Efficiency Not Size Matters In Vertical Farming
September 20, 2018
Vertical Farming Expert
Several VF professionals have recently warned against exaggerated claims in the industry. I much agree with these warnings because exaggerated claims can have a negative impact on the industry if they are not backed by reality.
I would like to add another point to the debate. In the past years, VF companies have competed in an attempt to claim the largest vertical farm in the world. This is a dangerous trend. Vertical farms must first and foremost be efficient.
They must be able to make profit. Lately, Crop One and Emirates has announced a project to build a vertical farm in Dubai with daily capacity of 6.000 pounds. The price - $40 million! In comparison, our vertical farm in Shenzhen, China with roughly same capacity was less than $15 million.
I have made feasibility studies of VF projects in Asia, Europe, and Africa and against this background I worry the project in Dubai will not make profit anytime soon because of the extremely high capital expenditure. Therefore, I urge VF professionals to be careful.
Do not get caught up by the race to build the largest vertical farm. Have a strict focus on costs. These large headline projects must be successful and profitable; otherwise investors will run away from the industry.