Hedging Against Global Supply Chain Shortages

By Rebekka Boekhout

August 9, 2021

COVID-19 has had an enduring, adverse impact on global supply chains. What started as a hand sanitizer and toilet paper shortage has evolved into a multifaceted supply chain breakdown affecting numerous manufacturing pipelines. At the heart of these disruptions is something small and unsuspected by those unaccustomed to tech design: semiconductor chips.

Semiconductor memory chips store data on computers and storage devices. They play a pivotal role in various technologies; everything from smartphones to cars to, you guessed it, container farms need semiconductors to function. A shortage of something this essential can upend the market as we know it and slow the pace of indoor agriculture’s growth.

Jumpstarted by pandemic mayhem, supply chain failures have become a consistent cause for concern for businesses across the globe. How has this issue become the norm in the current business landscape? Well, the answer comes down to simple economics: supply cannot meet demand.[1]

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Vertical Farming: Growing Up After The Pandemic

July 29, 2021

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

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

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

• Laborers were unable to tend to the crops.

• Farmers were unable to get their produce to market.

• Restaurants, schools, and independent stores were shuttered.

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

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

1.) Proximity to Markets Results in Efficient Distribution

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

2.) Innovative Technology Boosts a Growing Industry

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

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

• Lighting

• Irrigation

• Nutrients, PH, and CO2 levels

• Air temperature and humidity

• AI, big data, and intelligent controls

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

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

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

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

4.) Labor Profile Shift Reduces Operational Overheads

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

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

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

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

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

Hydroponic Farming: Need of The Hour During Pandemic And Its Growing Trend In India

May 19, 2021

According to the World Economic Forum, the global population is expected to reach nearly 10 billion by 2050, making the requirement of food 60 percent higher than it is today.

Agriculture in India has always been governed by variables - weather, quality of soil and seed, availability of water, skilled labour, etc.

By Shivendra Singh,

The onset of the COVID-19 pandemic has made everyone housebound. Right after the announcement of the lockdown, people rushed to grocery stores to stock up shelf-stable items like packed, frozen food and other essentials. That’s when many Indians realised the need for nutrition, health outcomes of food and how vulnerably it is dependent on supply chain and climate change.

On the other hand, scientists are stressing over the past decades that human actions are pushing life towards disaster. The steep surge in the demand for food production, transportation and processing are putting enormous pressure on the planet. According to the World Economic Forum, the global population is expected to reach nearly 10 billion by 2050, making the requirement of food 60 percent higher than it is today. The report also suggests that there will be a shortage of arable land to meet this burgeoning demand for food production.

The anticipated scenario of food requirement and shortages spurred many Indians to consider planting vegetables in their backyard or rooftop. This has enabled people to invest in high tech urban farming systems and produce fresh vegetables more efficiently.

The Revolution of Hydroponic Farming

Agriculture in India has always been governed by variables – weather, quality of soil and seed, availability of water, skilled labour, etc. Additionally, the increase in food production in India has always been at the expense of the water supply. As per the estimates, around 70 percent of the world’s freshwater is used for agriculture, on the other hand, the 70percent of water contamination also comes from agriculture. With the integration of technology in agriculture, it has become easier to grow food in cities through urban farming or high-tech hydroponic farms. This is becoming key to improving nutrition and dealing with the disruptions in the food supply chain.

Hydroponic has been around for decades but with the efforts of new-age agritech startups, it is evolving into innovative urban farming methods. Hydroponic farming which simply means growing fresh vegetables and fruits in nutrient-rich water instead of soil requires less space and resources. Based on modernised techniques, soil-less farming results in higher productivity in a controlled climate and with no risk of the attack of the pests and insects. Agritech startups in the market are providing every possible support for hydroponic farming set-up. For the first time in India, few agritech startups are providing Buy Back option for hydroponic produce as well as Bank Guarantee. It will further boost the hydroponic farming technique in the country.

Given the present ‘stay at home’ scenario, hydroponic farming is gradually becoming a household trend in India. The hydroponic systems are designed in a way that provide healthier, fresh and more nutritious produce with longer shelf life. The technology helps in saving valuable water, land and labour resources that further creates an efficient ecosystem. Moreover, the controlled growing system enables the production of food with no use of harmful chemicals resulting in 100 percent residue-free farming.

Immunity has become the new buzzword

The pandemic had made it necessary to understand the importance of adequate nutrition to maximize their health, boost immunity and reduce the risk and impact of the virus. Having a strong and resilient immune system is the need of the hour. Thus, the devastating aftermath of the pandemic should be a catalyst to expand our taste, knowledge and awareness and contribute to building a more efficient and sustainable food system.

Usually, human beings underestimate the power of good choices and individual behavioural change in creating a healthier food system. Adopting a hydroponic farming system helps align the food habits with the wellbeing of the planet and helps people turn from being ‘junk foodies’ to genuine chemical-free food lovers. As a result, it helps consumers become more concerned about the environment and reshape their eating habits to reduce the vulnerability of the disease.

Bottomline

Hydroponic farming is thriving in India. One of the major factors driving its growth is also the technology curve that diminishes costs and helps in scaling its operations. Further, integration of Artificial Intelligence and Data Analytics measure important indicators that help in food/crop planning and hence help connect in the food security ecosystem. Besides the technological factors, the need for creating a smarter and green market in highly populous nations also creates space for hydroponic farming (rooftop or vertical farming) to grow as a trend.

(The author is Founder, Barton Breeze, India’s Fastest Growing Commercial Hydroponic Farm Specialist. Views expressed are personal and do not reflect the official position or policy of the Financial Express Online.)

Indoor Farms Gaining Investors As Pandemic Disrupts Food Supplies

BY KAREN GRAHAM

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BY KAREN GRAHAM | 02-19-21

IN TECHNOLOGY

Seed money from investors is helping indoor farms to position themselves as one of the solutions to climate change and pandemic-induced disruptions to the harvesting, shipping, and sale of food.

When the coronavirus pandemic hit, it also exposed major issues with our food supply chain, including some issues that have already been attributed to climate change-related impacts.

The COVID-19 pandemic created shipment delays, and with inadequate demand forecasting, store produce departments suffered. This is when local vertical farms and indoor growing operations were able to step in and "fill in the gaps in a way that was unprecedented," writes GreenBiz

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Water scarcity has been exacerbated in recent years by growing urbanisation and increasing demand from agriculture and industry. Fethi Belaid, AFP/File

There is a whole list of companies that are planning to build on their newfound momentum in 2021. And indoor farming is expected to grow. In 2019, revenue from vertical farming alone was estimated at $212.4 million. Forecasts now call for the industry to hit $1.38 billion by 2027, a compound annual growth rate of 26.2 percent from 2021 to 2027.

There are a number of established key players in the indoor and vertical farming industry, including Amazon-backed BrightFarms, AeroFarms, and Plenty reports Reuters.

An acceleration in funding for this industry lies ahead, after pandemic food disruptions - such as infections among migrant workers that harvest North American produce - raised concerns about supply disruptions, said Joe Crotty, director of corporate finance at accounting firm KPMG, which advises vertical farms and provides investment banking services.“The real ramp-up is the next three to five years,” Crotty said.

First developed around a decade ago, vertical farms have taken off in Asia and the United StatesThibault Savary, AFP

Vertical farming saves space

Vertical farms are a type of controlled-environment agriculture, which aims to optimize plant growth using soilless farming techniques such as hydroponics, aquaponics, and aeroponics. Vertical farms grow leafy greens indoors in stacked layers or on walls of foliage inside of warehouses or shipping containers.

The main advantage of utilizing vertical farming technologies is the increased crop yield that comes with a smaller unit area of land requirement.

The U.S. Department of Agriculture (USDA), says urban farming increases food security at a time of rising inflation and limited global supplies. And the USDA is seeking members for a new urban agriculture advisory committee to encourage indoor and other emerging farm practices.

More about indoor farms, food supply, technology, food security

Read more:http://www.digitaljournal.com/tech-and-science/technology/indoor-farms-gaining-investors-as-pandemic-disrupts-feeo-supplies/article/585761#ixzz6mwBqwKxt