"Offtakers don't care whether you've grown your product on the moon, under the ground or at the sea. They just want to have the same consistent quality and prices, year-round and that's the added value of vertical farming right there," says Ard van de Kreeke, Founder of Growy whilst addressing what's the most important asset focusing on when selling to the masses through retail.
Addressing one of the much bespoken topics, vertical farming and retail, panelists dived into the specifics of the potential of vertical farming and retail partnerships. And as it seems, there definitely is potential because of consistent supply, product quality and fixed prices which are three of the most appealing elements for retailers. However, is that North America only, or does the European retail landscape offer that potential as well. It might be a tricky practice as 'not often' private labels are found in-stores. Yet, some farm operators have shown that it is possible to sell under their own label.
Chungui Lu (Nottingham Trent University), Dickson Despommier, and Peter Bachmann with Gresham House
The 'real industry value'
It's not new to anyone that, often, random market valuations are thrown out into the 'wild' when it comes to the vertical farming market. However, how much of that is valid? Panelists mentioned that the vertical farming market is valued at five to six billion dollars in product sales.
To clarify the numbers, Richard Hall asked whether that is for North America only and what is included in that number In terms of value, Dr. Chungui Lu, Professor of Sustainable Agriculture at Nottingham Trent University said, "Non-produce is included as well such as software, LEDs and all elements that are needed for vertical farms", as 'real sales of vertical farming produce are less than one billion dollars per year.' The value of the produce is not over a billion, commented Peter Bachmann, Managing director of Sustainable Infrastructure at Gresham House, "It's all the connected value of industries in vertical farming."
Denis Weinberg with Umami
"What's the annual growth do you expect for vertical farming revenue to 2030?" asked Richard. Commenting on that, Eri Hayashi, President of the Japan Plant Factory Association "It has to be around 40% because there is so much potential with vertical farming. It's just a matter of how you use the plant, e.g. for consumption or for pharmaceutical purposes. I believe plant-based meat substitutes will become a big thing as well. One of the potential ways of growing food is going to be indoors, especially in Japan given the rising climate issues were seeing. However, to improve, we have to collaborate more as many are doing this more separately."
Endre Harnes with Avisomo and Bettina Leth Johanssen with Danfoss
Future deployment of vertical farming
So how will vertical farming mainly be deployed in the future? Dickson Despommier predicts that cities will be incorporating food production much more, becoming self sufficient and to limit the deforestation of agricultural land and so. "Cities should be producing their own food. Before, energy was consumed by energy-inefficient lighting, now that's improved so it's become much more accessible.
John Doonan with the Aberystwyth University
As the event has come to an end, keep an eye out for the photo report tomorrow.
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