Welcome to iGrow News, Your Source for the World of Indoor Vertical Farming
"Resilience Is Going To Become A Key Element of Food Security"
A little over two years ago they formed AgroUrbana, a startup dedicated to vertical agriculture, which consists of producing food in vertically stacked layers, in their case using LED lights and hydroponic cultivation, to provide the light and water necessary to harvest vegetables with nutrition. very accurate in spaces with controlled climates.
July 5, 2021
When it comes to rethinking agriculture to create better products with much less impact 365 days a year on a large scale, Cristián Sjögren and Pablo Bunster, two professionals from the renewable energy sector, left their jobs behind to bring sustainable farming to cities.
A little over two years ago they formed AgroUrbana, a startup dedicated to vertical agriculture, which consists of producing food in vertically stacked layers, in their case using LED lights and hydroponic cultivation, to provide the light and water necessary to harvest vegetables with nutrition. very accurate in spaces with controlled climates.
In 2020, despite the fact that its creators consider that much more work needs to be done to advance in a country where traditional agriculture prevails, they have managed to expand their distribution channels. “Our investors and clients are excited. We have seen a very positive reception from the markets ”explains Bunster, who points out that last August they began to sell their vegetables in Jumbo, and since last week they have been in the North American multinational Walmart.
“The new generations read the label in the supermarket more than any other. The sophistication of the consumer is demanding more from the producers, and the way agriculture has been done until today has not been able to cope with these consumption conditions. This is part of the value of bringing vertical agriculture to Chile ”, says Pablo Bunster, who sees in the startup a possible solution by automating food production.
In March 2020, AgroUrbana closed its second round of financing, which was led by the CLIN fund of ChileGlobal Ventures, the Venture Capital area of Fundación Chile. To date, the startup adds USD 1.5 million in financing, in which funds from Venture Capital, Family Offices, and individuals have participated, which has allowed them to reach an advanced stage of the AgroUrbana Series A round for USD $ 4 million, to finance the construction of a much larger scale vertical farm.
Read the complete article at: Vertical Farm Daily
Pablo Bunster, Co-founder and CCO of AgroUrbana “In Our Next Farm, We Will Be Able To Use 100% Renewable Energy”
As Chile has been in a complete lockdown since mid-May, AgroUrbana is lucky to continue its operations. “It’s not easy, because you have to change the way of operating, the interactions, and in-farm activities, even when food safety was already key to the company culture
As Chile has been in a complete lockdown since mid-May, AgroUrbana is lucky to continue its operations. “It’s not easy, because you have to change the way of operating, the interactions, and in-farm activities, even when food safety was already key to the company culture. Our customers have been ordering through home delivery”, Cristián Sjögren, Co-founder and CEO of AgroUrbana says.
Renewable energy
Bunster notes: “It took us from the energy market, from renewable energy, to farming. We believe that this is the perfect testing round to see what vertical farming can do.” Chile has drought, cheap labor, we have competitive, available and abundant renewables. Which is always a discussion around vertical farming. We manage sunlight here as we use 100% renewable energy PPA. However, we cannot do this with our pilot because the overall consumption is too low, so we have to regulate it. In our next farm, we will be able to go 100% renewable. That puts a lot toward sustainability for vertical farming.” The urban population is growing fast in Latin America. AgroUrbana believes that vertical farming can accommodate that food demand.
“Our next stage is, going commercial to a scale where we can bring costs down”, Bunster continues. “First, we thought of a small community distributed model with a few small blocks around, such as container farms. But, we believe that scale is still required as you can become more competitive with higher efficiency.
“First, we’re farmers and technology comes to serve that purpose be the best farmers! We are developing some technologies internally to run our farms, but our focus now is how we can actually rate the curve of cutting costs to make our products increasingly competitive. We want to stay out of the commodity but still reach the masses. Our mantra is to deliver better quality food to everyone”, Sjögren adds.
Pablo Bunster harvesting some fresh lettuce
Pilot farm
Sjögren states: “We started with a pilot farm, because vertical farming is something completely new in Latin America.” Before launching a new category for Agriculture in Chile, Sjögren and Bunster wanted to understand the economics of vertical farming. They took an approach of technology-agnostic by building a 3000 sq. ft pilot farm, where different technologies are tested. The 18-month pilot phase will be completed by the end of this year.
“We are integrating our own recipe that combines the seeds nature provides us with its nutrition and environmental parameters. Next to that, we are constantly improving and optimizing our operations in order to drive down costs”, Bunster adds. These quantities are allocated in a 3000 sq. ft farm which is not a large production, Sjögren noted, but this is done to test the market, integrate and develop our technology and do R&D in new varieties. AgroUrbana is planning on scaling up throughout Chile in 2021 with an aim to further expand into the new markets, mainly large urban areas, in the region in the next years.
“Chile is a perfect testing ground to start, test and stress what vertical farming can do, due to the Mediterranean weather we have, favorable to open farming, but also abundant and competitive renewable energy. We both spent our last ten years in the wind- and solar energy industry. Renewables will help AgroUrbana close the gap between traditional agriculture and vertical farming”, Sjögren says.
The country has suffered from climate change, with a 10-year drought that highly affected Chilean agriculture. AgroUrbana has achieved surprising improvements in its yield. “We are planning to transfer all this knowledge to our next farm, a 30,000 sq. ft commercial-scale farm. In the upcoming months, we are doing funding rounds in order to help us realize this farm.
Sjögren says that AgroUrbana is going to pilot in the berry space as well, such as strawberries. “We are starting a pilot to test the different varieties of strawberries. Next to that, we are developing edible flowers and some microgreens”, Sjögren affirms. Most of the volume is lettuce, but we will be rolling out other leafy greens and we will see how it goes with the other crops.
Carmelo platform
“There are many components such as climate control, irrigation, growing structures, and so on. We want to put all the pieces together and operate these very efficiently”, Sjögren states. The company is developing a technology ‘Carmelo’, a platform of sensors with hardware and software to monitor and control our operations. “We are at a level of precision, where we are able to handle the microclimates within the farm. Using Carmelo, we are collecting data already for over one year which is helping us to become even more precise and consistent.” All data gathered will be used for our first large scale commercial farm planned for 2021.
“We’re all about technology and data because that’s how you drive down the costs. We are combining genetics, giving the perfect climate, and the perfect environment. Carmelo is all about finetuning the recipe we’re creating, through managing a farm, and having consistent quality food, every day of the year”, Bunster adds.
Product pricing
“Our team is in good spirits as we have been keeping up production. The pandemic hit us hard, but we were able to relocate all production to different distribution channels, such as e-commerce, supermarkets and subscriptions”, Bunster states. We were planning on doing that already, but we accelerated our go-to-market because of the current situation. “There’s no going back on e-commerce because customers are getting used to it. If we can take our produce to e-commerce, keep our customers satisfied and easy about always getting the perfect product, they’ll always order it online. It’s something we already wanted to do and we are currently testing and proving it. So far, we’re doing okay”, Bunster adds.
AgroUrbana has two markets, one of them being retail with a fast pace opening of new distribution for their products, with 100% recyclable packaging. Furthermore, the company delivers its products to restaurants. Since one year, AgroUrbana has launched its own house mix of lettuce.
Cristián Sjögren and his colleague preparing the plugs for planting
Bunster mentioned that AgroUrbana is selling to restaurants that are price sensitive. Meaning that they care about food quality and the costs. “Here’s where food waste comes into play. We do not have any food waste. We’re coming to the point where most of what we grow, we’re able to process and sell. In restaurants only, we’re saving between 25-35% food of waste in leafy greens. We are very efficient in logistics as we don’t truck. We move food for a few miles from our farms to the kitchens of different clients. This helps us to make numbers for a competitive market.”
Focusing on the next generation
“It has been exciting to put our team together because nobody has a vertical farming degree on its resumé. We’re really excited to prepare the next generation of vertical farmers. We’re putting together different skills and attracting the next generation of farmers that want to move from the countryside to the city. It’s an attractive way to get a generation back to growing veggies in the city with a lot of interaction with technology”, Sjögren ends.
For more information:
AgroUrbana
Cristián Sjögren, Co-Founder and CEO
cristian.sjogren@agrourbana.ag
Pablo Bunster, Co-Founder and CCO
pablo.bunster@agrourbana.ag
www.agrourbana.ag
Publication date: Tue 25 Aug 2020
Author: Rebekka Boekhout
© HortiDaily.com
“Vertical Farming Costs Will Keep Going Down And Cut With Traditional Agriculture Costs"
“We want to bring sustainability to agriculture, and we are not going to be able to get there if we use traditional energy”, Cristián Sjogren, Co-founder and CEO of AgroUrbana says
Our plan is to supply our large operation with 100% renewable energy. AgroUrbana has three different approaches to it: one being, a solar farm with a combination of panels on the roof and on the ground. Secondly, a combination of powers on the roof and a power purchase agreement from a generator, coming from existing operating renewable power plants. The third approach is a contract with a generator to supply a 100% of our electrons from renewables, probably from both wind and solar farms. “We want to bring sustainability to agriculture, and we are not going to be able to get there if we use traditional energy”, Cristián Sjogren, Co-founder and CEO of AgroUrbana says.
Similar slope as LEDs five years ago
Chile started as a pioneer in renewable energy. “There’s a penetration of renewable energies going on in developing countries as they’re all going in the same road. We benefit from those competitive prices as well”, Sjögren continues. Pablo Bunster, Co-founder and CCO of AgroUrbana says: “When I started, ten years back, wind and solar were not as mature or competitive as they are today and there was a lot of discussion on what especially solar could do. Now, what you build is mostly wind and solar. That goes with technology and the curve of diminishing costs that you can see in technology when you factor in scale, plus where you can see it going.” Sjögren and Bunster see a similar trend in vertical farming. Such as, the cost of managing data, technology, and LED lighting.
Pablo Bunster and Cristián Sjögren
Bunster adds: “It’s relatable to solar panels as it’s the same slope. Five years ago, LEDs were considered very expensive, but too many people couldn’t do it because of the too high entry price to buy the lights. Today led is the new norm they go into everything and traditional light bulbs are out. When you see the slope on one side, which is data and on the other one, lights, you can see something very similar in the macrotrends of the renewable energy sector. There’s a huge opportunity to be able to be part of what could easily be a revolution in agriculture.”
‘Using technology to get there’
Sjögren states that vertical farming will become more evolving. AgroUrbana has the technology, the efficiency, the scale, and costs of capital. “As long there is more experience in this industry, you’ll see more capital and lenders as they will become more flexible and will understand the risks,” Sjögren says that food production needs to be increased by 70% in the next 30 years. “If we don’t bring technology to agriculture, we’re not going to get there. The good thing is that technology will allow us to increase performance and lower costs at the same time. There is going to be a point where vertical farming costs will keep going down and will cut with the traditional agriculture costs”, he adds.
Lettuce grown in AgroUrbana's pilot farm
Customer feedback
AgroUrbana received encouraging feedback from chefs to newspapers, to investors. Chefs are delighted with the food quality. The company started by focusing on high-end- and day-to-day restaurants. “After restaurants tried it, they were all about it and started posting about our products. They encouraged the quality of the product and that’s how we gained traction in the market around vertical farming”, Bunster affirms.
AgroUrbana has also received a few negative points on its packaging as 5% is plastic, despite in being recyclable. Bunster adds: “But we are working on this because we want 0% plastic in our packaging. Restaurants want to see prices; does it make sense on their profit line and do our customers keep buying from us? Then there is the consumers, a more sensitive sustainability group. They want to know how we grow our produce, what products were used for growing them and the impact food has on their planet. Chilean consumers would pay a higher premium to get a better product. We have addressed most of their concerns, which is: having a great product for the new generation. The story of traditional farming, which is a nice story but it doesn’t hold towards the future.”
A two-in-one product
Bunster continues: “AgroUrbana is already in the retail, e-commerce, restaurant and catering business. We might be about 10% above our closest competitor in retail but with far better product. The price signal communicates something in itself and we have that premium price.” According to Bunster, customers are looking for two things: convenience, that comes with ready to eat and health, healthy quality food. “They want to have food safety, where it’s produced and where it comes from, he says. You don’t find many products that can bring these two things in a package. They’re either convenient or healthy. Anything organic in Chile, has to be washed before eating, which is a choice and that’s perfect. But, we are able to bring the health of organic products and the convenience of more traditional products to the market.
Just a quick check-up on the microgreens
The millennials and generations after that have purchasing power are starting to control the market wallet. They’re not tech resistant, but they love technology. We have early on subscriptions, as people want our leafy greens in their houses every week. We need to take it further, which means doing it better and always drive down costs. It’s quality food for everyone and not only for a few.
Communicating the product to consumers “We are working on some storytelling videos so consumers know where the produce comes from. We just need to explain a little bit more on vertical farming. Especially in these times, vertical farming sounds as an abstract concept, but how do you communicate it? We just entered Chile’s top tier supermarket and talk are in place to further expand in retail. Our next step is to explain what vertical farming is through diagrams or an educational format”, Bunster says.
Sjögren says that millennials are 50% of the labor force. By 2025, they will be 75% of the labor force, so they are defining the market preference. He states that millennials are the generation that is reading product labels, more than any other generation in the past has done. “In the past, people were loyal to brands, volume vs. price, but that has completely changed. That is why this generation is perfect for vertical farming because they will value all these attributes that vertical farming brings. They will get informed; it’s just about finding the right communication strategy.”
For more information:
AgroUrbana
Cristián Sjögren, Co-Founder and CEO
cristian.sjogren@agrourbana.ag
Pablo Bunster, Co-Founder and CCO
pablo.bunster@agrourbana.ag
Publication date: Mon 17 Aug 2020
Author: Rebekka Boekhout
© HortiDaily.com
Vertical Farming in LatAm: AgroUrbana Closes $1m Seed Funding
Access to vertical farming technologies is deepening and widening across the world, bringing down the costs and hassle of locally producing anything from Singaporean strawberries to Arctic tomatoes
July 2, 2020
Access to vertical farming technologies is deepening and widening across the world, bringing down the costs and hassle of locally producing anything from Singaporean strawberries to Arctic tomatoes.
In Latin America, however, indoor vertical farms are still largely written off on a continent thought of in terms of its abundant fertile soil and plentiful sunlight. Why pay for artificial light or indoor automation when the sun is free, and labor and land are cheap?
That said, there are early signs of a Latin American vertical farming awakening in Chile, where AgroUrbana has just closed a $1 million seed round, bringing its total capital raised to $1.5 million. The startup has created South America’s first vertical farm, according to the Association for Vertical Farming.
Leading the round by contributing 33% of the cash was the CLIN Private Investment Fund administered by Chile Global Ventures, the VC arm of Fundación Chile, a public-private initiative for innovation and sustainability in the country. Support financing also came from CORFO, Chile’s economic development agency, and private investors like company builder and VC Engie Factory, the country’s largest telecommunications company Entel, and sustainability investor Zoma Capital.
In an interview with AFN, AgroUrbana founders Cristián Sjögren and Pablo Bunster described how the funds would be put to work at their 3,000 square feet pilot facility in the suburbs of Santiago, where testing is ongoing on layered, renewable energy-powered stacks of hydroponically grown, LED-lit leafy greens and fruits. AgroUrbana’s first big offtake deal has just been inked with a major Chilean grocery retailer, they said.
A pre-planned switch from restaurant to retail
“It’s been run, run, run,” Bunster recalls, describing the political turmoil in Chile that brought curfews and shuttered restaurants months before Covid-19 locked down the country. That earlier disruption, he adds, actually had its upsides, as it got them thinking more about e-commerce and direct-to-consumer sales — so when the team’s restaurant deals dried up during the Covid-19 pandemic, the switch to retail was already scoped out.
As to scaling up further, Sjögren envisions an eventual 30,000 square foot facility to be bankrolled by Series A funding they plan to work towards later this year. The design and output would depend on the results of their pilot trials.
This size of farm sets the team somewhere in the middle of the two dominant visions of vertical farming: centralized versus distributed. Proponents of centralized systems argue that large-scale production — and financial viability — depend on ever-bigger and higher farms. These farms — or plant factories as they are sometimes called — are proliferating, aided by huge sums of capital. Plenty scooped up a whopping $200 million in Series B funding back in 2017. AeroFarms raised $100 million in late-stage funding in 2019 while Fifth Season secured $50 million last year.
Although centralized facilities have generally dominated in terms of raising capital, distributed and decentralized business models are gaining pace according to AgFunder’s 2019 industry report. One in particular, Germany’s Infarm, nabbed $100 million last year to deploy its connected growing cabinets in supermarkets.
The theatricality of these cabinets harmoniously glowing in office buildings or hospitals in a post-coronavirus world also holds sway in the popular and corporate imagination of 2020. Companies like Square Mile Farms recently crowdfunding over $300,000 on the promise of re-kitting office spaces like Microsoft’s London premises with fresh produce. In New York, Farmshelf has its own grow cabinets deployed in WeWork FoodLabs.
Learning from cash-heavy first movers
Mention of relative giants like Plenty or InFarm could be daunting for newer entrants such as Square Mile Farms or AgroUrbana and their hitherto modest sums raised. But there is perhaps an advantage in starting late, so long as the team learns from the costly mistakes and hubris of earlier endeavours. Here, both Bunster and Sjögren see parallels with the renewable energy industry — where they worked previously — and see the arrival of cheaper, more sustainable energy and capital in Chile as crucial to making vertical farming competitive.
AgroUrbana is exploring three options for solar going forward: either establish a power purchase agreement, in which they buy renewable energy from an existing plant; finance a power plant which will sell energy to them later; or build their own solar farm. But they acknowledge that the larger the facility, the less feasible it is to have solar on-site.
The pair describe how some Chilean outdoor farming is already lean and competitive, yet much of it has been geared towards high-value crops like avocados – and that stuff is primed for export. For the urbanizing local market, they see gaps for hyper-local fresh produce, where the competition would actually be with low-tech smallholder farmers with less traceable supply chains. In the context of Covid-19 and an ensuing consumer embrace of e-commerce options, better nutrition, less water use, and fewer pesticides, the pair reckon there is much to gain from providing produce that is consistently fresh, 365 days a year.
Any chance of the world’s first vertically-farmed avocados any time soon? Unlikely, replies Bunster. As for gene editing, where South American jurisdictions are known to have more lax regulations than their North American counterparts, Bunster says the plan was to work with what nature already provides, while giving “the conditions of spring every day of the year.”
Vertical Farming In LatAm: AgroUrbana Closes $1m Seed Funding
Access to vertical farming technologies is deepening and widening across the world, bringing down the costs and hassle of locally producing anything from Singapore strawberries to Arctic tomatoes
July 2, 2020
Access to vertical farming technologies is deepening and widening across the world, bringing down the costs and hassle of locally producing anything from Singapore strawberries to Arctic tomatoes.
In Latin America, however, indoor vertical farms are still largely written off on a continent known for its abundant fertile soil and plentiful sunlight. Why need of artificial light or indoor automation when the sun is free and labor is cheap?
That said, there are early signs of a LatAm vertical farming awakening in Chile, where AgroUrbana has just raised a $1 million seed round, bringing its total capital raised to $1.5 million. AgroUrbana is South America’s first vertical farm, according to the Association for Vertical Farming.
Leading the round by contributing 33% of the cash was the CLIN Private Investment Fund administered by Chile Global Ventures, the venture capital arm of Fundación Chile, a public-private initiative for innovation and sustainability in the country. Support financing also came from CORFO (Chile’s Development Agency) and private investors like company builder and VC Engie Factory, the country’s largest telecommunications company Entel, and sustainability investor Zoma Capital.
In a video call with AFN, AgroUrbana f0unders Cristián Sjögren and Pablo Bunster described how the funds would be put to work at their 3,000 square feet pilot facility in the suburbs of Santiago, where testing is ongoing on layered stacks of hydroponically grown, LED-lit, renewable energy powered leafy greens and fruits. AgroUrbana’s first big offtake deal had just been inked with a major Chilean grocery retailer, they said.
A pre-planned switch from restaurant to retail
“It’s been run, run, run,” recalled Bunster, describing the political turmoil in Chile that brought curfews and shuttered restaurants months before Covid-19 locked down the country. That earlier disruption, he added, had actually had its upsides, as it got them thinking more about e-commerce and direct-to-consumer sales — so when the team’s restaurant deals dried up during the Covid-19 pandemic, the switch to retail was already scoped out.
As to scaling up further, Sjögren envisioned an eventual 30,000 square foot facility that would be bankrolled by a Series A that they plan to work towards later this year; the design and output would depend on the results of their pilot trials.
This size of farm sets the team somewhere in the middle of the two dominant visions of vertical farming: centralized versus distributed. Proponents of centralized systems argue that large-scale production—and financial viability—depend on ever-bigger and higher farms. These farms, or plant factories as they are sometimes called, are proliferating, aided by huge sums of capital. Plenty scooped up a whopping $200 million in Series B funding back in 2017. US-based AeroFarms raised $100 million in late-stage funding in 2019 while Fifth Season secured $50 million last year.
Although centralized facilities have generally dominated the vertical farming venture capital domain, distributed and decentralized business models are gaining pace, according to AgFunder’s 2019 industry report. One in particular—Germany’s Infarm—nabbed $100 million last year to deploy its connected growing cabinets in supermarkets. The theatricality of these cabinets harmoniously glowing in office buildings or hospitals in a post-corona world also holds sway in the popular and corporate imagination of 2020, with companies like Square Mile Farms recently crowdfunding over $300,000 on the promise of re-kitting office spaces like those of Microsoft’s London premises with fresh produce. In New York, Farmshelf has its own grow cabinets deployed in WeWork FoodLabs.
Learning from cash-heavy first movers
Mention of giants like Plenty or InFarm could be daunting for newer companies like Square Mile Farms or AgroUrbana and their hitherto modest sums raised. But there is perhaps an advantage in starting late — so long as the team learns from the costly mistakes and hubris of earlier endeavors. Here, both Bunster and Sjögren see parallels with the renewable industry, where they worked previously, and see the arrival of cheaper, more sustainable energy and capital in Chile as crucial to making vertical farming competitive.
AgroUrbana is exploring three options for solar going forward: either establish a PPA, in which they buy renewable energy from an existing plant; to finance a power plant which will sell to them later; or build their own solar farm. But they acknowledge that the larger the facility, the less feasible it is to have solar onsite.
The pair described how some Chilean outdoor farming is already lean and competitive, yet much of it has been geared towards high-value crops like avocados — and that stuff is primed for export. For the urbanizing local market, they see gaps for hyper-local fresh produce, where the competition would actually be with low-tech smallholder farmers with less traceable supply chains. In the context of Covid-19 and an ensuing consumer embrace of e-commerce options, better nutrition, less water use, and fewer pesticides, the pair reckon there is much to gain from providing produce that is consistently fresh 365 days a year.
Any chance of the world’s first vertically-farmed avocados any time soon? Unlikely, replied Bunster. As for gene editing, where Latin America is known to have more lax regulations than North America, Bunster said the plan was to work with what nature already provides, and just give them “the conditions of spring every day of the year.”