How AgriTech Is Playing A Key Role In Greenhouse Vegetable Production

By Brian D. Sparks

June 2, 2021

Editor’s Note: This is the last of a four-part series covering of growth of Kentucky Fresh Harvest as it prepares for its first crop. Check out the previous parts of the series here.

In support of Kentucky Gov. Andy Beshear’s vision of a diverse and resilient agricultural industry in Kentucky, one of the keys to the long-term growth plan of Kentucky Fresh Harvest is its involvement with the Kentucky AgriTech Initiative. This initiative is designed to highlight Kentucky’s unique position to offer an environment that can attract, develop, and sustain agritech-related enterprises.

In this exclusive interview with Greenhouse Grower, Gov. Beshear provides a closer look at the AgriTech Initiative and how companies like Kentucky Fresh Harvest are building a brighter future for the commonwealth.

Greenhouse Grower: Can you give an overview of the Kentucky AgriTech Initiative, why it was formed, and its goals?

Gov. Beshear: Last June, I took several steps, including creating an AgriTech Advisory Council, to keep my promise to build America’s AgriTech capital in Kentucky. The council includes representatives from farming, education, labor, civic life, and representatives from leading companies in the commonwealth such as Alltech, AppHarvest, Black Soil, and Kentucky Fresh Harvest.

Your readers are familiar with Kentucky Fresh Harvest, which cares about where our food comes from, how our food is grown, and who grows our food. These are all elements that align with the Kentucky AgriTech Initiative. Because of this, they have been able to revolutionize the protected agriculture industry and become an authority on vegetable production in Kentucky.

Kentucky Fresh Harvest already has been through the growing pains associated with building a greenhouse of this scale. So, it made sense for them to join the AgriTech Advisory Council nearly a year ago in our collective mission to highlight and develop Kentucky’s tremendous potential to help solve one of the greatest challenges of our generation: producing reliable, safe, and accessible food for the world. While that challenge is prevalent today, the expected global population surge in between now and 2050 will only amplify its severity. Team Kentucky is addressing this by combining three signature strengths: Kentucky’s prowess as a national leader in both manufacturing and logistics, along with our deep roots as an agricultural state.

The initiative will attract and cultivate good-paying, private-sector jobs and companies that create technologies, services and produce to help feed the world.

Our AgriTech Advisory Council’s goals for the initiative:

• Create good jobs and strengthen Kentucky’s economy;

• Attract local and global technologies and partners that support the development of innovative agriculture in the commonwealth;

• Craft policies that spur the development of our agritech ecosystem;

• Develop local supply and demand for technologies and agricultural products grown and manufactured here in Kentucky;

• Develop and attract the necessary workforce to sustain the agritech ecosystem;

• Help develop access to capital for new and innovative businesses in this sector; and

• Build necessary cooperation channels between interested players.

Greenhouse Grower: What are the benefits of the initiative to both consumers and growing operations?

Gov. Beshear: By harnessing the assets in our backyard, the AgriTech Advisory Council seeks to develop an environment in which consumers gain better access to healthy food, obtain a more thorough understanding of where their food comes from, and realize the benefits of supporting local, sustainable farms. Relative to growing operations, the initiative focuses on helping them do what they do best – run their businesses while relying on Team Kentucky as a partner that shares their vision for a more sustainable, equitable, and resilient food system based right here in the Bluegrass State.

Greenhouse Grower: How can growers get involved?

Gov. Beshear: We want to hear from growers, no matter the size of their operations. We believe there are a number of opportunities for collaboration among growers and other innovators from all sectors – from greenhouse vegetable producers to our advanced manufacturing and logistic sectors. We even offer opportunities on all levels of the educational and workforce training system so that some of our youngest minds can look forward to becoming a part of the industry. If you are in a position to showcase your work or engage with Kentucky students, please contact us. Visit www.agritech.ky.gov.

Greenhouse Grower: What has been Kentucky’s experience of working with Kentucky Fresh Harvest?

Gov. Beshear: Kentucky Fresh Harvest has been a great partner of the commonwealth and true pioneers in the state’s high-tech greenhouse sector. Rocky Adkins, my Senior Advisor, and I visited the site in Lincoln County recently, and it was great to see the rich promise of agritech in Kentucky on display. The company’s scientific approach shows us that certain obstacles of large-scale agritech are no longer relevant. Kentucky Fresh Harvest’s dedication to education and inclusivity are great examples of excellent corporate citizenship and ambassadorship for the industry as a whole.

By Brian D. Sparks

Source and Photo Courtesy of Greenhouse Grower

US-VIRGINIA: Arlington’s Only Commercial Farm To Expand, Double Production

ARLnow.com

Believe it or not, Arlington County has a working commercial farm.

The farm, which is located in a commercial building along Lee Highway, uses hydroponic technology to grow a variety of edible plants indoors. And it’s about to expand.

Virginia Gov. Ralph Northam announced this afternoon that Fresh Impact Farms will be getting a $30,000 grant — half from the state, half from the county — that will help it double production and create six jobs.

Fresh Impact, Arlington County’s only commercial farm, is banking on its restaurant customers ramping up purchases as vaccinated customers flock back to the indoor dining. It also launched a direct-to-consumer Community Supported Agriculture program last year.

County Board Chair Matt de Ferranti hailed the business and its expansion.

“Governor Northam’s award to Fresh Impact Farms, Arlington’s only commercial farm, is an innovative way to celebrate unique uses of technology to help a small business pivot during the pandemic,” de Ferranti said in a statement. “I am thrilled that Fresh Impact Farms is growing and looking to the future of a sustainable food supply.”

More on the company’s expansion, below, from a press release issued by the governor’s office.

Governor Ralph Northam today announced that Fresh Impact Farms will invest $137,500, create six new jobs, and more than double production at its Arlington County indoor facility. Operating since 2018 as Arlington’s only commercial farm, Fresh Impact Farms uses proprietary hydroponic technology to grow a variety of specialty herbs, leafy greens, and edible flowers for sale to customers in the Greater Washington, D.C. metro area.

Like many companies, Fresh Impact Farms has pivoted its business model amid the COVID-19 pandemic. Seizing the opportunity created by more people cooking at home, the company initiated a Community Supported Agriculture (CSA) program targeting area residents. The CSA program, which focuses on leafy greens and home kitchen-friendly herbs, has grown steadily since its establishment in April 2020 and now includes smaller wholesale clients. Now, with vaccinations underway and the restaurant industry poised to rebound, Fresh Impact Farms is expanding, which will allow the company to resume supplying their restaurant customers, while also meeting new demand through their CSA program.

“Agriculture continues to be a key driver of our economic recovery in both rural and urban areas of our Commonwealth,” said Governor Northam. “Innovative, dynamic businesses like Fresh Impact Farms are demonstrating how exciting new opportunities can grow out of pandemic-related challenges. I congratulate the company on their success and am thrilled to award the first-ever AFID grant to Arlington County to support this expansion.”

This expansion by Fresh Impact Farms will include a second grow room, larger production facility, and an educational hub where, post-pandemic, customers will be able to see how their food is harvested. Over the next three years, the company expects to grow an additional 10,500 pounds of Virginia-grown leafy greens, herbs, and edible flowers for restaurant and CSA customers.

“Agriculture is Virginia’s largest private sector industry and the Commonwealth continues to be on the forefront of emerging agriculture technologies,” said Secretary of Agriculture and Forestry Bettina Ring. “I am inspired by Fresh Impact Farms’ commitment to not only bringing fresh, local produce to Virginians, but also for its commitment to educate our community about how local food is grown.”

“2020 was undoubtedly one of the hardest years in recent memory for many people and businesses, but I’m heartened by the strength and flexibility the entire Fresh Impact Farms team has shown in our deep pivot to consumers and a CSA model to help us get to the point where we are ready to expand our business,” said Fresh Impact Farms Founder Ryan Pierce. “The support and generosity from the Commonwealth and Arlington County will be valuable as we expand our production and move towards a hybrid model of serving both the needs of restaurants and consumers. As the owner of a local food business, nothing gets me more excited than seeing the community come together in support of local food. The future is bright for urban agriculture and this grant will help us make an even greater impact in our community.”

The Commonwealth is partnering with Arlington County and the Arlington County Industrial Development Authority (IDA) on this project through the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which is administered by the Virginia Department of Agriculture and Consumer Services (VDACS). Governor Northam approved a $15,000 grant from the AFID Fund to secure the project for Virginia, which Arlington County will match with local funds.

“The Arlington County IDA’s match of the Governor’s AFID grant to Fresh Impact Farms represents an important investment in urban agriculture, sustainability, and technology,” said Arlington County IDA Chair Edwin Fountain. “This project will advance the County’s innovative and forward-thinking approach to developing new sectors of economic activity in Arlington.” […]

“Congratulations to Fresh Impact Farms,” said Senator Janet Howell. “This expansion not only supports our local economy, but also has a significant impact promoting healthy families and vibrant communities as a whole.”

“I am delighted Governor Northam has approved a grant from the AFID Fund to deliver this project for the Commonwealth and Arlington County,” said Delegate Richard Sullivan. “Fresh Impact Farms has been a pivotal resource for providing fresh food to the community. This expansion shows a commitment not only to homegrown produce, but to a healthier community and local economy in Arlington.”

A Fully Automated Three-Dimensional Vertical Farm Comes Into Operation

Eponic Agriculture Co. Ltd is a supplier of indoor farming equipment. Alice, the company's director, introduced the recently fully automated production system of a stereochemical vertical farm.

"The current three-dimensional indoor farms on the market are based on semi-automated workflow, with some links requiring additional equipment configuration and no continuity in the whole planting system. In order to solve this problem, we developed and designed a complete automated planting system, including the processes from sowing to planting, full-spectrum planting light control, fertilization, harvesting, and cleaning. Which are all done by automated equipment. Whereas all procedures can be controlled by intelligent software with real-time monitoring, data collection, and many other functions."

Benefits of an automated farm
When talking about the advantages of the automated equipment, Alice said, "Take our recently built 20-layer vertical farm as an example. First of all, the mechanical sowing time is 10 times-30 times faster than manual sowing. And on top of that, the use of automated equipment can realize precise planting and efficient communication of multi-layer planting surfaces. The 20-layer vegetable trays are automatically transferred to the ground for uniform watering, harvesting, and cleaning. This greatly improves productivity. 

Secondly, the use of lift trucks is required when handling high-level crops. There are certain safety hazards in using lift trucks in a small space. While operating the automated equipment, only a tablet computer is needed to control the whole planting process, which is much safer and more convenient."

Although automated vertical farm systems have many advantages, their application in China is not yet popular. "In terms of production design, we have gone through countless experiments to design the most suitable software program. As well as hardware equipment for practical planting applications. Luckily after a long period of research, we finally chose the most cost-effective and suitable materials. The R&D investment is large and time-consuming.”

From a cost point of view, according to Alice, a fully automatic system is 2-3 times higher in costs than the semi-automatic system which is currently used more often. Most traditional agricultural companies find it difficult to accept such high initial costs. Thirdly, the automated system requires high technical requirements for farm managers. Managers need to have an understanding of both planting technology and software. Alice adds: “It is for these three reasons that the application of fully automated stereoscopic systems is not very common in China and other countries."

Automated planting
"Although the application is not yet widespread, I think fully automated stereoscopic planting is a trend. Urbanization has led to a reduction in arable land and soil pollution has triggered problems with pests and pesticide residues in fruits and vegetables, and the development of three-dimensional agriculture is the only way to maximize and optimize output in a limited area. Currently, stereoscopic planting plants still require a lot of manual labor to operate. As labor costs rise and planting techniques require more precision, the use of automated equipment will be a future trend," Alice notes.

"Automated systems are a trend, not only in China but also globally. Urbanization has been moving forward, in the face of soil pollution, pesticides and pests, etc. The planting area is gradually reduced and three-dimensional agriculture must be developed in order to quantify planting. Three-dimensional agriculture can be located near the city, and reduce the transport distance, people can eat the freshest vegetables, to achieve local supply. Therefore it is necessary to promote automated, intelligent planting systems in order to achieve efficient planting and sustainable development." Alice said.

Industry experience
Eponic Agriculture Co. Ltd's head office, Dahua Intelligent Electronics, has a twenty-five-year history division. The team has been focusing on the development and production of intelligent control systems and industrial lighting. Alice said that based on years of technical foundation, we developed full-spectrum LED planting lights which have been approved and applied by the USDA. Over the years, we have received technical support and affirmation from several agricultural doctors from Europe and the United States, focusing on the development and production of automated stereoscopic planting equipment.

According to Alice, the company has laboratories and showrooms in the US, Australia and Africa. This year, the company is planning on opening new showrooms and laboratories in Europe. “We are expanding our global reach and continue to optimize our growing systems to be a better supplier of fully automated growing equipment."

For more information:
Eponic Agriculture Co. Ltd
Alice Ou, Director
aliceou@eponicagriculture.com 
www.eponicagriculture.com 

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Author: Rebekka Boekhout
© VerticalFarmDaily.com

UPDATE - Vertical Farming Leader Kalera Welcomes Maria Sastre to Board of Directors

A seasoned executive with experience in the food, travel, and tourism industries, Sastre brings with her over 25 years of executive leadership and experience and currently sits on the boards of esteemed, Fortune 500, multibillion dollar public and private companies, including General Mills and O’Reilly Auto Parts.

ORLANDO, Fla., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Kalera (Euronext Growth Oslo ticker KAL, Bloomberg: KSLLF), one of the fastest-growing and largest vertical farming companies in the world and a leader in plant science for producing high-quality produce in controlled environments, today announced the appointment of Maria Sastre to its Board of Directors. A seasoned executive with experience in the food, travel, and tourism industries, Sastre brings with her over 25 years of executive leadership and experience and currently sits on the boards of esteemed, Fortune 500, multibillion dollar public and private companies, including General Mills and O’Reilly Auto Parts. The addition of Sastre to the board coincides with Kalera's rapid expansion into several new markets and its acquisition of Vindara Inc., the first company to develop seeds specifically designed for use in vertical indoor farm environments as well as other controlled environment agriculture (CEA) farming methods.

“We are thrilled that someone of Maria’s caliber has chosen to join Kalera’s board,” said Daniel Malechuk, Kalera CEO. “Her resume is beyond impressive, with extensive experience leading highly successful international and growing companies, and is a strong complement to our industry-leading management team and board of directors. She has proven time and again that she is invaluable in helping scale businesses, and will be an incredible asset to Kalera during this time of rapid growth, both domestically and abroad.”

In addition to her aforementioned business experience, Sastre also served on numerous civic and non-profit boards such as the Greater Miami Visitors and Convention Bureau(Chair), the Executive Advisory Board of Florida International University School of Hospitality,and the Executive Board of the United Way of Miami-Dade County. She has been recognized as one of the Top 80 U.S. Hispanics and Top 20 Latinas and has received numerous awards in the travel and hospitality industry sectors. Sastre's education includes a Bachelor's degree and a Master's in Business Administration, both from New York Institute of Technology.

“As someone with a passion for optimizing customer experiences, I am proud to join Kalera’s board as I fully believe their product is a category leader,” said Maria Sastre, new Kalera board member. “Kalera has the opportunity to serve diverse customer segments and increase accessibility to a product that is inherently safer, cleaner, fresher, more sustainable, and more nutritious and flavorful. In a world where brands are looking for ways to differentiate their products and services to their discerning customers, the Kalera portfolio is well positioned to offer the best vertical farming product solution. I trust my years of experience in operations and customer service will prove beneficial as Kalera expands into new markets.”

Sastre previously served as the President and Chief Operating Officer for Signature Aviation, the largest worldwide network of fixed-based operations and maintenance centers for private aviation. Before joining Signature, she spent eight years at Royal Caribbean Cruises LTD, where she held the positions of Vice President, International, Latin America, Caribbean and Asia; and Vice President of Hotel Operations. Her roles included strategic growth across emerging markets as well as managing all aspects of operations and the guest experience onboard Royal Caribbean's fleet of vessels. Previously, Sastre served as Vice President of Worldwide Customer Satisfaction for United Airlines, where she led the newly created customer-satisfaction division charged with refining the customer-service experience.

Kalera currently operates two growing facilities in Orlando, and is building facilities in Atlanta, Houston, Denver, Columbus, Seattle, and Hawaii. Kalera is the only controlled environment agriculture company with coast-to-coast facilities being constructed, offering grocers, restaurants, theme parks, airports and other businesses nationwide reliable access to locally grown clean, safe, nutritious, price-stable, long-lasting greens.Kalera uses a closed-loop irrigation system which enables its plants to grow while consuming 95% less water compared to field farming.

About Kalera

Kalera is a technology driven vertical farming company with unique growing methods combining optimized nutrients and light recipes, precise environmental controls, and clean room standards to produce safe, highly nutritious, pesticide-free, non-GMO vegetables with consistent high quality and longer shelf life year-round. The company’s high-yield, automated, data-driven hydroponic production facilities have been designed for rapid rollout with industry-leading payback times to grow vegetables faster, cleaner, at a lower cost, and with less environmental impact. To learn more visit www.Kalera.com.

Media Contact
Molly Antos
Phone: (847) 848-2090
Email: molly@dadascope.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb487877-0d3b-4e1c-9492-9ea280c217a1

GoodLeaf Farms Launches Aggressive Expansion Plans

NEWS PROVIDED BY

GoodLeaf Farms

McCain invests in a national network of vertical farms to bring tasty, local food to Canadians

GUELPH, ON, - With the closure of a successful new funding round, GoodLeaf Farms is embarking on an aggressive growth and expansion plan to build a national network of vertical farms that will bring fresh, delicious, nutritious and locally grown leafy greens to Canadians across the country.

Backed by a sizeable investment from McCain Foods Limited — which has increased its total investment in GoodLeaf to more than $65 million ­— GoodLeaf will bring its innovative and proprietary controlled-environment agriculture technology to more Canadian markets over the coming year, providing more Canadian consumers with year-round local food that is typically imported from the Southern United States or Mexico.

"From our start in Truro to our first commercial farm in Guelph, GoodLeaf has built a strong foundation for future growth," says Barry Murchie, Chief Executive Officer of GoodLeaf. "We want to be a global leader in vertical farming. Our first step to accomplishing that is ensuring we have a strong footprint in Canada, giving Canadians access to top quality, nutrient-dense, sustainably grown and pesticide-free leafy greens 365 days a year."

GoodLeaf opened its first commercial vertical farm in Guelph, Ont., in the fall of 2019. By the end of 2021, GoodLeaf is planning two more indoor vertical farms — one to serve the grocery and foodservice networks in Eastern Canada, and one for Western Canada.

The exact locations will be announced shortly.

"It is our intention to build farms that support the Canadian grocery store network, foodservice industry and consumers," says Mr Murchie. "We want to change what people are eating by providing a fresh, healthy and local alternative that, until now, hasn't been available in Canada. We are driving a new way to grow food, with disruptive technology that brings consumers leafy greens from their own backyard. This is a fundamental game-changer."

GoodLeaf's vertical farm grows to produce on hydroponic trays stacked in multiple horizontal levels. A proprietary system of specialized LED lights is engineered to emulate the spring sun, giving plants the light they crave to maximize photosynthesis. The indoor controlled environment is almost clinical, meaning there are no pesticides, herbicides or fungicides used. It is also immune to weather extremes, such as summer droughts or late spring frosts that can be lethal to crops.

Furthermore, having a local source of year-round food is vital to Canada's food security and sovereignty, concerns that were in the spotlight at the height of the COVID-19 pandemic as shoppers were faced with rapidly dwindling supplies on grocery store shelves.

At its 45,000-square-foot Guelph farm, every day GoodLeaf is harvesting microgreens (Spicy Mustard Medley, Asian Blend, Micro Arugula, Micro Radish and Pea Shoots) and baby greens (Ontario Baby Kale, Ontario Baby Arugula and Ontario Spring Mix) for Ontario grocery stores, ensuring a local supply of fresh, nutrient-dense leafy greens all year long.

GoodLeaf produce is exceptional in a salad, as a topping for burgers and sandwiches, as a kick of nutrients in a smoothie or as an ingredient to elevate your favourite dish.

Follow GoodLeaf Farms on Instagram @goodleaffarms and Like it on Facebook at /GoodLeafFarms.

About GoodLeaf Farms:

With a passion for delicious, nutrient-rich greens, GoodLeaf was founded in Truro, NS, in 2011. Using innovative technology and leveraging multi-level vertical farming, GoodLeaf has created a controlled and efficient indoor farm that can grow fresh produce anywhere in the world, 365 days of the year. The system combines innovations in LED lighting with leading-edge hydroponic techniques to produce sustainable, safe, pesticide-free, nutrient-dense leafy greens. GoodLeaf has ongoing R&D Programs in collaboration with the University of Guelph, Dalhousie University and Acadia University.

Learn more at goodleaffarms.com.

About McCain Foods (Canada)

McCain Foods (Canada) is the Canadian division of McCain Foods Limited, an international leader in the frozen food industry. McCain Foods is the world's largest manufacturer of frozen potato specialities, and also produces other quality products such as appetizers, vegetables and desserts that can be found in restaurants and retail stores in more than 160 countries around the world. In Canada, the company has eight production facilities with approximately 2,400 employees and, in addition to its famous French fries and potato specialities, makes frozen desserts, snacks and appetizers.

SOURCE GoodLeaf Farms

For further information: Michelle Hann, Senior Consultant, Digital and Communications, Enterprise Canada, mhann@enterprisecanada.com, 613-716-2118

Dr. Peter Quinn Appointed As New Chair of CHAP

Crop Health and Protection (CHAP) one of the four UK Agri-Tech Centres of Innovation, has appointed Dr. Peter Quinn, CEO of Genius Foods, to be its new Non-Executive Chairman, following the retirement, earlier this year, of John Chinn.

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Peter brings extensive business leadership experience to the CHAP Board, having held Chief Executive, Managing Director, and Non-Executive Director roles. He has a background in creating enterprise value across a range of complex FMCG brand and private label markets in food and drink, manufacturing and retail, biotech, and agri-tech.

He is currently CEO of Genius Foods and was previously divisional MD of Samworth Brothers. In addition, he holds several NED positions in the Agri-Tech/Produce sector. He is an expert in transformational turnarounds and the creation of growth and value strategies through organizational alignment and ingenuity. 

He is also passionate about building business cultures committed to people and has served on the Boards of BITC Charities, dedicated to creating opportunities for disadvantaged young people through education and personal development.

Peter holds an MBA and BSc(Hons) & Ph.D. in Epigenetics & Microbiology and has published on the importance of nutrition to improve health and wellness in society.

As Chairman of CHAP, he is committed to the vital function of science, technology and collaborative innovation to transform UK agriculture and sustainable food production.

CHAP CEO Fraser Black said: “CHAP is experiencing an exciting period of growth and development and Peter is well-placed to help us cement our position at the centre of the UK agritech innovation sector. His commercial, non-profit, and academic experience are a perfect fit for CHAP. I look forward to working with him to ensure CHAP continues to act as a catalyst for innovation in UK agribusiness. This will enable us to achieve our vision of making the UK a global leader in the development of applied agri-technologies, to help secure our future by nourishing a growing population sustainably while delivering economic, environmental and health benefits to society.”

Peter Quinn said: “I am delighted to be appointed to the Board of CHAP as Non-Executive Chairman. There has never been a more critical time to invest in the future of UK agriculture and sustainable food production. CHAP plays a pivotal role in creating world-class innovations through collaborations between scientists, farmers, and industry to transform the productivity of UK agriculture. CHAP is the nexus for new ideas and ingenuity that will deliver agricultural solutions for tomorrow’s world.”

About Crop Health and Protection (CHAP)

Crop Health and Protection (CHAP), funded by Innovate UK, is one of four UK Agri-Tech Centres. CHAP’s vision is for the UK to be a global leader in the development of applied Agri-Technologies, to help secure our future by nourishing a growing population sustainably while delivering economic, environmental and health benefits to society. CHAP acts as a unique, independent nexus between the UK government, researchers, and industry, building innovation networks to identify and accelerate the development of cutting-edge solutions to drive incremental, transformative, and disruptive changes in sustainable crop productivity.

Website: www.chap-solutions.co.uk Twitter: @CHAP_Enquiries

For further information contact:
Darren Hassall (Marketing Manager): darren.hassall@chap-solutions.co.uk
Tel: +44 (0)7866 799152

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UK Urban AgriTech Collective

The UK Urban AgriTech collective, or UKUAT, brings together the UK’s key players in modern agricultural technologies. We’re a cross-industry group devoted to promoting urban agtech as a solution for food and environmental crises. We influence policy by sharing information, educating, and communicating practitioner needs as one. We promote the uptake of agtech in urban and peri-urban settings by uniting to attract funding and customers.

UKUAT - A Brief History

It started out with a group of perhaps 5 people. Mark Horler, our founder, brought these people together to just have a chat about the industry in the UK. The short version, though it may seem hard to believe now, is that there really wasn’t that much of an industry in this country then. There were only a handful of companies developing tech and systems as well as a couple of universities with an interest in the general area.

However, slowly but surely, that number began to grow, and so did the number of people in that little group. At some point in late 2017, it was agreed that we ought to give it a name, and so UK Urban AgriTech (UKUAT) was born.

Over the next couple of years, an interesting thing happened. The UK had been slow to get going with controlled environment agriculture (CEA), but then it started to happen. More companies appeared, and more universities took an interest, as did various consultancies and other interested parties. Some of these joined UKUAT, which, at the time, was an informal collective. As happens with these things, they spoke to others, who spoke to others and, before we knew it, we had a fairly substantial number of members.

As all this was happening, we made a collective effort to start hammering out what we wanted this collective to be and do. Lengthy discussions were had, ideas were proposed and batted around, via our monthly online calls. In early 2019, most of the group met in person in Coventry. The main results of that meeting were a document detailing our aims, and another setting out our mission & vision.

These went back through the discussion & revision process. When we met again in London in late 2019, we all agreed it was time to turn UKUAT into a formal organisation. We’ve now done that, and it’s now time to get on with the work we want to do - education, outreach, policy, advocacy and more! We’ll be at events and partnering on all sorts of interesting projects in the coming months (and years).

UAE Agri-Tech Growing With New Multi-Million Dollar Fundings For Smart Farms

HALAL INDUSTRY BY PETRA LOHO

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08 MAY 2020

INSIGHT

SALAAM GATEWAY

When Stanford Graduate School of Business alumnus and private equity expert Sky Kurtz started in Silicon Valley, he had no idea his investor and entrepreneur journey would lead him to farm tomatoes in the middle of the Arabian desert.

While a New Zealand composite materials business brought Kurtz to Dubai, what made him stay was to help the United Arab Emirate build food security.

“There’s a need to move to more resource-efficient agriculture everywhere, not only in the UAE,” Kurtz told Salaam Gateway. “The Middle East is just an extreme case with less arable land and little water.”

Food security largely covers three dimensions — the availability, affordability, and accessibility of food. The UAE’s biggest challenge is availability, given its agricultural limitations.

Conscious of the importance, the UAE established a State Ministry for Food Security in 2017, leading to the UAE National Food Security Strategy 2051 formulation.

The strategy aspires to champion agribusiness trade facilitation, enable technology-based production and food supply, promote international trade partnerships, enhance nutritional intake, and reduce waste, according to the ministry’s website.

Supporting the strategy financially, in March 2019, the Abu Dhabi government announced a 1 billion dirhams ($272 million) incentive package to support the development of the domestic agri-tech industry.   

Offering rebates up to 75% of R&D costs, along with other monetary and governing privileges, the scheme targets three agricultural segments to increase production: precision farming and agrarian robotics, bioenergy, and indoor farming.

SMART FARMS

Having co-founded his tech-enabled agribusiness focusing on year-round generation of fruits and vegetables already in 2016, Kurtz’s Pure Harvest Smart Farms hasn’t enjoyed grants from this government package yet, albeit being a perfect match.

However, in April, the firm raised $20.6 million in additional funding and secured a further $100 million commitment from Kuwait’s national investment company Wafra to finance the company’s local and regional expansion.  

“We want to grow very quickly. That’s why we raised such a large sum of capital,” Kurtz said. “Access to funds is a competitive advantage in this capital intensive business as we’re building food infrastructure.”

Initially, Pure Harvest received a $5.6 million seed funding from Shorooq Investment Partners and aligned with the UAE government by securing a 5.5 million dirhams ($1.5 million) investment through the Mohammed bin Rashid Innovation Fund in October 2018. 

Kurtz’s fundraising success reflects on a worldwide trend: the global funding to agriculture technology start-ups grew by 43% year-on-year, to almost $17 billion in 2018, according to AGFunder, an online venture capital platform. The U.S., China, and India accounted for almost 80% of all agri-tech funding.

GREENHOUSE PROOF OF CONCEPT

Pure Harvest operates a high-tech, semi-closed, and climate-controlled greenhouse.

“We see ourselves as an energy company,” said Kurtz. “We harvest solar power and turn it into healthy calorie sources as cheaply as possible.”

Growing the product hydroponically, Kurtz views Pure Harvest exceedingly similar to a vertical farm.

“The big difference is we use natural light. We have more than most plants can utilize,” Kurtz said, alluding to the Middle East’s equator proximity.  

However, the entrepreneur feels his business model is to a greater extent financially viable than vertical farming.

“Our costs for certain products are under one dollar per kilogram,” the Pure Harvest CEO added. “Vertical farms produce typically between $3.50 and $5.50 per kilogram.”

Kurtz claims to have one of the world’s lowest manufacturing costs, of any food production system, including the most ambitious Dutch producers. 

“We are producing at a competitive cost structure now at our pilot farm. At scale, we believe we can do even better,” Kurtz said.

Pure Harvest’s pilot facility harvests about 600 tons bumblebee-pollinated and pesticide-free-grown tomatoes annually.

The company grows a variety of 17, soon to be 20, different kinds of tomatoes — from small, snack-able ones to exotic and aromatic Japanese pink ones.

“Tomatoes are a truly dynamic and technically challenging crop to grow,” Kurtz explained. “Growing greens is a lot easier, and the tomato market is super competitive with both local, regional and international competition – making it a great test case.”

“It was a matter of proving our concept from a technical but also commercial standpoint,” Kurtz explained, referring to the firm’s institutional investors seeking an ROI-making mass-market product as the company matures.

NO WASTE OF WATER

“We don’t waste anything. We capture it and use it somehow. Whether that’s heat energy, cooling capacity, or water,” Kurtz said.

When the greenhouse is closed, Pure Harvest controls and captures evaporation, the treated condensation is reinjected into the irrigation system to water the plants.

According to Kurtz, Pure Harvest uses a little over 30 litres of water per kilogram of production, compared to the around 250 litres of traditional farms.

This is a saving that is crucial for a water-scarce country like the UAE, listed the third most insecure country in the Middle East, after Yemen and Kuwait on the Pardee RAND Food-Energy-Water security (FEW) index.

The country’s renewable water resources are less than 100m3/capita/year — or one-tenth of the 1,000 m3/capita/year water poverty line — according to an article by Hameed et al. published by MDPI, a peer-reviewed journals issuer.

STRAWBERRY FIELDS AHEAD

Forming a partnership with Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, the founder and CEO at the Alliances for Global Sustainability, Pure Harvest secured over 30 hectares to design more greenhouses.

“We’ll build out Sheika Shamma’s land in multiple stages to a production capacity equaling around 24 hectares,” Kurtz said, noting the current farm is just under one hectare.  

The geographical expansion plans will see Pure Harvest also build in Saudi Arabia and Kuwait. Extending the product line, Pure Harvest will start growing greens and strawberries in the UAE soon.

MORE INVESTMENT

Early April, the Abu Dhabi Investment Office (ADIO) announced it would provide 367 million dirhams ($100 million) to four firms – two local, two American – to establish new R&D and farming facilities.

“The UAE has been keeping the investments in the agricultural R&D in focus for a transformative food system,” Dr. Dino Francescutti, the United Nations Food and Agriculture Organization’s (FAO) UAE representative, told Salaam Gateway.

“By determinedly facilitating R&D among its stakeholders, the UAE will be able to develop and benefit from new technologies, increase productivity and efficiency of its limited agricultural resources, thus contributing to the country’s food security and resilience.”

One of the four recipients of ADIO’s $100 million is Madar Farms, a vertical farming pioneer operating a R&D farm growing seven different microgreens in Masdar City.

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Founded in 2017 by Kuwaiti Abdulaziz AlMulla, Madar will build the world’s largest commercial-scale indoor tomato farm located in the Khalifa Industrial Zone Abu Dhabi that lies between Abu Dhabi and Dubai.

Farming vertically is certainly going up. From $2.5 billion in 2017, the vertical farming market size will likely surpass $20 billion by 2026, according to a research report by Global Market Insights.

Vertical hydroponic farms require artificial lighting, heating, and cooling systems, ventilation, shade and nutrient dosing, the Produce Marketing Association writes in the 2019 Fresh Produce Industry: United Arab Emirates report.

This explains why many UAE farms are hesitant to adopt the new technology regardless of the government support offered, fearing the increased set-up and electricity costs, according to the trade organisation.

There are more challenges to deal with, though.

“The agri-tech products developed in Asia, Europe, or North America were created to be successful in their environments and cannot simply be copied and pasted here in the UAE,” Madar Farms brand manager Haifa Alrasheed told Salaam Gateway.

“Effective localisation is the key to success as dust, humidity, and heat can take their toll.”

The tomato farm, designed by the Dutch producer Certhon will be installed with more than 5,000 LED fixtures and is expected to be fully operational by the end of 2020. Certhon also equipped Pure Harvest’s pilot farm.

“This 5,000 square meter (0.5 hectares) facility will enable us to grow approximately more than a ton of fresh tomatoes every day,” Alrasheed said. “The domestic production only covers about 8% of the total consumption.”

“We’ll also triple the microgreens supply, sold through four online portals,” Alrasheed explained.  Demand dependent, the current daily capacity is up to 10 kilograms.

UAE CONSUMPTION   

By one calculation, the UAE’s food consumption is to grow at an annualized rate of 3.5% from 8.7 million tons in 2018 to an estimated 10.3 million tons in 2023, according to Alpen Capital’s September 2019 “GCC Food Industry” report.

In 2016, the UAE consumed 1.5 million tons of vegetables, with tomatoes being a favorite.

Domestic tomato production grew to over almost 79,000 tons in 2018, nearly 80% up from 2016, according to FAO statistics.

Despite the increase, the UAE is still not self-sufficient and must import to meet the demand.

With a 27.4%, 13.5%, and 12% share in dollar value, Jordan, India, and the Netherlands were the top three source markets for the UAE in 2018, according to the U.N. Trade Map, International Trade Centre. Iran and Malaysia followed with a 10.5% and 7.7% share, respectively.

COVID-19 CHALLENGING FOOD SECURITY

Now, the COVID-19 pandemic amplifies just how fragile food security is beyond the lack of arable land and water scarcity. 

“The diffusion of the pandemic poses major food security and supply chain threats worldwide,” the United Nations’ FAO UAE representative Dr. Francescutti said.

Labour shortages to produce, harvest and process food; an increasing farmer’s struggle to access the markets; the decreased perishable commodities supply, and transport restrictions blocking deliveries cause the risk, the FAO expert explained.

Sky Kurtz’s solution to mitigate such food supply chain risks is simple. “Support the homegrown champions,” he said, appealing to both the UAE leadership and to consumers.

(Reporting by Petra Loho; Editing by Emmy Abdul Alim emmy.abdulalim@salaamgateway.com)

Lead photo: Photo: Vertical farming at Madar Farms in the UAE. Photo supplied by Madar Farms.

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