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Infarm Appoints Crop Genetics Specialist
Berlin-based urban farming specialist Infarm has appointed plant geneticist Pádraic Flood to lead its crop genetics team and help adapt various staple crops for vertical farming.
By Fred Searle
August 4, 2021
Berlin-based urban farming specialist Infarm has appointed plant geneticist Pádraic Flood to lead its crop genetics team and help adapt various staple crops for vertical farming.
A former research scientist at Wageningen University and the renowned Max Planck Institute for Plant Breeding Research, Flood will spearhead Infarm’s ongoing efforts to improve the quality, flavour and freshness of its vertically farmed produce.
Flood has a PhD from Wageningen in natural genetic variation in plant photosynthesis, and over the past decade he has used genetics to understand a range of key scientific questions ranging from photosynthesis to how plants adapt to extreme environments.
At Infarm he will lead the development of a breeding programme to adapt grains, legumes and other staple crops for vertical farming.
The company said the aim of the programme is to help return the land currently devoted to these staples to nature and biodiversity, while trying to have a positive impact on both people and the planet through more sustainable agriculture.
Infarm was founded in Berlin in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska.
With a multinational team of more than 1,000 people globally, the vertical farming business has partnered with more than 30 major food retailers around the world.
To date, it has deployed more than 1,300 ‘in-store ‘farms’ as well as large-scale Growing Centres, producing various herbs, micro greens and leafy greens.
It claims to have saved more than 60 million litres of water and 60,000 square metres of land when compared with conventional production.
Lead Photo: Pádraic Flood will lead development of breeding programme to adapt grains, legumes and other staple crops for vertical farming
Vertical Gardening: A Modern Farming Method
Many of our communities are transforming into industrial and urban centres as the earth’s population increases. This growth, coupled with climate change, poses new challenges to the human populace to produce enough food as farmland acreage decreases and consumers’ demands increase.
July 25, 2021
Many of our communities are transforming into industrial and urban centres as the earth’s population increases. This growth, coupled with climate change, poses new challenges to the human populace to produce enough food as farmland acreage decreases and consumers’ demands increase.
Over the past decade, scientists and agronomists have been developing methods to produce double or triple the amount of food, using the same scale of land or less a farmer may cultivate. One of these approaches currently gaining much attention and adaptation is the vertical gardening or farming method.
NAREI staff harvesting and inspecting various crops planted in the vertical stack stand model, using PVC gutters
The notion of farming indoors is not strange to us, since greenhouse agricultural systems have been widely adopted for some time now. These houses have been used for years, providing conditions for numerous commercial crops (such as tomatoes, strawberries, peppers, and cucumbers) to thrive at its maximum production index. Cultivating under shaded facilities compared to outdoor farming fields can aid in year-round production, but few or none of these greenhouses have been constructed as multi-storey facilities.
Vertical farming is a method that uses vertically inclined surfaces to produce food, instead of the traditional method of growing vegetables on a single level in a greenhouse or open field. The National Agricultural Research and Extension Institute (NAREI) is currently evaluating the cost and productivity of various vertical-farming models. The experiment is being conducted at NAREI’s compound, Mon Repos, ECD.
NAREI staff harvesting and inspecting various crops planted in the vertical stack stand model, using PVC gutters
The vertical models installed under the tunnel house are: vertical stack stand using PVC gutters, vertical trellis made of nylon, barrel model using recycled plastic drums, and vertical wall using recycled plastic bottles.
Using vertical farming techniques have numerous advantages, such as: year-round production; reducing soil erosion and runoffs; maximising the use of abandoned structures or unused spaces; minimising crop failures due to harsh weather conditions and reduces the use of fossil fuels, since less farm mechanisation is needed. It also creates new urban employment openings; adds energy back to the grid via methane generation; returns farmlands to nature, aiding in restoring ecosystem functions; reduces pest and disease indices; reduces the need for abundant use of pesticides and herbicides, and offers the possibility of a sustainable food-production engine for our communities.
The experiment is being done to ascertain yields of a wide variety of crops needed to sustain large populations, without exhausting existing resources. With the success of this study, local households in Guyana can better utilise yard space to produce their foods at a cheaper cost and local farmers can increase productivity to reach consumer demand. In addition to that, this method can be utilised to combat major challenges faced due to climate variation in Guyana, such as flooding.
Farm Tech Investing Is Accelerating Faster Than Ever – New Report
‘Farm tech’ investing soared to $7.9 billion in 2020, topping 2019 investments by $2.3 trillion, or 41%, according to AgFunder’s latest Farm Tech Investment Report.
By Jessica Pothering & Louisa Burwood-Taylor
August 4, 2021
We’ve been watching the surge of investor interest in upstream, close-to-the-farm technologies since the Covid-19 pandemic started. We now have numbers that show just how significant that farm tech investor interest is.
‘Farm tech’ investing soared to $7.9 billion in 2020, topping 2019 investments by $2.3 trillion, or 41%, according to AgFunder’s latest Farm Tech Investment Report. [Disclosure: AgFunder is AFN‘s parent company.]
To put this in perspective, farm tech’s acceleration was about six percentage points greater than agrifoodtech overall — that’s foodtech and farm tech combined — and 37 percentage points higher than global VC’s year-over-year increase in 2020 (which Crunchbase pegged at just 4%.)
Much of the investment activity was led by two sectors: Ag Biotechnology and Novel Farming Systems (mostly the indoor farming of crops and insects). Investors pumped more than $1.5 billion into each category. Ag Biotech companies attracted particular interest from investors: 173 deals closed, representing 58% growth from 2019. Novel Farming Systems deal activity grew by 47% year-over-year.
As difficult as 2020 was globally (2021 hasn’t been pretty in many parts of the world), the pandemic seems to have buoyed farm tech because it “exposed cracks in the industrial agricultural system,” particularly the vulnerability of the food supply chain, Infarm’s CEO Erez Galonza told AFN in an interview featured in the report. The German hyper-local vertical farming venture, whose modular units can be found in grocery stores across Europe, secured $170 million from investors last year.
“[The pandemic] highlighted the need for resilient, localized solutions,” he added.
Farm tech funding 2012-2020
Yellow bar denotes projected total by end of 2021 as more 2020 data come to light. Credit: AgFunder
SPACs for best-funded farm tech categories
Perhaps the biggest winner, in that sense, was US-based high-tech greenhouse operator, AppHarvest. The company announced plans to go public last September via a special purpose acquisition company, or SPAC. It officially listed on the Nasdaq stock exchange in January, just weeks after shipping its first harvest.
AppHarvest recently purchased robotics leader and AgFunder portfolio company Root AI, making founder Josh Lessing the publicly listed company’s new CTO. Read more here.
AppHarvest kicked off a SPAC trend for Farm Tech companies, and Novel Farming ventures specifically. We’ve since seen four other agrifoodtech companies announce plans to go public through SPACs: agbiotech companies Benson Hill and Gingko Bioworks and novel farming ventures AeroFarms and Local Bounti. (Keep up to date with agrifoodtech SPAC news here.)
It is interesting to see public listing activity happening in the two agrifoodtech sectors that surged the most in terms of deal activity last year; it signals that there could be more to come if the process proves successful for these early case studies. For now, it’s certainly providing an exit opportunity to early agtech ventures that bet on deep technologies requiring significant amounts of time (and certainly hefty commitments of resources) to become revenue-generating, much less profitable.
That in and of itself is a significant milestone for a maturing agtech industry.
Pandemic pivots
It isn’t all about Ag Biotech and Novel Farming Systems; the biggest deals of 2020 were in the Agribusiness Marketplace sector. Boston-based Indigo Ag raised two investment rounds, totaling $535 million last year, and San Carlos, Calif.-based Farmers Business Network raised $250 million.
Indigo Ag’s executive team told AFN that because it deals directly with the food supply chain, the company confronted an immediate shock from the pandemic.
“The global pandemic was an external challenge that required our team, like many others, to quickly adapt to ensure that our customers and employees were supported,” they said in a special interview featured in the report. “While we were fortunate that our operations were not significantly impeded by the pandemic, we did have to quickly expand our support services and tap our creativity to enable our farmers, buyers and partners to manage their business with confidence during the early stages of Covid-19.”
The company launched a transport support hotline for grain growers, carriers and shippers to ensure the supply of grain could continue to move as efficiently as possible. It also focused on developing pricing tools, access to grain marketing advisors, and even a podcast to help growers grapple with pandemic-related market volatility.
Indigo Ag isn’t a stranger to unchartered business terrain. The company has put itself in the middle of the evolving but murky carbon markets. “With new players entering the carbon space nearly weekly – many taking less rigorous approaches to verification and measurement – Indigo has remained steadily focused on enabling farmers to make informed decisions about how, when and why to participate in the carbon market,” the Indigo Ag team told AFN.
They added: “By leveraging our scientific insight, technological capabilities, and use of industry-leading carbon accounting protocols, Indigo ensures farmers are supported with the right tools and information to take advantage of the opportunity to raise a new and increasingly valuable crop: carbon.”
Food’s sustainable future
Verification of carbon-capture accounting is indeed getting increased attention and scrutiny. It’s likely to be a key theme in the agriculture industry going forward, and it’s one of AgFunder’s key trends to watch in 2021, alongside overall food system sustainability.
“We can invent a new, sustainable food industry, feeding the planet all the while protecting its biodiversity, and combatting climate change,” the executive team behind French insect farming venture Ynsect told AFN. The company sees insects as a crucial component of food’s sustainable future.
“Insects can aid food security and be a part of the solution to food shortages, given their high nutritional value, low requirements for land and water, low emissions of greenhouse gases, and the high efficiency at which they can convert feed into food,” the Ynsect team argued in an interview featured in the report.
Investors seem to agree: Ynsect scored the largest amount of funding in the novel farming sector in 2020, raising $222 million in 2020, taking its Series C total to $372 million, to build an industrial-sized farm for its Molitor mealworms near the city of Amiens. Ynsect went on to acquire Dutch insect farming company Protifarm in April of this year.
Many of the world’s consumers may as yet be skeptical of insects as a protein source. But consumer consciousness and demand for high-quality, low-environmental impact foods is certainly a trend influencing the evolution of Farm Tech, as evidenced by the range of startups that attracted funding in 2020.
Ag Biotech ventures like Benson Hill, GreenLight Biosciences, and Pivot Bio secured investor backing for helping to diversify crop input technology away from environmentally-harmful synthetic chemicals.
Novel Farming ventures are developing highly efficient and resource-conservative approaches to growing fresh foods.
Farm Management Software, Sensing & IoT companies like ICEYE, Aclima and Cervest are illuminating climate change impacts and helping companies anticipate and forecast climate-related disruptions.
Food preservation technologies like Apeel Sciences’s are helping reduce food waste, as are e-grocery services like Misfits Market and Imperfect Foods, which sell “ugly produce” that would otherwise be wasted among their fresh foods and grocery offerings.
Companies like Celtic Renewables are turning farm waste into a resource through the production of biofuels.
“As companies increasingly make commitments to improve their environmental impact – and governments at all levels enact policies to encourage climate-smart agriculture,” said the Indigo Ag team, “the opportunity for agriculture to act as a climate solution will only become more apparent.”
Welcome To Our Farm Within A Farm
But now all of the hard work and waiting has come to fruition as we are now ready to welcome you into our new Micro Farm: A Farm Within a Farm.
August 5, 2021
What is CEA?
Over the past year or so you may have heard us at Vertical Harvest referring to our “conversion” project – the construction of which has been the cause of some product delays and shortages. But now all of the hard work and waiting has come to fruition as we are now ready to welcome you into our new Micro Farm: A Farm Within a Farm.
The idea emerged when we noticed an increase in demand from our local chefs and grocery stores to supply more microgreens and petite greens. This happened to align with an internal ambition we have been fostering to implement a fully Controlled Environment Agriculture (CEA) system within our greenhouse. The new compartment has 4,000 sq feet of rack systems growing micro and petite greens fully independent of the whims of nature.
This farm is our next iteration for creating efficient and scalable growing systems. As we are seeing greater fluctuations in our local and national climates it has become increasingly important to us to delve into the capabilities of a growing system that is fully self-contained and not dependent on external changes in light and temperature. Instead, the greens will be nurtured in light and temperature conditions that are ideal to their growth cycles. This space has also increased our greenhouse production by 200%, meaning we can get our community more of the greens it loves both at home and when dining out.
Though our Maine greenhouse will incorporate some different technology, it will have a tray system that is very similar to this new compartment; so we have also reserved a portion of this new space to trial products and improve growing methods to ensure that our Westbrook greenhouse will have all the resources and information needed to hit the ground running when it plants its first seeds. We are already growing in the new space, training our employees on the new system, and getting our greens to customers. Vertical Harvest has always integrated different techniques and changed to growing demands, this project has been challenging and rewarding and will go on to influence all of our future greenhouses.
How Next-Gen Agri-Techniques Could Deliver Multi-Fold Productivity Gains And Combat Hunger In India
We have come across hydroponics, where plants are grown in inert medium like rocks or coir and are fed with nutrient rich water is probably the most well researched method. And there is aquaponics, where fish are reared in water along with plants.
By Dr. Richard Lobo
August 3, 2021
In the early 1700s, Thomas Jefferson wrote in a letter to George Washington, “Agriculture is our wisest pursuit because it will, in the end, contribute most to real wealth, good morals, and happiness.”
Farming has, over the years, changed the course of human civilisation, and then we took on a high premium on land as a key factor of agricultural production. The quality of soil, its fertility, nurture, and value has been a key social and political conversation over centuries.
Over the ages, advances were recorded through mechanisation, irrigation, and fertilisers, and all revolved around improving land and soil quality. However, the latest advances of today are bringing the centrality of land itself in question.
Yes, we are talking about farming practices and methods that do not use land at all. We have come across hydroponics, where plants are grown in inert medium like rocks or coir and are fed with nutrient rich water is probably the most well researched method. And there is aquaponics, where fish are reared in water along with plants.
However, the most interesting among them is aeroponics – growing of plants in air, with the roots not touching the soil but getting their nutrients and water from a nutrient laden mist that is created around the roots periodically.
This method of agriculture was conceived in order to find a way of growing food in space. While the term was coined by Dutch biologist Frits Warmolt in 1957, it only saw some traction in the mid-eighties when patents were filed and aeroponically food was sold in European markets.
Today Asian countries like Vietnam are adopting aeroponics in a big way for a low cost certified disease-free organic produce.
The global Aeroponics market was valued at $578.70 million in 2018, and is projected to reach $3.53 billion by 2026, growing at a CAGR of 25.60 percent from 2019 to 2026.
While not much data is available for aeroponics in India, we can get an idea from how the hydroponics market in the country is expected to grow at a compound annual growth rate (CAGR) of 13.53 percent between 2020 and 2027, according to a report by DataM Intelligence.
Less land and scalable agriculture
Aeroponics technique is also known as vertical farming as the crops can be grown in vertically stacked layers in smaller spaces. This gives a huge opportunity for farmers with smaller land holdings to grow crops in enclosed places by taking away the primacy of land and its cyclicality out of the equation. It also allows farming without lower capital investment as much less land is required.
In a predominantly agrarian country like India, aeroponics holds the potential to contribute to the development of the sector and boost production. The technique requires only 10 percent of the area traditional farming needs.
According to NASA, aeroponically grown plants can be harvested three times faster and the yields are more consistent. As nutrients are sprayed onto the plants and roots, and there's plenty of oxygen and other gases in the growing chamber for roots to absorb.
There are a wide variety of fruits and vegetables that can be grown using aeroponics system. Cucumbers, tomatoes, leafy vegetables, pumpkins, gourds, melons, strawberries, and various herbs can be grown with the help of these techniques in closed spaces.
Less water and sustainable farming
Farming in closed spaces has other advantages. Since nutrients are delivered through a mist, water usage is low. Aeroponics uses almost 90 percent less water than in traditional farming. Also, due to the controlled environment and better use of space, aeroponic farms are able to reduce the carbon footprint of food production.
Farming in a confined space gives the farmer control over pest and locust attacks and sudden heat waves.
In a country like India, space is always an issue. There is a constant pressure on agricultural land and its conversion to other uses and we are losing about 3,000 acres of farmland to real estate or industrial development every day. With Aeroponics the discussions around farming can move away from land constraints to focussing more on sustainable farming techniques.
Sustainability will be a key factor in India’s farming future. India may face devastating climate change effects, including killer heat waves and severe floods, in the next 80 years, says a recent study published in the journal 'Earth Systems and Environment'. The effects of climate change are now becoming severe at an alarming rate.
A farming system that uses less water, operates in a controlled environment leading to lesser wastage can be a boon for the cause of sustainability, especially in a populous country like India.
As aeroponics promises to solve multiple problems through its innovative approach to farming and it is time the technology got its due attention.
AeroFarms' David Rosenberg Discusses Growth, Investment, and More
From diving into publicly traded waters and launching a rebrand to introducing several new items and opening a research and development (R&D) hub, it’s safe to say that AeroFarms has come farther than CEO and Co-Founder David Rosenberg envisioned since the beginning days of 2004.
By Melissa De Leon Chavez
July 29, 2021
NEWARK, NJ - From diving into publicly traded waters and launching a rebrand to introducing several new items and opening a research and development (R&D) hub, it’s safe to say that AeroFarms has come farther than CEO and Co-Founder David Rosenberg envisioned since the beginning days of 2004.
David Rosenberg, Co-Founder and Chief Executive Officer, AeroFarms
“When I co-founded the company, I thought of this as a supply chain play. I looked at the inefficiencies and thought, if we could enable local food production at scale, we could disintermediate parts of the supply chain and enable local food production and access to fresh food, starting with leafy greens,” David shares with me.
Fast-forward to today, and AeroFarms is consistently breaking ground, physically and conventionally, in the U.S. and overseas.
“Our new AeroFarms AgX project in Abu Dhabi is two-fold. One, we expect to have a strong presence in the Middle East. Two, it aligns with our value proposition where there's not much farmland. There's not as much fresh water and there's relatively low-cost, abundant energy. Additionally, we're using our presence there to really innovate. We're building the world’s largest indoor vertical farming R&D facility of its kind that is going to have a tremendous amount of innovation in it, from genetics to automation exploration,” he tells me. “We're also doing a lot in the U.S. We just opened a building expansion here in Newark where we have our global headquarters. That's another 25,000-square-foot facility for prototyping and R&D, so we have much going on Stateside as well.”
AeroFarms has revealed several advancements, from diving into publicly traded waters and launching a rebrand to introducing several new items and opening a new research and development (R&D) hub
AeroFarms has a diverse, partner-fueled style that can be seen blueprinted in David's own background. Far from a straight line to agriculture, the executive was drawn to the produce industry by a love of problem-solving.
“My last company was a nanotech company in construction, which focused specifically on waterproofing and corrosion inhibition. From that I learned how much water goes to agriculture and thought I could make a difference. I love when there could be technological solutions to existing issues, and it’s a pattern I have found across industries,” David imparts.
With a background as a multi-business serial entrepreneur from Columbia Business School, it’s no wonder that David and his team have an unorthodox approach to indoor ag, employing several outside minds to expand laterally and vertically the possibilities of the industry.
“What surprised me is that fully controlled agriculture enables us to understand and give a plant exactly what it wants, when it wants, and how it wants it. As a consequence, we're competing on taste and texture in unique ways. So, I used to think our competitive advantage was local and fresh when, it turns out, we have unique tastes that allow us to go further and distinguish us from any other grower out there,” the CEO and Co-Founder muses.
AeroFarms most recently expanded its leafy greens product assortment for both baby leafy greens and microgreens as it seeks to redefine indoor-grown fresh produce and all it could impact
It's the result of having a team comprised of skilled farmers, plant geneticists, and R&D scientists that pushed the company into a whole new ring of investing: public trading.
“One of the reasons we're going public is it allows us to continue innovating on the tech side and make continued advancements to reduce capital cost, operating costs, and improve quality. We are investing millions a year in R&D. AeroFarms is involved in some cutting-edge, pioneering work, which attracts a lot of interest in this space. We’re also working with other big companies to accelerate innovation cycles, such as Dell and others—companies you don't typically associate with agriculture. We're partnering with them and developing some breakthrough stuff,” David points out, bringing us back to thinking out of the box and of traditional teams.
Among the areas AeroFarms is looking to further transform includes automation across seeding, harvesting, cleaning, packaging, and beyond, as well as biological development, working to understand what plants need to help realize their full potential.
“There's a strong lens towards technical innovation. I see a lot of players in the industry looking at produce as an execution play, not realizing there's a lot more room to reduce capital and operating costs,” he shares.
It is in that spirit that AeroFarms has continued to launch new products, most recently expanding its leafy greens product assortment for both baby leafy greens and microgreens, as it seeks to redefine not just indoor-grown fresh produce, but all it could impact.
AeroFarms is looking to further transform areas such as automation across seeding, harvesting, cleaning, packaging, and beyond, as well as biological development.
“We're very mission focused,” David concludes of the company’s driven success. “We have a program with past offenders where we've successfully taken people who were previously incarcerated and given them good jobs with a better pathway in life. We also have internal programs where computer literacy and financial literacy training continue to foster growth. Environmentally, we're focused on how to do more with less. How do we continue to grow a plant using less energy, less water, less nutrients, and zero pesticides? I think these commitments and our mission to grow the best plants possible for the betterment of humanity are why we're attracting so many new employees as we seek to build a better future.”
As we continue to eye such movers and shakers throughout fresh produce, continue to follow AndNowUKnow.
Common Farms (Hong Kong): “It's A Marathon And Not A Sprint For Us”
The product demand keeps growing. Inevitably, the pandemic has accelerated this demand for food quality and availability in Hong Kong.
By Rebekka Boekhout
July 23, 2021
The product demand keeps growing. Inevitably, the pandemic has accelerated this demand for food quality and availability in Hong Kong. “I think it’s because of the following reasons. One being that Common Farms can deliver with consistency, speed, and quality. Secondly, as people aren’t traveling they have disposable income to spend locally. The customers we serve are booked out for months. Lastly, pricing for imported produce fluctuates, which over time has a great impact on our customers.”
Lead Photo: Jessica Fong
Read the rest of the article here!
Success Story: Fork Farms Putting Down Roots In Wisconsin
Fork Farms was founded in 2010 as an independent contractor building rooftop and indoor gardens for schools and food programs in New York. In 2014, Fork Farms moved back to Wisconsin (the home state of co-founder and president Alex Tyink) and the first Flex Farm prototype was built out of wood in a garage
By: Wisconsin Economic Development Corporation
July 28, 2021
Products: Flex Farms are fully self-contained vertical hydroponic systems with 288 unique growing spaces. The company’s patented technology takes indoor vertical hydroponic growing to a new level by maximizing growth and minimizing required inputs. Flex Farms grow food faster, in less space with less water and electricity. They are portable and only require a standard electrical outlet and less than 10 square feet of space. By carefully controlling everything plants need to thrive, each Flex Farm can grow more than 394 pounds of produce annually. The Flex Farm Grow Supplies Box Subscription program delivers all the supplies a customer needs to grow every three months right to their door.
Company founded: Fork Farms was founded in 2010 as an independent contractor building rooftop and indoor gardens for schools and food programs in New York. In 2014, Fork Farms moved back to Wisconsin (the home state of co-founder and president Alex Tyink) and the first Flex Farm prototype was built out of wood in a garage.
Location: In 2020, Fork Farms moved its headquarters to TitletownTech in Green Bay. TitletownTech is a partnership between the Green Bay Packers and Microsoft that builds and funds early-stage high-growth businesses. Fork Farms believes TitletownTech is an incredibly innovative model that significantly bolsters the local startup economy. The depth of support is unprecedented and will provide Fork Farm’s significant acceleration and lift to the organization’s mission of unleashing the power of fresh food production.
Employees: 15
Backstory: A decade ago, a simple bag of lettuce grown on a rooftop in Brooklyn, New York, ignited a chain of events that would lead to the cognizance of the true power of “good food” and its ability to bring about happier, healthier people through the power of fresh food production. Fork Farms has since blossomed from an independent contractor building rooftop gardens to a garage-based Flex Farm prototype made out of wood, and most recently into partnerships with the Green Bay Packers and Microsoft. With over 600 Flex Farm installations completed in 29 states, Israel and Canada, Fork Farms is poised to continue its passionate endeavor towards real and sustainable change.
Wisconsin’s business environment: “Wisconsin’s business environment has helped Fork Farms grow significantly,” says Tyink. “We outsource a significant amount of our overhead to Wisconsin businesses to allow us to rapidly respond to our expansion needs. Our Wisconsin fulfillment partners have the ability to scale their operations to meet the increase in demand for our products. Our relationship with these partners also allows us to explore how we can scale our consumable products to provide more affordable solutions breaking down barriers to entry into vertical hydroponic growing. In the next year, we will be making significant investments in content that deepens and enriches the experience with indoor vertical hydroponic growing.”
AppHarvest: Management Estimates Vs. The Market
APPH's management projects appealing unit economics and a long runway for future growth. If management's projections are accurate, in five years APPH will be generating over $100mm in annual free cash flow and be able to reinvest 100% of that cash at a rate of return over 15%.
By Carleton Hanson
July 28, 2021
Summary
AppHarvest is a vertical farming company that is ramping up its operations.
AppHarvest's management has rosy projections for profitability and growth, but the market is skeptical about the company's future.
If management's estimates are accurate, AppHarvest looks appealing on a future cash flow basis.
AppHarvest has meaningful downside risk.
I am considering starting a small, "coffee can" position in the company.
I look for companies that generate consistent free cash flow and that can reinvest cash at a high rate of return. AppHarvest (APPH) does not fit the bill in its current state. The company only started to generate revenue in 2021 and is years away from generating free cash flow. APPH's management projects appealing unit economics and a long runway for future growth. If management's projections are accurate, in five years APPH will be generating over $100mm in annual free cash flow and be able to reinvest 100% of that cash at a rate of return over 15%. APPH's business model is unproven but I would be excited to own shares in a company with their projected return profile.
What is AppHarvest?
APPH is an indoor farming company based in Appalachia. The company grows tomatoes in a 60-acre indoor farm located in Morehead, KY. By growing their produce indoors, APPH is able to avoid using pesticides, recycle water, and optimize the controlled environment for higher crop yields. APPH can grow 365 days a year and crops are protected from adverse weather events. The company reports that it can produce yields as high 30x those of conventional outdoor farms while using 90% less water and a fraction of the soil and fertilizer. APPH sells exclusively to Mastronardi Produce Limited, another indoor farming company that has an extensive distribution network across the United States.
APPH is a new company, and only began harvesting from their Morehead facility this year; there isn't much data yet on their operational metrics. As of Q1, the company had about $300mm in cash on their balance sheet, but APPH is investing heavily into building additional farms. There are two farms currently under construction in KY and six additional sites have been identified as future farm locations. APPH's goal is to have 12 farms completed or under construction by the end of 2025. A standard 60-acre facility costs about $120mm to build and APPH estimates that a fully functional farm can bring in annual revenues above $40mm with gross margins as high as 40% and EBITDA margins around 35%.
(Source: Analyst Presentation)
Management raised facility EBIDTA estimates to over $23mm on the Q1 conference call, with the excess coming from increases revenue and lower input costs. Some of this upward revision is also due to the acquisition of robotics company Root AI, which management expects to improve farm efficiency and automation in the future.
Putting together the farm unit economics and the target number of farms, five-year projections look like this:(Source: Analyst Presentation)
APPH has a market cap of $1.2 billion. If the projections above are accurate, APPH will be generating more than $100mm in free cash flow by 2026 and have a proven, profitable model that they can leverage to build more farms with an expected cash return above 15%. $1.2 billion is a cheap enough price to pay for a company with that return profile.
Let's Take Management's Projections at Face Value; How Much Should We Pay For APPH?
The big question is: Are management's estimates accurate? I will talk more about this risk later in the article, but for now let's say that the future plays out exactly as management projects. In this scenario, what would be a fair price to pay for APPH shares today? Using company estimates, we can put together a rough 5-year DCF. I am going to use a 15% discount rate in my equation. This might be controversial, but there are a number of other companies that I own that I expect to return at least 15% a year. If I am going to tie up capital in APPH while I wait for management to execute their plan, I am going to treat the opportunity cost as 15% a year. The results look like this:
The netted cash amount is inconsequential for just five years. In the scenario where management's estimates have been accurate, the company would be in a great position at the end of 2026. They have a proven business model, are generating ample free cash flow, and could continue to expand their operations by building more farms. I think a multiple of 25-30x FCF is reasonable in this scenario, resulting in a market cap of between $1.4-$1.6 billion and a share price between $14-$16. Due to a fairly steady decline in APPH's share price over the last month, a $14 price target is a 16% premium to the current price and $16 would be a 33% premium. For this scenario, I'll split the difference, slap a $15 price target on the stock, and estimate the company is undervalued by 25%.
The Market is Skeptical
Using management's estimates and my DCF assumptions, my "base case" price target for APPH is around $15/share. Despite some initial excitement about the company when it came public via a SPAC, the market is skeptical about this base case:(Source: Seeking Alpha)
APPH is trading more than 70% below its 52-week high and has significant short interest; why might the market be pessimistic about APPH's future? I think the market has two main concerns. First, APPH is only just beginning their operations; the unit economics and long-term growth plans presented by management are just projections at this point. Perhaps the farms will have higher maintenance costs than expected or produce a lower yield over a prolonged period. Interest rate changes could make future expansion projects more expensive. APPH might incur greater than expected SG&A costs. With no operating history, investors are forced to rely on management estimates or make their own projections with limited information. In this case, uncertainty about the future works against APPH's share price in the short term.
Secondly, despite their advanced indoor farm technology and investments in artificial intelligence software, at the end of the day APPH sells commodity products (tomatoes and eventually other produce). It is hard to find a convincing competitive advantage that is unique to APPH that will help them stand out in the market place. There are dozens of other indoor farming companies in various stages of development and production, so APPH's technology isn't unique. Companies like Plenty, AeroFarms, and Local Bounti come to mind, but there are many others as well. APPH's location (Kentucky), cited by the company as a large competitive advantage, will be diminished by the growth in indoor farming. Kentucky might be closer to New York than Mexico or California, but if other companies have the ability to start up small urban farms (like Plenty), then in not too many years I could see more farms popping up closer to major urban areas and reducing APPH's location advantage. SA author Jamie Louko recently did a deeper dive on APPH vs the competition in this article, and I think he brings up good points, especially around APPH's scale and progress in building their farms and securing funding for future work. I'm not sure the market is convinced these advantages will be enough, especially in today's market where traditional farming remains the primary competition.
Investment Thesis (and Risks)
Is the market right to be skeptical about APPH's future, or is the market being short-sighted and creating a favorable investment opportunity? I think the answer to both questions is yes. On the one hand, it is reasonable to remain cautious about APPH's unit economics until the company has been operating multiple farms for multiple years. Without a strong unit economic base, I see limited downside protection for investors. APPH still has a sizable cash position on their balance sheet and owns their one operating farm, but much of the cash is already allocated to completing their two in-progress farms, and their existing farm won't be of much value if the unit economics end up being a lot worse than anticipated. APPH needs to complete more than three farms to overcome their overhead costs, so their long-term success is going to be dependent on a successful progression of new farm construction. New farm construction will be impacted by the future availability of credit and/or the company's share price (if they decide to an equity raise). Finally, APPH would be negatively impacted by short-term drops in vegetable commodity pricing. Tomato pricing has been relatively stable over the last 15-20 years, but swings of 15-25% or more have happened regularly and will likely continue to happen. An APPH investment has real risks that the market is keenly aware of.
On the other hand, I see a lot to like about the company if management is able to execute on their plans. In this scenario, APPH is only a few years away from consistent cash flow generation and will have a long runway for reinvestment at high rates of return. It is rare to find a company today that can reinvest 100% of their free cash flow to grow their business; often companies resort to paying a dividend or buying back shares with excess cash. These outcomes are "fine" for investors, but aren't going to generate the same 15-20% ROI that APPH would be able to get from additional farm construction. The most optimistic outlook makes me think of investing in Walmart or McDonalds in their early stages, when they were building new stores or opening new franchises at a brisk pace and reaping solid returns on those investments.
I can also envision scenarios where APPH makes an unexpected leap forward and expands into an adjacent industry. Company president David Lee made a comment on the Q1 conference call that suggested he sees the potential of their in-house AI and robotic solutions to be licensed to other companies. This would provide another source of high-margin revenue. He even went as far as to say that APPH's solution could be what "AWS is to Amazon" (source). APPH's investment in Root AI shows their commitment to solving technological problems presented by indoor farming and to continuing to optimize their day-to-day operations. If APPH expands into a true tech-focused company that is able to build a platform of tools that other future companies will want to use, that would be a huge and unexpected win for the company. I would take this projection with a huge grain of salt and say it is unlikely to materialize, but I think APPH's technology has value and at least has the potential to be monetized in the future.
Conclusion
An APPH investment is a departure from my usual style; I tend to focus more heavily on protecting against the downside than shooting for home-run returns with a favorable risk/reward ratio. That being said, I see APPH as an intriguing opportunity. APPH's potential to invest 100% of ample free cash flow at high rates of return is the most appealing part of this equation, and after the slow fall of the company's share price I think today's market cap looks fairly reasonable. Even with a 15% discount rate APPH is trading slightly below "fair value", assuming management estimates are close to reality. If I were to invest in APPH, I would make it a small portfolio position and plan on holding it "forever" to let the long-term investment thesis play out.
AI Is Learning To Understand How Vegetables Taste
With the global demand for food escalating, vertical farms are becoming a critical component of agriculture's future. They use robotics, machine learning and artificial intelligence (AI) to automate farming and perfect the growing of greens and vegetables.
By Jennifer Kite-Powell
July 20, 2021
With the global demand for food escalating, vertical farms are becoming a critical component of agriculture's future. They use robotics, machine learning and artificial intelligence (AI) to automate farming and perfect the growing of greens and vegetables. With steady growth, the vertical farming market was had an estimated value of $4.4 billion in 2019 and is expected to reach $15.7 billion by 2025.
Fifth Season is a vertical farm in Pittsburgh that uses super-stack software and robotics to run their fully automated farming systems. And, by combining big data and AI, they have created the optimal grow recipe that determines the best flavor for the plants they grow.
"The role of AI in determining flavor is to leverage big data and AI to ensure you achieve the target flavor — sweetness, spiciness, bitterness, total degree of flavor and texture," said Austin Webb, CEO of Fifth Season.
"Our plant's individualized grow recipe is the unique mix of the different LED lights," said Webb. "The plants go through the grow room with a QR code that communicates that plant's route and tells the automated system where each plant needs to be throughout the process."
Webb says their super stack system, which serves as 'the brain' of the vertical farm maps, maps out each plant's route through the grow room based on its grow recipe and then moves the plants where they need to go.
"We use AI and data to find improvements in all aspects of crop quality, even beyond what humans think they know about flavor profiles. We call this proactive, deterministic growing compared to traditional farming, including greenhouse growing, where you have to be reactive based on weather and sunlight conditions," said Webb. "We then leverage human/chef feedback on what tastes the best and what texture is best and [..] combine that qualitative data with the 26K quantitative data points for every tray of greens per lifecycle."
"From there, we tweak our grow recipes to build the best flavor. For some vegetables, like tomatoes, experts have leveraged Brix scores, but [..] we measure flavor quality based on these factors: sweetness, spiciness, bitterness, the total degree of flavor, texture and color," said Webb. "Humans don't need to guess what iron content or Brix score is best; the brain in our farms can do that. Humans tell the grain what tastes best, and the brain will compute and tweak the grow recipes from there."
Darryn Keiller, CEO and founder of WayBeyond, says that to impact flavor, you either have to change the genetics of the crop or alter the existing biochemical profile.
"For example, growers can impact flavor by adjusting light and nutrients, which can then enhance the texture (crunch, thickness) or flavor (increased sweetness or bitterness)," said Keiller. "Once you determine the key characteristics you want in a crop, you then use machine learning or AI to automate and optimize the production process for consistent growth and be responsive to changing consumer preferences."
"Currently, vertical farms utilize seed stock bred for outdoor farming. Using AI technology, they can create their breeding stock (or lines) better suited for indoor environments. It's about refining your research and development and creating genetics perfect for your environment and management practices while ensuring continuous improvement of commercial production. The potential is huge."
Webb adds that many indoor growers sought to build an outdoor farming system that can thrive indoors; however, Fifth Season chose to apply smart manufacturing principles to agriculture that would enable them to grow food in a new way.
"We grow more than 15K pounds a week of fresh food with 90% less water than what would be required to grow that amount of fresh food on a traditional outdoor farm - and that is done on a footprint of just 25,000 square feet," added Webb.
Webb believes that scaling viable vertical farming operations that can crack code on both the technology and the consumer experience to deliver consistently fresh, nutritious and clean produce changes the consumer shopping significantly.
"It changes our entire definition of what fresh can and should taste like; it changes the ease of access and availability and convenience to fresh food, which brings so much value to consumers," said Webb. "It's another avenue for shoppers to access the freshest, highest-quality food at retail with produce that has a much longer shelf life than we're accustomed.”
Lead Photo: Greens leaving the grow environment on route to harvesting and packaging in Fifth Season's vertical farm in Pittsburgh.
Paul Mastronardi of Mastronardi Produce® And Caitlin Tierney of Mastronardi Produce West® Discuss CEA For Upcoming Organic Produce Summit
Now, with the Organic Produce Summit (OPS) on the horizon, Paul Mastronardi, President and Chief Executive Officer, Mastronardi Produce® and Caitlin Tierney, Business Director, Mastronardi Produce West®, join me to discuss the impact of a growing area of investment in organics—controlled environment agriculture (CEA)—and how it is primed to accelerate fresh produce’s advantages and benefits in organics, conventional, and the greater food industry.
By Jordan Okumura
July 28, 2021
KINGSVILLE, ON - The dynamic, challenging, and volatile nature of the recent year and a half has revealed quite a few things about fresh produce to me—and one of them is that organics are not only here to stay, but continue to be an area of incredible growth opportunities. Now, with the Organic Produce Summit (OPS) on the horizon, Paul Mastronardi, President and Chief Executive Officer, Mastronardi Produce® and Caitlin Tierney, Business Director, Mastronardi Produce West®, join me to discuss the impact of a growing area of investment in organics—controlled environment agriculture (CEA)—and how it is primed to accelerate fresh produce’s advantages and benefits in organics, conventional, and the greater food industry.
Caitlin Tierney, Business Director of Western Operations, Mastronardi Produce®
“Consumer demand for flavorful fresh produce that is sustainably and locally grown is rising. As our population continues to grow, so too does the need for fresh, nutrient-rich produce. Traditional farming simply cannot keep up with this increasing demand,” Caitlin reflects, adding that to meet supply and reduce dependence on imported goods, CEA in greenhouses offers a more viable solution. “Greenhouses are also ten to twenty times more efficient and use up to ten times less water than conventional field farms.”
Caitlin leads me down the CEA path, sharing how consumers have come to expect a “season-less” pantry, and as a result of high-flavor, year-round varieties like Campari® and Flavor Bombs™, the company is seeing more retailers and foodservice operators move toward greenhouse-grown produce grown with innovative methods.
“By increasing quality, reducing the use of pesticides, growing locally, and bringing year-round supply, we can meet the needs of both consumers and retailers. A great example of this is our greenhouse in Coldwater, Michigan. Here, we use CEA techniques—such as Integrated Pest Management (IPM)—which significantly reduce the need for pesticides and provides local retailers and foodservice operators high-quality, flavorful produce that is grown year-round and is closer to them and their consumers,” Caitlin asserts.
Consumer demand for flavorful fresh produce that is sustainably and locally grown is rising, and SUNSET is helping to respond to that need
Costs also play a major role in how the conversation around CEA has progressed—a big topic that will be at play during OPS' "Growth of CEA: What's Real and What's Hype? - Part 1" panel during the September 15-16 show, where Caitlin will be a panelist. To register for OPS, please click here!
“As we all know, produce has a shelf-life that impacts the entire supply chain. If you are a retailer located on the East Coast, your fresh produce could take up to a week to get to the closest distribution center. Transportation relies on liquid fuels, which are predicted to rise in price faster than the U.S. economic inflation rate,” Caitlin reveals. “Production in CEA facilities relies on electricity and natural gas, and these prices are predicted to remain on par with inflation. With CEA, you will get fresher, more reliable produce that’s not only grown closer to where consumers are buying it, but is also cost-sustainable for the supplier.”
A win-win, in Caitlin’s words.
To get an idea of the difference and the dynamic between greenhouse and CEA, Paul breaks it down for me this way.
Paul Mastronardi, President and Chief Executive Officer, Mastronardi Produce®
“CEA can be produced in several sectors of the agricultural industry: fish, dairy, produce, etc. It’s essentially the production of food while controlling certain aspects of the environment in order to reduce pest or disease, increase efficiencies, become more sustainable, and save costs,” he says.
Using technology and data, food can be produced with quality and flavor.
“Greenhouse farming does all of this with a focus on controlled variables. Variables like temperature, humidity, and sunlight are considered carefully when growing produce in greenhouses,” he adds. “And, while CEA and greenhouse growing are two separate methods of quality food production, CEA is regularly used in greenhouses because it adds significant benefits to crop production, sustainability, and increased quality and flavor.”
Mark your calendars for the Organic Produce Summit’s "Growth of CEA: What's Real and What's Hype? -Part 1" session where Caitlin Tierney will be a panelist.
It is at this point in the conversation that he pauses to bring in the impact of vertical farming as well.
“Vertical farming, which is the process of growing crops in vertically stacked layers, is a relatively novel concept and has some significant headwinds to overcome before commercially viable. It’s currently a very small part of the market with significantly higher pricing, so it won’t replace, but will complement, existing food production with local, sustainably grown food,” Paul expresses.
This leads me to inquire how one would define the differences between vertical farming and greenhouse, and Paul details how a primary difference between vertical farming and greenhouse growing is output costs.
“Fully automated vertical farms rely exclusively on artificial lighting, which results in higher operating costs and capital expenditures. Our greenhouses, on the other hand, provide nutrient-dense produce grown sustainably, year-round without the high costs associated with energy. Why? Because we draw a lot of value from the fact that the production surfaces are mostly illuminated by the sun,” he shares.
And as Paul Mastronardi always says to his team, “there’s something magical about the sun.”
As OPS draws near, mark your calendars, build your schedule, and add Educational Breakout Session: "Growth of CEA: What's Real and What's Hype? -Part 1" for September 15!
Agtech Company AppHarvest Has Secured A $91m Financing Arrangement With Sustainably-Focused Investment Firm Equilibrium Capital To Fuel The Future Construction of 12 High-Tech Indoor Farms by 2025
Agtech company AppHarvest has secured a $91m financing arrangement with sustainably-focused investment firm Equilibrium Capital to fuel the future construction of 12 high-tech indoor farms by 2025.
By Mary Ellen Shoup
July 27, 2021
Agtech company AppHarvest has secured a $91m financing arrangement with sustainably-focused investment firm Equilibrium Capital to fuel the future construction of 12 high-tech indoor farms by 2025.
Read The Rest Here: HTTPS://WWW.FOODNAVIGATOR-USA.COM/ARTICLE/2021/07/27/APPHARVEST-SECURES-91M-FINANCING-TO-FUEL-2025-INDOOR-FARMING-AMBITIONS
La Sierra University Celebrates First Hydroponics Harvest
The Freight Farms container arrived on March 30, 2021, hoisted by a crane and set down on a slab of recycled concrete and asphalt. Three months later, the Enactus team harvested its first crops — approximately 540 heads of red leaf lettuce on July 12 and roughly 550 heads on July 19, a first bounty donated to campus and community members.
By La Sierra University News
July 27, 2021
During La Sierra University’s beginnings in the early 20th century, the school farm, especially its dairy, alfalfa fields, and watermelon patch, was a critical source of income for the institution and its student laborers. In 2021, farming returned to the campus in Riverside, California, United States — on a big rig.
During the 2019-2020 school year, the university’s student Enactus team based in the Zapara School of Business began work on its Freight2Table project through the Boston-based Freight Farms program. The project involves growing varieties of lettuce and leafy green vegetables, herbs, flowers, and roots inside a 40-foot shipping container repurposed and designed with hydroponics technology.
The Freight Farms container arrived on March 30, 2021, hoisted by a crane and set down on a slab of recycled concrete and asphalt. Three months later, the Enactus team harvested its first crops — approximately 540 heads of red leaf lettuce on July 12 and roughly 550 heads on July 19, a first bounty donated to campus and community members. The team also planted baby leaf lettuce, Swiss chard, and butter lettuce in various growth stages. The Enactus team aims to establish produce-supplier agreements with local businesses and organizations and is communicating with markets in Riverside and with the university’s Dining Commons.
Nancy and Hermogenes Guerpo arrive to pick up containers of fresh red leaf lettuce during the Enactus team’s distribution event in the Sierra Vista Chapel parking lot on July 12, 2021. [Photo: La Sierra University]
A crane lifts the Freight Farms shipping container onto a slab at La Sierra University on March 30, 2021. [Photo: Natan Vigna, La Sierra University]
Megan Eisele (left), president of La Sierra’s Enactus team, and Aaron DesJardins, team marketing vice president, plant the first tiny lettuce seeds on May 17, 2021, inside the Freight Farms hydroponics container. [Photo: La Sierra University]
Enactus member Max Proebstle, a health-care management and finance graduate student, describes the transplanting process for red leaf lettuce seedlings shown in vertical growing panels. [Photo: La Sierra University]
Red leaf lettuce continues to mature in vertical panels inside the Freight Farms hydroponics container. [Photo: La Sierra University]
Enactus members left to right, Brandon Ching, Max Proebstle, and Aaron DesJardins conduct the first harvest of red leaf lettuce on July 12, 2021. [Photo: La Sierra University]
La Sierra Enactus team members Natasha Thomas (left) and Andrew Léon package freshly harvested red leaf lettuce on July 12, 2021, for distribution to campus and community. [Photo: La Sierra University]
Packages of Freight2Table lettuce branded with the Enactus team’s “Two-Bit’s Best” product labels. [Photo: La Sierra University]
The growing process involves a reverse osmosis water filtration system purchased and installed inside the container. A timed and regulated supply of electricity and nutrient-infused water along with growing lights for plant photosynthesis forms the basis for how the hydroponic farm operates. University faculty and staff oversee the system processes and container technology. Freight Farms in Boston has real-time virtual access to the container’s systems for providing assistance if needed. For students, the hydroponics farming venture has provided a plethora of learning opportunities, starting with an introduction to hydroponics agriculture.
“While I had heard that term thrown around in the past, I was never really quite sure what it meant, but after having spent so many hours tending to a hydroponic garden, I feel I have a pretty clear picture of how the whole system operates,” Aaron DesJardins, a dual marketing and graphic design major, who this year serves as the Enactus team’s marketing vice president, said. His efforts include designing the farm’s logo and branding as “Two-Bit’s Best,” in reference to the hill overlooking the university campus known as Two-Bit Mountain.
“Another big thing I've learned while working with the Freight2Table project has been the importance of coordination, communication, and team management,” DesJardins said. “There is a much higher likelihood that the crop will not turn out good if it is not managed correctly.”
Since May, DesJardins and his teammates have dedicated several hours each week working with crops in the container and in team meetings planning produce distribution. Inside the container, they wear masks for health and safety purposes, as well as gloves and protective lab coats, to reduce the risk of contamination to the plants and growing system.
Marvin Payne, associate biochemistry professor and project director for the Title V grant-funded Guided Pathways to Success program, and Richard Rakijian, summer program coordinator and chemistry/biochemistry lab manager, oversee the operations of the hydroponics farm. “Dr. Payne and Richard have been a huge help in being there to help us navigate the freight operations,” DesJardins said. “They have also been a big help in helping us decide which crops to plant and scheduling things such as harvests and transplant dates.”
The new Title V program, Guided Pathways to Success in STEM, incorporates STEM education into a summer curriculum designed to help incoming first-year students become inspired to pursue STEM degrees and succeed in college. Botanist and university biology professor John Perumal will lead activities in germinating seeds for experiments under different conditions and in plant growth and development assessments. The Enactus team has developed partnerships with other campus groups and programs, such as the Hispanic Business Incubator.
The Enactus Freight2Table project will also offer agricultural technology education to elementary students in local school districts.
With Freight2Table, the Enactus team is entering an agricultural technology market that is expected to grow substantially in coming years. Food producers are looking to feed the planet's burgeoning population in more controlled and easily accessible ways in the face of extreme weather and drought, and as individual growers seek alternatives to traditional gardens. Hydroponics agriculture comprised about half of the vertical farming marketing in the U.S. in 2018, according to an industry outlook and forecast through Research and Markets in Dublin, Ireland. It is forecasted to grow 22 percent during the period of 2019 to 2024. The report states that the overall U.S. vertical farming market is projected to reach a value of around US$3 billion by 2024.
Hydroponic agriculture’s water-conserving process is an important consideration in drought-prone regions, including the western U.S. and, in particular, California, where a years-long, historic drought is stoking anxiety over water supplies. Hydroponic farming systems capture and re-use water, and as such, can use as much as 10 times less water than what is used with field crops, according to Powerhouse Hydroponics.
Currently, Enactus students are volunteering their time to establish and maintain Freight2Table. In the future, the team aims to hire students to manage the container farm as it increases production. The eight-week crop-growing process is labor intensive. During the first week, tiny seeds are planted by hand in small peat pods and then germinated in seedling trays in a top trough. In the second and third weeks, the germinates mature in the seedling trays in a bottom trough. During the fourth week, hundreds of juvenile plants are transplanted to vertical growing panels one at a time and left to grow and mature four to five weeks before harvesting. The moveable vertical growing panels, which occupy most of the shipping container space, provide four sides for growing plants, with each side accommodating between 576 and 990 plants, depending on the variety.
The hydroponics farming project and its results are included in the team’s Enactus annual report and multi-media presentation during annual Enactus competitions. Enactus, a global non-profit organization based in Springfield, Missouri, is focused on economic and educational empowerment through business innovation and collaboration. It has teams at 1,730 campuses in 36 countries. Since joining in 1991, the La Sierra team has won seven Enactus national championships and two world cups. During national competitions in April, which were held virtually, the La Sierra team placed among the top eight teams in the nation and received the Excellence in Project Management Award from the U.S. Enactus organization.
La Sierra Enactus member Max Proebstle will enter his second year of graduate study this fall and served as part of the presentation team this past school year during competitions. He is earning dual MBAs in health-care management and finance and has been involved in the hydroponics farm since October 2020. Going forward, he will work with other students in maintaining a steady flow of crops from the farm and building up its customer base.
“Before this project, I didn’t even know that hydroponics existed. So, everything has been relatively new for me. It’s been quite the experience learning how to grow plants in this way,” Proebstle said. “The hardest part is learning the system and then getting a feel for nutrient and pH levels. Another thing I’ve learned is that more people care about this form of sustainable farming and food production than I would have thought. We’ve gotten such great feedback from donors, sponsors, the school, and the community; it’s really been a blessing.”
Lead Photo: Freight2Table recasts the Adventist school’s century-old tradition of farming.
The original version of this story was posted by La Sierra University.
Will Tomatoes Be The Next Big Commercial Crop For Vertical Farms?
Researchers at University of California-Riverside are using CRISPR technology to develop miniature tomato plants for production in vertical farms and on the International Space Station.
By David Kuack
July 22, 2021
Researchers at the University of California-Riverside are using CRISPR technology to develop miniature tomato plants for production in vertical farms and on the International Space Station.
What crops come to mind when you think of vertical farm production? Leafy greens, microgreens and herbs are likely the most common answer. How about tomatoes?
University of California researchers Robert Jinkerson and Martha Orozco-Cárdenas are using CRISPR-Cas9 gene-editing technology to develop short tomato plants that have the potential to be grown in vertical farms and on the International Space Station. Orozco-Cárdenas initially used CRISPR technology to reduce the size of normal tomato plants, including the number of leaves and stems, without significantly reducing the size and yield of the fruit.
“The tomatoes originally were under investigation by my collaborator Dr. Orozco-Cárdenas, who is director of the UC-Riverside Plant Transformation Research Center,” Jinkerson said. “I was touring her research facility and saw tomato plants that were fruiting in vitro. The plants were incredibly small. I thought these tomatoes would have a lot of different applications, particularly for NASA. We also determined that the tomatoes could be well suited for vertical farming. It started out as a basic science project investigating gene function and we expanded it to look toward other applications where genes could be mutated to control plant architecture for vertical farming and for space flight applications.
“For the first iteration, Dr. Orozco-Cárdenas took an existing dwarf tomato plant variety and used CRISPR gene editing to further shrink the plants. Currently we are working on using the CRISPR technology to stack more mutations on top of the original variety. We are also performing gene editing in a commercial indeterminate variety to determine if we can alter the plant architecture and size so that they would be suitable for vertical farm production.”
University of California researchers are studying how to grow tomato plants to the smallest size and still produce the highest fruit yield.
Limits to plant size
Jinkerson said the CRISPR gene-editing technology can be used to create mutations that affect the inflorescence, number of flowers, and branching architecture. Initially plant size was the trait the two researchers were interested in changing, but Jinkerson said he has expanded the studies to include the impact on fruit size and yields.
“We are looking primarily at how we can grow the plants to the smallest size and still produce the highest fruit yield to maximize the harvest index,” Jinkerson said. “The harvest index is the amount and weight of the fruit vs. the weight of the total plant biomass, including the fruit. If there was 100 percent fruit then the harvest index would be 100 percent. But because plants need leaves, stems, and roots, the harvest index can’t be 100 percent.
“There is a point where the plant becomes so small that there are not enough leaves to perform photosynthesis and the plant won’t be able to support the fruit that it is trying to produce. This is something we have to keep in mind as we try to balance the plant size and how much vegetative biomass is needed to produce the fruit. Currently, we are investigating this relationship. We think we are starting to hit the lower limit of size where we cannot make the plants much smaller without negatively affecting the fruit yields.”
University of California researcher Robert Jinkerson is looking to work with commercial controlled environment growers to determine how the short tomatoes work in their production systems.
Overcoming vertical farm limitations
Jinkerson’s tomato research is being funded by a $450,000 New Innovator grant from the Foundation for Food & Agriculture Research. Even though Jinkerson’s background is in engineering and algae, he saw the potential that vertical farming could have on future food supplies.
“Most commercial crops are grown outdoors and there really are not any restrictions on size,” he said. “For vertical farming there is a lot of work that needs to be done to customize crops for this new production environment. For instance, the plants can only be a certain size and should have a quick production time to reach harvest. They should also be very efficient with the way they utilize artificial light for photosynthesis because electricity for lighting is one of the largest operating costs.”
Part of the FFAR grant is for Jinkerson to work with commercial growers to determine how the short tomatoes that are developed work in their production systems.
“We are interested in finding commercial growers who are operating vertical farms or a commercial partner who can help trial and evaluate the lines that we have already produced and future lines we will be developing,” he said. “Another aspect of the research grant is to take other tomato varieties and try to optimize their architecture for vertical farms in order to have a greater variety of fruit that can be grown in these systems.”
Although Jinkerson does not have a vertical farm set up at the university, he is trialing the plants in a greenhouse and a controlled environment room equipped with fluorescent lights.
“The grow room with fluorescent lighting that we are using is not like a high-tech vertical farm equipped with LEDs,” he said. “The plants have been grown with a photon flux of a few hundred μmol m−2 s−1 PAR at a 16-hour photoperiod. The temperature and humidity have been maintained at normal room conditions. We haven’t tried to optimize environmental conditions for plant growth yet. We haven’t pushed the plants under any extreme conditions, but these are future areas of research we are interested in exploring.”
Jinkerson and his students are also collecting data related to the amount of light that is needed for the plants to flower and fruit under artificial light.
“We have fruit yield data,” he said. “We have done a lot of calculations on fruit yield per volume. This is an important metric for vertical farms. With our data, we can estimate what type of yields we could expect with the plants. Depending on the vertical spacing distance, the yield per volume for the plants we have developed could be anywhere between 1.5 to three times higher compared to greenhouse yields.”
Future crops for vertical farms, space travel
While Jinkerson’s current research is focused on tomatoes he said there is the potential to apply the gene-editing technology being developed to other vertical farm crops.
“We are going to start with other Solanaceae crops, including peppers, eggplant and potatoes,” he said. “We think that many of the findings we have identified with tomato will be able to translate to these other crops because they are closely related to tomato.”
University of California researcher Robert Jinkerson (above) wants to expand the study of CRISPR gene-editing technology beyond tomatoes to other Solanaceae crops, including peppers, eggplant and potatoes.
Part of the research on the tomatoes is being funded by NASA and will be used to conduct a seed-to-seed experiment in space.
“The goal is to grow tomato plants on the International Space Station to fruit and have the astronauts harvest the seed,” Jinkerson said. “The astronauts will then take the seed and grow them for the next crop to have them fruit again. This process is essential in order to have a sustainable crop system for food production. This has never been demonstrated before with tomatoes on the space station.”
The astronauts are currently producing leafy greens on the space station.
“There is very limited physical space on the space station so trying to maximize the harvest index is essential,” Jinkerson said. “This is a very good analog for vertical farms on Earth. With leafy greens the astronauts are able to eat everything but the roots, making these plants perfect for space travel. However, NASA is interested in growing other crops in space. There is an experiment planned for peppers coming up in the next year and our experiment with tomatoes in the next two to three years. Just like vertical farm growers on Earth, astronauts will be trying to produce different types of crops in space.”
Lead Photo: University of California-Riverside researchers Martha Orozco-Cárdenas (above) and Robert Jinkerson are using CRISPR gene-editing technology to develop short tomato plants that have the potential to be grown in vertical farms and on the International Space Station. Photos courtesy of Robert Jinkerson, Univ. of Calif.-Riverside Photos courtesy of Robert Jinkerson, Univ. of Calif.-Riverside
Growth Industry: Libertyville Man Plants Urban Farm in Old Shipping Container
The canvas is the side of an old shipping container. Like the mural, which pictures the hands of Nobel Peace Prize winner Norman Borlaug surrounded by greens, the location of Zach Paronto's urban farm inside the converted container is unexpected.
By Mick Zawislak
July 26, 2021
At the 5.5-mile mark of the North Shore Bike Path, east of Milwaukee Avenue in Libertyville, a mural depicting microgreens has emerged as a calling card for a new business.
The canvas is the side of an old shipping container. Like the mural, which pictures the hands of Nobel Peace Prize winner Norman Borlaug surrounded by greens, the location of Zach Paronto's urban farm inside the converted container is unexpected.
Sheet metal shelves hold racks of tiny plants -- like daikon radishes and tendril peas -- grown hydroponically and in various stages of development. Paronto framed and insulated the interior, ran vents, and installed plumbing and electric to create a sterile, climate-controlled environment to regulate the gourmet garnish crops.
The two-month build-out was a curiosity for some neighbors.
"A lot of people thought I was a homeless guy living out of there," Paronto said.
He launched Achaia Greens in Libertyville early this year to grow and sell microgreens, edible flowers and vegetables. Microgreens are highly nutritional and intensely flavorful seedlings of edible vegetables and herbs used in a variety of ways, from juices and salads to decorative garnishes.
Since its launch, the company has secured six businesses, some with multiple locations, as customers. They include Conscious Cup Coffee Roasters, Mainstreet Social and Timothy O'Toole's restaurants, and Real Clean Paleo, a pre-order meal service. Microgreen mixes also are sold and delivered to residential customers. Everything is harvested and delivered -- usually by bike, weather permitting -- the same day.
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Michael Shipley, managing partner of Conscious Cup, uses Achaia Greens as a sustainable option for tendril peas. The venue has four locations including downtown Libertyville and is planning to open a fifth this fall in Palatine.
"Places like ours are always faced with these decisions to buy something that may be organic, but it's packaged and shipped from across the country or farther," Shipley said.
"When we can make these hyperlocal purchases and still maintain this really high-quality, it's a no-brainer."
Paronto grew up in Gages Lake with a passion for gardening and plants. While maintaining that intense interest in horticulture and native species, he made his living as a tradesman in various capacities.
After an unpaid internship in a microgreen business in Chicago, he founded Achaia Greens in Charleston, South Carolina. Within three years, the business had a local base and was growing, he said. But Charleston never felt like home, so Paronto and his wife, Geddy, moved to Libertyville last summer.
An attempt to launch the business in another Lake County town didn't work out, but Paronto noticed three nearly hidden shipping containers on the property behind the couple's rented home on Route 176 (Park Avenue) and had an idea.
Overgrown by invasive species and filled with scrap metal and debris, the area was a catchall for a neighboring heating and cooling company.
"You couldn't even walk through here," Paronto said.
After seeing his work on the container, Paronto's landlord, who also owns the heating and cooling business, offered him a job with a flexible schedule that allowed him to work on starting Achaia Greens.
Once the area was cleared and outdoor gardens planted, Paronto envisioned a mural to beautify the spot. His cousin, Jenny Gentry, a mural artist from Colorado, finished the piece July 16.
Microgreens are the focus of the mural, but the two hands of Borlaug, who was awarded the Nobel Peace Prize in 1970, also are depicted. A microbiologist and plant geneticist, Borlaug developed a high-yield, disease resistant wheat. He put the new strains into extensive production to feed the hungry of the world and is regarded as a central figure in the "green revolution."
The mural shows Borlaug holding a wheat plant in one hand and a microgreen in another, Paronto said. It represents the progression from reliance solely on staple crops, he added.
To start, Paronto connected with Ellen Williams, program and marketing director for the Adler Arts Center, which operates under the auspices of the village.
Williams connected Paronto and the artist with partners at Rust-Oleum to help with paint, prep and materials. Though not a village project, it's part of Adler's plans to create and support public art initiatives, Williams said.
"We hope to continue to help create more public art in this community both on village and private properties," she said.
Paronto plans to expand.
"This is what I want to do for the rest of my life," he said. "There are thousands of varieties (of microgreens). My plan is to keep growing."
Lead Photo: Libertyville resident Zach Paronto's urban farm is in a converted shipping container behind his house. He grows microgreens inside his urban farm and edible flowers and veggies outside for fresh delivery to businesses and other customers. Paul Valade | Staff Photographer
What’s Real And What’s Hype With Controlled Environment Agriculture?
The flourishing development of Controlled Environment Agriculture and how retailers and consumers view this emerging segment of fresh produce production will be the topic of an educational session at Organic Produce Summit 2021.
July 27, 2021
The flourishing development of Controlled Environment Agriculture and how retailers and consumers view this emerging segment of fresh produce production will be the topic of an educational session at Organic Produce Summit 2021. The Growth of CEA—What’s Real and What’s Hype from a Retail and Consumer Perspective will feature leadership from a pair of recognized retailers and one of the fresh produce industry’s most progressive grower-shippers, offering their insight on how indoor-grown fresh produce items come to market, pricing and marketing challenges, and how consumers are reacting to them.
Moderated by Walter Robb, former CEO of Whole Foods, the session is the second of a two-part educational series at OPS offering a retailer and consumer perspective on the growth of indoor growing. Among the topics to be discussed in the session are the impact of indoor-grown products on the supply chain, the messaging and labeling of these various items, and the ramifications of what CEA production means for the organic fresh produce industry.
Panelists for the session include Frances Dillard, vice president of brand and product marketing at Driscoll’s; Victor Savanello, vice president produce and floral at Spartan Nash; and Shawn Peery, vice president produce and floral at Albertsons.
Production of fresh produce in CEA has become a $100 billion-plus industry, showcasing how growing indoors uses less water and no pesticides, while incorporating innovative and efficient technologies to provide fresher produce to consumers. “CEA is changing the landscape of food production and providing consumers a variety of new items that will continue to evolve in the years ahead,” said Susan Canales, president of Organic Produce Summit. “OPS attendees will have the chance to hear from retail leadership on how these products are marketed and learn about the challenges and opportunities these new items offer consumers.”
This second educational workshop follows a session exploring the growth of CEA from leaders actively involved in the production of indoor growing. The panelists for the first session include Philip Karp, president of Shenandoah Growers; Marc Oshima, co-founder of AeroFarms; and Caitlin Tierney, director of business development for Mastronardi Produce.
“Indoor agriculture is increasingly playing a more meaningful role in our fresh produce supply, in terms of volume, variety, and geographical footprint,” said Robb. “The ability of indoor ag to provide predictability and resiliency for supply, coupled with its lower impact on both the environment and resource use, is drawing substantial interest from both investors and consumers. Clearly, the future will be a hybrid one and our panels will explore how quickly and responsibly this will happen.”
Organic Produce Summit 2021 is a live and in-person two-day event specifically designed to bring together organic fresh produce growers, shippers, and processors with retailer and buying organizations from across North America. Over 1,000 attendees will meet Sept. 15-16 in Monterey, CA, to exchange ideas, information and insights into the organic fresh produce industry.
In addition to the educational sessions focused on CEA, a session looking at the organic industry in a post-COVID-19 environment and a keynote presentation by Jim Donald, co-chairman of Albertsons, have also been announced. OPS 2021 also includes a selection of field tours for retailers and buyers, a gala opening night reception, and a sold-out trade show floor featuring over 150 producers and processors of organic fresh produce from across North America and the globe.
Infarm’s Hamilton Growing Facility is Expanding to Become its Largest Vertical Farm in North America
Greens grown at an indoor farm right here in Hamilton are about to become more accessible at area grocery stores, following an expansion of Infarm’s vertical growing centre.
By Jeremey Kemeny
July 27, 2021
Greens grown at an indoor farm right here in Hamilton are about to become more accessible at area grocery stores, following an expansion of Infarm’s vertical growing centre.
The company’s facility near the airport is set to dramatically grow over the next several quarters, a spokesperson for the company said.
It’s part of a national expansion, following a deal strengthening Infarm’s relationship with grocery store chain Sobeys Inc. That deal expands the company’s reach to grocery stores in all ten Canadian provinces.
Infarm moved into its facility on Aeropark Boulevard, off Upper James Street, in the last quarter of 2020, said Infarm global communications director Emmanuel Evita.
The Hamilton facility is expected to be Infarm’s largest growing centre in North America, following the expansion, with a growing capacity of 37,000 square feet.
Founded in Berlin, Germany, in 2013, Infarm touts its advancement of modular farms, allowing for growing leaf vegetables in any available space.
In a video, co-founder Osnat Michaeli lauds the efficiency of the vertical growing technology and food waste reduction by farming in proximity to where the food is consumed.
Infarm Co-founder and Chief Brand Officer Osnat Michaeli explains how we're building a global network of vertical farms to grow and distribute fresh produce in cities. Infarm’s modular, cloud-connected system enable us to scale and deploy urban farms fast, growing tasty and nutritious produce more sustainably than traditional agriculture. Our modular technology is at the core of a sustainable global urban farming network that is up to 400 times more efficient than soil-based farming, using 95% less land, 95% less water, and requires 90% fewer food miles to get to consumers.
Infarm’s hyperlocal approach includes growing facilities in stores, restaurants or distribution centres.
Here in Hamilton, they plan to transform their warehouse farm into a high-yield facility.
Each 10-metre-high module at the Hamilton facility will “take just six weeks to build and (yield) a crop-equivalent of up to 10,000 square metres of farmland,” Evita said.
He said they’re expecting the production capacity and the number of locations served by the Hamilton facility to greatly expand, following the outfitting of the facility.
Evita says Infarm expects to expand its Canadian workforce by 50 per cent before the end of the year. It’s not yet known how many of those employees will be in Hamilton.
“Infarm is already offering fresh, local produce grown directly in Sobeys retailers or supplied from our Hamilton location,” Evita says, “with much more to come.”
Sobeys To Boost Supply of Vertically Farmed Produce
Under an expanded partnership with Sobeys, vertical farming company Infarm plans to build four new production sites to be able to supply fresh produce to more than 1,000 of the Canadian grocer’s stores.
By Russell Redman
July 26, 2021
Under an expanded partnership with Sobeys, vertical farming company Infarm plans to build four new production sites to be able to supply fresh produce to more than 1,000 of the Canadian grocer’s stores.
Infarm said Monday that it aims to construct Infarm Growing Centers in Calgary, Alberta; Halifax, Nova Scotia; Winnipeg, Manitoba; and Hamilton, Ontario. Near Toronto, the Hamilton facility will be Infarm’s largest production site in North America, with a growing capacity of 37,000 square feet, the company said.
Sobeys and Infarm formed their partnership last year, with a goal of providing locally grown, indoor-farmed produce to the Stellarton, Nova Scotia-based retailer’s customers nationwide. The deal was the first of national scope between a Canadian retailer and a vertical farming company, according to Infarm.
“We are passionate about bringing Canadian families the best, freshest, most delicious produce every single day. The expansion of our exclusive partnership with Infarm demonstrates our commitment to delivering that in a technologically advanced and sustainable way,” Niluka Kottegoda, vice president of customer experience at Sobeys, said in a statement.
“We received overwhelmingly positive feedback from our customers and our store teams about the current Infarm product grown in our stores,” she added. “We are thrilled to expand into the Infarm Growing Centers, as they allow us to exponentially offer these great local products to a multitude of communities across Canada all year round.”
Berlin-based Infarm combines vertical farms with Internet of Things (IoT) and machine learning technology to create a resilient alternative food system. Situated across urban markets, Infarm’s smart modular farms are designed to grow fresh produce for city inhabitants.
The growing centers house farming units that can each save up to 10 million liters of water annually versus soil-based agriculture for similar crops, while producing the equivalent of up to 100,000 square feet of land, Infarm reported. The company noted that 90% of electricity used throughout the Infarm network will be from green-certified sources by September 2021, part of its plan to use 100% renewable or green-certified energy.
Sobeys' partnership with Infarm is the first national-level deal between a Canadian retailer and a vertical farming company.
With their expanded partnership, Infarm and Sobeys will extend the availability and distribution of vertically farmed produce to another four of Canada’s 10 provinces by 2023. That will boost production volume in Canada by more than sevenfold, in tandem with current Infarm Growing Centers in Vancouver and Victoria/Vancouver Island in British Columbia. According to Infarm, the deal stems from rising retailer demand for its produce, including from the Sobeys, Safeway and Thrifty Food supermarket banners of Empire Co. Ltd., the parent company of Sobeys Inc.
Infarm said that, by 2025, it expects to scale to 100 growing centers, with a growing capacity of 3 million square feet. As a result, over the next five years, Canadian consumers can expect to see a range of new Infarm produce items — such as tomatoes, strawberries, peppers, mushrooms, pre-cut salads and potted plants — added to the current selection of herbs, leafy greens and microgreens now available in grocery store aisles, the company said.
In turn, Infarm’s Canadian team of 97 employees stands to grow more than 50% to 160 by the year’s end, working from sites in British Columbia, Alberta, Ontario, Nova Scotia and Manitoba.
“We’re delighted with what has been an extremely positive and successful partnership with the Sobeys family of retailers,” stated Erez Galonska, CEO at Infarm. “This expansion deal represents one of the largest rollouts of any vertical farming company in North America to date as we aim to offer local, high-quality produce to people everywhere.”
Founded in 2013 by Osnat Michaeli and brothers Erez and Guy Galonska, Infarm operates more than 1,300 farms in stores and growing centers worldwide and has partnered with over 30 major retailers in Canada, Denmark, France, Germany, Japan, Luxembourg, the Netherlands, the United Kingdom, the United States and Switzerland. U.S. retail partners include The Kroger Co., Whole Foods Market and Amazon Fresh. International grocery retail partnes include Aldi Süd, Auchan, Carrefour, Casino, E. Leclerc, Edeka, Farmdrop, Intermarché, Irma, Kaufland, Kinokuniya, Marks & Spencer, Metro, Migros, Selfridges, Selgros and Summit.
Vertical Farming: Growing Up After The Pandemic
As COVID-19 restrictions are easing around the globe, one of the things we have learned from the pandemic is that it is time to redesign and reengineer the food supply chain. Vertical farming may be the answer.
July 29, 2021
The Top 5 Benefits of Vertical Farming for Building a Sustainable and Resilient Fresh Food Supply Chain
“The COVID-19 crisis has really shown the cracks in the system. And I think that it was a test by Mother Nature to say, ‘Humanity, get your act together because your food systems are pretty fragile.’" This was an observation made by Dr. Nate Storey, co-founder and Chief Science Officer at Plenty, one of America’s leading indoor farming companies. Dr. Storey participated in a recent vertical farming webinar, co-presented by Heliospectra and the Association for Vertical Farming (AVF). Its purpose was to discuss the road ahead for vertical farming and building a sustainable blueprint to supply food to the world.
The global response to the pandemic had an impact on all industries, and the food supply chain was not exempt:
Laborers were unable to tend to the crops.
Farmers were unable to get their produce to market.
Restaurants, schools, and independent stores were shuttered.
Consumers had to adapt to different ways to source their food.
As COVID-19 restrictions are easing around the globe, one of the things we have learned from the pandemic is that it is time to redesign and reengineer the food supply chain. Vertical farming may be the answer. Here are the top 5 benefits of vertical farming for building a sustainable and resilient fresh food supply chain:
1.) Proximity to Markets Results in Efficient Distribution
Transportation channels were disrupted as governments responded to the pandemic, which made it difficult for rural farmers to get their fresh produce to market. Vertical farms have a much smaller footprint compared to traditional field farms, which means they can be established inside, or closer to, urban areas. Heliospectra’s CEO, Ali Ahmadian, remarked during the webinar that “Urbanization is increasing, and by 2050 we're going to have close to 70% of the world’s population concentrated in urban areas. The population is growing, and COVID-19 has shown us that current food supply logistics are not sustainable when under stress. Going forward, we need to find ways to produce more food locally, where the population lives.” Proximity to market should also help reduce transportation costs and CO2 emissions, while time to market and produce freshness should improve.
2.) Innovative Technology Boosts a Growing Industry
Vertical farming is still in its infancy, but Dr. Storey noted, “We’re on the cusp of huge growth and expansion as an industry. In the next 10 to 15 years, vertical farming will rise as one of the dominant forms of agriculture.” He continued, “Technology has caught up with the vertical farming vision, and we're going to start to see tremendous growth over the next decade. I'm pretty excited about that.”
Some of the fundamental technologies available to vertical farmers today include the ability to control and monitor:
Lighting
Irrigation
Nutrients, PH, and CO2 levels
Air temperature and humidity
AI, big data, and intelligent controls
Vertical farms address many of the shortcomings of traditional field farms. Dr. Joel Cuello, a Professor of Bio-Systems Engineering at the University of Arizona, noted that “Vertical Farming is where artificial intelligence (AI) really has a big role to play. A lot of folks have already done optimizations in terms of lighting, temperature, relative humidity, but they are really done in a very limited scale. With big data and then applying AI, that is really a breakthrough waiting to happen in terms of vertical farming.”
LED grow lights and recent advances in AI and intelligent control technology have been catalysts for sustainable year-round growing, enabling vertical farmers to maximize crop yields, refine crop quality, and standardize production with no seasonal downtime. By providing the light spectra that plants need and a controlled growing environment in which they flourish year-round, commercial vertical farming equipment can provide a sustainable and resilient way to feed the ever-changing world.
3.) Modern LED Systems Increase Energy Efficiency and High-Quality Crop Yields
The quantity, quality, duration, and distribution of light that each plant receives can be optimized. Innovative lighting technology developments have enabled vertical farmers to produce more quality food with less. Dr. Storey commented, “At Plenty, the primary tech inputs are LEDs and semiconductor technologies. As the cost of LEDs goes down and the efficiencies go up, we reap the benefits with very little investment on our part.” He continued, “We have created our own technology cost curve around indoor agriculture, which shows costs going down and quality going up. An illustration of that would be yield at Plenty has gone up 12X in the last 18 months. We have improved yield to the same unit of energy by 12X.”
4.) Labor Profile Shift Reduces Operational Overheads
There has been more recognition since COVID-19 of the inherent benefits of indoor/vertical farming, which can produce more with fewer hands. Lack of labor, particularly in times of global crisis, is a big contributor to food insecurity. The promise of vertical farms is that they could become a factor for resilience in any food supply chain. Dr. Storey commented, “With vertical farming, the supply chain is less complicated. It changes the shape of the labor profile of the business, from employing many workers in the field, which is a source of instability for field production, to employing much smaller numbers of very highly trained people that are operating robotics and managing production lines.”
5.) Modular and Scalable Design to Meet Changing Market Demands
Another benefit of vertical farming is its ability to quickly respond to food demand. Vertical farms can be modularized, and the modules can be shipped on pallets and quickly set up where the demand lies. They can also be added to and scaled to accommodate the rotation of crops according to market needs. This scalability enables farmers to establish vertical farms quickly and anywhere there is a need for food. It can also help farmers meet latent market demands. Storey commented, “When we look at the market, we see a world that consumes only 30% of what it should in terms of fresh fruits and vegetables. So, as we talk about scaling farms, we also have to talk about latent demand, like how much demand is out there that isn't being accessed because of low quality or just the lack of access to fresh food.” The potential for scalable, modular farms to fill this market need is enormous.
The COVID-19 crisis revealed weaknesses in the food supply chain. Storey commented, “We already had a system under stress that was beleaguered by rising labor prices, by the extended supply chains, and the fact that most of the consumers have been separated from the producers.” He continued, “The places where we produce the food and the places where we consume the food have been stretching out further and further and further. In many cases, it's a global supply chain now. We've been pushing the field to its max.”
Want to know more? Watch the entire webinar: The Road Ahead for Vertical Farming Building Tomorrow's Industry Blueprint Today. WATCH NOW
Nature Fresh Farms Featured in an Episode of YTV’s Kid Food Nation: The Show
Nature Fresh Farms joins YTV’s Kid Food Nation: The Show to educate children on greenhouse growing and fresh vegetable production.
July 20, 2021
Nature Fresh Farms joins YTV’s Kid Food Nation: The Show to educate children on greenhouse growing and fresh vegetable production.
Nature Fresh Farms will be featured in an episode during the second season of Kid Food Nation: The Show, giving the cast and the viewers at home a peek inside greenhouse and packaging facilities while exploring the many processes it takes to grow, package, and ship fresh food. Hosts Spencer and Tyra interview members of the Nature Fresh Farms team as they answer questions and share their knowledge about all things inside the greenhouse.
Kid Food Nation: The Show is in partnership with Kid Food Nation and President’s Choice Children’s Charity. The series follows Spencer, Tyra, and kid food nation heroes as they embark on culinary missions and answer questions like, "Should I eat crickets?" or "Are dandelions edible?" The jam-packed 8 episode run for Season 2 will be fun, informative, and inspirational to chefs both young and old. Like the show, the Kid Food Nation project aims to encourage Canadian kids to explore food through online recipes, activities, and videos. Founded by President’s Choice Children’s Charity, BGC Canada and Corus Entertainment, and now in its fifth year, the initiative celebrates a selection of junior chefs from every corner of Canada, featuring their family recipes in an annual contest and cookbook.
“Kid Food Nation is an amazing initiative that aligns completely with our vision of inspiring children and their families to learn about where their fresh fruits and vegetables come from while encouraging nutritional eating,” said Marketing Director, Stephanie Swatkow. “This was a great opportunity to share how we deliver fresh produce from seed to table in a fun interactive way that the program offers.”
Committed to educating consumers and helping to build healthier communities, Nature Fresh Farms believes in cultivating healthy, life-long eating habits through education and teaching important food skills so families can continually develop a healthier relationship with food.
The second season of Kid Food Nation: The Show will premiere on YTV this summer on July 28th at 6:30 pm EST. Each episode will also be uploaded on the Kid Food Nation YouTube channel at https://www.youtube.com/hashtag/kidfoodnation.
About Nature Fresh Farms
Continuously expanding, Nature Fresh Farms has become one of the largest independent, vertically integrated greenhouse vegetable farms in North America. As a year-round grower with farms in Leamington, ON, Delta, OH, and Mexico, Nature Fresh Farms prides itself on consistently delivering exceptional flavor and quality to key retailers throughout North America, while continuing to innovate and introduce more viable and sustainable growing and packaging solutions.
About Kid Food Nation
Kid Food Nation is a five-year project to excite the inner foodie in every Canadian kid. Created in partnership with President’s Choice Children’s Charity, BGC Canada, and Corus Entertainment, with the support of the Government of Canada, the Kid Food Nation online hub on YTV.com features cooking videos with kids, celebrity chefs, and local talent, tips for nutritious foods, as well as games and quizzes. In addition, topics related to the Kid Food Nation curriculum will also be available on the online hub.
The annual Kid Food Nation recipe contest encourages kids between the ages of seven and 13 from across the country to share their love of good food by submitting original, healthy recipes that highlight their culture or their Canadian pride. Each year, 26 young winners are chosen, representing every province and territory in Canada, to have their recipes and chef profiles published in the Kid Food Nation cookbook.
About Corus Entertainment
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high-quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company’s portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology, and media services. Corus is an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children’s book publishing house Kids Can Press. The company also owns an innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus’ roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, NationalGeographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX. Visit Corus at www.corusent.com.
SOURCE: Nature Fresh Farms | info@naturefresh.ca
T: 519 326 1111 | www.naturefresh.ca