Building A Vertical Farm With Partners — An Ongoing Case In Switzerland

iFarm has recently announced a partnership with YASAI and Logiqs to create a new vertical farm in Switzerland. Working together, we aim to expand into new locations, highlight the growth potential of vertical farming in Europe and showcase the benefits of working with industry partners.

On 5 February 2021, iFarm (The Netherlands), YASAI AG (Switzerland) and Logiqs B.V. (The Netherlands) announced a strategic partnership with plans to launch Zurich’s first vertical farm. iFarm will supply the nutrient solution management system, specialist sensors, control systems and Growtune software platform and Logiqs will be supplying automated shelving systems at Yasai’s 673 sq. m plantation.

Now, we’re giving you behind-the-scenes access to the data and decisions that were the driving force behind the venture.

With contributions from Mark E. Zahran, Co-Founder, and CEO of YASAI, Gert-Jan van Staalduinen, CEO and Owner of Logiqs, and Kirill Zelenski, Managing Director of iFarm Europe, we’ll look at how and why this strategic partnership came about and what the future holds.

Read on to find out more about what goes into launching a successful vertical farm and how you can achieve the same goals.

Why Switzerland? Why Europe?

As you may already know, location is a critical factor when assessing the feasibility of a vertical farm. Locating a vertical farm in a densely populated urban area, with limited access to traditional farming facilities and rural land, ensures there is untapped demand for locally grown produce.

For Mark, being based in Switzerland made Zurich a natural choice for the first YASAI vertical farm. However, selecting the right location wasn’t merely a matter of convenience, as he emphasised:

The market is here. The market demands local produce, grown in a responsible and sustainable way, and, with the right technology, you can meet the demand and create a successful business.

Although the concept of vertical farming is becoming increasingly popular in Europe, there’s no doubt that the regional market lags behind its U.S. and Asian counterparts, but this needn’t be a deterrent for potential investors or farmers. In fact, the growth potential makes vertical farming in Europe a viable form of investment:

Vertical farming has grown more quickly in America and Asia but, I think, in the end, we will have a more sustainable model and acceleration is already taking place.

Gert, Logiqs

With demand for fresh, locally sourced produce creating a market for vertical farms and investors actively seeking out new ventures, it’s clear that Switzerland, and Europe as a whole, is a prime location for the partnership. By taking a strategic approach, other farmers, entrepreneurs and start-ups can use the same parameters to identify key locations for future vertical farms.

Do Local Trends Matter?

Local trends and current market conditions certainly play a role in identifying viable locations, and opportunities, for vertical farming. Whether you’re forming a partnership or starting your own venture, you’ll want to ensure that your vertical farm is situated in an area that prioritises what you can offer.

In Europe, for example, the current range of fresh produce available in the supermarkets is somewhat limited, despite the growing popularity of pesticide-free produce and plant-based foods. As awareness of environmental issues and climate change becomes more important to consumers, this is already being reflected in their decision-making and purchase behaviour.

The European Statistics Handbook reports that Nordic countries (Sweden, Finland and Denmark) are responsible for just 1.5% of Europe’s fresh produce, with the local climate being cited as the main obstacle to production. With climate-controlled production facilities, however, the potential of vertical farming in this region is clear and presents a worthwhile investment for entrepreneurs, farmers and investors.

Furthermore, the CBI estimates that Europe is responsible for 44% of worldwide fresh fruit and vegetable trade. Exporters to the region are encouraged to capitalise on the continent’s ‘off season' in order to maximise their profits. While traditional farming methods do, of course, result in off seasons, this no longer needs to be the case. The ability of vertical farmers to grow high-quality produce year-round using climate-controlled environments effectively eradicates off seasons and facilitates domestic fruit and vegetable production.

Based on these trends, it’s possible to predict that European consumers will respond positively to the presence of pesticide-free, locally grown, produce in shops and restaurants. For retailers and food or vegetables distributors, this makes partnering with vertical farmers a viable and exciting venture.

In relation to our current partnership, the fact that Switzerland imports 48% of its vegetables, reflects the Europe-wide food production trends and indicates that there is a growing market for fresh, local produce:

When fresh produce is imported, companies are more focused on transportability than flavour or quality. By shortening the supply chain and growing produce locally, we can deliver better tasting vegetables and higher quality produce.

Mark, YASAI

At the same time, a more health-conscious society is placing greater emphasis on food quality and diversity. The emerging, ‘pay the farmer, not the doctor' movement, is reframing the way we think about food as the foundation of our health, which will no doubt impact future consumer behaviour.

If you look at the last 200 years, the amount that people spend on medical care was increasing all the time and the amount they paid for food was decreasing, so now we are at a sweet spot where it could change again and people would eat more consciously and also get less sick, which leads to a healthier society.

Mark, YASAI

It’s evident, therefore, that local trends have been a key factor in identifying the right location for YASAI’s new vertical farm. By assessing potential locations from an economic perspective, analysing the domestic market and identifying current and emerging trends, it’s possible to determine where vertical farms can have the greatest success.

Finding the Right Partners

When you’re embarking on any venture, it’s important to work with the right partners. So, how did the alliance between YASAI, Logiqs and iFarm come about?

Already operational in Europe, Russia and the MENA, iFarm was approached by YASAI on the basis of our leading vertical farm solutions, collaborative approach to farming and reputation within the industry. Indeed, the success of the solutions was a factor in why YASAI were so keen to work with iFarm:

What we saw, in terms of hardware, is that there are very good logistics partners out there, such as Logiqs, and, in terms of software, iFarm’s solutions were already proven. Also, the range of plant growth recipes available via iFarm’s Growtune software was critical to our goal of increasing crop and food diversity.

Mark, YASAI

From our perspective, we were excited to work with both YASAI and Logiqs to create Zurich’s first vertical farm. Both the passion and expertise of the partners were clear from the outset with the potential for a long-lasting and successful relationship. Furthermore, our economic analysis of the region confirmed what a lucrative market Europe is for vertical farming and further cemented our commitment to expanding in the region.

Kirill, iFarm

However, identifying the right partners isn’t solely about finding organisations who can meet your needs or deliver the solutions you need to begin operating.

We’ve been delivering horticultural solutions for 45 years, so we have a lot of experience we can bring to a partnership, but, when it comes to complex innovation, it’s very important to have partners that are open and all focused on the same objective, instead of their own, individual success.

Gert, Logiqs

Creating the vertical farm in Niederhasli, Zurich, is a joint collaboration, with YASAI taking on the management, operations and branding, Logiqs providing automated hardware and iFarm delivering the nutrient solution management system, climate control equipment and the Growtune software platform. While each partner is bringing distinct, critical components to the table, it’s the values and objectives that form the union and facilitate a constructive and collaborative working partnership.

What we really liked about iFarm is its collaborative mindset. That’s how we want to accelerate, vertical farming — with collaboration.

Mark, YASAI

Whether you’re a farmer, retailer, food distributor, investor or entrepreneur, there are partnership opportunities available right now. However, it’s important to think about long-term goals and what success looks like when you’re deciding who to work with. By partnering with people and companies that share your values and ambitions, you can work together cohesively and increase your success.

Why is Vertical Farming Important?

Vertical farms may be a profitable investment, but they offer much more besides revenue and profit. In addition to being a prime investment in Europe, vertical farming can change the way we approach food production and provide better access to food, as well as reducing the environmental impact current production methods have.

At iFarm, the potential to spark worldwide change and benefit society has always been the driving force behind the operations, and we’re pleased to partner with organisations who share these values.

We have the ambition to accelerate access to ‘honest food'. People will learn about this partnership and will start to think about the way we produce foods and the potential vertical farming has to solve some of the acute global issues.

Gert, Logiqs

As we move towards a more circular economy, there’s a greater emphasis on the need to minimise waste and make better use of our resources. In comparison to traditional farming or greenhouses, vertical farming is more closely aligned to these objectives and will, therefore, be critical in shaping the future of food production.

If we want to create real circular food systems, we must think about how to integrate technology and not just build more efficient food factories.

Mark, YASAI

The trend towards sustainable, pesticide-free food production has gained traction in recent years, but it’s accelerated in recent months. As we continue to assess the impact of COVID-19 on the industry and society as a whole, it’s clear that the way we think about food, health and even retail is changing:

People started to rethink their diet habits, their way of life, and consider alternatives to the status quo.

Mark, YASAI

From a commercial perspective, the relative instability of large supply chains has been highlighted by COVID-19, which means businesses are now more wary of relying on complex chains and reluctant to put unnecessary distance between their own operations and their suppliers. As a result, the ability to grow produce in close proximity to retailers and distributors means vertical farms will play a key role in the evolution of the food production industry, in both the short and long-term.

With the potential to improve access to high quality produce, drastically reduce the environmental impact of food production, shorten supply chains and deliver better food diversity, vertical farming can provide solutions to so many of the issues we’re currently facing. From food scarcity in developing countries to volatility within the distribution industry, vertical farms can play a key role in transforming the way we grow, access and think about food.

What’s Next for iFarm, YASAI and Logiqs?

As YASAI’s Zurich vertical farm prepares to open in Niederhasli in autumn 2021, we’re already looking towards the future. We’ll be testing and perfecting our growing methods in Niederhasli, with a view to working together on an ambitious project to create another vertical farm that’s 10 times bigger. With plans already underway, the creation of Zurich’s first vertical farm could be the first step in our shared journey.

Is a Partnership Right for You?

Now you’ve got an insight into the rationale, decision-making and objectives behind our strategic alliance with YASAI and Logiqs, you may be wondering whether a partnership could offer the same growth potential to you.

By working with iFarm and other industry leaders, you can access the resources, services and expertise you need to create your own successful vertical farm. Whether you’re a traditional farmer who wants to incorporate new technology into your operations, a retailer that wants to access locally sourced produce or an investor looking for your next venture, a vertical farm partnership can deliver the practical, financial and sustainable rewards you’re looking for.

To learn more, take a look at how you can benefit from vertical farming:

1. Food, Fruit and Vegetable Distributors

For existing food, fruit and vegetable distributors, partnering with vertical farms and logistics companies offers clear benefits. With an abundance of crops being produced all year-round, distributors can expand their network and substantially increase their profitability.

As traditional farming delivers seasonal growth, distributors may be forced to work with numerous clients in order to trade throughout the year. Inevitably, this means changing distribution routes, switching equipment and altering the network to accommodate different types of produce.

In contrast, the year-round production at vertical farms enables distributors to minimise resource consumption, safeguard demand and use existing routes. As a result, food, fruit and vegetable distributors can maximise their own profitability by partnering with vertical farmers, investors, logistics providers, food retailers and entrepreneurs.

2. Food Retailers

Food retailers can benefit from vertical farm partnerships in a number of ways. For example, a food retailer can source fresh produce from their partners and increase the diversity of their stock. This enables retailers to enhance the quality and the flavour of their fresh produce, as well as meeting consumer demand for pesticide-free, locally-sourced food.

Critically, partnering with other organisations or investors to create a vertical farm also gives retailers the chance to shorten their supply chains. As we’ve seen over the past year, complex or lengthy supply chains are precarious, particularly when stock has a short lifespan, as is the case with fruits and vegetables. Supply chain delays and disruptions are now common, which leads to increased waste, additional expenditure and fewer products on the shelves.

As part of a vertical farm partnership, however, food retailers can produce their own stock, avoid the risk associated with lengthy supply chains and cater to a growing market. By doing so, retailers can reduce their expenditure, safeguard their supply chains and increase their profitability.

3. Investors

Investors, financial partners and private equity funds can capitalise on the evolving agro-tech industry by partnering with expanding vertical farms. As we can see with the YASAI vertical farm in Niederhasli, the initial production site is only a glimpse of what’s to come. With proven success at smaller sites, investors can get in at the ground level to fund expansion and reap the rewards.

The EU has already confirmed its plans to drastically reduce the use of pesticides in food production, with a 50% reduction estimated by 2030. This, combined with consumer demand for pesticide-free food, highlights a growing market. Furthermore, it’s a market that vertical farms can and will satisfy.

While the increasing market for pesticide-free produce is one reason why vertical farms present such a lucrative investment, there are many others. The relatively low start-up costs, in conjunction with low running costs, makes vertical farms a viable option for all types of investors.

Furthermore, many investors are actively seeking out ‘green investments'. From hedge funds to pension funds, an increasing number of people and companies are moving away from investing in products, firms or industries which are known to have a negative impact on the environment and searching for an alternative. Not only does a vertical farm partnership meet the criteria of a green investment and enhance the ‘green credentials' for all parties, it can also generate significant and sizable returns.

4. Distributors and Resellers of Agro-Technologies

For existing distributors and resellers of agro-technologies, the chance to form a partnership with vertical farmers, investors, retailers and entrepreneurs is undoubtedly compelling.

Instead of simply selling your tech innovations to farmers and companies, you’ll have the chance to create long-term professional relationships with people and organisations from your target audience. By doing so, you can increase customer lifecycle value and optimise your profitability.

However, the increased revenue isn’t the only benefit associated with a partnership. As we have seen with Logiqs' role within the iFarm and YASAI partnership, the chance to increase brand awareness within the industry and establish your firm as a market leader is valuable in itself.

As your role in ground-breaking partnerships becomes more widely-known, demand for your brand and your technologies is increased and further growth potential develops. From ad hoc sales to additional partnerships, distributors and resellers of agro-technologies can significantly increase their reach when they form partnerships with other people and organisations in the industry.

Additionally, being part of a partnership enables you to work closely with farmers and to gain an in-depth insight into the type of technology they require. In doing so, you will consistently enhance and evolve your technologies to deliver more efficient and more effective solutions. For agro-tech developers, the chance to shape the future of the industry makes a vertical farm partnership an opportunity that simply shouldn’t be missed.

To learn more or to explore upcoming partnership opportunities, contact iFarm today at +358 504 801 487 or email us at sales@ifarm.fi

Applying Automated Warehouse Systems To Indoor Farming

“History is written in circles as we observe similar drive for automation in indoor farming, as we saw years ago in the intralogistics sector. There are yet few important differences,” says Timo Landener, product innovator at Swisslog. 

Swisslog, with the vision to shape the future of intralogistics, not only develops warehouse automation and software solutions to reduce costs and introduce flexibility to warehouse-based operations but also looks into innovative future-proof approaches. In March 2021, Swisslog announced its foray into the vertical farming market. While Swisslog has not specifically designed systems for vertical farming, its vast portfolio of automation solutions can be adapted to vertical farms, whether pre-existing or purpose-built.

Timo Landener

“At Swisslog, we don’t have standard solutions in place for vertical farms yet. But due to our long-lasting expertise both in the food industry and in the distribution of fresh products to the point of sale, we understand the supply chain processes and linked to that shelf life considerations. Moreover, our portfolio can be easily adapted to indoor farming since the payload is fairly light, the throughput is not critical and the automation operations demand low power compared to the needs of the intralogistics automation,” explains Timo. “Nevertheless, we already learned, that we can't just adopt the same requirements, because plants are living organisms. And we have to respect that.”

Although unable to reveal their clients, Swisslog has reportedly demonstrated its technologies in the vertical farming industry with success to allow growers to reduce operational costs and increase scalability. Examples of innovative systems applicable to vertical farming include the PowerStore high-density storage system, the AGV based good-to-person order fulfillment solution CarryPick, the Tornado mini-load crane and the Vectura stacker crane.

When does automation become economically feasible?
Automation can be applied to multiple processes in an indoor farm including seeding, harvesting, packaging, tray manipulation, etc. However, Timo explains that automation is capital-intensive and best suited for large-scale indoor farms. A higher production level introduces more opportunities to increase operational efficiency and reduce labor requirements.

“Even Amazon began in a small space with little automation. Then, they reached a level where automation made sense. In the vertical farming industry, we need to discuss with clients where the tipping point is for needing automation,” says Timo.

To determine which automation solutions are right for the grower, Swisslog’s automation experts work directly with clients to identify opportunities for increased operational efficiency and customize solutions according to the farm’s architecture. Additionally, the close relation with KUKA as the parental company allows collaboration opportunities to automate and incorporate the sub-processes in an Indoor Farm to a more turnkey solution.

Harvest-on-demand 
Timo explains that despite the relatively short distance between urban indoor farms and retailers, a major challenge to indoor farming is the logistics of transporting farm-grown products to retailers while maintaining crop quality.

“After the plants have grown in a perfect environment, they are cut and immediately begin to lose quality. The current challenge is to speed up the process of getting the products to the retailer. Pursuing the innovative approach of harvesting-on-demand, we can make sure that the end customer receives fresh and rich nutrition vegetables. With a palette of automated solutions this is finally possible,” says Timo.

Swisslog’s ties with global retailers started long ago as the Swiss Company delivered solutions for huge automated projects (distribution centers) as well as smaller, more local applications, known as Micro-Fulfillment Centers. Harvesting-on-demand differs from mainstream distribution models by supplying retailers with living plants, which can continue growing until they are purchased.

This process can be carried out in retailers’ “back shops” and would support additionally retailers to fulfill three major sales channels: in-store sales, home delivery and BOPIS (buy online, pick up in-store). Swisslog is certain that we are at the edge of a revolution in food the supply chain: There will be the need for Indoor Farms at the point of sales: a “fresh food on the demand-supply grid”. We see automation as a means for leveraging the indoor farms and help them deliver efficiency that will lower the entry threshold for further investments.

Retailers are a fundamental part of this revolution. “Many indoor farms are currently selling to retailers. Due to the fact, that the retailers sell the crops, they determine how the supply chain will look like. Thus, the power of re-designing the process of the supply chain and ensuring consistency in the circular economy lies in their hands. As for today, the complexity and ramifications of the matter inspire us to join forces with retailers and find out how to react in the best way to changing needs of the customers and the industry. We are on the verge of something new and powerful. Swisslog, an intralogistics automation leader, together with retailers and farming experts, we can deliver a great added value for consumers” explains Timo.

For more information:
Timo Landener, product innovator
Swisslog
timo.landener@swisslog.com
www.swisslog.com  

Publication date: Thu 3 Jun 2021
Author: Rebekka Boekhout
© VerticalFarmDaily.com

Swiss To Vote On Whether To Become First European Nation To Ban Synthetic Pesticides

John Revill

June 8, 2021

Summary

• Switzerland holds two votes on June 13

• One referendum seeks to outlaw synthetic pesticides

• Other vote aims to improve Switzerland's drinking water

• Opinion polls show both are likely to be close

ZURICH, June 7 (Reuters) - Switzerland could become the first European country to ban artificial pesticides in a June 13 referendum which backers of the initiative hope will trigger similar prohibitions elsewhere.

Globally, only Bhutan has a complete ban on synthetic pesticides, according to supporters aiming to outlaw the use of products made by agro-chemical giants such as Switzerland's Syngenta and Germany's Bayer (BAYGn.DE) and BASF (BASFn.DE).

Supporters of the ban say the artificial products cause serious health problems and reduce biodiversity. Manufacturers say their pesticides are rigorously tested and regulated, can be used safely and crop yields would slump without them.

Another initiative to be voted on the same day aims to improve the quality of Switzerland's drinking water and food by stopping direct subsidies to farmers who use artificial pesticides and antibiotics in livestock.

Switzerland has been starkly divided by an unusually bitter debate over the initiatives and the votes look set to be close. A recent Tamedia poll showed 48% of voters favoured the drinking water initiative and 49% supported the pesticide ban.

If adopted, the proposals give farmers up to 10 years to make the transition, which would allow Switzerland to become a pioneer in organic food as well as an example to the rest of the world, Swiss wine maker Roland Lenz said.

"Clean water, one of the foundations of life, is endangered," said Lenz, a 51-year-old organic farmer, whose vineyard is surrounded by farmers opposing the initiative.

Syngenta, which is headquartered in Switzerland and owned by China National Chemical Corporation, opposes both initiatives, saying a ban would reduce agricultural yields by up to 40%.

"The consequences of not using them are clear: fewer regional products, higher prices, and more imports. This is not in the interest of consumers, nor is it in the interest of the environment," a Syngenta spokesman said.

A poster stands in front of a field before a vote on agrarian initiatives to curb the use of pesticides, near Ellikon an der Thur, Switzerland. May 27, 2021. Picture taken May 27, 2021. REUTERS/Arnd Wiegmann/File photo

LIFE UNDER SIEGE

The clean water initiative also wants farmers to stop using imported animal feed, to restrict the numbers of cows, pigs and chickens in Switzerland along with the manure they produce that can pollute drinking water.

"People have been sold a romantic image of farming in Switzerland, which is far removed from reality," said Pascal Scheiwiller, a backer of the clean water campaign, which estimates 1 million Swiss people drink contaminated water.

The Swiss Farmers Union said many of its members feel their way of life is under siege.

"A lot of people in cities think if they have two tomatoes growing on the balcony of their apartment they understand farming," said Martin Haab, president of the Zurich Farmers Association.

"I look back 200 years ago when we couldn't protect our plants and animals, and we had hunger in Switzerland and all over Europe," said Haab.

Martin's son Dominic, who runs a dairy farm outside Zurich, said the consequences for the rural economy would be brutal, with local businesses also being hit by a fall in animal numbers to comply with the fodder restrictions.

Wine maker Lenz, however, said to continue using pesticides was "sheer lunacy", especially when it was possible to use methods such as growing fruit with thicker skins to make them fungus resistant.

“With a ‘Yes’ vote on both initiatives, we will finally move from the chemical age back to the organic age,” he said.

Lead photo: A sign to vote "no" is pictured ahead of a Swiss vote on June 13 on two popular initiatives to curb the use of pesticides in agriculture, in Penthaz, Switzerland, May 31, 2021. REUTERS/Denis Balibouse/File photo

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Reporting by John Revill; Editing by David Clarke