A New FEZ "Karakalpak-Agro" Established In Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) - The Cabinet of Ministers adopted a resolution”On measures to organize the activities of the free economic zone “Karakalpak-Agro”.

In accordance with the decree of the President “On measures for the comprehensive socio-economic development of the Republic of Karakalpakstan in 2020–2023” on an area of 875.4 hectares in Amu Darya, Buzatausky, Kegeili, Konlikul, Kushgirot, Muynak, Nukus , Takhiatash, Turtkul, Khodjeyli, Shumanai and Ellikala districts, the SEZ "Karakalpak-agro" was created.

The functions of managing the activities of the FEZ "Karakalpak-Agro" are assigned to the State Unitary Enterprise "Directorate of the free economic zone" Nukus ".

The main tasks and directions of the SEZ "Karakalpak-Agro":

- attracting direct foreign and domestic investments for organizing modern greenhouses on a cluster basis, including hydroponic ones, as well as organizing the production of structures, equipment and other components for the construction of modern energy-efficient greenhouses;

- increasing the production of agricultural products, expanding its deep processing and increasing exports, effectively using the production potential of the region;

- encouraging the organization of the complete process of agricultural production from seeds to delivery to the market;

- introduction of effective mechanisms for providing greenhouses with seeds and seedlings of high-yielding crops demanded by the market, by creating conditions for organizing nurseries, as well as seed production;

- formation of a modern infrastructure for the provision of logistics services, assistance to agricultural producers in organizing the export of their products;

- widespread introduction of modern resource-saving technologies, the use of alternative sources of thermal energy in the organization of greenhouses;

- creation of research and production centers to assess the compliance of products with international standards.

The Council of Ministers of Karakalpakstan, together with the Ministry of Investments and Foreign Trade, the Chamber of Commerce and Industry and commercial banks, was instructed to develop a targeted program of facilities for the production of structures for greenhouses on the territory of Karakalpak-Agro within two months, with the allocation of vacant non-agricultural land.

How Vertical Farms Are Revolutionizing Agribusiness

William Ramstein ・ 1 March 2021 ・ Vertical Farming

Urban planners are tasked with answering some pressing inquiries: how can farming be brought closer to consumers; is digital agriculture an essential ingredient for making cities smarter; and can vertical farming improve socio-economic disparities?

Key Takeaways:

• Vertical farming uses LED, Robotics and AI to bring vegetables closer to city dwellers.

• The total addressable market for vertical farming is estimated at around $700 billion.

• Spread, a Japanese vertical farm is profitable but most firms fail.

• Vertical farming is a great way to produce controlled supplies of a customized plant.

• Vertical farming struggles with electricity costs despite reducing carbon emissions.

What is vertical farming and why does it matter?
The bedrock characteristic of cryptocurrency technology is called decentralization, a sovereign and flexible organizational system led by a commune, and today other industries like farming are catching the bug. Farming needs to change its practices in order to meet ecological objectives set up by governments and decentralization could open the door to increasing food access and reducing carbon emissions from food transportation. Smart decentralized vertical farming implies using technology like digital platforms, robotics and artificial intelligence to bring food closer to the growing demand seen in cities.

Despite the difficulty of competing against the cost structure of traditional farming, vertical farming offers numerous advantages. It grants more yield per square meter and reduces waste in both carbon and water usage. The production of vegetables is made in large and often times un-used warehouses close to city centers thus cutting transportation costs and middlemen expenses. The supply is more easily controlled, protected, and priced regardless of global weather and plants are customized to local consumer preferences. Consumers are already paying a premium on farmer’s market products, so why not vertical farm products too?

Cases of vertical farming: Nigeria is one of the most promising African nations because of its age pyramid. But with a large young population comes questions around food and water access and today, more than 170 million Nigerians need prolonged and sustainable access to these resources. Nigeria currently imports $3.5 billion worth of food products while exporting only 1/7 of that figure. Fresh Direct is Nigeria’s first Hydroponics Company (growing crops without standard soil) that combines vertical farming to its business model to reduce the distance between cities and rural farming regions.

The firm is able to produce seven to 10 times the yields because of its stackable shipping containers, which use technologies such as drip irrigation, and cold storage. Direct Farming operates with a community mindset, with the goal to inspire more young farmers to set up shop in urban centers and become urban farmers. The company also trains and finances low-skilled workers into urban farmers and increases economic productivity in unemployed youth groups.

In Japan, a company called Spread is one of the world’s most sophisticated examples of vertical farming. Their factory mainly produces lettuce. Large robotic arms transplant lettuce seedlings into pots where they are left to grow under LED lights. Believe it or not, but the factory can produce 30,000 lettuce heads a day. CEO Shinji Inada boasts of being the only large-scale vertical farm that is profitable and hopes that more widespread adoption continues growing.

However, companies like Spread and A-Plus (another similar farm in Fukushima) struggle to lower unit economics because of their low-scale operations, and they find it hard to penetrate the traditional downstream sellers. When producing high-priced lettuce by the tonne, trucking goods to the local wholesaler does not work partly because vertical farming offers customized products for specific local needs, not necessarily for broad demand. These players have thus geared their focus towards international buyers like UAE to export their goods.

Is vertical farming there yet?
Most vertical farms have failed because of the high initial costs and high operational expenses of running robotic equipment. While sunlight is free, the energy cost of running LEDs is not. The solution could be to install renewable energies like solar panels and wind turbines. However, the fixed cost of that installation would inevitably factor into the end-product, or at least on the balance sheet as a liability assuming they keep prices reasonable for consumers.

While Mr. Inada can rightly boast of turning profits, most firms toss lettuce at a loss. The industry should see more growth ahead, however, with research group IDTechEx forecasting that annual sales of $700 million could more than double to $1.5 billion in 2030. There remain technological challenges though. While many competitors boast of successfully leveraging AI and robotics and filtration, new entrants have seen problems with watering automation systems, mold, and infestations (most players do not use pesticides).

Some analysts suggest that while the excitement around vertical farms makes sense, the farming style might just end up becoming just another way of farming amongst greenhouse and open sky farms. More specifically, vertical farming will focus on high-margin crops rather than commodities like bulk grains.

While the challenges of vertical farming are clear, every country has different needs and constraints. There is a large interest from smaller island countries like Singapore or Iceland, rich economies, and countries that have a higher propensity to import due to less arable lands. Britain is a good example of a country that meets the criteria and in the context of Brexit, it makes all the more sense because of import costs and independence constraints. A potential labor crisis could soon loom too assuming seasonal workers are denied entry into the country. Vertical farms only require one-third of the manpower to run and could therefore alleviate the industry.

 The market opportunity…According to research by Barclays Investment Bank, the market opportunity for vertical farms is large. Analysts estimate the size of the global fruit and vegetable market to be $1.2 trillion and the total addressable market for vertical farms to be $700 billion. The purchased energy use to produce 1kg of lettuce is 247-kilowatt hours far exceeding Netherland greenhouses’ 70-kilowatt hours consumption. With retailers being asked to meet more carbon-neutral objectives, some vertical farms believe they will be able to overcome their expense through increased demand and scale.

The pandemic has imposed many supply chains disruptions and labor shortages threatening food security in regions around the world relying heavily on imports. Vertical farming is recognized lately and since 2014, has seen a flow of funds equal to $1.8 billion according to data group Dealroom. SoftBank fundraised $140 million into Plenty, a start-up, and countries like Abu Dhabi want to build farms in deserts.

Some of the top players in the global farming market include Vertical Farm Systems (Australia), American Hydroponics (US), Agrilution (Germany), Green Sense Farms (US), Everlight Electronics (Taiwan), Koninklijke Philips (Netherlands), Sky Greens (Singapore), Illumitex (US), Urban Crop (Belgium), Aerofarms (US) and InFarm (Germany).

Saudi Farmer Has Built The Region’s First Vertical Farm

The Saudi farmer Omar Al-Jundi even he is not related to farming by degree. But that is exactly where the industrial engineer found his calling, when he built the region’s first vertical farm in the heart of Dubai. Born in Egypt to Saudi parents, Al-Jundi spent his early years in Alkhobar due to his father’s engineering firm.

View fullsize

The family moved to Jeddah when he was 12 years old. His last two years of schooling were spent at Bahrain School in Manama. “I wanted to graduate with an American high school diploma,” Al-Jundi said. “At the time, as a Saudi, you couldn’t attend private foreign schools.” Upon graduation, he left the region to study industrial engineering, followed by an MBA at the University of Miami in Florida. Although his father is an engineer and his mother an architect, Al Jundi delved into the world of banking for two and a half years when he moved back to Jeddah upon graduating.

“I then shifted to the hospitality industry, opened the first lounge in Jeddah along with other restaurants with my friends, and ended up selling my share and joining my father’s company,” he said. “You learn that you’re better off doing something on your own than having partners because you end up changing directions.”
After 10 years of “paying his dues” in the family business, he felt compelled to change directions. “As an Arab, you’re always closely tied to the family,” he said. “We’re blessed my father started a business and there’s a place for us in that business, but luckily, my younger brother was a lot more interested in it — I always felt my calling was somewhere else.”

In search of his true passion, he started his journey as an entrepreneur. The field he specialized in had yet to be determined. “I felt that there was a meaning for something else,” Al-Jundi said. “I was free and my family was very supportive.”
Countless research and books later, he became intrigued by the tech space, admitting he believed he would start the next Amazon. “That didn’t follow through,” he said. “Then I thought it would be in mining, but I always looked for something that was away from my comfort zone such as engineering, contracting, real estate and consulting. Just something different. It was a process.”

The young Saudi had reached a point in his life where he felt the need to do something impactful, something which added true value to the region. Eventually, two of his friends introduced him to the concept of modern farming. “I visited some orange farms in Egypt and I was in exploration research mode,” he said. “I enjoyed seeing nature — you’re a lot more relaxed. Here, when you go in and see the plants growing every day, there’s definitely a connection, because you’re seeing the end product, you’re feeling it, and I connect to them.”

The more research he immersed himself in, the more driven his interest became. At the time, the Saudi Government was focused on addressing food security and self-sufficiency. “It’s always been a big topic,” he said. “When you fly out of Riyadh, you find these big circular green spots as they’re trying to green and farm the desert, which was successful, but on the other hand, it depleted our water resources.” According to the Food and Agriculture Organization, agriculture represents around 70 per cent of water consumption in most of the GCC countries. But Al-Jundi did not give up on the thought.

After moving to Dubai in 2014, he learned about King Abdullah’s Initiative for Saudi Agricultural Investment Abroad. Half the capital needed for agricultural projects was offered to Saudis who invested in a list of 31 countries abroad to purchase land, set up a project and export the food back to the Kingdom. It gave him an idea to start his own vertical farm. “I knew it was a big topic,” he said. “I’d never heard we could grow food with no soil. I thought it was intriguing and fascinating. It was enough for me to know there was something there to explore it further.”

With more than 90 per cent of the region’s land unsuitable for agriculture, Al-Jundi set out to find a solution. He spent the following 12 weeks taking courses in aquaponics, aquaculture, hydroponics and horticulture in California and the Netherlands. He even spent time working in a cucumber greenhouse at the Delphy facility in Holland, where he acquired valuable experience in the field. “It was really professional and a great learning experience,” he said. “That’s when I knew what I wanted to do. And I knew I had to completely immerse myself in it.”
The team of Badia Farms, which he founded in Al Quoz in December last year, consists of 12 people, all of whom have experience in farming. “It took 18 months to get it up and running because we didn’t work with any technical partner,” Al-Jundi said. “I knew I was in it for the long haul, so I worked with different growers and learned.”

The 850-square-meter facility includes a “fertigation” room, which fertilizes and irrigates the 18 varieties of crops he currently grows. Gourmet seeds, some of them hybrids, such as lemon basil, cinnamon kale, wasabi, green radish, mustard, micro kale, edible flowers and cinnamon basil, are flown in from the United Kingdom and the United States every three months — from 50 to 300 kilograms at a time. The farm plans on introducing as many as 26 varieties, including sunflowers.

The seeds are placed on a type of mat made of recycled carpet that is food-certified. LED lights flood the room in a pink atmosphere, with each UV light containing a certain spectrum that is beneficial for the plants.
In the tank room, feed and water is scheduled through a computer-based on the crop, with a unique nutrient recipe for each type, including potassium, calcium, magnesium, and ammonium. UV and concentrated oxygen are also able to kill any potential bacteria or pathogens in recycled water. Once the seeds sprout, they are moved to the five stacks in the vertical farm. Four dehumidifiers regulate the humidity in the air, providing each on average with 70 litres of water a day. The eco-system created by Badia Farms uses 90 percent less water than open-field farming and recycles its water up to nine times.

“We’re using hydroponics,” Al- Jundi said. “The biggest advantage is that we do not spray pesticides, which are messing up our health. In fact, we extensively use stickers to attract insects away from the crops.” Different levels of lighting are provided for each stage of the plants before they are sent out as they were grown. “They’re intense in flavor and it’s the freshest you can get that way,” he said. “My personal favourite is chocolate mint.” With 60 clients so far, serving hotels, restaurants, and cafes, the model is a first for the region, which made it challenging to set up. “All the ones abroad are designed for different climatic conditions so none of them are applicable here, where there is extreme humidity and high temperatures,” he said. “And to convince a chef to give you his time, when you don’t have the track record, was a big challenge. I wasn’t a known farmer yet.”

The system’s structure was manufactured in Riyadh, with a plan to set up the next facility by 2020 in Jeddah. Until then, the plan is to cater to Saudi as well as the UAE. “Dubai is a good testing ground and Saudi’s vision now is to support our type of sustainable growing and ecological farms, so it’s perfectly in line with what we want to do,” Al-Jundi said. “The government is now delegated to move into sustainable growing and find viable solutions to address self-sufficiency, so it’s not a slogan anymore: it’s the real deal.”

He hopes to develop similar projects across the Kingdom in the future. “My aim is to make sure we truly become self-sufficient,” he said. “Vertical farming is one solution but it’s not the full one — the ideal solution lies in all models of modern farming. What’s close to my heart is giving people healthy food while preserving our resources, and I believe the new generations of Saudis are ambitious and want to evolve our country. We were just waiting for the opportunity and it has finally come.”

Source: Arab News

IGS Signs Significant Export Deal With Jungle To Supply French Retail Market

Scottish Technology to Create One of

Europe’s Largest Vertical Farms 

Edinburgh, Scotland – 17 September 2020 - Indoor agritech specialist IGS has today announced a significant export deal with experienced French urban agriculturalists, Jungle. The multi-million-pound deal will introduce IGS indoor growing platforms to Jungle’s operations, initially outside Paris, to grow a variety of crops to supply major French retailers.

The first growth towers will be in production by early 2021, scaling incrementally to a minimum of 17 towers by the end of 2021. Jungle will grow a range of herbs and salads to supply select retailers across France. The company will utilize the patented IGS plug-and-play vertical farming platform to widen its portfolio and produce new varieties through an ongoing program of crop trials.

Jungle’s indoor growing operations will also develop a variety of botanicals to provide natural ingredients to a world-leading flavor and fragrance business.

Jungle’s ethos is focused on sustainable food production, with superior quality of crops grown through a more efficient model, re-localizing the supply chain, considerably reducing waste and using no chemicals. With extensive experience in the indoor growing space, the company has achieved recognition in the highly competitive retail market in France for the quality of its produce.

To increase the scale of production sustainably, while maintaining its commitment to high-quality, delicious, and pesticide-free produce, the company conducted an extensive search to identify the best technology partner.

After a thorough and competitive review of the market, IGS was selected as the most economically viable and environmentally friendly system capable of meeting Jungle’s requirements to reach the industrial scale required by its customers. IGS offers its customers a highly controllable platform, designed to maximize productivity whilst minimizing energy and water consumption.

When completed, the nine-meter-high growth towers will be housed alongside a 1,500 m2 service area on Jungle’s site outside Paris. This will provide approximately 5,200 m2 of growing space, producing up to 425 tonnes per annum when fully operational, making it one of the largest vertical farms in Europe.

View fullsize

IGS CEO, David Farquhar, commented: “In recent months, global markets have been challenged considerably and export agreements have become more difficult to fulfill. The announcement of this deal is an exciting one not just for IGS, but also for the UK’s Agri-tech sector as we showcase our international capability to support economic recovery post-coronavirus. The Jungle team has a strong reputation for excellence and sustainability both of its produce and approach.

“Jungle needs a reliable, productized system that can meet its ambitious growth plans in France and beyond and IGS has proven to be exactly that, following a rigorous selection process. This deal is proof that our unwavering commitment to innovative, practical design, based on a deep understanding of delivering optimum growing conditions, is what customers want. The deployment of the system for Jungle begins immediately and I am encouraged by how well our teams are collaborating as we move forward together.”

View fullsize

Gilles Dreyfus, CEO of Jungle commented: “This partnership agreement is a significant step forward for Jungle and our ability to deliver at scale for our customers. We have established Jungle as a grower of superior produce with major French retailers and have plans to build on this reputation as we look at operations in other regions. We are proud to be innovators in our sector and it is important that we find people and organizations that share this same vision.

“We undertook a very serious assessment of the market and IGS was a clear leader in our eyes. What we can offer our customers through the partnership with IGS puts us at a different level in terms of scale, flexibility, and potential to expand and develop our produce portfolio. The IGS approach, both with the technology and the team, is such that we feel completely aligned and able to work collaboratively now and into the future.”

IGS has received recognition from the Scottish Government for the exciting export opportunities it is bringing to the Scottish market. Trade Minister Ivan McKee MSP said: “This significant contract underlines IGS’ standing as a global leader in agricultural innovation which will help everyone farm more sustainably. IGS’ growth has been driven by a focus on quality, innovation and scientific expertise and shows what Scottish companies can achieve with the right support in place.

“International exports have a central role to play in our economic recovery from COVID-19. The Scottish Government has set an ambitious target of increasing the value of exports from 20 percent to 25 percent of GDP by the end of the decade and I look forward to IGS helping us achieve that goal.”

In addition, Scottish Enterprise which has worked closely with IGS since 2018, welcomes this strategic export announcement. Neil Francis, International Trade Director at Scottish Enterprise, said: “We congratulate IGS on securing this export deal, which will ensure the company’s innovative technology is delivered to a global marketplace.

“Scottish Enterprise has worked closely with IGS over the past couple of years, both through our investment arm, the Scottish Investment Bank, and Scottish Development International.  We look forward to continuing support IGS as it demonstrates its capabilities in the agritech sector.     

“International trade will be key to Scotland’s economic recovery and help deliver the future, sustainable growth we all want to see.  Working with our partners, Scottish Enterprise will continue to do all we can to support companies access overseas markets.

Ends

 Notes to editors:

For more information: please contact Kate Forster, IGS on kate@intelligentgrowthsolutions.com or call +44 7787 534 999 or Gilles Dreyfus, Jungle on gdreyfus@jungle.bio.

About IGS:

Founded in 2013, IGS brought together decades of farming and engineering experience to create an agritech business with a vision to revolutionize the indoor growing market. Its commitment to innovation has continued apace and it has evolved the applications of its technology beyond agriculture to create solutions for a wide variety of indoor environments which enhance life for plants and people alike.

IGS launched its first vertical farming demonstration facility in August 2018.

For more information visit www.intelligentgrowthsolutions.com or connect with us on Twitter and LinkedIn.

About Jungle:

View fullsize

Jungle originated in Portugal in 2016 and maintains a Research and Development facility in Lisbon. It identified strong demand from the retail market in France and opened operations there in 2019. Further European operations are under consideration as the demand for healthy, sustainable and locally-sourced produce increases.