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Widespread Investment In CEA Is An Important Piece of The Food Security Puzzle
It has become increasingly clear that traditional agriculture is simply not meeting the food demands of the future
Sky Kurtz, CEO, and Co-Founder, Pure Harvest Smart Farms
There is a commonly quoted statistic estimating that by 2050, we will have nearly 10 billion people on the planet and, in turn, 10 billion hungry mouths to feed. Aside from population factors, the world’s climate is changing in ways human beings have never seen before. Across the globe, our water sources are being diminished and arable landmasses are shrinking. Food security and sustainability is becoming an ever-more pressing issue. There are a number of pioneering companies worldwide working hard to address these critical issues.
The Problem with Traditional Agriculture
It has become increasingly clear that traditional agriculture is simply not meeting the food demands of the future. Food production is heavily driven by significant freshwater consumption and can be both labour intensive and inefficient. Alongside this, changes in climate are negatively impacting yields. This is being witnessed across the board by the food production industry, investors, and governments alike.
The Power of the Consumer
Increased awareness of these issues has led to changes in consumer demands. Consumers have become more discerning about the quality of the products they buy, specifically when it comes to pesticide use, sustainability, freshness, food safety, variety, and brands. They are ever more interested in having knowledge of and creating a relationship with the foods they consume. This is evidenced by the huge organic growth rates of organics over the past 10 years. People care about quality and are voting strongly with their wallets.
Cultural and socio-economic demographics heavily influence what can and should be grown. Some crops such as premium quality leafy greens tend to target more affluent demographics and palates, whereas tomatoes, cucumbers, and a number of other greenhouse vegetables are staples of many diets and can be produced affordably in most places in the world.
The Promise of Controlled-Environment Agriculture
Controlled-Environment Agriculture (CEA) facilitates the growth of sustainable, high-quality produce but not at the expense of the consumer. CEA allows for consistent, high quality production by eliminating the environmental impacts on food production, allowing for more localized production, and reducing, or even eliminating, the use of pesticides.
Reducing Risk
Since early 2020, COVID-19 has woken the world to the risks and fragility of global fresh fruit and vegetable supply chains. Given perishability, the fruit & vegetable market is uniquely vulnerable vs. other crops e.g. the likes of corn, wheat, rice which can be stored & siloed. Controlled-environment agriculture is a solution that addresses these issues facilitating more localized production and supply, offering high output, resource-efficient production capabilities, while meeting the consumer’s changing demands.
In March, the world’s gaze turned to the Suez Canal where a container ship, the Ever Given, became lodged, blocking the canal. On a daily basis, the Suez Canal carries 12% of global trade, around one million barrels of oil and roughly 8% of liquefied natural gas. The cost of the blockage was reportedly $14m-$15m every day!
The Local Promise
The local unique selling point (USP) is now possible pretty much anywhere. Solutions like ours at Pure Harvest Smart Farms have made it possible to affordably produce year-round, even in the harshest climates in the world for example, the UAE, Kuwait, and Malaysia serving Singapore.
Large-scale solutions are necessary for the food to be economic, due to economies of scale in what is ultimately a manufacturing process. Large-scale greenhouses are particularly suitable for dense urban populations, as just 1 or 2 large production sites within 100 – 500 kilometers of the city or town can serve a large group of people affordably.
Unfortunately for more distributed, rural populations, this becomes more challenging. If you scale-down the solutions to hyper-localize, you often lose efficiency (in terms of both capital expenditure/ m2 and operational expenditure/ m2 for production. With more of the world’s population urbanizing, this is another trend that supports widespread investment in CEA as an important piece of the puzzle to serve future food demands.
The Future
The challenge of feeding nearly 10 billion people by 2050 MUST be solved on both the supply side and demand side. From the supply side, adopting technologies that augment output and resource-efficient growing methods. From the demand side, via changing what we consume, reducing waste, and environmental consciousness. Addressing these issues means we can produce more food with less and less resources.
High-tech agriculture presents a multi-decade investment opportunity to contribute to food security, water conservation, economic diversification, and a more sustainable future for all.
Join Sky at the virtual Indoor AgTech Innovation Summit on June 24 and tune into his live panel discussion on ‘Scaling at Speed: Delivering the Promises of a Mission-Led Industry’ at 16.50 EST.
For more information about Pure Harvest Smart Farms, follow them on Facebook, LinkedIn, Instagram and Twitter.
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GreenFactory Emirates: The Largest Indoor Farm In The World To Be Developed In Abu Dhabi
GreenFactory Emirates will develop an innovative indoor farming with the world's most advanced indoor growing system from The Netherlands
Barendrecht (The Netherlands) and Abu Dhabi (UAE)
September 22, 2020
A joint venture between GrowGroup IFS from Barendrecht (The Netherlands) and RainMakers Capital Investment LLC from Abu Dhabi (UAE) will build the largest indoor farm in the world in the desert of Abu Dhabi. The GreenFactory Emirates will produce 10,000 tons of fresh produce per year on a plot of 17.5 hectares and a cultivation area of 160,000 square meters.
GreenFactory Emirates will develop an innovative indoor farming with the world's most advanced indoor growing system from The Netherlands. It is a combination of vertical and flat farming and solves the normal cultivation restrictions due to extreme climates in regions as the UAE. The facility will involve numerous leading agro-technological companies in its construction as best of breed for each component will be sourced through top-tier Dutch companies. It is now possible to cultivate high-quality vegetables 100% pesticide-free, all year round and anywhere on the planet: “Quality of Holland – Local Grown.” From seeding, harvesting, processing to "ready to eat" products will take place under one roof.
The joint venture also plans to build other indoor farms in other regions of the world where extreme climates are a challenge to normal cultivation.
Water, Co2, and waste
The GreenFactory will be saving 95% of water consumption as opposed to standard methods of cultivation as well as reducing its Co2 footprint up to 40%. By growing fresh produce locally, GreenFactory Emirates will also contribute to reducing waste in various other areas. Its contribution to slowly reducing reliance on fresh foods imports will in turn reduce waste of produce occurring during the transport process while reducing logistical traffic.
Research and development
GreenFactory Emirates will include a built-in research and development component that will help ramp up the production beyond the 56 current varieties of lettuces, leafy greens, herbs, and kale. It will also optimize its production by collecting real-time data to inform future global expansion of indoor farming. With confirmed partnerships with GAAS Wageningen and Delphy in The Netherlands, GreenFactory will benefit from live feedback provided by some of the best students and Academia in the field.
Food security
Food security is high on the UAE’s agenda. The country aims to be number 1 on the Global Food Security Index by 2051. In 2019, the UAE ranked on the 21st place on the Index, jumping an impressive 10 places from number 31 in 2018. Boosting local production and creating an enabling environment for agri-tech is a top priority for the government. The UAE strives to become a knowledge hub with regards to food production in heat, high humidity, and high salinity soil. The private sector (supermarket chains and the hospitality industry) has also set ambitious targets for itself in order to sell more local produce.
Partnership
The partnership between GrowGroup and rainMKRS is initiated and a result of an introduction made by the Embassy of the Kingdom of The Netherlands in the United Arab Emirates and the Monarch Group which has played an instrumental role in seeking opportunities and nurturing relationships.
Expo 2020 Dubai
The total project amounting to 650M AED (150M EURO) is planned in different phases in 3 years. Phase 1 will be operational before Expo 2020 Dubai in October 2021, so GreenFactory Emirates can show the world its innovations. A kick-off for more similar projects and innovations worldwide.
GrowGroup IFS
GrowGroup IFS (Innovative Farming Solutions), founded by CEO John Breedveld in Barendrecht in The Netherlands, is specialized in developing indoor farming based on the most advanced Dutch innovative farming solutions, especially in regions where normal cultivation is restricted by extreme climate and or limited space.
rainMKRS Capital Investment LLC
With offices in Abu Dhabi (UAE) and Montreal (Canada), rainMKRS is an entrepreneurial catalyst co-founded by a group of Emirati and Canadian entrepreneurs. Led by Mohamed Jouan Al-Dhaheri, Sultan Al-Nassour, Sebastien Leblond, and Jonathan Mérineau Gosselin, rainMKRS brings together the world’s most impactful companies and projects in the food and agriculture sector and UAE’s economic, educational, and investment stakeholders. rainMKRS’ objective is to help bridge the gap between these stakeholders in order to accelerate the progress on critical and strategic components in support of the UAE desire to achieve food security.
GreenFactory Emirates is its first of many initiatives in the field.