"We've always been about producing tasty, healthy, and affordable products," says Ard van de Kreeke, Founder of Growy, a vertical farming business with facilities in Amsterdam, Singapore, and Kuwait. That's been our mission since we started four years ago. But the most important factor is affordability. I don't believe in catering solely to the high-end market, even though we work with 60 Michelin-star chefs in Holland. What matters most is creating affordable food for everyone, with a focus on cost-efficiency."
Ard continues, "We started Growy to make vertical farming more efficient. Coming from outdoor organic farming, we faced the challenge of higher costs, about 20% more expensive. I experienced firsthand the difficulty of selling these products in the Dutch market, where organic only makes up a small percentage. If a product is too expensive, it won't have a real impact, especially in the broader food system."
Laura and Ard van de Kreeke
Highlighting the main challenges, Ard tackles the question "How do we make vertical farming profitable? According to him, tackling Michelin-star markets is easy, as "you can charge 150 euros per kilogram and turn a profit." But that's not where the real impact lies. To make vertical farming successful, you need to address three core issues: CapEx, labor, and energy. "These have always been part of our tech development process, and we've managed to cover them all."
Keeping low cost
"Right now, we've brought our costs down to 1,000 euros per square meter," he explains. "That means if we want to build a 10,000-square-meter farm, we'll need a 10 million euro investment. This includes everything—chillers, seeding systems, automation, packaging lines, you name it. It took a tremendous amount of work to reach this level of efficiency, but we got there."
Labor is another key factor. "It's shocking to see vertical farms of 4,000 to 5,000 square meters with 30 to 50 people running around in two shifts," Ard remarks. "That's not viable and certainly doesn't make the product affordable. We've automated most of our processes, something not many operators have done yet. Automation not only reduces costs but ensures consistent product quality. People, unfortunately, make mistakes, but automation doesn't."
On energy costs, Ard points to a significant comparison: "Two years ago, we purchased Kalera's assets in Singapore and Kuwait. The difference between their farms and our Growy system in Amsterdam is massive. Energy is the biggest factor that sets us apart in terms of profitability."
Growy's Amsterdam farm which will be fully operational at the end of this year
Amsterdam farm, best farm generation so far
Ard acknowledges that it's hard to get 'real production numbers' from operators in the sector. However, he emphasizes, "We're down to 10 kWh per kilogram of greens produced, and we've proven that." At Growy's Amsterdam farm, with only one-third of the facility operational, the company has already achieved "far below" that figure. This is made possible through the right lighting recipe and intensity, which gives the crops what they "really need."
"Thanks to our cooling and climate systems, we maintain a pleasant climate in the growing room, supported by the right air handling and chillers," Ard explains. "By deploying all of these factors, energy costs now account for just 12 to 13% of our total cost price. So, we are not energy intensive. Even if energy peaks occur, it won't be a deal-breaker for us." Looking ahead, Ard is optimistic as he believes Growy can become even more energy efficient in the future, especially with the development of new crops.
After acquiring Vindara's assets, which is a seed breeding company formerly owned by Kalera, Growy began running tests to explore new efficiencies. The team sees massive potential by bringing plants into the farm with lower evaporation rates. This seed innovation lowers moisture levels, reducing the need for cooling and subsequently lowering the farm's overall energy consumption. "Plant development and growing elements go hand in hand with increasing operational efficiency," Ard concludes.
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For more information:
Growy
Ard van de Kreeke, Farmer
www.growy.nl