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THAILAND: "We Are Lacking Research Here To Backup The Benefits of Indoor Growing"
Thai startup Wangree Fresh has been in the market for over two years now. Krisana Tamvimol, Founder and CEO has done research on more than 200 local vegetables
Thai startup Wangree Fresh has been in the market for over two years now. Krisana Tamvimol, Founder and CEO has done research on more than 200 local vegetables. Eventually, he decided to grow four different vegetables in his Wangree Fresh farm: kale, spinach, rockets and swiss chard. Wangree Fresh has had no problems with incoming orders during the pandemic.
He says: “We’ve had an increase in orders as people wanted more clean and home-delivered vegetables, in the comfort of their own house. Having reached our capacity, we haven’t been able to grow any further beyond that. Now with the pandemic, our company growth is put on hold as we cannot get into new investments and expand our business to meet the growing demand. Our supplies are still constant and we will keep producing at maximum capacity.”
Founder and CEO, Krisana Tamvimol
Under construction
The Siam Pun Sun factory, an 1800 m2 farm, will supply 50 tons of vegetables per month. The construction is about 80% completed and will be fully completed at the end of this year. The new farm is looking into giving educational courses as well. Wangree Fresh will provide educational courses on the new property as well. “I want to share my knowledge of vertical farming and my researches. So, I would love to train more people and teach them more about vertical farming so they can become engineers, scientists, or other”, Tamvimol adds.
The farm's end result
It is no coincidence that Tamvimol has established his new farm there. The farm will be located nearby the Wat Pra Baht Nam Phu temple, which is 120km north of Bangkok. The temple is run by monks who are treating people with medical needs and therefore many underprivileged people are relying on their help.
Tamvimol sees the new farm as a corporate social responsibility project because, once the construction has been completed and the net revenue has come in, all revenue will go directly to the temple. “This will help with the operations of the temple and its maintenance, so the temple won’t be in need of donors anymore. Essentially, the temple will return Siam Pun Suk’s fresh produce to its formal donors as a sign of gratitude.”
The 1800 m2 Siam Pun Sun factory
Supermarkets as a direct competitor
The company sells four different kinds of vegetables, namely kale, spinach, rockets and swiss chard. Simply because we have a pretty good calling price for them. Normally, vegetables of the same species are much more expensive in supermarkets than to what we offer. Our quality is even better. “We are competing with supermarkets in terms of price and quality. We are still researching and looking into strawberries and other fruits, but for now we haven’t gotten that far yet in terms of production”, Tamvimol says. Currently, Wangree Fresh consists of one farm and sells its products under two brands: Wangree Health, the organic wing and Wangree Fresh, using new technologies the company has been reversing over the years.
The farm currently produces at maximum capacity
Although supermarkets have been in the market for a longer time, they can’t produce in the high volume and quality like Wangree Fresh can. He continues: “Quality-wise, we are the best producers of these kinds of vegetables in Thailand. We haven’t been able to address demand in supermarkets yet”, Tamvimol confirms. He says that high-quality and clean food is mostly preferred in urban areas. However, supermarkets in the sub-urban areas do not sell this kind of high-value vegetables.
“We haven’t been able to address the demand in supermarkets so far. Simply, because we have a subscription model and we haven’t been able to address the demand of our subscribers just yet”, Tamvimol says. Since February, the company has gone from 1000 to 2000 subscriptions. Previously, we used to have 1000 subscribers and home-delivered vegetables to them on-time.”
Because the subscriptions doubled during the pandemic, the home-delivery time became longer as well. “We were at maximum capacity already, but we wanted to keep making our customers happy. A guarantee to deliver the fresh produce within 24h e.g., to maintain the freshness of the vegetables”, he adds.
Franchise model
In the future, Wangree Fresh might consider having a franchise. “As in, people signing up to use our system. However, at this point, I have my hands dirty on researching the entire growing system. There might come a franchise model where people can sign up for the consultation of our design and construction of the system. The system needs fine tuning all the time, so it’s not easy to sell it off as one package”, Tamvimol states.
Vertical farming system
“There are two main difficulties in vertical farming here. One is the adoption of new technologies. The Thai people and mostly farmers are not bold enough to try new things. They use their own systems that have been used for over decades” Tamvimol says. It’s hard for Tamvimol to get them involved and for them to try the new systems. “The second thing is that there aren’t many vertical farming systems available in Thailand. Next to that, most of the academic works are conducted by foreign researchers and we are lacking researches here to back up the benefits of indoor growing”, he says.
An impression of Tamvimol's growing system
Tamvimol has done a lot of research on technology, hardware and factors of finetuning his system. He grew up in Chiang Mai, where the main business is agriculture, and used to work in the computer hardware business. After an academic tour to Japan, he became involved with vertical farming. That’s when he decided to combine his experience in digital technology and agriculture. After spending the past few years on research: finding the right formula to grow any kind of vegetable and how many vegetables he needs to grow to generate a good return on investments.
For more information:
Wangree Fresh
Krisana Tamvimol, CEO
krisana@wangreefresh.com
www.wangreefresh.com
Publication date: Mon 24 Aug 2020
Author: Rebekka Boekhout
© HortiDaily.com
A Brief Insight Into Thailand’s Vertical Farming Sector
"There’s quite a big difference between Thailand and other Asian countries in terms of the advancements in vertical farming technology and business”, Siriwat Sakhonwasee says
by Dr. Siriwat Sakhonwasee
"There’s quite a big difference between Thailand and other Asian countries in terms of the advancements in vertical farming technology and business”, Siriwat Sakhonwasee says. After obtaining his Ph.D. on plant biology from the University of California Davis in 2009, Sakhonwasee is now a lecturer and researcher in the faculty of agricultural production at Maejo University, Chiang Mai, Thailand.
Sakhonwasee's university lab research on seed production of petunia under LED lights
Increase of interest
“When I started doing research on vertical farming about 10 years ago, people in Thailand thought that I was pursuing a useless hobby. However, in other Asian countries such as Japan, Korea and Taiwan, vertical farming was already a serious business concept. Today, vertical farming is becoming a new trend where a number of companies are interested to place their bet on. The concept of vertical farming in Thailand receives a lot of influence from Japanese technology. This is why most people use the word “Plant factory”, a jargon, originated from Japan to describe vertical farming.” Last month, Thailand’s Board of Investment (BOI) announced that it officially will support investments on Plant Factories by reducing the tax burden on businesses involved with this technology. Sakhonwasee continues: “I see this as a good sign for vertical farming in Thailand as the same thing happened in Japan a decade ago.
More demandIn terms of Thailand, now there are many more research projects regarding vertical farming than five years ago. “I sometimes have to review research proposals for funding agencies and I can easily tell that nowadays research projects, involving vertical farming concepts, are more frequently submitted”, Sakhonwasee notes. This means that researchers in Thailand will have more chances to explore the science behind the concept of vertical farming. He continues: “Hopefully, this will lead to the development of innovative techniques that are suitable for the country. From a global perspective, people are integrating much more sophisticated technology into vertical farming, such as IoT and AI. The concept is not just growing a plant on the shelves using artificial light anymore. It is about collecting the data and constantly improving the vertical farming system.”
Dr. Siriwat Sakhonwasee
“One thing I see as a clear improvement is the business model of vertical farming. More diverse business models are applied such as a decentralized model by Infarm, harvest on demand by Farmers Cut.” For Thailand, 3 prominent vertical farming startup companies also use a different business model to sell their produce, namely, Wangree Fresh which uses a subscription model to sell their vegetables, NoBitter which is using online channels to engage with its customers and LED Farm which uses a retail hypermarket channel to sell its produce through.
Current industry struggles“I think that making people understand the value of a vertical farming product, is a common problem for vertical farming worldwide. Recently, Irvin Fain founder of Bowery used the word “post-organic” to explain the value of their fresh produce. This is such a good way to describe produce from vertical farming that is pesticide-free and very clean so customers do not need to wash before eat.” Sakhonwasee adds: “My colleague recently spoke with Mr. Chingchai Konthansakul founder of LED Farm of Thailand. He has an interesting way of thinking regarding vertical farming produce. He explained that he will never compare vegetables from his vertical farm with traditional farming fresh produce. Instead, he shows off his fresh produce as a novel product. This helped LED Farm to design a proper marketing strategy for consumers who were always skeptical about the safety of fresh produce.”
Mr. Chingchai Konthansakul, founder of LED Farm
Future vision
“In Thailand, I believe that vertical farming will never completely replace traditional farming, in terms of feeding the population. We are blessed with great natural resources that are suitable for almost every aspect of agriculture. But, vertical farming might play a big role in the production of premium produce for high-end consumers. However, to achieve this concept a certification process must be established, like organic produce. I think we will see more diversity in the application of vertical farming systems such as speed breeding and production of medicinal substances from herbs or genetically modified plants.
In other Asian countries, vertical farming will probably play a more prominent role in terms of food production. For example, a small country like Singapore just set a 30 by 30 goal last year. This was done to support the local food production to meet 30% in demand of the Singaporean population by the year 2030. In this case, the cultivation area is a big issue and vertical farming is expected to play a significant role in Singaporean food production. Other examples are countries in the Middle East where the majority of land is desert and not arable. Again, vertical farming can overcome this limitation and could provide food security for these countries.”
For more information:
Dr. Siriwat Sakhonwasee, assistant professor
tongscpl@yahoo.com
Publication date: Wed 12 Aug 2020
Author: Rebekka Boekhout
© HortiDaily.com