Forget Politics, Danny Ayalon Wants to Effect Change on The Ground

Having transitioned from politics to agriculture, Danny Ayalon shares how vertical farming, which provides fresh fruits and vegetables all year round, and lab-grown meat can rehabilitate the environment and dramatically reduce household expenditures.

Image from: Yehoshua Yosef

The coronavirus pandemic has drawn attention to humankind's carbon footprint. More than ever before we ask ourselves, how can we become more sustainable? Can we prevent pollution? How can we minimize waste? What about lowering emission levels? Will there be enough food for everyone in the future?

Danny Ayalon, a former ambassador and foreign policy adviser to three prime ministers-turned entrepreneur,  believes that the answer to many of the world's problems lies in modern agriculture. 

Having transitioned from politics to agriculture, he works with Future Crops, an Amsterdam-based company focused on vertical farming – the practice of growing crops in vertically stacked layers that often incorporates controlled-environment agriculture, which aims to optimize plant growth – and MeaTech, a company that creates lab-grown meat.

"Ever since the coronavirus came into our lives, we realized that man is not in charge of the universe," Ayalon told Israel Hayom. 

"Our control over the forces of nature, of Earth, of our future is more limited than we had thought. And when we are no longer in charge of the world, only three things guarantee our lives here: food, water, and energy security. Food, water, and energy are three resources that can be depleted and therefore literally cast a cloud on our world. 

"Experts have come to a conclusion that one of the most important fields to focus on is agriculture, and indeed we are currently witnessing the most significant agricultural revolution ever since the first agricultural revolution that took place about 10,00 years ago."

Q: Back then, in the first agricultural revolution, there was a need for a lot of land. 

"But today we have technology. The name of the game is to reach maximum output with minimum input in the smallest space possible. This is the holy grail of the new revolution. And that is how technology enters the picture. To grow fruits, vegetables and spices today requires lots of space. The technology we developed at Future Crops allows us to minimize the space, increase production and redefine the food supply chain."

Q: How exactly? 

"We have a nine-story hangar in Amsterdam to grow crops like coriander, basil, dill, and parsley. It has LED lights, and each plant gets exactly the amount of light it needs. We are the plant psychologists, [we] listen to all its needs and do everything to make sure the plant grows in the most optimal way. 

Image from: Future Crops

"If it lacks something, it immediately receives water. Everything is done without a human's touch. We use algorithms and big data in collaboration with world-class researchers from the Weizmann Institute. It is essentially the application of vertical farming, growing various crops in vertically stacked layers,  in enclosed structures, on soil platforms. 

"For example, if it takes a month to grow lettuce in an open field, in a vertical farm, it takes two weeks, half that time. There's also a significant reduction in water consumption, and no pesticides or sprays are used at all. Also, the produce is available in all seasons; it does not depend on the temperature. Whoever likes mangos and strawberries, for example, will be able to enjoy them all year round."

Q: So if produce is grown faster and within a smaller space, is it going to cost less?

"The prices might be a bit higher today because this technology and the various infrastructures require an economic return of the initial investment in them. With time, the process will become more efficient, and the investments will be repaid, so in the end, the prices that the consumer will need to pay will be lower than today. 

"Let me give you a simple example. Do you know how much a kilogram [2.2 pounds] of basil costs in Europe today? €90 ($108). In Israel, the price is €20 ($24). In the [United Arab] Emirates, where almost everything connected to food is imported – the prices go accordingly as well. Once you have more innovative vertical farms, consumers will pay much less."

Q: Should we expect vertical farm skyscrapers to pop up all over? 

"I'm not sure that we will need skyscrapers, as with time the facilities will become smaller. Imagine that in every supermarket there will be a vertical produce stand with all the vegetables and spices, and later also fruits which you pick on the spot, without the need to move the produce from place to place. That is why vertical farming is also called urban farming, meaning there is no need for fields; you can grow [produce] on the rooftop. No resource limits you."

Q: What about the taste? 

"Ours is a fresher and tastier product. I ought to give credit to the Weizmann Institute here. The challenge for them wasn't the quality of the vitamins but the taste, and they managed to achieve a great taste. In the Netherlands, Future Crops already sells parsley, and it tastes outstanding."

Q: Regular parsley lasts for about two weeks in the fridge. What about Future Crops parsley? 

"Our parsley has a two-month shelf life, and it does not oxidize within a week or two."

Q: If every country will be self-reliant in terms of agriculture, do you think it will affect relations between countries? 

"Economies will become self-sufficient eventually, which will ensure security with far fewer conflicts. There is less and less water in the Middle East, which might someday lead to tensions. We hope technology will reduce the tensions between countries, and territory will be less critical. Our world faces crucial challenges. Food and water security have the potential to either divide or bring us together and ensure our long-term existence. 

"By the way, in every developed Western country, like the United States, Australia, and also in Europe, issues of food security, climate, and greenhouse emissions are on the top of the political agenda. We are not talking about it [in Israel,] as security and foreign affairs take the central stage, but Israel does have a lot to offer here."

Q: Do we have the potential to become the Silicon Valley of advanced agriculture? 

"Israel takes tremendous pride in its actions that help save the world. Will we become the Silicon Valley of agriculture? There is no doubt about it. We can already see foreign investors who come here to look for opportunities, including my business partner Lior Maimon, co-founder and CEO of Silver Road Capital, and Steven Levin, one of the leaders of the US food industry. Silver Road Capital is a holdings and financial advisory firm with a broad portfolio of high-tech companies, as well as agricultural and food technologies, and represents international companies and funds in investments in Israel and the world. 

"Future Crops's goal is to raise 35 million shekels on the Israeli stock exchange to invest in enlarging the existing facilities and [set up] other production lines and facilities in Europe and other continents. We cooperate with the Albert Heijn supermarket chain [in the Netherlands] and a leading food chain in France."

Q: Vertical farming is estimated at $3 billion. Google and Amazon have invested hundreds of millions in the field as well. What is their goal? 

"A simple answer would be profit. A longer answer is that they [large corporations] understand that food has the highest demand. People cannot live without food and water, and Google and Amazon understand that potential."

Q: US President Joe Biden took office with the largest team of climate experts ever. That ought to give the field momentum. 

"Green energy and vertical farming will get a considerable boost. Climate change and green energy are well-rooted in the Democratic Party's ideology. 

"It is also possible that large companies entered the agriculture fields precisely because of the Biden administration; they are worried about their future. They are afraid of a certain dismantling, so focusing on secondary fields is part of a security scenario for them."

Q: Biden also wants to address greenhouse emissions, which are the result of the food production industry, mainly meat. Are Amazon and Google's food counterparts - McDonald's and Burger King - looking for meat substitutes?

"Firstly, cultured [lab-grown] meat does not require grazing land, cows do not need to be fed, and so much land can instead be turned into forests that support the environment. This is an optimistic industry that leaves us with a better world. 

"As for the meat alternatives market, there are two major companies in the US that produce plant-based protein, Beyond Meat, and Impossible Foods. 

"Impossible's burgers are already at Burger King, McDonald's has partnered up with Beyond Meat, and last November, it announced that it would create its own plant-based burger. 

"The problem is that pea protein [used in plant-based burgers,] does not have all the amino acids that animal protein contains. Also, they need to add additives to supplement for taste and smell.

"At MeaTech, where I'm a director, we are on our way to producing animal meat, cultured meat, real stakes: we take a cow's own stem cell from which meat can be produced in almost unlimited quantities. We also use 3D digital printing technology. And we also created a thin layer of meat, carpaccio. Needless to say, no cow was harmed in the process."

Image from: MeaTech

Q: Why do you use 3D printers? 

"Because there is no need for a human being's involvement. It is relevant now during the coronavirus pandemic when the food supply chain is disrupted. With such printers, your production can continue without delays, whenever you want. 

Also, it is theoretically possible to provide food for space flights. Astronauts who go out into space will not have to take food with them; rather, they will be able to produce it on the spot.

"People understand that crises like the coronavirus can disrupt the supply chain and are looking for alternatives. A 3D printer allows restaurants, supermarkets, and butcher shops to have meat without relying on the supply chain."

Q: The death rate from obesity is higher than the death rate from hunger. How will cultured meat affect these statistics? 

"It is possible to create meat with much less fat and more protein in each portion and add various nutrients in the future to strengthen the immune system and prevent disease. This, of course, requires a lot of research and approvals. Just like there's talk about customized medicine, so it will be possible to produce food that suits a person's genetic structure and body in the most optimal way."

Q: Will the cost of this meat also be optimal? 

"They will cost more in the beginning compared to regular meat because there are initial costs that have to be repaid. When it becomes a mass production, prices will drop over time."

Q: With your vast experience in politics, what do you think of Israeli politics these days? Do you ever consider a political comeback? 

"No election campaign goes by without someone making me an offer [to return to politics] but I'm not interested. Unfortunately, the Israeli government, and all governments in the Western world, have not been able to run their countries properly in recent years.

"For example, more of the government's national taks are transitioning to the private market or the third sector. We see that associations [are the ones] who take care of the needy, establish settlements in the Negev and in the Galilee, bring immigrants to Israel and provide Israelis with information. All these things should be done by the government.

"The Israeli government lacks vision, ideologies, every matter is personal and is charged with negative sentiments. If I do return one day, it will only happen after we change the government system which will take its power from small [political] parties.

"In my opinion, we need to transition to a regional choice, by district. This will result in higher quality politicians. How so? Because whoever wants to be elected will need to run and convince the people who live in his area and district, and they are the ones who know his activities best. Also, closed primaries should be avoided because they make all kinds of deals possible. That needs to change."

Food Trends Suppliers Should Know to Stay Ahead of the Curve in 2021

From insects and pumpkin-seed oil to Brad Pitt-branded wine and transparent packaging, these are the food trends expected to take the U.S. by storm in 2021.

What Will People Be Eating in 2021?

It’s predicted that Americans will be consuming a lot more of the following foods and drinks in 2021: 

• Insects — According to Forbes, 2.5 billion people around the world eat cooked or raw insects regularly. Many in the U.S. still consider the concept of insect consumption a little grotesque, but attitudes are expected to shift in the coming months with several startups, including Exo cricket protein bars in New York, securing significant funding from investors.

• Boxed wine — It’s hard to believe that boxes of wine were considered classy before they were tacky. But in 2021, consumer appreciation for boxed wine is predicted to return. It’s easier to store, cheaper to transport, generates half the carbon dioxide emissions, and has a longer shelf life than its glass-bottled counterparts.

• Alternative oils — Whole Foods Market predicts that consumers will become more experimental in their use of oil, choosing walnut, pumpkin seed, and sunflower seed oil over traditional options like olive oil.

• Celebrity alcohol — There was an arguably better time when everyone knew someone who wore the Britney Spears perfume. But in 2021, it’s all about Brad Pitt’s rosé and Cara Delevingne’s prosecco, as alcohol brands and vineyards look to drive revenue through partnering with big-name celebrities.

• Kombucha — Kombucha is a fermented, lightly effervescent, sweetened black or green tea drink that first hit the mainstream in 2018. Since then, its health benefits have been lauded, and the drink has been growing in popularity. It’s gluten-free and can be filled with live probiotic cultures.

• Sweet and Umami — The Green Seed Group suggests that the big flavor combination of 2021 will be umami and sweet. Think rice infused with fish sauce caramel and nori and pork floss.

How Will People Be Eating in 2021?

It’s not just what people eat and drink that will change in 2021, but the entire culture surrounding it.  

COVID-19 has contributed to a rise in passionate amateur chefs. With so many people spending much of 2020 stuck at home with extra time on their hands, cooking has become something of an outlet. Indeed, 74% of respondents to a Sensodyne/OnePoll survey said they used cooking as a coping mechanism to manage the stress of being at home, 44% have learned a new recipe, and 32% have taken online cooking classes.

Reduced access to on-the-go, takeout food has seen breakfast truly become the most important meal of the day, and the demand for interesting and diverse breakfast recipes will increase into 2021. Cooking enthusiasts are also investing more time and effort in making baby food and looking for creative takes on staple meals.

Coupled with this newfound enthusiasm for cooking is, unsurprisingly, a newfound enthusiasm for health and wellbeing. Forbes reports that 54% of American consumers care more about the healthfulness of their food and beverage choices in 2020 than they did in 2010. This will see demand for superfoods, probiotics, and supplements grow in 2021, with many food suppliers already incorporating functional ingredients like vitamin C which promise to support the immune system. In a June 2020 survey conducted by GlobalData, 23% of global consumers confessed to stockpiling vitamins and supplements.

COVID-19 has certainly driven Americans to evaluate the relationship they have with food and drink but, fortunately, extreme diets and food fads are expected to lose popularity in 2021. Instead, people are expected to take a healthier and more sustainable approach to healthy living by embracing balance and moderation.

How Will Food and Drink Be Packaged in 2021?

Before COVID-19, food and drink packaging was headed in a very sustainable direction, with consumers increasingly concerned about excess waste and ocean-bound plastics.

But the pandemic has led to increased concerns about biosafety, particularly surrounding the packaging of food and drink. In recent years, many retailers have committed to eliminating unnecessary packaging, but some of these efforts will likely be undone in 2021 due to health and safety concerns and retailers’ desire to reassure their customers. Starbucks, for example, banned the use of reusable cups at the beginning of the coronavirus outbreak.

Despite these setbacks, developments in sustainable and environmentally friendly packaging will continue in 2021.

Other trends will include an increase in transparent windows within food packaging that allow consumers to assess product quality, and QR codes, which can verify product and ingredient claims.

How Will Attitudes to Sustainable Living Change in 2021?

More than two-thirds of consumers want to ensure their everyday actions have a positive impact on the environment. This includes an interest in sustainably produced items, and a shift towards the consumption of plant-based proteins: in 2020, 28% of Americans ate more proteins from plant sources than they did in 2019. Another sustainability trend will see food suppliers up-cycling underused ingredients in a bid to reduce food waste.

Although the year 2021 won’t include a country-wide shift to veganism, retailers can expect increased demand for plant-based food as consumers commit to a more balanced diet and look to reduce their meat and dairy intake.

Image Credit: Rido / Shutterstock.com

Laura Ross Dec 15, 2020

AppHarvest’s Mega-Indoor Farm Offers Economic Alternative To Coal Mining For Appalachia

Inside AppHarvest's 60 acre state-of-the art indoor farm in Morehead, KY.

In the first year of business, Jonathan Webb and his growing team at AppHarvest are riding high on what he calls the “third wave” of sustainable development: high-tech agriculture, following the waves of solar energy and electric vehicles. Since launching the concept in 2017, Webb and AppHarvest have raised more than $150 million in funding while building and opening one of the largest indoor farms in the world on more than 60 acres near the Central Appalachian town of Morehead, Kentucky.

For Webb, who grew up in the area and has a background in solar energy and other large-scale sustainable projects, AppHarvest is both a homecoming and a high-profile, purpose-driven venture that addresses the need for additional production to feed a growing population and reduce imported produce. 

Webb’s vision for AppHarvest was inspired in part by a National Geographic article on sustainable farming in the Netherlands, where indoor growing is part of a national agriculture network that relies on irrigation canals and other innovations. He traveled across the Atlantic Ocean to see the farmers in action, then decided it was a venture he wanted to pursue — in his home state of Kentucky, where the coal industry is in decline and unemployment levels are on the rise. 

“Seeing that the world needs 50% to 70% more food by 2050, plus seeing that we’ve shifted most of our production for fruits and vegetables down to Mexico — produce imports were tripled in the last 10 to 15 years,” he says. “I would go to a grocery store, pick up a tomato, and it could be hard, discolored. That’s because it’s been sitting for two weeks on a semi truck, being bred for transportation. So first it was seeing the problem, then asking, ‘How do we solve the problem?’”

As part of my research on purpose-driven businesses and stakeholder capitalism, I recently talked with Webb about AppHarvest’s whirlwind initial year in business, successful investor fundraise, plans to go public, and B Corp Certification.

Good for Business, Good for Community

Jonathan Webb, founder and CEO of AppHarvest

“Where we’re doing what we’re doing is incredibly important. One of our biggest competitive advantages, frankly, is doing it here,” he says. “Some of the hardest-working men and women are the people in this region that power the coal mines, and all we’re trying to do is tap into that and harness that passion. It’s good for our business, but it's good for communities.”

The location has been central to AppHarvest’s benefit in another way, Webb says, as local enthusiasm for the project enabled swift construction that likely would’ve been a challenge in some other regions.

“It's all about economies of scale. We have to build a really big facility to get our costs on materials down so that we can compete with products that are being imported into the country from Mexico,” he says. “We built one of the largest facilities in about a year, so speed and scale are definitely advantages for the company, and a lot of that’s possible based on where we’re operating here in this region.”

While the Bluegrass State has been a good home for AppHarvest, Webb wants the business to be a resource for nearby communities and a beneficial workplace for residents.   

“A fundamental part of the way we’re building and growing this company is that every entry-level employee gets full health care, full benefits, living wage, paid time off. So we’re not just creating jobs, we’re creating a lifestyle for your career path,” he says. “We want to see people with high school degrees in this region grow with the company and be assistant growers and head growers three, four years from now. I know this region, and I know what people can do here. Those are the success stories that I look forward to having happen.”

Creating Positive Stakeholder Impact

Producing needed food and building a stronger workforce aren’t the only goals at AppHarvest; Webb says growing produce sustainably, with minimal impact on the environment, also is paramount. 

“We’re land constrained in the world, and water constrained. And we have to grow a lot more food and use fewer resources,” he says. “It’s simple in theory; it’s complex in scale. Just the fact that the place is so big is what makes this challenging. But we’re collecting rainwater on the roof and using it directly on the root of the plants. We’re growing hydroponically, and as a result we can use 90% less water than open field agriculture.

“The way we treat water and handle water and how we use rainwater efficiently is the really biggest driver of resiliency long term for us.” 

In building a business to have a positive impact on workers, community, and environment, Webb also created a company that is a natural fit for the B Corporation community made up of businesses that achieve a certification based on how well they incorporate all stakeholders into their policies and practices. 

“The impact side of this is incredibly important. We didn’t chase certifications,” he says. “We just did the right things: We’re paying a living wage, we're offering health care. It’s the right way to do business. And as a result, we get a huge ROI on our dollar.”

Thanks to its bottom-line success and future promise, AppHarvest has found favor with investors, including Martha Stewart and venture capitalists; and is part of a growing cohort of businesses with a social purpose that are finding traction in the public markets. The company announced in September that it’s going public through a combination with special purpose acquisition company Novus Capital Corp. (Nasdaq: NOVS).

“Why are we going public now? Because full transparency in agriculture is desperately needed,” Webb says. “We want the people who buy our fruits and vegetables to also have the ability to buy into our company. We want the record. We want the institutional rigor. It’s hard to have this spotlight this early, but it’s making us stronger.”

Christopher Marquis, Contributor