In just a few short years, Malaia's Microgreens has transformed from a humble backyard operation to a thriving business supplying top-tier microgreens to some of California's premier Michelin Star restaurants. Co-founders Malaia Martinez and Jaebin Yoo took a bold leap into the world of indoor farming with no prior experience, relying on passion, perseverance, and innovative problem-solving to scale their business. In this Q&A from Indoor Ag-Con, Malaia shares their journey, the challenges they've overcome, and their vision for the future, offering valuable insights for anyone looking to succeed in the controlled environment agriculture (CEA) industry.
When did you open for business and how did you take the plunge into indoor farming or….What was your "I can do this!" moment?
In the winter of 2020, we purchased a small shed and built a 'micro-farm' located in a neighbor's backyard. We literally used our entire savings and even pawned off Jaebin's camera equipment! Our decision to fully commit to indoor farming stemmed from the bold optimism only a pair of 20-year-olds could muster. During these nascent stages, it was impossible for us to foresee all the impending challenges. Driven by our passion for plants, we charged ahead, undeterred by what we couldn't yet see.
Neither of us had formal experience in agriculture or business, but we were quick learners, relying on the Internet, YouTube, and good old-fashioned trial and error. Reflecting on those early days, I'm amazed at how we embraced challenges that seemed insurmountable at the time. We learned to navigate uncertainty. After outgrowing the shed, we moved into my garage, only to be forced out when the landlord discovered our business!
That moment marked our biggest leap of faith. We could either shut down or double down. We didn't hesitate—we doubled down. Securing a loan from the SBDC (Small Business Development Center) we landed our first commercial location in Irvine, California. Every step was a risk, with no guarantees, but our determined mindset laid the foundation for what our business has become today.
As a small-scale indoor grower, what have been some of the challenges you've overcome in an industry that seemingly has several large, well-funded players?
As a small-scale grower, we always face a challenge of resources compared to well-funded companies. Malaia's Microgreens does not have the same level of capital to invest in staffing and equipment, which forces us to be scrappy and creative. Our farm runs a tight ship of 5 team members and our roles are constantly evolving to fit the task at hand. Although difficult at times, this allows us to have an intimate connection to almost every aspect of our business. We currently don't have the resources to invest in highly expensive equipment so over the years, we've ended up developing our own proprietary farm technology to improve efficiencies at manageable costs. For example, we've developed our own automatic watering system, tray washer, tray potter, and more, at a fraction of the cost of the equivalent equipment for sale on the open market. These functions all play a part in our ability to scale, which in turn affects our opportunities to work with other companies and potential channel partners like produce distributors who require large volumes, which incentivizes our need to scale. But we do so in a way that does not hurt our business operations (see 'death by growth'). We are always focused on incremental growth and creative decision-making.
Please share your customer make-up and what have you learned about their needs and requirements?
At Malaia's Microgreens, our primary customers are fine dining establishments and chef-owned restaurant concepts. Every chef we partner with is an artist, a master of their craft and they incorporate our microgreens to add the final touches, accentuating their dishes before they reach the table. Our unwavering commitment to quality, food safety, and extended shelf life consistently wins over our clients.
We've learned that some microgreen providers have traditionally suffered from a reputation of poor quality and short shelf life. This makes it easy for us to stand out—chefs instantly recognize the superior quality of our product. Even more impressive is when they see our microgreens lasting three times longer in their fridge compared to the industry standard.
With strong values and a dedicated team focused on building close relationships with chefs to fully understand their unique needs, we've excelled in the fine dining scene. We're proud to work with every Michelin Star restaurant in Orange County, California, and within the next year, we plan to work with all the Michelin Star restaurants in Los Angeles as well!
What has been the most satisfying aspect of operating Malaia's Microgreens?
Our partnership. For both Jaebin and me, the most rewarding part of running this business has been the strength of our partnership. While we've enjoyed the complexity of building the business, learning about controlled environment agriculture, working with chefs, etc., we both know it's only possible because we complement each other so well. One's strengths naturally balance the other's weaknesses, and vice versa. It's incredibly fulfilling to have someone in your corner, especially through the highs and lows of entrepreneurship.
What truly makes our partnership so strong is neither of us is willing to give up. We are completely aligned in our belief that grit and perseverance will take us far, and every year, we see this belief bear fruit.
What words of wisdom would you tell those who seek to start their own small-scale indoor farm?
Farming is not for the faint of heart. At the end of the day, indoor farming must be treated as a business based on the many costs involved. If you're not careful, it's easy to get swept up in the magic of indoor farming without realizing the substantial expenses associated with construction, food safety (certifications and audits), equipment, labor, and more. Once you get a handle on these costs, you must work twice as hard to drive sales and find opportunities to make your investments provide a tangible return. Surprisingly, for us, the actual farming has been far less challenging than the business operations side.
However, if you're committed to the cause, you must seek out and take all the help you can find. Reach out to local growers, speak to your local SBDC, and build a strong support system to help you along the way. Malaia's Microgreens was not just built by 2 people, but rather through an entire team of supporters.
What's on the horizon for Malaia's Microgreens?
The future is bright for Malaia's Microgreens. We recently secured a $250,000 grant from the CDFA (California Department of Food & Agriculture), which will enable us to expand our facilities to four times our current size. In this new location, we plan to collaborate with major produce distributors, invest in community outreach initiatives, and further develop our proprietary systems.
We're also excited to grow our team by focusing on hiring from within our local community. Additionally, we aim to invest in educational opportunities, offering students, entrepreneurs, and hobbyists a chance to learn more about controlled environment agriculture.
Looking further ahead, our long-term goals will extend beyond microgreens. We're passionate about indoor farming and exploring how systems like ours can be replicated to support farmers in regions where climate challenges make crop success nearly impossible.
Source: Indoor Ag-Con