Welcome to iGrow News, Your Source for the World of Indoor Vertical Farming
BrightFarms Launches Multimillion-Dollar R&D Hub in Greater Cincinnati
BrightFarms, a New York-based grower of indoor leafy greens since 2013, is forming BrightLabs, a new innovation and research hub, at its Wilmington greenhouse. BrightLabs, overall, will represent a tenfold increase in the company’s research capabilities, while increasing profitability and delivering new product innovations.
By Liz Engel - Staff reporter
June 24, 2021
An indoor farming company is investing millions in Ohio with the debut of a new research and development hub.
BrightFarms, a New York-based grower of indoor leafy greens since 2013, is forming BrightLabs, a new innovation and research hub, at its Wilmington greenhouse. BrightLabs, overall, will represent a tenfold increase in the company’s research capabilities, while increasing profitability and delivering new product innovations.
Steve Platt is the CEO of BrightFarms. (Jenn Erickson)
CEO Steve Platt declined to disclose the exact investment but told me it’s in the multimillions. The project is being launched as part of the company’s $100 million Series E funding round in October led by media conglomerate Cox Enterprises.
“BrightFarms as a company has been growing very consistently, and the indoor farming industry is at an inflection point,” Platt said. “We’ve perfected how we grow – among competitors, we’ve developed the most profitable model for the production of indoor leafy greens – but now’s the time to invest behind R&D to secure an advantage for the future. It’s essential to stay ahead of the curve.”
Like others in the indoor farming space, BrightFarms lauds the fact that its lettuce is healthier, tastier, looks better, is more nutritious, and, particularly for customers in Ohio, fresher than field-grown produce hauled in from states like California and Arizona. Today the company’s five greenhouses in Ohio, Virginia, Illinois, Pennsylvania produce 9 million pounds of produce each year.
But unlike several outfits, particularly vertical farms that use purple-hued LED lighting, BrightFarms leverages natural sunshine. Its souped up, high-tech greenhouses grow spinach, romaine, arugula and more using a hydroponic system, or water instead of soil.
Wilmington, which celebrated its first harvest in 2018, isn’t the company’s largest greenhouse in terms of size or production, but Platt said it made a good host for the innovation hub because of its centralized location. It’s close to customers and easily accessible from its other farms. He also credited the workforce and level of academic talent available from universities nearby.
BrightFarms celebrated its first harvest in Wilmington in 2018. BrightLabs is investing millions to build out an innovation and research hub at the site. (Brian Mollenkopf)
Phase one for BrightLabs includes a new, approximately 1,350 square foot lab that has been built at the Wilmington greenhouse site. BrightFarms will also dedicate space on the farm for the BrightLabs team to work.
Platt said BrightLabs will focus on three key areas:
Biotech. BrightFarms wants to study the environments in which plants grow to increase yield, flavor, and texture.
Agtech. BrightOS, the company’s proprietary AI software system, acts as the company’s central nervous system, Platt said, collecting millions of data points from its fives farms to streamline operations. How can the company improve that technology?
Product innovation. BrightFarms recently launched NutriGreens, a new lettuce packed with antioxidants – double the amount, Platt said, found in a serving of blueberries. BrightFarms wants more advances like that.
BrightLabs itself will be led by Matt Lingard, a former Bayer plant scientist and Ph.D. with over 15 years of experience, who joined BrightFarms in May as its VP of agriculture and science. Platt said the BrightLabs team will include four employees to start.
“We’re the leading grower of indoor spinach – in the U.S. we grow 90% of the indoor spinach that’s sold – but we want to double our production on that. How do we come out with new types of spinach that can grow even better in a hydroponic system?” he said.
“We’re taking on a massive industry and a complicated, broken system – where greens are grown all in one location, shipped thousands of miles across the country, generally with pesticide reside, there’s a food-borne illness, and the product isn’t that good,” Platt added. “We have a simpler system and a better product, but we need to deliver that at a price point and at a volume that competes with what’s coming out of California. If we’re trying to unseat this big gorilla, we can’t be this niche that’s only affordable to people who drive Teslas.”
Overall, there’s billions being invested in the industry. New York City-based Bowery Farming, in late May, announced a $300 million funding round with a $2.3 billion valuation. Kentucky-based AppHarvest merged with a special purpose acquisition company in February, an IPO approach that’s gaining ground in 2021, and is now worth $1.5 billion.
BrightFarms, with its Series E, has raised more than $200 million in total. In addition to launching BrightLabs, it plans to use the funds to expand its network of regional indoor farms – new farms are currently under development in Massachusetts and Texas – and grow its retail footprint. Locally, BrightFarms is available at Sam’s Club, Walmart and Pipkin Produce as well as Food Lion and Kroger in other markets.
The company said by the end of 2021 its leafy greens will be available at over 3,500 stores.
“It’s amazing. Even when I joined the company two years ago, we were convincing people this was the future. Now customers are coming to us saying, ‘We want to replace field grown with indoor-grown,’” he said. “We think the future is here.”
Lead photo: BrightFarms grows leafy greens like spinach, romaine, and arugula in high-tech, computer-controlled greenhouses.
Singapore: Mega-Farm, Research Center To Open By December 2021
&ever is currently building a mega-farm in Singapore with support from the Singapore Food Agency, SFA, and the Economic Development Board, EDB, and will be launched by the end of 2021. The mega-farm will be 15m high and have an annual production capacity of up to 500,000 kg of leafy greens.
&ever
“We’re really happy to have launched in Munich and consumers really like our harvest-on-demand concept,” says Franz Drack, Chief Marketing Officer at &ever. "We just need to see how to increase the accessibility of our solutions. I’d love to see 200 vertical farms in Europe with this technology in the next five years."
Although it all started in Hamburg, &ever is currently headquartered in Munich which is also where the grow tower showroom is located. In 2020, &ever opened its first commercial farm in Kuwait, spanning 3,400 m2 and with a daily output capacity of 550 kg. The farm provides its leafy greens to Kuwaiti restaurants and retailers. The company also recently launched a grow tower in an EDEKA Stadler+Honner “Die Frisch-Nachbarn” supermarket in Unterfôhring near Munich.
Mega-farm and research center
&ever is currently building a mega-farm in Singapore with support from the Singapore Food Agency, SFA, and the Economic Development Board, EDB, and will be launched by the end of 2021. The mega-farm will be 15m high and have an annual production capacity of up to 500,000 kg of leafy greens.
In addition to the mega-farm, &ever will be establishing Singapore as its global R&D center to accelerate knowledge development and transfer to the mega-farm. The R&D center will focus on improving energy use efficiency through optimized lighting strategies and improving crop quality by evaluating different seed and substrate combinations. Moreover, &ever will be working to develop non-invasive crop monitoring processes through vision systems.
“We’re getting tremendous support from our local partners EDB, SFA and A*Star; everyone is keen to get this farm online. This farm is what we are most excited about this year,” Franz notes. To better address consumer demand, &ever conducted market research in Singapore by speaking with potential consumers and foodservice providers. This research has allowed &ever to explore the balance between western and eastern leafy green species to be grown in the mega-farm.
“Our team under the lead of our country manager, Kerstin Köhler, have worked with food service providers who are very good at telling us what products are needed and wanted. Some products are very interesting for certain segments of the value chain, so we try to talk to a lot of different people,” says Franz.
&ever is continuing to focus on leafy greens, microgreens and herbs for the time being. While there is a lot of interest in fruits (like strawberries), Franz explains that the company is focused on keeping its product range simple to perfect the growing process.
&ever's growing tower
Rebranding efforts
In recent months, the vertical farming industry has seen major players taking a new approach to product branding by using brightly colored packaging. &ever is also focused on bright, enticing packaging designed to represent the company’s values and production process.
“We will start using colors that represent what we’re actually doing. Yellow for the light, blue for the water and green for our greens. It allows the brand to stand out and visually signals to consumers that things are changing. This shows that we are a new type of agricultural company. Stay tuned for that in the second half of 2021.” explains Franz.
Franz also notes that &ever’s products are also sold living, whereas many indoor farms sell cut greens, packaged in clamshells or other packaging materials. Moreover, &ever is also looking into direct-to-consumer sales of leafy greens.
In building its mega-farm, putting its products on European shelves and rebranding, &ever is eager to continue growing by getting consumers excited and developing more farm projects across the world.
&ever is a German agtech company offering three growing solutions, each addressing a different level of production. The &ever grow box is a small-scale system that allows growers to produce 15-30 kg of leafy greens per day in a small footprint. The company’s medium-sized solution is the &ever grow tower which is a small room containing a circular cultivation module.
Young plants are first transplanted in the inner circle and are gradually pushed further to the outer circles as new plants are introduced to the system. In pushing the plants further, the older plants receive more available space to continue growing without crowding neighboring plants. The grow towers provide a customizable output of 20-50 kg of leafy greens per day. Finally, &ever also develops large-scaled production system which it calls mega-farms.
For more information:
Franz Drack, CMO
&ever
local@andever.de
www.and-ever.com
Publication date: Tue 8 Jun 2021
Author: Rebekka Boekhout
© VerticalFarmDaily.com
RotoGro (ASX:RGI) Updates Market On Vertical Farming Tech
The RotoGro Garden System is the core of the company's technology with the ability to maximize plant surface growing area by situating a spherical garden around a centrally placed lighting system
Source: RotoGro
RotoGro (RGI) provides an update of its vertical farming technology with encouraging results from recent trials
The company says recent data indicates its garden systems produce more yield per square meter when compared to other indoor vertical farming methods
Further, trials of RotoGro 710 are said to be progressing well and the team is trialing how to further reduce water and energy usage
RGI is also encouraged by its studies and customer feedback for its RotoGro 420 system which it says validates commercial-scale cultivation of lawful cannabis
Shares were trading 2.3 percent higher at 4.4 cents apiece
RotoGro designs and manufactures cultivation solutions for indoor vertical farming, operating in perishable foods and lawful cannabis.
The RotoGro Garden System is the core of the company's technology with the ability to maximize plant surface growing area by situating a spherical garden around a centrally placed lighting system.
The systems can be stacked, maximizing the yields per square meter when compared to the ground space occupied.
RGI said data collected from recent crop trials conducted in collaboration with agriculture company Verity Greens and herb grower and distributor Fresh Leaf indicates its garden systems produce more yield per square meter when compared to other indoor vertical farming methods.
Specifically, RotoGro projects yields 3.8 to 15.3 times the yield per square meter compared to industry-leading farming producers and greater in contrast to greenhouse and conventional farming.
CEO Michael Di Tommaso said ventures like the ones with Verity Greens and Fresh Leaf will "strengthen RotoGro’s market presence by successfully penetrating the burgeoning indoor vertical farming industry with its technology offerings".
Further, internal trials of the company's most recently developed garden system, the RotoGro 710, are said to be progressing well with cultivation of 48 kilograms of basil and 26.5 kilograms of cilantro in a single harvest cycle.
After multiple trials cultivating leafy greens, the agronomy team repeatedly achieved yields of 124 kilograms in a fully planted RotoGro 710, indicating single harvest yields of 372 kilograms could be achieved when the technology is at full capacity, stacked three-high.
The team is trialing shorter full crop cycle lengths while maintaining yields and aims to refine the plant irrigation schedules to further minimize water usage and refine the environmental controls to ensure enhanced energy efficiencies.
In other news, RotoGro has enabled full automation of its lawful cannabis cultivator, RotoGro 420.
The company's software controls the wheel revolution speed, lighting cycles, and spectrum variations, direct CO2 injection as well as the plant irrigation processes and environmental controls including temperature, air conditioning, and humidification.
Notably, the 420-garden system has been able to consistently produce 10.2 kilograms of dried cannabis flower in a single 56-day crop cycle when stacked three-high.
RGI said its studies in combination with its customer’s data validates the commercial viability of RotoGro 420 in the commercial-scale cultivation of lawful
cannabis.
Mr Di Tommaso said RotoGro is continuing to develop relationships globally to expand its presence in both the perishable foods and lawful cannabis markets.
Shares were trading 2.3 percent higher at 4.4 cents apiece at 1:31 pm AEST.
CANADA: Firefly: A Bug Early Warning System / Precision Crop Health Monitor
LEAN Systems and its technology partner, Proxilogica, are pleased to announce the start of pre-production testing of “Firefly” in collaboration with Agriculture and Agri-Food Canada at the Lethbridge Research Development Center (LeRDC)
Delivering unprecedented crop state comprehension through innovative high-density instrumentation and the power of the cloud
Canada – LEAN Systems and its technology partner, Proxilogica, are pleased to announce the start of pre-production testing of “Firefly” in collaboration with Agriculture and Agri-Food Canada at the Lethbridge Research Development Center (LeRDC).
The Firefly is a wireless and self-powered IoT imager the size of a credit card, purpose-built for early detection of disease and pest outbreaks in the cereal crops and horticulture industry.
The LEAN/Proxilogica team has worked in collaboration with AAFC-LeRDC for almost two years to explore economical digital imaging systems for indoor plant phenotyping pursuant to a three-year material development agreement.
Dr. Anne Smith, a research scientist at LeRDC, together with her colleagues Drs. Jonathan Neilson and Charles Geddes have been developing inexpensive imaging platforms for digital image capture and image analysis protocols for plant phenotyping in growth rooms, greenhouses, and laboratories. Drs. Smith and Neilson, over the last two years, have been collaborating with LEAN Systems to test their technology. The early systems, which were installed less than one month prior to reducing on-site presence in response to COVID-19 restrictions, showed:
· effective image capture over greenhouse plants
· the ability to upload images remotely to a central server
· provide regular downloadable images to the user
· apply image analysis protocols to automatically extract information on plant growth over time
Dr. François Eudes, Director of Research and Technology, LeRDC, says “digital imaging solutions in controlled growth environments have supported research programs during the pandemic and have given us a view of the future of distributed teamwork and data-intensive plant science.”
Dr. Keshav Singh, who recently joined the team at LeRDC, says “diversified applications of Firefly sensing technology over traditional agricultural industry will facilitate the digital ag revolution for global food security. It will involve further development of ground-sensing Firefly technology and possibly aerial platform (drone) applications for rapid field scouting. In the future, this technology will help growers make critical decisions related to identifying types of pests and tracking micro-climates within a field much faster than ever before.”
AAFC is excited to continue working with LEAN Systems on the Firefly technology for automated image capture and extraction of plant phenotyping information relevant to rapid assessment of new varieties, the impacts of abiotic and biotic stresses, and for screening herbicide resistance in a variety of weed species.
Dr. David Southwell, CEO of Proxilogica Corporation, says behind the Firefly architecture are “large fleets of tiny imagers that maximize space coverage with enough onboard intelligence to pre-process and securely transmit data to the cloud where bird’s eye maps are then assembled. AI-boosted analytics functions may be performed at both edge and core, drastically reducing network traffic thereby enabling fleet scaling. We start in CEA spaces and will soon be ruggedizing and adapting the imagers for more demanding open field horticulture applications, including UAV platforms.”
“We are very excited about this technology and see the opportunity for a range of strategic B2B relationships to accelerate commercial evaluation and deployment as well as additional initiatives with research partners globally to expand the Firefly’s useful purpose,” said Bill Halina, managing director of LEAN Systems.
About AAFC:
The Lethbridge Research and Development Centre (LeRDC) was established in 1906 in Lethbridge, Alberta, and is one the largest facilities within Agriculture and Agri-Food Canada's (AAFC) network of 20 research and development centres. LeRDC leads research on beef cattle production systems, crop production, and sustainable production systems under dryland and irrigated conditions associated with farming in a semi-arid climate.
Dr. Anne Smith is a research scientist at LeRDC who specializes in remote sensing applications for agriculture. Over the last 25 years she has conducted studies in cropping systems and grasslands using satellite, airborne, drone and ground-based multispectral, hyperspectral, and radar systems.
Dr. Keshav Singh is a research scientist at LeRDC who specializes in high-throughput proximal and aerial imaging technologies to study canola, legume, and cereal crop phenomics. His work mainly involves agronomic data processing, image-cube analysis, algorithm development, crop mapping and analytics.
For more information:
https://profils-profiles.science.gc.ca/en/research-centre/lethbridge-research-and-development-centre
About Proxilogica:
Proxilogica was incorporated in 2017, built around a team of engineers with more than two decades of experience in technical computing with a vision to develop edge analytics devices. Firefly is the first technology to emerge from this campaign, aimed at improving productivity in precision horticulture.
For more information:
The Proxilogica Corporation
contact@proxilogica.com
www.proxilogica.com
About LEAN Systems:
LEAN Systems Limited Partnership (LP) was registered in the Province of Alberta on July 19, 2018 to help The Proxilogica Corporation fund development of proprietary technologies in the field of horticulture. The LP is managed by LEAN Systems GP Inc. who also provides business development support/advice to Proxilogica's leadership.
For more information:
LEAN Systems LP
contact@LEAN-Systems.ca
www.lean-systems.ca
Singapore Shows What Serious Urban Farming Looks Like
The COVID-19 pandemic has highlighted just how susceptible countries are to turmoil in the global food supply
MAY 3, 2021
As recently as 1970, nearly one in 10 Singaporeans was engaged in farming or fishing. Now, most of the island is urbanized. The vast majority of apartment complexes in Singapore are public housing, which allows the government to designate their rooftops as agricultural spaces in the public interest.
From what was once Singapore’s largest prison complex — the Queenstown Remand Prison, housing about 1,000 inmates at its peak — an 8,000 square meter urban farm, Edible Garden City (EGC), now bursts with colorful vegetables and fragrant herbs. Co-founded by local resident Bjorn Low in 2012, EGC is one of Singapore’s first urban https://nextcity.org/daily/entry/singapore-shows-what-serious-urban-farming-looks-like initiatives and is located inside the former prison compound. It is one of several efforts in the city-state to strengthen the island’s food security at a grassroots level. “Our goal was and is to encourage more locals to grow their own food and thus help strengthen the city’s food resilience,” says Sarah Rodriguez, EGC’s head of marketing.
RELATED STORIES
The COVID-19 pandemic has highlighted just how susceptible countries are to turmoil in the global food supply. This is an issue of particular concern to Singapore, which imports almost 90 percent of its food from more than 170 countries. For several years now, the city authorities have been preparing for just such a crisis. The Singapore Food Authority (SFA) launched its ambitious “30 by 30” initiative in 2019, with the objective of producing 30 percent of Singapore’s nutritional needs locally by the year 2030. Supported by a mix of government grants and incentives, 30 by 30 will test the limits of urban food production. At last count in 2019, the city had 220 farms and was meeting 14 percent of its demand for leafy vegetables, 26 percent for eggs, and 10 percent for fish.
Vertical farms feed an island
As recently as 1970, nearly one in 10 Singaporeans was engaged in farming or fishing, either directly or indirectly. Orchards and pig farms dotted the island, and many residents grew fresh vegetables and raised backyard chickens. In the ‘70s and ‘80s, however, most of these occupations disappeared from the rapidly urbanizing city-state. Competing demands for land use led to agriculture being limited to about one percent of the land. Singapore’s food supply grew increasingly reliant on imports.
That began to change about a decade ago amid serious concerns about Singapore’s heavy reliance on imports. In response, the government backed efforts to shore up the nation’s food security with urban farming. In 2014, the authorities announced a SG$63 million (USD$47 million) Agriculture Productivity Fund to support farms in increasing their outputs by using innovative technologies. Over 100 local farms have benefitted so far.
But with COVID-19 threatening to disrupt the city’s imports, the fear that essential food items may not be available became very real. “People have started to resonate with the need for reliable access to food in their own homes and neighborhoods,” says Cuifen Pui, co-founder of the Foodscape Collective, which works with local communities and natural farming practitioners to transform underutilized public spaces into biodiverse edible community gardens. “Many Singaporeans are connecting with the concept of food security at a personal level.”
EGC, which has designed and built over 260 small produce farms for restaurants, hotels, schools and residences in Singapore, also experienced an increased interest in their foodscaping service. “Our foodscaping team saw a 40 percent increase in inquiries from homeowners between April and June last year,” says Rodriguez.
Pre-pandemic, EGC supplied produce to about 60 restaurants in the city and shipped produce weekly to 40 local families that had signed on to their Citizen Box subscription service. When restaurants shut in April last year, EGC quickly converted its restaurant-supplying beds and systems to grow crops for Citizen Box instead. “A bed that was previously used to grow tarragon for restaurants was repurposed to grow something like kang kong (water spinach) that is more suitable for home cooking,” explains Rodriguez. “We were able to supply three times more households through Citizen Box.” EGC uses natural farming methods like composting for soil regeneration and the use of permaculture techniques, to ensure that the impact on the environment is minimal and the soil remains healthy and productive for future generations.
Currently, EGC also grows kale and chard using hydroponics and microgreens in soil, all of it in a climate-controlled, indoor environment. “We strongly believe that there should be a balance between agritech and natural farming,” says Rodriguez. “We prefer to focus on the wide variety of veggies that grow well in our climate.”
EGC’s focus on natural farming is shared by the Foodscape Collective. It’s co-founder Pui had the opportunity to start a community edible garden in 2013, along with her neighbors. More recently, at the invitation of the National Parks Board and The Winstedt School, the Foodscape Collective, together with the local community, is transforming land in two locations using permaculture techniques. “These gardens are multi-functional spaces — to grow edibles, to grow plants for biodiversity, to nature watch, to enhance the soil ecosystem by composting food scraps, or simply just spaces to relax in a busy city,” says Pui.
Edible Garden City, once the largest prison in Singapore, is now an urban farm helping to bolster the city-state’s food security. (Photo courtesy of Edible Garden City)
But with less than one percent of Singapore’s land available for agriculture, 30 by 30 is increasing demand for tech-based solutions that can produce large volumes of food in small spaces. “Technology plays a huge role in Singapore’s food security,” says Prof. Paul Teng, food security expert and Dean of the National Institute of Education International. Rooftop farms like Comcrop — one of the recipients of the government’s SG$30 million (USD$22 million) 30X30 Express grant — and Citiponics are growing greens hydroponically on rooftops.
Since the vast majority of apartment complexes in Singapore are public housing, the government can designate their rooftops as agricultural spaces in the public interest. In 2020, the rooftops of nine multistory car parks in public housing estates were made available for farming by the government.
Other farms like Sustenir are using climate-controlled agriculture to grow their greens entirely indoors. “Singapore will always have to maximize its land and labor productivity for self-production, and this means technology,” says Teng. “It doesn’t make economic sense to produce food in Singapore when there is no comparative advantage, such as with rice and other large area-requiring crops.”
In line with its focus on highly-productive farming, SFA plans to redevelop Lim Chu Kang — an area in the northwest of Singapore covered with traditional farms — into a high-tech agri-cluster, which would triple the output of the area. The redevelopment work is expected to begin in 2024.
Egg production and aquaculture are also being ramped up. Chew’s Agriculture, a household name in Singapore for its farm-fresh eggs, received a 30X30 Express grant to build additional hen houses equipped with technologies to minimize egg breakage and maximize production.
As of 2019, Singapore had 122 sea- and land-based fish farms, with the majority of its offshore fish farms located in the Johor Strait to the north of the island. With these fish farms reaching maximum production levels, potential sites in the southern waters of Singapore are being assessed for suitability and environmental impact. Vertical aquaculture on land is also being viewed as an alternative to increase fish production. Land-based fish farm Apollo Aquaculture recently made news with its upcoming eight-story, state-of-the-art farm.
On the public-facing side, the SFA is encouraging citizens to buy locally farmed food, emphasizing its freshness and nutritive value. A new logo SG Fresh Produce was launched to make all locally grown produce easily identifiable in supermarkets.
As Singapore moves ahead with its 30 by 30 plans, it will still need to import the majority of its food. Not far from Lim Chu Kang is Sungei Kadut, one of Singapore’s oldest industrial estates, which will be redeveloped in a phased manner into an agri-tech innovation hub. “The government is hoping to develop the country into a regional agrifood tech hub for innovations that can offer technology exports to the region,” says Teng. “By helping other producing countries with technologies that can up their production, they will have more for Singapore to import.”
This story was originally published in Reasons to Be Cheerful. It is reprinted here with permission.
Next City is one of few independent news outlets covering urbanism’s efforts to achieve a more equitable city; including how to bring people out of poverty, empower business owners of color, connect us with sustainable technology, center community-based cultural knowledge, house the homeless, and more. Ultimately, it’s about how we care for each other, and we need your support to continue our work.
Anne Pinto Rodrigues is a Netherlands-based freelance journalist, writing on a broad range of topics under social and environmental justice. Her work has been published in The Guardian, The Telegraph, CS Monitor, Yes!, Ensia, and several other international publications.
Lead Photo: (Photo courtesy of Comcrop)
INDIA: VIDEO - University Student Runs Farm In Kuala Lumpur
Ah Pa, a well-known YouTube cook recently visited Sean, a university student living in Kuala Lumpur who runs his own farm. As Sean calls it, his E-farm is located in the middle of the city
Ah Pa, a well-known YouTube cook recently visited Sean, a university student living in Kuala Lumpur who runs his own farm. As Sean calls it, his E-farm is located in the middle of the city.
The self-built foil-greenhouse comprises 1000 sq. ft. and is filled with vertical growing towers and an aquaponic system. Currently, the farm has 1000 tilapia that are fed by the plants grown in Sean's greenhouse. "We're growing more than 20 plants here," says Sean, whereas we can grow up to 60 different plants and herbs."
Click on the video below to hear Sean's story.
23 Apr 2021
Vertical Farming Startup Oishii Raises $50m In Series A Funding
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone.”
By Sian Yates
03/11/2021
Oishii, a vertical farming startup based in New Jersey, has raised $50 million during a Series A funding round led by Sparx Group’s Mirai Creation Fund II.
The funds will enable Oishii to open vertical strawberry farms in new markets, expand its flagship farm outside of Manhattan, and accelerate its investment in R&D.
“Our mission is to change the way we grow food. We set out to deliver exceptionally delicious and sustainable produce,” said Oishii CEO Hiroki Koga. “We started with the strawberry – a fruit that routinely tops the dirty dozen of most pesticide-riddled crops – as it has long been considered the ‘holy grail’ of vertical farming.”
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone. From there, we’ll quickly expand into new fruits and produce,” he added.
Oishii is already known for its innovative farming techniques that have enabled the company to “perfect the strawberry,” while its proprietary and first-of-its-kind pollination method is conducted naturally with bees.
The company’s vertical farms feature zero pesticides and produce ripe fruit all year round, using less water and land than traditional agricultural methods.
“Oishii is the farm of the future,” said Sparx Group president and Group CEO Shuhei Abe. “The cultivation and pollination techniques the company has developed set them well apart from the industry, positioning Oishii to quickly revolutionise agriculture as we know it.”
The company has raised a total of $55 million since its founding in 2016.
The Stock Market Discovers Indoor Ag In A Big Way
Special purpose acquisition companies are a faster cheaper way to raise company funds than the traditional IPO process. What role may they play in our ever growing vertical farming industry?
Robinhood antics aside, there’s no hotter topic in finance right now than SPACs (special purpose acquisition companies), and even indoor agriculture has become caught up in the buzz.
SPACs, or special purpose acquisition corporations, are a shell company that lists itself on a stock exchange and then uses the listing proceeds to acquire or merge with another company. It’s an attractive route to raising funds for companies looking for a faster and cheaper way to list than the rigours of the traditional IPO process.
Though SPACs have been around since the 1990s, they have had a reputation for being “the buyer of last resort”, primarily owing to a spate of failures in the early 2000s. The approach has once more taken off in recent years. There was nearly 8x as much raised in 2020 as in 2018, and 2021’s total has already surpassed last year’s[1]. The approach has become so hot that even Goldman Sachs junior investment bankers recently complained that they were burned out by the sheer volume of SPACs they’re working on[2].
This newfound enthusiasm is generally traced to a combination of tighter SEC regulations, efforts by cash-rich private equity companies to exit portfolio companies and fewer traditional IPO listings. Higher quality sponsors, such as 40-year old private equity firm Thoma Bravo, lead some to believe that things are different this time around. The lustre of famous SPAC participants – such as baseball player A-Rod and basketball legend Shaquille O’Neal – has helped things along.
Detractors point to post-listing underperformance by SPACs, high fees to sponsors and opaqueness around the acquisition of companies. SPAC rules mean that institutional investors sometimes get to see information on potential acquisitions ahead of retail investors.[3] On a recent Clubhouse chat, one investor compared SPACs to the risky no-revenue internet listings of the late 1990s. Another questioned whether retail investors’ appetite for such vehicles would cause greater market volatility[4].
Dan Bienvenue, the interim CEO of mega public pension fund CALPERs, recently described SPACs as “fraught with potential misalignment, potential governance issues”.[5] That said, similar dire warnings have accompanied the rise of many a new approach in finance, most recently equity crowdfunding, and have proven wrong as often as right.
As is so often the case in indoor agriculture, cannabis companies have led the way when it comes to SPACs, generally listing in Canada owing to the US federal prohibition on the crop. One example is Choice Consolidation Corp, which raised $150mm in February, and says that it plans to acquire “existing strong single-state operators”[6].
Historically, food-focused indoor agriculture companies have sourced little of their capital from public markets, preferring instead to work with private equity and strategic investors. To be sure, there is a small cadre of listed CEA firms, such as Canadian greenhouse operator Village Farms (TSE: VFF) and Canadian grow system tech company CubicFarm Systems Corp (TSXV: CUB) are exceptions to this rule.
All of that changed last month when Kentucky-based greenhouse company AppHarvest raised $475mm through NASDAQ listed SPAC Novus Capital. The funds will fuel the expansion of up to a dozen new farms through 2025.
Naturally, the move has led to speculation that vertical farms and greenhouses will follow suit, though it’s worth noting that the rules that govern SPACs aren’t necessarily friendly to CEA companies. They favour large, highly valued companies that easily capture the attention of retail investors, and those are not plentiful in CEA.
Regardless of whether the SPAC trend becomes a permanent feature of the indoor farm fundraising landscape, one more method of accessing capital for CEA can only be a good thing. For the moment at least.
For more information:
Contain
www.contain.ag
Note: None of the above constitutes investment advice.
Sources:
[1] SPACInsider figures
[2] “Goldman’s junior bankers complain of crushing workload amid SPAC-fueled boom in Wall Street deals”, CNBC, March 18, 2021
[3] For instance, where a PIPE is being considered by the SPAC
[4] “SPACS: IPO 2.0 & Agrifoodtech Exits”, March 4, 2021
[5] “CalPERS’ Bienvenue: SPACs are fraught with potential misalignment”, Private Equity International, March 16, 2021
[6] “New cannabis SPAC raises $150 million in IPO for US acquisitions”, Marijuana Business Daily, February 19, 2021
Publication date: Wed 24 Mar 2021
Author: Rebekka Boekhout
© VerticalFarmDaily.com
Judge Rules In Favor of U.S. Department of Agriculture’s Certification of Organic Hydroponic Producers
The decision is a major victory for producers and consumers working together to make organics more accessible and the supply more resilient
SAN DIEGO, CALIFORNIA March 19, 2021 – The Coalition for Sustainable Organics (CSO) is ecstatic with the ruling issued today by the U.S. District Court in San Francisco that affirms the legality of U.S. Department of Agriculture certification of organic hydroponic operations. Lee Frankel, executive director of the CSO, stated, “Our membership believes that everyone deserves organic.
The decision is a major victory for producers and consumers working together to make organics more accessible and the supply more resilient. The COVID-19 pandemic has further increased demand for fresh organic vegetables and fruits as consumers look to healthy foods to bolster their immune systems and protect their family’s health.
The court preserves historically important supplies of berries, tomatoes, cucumbers, peppers, mushrooms, leafy greens, herbs, sprouts and microgreens that are frequently grown using containers or other hydroponic organic systems. In addition, the lawsuit threatened the nursery industry that provides many of the seedlings used by organic growers planting both in open fields as well as greenhouses.”
The court in its written opinion stated that “USDA’s ongoing certification of hydroponic systems that comply with all applicable regulations is firmly planted in OFPA.”
Frankel was pleased that the court ruling clearly affirmed the legitimacy of hydroponic and container production systems under the Organic Foods Production Act that established the USDA National Organic Program. In addition, the ruling also confirmed that USDA was fully within its rights to reject the petition to ban the certification of operations and correctly followed procedures in its handling of the petition.
“We look forward to the organic industry coming together in the wake of this court decision to help strengthen the organic community, continue to enhance the cycling and recycling of natural resources and promote ecological balance,” continued Frankel. “We are eternally grateful to the teams at USDA and the Department of Justice in effectively defending the work of the National Organic Program.”
FOR MORE INFORMATION:
Lee Frankel, Executive Director
info@coalitionforsustainableorganics.org
619-587-4341
UPDATE - Vertical Farming Leader Kalera Welcomes Maria Sastre to Board of Directors
Sastre brings world-class customer service and operations experience as Kalera prepares for rapid domestic and international expansion.
A seasoned executive with experience in the food, travel, and tourism industries, Sastre brings with her over 25 years of executive leadership and experience and currently sits on the boards of esteemed, Fortune 500, multibillion dollar public and private companies, including General Mills and O’Reilly Auto Parts.
ORLANDO, Fla., Feb. 24, 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 the appointment of Maria Sastre to its Board of Directors. A seasoned executive with experience in the food, travel, and tourism industries, Sastre brings with her over 25 years of executive leadership and experience and currently sits on the boards of esteemed, Fortune 500, multibillion dollar public and private companies, including General Mills and O’Reilly Auto Parts. The addition of Sastre to the board coincides with Kalera's rapid expansion into several new markets and its acquisition of Vindara Inc., the first company to develop seeds specifically designed for use in vertical indoor farm environments as well as other controlled environment agriculture (CEA) farming methods.
“We are thrilled that someone of Maria’s caliber has chosen to join Kalera’s board,” said Daniel Malechuk, Kalera CEO. “Her resume is beyond impressive, with extensive experience leading highly successful international and growing companies, and is a strong complement to our industry-leading management team and board of directors. She has proven time and again that she is invaluable in helping scale businesses, and will be an incredible asset to Kalera during this time of rapid growth, both domestically and abroad.”
In addition to her aforementioned business experience, Sastre also served on numerous civic and non-profit boards such as the Greater Miami Visitors and Convention Bureau(Chair), the Executive Advisory Board of Florida International University School of Hospitality,and the Executive Board of the United Way of Miami-Dade County. She has been recognized as one of the Top 80 U.S. Hispanics and Top 20 Latinas and has received numerous awards in the travel and hospitality industry sectors. Sastre's education includes a Bachelor's degree and a Master's in Business Administration, both from New York Institute of Technology.
“As someone with a passion for optimizing customer experiences, I am proud to join Kalera’s board as I fully believe their product is a category leader,” said Maria Sastre, new Kalera board member. “Kalera has the opportunity to serve diverse customer segments and increase accessibility to a product that is inherently safer, cleaner, fresher, more sustainable, and more nutritious and flavorful. In a world where brands are looking for ways to differentiate their products and services to their discerning customers, the Kalera portfolio is well positioned to offer the best vertical farming product solution. I trust my years of experience in operations and customer service will prove beneficial as Kalera expands into new markets.”
Sastre previously served as the President and Chief Operating Officer for Signature Aviation, the largest worldwide network of fixed-based operations and maintenance centers for private aviation. Before joining Signature, she spent eight years at Royal Caribbean Cruises LTD, where she held the positions of Vice President, International, Latin America, Caribbean and Asia; and Vice President of Hotel Operations. Her roles included strategic growth across emerging markets as well as managing all aspects of operations and the guest experience onboard Royal Caribbean's fleet of vessels. Previously, Sastre served as Vice President of Worldwide Customer Satisfaction for United Airlines, where she led the newly created customer-satisfaction division charged with refining the customer-service experience.
Kalera currently operates two growing facilities in Orlando, and is building facilities in Atlanta, Houston, Denver, Columbus, Seattle, and Hawaii. Kalera is the only controlled environment agriculture company with coast-to-coast facilities being constructed, offering grocers, restaurants, theme parks, airports and other businesses nationwide reliable access to locally grown clean, safe, nutritious, price-stable, long-lasting greens.Kalera uses a closed-loop irrigation system which enables its plants to grow while consuming 95% less water compared to field farming.
About Kalera
Kalera is a technology driven vertical farming company with unique growing methods combining optimized nutrients and light recipes, precise environmental controls, and clean room 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.
Media Contact
Molly Antos
Phone: (847) 848-2090
Email: molly@dadascope.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb487877-0d3b-4e1c-9492-9ea280c217a1
Jersey City Housing Authority To Host Vertical Farms
The partnership aims to provide more access to healthy food
Partnership Aims To Provide
More Access To Healthy Food
February 25, 2021
AeroFarms will construct and maintain 10 farming sites, the first of which will be built at the Curries Woods Community Resource Center as part of a new agreement between the city, AeroFarms, and the Jersey City Housing Authority.
Vertical farms will provide free nutritious food to residents in need now that the Jersey City Council has adopted a resolution approving an agreement between AeroFarms, the city, and the Housing Authority.
The new agreement means that vertical farms will be opened at Curries Woods and Marion Gardens.
The public housing farms, which will be funded by the city, will increase healthy food access where needed most and encourage residents to live healthier lifestyles.
The Jersey City Department of Health and Human Services (HHS), AeroFarms, and Jersey City Housing Authority will collaborate with the Boys & Girls Club and Head Start Early Childhood Learning programs to support produce distribution and healthy eating education.
“We’ve worked hard to keep the Vertical Farming Program a priority despite the impacts from this pandemic, which have disproportionately affected the more economically challenged areas and exacerbated societal issues such as healthy food access,” said Mayor Steven Fulop.
“We’re taking an innovative approach to a systemic issue that has plagued urban areas for far too long by taking matters into our own hands to provide thousands of pounds of locally-grown, nutritious foods that will help close the hunger gap and will have an immeasurable impact on the overall health of our community for years to come.”
City farming
AeroFarms will construct and maintain the farming sites. The first will be built at the Curries Woods Community Resource Center. The Boys & Girls Club and Head Start will integrate the vertical farm as a learning tool for youth within their educational programming.
Head Start, operated by Greater Bergen Community Action, plans to integrate greens into its early childhood meals.
AeroFarms indoor vertical farming technology uses up to 95 percent less water and no pesticides versus traditional field farming.
According to the city, the JCHA-Aerofarms Advisory Committee will be formed to provide strategic oversight and guidance throughout the program.
The steering committee will include Jersey City residents and stakeholders from the Boys & Girls Club and Head Start.
The city’s Vertical Farming Program will consist of eight additional vertical farms throughout Jersey City in senior centers, schools, public housing complexes, and municipal buildings.
The 10 sites will grow 19,000 pounds of vegetables annually using water mist and minimal electricity, according to the city.
The food is free to residents if they participate in five healthy eating workshops, and they will have the option of participating in a quarterly health screening.
“As a Certified B Corporation, we applaud Mayor Fulop’s leadership and advocacy to bring healthier food options closer to the community, and we are excited to launch together the nation’s first municipal vertical farming program that will have a far-lasting positive impact for multiple generations to come,” said Co-Founder and CEO of AeroFarms David Rosenberg.
The city’s Health and Human Service Department will run the program with a health-monitoring component to track participants’ progress under a greener diet, monitoring their blood pressure, cholesterol, diabetes, and obesity.
Crops will be integrated with other Healthy Food Access initiatives, including senior meal programs, according to the city.
“Access to healthy food and proper nutrition is directly linked to a person’s mental and physical health, and can decrease risks of chronic diseases while increasing life expectancy,” said Stacey Flanagan, director of Health and Human Service for Jersey City. “This past year has shed light on the health disparities that exist in urban areas nationwide, which is why we’ve remained focused on closing gaps where healthy food access is most needed, specifically for our low-income, youth, and senior populations.”
Healthy food initiatives
The Vertical Farming Program is part of the broader initiative from the World Economic Forum (WEF) toward partnerships with cities.
Jersey City is the first in the world to be selected by WEF to launch the Healthy City 2030 initiative, which aims to catalyze new ecosystems that will enable socially vibrant and health-centric cities and communities.
The vertical farming initiative is the latest and broadest effort Jersey City has launched around food access, including more than 5,000 food market tours for seniors to educate them on healthy eating, and the “Healthy Corner Store” initiative.
According to a 2018 city report, much of Jersey City could be described as a “food desert.”
The USDA defines a food desert as “a low-income census tract where either a substantial number or share of residents has low access to a supermarket or large grocery store.”
This means at least 500 people or 33 percent of the population live more than a mile from a supermarket or large grocery store.
According to the city, these deserts have led to an increased rate of diabetes, heart disease, obesity, and other diet-related illnesses in the more marginalized communities of Jersey City.
“We are thrilled that the vertical farms that will be installed at JCHA sites to enable some of our most vulnerable residents, including low-income households, children, and seniors, to have access to fresh, green produce that is nutritious, delicious, and easy to prepare,” said Vivian Brady-Phillips, director of the JCHA.
For updates on this and other stories check www.hudsonreporter.com and follow us on Twitter @hudson_reporter. Marilyn Baer can be reached at Marilynb@hudsonreporter.com.
Little Leaf Farms Raises $90M to Grow Its Greenhouse Network
Massachusetts-based Little Leaf Farms has raised $90 million in a debt and equity financing round to expand its network of hydroponic greenhouses on the East Coast. The round was led by Equilibrium Capital as well as founding investors Bill Helman and Pilot House Associates. Bank of America also participated.
by Jennifer Marston
Image from: Little Leaf Farms
Massachusetts-based Little Leaf Farms has raised $90 million in a debt and equity financing round to expand its network of hydroponic greenhouses on the East Coast. The round was led by Equilibrium Capital as well as founding investors Bill Helman and Pilot House Associates. Bank of America also participated.
Little Leaf Farms says the capital is “earmarked” to build new greenhouse sites along the East Coast, where its lettuce is currently available in about 2,500 stores.
The company already operates one 10-acre greenhouse in Devins, Massachusetts. Its facility grows leafy greens using hydroponics and a mixture of sunlight supplemented by LED-powered grow lights. Rainwater captured from the facility’s roof provides most of the water used on the farm.
According to a press release, Little Leaf Farms has doubled its retail sales to $38 million since 2019. And last year, the company bought180 acres of land in Pennsylvania on which to build an additional facility. Still another greenhouse, slated for North Carolina, will serve the Southeast region of the U.S.
Little Leaf Farms joins the likes of Revol Greens, Gotham Greens, AppHarvest, and others in bringing local(ish) greens to a greater percentage of the population. These facilities generally pack and ship their greens on the day of or day after harvesting, and only supply retailers within a certain radius. Little Leaf Farms, for example, currently servers only parts of Massachusetts, Pennsylvania, New York, and New Jersey.
The list of regions the company serves will no doubt lengthen as the company builds up its greenhouse network in the coming months.
Indoor Farming Gains Ground Amid Pandemic, Climate Challenges
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. Now, indoor farms are positioning themselves as one of the solutions to coronavirus pandemic-induced disruptions to the harvesting, shipping, and sale of food
Investors say urban farming can boost food security despite rising inflation, trade tensions and global food shortages.
Image from: Reuters via AppHarvest
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, Canada-based Elevate.
Now, indoor farms are positioning themselves as one of the solutions to coronavirus 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 US 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 US 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 Elevate to bolster indoor production and compete with established players BrightFarms, 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.
Image from: Reuters via AppHarvest
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 totalled a record-high $500m in 2020, AgFunder research head Louisa Burwood-Taylor said.
The average investment last year rose sharply, 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 accounting firm KPMG, which advises vertical farms and provides investment banking services.
“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. US sales of food crops grown under cover, including tomatoes, cucumbers and lettuce, amounted to 358 million kilogrammes (790 million pounds) in 2019, up 50 percent from 2014, according to the USDA.
California’s outdoor head lettuce production alone was nearly four times larger, at 1.3 billion kg (2.9 billion pounds).
Image from: Reuters via AppHarvest
The 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 $30m 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 startups 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 percent of the US 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.
Image from: Reuters via AppHarvest
New York-based BrightFarms, which runs four greenhouses, positions them near major US 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 US will come from indoor farms, up from less than 10 percent 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 sceptical 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 the country from California.
AeroFarms, operator of one of the world’s largest vertical farms, based in 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 farmers tout other environmental benefits.
Elevate uses a closed-loop system to water plants automatically, collect moisture that plants emit and then re-water them with it. Such a system requires two percent 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.
Agritech: Precision Farming With AI, IoT and 5G
For a company that grows and delivers vegetables, Boomgrow Productions Sdn Bhd’s office is nothing like a farm, or even a vertical farm. Where farms are bedecked with wheelbarrows, spades and hoes, Boomgrow’s floor plan is akin to a co-working space with a communal island table, several cubicles, comfortable armchairs, a cosy hanging rattan chair and a glass-walled conference room in the middle
Image from: Photo by Mohd Izwan Mohd Nazam/The Edge
For a company that grows and delivers vegetables, Boomgrow Productions Sdn Bhd’s office is nothing like a farm, or even a vertical farm.
Where farms are bedecked with wheelbarrows, spades and hoes, Boomgrow’s floor plan is akin to a co-working space with a communal island table, several cubicles, comfortable armchairs, a cosy hanging rattan chair and a glass-walled conference room in the middle.
At a corner, propped up along a walkway leading to a rectangular chamber fitted with grow lights, are rows of support stilts with hydroponic planters developed in-house and an agricultural technologist perched on a chair, perusing data. “This is where some of the R&D work happens,” says Jay Dasen, co-founder of the agritech start-up.
But there is a larger farm where most of the work behind this high-tech initiative is executed. Located a stone’s throw from the city centre in Ampang is a 40ft repurposed shipping container outfitted with perception technologies and artificial intelligence (AI) capabilities that mimic the ideal environment to produce more than 50,000kg of vegetables a year.
Stacked in vertical layers, Boomgrow’s vegetables are grown under artificial lights with Internet of Things (IoT) sensors to detect everything from leaf discolouration to nitrate composition. This is coupled with AI and machine learning algorithms.
Boomgrow is the country’s first 5G-connected vertical farm. With the low latency and larger bandwidth technology, the start-up is able to monitor production in real time as well as maintain key parameters, such as temperature and humidity, to ensure optimal growth conditions.
When Jay and her co-founders, K Muralidesan and Shan Palani, embarked on this initiative six years ago, Boomgrow was nowhere near what it is today.
The three founders got together hoping to do their part in building a more sustainable future. “I’ve spent years advising small and large companies on sustainability, environmental and social governance disclosures. I even embarked on a doctorate in sustainability disclosure and governance,” says Jay.
“But I felt a deep sense of disconnect because while I saw companies evolving in terms of policies, processes and procedures towards sustainability, the people in those organisations were not transforming. Sustainability is almost like this white noise in the background. We know it’s important and we know it needs to be done, but we don’t really know how to integrate it into our lives.
“That disconnect really troubled me. When we started Boomgrow, it wasn’t a linear journey. Boomgrow is something that came out of meaningful conversations and many years of research.”
Shan, on the other hand, was an architect who developed a taste for sustainable designs when he was designing modular structures with minimal impact on their surroundings between regular projects. “It was great doing that kind of work. But I was getting very dissatisfied because the projects were customer-driven, which meant I would end up having debates about trivial stuff such as the colour of wall tiles,” he says.
As for Murali, the impetus to start Boomgrow came from having lived overseas — while working in capital markets and financial services — where quality and nutritious produce was easily available.
Ultimately, they concluded that the best way to work towards their shared sustainability goals was to address the imminent problem of food shortage.
“By 2050, the world’s population is expected to grow to 9.7 billion people, two-thirds of whom will be in Asia-Pacific. Feeding all those people will definitely be a huge challenge,” says Jay.
“The current agricultural practice is not built for resilience, but efficiency. So, when you think of farming, you think of vast tracts of land located far away from where you live or shop.
“The only way we could reimagine or rethink that was to make sure the food is located closer to consumers, with a hyperlocal strategy that is traceable and transparent, and also free of pesticides.”
Having little experience in growing anything, it took them a while to figure out the best mechanism to achieve their goal. “After we started working on prototypes, we realised that the tropics are not designed for certain types of farming,” says Jay.
“And then, there is the problem of harmful chemicals and pesticides everywhere, which has become a necessity for farmers to protect their crops because of the unpredictable climate. We went through many iterations … when we started, we used to farm in little boxes, but that didn’t quite work out.”
They explored different methodologies, from hydroponics to aquaponics, and even started growing outdoors. But they lost a lot of crops when a heat wave struck.
That was when they started exploring more effective ways to farm. “How can we protect the farm from terrible torrential rains, plant 365 days a year and keep prices affordable? It took us five years to answer these questions,” says Jay.
Even though farmers all over the world currently produce more than enough food to feed everyone, 820 million people — roughly 11% of the global population — did not have enough to eat in 2018, according to the World Health Organization. Concurrently, food safety and quality concerns are rising, with more consumers opting for organically produced food as well as safe foods, out of fear of harmful synthetic fertilisers, pesticides, herbicides and fungicides.
According to ResearchAndMarkets.com, consumer demand for global organic fruit and vegetables was valued at US$19.16 billion in 2019 and is anticipated to expand at a compound annual growth rate (CAGR) of 6.5% by 2026.
Meanwhile, the precision farming market was estimated to be US$7 billion in 2020 and is projected to reach US$12.8 billion by 2025, at a CAGR of 12.7% between 2020 and 2025, states MarketsandMarkets Research Pte Ltd.
Malaysia currently imports RM1 billion worth of leafy vegetables from countries such as Australia, China and Japan. Sourcing good and safe food from local suppliers not only benefits the country from a food security standpoint but also improves Malaysia’s competitive advantage, says Jay.
Unlike organic farming — which is still a soil-based method — tech-enabled precision farming has the advantage of catering for increasing demand and optimum crop production with the limited resources available. Moreover, changing weather patterns due to global warming encourage the adoption of advanced farming technologies to enhance farm productivity and crop yield.
Boomgrow’s model does not require the acres of land that traditional farms need, Jay emphasises. With indoor farms, the company promises a year-round harvest, undisturbed by climate and which uses 95% less water, land and fuel to operate.
Traditional farming is back-breaking labour. But with precision technology, farmers can spend less time on the farm and more on doing other things to develop their business, she says.
Boomgrow has secured more than RM300,000 in funding via technology and innovation grants from SME Corporation Malaysia, PlaTCOM Ventures and Malaysia Digital Economy Corporation, and is on track to build the country’s largest indoor farms.
Image from: Boomgrow
The company got its chance to showcase the strength of its smart technology when Telekom Malaysia Bhd (TM) approached it to be a part of the telco’s Smart Agriculture cluster in Langkawi last October.
“5G makes it faster for us to process the multiple data streams that we need because we collect data for machine learning, and then AI helps us to make decisions faster,” Jay explains.
“We manage the farm using machines to study inputs like water and electricity and even measure humidity. All the farm’s produce is lab-tested and we can keep our promise that there are no pesticides, herbicides or any preserving chemicals. We follow the food safety standards set by the EU, where nitrate accumulation in plant tissues is a big issue.”
With TM’s 5G technology and Boomgrow’s patent-pending technology, the latter is able to grow vegetables like the staple Asian greens and highland crops such as butterhead and romaine lettuce as well as kale and mint. While the company is able to grow more than 30 varieties of leafy greens, it has decided to stick to a selection of crops that is most in demand to reduce waste, says Jay.
As it stands, shipping containers are the best fit for the company’s current endeavour as containerised modular farms are the simplest means of bringing better food to local communities. However, it is also developing a blueprint to house farms in buildings, she says.
Since the showcase, Boomgrow has started to supply its crops to various hotels in Langkawi. It rolled out its e-commerce platform last year after the Movement Control Order was imposed.
“On our website, we promise to deliver the greens within six hours of harvest. But actually, you could get them way earlier. We harvest the morning after the orders come in and the vegetables are delivered on the same day,” says Jay.
Being mindful of Boomgrow’s carbon footprint, orders are organised and scheduled according to consumers’ localities, she points out. “We don’t want our delivery partners zipping everywhere, so we stagger the orders based on where consumers live.
“For example, all deliveries to Petaling Jaya happen on Thursdays, but the vegetables are harvested that morning. They are not harvested a week before, three days before or the night before. This is what it means to be hyperlocal. We want to deliver produce at its freshest and most nutritious state.”
Plans to expand regionally are also underway, once Boomgrow’s fundraising exercise is complete, says Jay. “Most probably, this will only happen when the Covid-19 pandemic ends.”
To gain the knowledge they have today, the team had to “unlearn” everything they knew and take up new skills to figure what would work best for their business, says Jay. “All this wouldn’t have been possible if we had not experimented with smart cameras to monitor the condition of our produce,” she laughs.
Where Vertical Farming and Affordable Housing Can Grow Together
Some vertical farms grow greens in old warehouses, former steel mills, or other sites set apart from the heart of cities. But a new series of projects will build multistory greenhouses directly inside affordable housing developments
Some vertical farms grow greens in old warehouses, former steel mills, or other sites set apart from the heart of cities. But a new series of projects will build multistory greenhouses directly inside affordable housing developments.
“Bringing the farm back to the city center can have a lot of benefits,” says Nona Yehia, CEO of Vertical Harvest, a company that will soon break ground on a new building in Westbrook, ME, that combines a vertical farm with affordable housing. Similar developments will follow in Chicago and in Philadelphia, where a farm-plus-housing will be built in the Tioga District, an opportunity zone.
Inside each building, the ground level will offer community access, while the greenhouse fills the second, third, and fourth floors, covering 70,000 square feet and growing around a million pounds of produce a year. (The amount of housing varies by site; in Maine, there will be only 15 units of housing, though the project will create 50 new jobs.)
In Chicago, there may be a community kitchen on the first level. In each location, residents will be able to buy fresh produce on-site; Vertical Harvest also plans to let others in the neighborhood buy greens directly from the farm. While it will sell to supermarkets, restaurants, hospitals, and other large customers, it also plans to subsidize 10% to 15% of its harvest for local food pantries and other community organizations.
“By creating a large-scale farm in a food desert, we are creating a large source of healthy, locally grown food 365 days a year,” Yehia says.
Vertical Farming ‘At a Crossroads’
Although growing crops all year round with Controlled Environment Agriculture (CEA) has been proposed as a method to localize food production and increase resilience against extreme climate events, the efficiency and limitations of this strategy need to be evaluated for each location
Building the right business model to balance resource usage with socio-economic conditions is crucial to capturing new markets, say speakers ahead of Agri-TechE event
Image from: Fruitnet
Although growing crops all year round with Controlled Environment Agriculture (CEA) has been proposed as a method to localize food production and increase resilience against extreme climate events, the efficiency and limitations of this strategy need to be evaluated for each location.
That is the conclusion of research by Luuk Graamans of Wageningen University & Research, a speaker at the upcoming Agri-TechE event on CEA, which takes place on 25 February.
His research shows that integration with urban energy infrastructure can make vertical farms more viable. Graamans’ research around the modelling of vertical farms shows that these systems are able to achieve higher resource use efficiencies, compared to more traditional food production, except when it comes to electricity.
Vertical farms, therefore, need to offer additional benefits to offset this increased energy use, Graamans said. One example his team has investigated is whether vertical farms could also provide heat.
“We investigated if vertical farms could provide not just food for people living in densely populated areas and also heat their homes using waste heat. We found that CEA can contribute to stabilizing the increasingly complex energy grid.”
Diversification
This balance between complex factors both within the growing environment and wider socio-economic conditions means that the rapidly growing CEA industry is beginning to diversify with different business models emerging.
Jack Farmer is CSO at vertical producer LettUs Grow, which recently launched its Drop & Grow growing units, offering a complete farming solution in a shipping container.
He believes everyone in the vertical farming space is going to hit a crossroads. “Vertical farming, with its focus on higher value and higher density crops, is effectively a subset of the broader horticultural sector,” he said.
"All the players in the vertical farming space are facing a choice – to scale vertically and try to capture as much value in that specific space, or to diversify and take their technology expertise broader.”
LettUs Grow is focussed on being the leading technology provider in containerised farming, and its smaller ‘Drop & Grow: 24’ container is mainly focussed on people entering the horticultural space.
Opportunities in retail
“This year is looking really exciting,” he said. “Supermarkets are investing to ensure a sustainable source of food production in the UK, which is what CEA provides. We’re also seeing a growth in ‘experiential’ food and retail and that’s also where we see our Drop & Grow container farm fitting in.”
Kate Hofman, CEO, GrowUp agrees. The company launched the UK’s first commercial-scale vertical farm in 2014.
“It will be really interesting to see how the foodservice world recovers after lockdown – the rough numbers are that supermarket trade was up at least 11 per cent in the last year – so retail still looks like a really good direction to go in.
“If we want to have an impact on the food system in the UK and change it for the better, we’re committed to partnering with those big retailers to help them deliver on their sustainability and values-driven goals.
“Our focus is very much as a salad grower that grows a fantastic product that everyone will want to buy. And we’re focussed on bringing down the cost of sustainable food, which means doing it at a big enough scale to gain the economies of production that are needed to be able to sell at everyday prices.”
Making the Numbers Add Up
The economics are an important part of the discussion. Recent investment in the sector has come from the Middle East, and other locations, where abundant solar power and scarce resources are driving interest in CEA. Graamans’ research has revealed a number of scenarios where CEA has a strong business case.
For the UK, CEA should be seen as a continuum from glasshouses to vertical farming, he believes. “Greenhouses can incorporate the technologies from vertical farms to increase climate control and to enhance their performance under specific climates."
It is this aspect that is grabbing the attention of conventional fresh produce growers in open field and covered crop production.
A Blended Approach
James Green, director of agriculture at G’s, thinks combining different growing methods is the way forward. “There’s a balance in all of these systems between energy costs for lighting, energy costs for cooling, costs of nutrient supply, and then transportation and the supply and demand. At the end of the day, sunshine is pretty cheap and it comes up every day.
“I think a blended approach, where you’re getting as much benefit as you can from nature but you’re supplementing it and controlling the growth conditions, is what we are aiming for, rather than the fully artificially lit ‘vertical farming’.”
Graamans, Farmer and Hofman will join a discussion with conventional vegetable producers, vertical farmers and technology providers at the Agri-TechE event ‘Controlled Environment Agriculture is growing up’ on 25 February 2021.
Living Greens Farms Ramps Up Midwest Expansion
Living Greens Farm has upped its retail distribution with the addition of UNFI Produce Prescott, a division of United Natural Foods, Inc (UNFI)
Feb. 18th, 2021
by Melissa De Leon Chavez
FARIBAULT, MN - Living Greens Farm (LGF) has upped its retail distribution with the addition of UNFI Produce Prescott, a division of United Natural Foods, Inc. (UNFI). This new retail partnership will help LGF expand its product reach to independent, specialty, and co-op retailers throughout the upper Midwest.
According to a press release, LGF’s proprietary vertical indoor farming method yields high-quality, fresh produce. No pesticides or chemicals are used during the growing process. Throughout the growing, cleaning, and bagging process, LGF reduces handling and time to the retail shelf. All of these benefits continue to attract new users and new retail distribution.
Living Greens Farm has upped its retail distribution with the addition of UNFI Produce Prescott, a division of United Natural Foods, Inc (UNFI)
Beginning this month, LGF’s full line of products featuring ready-to-eat bagged salad products, such as Caesar Salad Kit, Southwest Salad Kit, Harvest Salad Kit, Chopped Romaine, and Chopped Butter Lettuce will be carried by UNFI Produce Prescott (formerly Alberts Fresh Produce).
Across the nation, UNFI has eight warehouses, and LGF’s products will be carried by its upper Midwest location, located just across the river from the Twin Cities in Prescott, Wisconsin.
As indoor farming becomes more popular, who will Living Greens Farm partner with next?
Stay tuned to AndNowUKnow as we cover the latest.
COMPANIES IN THIS STORY
We believe in revolutionizing how produce is grown throughout the world. Our products are fresh, local, and pesticide-free....
UNFI
UNFI is the leading independent national distributor of natural, organic and specialty foods and related products...
How This Vertical Farm Grows 80,000 Pounds of Produce per Week
To some, the pristine growing conditions and perceived mechanical interference of a vertical farm can seem unnatural, but at Bowery Farming “interference” is actually not the goal at all. “We don’t really think about how people are involved in the growing process, but how to take people out of the growing process”
Bowery Farming uses technology to prioritize accessibility and sustainability in their produce growing operations
To some, the pristine growing conditions and perceived mechanical interference of a vertical farm can seem unnatural, but at Bowery Farming “interference” is actually not the goal at all. “We don’t really think about how people are involved in the growing process, but how to take people out of the growing process” says chief science officer Henry Sztul. “Our goal is actually to have as few people walking around our plants as possible.”
Bowery Farming is a network of vertical farms working to reengineer the growing process. Using a system of light and watering technology, Bowery is able to use 95 percent less water than a traditional outdoor farm, zero pesticides and chemicals, and grow food that tastes as good as anyone else’s.
Bowery Farming uses vertical farm-specific seeds that are optimized for flavor instead of insect resistance and durability. Seeds are mechanically pressed into trays of soil, and sent out into growing positions, or racks within the building that have their own lighting and watering systems. Each tray gets its own QR code so that they can be monitored and assigned a customized plan for water and light until they’re ready to be harvested.
Irving Fain, Bowery Farming’s founder and CEO contemplates the prediction from the United Nations that 70 to 80 percent of the world’s population will be living in and around cities in the next 30 years. “Figuring out ‘how do you feed and how do you provide fresh food to urban environments both more efficiently as well as more sustainably?’ is a very important question today, and an even more important question in the years to come.”
Indoor Farming Company With Backing From Ubben Aims to Solve The Problems With America’s Produce
The agriculture technology company focuses on building an indoor farm in Appalachia. The company combines agricultural techniques with cutting-edge technology and including access for all to nutritious food, farming, and building a homegrown food supply. The company operates a 60-acre controlled environment, agriculture facility in Morehead, Kentucky, which grows juicy beefsteak tomatoes and tomatoes on the vine
Image from: AppHarvest
Company: AppHarvest Inc. (APPH)
The agriculture technology company focuses on building an indoor farm in Appalachia. The company combines agricultural techniques with cutting-edge technology and including access for all to nutritious food, farming, and building a homegrown food supply. The company operates a 60-acre controlled environment, agriculture facility in Morehead, Kentucky, which grows juicy beefsteak tomatoes and tomatoes on the vine. It also operates a 60-acre indoor farm, outside Richmond, Kentucky, where it cultivates fresh fruits and veggies.
The company’s technological systems monitor the pollination across all 68 bays and 684 rows of plants. AppHarvest is only the fourth U.S. public Certified B corporation. A B corporation is a company that has (1) achieved a high standard of social and environmental performance as measured by the B Impact Assessment, (2) verified their scores through transparency requirements, and (3) made a legal commitment to consider all stakeholders, not just shareholders. Any company can apply to be one.
Stock Market Value: $3.3 billion ($33.26 per share)
Image from: CNBC
Activist:
Inclusive Capital
Percentage Ownership:
12.05%
Average Cost:
n/a
Activist Commentary:
Inclusive Capital Partners was formed in 2020 by ValueAct founder Jeff Ubben, to leverage capitalism and governance in pursuit of a healthy planet and the health of its inhabitants. The firm seeks long-term shareholder value through active partnership with companies whose core businesses contribute solutions to this pursuit. Inclusive is a returns driven fund with a focus on environmental and social investing.
Their primary focus is on environmental and social value creation, which leads to shareholder value creation. It is the successor to the ValueAct Spring Fund, which was launched in January 2018 and merged into Inclusive in 2020.
Inclusive is building a huge network and has accessed experts in industries such as energy, electrification, water, agriculture, food production, particulates, education and human rights. Just like ValueAct’s constructive, patient investment style, Inclusive will seek to earn the trust of managers, board members and institutional investors.
Jeff Ubben serves as the portfolio manager and Eva Zlotnicka serves as vice president. Eva has a pre-existing relationship with ValueAct through their interactions with Morgan Stanley, where she served as a VP and U.S. lead for the Global Sustainability Research Team. At Morgan Stanley, she worked to help address and raise awareness of environmental and social issues both inside and outside of corporations.
What’s Happening:
Jeff Ubben was appointed to the company’s Board in connection with the company’s business combination with Novus Capital.
Behind the Scenes:
This was initially an investment of ValueAct Spring Fund, which was converted into Inclusive Capital in 2020. Jeff Ubben first met AppHarvest founder Jonathan Webb in 2017 and has been involved with the company since the 2018 Series A round, working with Webb to put the management team together and develop a strong balance sheet. The company went public on February 1, 2021 through a $100 million SPAC transaction and a $375 million PIPE investment. Jeff Ubben is on the board where he can continue to help the company execute.
AppHarvest plans on having 12 facilities by 2025. The goal here is to make Kentucky the Netherlands of North America. The Netherlands (at 16,000 square miles) is the second largest agricultural exporter in the world, using greenhouse technology to feed two-thirds of all of Europe. In comparison, the state of Kentucky is 40,000 square miles and the US is 3.8 million square miles. AppHarvest’s motivation is first and foremost to benefit society, but if successful would have extraordinary financial returns as well.
As of 2018, 69% of fresh vine crops in the U.S. were imported, mostly from Mexico. These crops are pesticide-laden and grown using labor practices not up to U.S. standards. Moreover, they sit at the border for days and are driven 2,000+ miles to their destination, using tons of diesel fuel and resulting in less fresh produce. AppHarvest produces crops with no pesticides with greater nutrient density, and from their central location can reach 70% of the U.S. population in one day resulting in 80% less diesel fuel and much lower emissions. However, the larger environmental and economic benefit is in how the crops are grown — using 90% less water and yielding thirty times more per acre.
Moreover, AppHarvest’s resources are nature based – the greenhouse structure allows them to use 12 hours of sunlight per day and they collect the heavy Kentucky rainfall for their system resulting in a much less adverse effect on the water supply while greatly decreasing their cost of production by not having to pay for water. The greenhouse system also eliminates any weather or seasonal constraints, allowing the company to grow more efficiently 365 days per year.
While the company has no historic revenue, they just made their first delivery of beefsteak tomatoes on January 19, 2021, to customers that include Walmart, Kroger and Publix
Yasai To Establish First Zürich Vertical Farm, Strategic Partnership Announced
iFarm with Yasai AG (Switzerland) and Logiqs B.V. (Netherlands) are proud to announce the beginning of a long-term cooperation. With the launch of the first vertical farm project in Zurich, Yasai AG announced the signing of a strategic agreement with equipment and tech suppliers
Image from: Urban Ag News
iFarm with Yasai AG (Switzerland) and Logiqs B.V. (Netherlands) are proud to announce the beginning of a long-term cooperation.
With the launch of the first vertical farm project in Zurich, Yasai AG announced the signing of a strategic agreement with equipment and tech suppliers. The company involved Logiqs and iFarm as technology partners in the construction of a pilot facility, with 673 sq. m of growing area and with a design capacity of 20 tons of fresh herbs per year.
The Dutch company Logiqs will act as a supplier of automated shelving systems and grow lights. iFarm will supply the nutrient solution management system, climate control equipment, and the Growtune software platform which enables flow chart implementation and control over production conditions and processes. Going forward, the partners plan to scale up the experience of rapidly constructing an automated, compact, high-performance vertical farm, gained in a Swiss project, across the globe.
Image from: Urban Ag News
Mark Essam Zahran (co-founder Yasai):
The project will not just be limited to the testing and fine-tuning of state-of-the-art innovative solutions. We expect to lay the groundwork for large-scale industrial vertical farming in smart cities and showcase the incredible benefits of a circular economy. A plantation in the largest Swiss city, one of the most expensive cities in the world, will help us assess the economic prospects and give other European cities an example of how to produce an abundant yield without harming the planet, plants, and people.
Gert-Jan van Staalduinen (owner Logiqs):
The Swiss project opens up interesting prospects for us. We expect a fruitful collaboration with Yasai experts and a beneficial exchange of best practices with iFarm. With our vast experience in implementing automation and logistics systems on farms, we will be able to build a technologically advanced farm in the very heart of Europe.
Kirill Zelenski (CEO iFarm Europe):
We appreciate how meticulous and scrupulous Yasai is and are impressed by their passion and drive. We are just as inspired by the prospect of working with seasoned professionals from Logiqs. We hope that our software technologies will perfectly complement their hardware and the project as a whole will become a lasting benchmark for the industry and will serve as the beginning of a long-term cooperation.
