ Or we could have developed a robot to do part of the job of a farmer,” Tobias says.

“The mission allowed us to focus on solving issues with our current business model,” he continues. “It was already misaligned. Everyone was able to get behind it very quickly. And we were actually able to solve problems and put in place new programs and new policies ridiculously quickly. Never waste a good crisis.”

Despite adversity, the startup has started true to its mission and transitioned to digital and socially distanced training, and built a more robust system than before.

The future of food

Technology and data are a critical aspect of emerging agriculture trends. “Food is a $12 trillion industry,” Peggs states. “There's about 20 companies that have raised a bunch of money and are doing this stuff in America.” 

“Indoor farming actually reminds me of the internet in the early '90s,” he says. “We know this thing is inevitable, but no one can quite yet tell you what shape it's going to take in the future. Indoor farming is like that. We're all helping each other figure out how this eventually feeds every consumer in the world.”

While innovation is budding, “The food system has to become a lot more responsible and sustainable,” Peggs says. “The current food system cannot feed the new future world, which has 10 billion people, 70% living in urban areas that are not near these industrial farms.” 

We’ve seen changes over the last two decades with the organic food movement, which now grosses $25 to $30 billion annually, Tobias says.  He thinks that Covid-19 will accelerate the shift towards healthy and sustainable food. “People were forced to stay at home and cook. You get more curious about the food that you're buying, and you observe how long it lasts in your refrigerator. You get more educated,” Tobias says. “We are in the first inning of indoor farming. We're just getting started.”

Lessons for entrepreneurs

With his experience from Square Roots and beyond, Tobias Peggs’ insights offer valuable lessons for entrepreneurs looking to Lead With We. Here are three teachings from Peggs on how to build a successful startup.

1. “Be prepared to be told, "No, we're not interested."

2. “You have to be a bit of a missionary and sign up for having a lot of stamina. Just be consistent with the drumbeat that this idea—no matter how crazy it might seem—you can do it.”

3. “There are going to be bumps in the road, there are going to be things that don't go quite right. If there's a shared purpose articulation of what the mission is, you move through those things and you make it happen. Purpose is a very powerful multiplier.”

Simon Mainwaring

Simon Mainwaring is the founder and CEO of We First, a strategic consultancy that accelerates growth and impact for purpose-driven brands by putting 'We' first. I specialize in brand strategy, culture building and impact storytelling for startups, high-growth companies, and Fortune 500 corporations. My national podcast is LeadWithWe.com on Spotify, Google and Apple. My book, We First: How brands and consumers use social media to build a better world is a New York Times, Wall Street Journal, and Amazon bestseller, and strategy+business named it the Best Business Marketing Book of the Year. I deliver keynotes, training, and workshops that help brands define, integrate and activate their purpose to drive growth and scale impact.

Visit SimonMainwaring.com for speaking and WeFirstBranding.com for consulting

Vertical Harvest Maine, Sodexo Pair For Local Produce On College Campuses

Indoor Farming Partnership Will

Increase Local Produce Served

On Maine’s College Campuses

May 18, 202|

Source: Sodexo SA

Westbrook, Maine, May 18, 2021 (GLOBE NEWSWIRE) -- Sodexo, a global foodservice provider and one of Maine’s largest employers, today announced that it will source as much as 80-percent of its lettuce products from Vertical Harvest Maine, the State’s newest hydroponic urban farm, and the first vertical greenhouse in the United States. The produce will be served at all fourteen Sodexo partners, including collegiate campuses from Fort Kent to South Portland. Earlier this year, Sodexo pledged to spend at least $1M at local Maine farms and food producers in 2021.

“We are a global company that is committed to spending locally,” says Varun Avasthi, Director of Strategic Partnerships, Sodexo. “One challenge we face when sourcing local food is Maine’s short outdoor growing season. The partnership with Vertical Harvest will be a game-changer for Sodexo’s ability to buy fresh produce twelve months per year,” Avasthi added.

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In August 2021, Vertical Harvest Maine (VHM) will break ground on a 70,000 square foot, four-story farm in downtown Westbrook. Developer TDB LLC says that the master plan integrates residential apartments, commercial space, and four stories of parking. The company plans to grow over 1-million pounds per year of local produce, create 50 jobs, and hire Mainers with physical and intellectual disabilities, in coordination with State and local agencies. This year, Fast Company recognized Vertical Harvest in their annual “World Changing Ideas” awards, which honors businesses that are innovating solutions to world problems.

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“VHM’s output will displace out-of-state produce and will not compete with local, traditional farms,” says Nona Yehia, Vertical Harvest founder. With the majority of Maine’s produce imported, VHM founders say indoor farming will have a positive impact on Maine’s agricultural output. “VHM is extremely proud to grow local food, and to create meaningful jobs for Maine’s underemployed,” Yehia says. The Westbrook location is the second for Vertical Harvest, the first is in Jackson Hole, WY.

“This partnership illustrates how strategically the Maine business community works together,” says Glenn Cummings, President, University of Southern Maine. “The partnership between Sodexo and VHM enforces our commitment to serving Maine-grown food whenever possible – it is a win-win,” Cummings said.

“This project exemplifies the goals and vision of Maine’s 10-Year Economic Development Strategy,” said Heather Johnson, Commissioner of the Department of Economic and Community Development.

Sodexo is one of Maine’s largest employers, with 760 employees and a $21M payroll. It serves 13,000 meals daily at colleges and hospitals across Maine, including Central Maine Medical Center and Southern Maine Community College. In 2015, Sodexo founded The Maine Course, a local organization with a mission to increase the company’s local food spend annually.  Sodexo and VHM will prepare for the first harvest, which is planned for the Fall 2022 academic year.

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About Sodexo North America” Sodexo North America is part of a global, Fortune 500 company with a presence in 64 countries. Sodexo is a leading provider of integrated food, facilities management, and other services that enhance organizational performance, contribute to local communities and improve quality of life for millions of customers in corporate, education, healthcare, senior living, sports and leisure, government, and other environments daily. Sodexo is committed to supporting diversity and inclusion and safety while upholding the highest standards of corporate responsibility and ethical business conduct. In support of local communities across the U.S., in 2020, the Sodexo Stop Hunger Foundation mobilized 10,000 Sodexo volunteers to distribute 4.1 million meals to help 5.9 million children and adults meet their immediate food needs. Since 1996, the Stop Hunger Foundation has contributed $36.7 million to help feed children in America impacted by hunger. To learn more about Sodexo, visit us.sodexo.com, and connect with us on Facebook, Instagram, LinkedIn, Twitter and YouTube.

Photo Credit: Harriman and GYDE ArchitectsPhoto Credit: Harriman and GYDE Architects

Contact Data

Dasha Ross-Smith
Sodexo
Dasha.Ross-Smith@sodexo.com