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

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

Image from: Yehoshua Yosef

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

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

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

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

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

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

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

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

Q: How exactly? 

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

Image from: Future Crops

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

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

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

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

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

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

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

Q: What about the taste? 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Image from: MeaTech

Q: Why do you use 3D printers? 

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

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

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

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

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

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

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

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

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

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

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

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

Is AppHarvest the Future of Farming?

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

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

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

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

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

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

Advice For New Vertical Farmers: Grower Spotlight on Andrew Worrall

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

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

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

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

How has vertical farming impacted your life?

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

Image from: LettUs Grow

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

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

How much of our food should be grown this way? 

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

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

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

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

Image from: LettUs Grow

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

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

What was the biggest change you encountered in the industry?

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

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

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

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

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

Image from: LettUs Grow

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

Mums To Marijuana: Pequannock, New Jersey, Family Farm Applies For License To Grow Medical Pot

Jai Agnish, North Jersey Record

2018

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(Photo: Jai Agnish/Northjersey.com)

Ken VandeVrede, of Gro-Rite Garden Center & Florist and CEO of Hillview Med in Pequannock discusses applying for license to farm medical marijuana. Jai Agnish, Staff Writer, @jaiagnish

Fifty years ago the VanderVrede family delivered tomatoes from the farm in Pequannock to customers in Paterson. If the state allows, the family may soon replace the tomatoes with medical marijuana.

Gro-Rite Garden Center & Florist has applied for one of six available state licenses to grow medical marijuana on its 150 acres of farmland in Pequannock and Belvidere under the name Hillview Med. 

"It's very competitive," said Ken VandeVrede, the CEO of Hillview Med in Pequannock.

The farming family is among 147 statewide applicants, 49 in North Jersey, including Evergreen Cultivation in West Milford, who want to cultivate, process, and sell medical marijuana. Two licenses will be awarded in North Jersey, two in Central Jersey and two in South Jersey. There are currently six active state licences in circulation.

The family sees the connection to Paterson as a natural one, VanderVrede said, after all that is where his grandfather started off delivering his tomatoes in the early days of the business after immigrating from Holland.

The New Jersey Board of Health is expected to announce which applicants will receive a license on Nov. 1. 

"It would be absolutely amazing," VanderVrede said of landing one of the coveted licenses. "For us to get in on the ground floor of the medical cannabis market in New Jersey would be amazing."

Why medical marijuana?

The Hillview Med proposal results from Gov. Phil Murphy’s early-summer move to double the state’s marijuana providers to meet growing demand. With more than 28,000 registered patients by early July, the state program is on track to double its numbers in 2018, state records show.

"We consider this as the next evolving space in the  agriculture space," VandeVrede said.

Hillview Med is also trying to be ready if recreational marijuana is legalized in the state, VanderVrede said. A bill to create a legal marijuana marketplace in New Jersey is nearly complete.

Based on what's happened in other states, medical marijuana growers will likely be grandfathered in and have a foot in the door to grow legal recreational marijuana, VandeVrede said.

The distinction between medicinal versus recreational use marijuana is determined at the consumer end, VanderVrede explained. It's just taxed differently.

"We feel we have a very, very strong application," VandeVrede said.

The move from growing mums to marijuana could be made in seven months, he said.

Gro-Rite ships hundreds of thousands of plants and flowers on a weekly basis to supermarkets including ShopRite, Whole foods, and others in a number of states including Virginia and Pennsylvania.

Among the products are hydroponic basil, which is grown in state-of-the-art greenhouses. The company has 750,000 square feet of greenhouse space on the two farms and is permitted to build  2.2 million square feet more. That's the equivalent of 13 football fields with the potential for 38 more, he said.

"We can expand quickly," VandeVrede said. 

The other plus, the CEO said, is the farm can get an affordable product to market. 

Hillview Med can produce a pound of marijuana for under $400, VanderVrete said on Thursday. He said applicants who plan to open a warehouse and use electricity will find it difficult to get below $1,000 a pound.

"The lowest cost producers are the ones with high-tech greenhouses," he said. 

These are computer- and sensor-based systems to control temperature, humidity, and water metrics. Also, the use of a sealed, closed-loop temperature system avoids having to vent out stinky marijuana odors during production. 

"I don't have many neighbors but I wouldn't even want to go there," VandeVrede said.

In addition to sustainably cultivated agriculture products, Gro-Rite's food and herb lines are certified organic. This approach would carry over to marijuana even though VanderVrede said certified organic cannabis is not a thing yet. 

"We know how to grow food at the highest level that there is, so for us to move into the cannabis  space, this is automatic production that we do already," he said.

It's a vertical integration license meaning Hillview Med would grow the plant, extract it into oils, edibles, pills, vapes, and distribute products to dispensaries. 

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Ken VandeVrede, of Gro-Rite Garden Center & Florist, and CEO of Hillview Med in Pequannock. (Photo: Courtesy of Ken VandeVrede)

Why the Paterson market?

Hillview Med chose Paterson for several reasons, one being the family's history of delivering produce to the "Silk City" going back 50 years. More recently Gro-Rite has provided fresh produce to food banks there and has forged relationships with community groups. He said the company would hire Paterson residents to work in the dispensary.

"We've done a lot of exciting stuff in Paterson," he said.

Another reason is the diversity of the city's population. Having a marijuana dispensary in an urban city helps fulfill the licensing goal to promote inclusivity with minorities, VandeVrede said. 

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Hillview Med/Gro-Rite Garden Center & Florist in Pequannock applied for a license to grow and distribute medical marijuana. (Photo: Jai Agnish/Northjersey.com)

Gro-Rite's expansion into the cannabis market would be a remarkable change for the family, said VandeVrede during a recent tour of the farm. He reminisced about when he worked on the Pequannock farm as a child. His father was in charge then and he expanded to farm into Belvidere. 

VandeVrede, a non-active private pilot, said it would be fun to one day fly a helicopter from nearby Lincoln Park Airport to the grass strip at the Belvidere farm. Such a costly flight may not  be so out of reach if his company secures one of the lucrative medical marijuana farming licenses.

Staff writer David M. Zimmer contributed to this article.

Follow Jai Agnish on Twitter: @JaiAgnish. Email: agnish@northjersey.com.