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BASF Venture Capital Invests In Indian Startup UrbanKisaan
With the investment from BASF, UrbanKisaan plans to further expand its market presence in India, deploy its farming technology to work with thousands of farmers, and bring fresh, local, sustainable produce to urban dwellers
Startup optimizes sustainable agriculture without soil in tropical climates
■ BASF Venture Capital’s first investment in this early stage Indian business strengthens AgTech activities in Asia
Hyderabad, India, and Ludwigshafen, Germany, July 13, 2021 – BASF Venture Capital GmbH (BVC) is investing in the Indian startup UrbanKisaan, which specializes in hydroponic cultivation of various types of vegetables, greens and herbs in tropical urban environments. This is BVC’s first investment in an early stage business focusing on India. Conceptualized in 2017, UrbanKisaan operates several suburban greenhouses and vertical indoor farms in Hyderabad and Bangalore. The company sells the fresh produce, some of which is grown directly in the shops, in its franchise-owned brick-and-mortar stores and via an app and website. Both parties agreed not to disclose financial details of the investment.
UrbanKisaan has optimized hydroponics technology for use in tropical climates such as India. With only one tenth of the costs, the proprietary technology is significantly more efficient than conventional global standards in hydroponics cultivation. The company is also capitalizing on the trend of online food retailing, which is booming on the subcontinent. “Our approach in hydroponics enables us to produce our food cost-effectively and with relatively little effort,” said Vihari Kanukollu, co-founder and CEO at UrbanKisaan. “Our produce also contributes towards sustainability as it is grown in clean, hygienic farms in and around the city, thus minimizing the total carbon footprint. Use of IoT (Internet-of-Things)-enabled technology for monitoring the farms ensures pesticide-free produce. The growing demand from our customers shows that our idea is well-received,” he added.
UrbanKisaan’s farms are managed through their proprietary technology. Nutrient content, pH levels, atmospheric humidity, CO2 concentration, light concentration and other important parameters are controlled and adapted to the needs of the particular plants with an app.
“UrbanKisaan, as a pioneer in the hydroponics space, has developed a unique growing method and combines this with a compelling business model for sales,” commented Markus Solibieda, Managing Director of BASF Venture Capital GmbH. He added: “AgTech is one of our key investment focus areas worldwide. This includes, in particular, our goal of supporting innovative agricultural and food-related businesses in Asia. We look forward to learning more about hydroponic farming and exploring its potential through a close collaboration between UrbanKisaan and BASF’s agriculture experts.”
With the investment from BASF, UrbanKisaan plans to further expand its market presence in India, deploy its farming technology to work with thousands of farmers, and bring fresh, local, sustainable produce to urban dwellers.
Hydroponic farming – an efficient way to use limited resources
The world’s population is expected to reach 10 billion by 2050 1 while the area available for farming and freshwater reserves are becoming increasingly scarce. Hydroponics offers a sustainable way to grow crops without soil and using vertically stacked layers while reducing water usage by about 90 percent 2. Especially in densely populated urban areas, this presents a more efficient way to use limited resources like water, space and manpower. Water that is not absorbed by the plants is captured, purified and fed back into the farm’s water circulation system, minimizing wastage significantly.
India is the second-largest producer of fruits and vegetables in the world, with a production value of about $64 billion3. It is also a large consumer of fruits and vegetables, and while much of this is through unorganized channels (local vegetable markets, hand-pulled carts and neighborhood stores), organized channels (modern trade and online retail) account for a little over 20 percent of the market4. Thus, hydroponics is a fast growing and efficient alternative to traditional supply chains in the organized fresh produce market.
About UrbanKisaan
UrbanKisaan was conceptualized in 2017 in Hyderabad, India. The company began as a farming enterprise but wanted to grow more than just fresh and nutritious food. They wanted to create a sustainable future for farming and feed the world in a way that is good for both people and planet. Today, with its hyper-local urban farms the company is creating a transparent supply chain with a low carbon footprint, leveraging on proprietary growing technology that helps save 90% of water yet grow 30 times more crops compared to traditional farms of similar area. Further information at www.urbankisaan.com.
About BASF Venture Capital
At BASF, we create chemistry for a sustainable future. BASF Venture Capital GmbH (BVC) also contributes to this corporate purpose. Founded in 2001, BVC has offices in Europe, the U.S., China, India, Brazil, and Israel. BVC’s goal is to generate new growth potential for current and future business areas of BASF by investing in young companies and funds. The focus of investment is on new materials, AgTech, Digitization and new, disruptive business models. Further information at www.basf-vc.com.
About BASF
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 110,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €59 billion in 2020. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the U.S. Further information at www.basf.com.
3 Fruits & Vegetables Production value at Current Prices for 2015-16, Horticultural Statistics at a Glance 2018, Government of India, Ministry of Agriculture and Farmers Welfare
4 Avalon Consulting - http://www.fruitnet.com/asiafruit/article/178572/india-on-the-move
Spread, Chubu Electric Power And ES-CON JAPAN Enter An Investor Agreement, Plan To Construct Techno Farm Fukuroi, World’s Largest Vertical Farm To Produce 10 Tons Daily
Spread is excited to enter the investor agreement with Chubu Electric Power and ES-CON JAPAN, as all partners share the same vision and values of sustainable agriculture, and each partner is bringing their own unique strengths to the partnership
Spread Co., Ltd., Chubu Electric Power Co., Inc., ES-CON JAPAN Ltd., announced today that they have entered into an investor agreement regarding the establishment of TSUNAGU Community Farm LLC to construct and operate vertical farms.
Expectations are high for vertical farms for stable production of pesticide-free agricultural products through precise control of the cultivation environment.
Many hope that vertical farms will provide a solution for a number of problems, such as growing consumer needs for food safety, a decrease in farming population, as well as food supply instability, and price fluctuations due to extreme weather.
Based on the agreement, Spread, Chubu Electric Power, and ES-CON JAPAN will jointly establish the new company that will construct and operate vertical farms, in July 2021.
As its first initiative, the new company is planning to build an automated vertical farm Techno Farm Fukuroi” in Fukuroi city (Shizuoka, Japan), which will be the world’s largest automated vertical farm, capable of producing 10 tons of lettuce per day.
The construction will start in October this year, while the production start is planned for January 2024.
The integration of Chubu Electric Power’s energy management know-how, ES-CON JAPAN’s real estate development capabilities, and Spread’s cultivation technologies will allow for the efficient and stable production of pesticide-free, safe and clean vegetables.
Spread, Chubu Electric Power, and ES-CON JAPAN aim to solve the issues affecting food and agriculture through vertical farming, while actively utilizing renewable energy and effectively using CO2 in the cultivation process to achieve a sustainable society and the delivery of SDGs through decarbonization.
About Spread
Since its establishment in 2006, Spread has been promoting vertical farming with the goal of creating a sustainable society.
In 2018, Spread started shipping from the large-scale automated Techno Farm Keihanna in Kizugawa, Kyoto which is the first facility to employ Spread’s next-generation food production system Techno Farm?. In less than 2 years from the start, Techno Farm Keihanna reached a stable operating rate of 99%. Spread will further refine Techno Farm? technologies that allow stable production anywhere at any time, and plans to reach 100 tons of daily production domestically by 2030, while pursuing various business opportunities both in Japan and overseas. Under the concept of “Sustainable Vegetable”, Spread delivers its own vertically farmed vegetables brand Vegetus to approximately 4,000 stores in Japan. Since the start of the brand in 2008, Spread has sold over 70 million packs in total*1.
Spread is excited to enter the investor agreement with Chubu Electric Power and ES-CON JAPAN, as all partners share the same vision and values of sustainable agriculture, and each partner is bringing their own unique strengths to the partnership.
Unique Features of Techno Farm Fukuroi
Largest vertical farm in the world, capable of producing 10 tons of lettuce per day
Standardized, efficient operations via automated cultivation
Even more precise environmental control
Recycling of the water used for cultivation
Energy-saving due to in-house developed LED lighting specifically for vertical farming
IoT-based cultivation management system
Pesticide-free, stable production, not influenced by the weather
Utilization of renewable energy
Spread will continue to pursue further business opportunities through technological innovation both in Japan and overseas.
Spread aims to provide solutions for the global problems of climate change and food security and the delivery of a truly sustainable society.
Techno Farm Fukuroi’s Specification
Construction site: Fukuroi-shi, Shizuoka Prefecture, Japan Farm type: Indoor Vertical Farm using Artificial Lighting Site area: Approximately 24,400㎡
Product: Leafy greens（Lettuce）
Production capability: 10 tons per day / 3,650 tons per year Production start: January 2024
Overview of TSUNAGU Community Farm LLC
Established: July 2021 (scheduled)
Location: 1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture Managing partners: Chubu Electric Power (representative member), ES-CON JAPAN, Spread
Investment: Chubu Electric Power: 51%, ES-CON JAPAN: 48%, Spread: 1%
Business: Production and sale of agricultural products through the operation of vertical farms, utilizing fully artificial light
Overview of Chubu Electric Power Co., Inc.
President & Director：Kingo Hayashi
Business：Renewable energy business, Nuclear power business, Overseas business, Community support infrastructure-related business, Etc.
Overview of ES-CON JAPAN Ltd.
President & Representative Director：Takatoshi Ito
Business：Real estate sale, Real estate leasing, Real estate planning, brokerage, and consultation
Overview of Spread Co., Ltd.
Chief Executive Officer ：Shinji Inada
Business：Vertical farming operation, management, and sales of the products
Bowery Farming Secures $300 Million To Continue US Expansion
The company has secured more than $472 million in funding to date, bringing its valuation to $2.3 billion
Bowery Farming has secured $300 million to continue the expansion of its network of indoor farms across the United States. The company has secured more than $472 million in funding to date, bringing its valuation to $2.3 billion.
The funding will provide resources to accelerate advancements in farm design and the BoweryOS, enabling more and more communities access to a reliable supply of locally-grown produce, year-round.
Accelerating technologies
“This infusion of new capital from Fidelity, other new investors, and the additional support of our long-term investor partners is an acknowledgment of the critical need for new solutions to our current agricultural system," said Irving Fain, CEO and Founder of Bowery Farming.
"Next to that, it's the enormous economic opportunity that comes with supporting our mission. This funding not only fuels our continued expansion but the ongoing development of our proprietary technology, which sits at the core of our business and our ability to rapidly and efficiently scale towards an increasingly important opportunity in front of us.”
“Bowery’s approach to indoor farming represents a meaningful disruption to the traditional produce supply chain, and its systems-based approach to engineering and farm design is unparalleled,” said Andy Wheeler, General Partner at GV. “I look forward to continuing to partner with the Bowery team as they build and scale the largest indoor farming network in the U.S. and bring more sustainable produce to consumers.”
Rapid growth
Now in over 850 grocery stores, Bowery has experienced more than 750% growth since January 2020 at brick-and-mortar retailers like Albertsons Companies, Giant Food, Walmart and Whole Foods Market, and more than quadrupled e-commerce sales through e-commerce platforms, including Amazon Fresh.
In January 2021, Injong Rhee (formerly VP at Google and CTO of Samsung Mobile) joined Bowery as Chief Technology Officer to oversee the seamless integration and ongoing development of technology across the growing network.
The Company is currently transforming an industrial site in Bethlehem, PA into its largest, most technologically advanced and sustainable farm yet, expanding its reach further into the Northeast and Pennsylvania region. Bowery will be breaking ground on additional large-scale commercial farms this year, and is actively engaged in identifying new farm locations in the United States with an eye towards global expansion.
25 May 2021
Global Investment In Agri-Food-Tech Surged To $ 22.3 Billion
Finistere Ventures report reveals $ 5 billion invested in Agtech and $ 17.3 billion invested in Foodtech in 2020. Finistere Ventures expects 2021 to dwarf 2020 numbers as capital continues to flood into agtech.
5 May 2021
Finistere Ventures report reveals $ 5 billion invested in Agtech and $ 17.3 billion invested in Foodtech in 2020. Finistere Ventures expects 2021 to dwarf 2020 numbers as capital continues to flood into agtech.
According to Finistere Ventures’ 2020 AgriFood Tech Investment Review, a report developed in collaboration with PitchBook Data, total global investment in agrifood tech companies in 2020 surged to $ 22.3 billion – $ 5B in ag-tech and $ 17.3B in food-tech – continuing to grow at 50% CAGR (2010-2020); Finistere expects 2021 to exceed this record year based on early investment data.
Fear of missing out
“While 2020 presented some interesting and, at times, surprising outcomes for the agrifood sector, we saw fear turn into fear of missing out (FOMO) with favorable results for startups, particularly those in later stage situations with meaningful revenue and strong growth stories,” said Arama Kukutai, co-founder and partner, Finistere Ventures.
According to Kukutai, low interest rates and a soaring equity market have provided a backdrop unseen in the relatively short history of the sector. “Investors attracted to the potential disruption of massive total addressable markets fueled increases in investment across all stages and segments,” he said.
Race for innovation access is heating up
Based on the report, the race for innovation access is heating up and creating a new level for agrifood investing. A renewed focus on climate change and carbon offsets is gaining momentum, and rising ESG interest is spilling over into venture-backed companies across agrifood.
Involvement from new or non-traditional players – family offices, large pension and sovereign wealth groups, late-stage PE – swelled and the role of CVCs across the space continued to grow. 2020 saw 8054 unique investors participate across over 9000 transactions in the agri-food space.
Key ag-tech findings include:
Due to the industry’s successful adaptation in the midst of the pandemic, investment into ag-tech continued to expand at a staggering pace through the end of 2020, with the $ 5B total capital invested comprising almost one-third of the $ 15.9B raised across ag-tech sectors since 2010
Late-stage deals and mega-rounds proliferated as investors rallied to support existing portfolio companies and the composition of investors continued to diversify, fueling sustained growth with the median for late-stage deals reaching record heights at $ 67.6M
CVCs considerably increased activity in the ag-tech arena in 2020, participating in 107 funding rounds
Biotech kept its stronghold as the top ag-tech investment area, attracting $ 1.3B in 2020, and starting off 2021 strong with $ 268.2M secured in the first quarter.
Interest in indoor ag spiked, driven by supply chain and sustainability factors, as well as growing consumer preference for local, fresh produce with superior taste and quality –reaching $ 1.3B in funding for 2020, more than doubling YoY from $ 601M raised in 2019
Due in large part to pandemic pressures, animal tech investment exploded in 2020 reaching $ 847.8M after lackluster interest over recent years
Subsectors including digital technologies, precision agriculture, plant sciences, ag marketplace, and fintech also broke investment records in 2020 as stakeholders made their commitment to help growers manage climate change and overcome mounting sustainability pressures clear.
Investments and profits booming
According to Finister Ventures investments and profits are booming. “We expect 2021 to dwarf 2020 numbers as capital continues to flood into the technology categories with absolutely massive disruption potential like indoor ag, supply chain technologies, animal health, novel ingredients and alternative proteins,” said Kukutai.
Substantial consolidation and rise of distinct market leaders
“Valuations, deal totals and market sizes will continue to climb thanks to low interest rates, free-flowing capital, and trillions of dollars of pent-up consumer spending power. However, as the market inevitably right sizes and new categories of innovation emerge to meet these monumental shifts, we also expect substantial consolidation and the rise of distinct market leaders.”
Hugo Claver
Web editor for Future Farming
Red Lobster CEO Kim Lopdrup Named Chairman of The Board For Kalera
Kim Lopdrup provides industry expertise as Kalera prepares for international expansion and US listing of its shares
Kim Lopdrup Provides Industry Expertise As Kalera Prepares For International Expansion And US listing of Its Shares
May 12, 2021
Source: Kalera
ORLANDO, Fla., May 12, 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 that Kim Lopdrup is appointed as new Chairman of Kalera as the company moves towards a US listing. Kim joined Kalera’s Board last year and remains CEO of Red Lobster.
This announcement comes on the heels of the news of Kalera’s appointment of Sonny Perdue, former US Secretary of Agriculture, and Maria Sastre to the Board of Directors. Current Chairman, Bjorge Gretland, will continue as a board member in the company. Bjorge became Chairman of the company in 2013 when the company only had a handful of employees. Now, the company has become one of the fastest-growing and largest vertical farming companies in the world with truly pan-US coverage.
“We couldn’t be more thrilled to have Kim, a proven titan in the food and restaurant industry, become Chairman of our Board,” said Bjorge Gretland, current Kalera Chairman. “His knowledge and expertise span from securing the highest quality, traceable and sustainable seafood for his vast network of restaurants to leading companies through global expansion. These are skills that are invaluable to Kalera at this time. As Kalera moves towards a US listing of its stock, Kim is extremely well suited to take on the Chairman role.”
Kim Lopdrup has been the Chief Executive Officer of Red Lobster, the world’s largest seafood restaurant company, since 2014. Under his leadership, Red Lobster has greatly improved its food, service, and technology. All of Red Lobster’s seafood is now traceable, sustainable, and responsibly sourced. It has dramatically grown its off-premise sales by adding delivery and Rapid Red Curbside Pick-Up. Red Lobster was recently recognized by Forbes on its 2021 list of America’s Best Large Employers and by Newsweek on its 2021 list of America’s Best Loyalty Programs. Kim was previously President of Specialty Restaurant Group and New Business for Darden Restaurants, where he was responsible for The Capital Grille, Eddie V’s, Seasons 52, Yard House, and Bahama Breeze as well as Darden’s international division, consumer packaged goods, and M&A. He has also previously served as Chief Operating Officer, North America, for Burger King Corporation and as CEO of the International Division for Dunkin’ Donuts and Baskin-Robbins.
“Kalera has a world-class management team and a disruptive technology that allows them to produce the highest-quality produce I have ever tasted in a way that is remarkably clean, sustainable and efficient. It is easy to see why customers get so excited once they try Kalera’s products or tour one of Kalera’s farms,” said Kim Lopdrup. “I am passionate about great food, food safety, nutrition, sustainability, innovation and international growth. Kalera is positioned to excel in all of these areas. I look forward to working with Daniel Malechuk, Kalera’s outstanding CEO, to make the most of these exciting opportunities.”
Kim serves on the boards of Wawa, Inc. (since 2006); Red Lobster (since 2014); Bob Evans Restaurants (since 2017), and Kalera (since 2020). He previously served on the boards of Rubio’s Restaurants (including during its IPO), 31 Ice Cream (a Japanese public company), and Hiram Walker & Sons, Ltd. (a Canadian company). He also served on the board of Boys & Girls Clubs of Central Florida for 12 years, being named Board Member of the Year in 2011 and receiving National Service to Youth awards in 2010 and 2015. He is currently co-chair of Project Opioid. Orlando Business Journal named Kim a “CEO of the Year” in 2016. He holds a BBA from The College of William & Mary and an MBA with Distinction from Harvard Business School, where he won the Uhlmann Prize for best agribusiness research in 1984.
The appointment of Kim Lopdrup as Chairman of Kalera’s Board of Directors will be presented for approval by Kalera’s shareholders at a general meeting.
For further information:
Bjørge Gretland, Chairman
Email: bgretland@kalera.com
About Kalera
Kalera is a technology-driven vertical farming company with unique growing methods combining optimized nutrients and light recipes, precise environmental controls, and cleanroom 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.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Investors Seed Indoor Farms As Pandemic Disrupts Food Supplies
Proponents, including the U.S. Department of Agriculture (USDA), say urban farming increases food security at a time of rising inflation and limited global supplies. North American produce output is concentrated in Mexico and the U.S. Southwest, including California, which is prone to wildfires and other severe weather
Wausau, WI, USA Stevens Point
Feb 18, 2021
By Rod Nickel
(Reuters) - Investors used to brush off Amin Jadavji's pitch to buy Elevate Farms’ vertical growing technology and produce stacks of leafy greens indoors with artificial light.
"They would say, 'This is great, but it sounds like a science experiment,'" said Jadavji, CEO of Toronto-based Elevate.
Now, indoor farms are positioning themselves as one of the solutions to pandemic-induced disruptions to the harvesting, shipping, and sale of food.
"It's helped us change the narrative," said Jadavji, whose company runs a vertical farm in Ontario, and is building others in New York and New Zealand.
Proponents, including the U.S. Department of Agriculture (USDA), say urban farming increases food security at a time of rising inflation and limited global supplies. North American produce output is concentrated in Mexico and the U.S. Southwest, including California, which is prone to wildfires and other severe weather.
Climate-change concerns are also accelerating investments, including by agribusiness giant Bayer AG, into multi-storey vertical farms or greenhouses the size of 50 football fields.
They are enabling small North American companies like BrightFarms, AppHarvest and Elevate to bolster indoor production and compete with established players AeroFarms and Plenty, backed by Amazon.com Inc founder Jeff Bezos.
But critics question the environmental cost of indoor farms' high power requirements.
Vertical farms grow leafy greens indoors in stacked layers or on walls of foliage inside of warehouses or shipping containers. They rely on artificial light, temperature control and growing systems with minimal soil that involve water or mist, instead of the vast tracts of land in traditional agriculture.
Greenhouses can harness the sun's rays and have lower power requirements. Well-established in Asia and Europe, greenhouses are expanding in North America, using greater automation.
Investments in global indoor farms totaled $394 million in 2020, AgFunder research head Louisa Burwood-Taylor said.
The average investment last year doubled in size, as large players including BrightFarms and Plenty raised fresh capital, she said.
A big funding acceleration lies ahead, after pandemic food disruptions - such as infections among migrant workers that harvest North American produce - raised concerns about supply disruptions, said Joe Crotty, director of corporate finance at investment bank KPMG, which advises vertical farms.
"The real ramp-up is the next three to five years," Crotty said.
Vegetables grown in vertical farms or greenhouses are still just a fraction of overall production. U.S. sales of food crops grown under cover, including tomatoes, cucumbers and lettuce, amounted to 790 million pounds in 2019, up 50% from 2014, according to the USDA.
California's outdoor head lettuce production alone was nearly four times larger, at 2.9 billion pounds.
USDA is seeking members for a new urban agriculture advisory committee to encourage indoor and other emerging farm practices.
PLANT BREEDING MOVES INDOORS
Bayer, one of the world's biggest seed developers, aims to provide the plant technology to expand vertical agriculture. In August, it teamed with Singapore sovereign fund Temasek to create Unfold, a California-based company, with $30 million in seed money.
Unfold says it is the first company focused on designing seeds for indoor lettuce, tomatoes, peppers, spinach and cucumbers, using Bayer germplasm, a plant's genetic material, said Chief Executive John Purcell.
Their advances may include, for example, more compact plants and an increased breeding focus on quality, Purcell said.
Unfold hopes to make its first sales by early 2022, targeting existing farms, and start-ups in Singapore and the United Kingdom.
Greenhouses are also expanding, touting higher yields than open-field farming.
AppHarvest, which grows tomatoes in a 60-acre greenhouse in Morehead, Kentucky, broke ground on two more in the state last year. The company aims to operate 12 facilities by 2025.
Its greenhouses are positioned to reach 70% of the U.S. population within a day's drive, giving them a transportation edge over the southwest produce industry, said Chief Executive Jonathan Webb.
"We're looking to rip the produce industry out of California and Mexico and bring it over here," Webb said.
Projected global population growth will require a large increase in food production, a tough proposition outdoors given frequent disasters and severe weather, he said.
New York-based BrightFarms, which runs four greenhouses, positions them near major U.S. cities, said Chief Executive Steve Platt. The company, whose customers include grocers Kroger and Walmart, plans to open its two largest farms this year, in North Carolina and Massachusetts.
Platt expects that within a decade, half of all leafy greens in the United States will come from indoor farms, up from less than 10% currently.
"It's a whole wave moving in this direction because the system we have today isn’t set up to feed people across the country," he said.
'CRAZY, CRAZY THINGS'
But Stan Cox, research scholar for non-profit The Land Institute, is skeptical of vertical farms. They depend on grocery store premiums to offset higher electricity costs for lighting and temperature control, he said.
"The whole reason we have agriculture is to harvest sunlight that’s hitting the earth every day," he said. "We can get it for free."
Bruce Bugbee, a professor of environmental plant physiology at Utah State University, has studied space farming for NASA. But he finds power-intensive vertical farming on Earth far-fetched.
"Venture capital goes into all kinds of crazy, crazy things and this is another thing on the list."
Bugbee estimates that vertical farms use 10 times the energy to produce food as outdoor farms, even factoring in the fuel to truck conventional produce across country from California.
AeroFarms, operator of one of the world's largest vertical farms, a former New Jersey steel mill, says comparing energy use with outdoor agriculture is not straightforward. Produce that ships long distances has a higher spoilage rate and many outdoor produce farms use irrigated water and pesticides, said Chief Executive Officer David Rosenberg.
Vertical farms tout other environmental benefits.
Elevate uses a closed loop system to water plants automatically, collect moisture plants emit and then re-water them with it. Such a system requires 2% of the water used on an outdoor romaine lettuce operation, Jadavji said. The company uses no pesticides.
"I think we're solving a problem," he said.
(Reporting by Rod Nickel in Winnipeg, Manitoba; additional reporting by Karl Plume in Chicago; Editing by Caroline Stauffer and Lisa Shumaker)
VIDEO: How Max Chizhov, Co-Founder And CEO of iFarm Raised $4M To Build An Indoor Farming Solution Provider In Today’s Urban Environment?
The company is an indoor farming solution provider of plug and play automated vertical farms and data-driven software. Easy one-button managed farms from 50 till 5000 sq.m and a wide range of plants to grow are available for customers
Max Chizhov is the co-founder and CEO of iFarm. The company is an indoor farming solution provider of plug and play automated vertical farms and data-driven software. Easy one-button managed farms from 50 till 5000 sq.m and a wide range of plants to grow are available for customers. Farms can be set in a store, restaurant, warehouse, home, or country house. iFarm allows everyone on Earth to grow their healthy food sustainably and be independent of the supply chain.
iFarm technologies are recognized worldwide: the project is not only included in the TOP 500 food startups of the world and is a member of the EIT Food Accelerator Network; iFarm also became the best agricultural startup in Europe in The Europas Awards 2020, the winner in the category of the best social impact startup of Nordic Startup Awards 2019
In an exclusive interview with AsiaTechDaily, Max Chizhov says:
The main mistake is to lose focus. We have been there too. At first, we wanted to create a whole product line that would meet both the b2b and b2c needs: indoor farms, containers, grow boxes, etc. And in the end, we realized that this would entail additional costs and postpone the launch indefinitely. As a result, we decided to focus on one area, create a high-quality industrial technology, and then develop new formats.
Don’t be afraid to make mistakes. Without them, you cannot become your best self. Also, never cease to learn. It is actually something that should be taught at school — not simply give knowledge, but teach how to find it, interpret and apply.
Read on to know more about Max Chizhov and his journey.
Please tell me about your personal background and What motivated you to get started with your company?
Max Chizhov: In 2017, I was looking for a project that, on the one hand, would be interesting for me from a professional point of view, and on the other, bring tangible benefits to society. I already had experience in the technological field, which is why I focused on that area. At that time, I also met Alex Lyskovsky, who had just finished a course at a culinary school in France. That experience left him wondering whether it was possible to grow high-quality vegetables all year round, regardless of climate conditions and with the least environmental impact, ideally making a profit. His story resonated with me, so I thoroughly researched the topic and realized that I wanted to do something; that’s how iFarm was born.
What is your current main product, and can you share any previous product pivot story to the current product?
Max Chizhov: At first, we wanted to develop as a producer of farm vegetables, herbs, and berries. But having evaluated the scaling prospects, we realized that we were not ready to wait 20 years to become a global supplier.
Then iFarm focused on developing technological business solutions for growing delicious natural products on vertical farms in today’s urban environment. Since 2018, the iFarm team has created automated vertical farms and an IT platform to manage them. We want to equip farmers worldwide with advanced growing technologies to earn by supplying fresh, tasty, and healthy products.
How much fundraising have you raised in total so far? When was the recent funding round?
Max Chizhov: This year iFarm closed a $4M investment round. The round was led by Gagarin Capital, which has previously invested in the project. Other investors included Matrix Capital, Impulse VC, IMI.VC and several business angels.
What were the internal decision processes in determining when to begin fundraising, and what were the logistics for this? And how many investors have you met so far and how did you meet these investors, and which channels worked best for you?
Max Chizhov: When we came up with iFarm, we were aimed at multiple growths. Having experience setting up several businesses with a similar strategy, we already knew how to develop companies at high speed and what to focus on. We needed venture capital investments to scale faster, improve the quality of our products and services, and strengthen the team with the best specialists.
The first investors were ourselves — the founders. We created a prototype and received the first money from the sale. Later, investments started to come from friends, acquaintances, and close associates. Thanks to this, we reached stable growth, finalized our target audience, and made the technology’s first sales. That was useful when we began to communicate with venture capital funds, who could give us additional value — help enter new markets and reach potential clients and raise funds in the next rounds.
The funds that have already invested in iFarm provide us with such assistance. We are also looking for new funds that are ready to work with us and help us accelerate the company’s development.
What are the biggest challenges and obstacles that you have faced in the process of fundraising? If you had fundraising, what would you do differently?
Max Chizhov: We made several pivots during fundraising. Initially, fundraising was different, but we changed it along the way. It was not easy, but it was a conscious decision for us. After a few experiments, we came up with the most efficient and scalable concept and business model.
Not every investor is tolerant to a sudden change of concept in a company’s development, so it was important for us to find funds that would trust us and treat such changes with understanding. Of course, any decision like that has to be supported by analytics and convincing reasoning and backed by a certain reputation of the founders in investors’ eyes.
What are your milestones for the next round? And what are your goals for the future?
Max Chizhov: We are planning to close Round A for € 5 million in the first quarter of 2021. This funding will be used to advance further in Europe and the Middle East, develop iFarm Growtune and update the library of growth recipes with new crops, expand the team, and increase sales. Next year we are also aimed at launching 40,000 square meters of vertical farms under our management.
How have you attracted users, and with what strategy have you grown your company from the start to now?
Max Chizhov: We were our own first clients because, in the first place, we were creating a technology that we wanted to use. The results allowed us to validate the quality and made it clear that we had produced the product we were willing to consume ourselves.
The next customers came through word of mouth: they contacted us through a recommendation or after tasting the products. For three years, we did not invest anything in advertising or marketing. All clients came thanks to our own activity on social networks, events, and media.
Entering new markets today, we, of course, launch a sales funnel and aim at our target groups: b2b, enterprise, city-farmers.
What do most startups get wrong about marketing in general?
Max Chizhov: The founders’ biggest mistake is to ignore their customers and end up making a product that the market does not need. The prototype must be shown to the customer as soon as it is ready, then you collect feedback and finalize the product according to it. When entering new markets, it is necessary to conduct cust dev, collect opinions on improvement and customers’ vision for further product development.
How do you plan to expand globally?
Max Chizhov: Next year we will continue our expansion in Europe and the Middle East. In 2022-2024 we plan to enter the North American and Asian markets.
What are the most common mistakes companies make with global expansion?
Max Chizhov: None of us had any experience in this area; we wanted to produce high-quality and tasty products. It was important to go all the way from the idea to the final product, to make all possible mistakes, to realize the shortcomings of the chosen business model, and finally determine that our product would be the vertical farming technology itself, and not greens.
How do you handle this COVID-19 outbreak situation for your company’s survival in the future?
Max Chizhov: Over the last few years, the overall trend in agriculture has been to localize production. This is due to the high rates of urbanization, population growth, and in 2020 the additional impact of the Covid-19 pandemic and the quarantine following it that made the problems of long supply chains and food security even more obvious.
Such conditions make growing vegetables, berries, and greens in the consumer’s immediate vicinity a necessity. Countries have begun to think strategically about food security issues, which brought us, several large customers.
From the point of view of organizing teamwork, we did not face any difficulties. Even before the pandemic, we had been building processes and implementing tools for an effective remote team’s smooth work.
What are the most common mistakes founders make when they start a company?
Max Chizhov: The main mistake is to lose focus. We have been there too. At first, we wanted to create a whole product line that would meet both the b2b and b2c needs: indoor farms, containers, grow boxes, etc. And in the end, we realized that this would entail additional costs and postpone the launch indefinitely. As a result, we decided to focus on one area, create a high-quality industrial technology, and then develop new formats.
Another mistake is to pay too much attention to details without seeing the bigger picture. For example, in the beginning, we did not think about any high-level process automation. But the further we went, the more clearly we understood the need to reduce human involvement in the production. That is why we developed special software for managing vertical farms — iFarm Growtune launched a drone and continues to create solutions that automate planting, moving trays on racks, assembling, and packaging.
What’s the best advice you’ve ever received? And What advice do you have for someone who is interested in doing similar things like yours or in a similar direction?
Max Chizhov: Launching a project, it is crucially important for the founders and early team members to share the same vision and ambition and make sure they are in tune. This will help you stay focused.
What are the top-three books or movies (TV series) that changed your life and why?
Max Chizhov: My top-3: Ray Dalio – Principles, Tony Hsieh – Delivering happiness, Daniel Kahneman – Thinking, Fast and Slow. These books help me to look at our business from different sides and make my workdays more efficient.
How do you keep yourself motivated every day?
Max Chizhov: New goals and plans, a global mission that the entire team is guided by, allow you to avoid unnecessary distractions and make sure you work towards your goals. Being involved in development in the food industry, you can see, touch, and taste your work’s tangible results. This also gives additional motivation.
What are the top-three life Lessons that you want your (future) sons and daughters to know?
Max Chizhov: Don’t be afraid to make mistakes. Without them, you cannot become your best self. Also, never cease to learn. It is actually something that should be taught at school — not simply give knowledge, but teach how to find it, interpret and apply.
What would you like to be remembered for?
Max Chizhov: I would like that in a year when you hear about our company or see products grown using our technology, you would remember where we started and what mistakes we made at the very beginning, and that each mistake motivated us to move on.
You can follow Max Chizhov here.
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Webinar: The State of Vertical Farming In Asia - September 28, 2020
This webinar is designed for vertical farmers, cultivation and operation teams, support technology companies, business executives as well as investors looking to connect with industry leaders to better understand the opportunities and challenges facing the vertical farming industry in Asia during and after the COVID-19 pandemic
AVF Roundtable: Vertical Farming in Asia:
Challenges & Opportunities During and After the COVID-19 Pandemic
(To be held on the 28th of September at 10:00 a.m. CEST)
This webinar has a limited number of tickets available, please register your participation soon
This webinar is designed for vertical farmers, cultivation and operation teams, support technology companies, business executives as well as investors looking to connect with industry leaders to better understand the opportunities and challenges facing the vertical farming industry in Asia during and after the COVID-19 pandemic.
Panelists:
1. Dr. Peng Li, Head of International Sales Department at SANANBIO
Dr. Li has a Ph.D. in Ecology from Peking University and a post-doctorate degree from the same university in Plant Nutrition. Since 2016 he has been working at SANANBIO as a senior engineer in Plant Factory Research Institute, COO in Hutou Produce Center, and now as Head of the International Sales Department.
2. Dr. Joel Cuello, Professor of Agricultural and Biosystems Engineering at the University of Arizona
Dr. Joel L. Cuello is Professor of Biosystems Engineering and Director of the Global Initiative for Strategic Agriculture in Dry Lands (GISAD) at The University of Arizona in Tucson, Arizona, U.S.A. He is also currently Vice Chair of the International Association for Vertical Farming (AVF).
A globally recognized expert in the engineering of sustainable biological and agricultural systems, his technical expertise in both engineering and biology provides the platform for engineering designs in various agricultural and biological systems with an emphasis on optimizing productivities while fostering resource sustainability and environmental protection.
Prof. Cuello has designed, constructed and implemented varied types of engineered agricultural or biological systems, including those applied to bioregenerative space life support, vertical farming, plant tissue culture, micropropagation, industrial mass production of algae and plant cell and microbial cultures for production of biomass, nutraceuticals, pharmaceuticals, etc. He is the Principal Inventor of the patented algae photobioreactor series — the Accordion photobioreactors — as well as the Vertical Farming systems — the Mobile & Modular Vertical Farm and the V-Hive Vertical Green Box
3. Eri Hayashi, Vice President at the Japan Plant Factory Association
Eri is the Vice President of Japan Plant Factory Association (JPFA), a non-profit organization devoted to academic and business advancements in the Plant Factory/Controlled Environment Agriculture (CEA) industry.
Before joining JPFA, Eri worked at a private research/consulting institute in Tokyo as a researcher specializing in the technology advancement for global food production. She has been conducting international field researches on Plant Factory/Vertical Farm and CEA since 2008. She has published multiple research papers and has been a research project manager on AI- and phenotyping- based smart plant factory systems and breeding.
She is also the chief executive officer of E*Green Lab Inc.
4. Yasuhiro Suzuki, General Manager for Asia at Heliospectra
Yasuhiro Suzuki is responsible for Heliospectra’s Product management, Business development and Asian sales. He covers both Sales and Marketing in Asia with his rich experience in Business Development and Sales from his previous carriers. Yasuhiro holds a bachelor’s degree in Sociology from St. Paul’s University in Tokyo. Previous positions include Marketing & Product Management Director at Tetra Pak in Japan.
5. Christine Zimmermann-Lössl, Chairwoman at the Association for Vertical Farming
Christine Zimmerman-Loessl has a background in studying political science, sinology and philosophy at Munich University – which was the starting point for her interest in international work. She has worked in different Asian countries which has given her experience and deeper insight in the culture and people. In Germany, she benefited from this as a project manager for risk analysis and crisis management. Networking was always easy for Christine and she founded the Asia Network Information Center – a research and project organization bridging East and West. Later on, as the representative for the Konrad Adenauer Foundation in China, she took responsibility in different areas and led a German-Chinese Management Institute, initiated environmental protection and poverty alleviation projects, as well as engaged in women’s programs. Christine was inspired by her son’s interests in Vertical Farming and founded with a group of like-minded young people the first nonprofit in the world – the Association for Vertical Farming (AVF) in 2013, since then she is acting as the chairwoman of AVF.
Topics:
1. Key challenges and opportunities in the context of the pandemic
2. Emerging trends and new market opportunities
3. Change in consumer behavior and preferences
4. New retail strategies
5. New technology developments
6. Private and public financing
7. Certification and standardization
8. Educating the next generation of farmers
9. Need for interindustry networking and partnerships
Take-Home Value:
• Deeper understanding of the Asian Vertical Farming industry
• Background and exploration of the Asian Vertical Farming Markets
• Understanding constraints and opportunities in Asia for this industry
• Exploring the continent’s legislative and private financial support for the industry
• Exchange of ideas and solutions
This webinar has a limited number of tickets available, please register your participation soon.
If you cannot attend the live session the recording of this webinar will be sent to you.
Note that AVF members can attend or access the recording of this webinar for free. contact our vice-chair, Ramin Ebrahimnejad at re@vertical-farming.net for more information.
VIRTUAL SUMMIT: Connecting Technology & Business To Create Healthy, Resilient Food Systems - July 23, 2020
By sharing best practice from around the globe, and facilitating new connections and collaborations, the summit offers an invaluable platform to develop new business and accelerate projects across the Indoor AgTech ecosystem
The Indoor AgTech Innovation Summit is going virtual! This year’s summit will be live online on July 23, 2020, providing an essential opportunity for the industry to meet, network, https://indooragtechnyc.com/, and exchange ideas at this critical time for our industry.
The world’s leading farm operators, food retailers, and investors will present live, before hosting virtual discussion groups on the emerging trends and technologies that will shape your business as we emerge from the current crisis into a redesigned food system:
Key Themes:
· Finding Growth in Crisis: Responding to a Rapidly Changing Food Landscape
· Scaling Up: Co-locating Food Production and Distribution Centers
· Enhancing Nutritional Value: Towards a Perfect Plant Recipe
· Optimizing Seeds for Indoor Agriculture: Breeding a Competitive Advantage
· Analytics and the Cloud: Digital Integration to Optimize Indoor Agriculture
· Robotics: Developing a Contactless Food System
· Energy Consumption: Driving Efficiency and Economic Viability
· Financing Growth: Can Capital Keep Pace with Industry Demand?
· Consumer Awareness: How to Build a “Holistic” Indoor Brand
All participants can schedule video 1-1 meetings with potential partners and clients throughout the summit, and for an extended period before and after the sessions.
By sharing best practice from around the globe, and facilitating new connections and collaborations, the summit offers an invaluable platform to develop new business and accelerate projects across the Indoor AgTech ecosystem.
Summit website: https://indooragtechnyc.com/
Registration:
- One summit pass Indoor AgTech: $195.00
- Start-Up pass: $95.00 / Please contact jamie.alexander@rethinkevents.com to enquire about the criteria to qualify for special rates.
Indoor Agtech Virtual Innovation Summit July 23, 2020
By sharing best practice from around the globe, and facilitating new connections and collaborations, the summit offers an invaluable platform to develop new business and accelerate projects across the Indoor AgTech ecosystem
We Are Proud To Be A Marketing Partner
Save 10% With Discount Code iGROW10
Major names join speaker line-up for virtual summit
We are thrilled to announce the first speakers confirmed for the 2020 virtual Indoor AgTech Innovation Summit on July 23.
They'll share critical intelligence on how the indoor farming industry is shaping the agri-food landscape, and redesigning food systems to meet consumer demand for fresh produce.
VIEW SPEAKER LINE-UP
Hear from and connect with international thought leaders including:
WHAT ARE OUR EXPERTS SAYING?
"Instead of shutting down, we implemented South Korean-style measures for our warehouse, farm, and office. Then, we launched a new nationally distributed product that allows folks to grow mushrooms at home rather than travel to the grocery store."
Andrew Carter, CEO, SMALLHOLD
"COVID-19 has raised awareness about the prospects for automation such as machines working in packing houses and indoor environments. I think it’s fair to say that humans can be relieved of those tasks."
Elyse Lipman, Director of Strategy, LIPMAN FAMILY FARMS
"Given current pressures on the U.S. food system, one thing is clear: the importance of strengthening our country’s food supply chain through decentralized, regional supply chains."
Viraj Puri, CEO and Co-Founder, GOTHAM GREENS
READ MORE INSIGHTS FROM OUR SPEAKERS>>
Secure your place at Indoor AgTech and save 10% with discount code iGROW10
and connect with the world’s leading farm operators, food retailers, and investors for a jam-packed day full of 1-1 video meetings, live panel sessions, and interactive roundtable discussion groups.
BOOK NOW WITH CODE iGROW10
We look forward to welcoming you online.
Best wishes,
Oscar Brennecke
Conference Producer
Indoor AgTech Innovation Summit
+44 (0)1273 789 989
oscar.brennecke@rethinkevents.com
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The Road Ahead For Vertical Farming
"In the next 10-15 years, it will rise as one of the dominant forms of agriculture." In a recent webinar presented by the Association for Vertical Farming and Heliospectra, the opportunities and challenges facing the vertical farming industry in 2020 and beyond were highlighted, resulting in quotes like the one introducing this article
"In the next 10-15 years, it will rise as one of the dominant forms of agriculture." In a recent webinar presented by the Association for Vertical Farming and Heliospectra, the opportunities and challenges facing the vertical farming industry in 2020 and beyond were highlighted, resulting in quotes like the one introducing this article. Moderated by AVF Chairwoman, Christine Zimmerman-Loessl, the three guests, Nate Storey (Co-Founder & Chief Science Officer of Plenty), Joel Cuello (Professor of Biosystems Engineering, University of Arizona) and Ali Ahmadian (President & CEO, Heliospectra) shone their light on where the industry is headed.
"On the cusp of growth"
According to Joel, the vertical farming industry has had a historic run in growth and proliferation globally in the last five or so years. "Going forward, especially in terms of the enormous COVID-19 disruptions in fresh produce chain, vertical farming will continue growing", he says. "It should be economically viable, but it shouldn't just be a growth story, but also of sustainability and resilience."
Nate adds that currently, the vertical farming industry is still in its infancy. "We're on the cusp of growth and expansion as an industry. By and large, the world is still skeptical because vertical farming isn't a dominant form of production yet, but in the next 10-15 years it will rise as one of the dominant forms of agriculture."
Tech catches up with vision
Having moved on from the stage of pioneers and visionaries (who were, in a sense, "too early", because they saw the potential for vertical farming, but the tech didn't match up to their visions), Nate says that "we're now at a point where the tech matches the need; technology has caught up with the vision", adding that it's not going to be a pain-free road. "Folks will be challenged by the economic fundamentality of the business. We need to either offer a differentiated product, or a product that is cost-competitive with the field, so they're accessible to people."
At Plenty, he says, the primary tech inputs are LED and semiconductors. "As costs go down, we reap the benefits - same with data storage, genetics, etc. So we have created our own tech cost curve around indoor ag, which drives costs down and quality up." As a result, the yield for the same amount of energy increased by 12x at Plenty, Nate explains.
There's still a world to win when it comes to the proper use of tech, however. Ali: "50% of vertical farms today are profitable, while the other 50% are struggling. The main reason why vertical farms are struggling is because farmers underestimate the true cost of labor: many farmers overlook the way in which growing techniques make workers more or less efficient."
A small test of Mother Nature: "Get your act together"
Of course, the elephant in the room wasn't ignored by the panel. COVID-19 has had an impact on all industries, and vertical farms are no exception. "In the US, the fresh produce supply chain has been dramatically upended by COVID", Joel says. "Lots of growers were suddenly left without a place to deliver their produce. They need to establish new contacts, which is hard to do, so lots of fresh produce goes to waste."
At the same time, in a lot of major cities in the US, there's been a huge increase in demand for produce from vertical farms. The same thing happened in Europe, although there the dependence on seasonal workers from outside the EU has proven problematic, Joel explains, with a shortage of workers, again leading to produce going to waste.
Nate points out that in many cases the food supply chain is global now. "We've been pushing yield increases in the field to the max, but it's a system under stress, operating at the max all the time - break a link and the whole system comes crashing down." With instabilities like climate change, Nate argues the industry has a lot of buttressing to do. "COVID was a small test of Mother Nature, basically saying 'get your act together'. As the COVID situation affected the Bay Area (where our flagship farm is), our sales have doubled - indoor produce is a supplement to produce from the field, and retailers are realizing the usefulness of indoor produce."
The crucial role of governments
With the COVID crisis, governments have been giving more attention to indoor/vertical farms now. According to Ali, this will open up huge opportunities for current and future vertical farmers.
Nate agrees. "Government recognition is super important - it's a capital intensive business." At Plenty, they're building agricultural infrastructure, comparable to electricity and water. Nate even goes so far as to say that in the future, food production will become one of those utilities. "Government has to play an important role in getting the industry off the ground, cutting red tape and supporting producers, like with loans and capital to help the industry get started. Government support will be a critical step for this industry."
Christine agrees that the role of governments is important, but they also need to be made aware of the opportunities of vertical farming, they need to be informed of what it is and what it isn't. "Governments always say: 'Human beings can't live on salad - so where do we go with this vertical farming industry? Will we produce things like corn and maize in a vertical farm? What is the blueprint of the future?" So informing and educating is also of the utmost importance.
Attracting investors
The same goes for attracting investors, another important pillar under the industry. According to Nate, "folks are starting to view vertical farming not as an if but a when question - what we've earned over the last decade or two is the recognition that this is a necessary thing. It's driven by incredible demographics changes, so it's an inevitability. We are proving that it can be an extremely profitable venture."
As a result, more people are starting to think about investing in this. "The money out there is going to get smarter and smarter about this industry", Nate adds. "Investors tended to be super-specialized in agriculture; now folks who don't come from that background are also approaching the space, having enough info to start making huge investments. So, access to capital will grow, but there is a gap between the capital which is more risk-tolerant and the capital with very little risk tolerance. We'll have to build relationships with risk-tolerant capital."
For more information:
Association for Vertical Farming
Marschnerstrasse,
81245 Munich,
Germany
info@vertical-farming.net
vertical-farming.net
Publication date: Thu 4 Jun 2020
Author: Jan Jacob Mekes
© HortiDaily.com
UAE Farm Tech To The Fore
New technologies are helping the country make more of its own produce
New technologies are helping the country make more of its own produce
Over a span of just six months, Covid-19 has not only changed the way we work, celebrate occasions and stay healthy but also forced countries to take a hard look at how they feed their residents. “I believe the current pandemic has provided us the opportunity to completely reimagine the global food system,” says Tony Hunter, a global food futurist.
Going urban
One of the factors pushing the global agri-tech agenda is the growth and increasing density of cities. “By 2050, more than two thirds of the world’s population is forecasted to live in cities,” explains Smitha Paresh, Executive Director of Greenoponics, a UAE-based retailer of commercial and consumer hydroponics systems, adding that urban agriculture will be crucial for feeding burgeoning urban populations.
“On a macro level, we will see a rise in urban farming, mostly using high-tech farming methods such as hydroponics, aeroponics or aquaponics.” Paresh cites Singapore’s conversion of car parks into urban farm centres as an example. “In the UAE, as per the national food security strategy for 2017-2021, we have already witnessed a huge increase in climate-controlled greenhouses all over the country.”
Arable environments
For Hunter, who spoke about potential silver linings of Covid-19 at a recent Gulfood webinar, new technologies present the best means of achieving domestic self-sufficiency. “They can release countries from the tyrannies of arable land and water stress.” He singles out algal products that rely on low rainfall and can use seawater; cultivated meat and biomass products; cell-based products such as milk proteins; and synthetic biology that can manufacture a range of food products.
Over the long term, Ravindra Shirotriya, CEO, VeggiTech, believes there are three critical areas for sustainable farming in the UAE. The first is precision agriculture, which focuses on growing conditions for plants using hyperbaric chambers and nanotechnology-based organic nutrition. Photo bio-reactors, meanwhile, can cultivate food-grade algae such as spirulina. Finally, Shirotriya cites smart farms, which work with smart cities to create harvest plans based on real-time data on food demand and consumption within communities. “This will address our current broken food ecosystem, where we waste 35 percent of food while 15 percent of the world population goes to sleep hungry.”
VeggiTech’s primary focus is on setting up LED-assisted hydroponics for indoor vertical farms and protected hydroponics for sustainable farming in the UAE.
In terms of crop production, Avinash Vora, Co-founder of Aranya Farms, says new technologies aim to boost yields, reduce waste and grow produce entirely. “Technology is being applied at every stage, whether for plant seeding, monitoring growth, managing water, energy conservation, harvesting and packaging. “We are making huge strides adapting all of them here in the UAE; the interest and investments in agriculture prove that.”
For Philippe Peguilhan, Country Manager of Carrefour UAE at Majid Al Futtaim Retail, the UAE had already been seeking self-reliance in food production, but coronavirus amped up its importance. “The disruption that Covid-19 caused to the supply chain highlighted the importance of local produce and presented an excellent opportunity for local farmers to grab a greater share of the market.” Majid Al Futtaim recently made headlines for opening the UAE’s third, and Dubai’s first, in-store hydroponics farm.
Hydroponic hope
Hydroponics is one agri-tech that’s attracting keen investor interest. “As an indicator, Madar Farms’ 7,000-sq-m factory will produce 365 tons of tomatoes a year, and about 14,000 tons of cherry vine tomatoes were consumed in the UAE in 2019,” says Hunter. “There’s therefore the market opportunity for 38 Madar farms in the UAE for tomatoes alone. Add in other nutrient-dense crops such as cucumbers, peppers and leafy greens. Depending upon their size, we could be looking at several hundred businesses.”
On an individual level, more people are leaning towards home farming, especially towards soil-less cultivation since it is simple and easy, according to Paresh. “It guarantees a certain amount of yield. Home farming will be on the rise, considering the disruption we may face in trying times like this.”
As with most technologies, Hunter says the biggest challenge of hydroponics is profitability. “Fortunately, the costs of technology inputs required to optimise hydroponic production efficiencies are falling rapidly. This drop, together with simultaneous increases in performance, is driving down the costs of hydroponics, making acceptable ROIs much easier to achieve.” He adds that economies of scale can help achieve good ROIs. “Currently most farms are in the 1-2 ton per day range but farms of 50 tons per day are being projected by as early as 2025.”
Sustainability challenges
“Challenges in building our own farm were access to sufficient and cost-effective electricity; renewable sources of water; and the availability of locally made raw materials, specifically growing media, nutrients and seeds. With seeds we are adapting — we have been growing our own seeds but having a library of seeds to choose from that are suitable for our climate and environment would be a huge boon to all farmers.”
— Avinash Vora, Co-founder of Aranya Farms
By Riaz Naqvi, Staff Writer | Gulf News | May 28, 2020
