Showing posts sorted by date for query indoor farm. Sort by relevance Show all posts
Showing posts sorted by date for query indoor farm. Sort by relevance Show all posts

Thursday, March 27, 2025

Agritech: SoftBank/Bezos Backed "Indoor farm Plenty declares bankruptcy as last-ditch pivot to strawberries crumbles"

From PitchBook, March 25:

Plenty, a vertical farming startup backed by SoftBank and Jeff Bezos, entered into Chapter 11 bankruptcy protection on Sunday.

The move is a blow to the quickly shrinking vertical farming sector. Plenty had raised over $900 million in venture funding—more than the now-defunct Bowery Farming, which was its chief rival.

But its collapse comes as little surprise: The vertical farming sector has sharply declined over the last two years as investors have pulled back and the cost of capital has spiked. Across agtech, the annual total of venture investment has continued to decline year-over-year since its peak in 2021 and is returning to pre-pandemic levels, according to PitchBook data....

....MUCH MORE, including the pivot to strawberries 

A couple previous posts from the plague year:

December 2020 - "2-Acre Vertical Farm Run By AI And Robots Out-Produces 720-Acre Flat Farm"

Always keeping in mind that vertical farms are growing the highest-value crops to justify their cost. So no beans or wheat or rice or potatoes or barley or any of the other crops that supply the majority of calories that humans consume....

March 2020 -  "SoftBank-Backed Farming Startup Plenty Is In Talks to Raise Cash"

If you are like me, you look back fondly to the days when you woke up hoping to hear about ear rot or vomitoxin in the corn.
But no, it's coronavirus and Softbank for the foreseeable future....

There are dozens and dozens more posts including such hits as:

Former Twitter CFO Joins SoftBank-Backed Farming Startup Plenty

K@W: "Why Venture Capital Likes Modular Farming"

"The vertical farming bubble is finally popping"

And finally a guy who could have helped the VC's avoid a lot of pain:

Vaclav Smil: "How Much Energy Does It Take to Grow a Tomato?" 

Tuesday, May 28, 2024

"Invasion of the Zombie Salmon"

During the covid time, when politicians shut down restaurants, we  tried to shine a light on the plight of those who had supplied the restaurants, including salmon farmers.

Salmon were an interesting case in that, while very popular in restaurants people did not cook it at home nearly as much as they did other protein sources. The entire supply chain got hammered. Among the points that we tried to make was that despite the dire financial situation the growers absolutely had to spend the money to keep their farmed salmon from escaping into the wild salmon populations, Here's one of our last comments on that four-year experience, January 11 this year:

"Salmon Escaping Farms Are Wreaking Havoc on Wild Fish"
You idiots!

And from Der Spiegel, May 7:

Two huge companies farm salmon right off the coast of Iceland. Critics warn that escaped farm fish present an existential danger to wild populations in the country. The country's president – and the singer Björk – have entered the debate. 

The salmon is swimming directly towards the camera. Its left eye can’t be seen, but the right one seems to be looking directly at the viewer. Its mouth is open wide and its face is a flesh-colored, swollen-and-scarred mess, lacerated and eaten away at by sea lice and bacteria. A swimming cadaver. An animal bred in captivity, swimming in a hopelessly overcrowded net set up by humans – humans who are raking in millions.

Activist Veiga Grétarsdóttir calls the fish in the image the "Zombie Salmon." She says that her picture, which she snapped in the Arnarfjörður fjord in Iceland, changed everything.

Within just a few days last fall, workers pulled an estimated 1 million such zombie salmon out of the sea off the coast of Iceland, most of them dead or near death and all of them from the offshore fish farms. And beyond the conditions in which they are kept, there have been repeated cases of thousands of fish escaping the farming pens into the open sea – and into the territory of wild salmon.

Nowhere, it seems, is the debate over the mass-breeding of salmon as bitter and polarizing as it has become in Iceland. Many Icelanders are concerned that sickly, diseased and fattened farm fish could do permanent damage to the country’s ecosystem by causing irreparable harm to the native wild salmon population. Some two-thirds of Icelanders are now opposed to the fish breeding operations off the coast. Protests have been held in the capital city Reykjavík, and the singers Björk and Rosalia even dedicated a song to the salmon. The founder of the U.S. outdoor brand Patagonia even visited Iceland in an attempt to personally convince the president to put a stop to the farming.

But there are also many for whom the lucrative fish industry is part of their identity. And the government sees fish farming as an opportunity to redevelop the western part of the country.

Measured globally, Iceland is still a relatively small player in the salmon industry. Worldwide production of the fish could exceed 3 million tons this year for the first time, and Iceland is responsible for just 45,000 tons of that. Still, Iceland’s share translates to the weight of 225 million packages of smoked salmon at discount supermarkets. And the largest fish farms want to expand, hoping to double their output by 2030.

Those interested in getting a first-hand look at the fish farms in the Westfjords must spend almost an entire day driving along the coast, far off the well-beaten track of the Ring Road. In many spots, Route 60 is more of a track than a road, covered only by gravel for several kilometers at a time. Snowstorms are a fact of life all the way into April, with visibility often dropping to below 50 meters. Mobile telephones have no reception.

It is a region that even Icelanders prefer to move away from. It was once populated by whalers, and in recent years, the Westfjords have counted among the most sparsely populated regions of Europe. Despite the lack of residents and the challenging weather, though, the sheer number of trucks plying the roads of the peninsula is difficult not to notice – transporting their refrigerated payloads of farm salmon to southern Iceland, from where the product will be exported around the world.

"We are modernizing the Icelandic economy," says Bjørn Hembre, the CEO of Arnarlax, the market leader in farmed salmon in the country. Hembre has agreed to lead a tour through his company’s semi-automated fish slaughterhouse. Currently, in the offseason, the factory – where 50 people normally work – is clean and empty. Hembre shows the machine used to automatically kill the fish, an industry-standard model from Germany. Right behind it is another high-tech apparatus that cleans the salmon using a kind of vacuum. At another spot, there are six metal buttons that workers can use to remove fish from the conveyor belt as they pass by should imperfections be noticed. The buttons are labeled with words like "machine fault," "wounds" or "deformed."

In a foyer stands a rack full of white Crocs, each shelf labeled with the names of people who work here. Many of those names are Polish or Spanish. "Our opponents criticize us for only bringing in young, single male foreigners," says Hembre. "But we are repopulating the Westfjords. The communities surrounding our factory are growing."

The fish farms he oversees, he says, also help meet the rapidly growing global demand for salmon, which is rocketing upwards annually twice as fast as supply. Already, 70 percent of the fish come from aquaculture. Hembre himself is from Norway, as are his company’s investors and those of Arctic Fish, a large competitor. A small handful of large companies control the industry in the fjords of Norway, and their founders are today among the wealthiest people in the country.

Hembre leads the way into a darkened hall where 1.2 million young salmon spend a year before being transferred to the holding pens off the coast. The fish are given feed made of soya, the remains of marine animals and 5-6 percent fish oil. "It's all about amino acids and fatty acids," he says.

The fish are vaccinated, but they still succumb to illness more often than their wild cousins since they live in extremely crowded nets. Following a severe sea-louse infestation in October 2023, a million salmon from Arnarlax and its biggest competitor Arctic Fish had to be extracted and killed using a specialized ship from Norway.

The danger for the surrounding ecosystem begins as soon as the farmed salmon are transferred to the sea. They are enclosed in nets, but escapes are hardly uncommon. In October 2022, 81,000 salmon broke out of a single Arnarlax net into the wild. In August 2023, 3,500 animals escaped from Arctic Fish, some of them sexually mature. Soon thereafter, they were found in numerous rivers in the area. In September 2023, experts in Ísafjörður counted more farmed salmon than wild salmon....

....MUCH MORE

It is such a serious issue that if the fish farms don't get it together, now, they should be shut down. Previously on this point:
December 2021
"Farmed fish breeding with wild fish is changing the life cycle of wild fish"
This is exactly what you don't want and the reason this blog gets borderline hysterical when discussing farming genetically altered fish....

And it is accelerated maturation—also known as the egg-to-cash-in-the-bank-cycle—where the loudest proponent of genetically engineered salmon is focusing.

You Know Big Oil and Big Pharma But Are You Familiar With Big Salmon?
AquaBounty’s first commercial harvest of its GE salmon will be this month"
I'm not sure that this is the best way for me to get my omega-3 fatty acids. The genetic engineering was not focused on nutrition but rather on getting our finny friends to grow faster....

Genetically Modified Salmon Producer, AquaBounty to Sell Shares as Losses Deepen
AquaBounty’s Genetically Engineered Salmon is Coming
AquaBounty Is Now Selling Their Indiana-Raised Atlantic Salmon (but not the genetically modified fish, yet)
FrankenFish: "AquaBounty unveils 50,000 tonne target"
Here Come the Frankenfish: GMO Salmon Coming to a Store Near You

They absolutely must not allow these things to get anywhere near ocean salmon (or Great Lakes salmon for that matter).
And though the writer takes a blithely upbeat look at this development, we are posting it for information purposes only....
"The Rise of the Land Salmon"
No, not some evolutionary quirk like the walking sharks of Australia but rather an update on the Norwegian fish farming company, Atlantic Sapphire, which looks to own half the U.S. market.

Half the market.


"Salmon surge helps Norway shatter seafood record"
There are still a couple types of Norwegian farmed salmon on the Monterey Bay Aquarium Seafood Watch - Avoid - list but the industry has made great strides in the last ten years on the different areas of concern, diseases spread by overcrowding, impact on other species used as fishmeal food for the salmon, escapes and interbreeding with wild salmon, pesticide residue, antibiotics etc, etc.
Additionally one Norwegian brand grown onshore rather than in marine net pens garners MBSAW's highest rating:
"Atlantic salmon farmed worldwide in indoor recirculating tanks and the Nordic Blu brand produced by the Salten Aqua Group in Norway is a 'Best Choice.'" 
While another is a very highly rated "Good Alternate":
Norway - Nordland, Northeast Atlantic Ocean (Blue Circle Foods® brand)
For what it's worth I was speaking to a Russian lady on Friday who said she would only feed her cat Norwegian salmon, the one the cat preferred was smoked in Germany.
I asked if she would adopt me.

September 2019 (we're no cassandras-come-lately)
Almost 9,000 Tuna Escaped From Spanish Fish Farm During the Storm
This is exactly why you don't want our finny farmed friends anywhere near their wild cousins.
Yes, it was a big storm but that is no excuse. You have a population with exposure to one set of pathogens, and a developed resistance to same, mixing with a population that has no resistance and you end up killing the free-range critters.
That's not even looking at the GMO varieties we were ranting about a couple weeks ago....

Friday, February 16, 2024

Black History Month: "How Gladys West shaped the Earth for modern GPS"

From Hidden Heroes:

As a young African American girl living on a farm during the Great Depression, Gladys West discovered she had a gift for math. Forty years later, she mapped the shape of Earth and helped invent GPS.

The road to the one-room schoolhouse in Sutherland, Virginia, was three miles long, crossing railroad tracks and route 460, lined with honeysuckle and pines. An African American girl named Gladys Brown, the daughter of sharecroppers, walked the three miles to school each morning, often accompanied by a handful of friends. It was the late 1930s, but other than the occasional automobile passing the children on the highway, the world the girl lived in could have belonged to the 19th century. The small farmhouse where she lived had no indoor plumbing or electricity; when school was out, she would help her mother scrubbing clothes clean on a washboard, pressing them with an iron heated directly from a wood fire.

 “I dreamed of one day living somewhere bigger, prettier, and different,” she would later 
write, “but the dreams were vague because I had not been anywhere outside of Sutherland.”

Even at an early age, Gladys West (née Brown) was a promising student and a hard worker, sensing that a solid education would be crucial if she wanted to ultimately explore a wider world beyond rural Virginia. She had an aptitude for math, though the resources for actually nurturing those skills were limited, given that the one teacher at the Butterwood Road School—for “colored” students only—had to simultaneously teach a class composed of students ranging from first to seventh grades. And so Gladys West began to nurture her talents on her own. “I counted fenceposts along the road and across the fields as we walked to school, just to have something different to do,” she later recalled. “I became good at it, never realizing that I was sharpening some skills and abilities that I would one day utilize to help calculate the hypothetical shape of the Earth.”

You might well have benefited from those calculations several times today, while you were following the directions of your car’s navigation system, or looking for the nearest Italian restaurant on your phone—or anything else that relies on our modern-day ability to determine our exact geographic location using computers and satellites. Eight-year-old Gladys West wouldn’t have been able to even imagine such a thing, counting fenceposts on her way to the Butterwood Road school, but the path she was on would eventually lead to the creation of one of the modern world’s true miracles: the Global Positioning System, commonly known as GPS.....

....MUCH MORE 

Thursday, January 11, 2024

"Salmon Escaping Farms Are Wreaking Havoc on Wild Fish"

You idiots!

From Newsweek, December 11, 2023:

Wild populations of salmon in the Atlantic Ocean continue to face trouble from an unusual source: farmed salmon.

On Monday, the International Union for Conservation of Nature (IUCN) released its first red-list assessment for the freshwater fish category, finding that roughly 20 percent, or one-fifth, of all such species now face the threat of extinction. For many of these fish, long-standing factors such as global heating from climate change, overfishing and pollution continue to contribute to their declining populations.

According to the IUCN's report, the Atlantic salmon, a species known to live in freshwater and saltwater habitats, once classified as "least concern," has now been moved to "threatened." As noted in a report from The Guardian, these wild salmon populations in the Atlantic are facing a unique predicament due to the trend of farmed salmon escaping captivity and intermingling with them, with the outlet noting that breeding between wild and farmed salmon produces offspring that are less able to adapt to the effects of climate change.

In August, roughly 3,500 captive salmon escaped from a fish farm in Patreksfjörður, a village in northeast Iceland, an influx that one expert characterized as "an environmental catastrophe" while speaking to The Guardian. By this month, experts estimated, "many" of the escaped fish had reached sexual maturity, allowing them to potentially breed with wild populations.

Newsweek reached out to the IUCN via email for comment Monday.

Farmed salmon are known to reach maturity faster than wild ones, a trait they can pass on to their offspring, making it more difficult for subsequent generations to breed. This accelerated maturation also has the effect of increasing their "boldness and aggression," a report from The Cooldown explained, which increases the chance that the fish will be killed while still in their juvenile stage. Farmed fish can also carry diseases that pose danger to wild populations....

....MUCH MORE

Previously on this point:
December 2021
"Farmed fish breeding with wild fish is changing the life cycle of wild fish"
This is exactly what you don't want and the reason this blog gets borderline hysterical when discussing farming genetically altered fish....

And it is accelerated maturation—also known as the egg-to-cash-in-the-bank-cycle—where the loudest proponent of genetically engineered salmon is focusing.

You Know Big Oil and Big Pharma But Are You Familiar With Big Salmon?
AquaBounty’s first commercial harvest of its GE salmon will be this month"
I'm not sure that this is the best way for me to get my omega-3 fatty acids. The genetic engineering was not focused on nutrition but rather on getting our finny friends to grow faster....

Genetically Modified Salmon Producer, AquaBounty to Sell Shares as Losses Deepen
AquaBounty’s Genetically Engineered Salmon is Coming
AquaBounty Is Now Selling Their Indiana-Raised Atlantic Salmon (but not the genetically modified fish, yet)
FrankenFish: "AquaBounty unveils 50,000 tonne target"
Here Come the Frankenfish: GMO Salmon Coming to a Store Near You

They absolutely must not allow these things to get anywhere near ocean salmon (or Great Lakes salmon for that matter).
And though the writer takes a blithely upbeat look at this development, we are posting it for information purposes only....
"The Rise of the Land Salmon"
No, not some evolutionary quirk like the walking sharks of Australia but rather an update on the Norwegian fish farming company, Atlantic Sapphire, which looks to own half the U.S. market.

Half the market.


"Salmon surge helps Norway shatter seafood record"
There are still a couple types of Norwegian farmed salmon on the Monterey Bay Aquarium Seafood Watch - Avoid - list but the industry has made great strides in the last ten years on the different areas of concern, diseases spread by overcrowding, impact on other species used as fishmeal food for the salmon, escapes and interbreeding with wild salmon, pesticide residue, antibiotics etc, etc.
Additionally one Norwegian brand grown onshore rather than in marine net pens garners MBSAW's highest rating:
"Atlantic salmon farmed worldwide in indoor recirculating tanks and the Nordic Blu brand produced by the Salten Aqua Group in Norway is a 'Best Choice.'" 
While another is a very highly rated "Good Alternate":
Norway - Nordland, Northeast Atlantic Ocean (Blue Circle Foods® brand)
For what it's worth I was speaking to a Russian lady on Friday who said she would only feed her cat Norwegian salmon, the one the cat preferred was smoked in Germany.
I asked if she would adopt me.

September 2019 (we're no cassandras-come-lately)
Almost 9,000 Tuna Escaped From Spanish Fish Farm During the Storm
This is exactly why you don't want our finny farmed friends anywhere near their wild cousins.
Yes, it was a big storm but that is no excuse. You have a population with exposure to one set of pathogens, and a developed resistance to same, mixing with a population that has no resistance and you end up killing the free-range critters.
That's not even looking at the GMO varieties we were ranting about a couple weeks ago....

Sunday, August 13, 2023

Indoor Farming Bubble: "AppHarvest files Chapter 11 protection, plans to sell its Kentucky-based indoor farming facilities"

A few weeks late getting to this but it's the bookend to a mini-mania and deserves a place on the blog.

From AgFunderNews, July 24:

Disclosure: AgFunder, the parent company of AgFunderNews, was an investor in indoor farming robotics company RootAI, which was acquired by AppHarvest in 2021.

  • US-based indoor farming company AppHarvest has filed for Chapter 11 bankruptcy protection it says will aid in a “financial and operational” transition for the company.
  • The company told AgFunderNews that it has funding to maintain business for the next 60 days for its Morehead, Richmond and Somerset, Kentucky farms.
  • AppHarvest plans to sell its Berea, Kentucky greenhouse to its distribution partner Mastronardi Produce.
  • The company has secured a commitment from Equilibrium Capital for $30 million of debtor-in-possession financing.
‘The goal is to minimize any disruption to employees’
AppHarvest chief communication officer Travis Parman told AgFunderNews that the company has enough funding “to maintain business as usual over the next 60 days at Morehead, Richmond and Somerset” and that AppHarvest will “spend that time also working to sell the farms.”

Parman said he expects more details after AppHarvest gets feedback from the court later this week.

“Pending court approval, we expect to transition the Berea farm to Mastronardi Produce—the company from which we currently lease that farm. We expect Mastronardi to make employment offers to the team in Berea,” he added.

“Over the next 60 days, we’ll be working to sell the farms to investors with the hope that they stay operational and continue to employ about the same number of folks as now. The goal is to minimize any disruption to employees. We don’t know yet whether any of the potential buyers intend to maintain the AppHarvest name.”

Transitioning the strategic plan
In a statement, new CEO Tony Martin, who took over the role from founder Jonathan Webb this month, said, “The Chapter 11 filing provides protection while we work to transition operation of our strategic plan, Project New Leaf, which has shown strong progress toward operational efficiencies resulting in higher sales, cost savings and product quality.”....

If I ever us phrases like "transitioning the strategic plan" for the after-bankruptcy clean-up effort, just send me to Inuit territory, put me on an ice floe and give it a good push.

Previously:
March 3, 2023
"The vertical farming bubble is finally popping"
Finally?
Way back in 2020 we were seeing stuff like:

Now the Farmers Are Going Public Via SPACs
Not just any farmers though. This one plans to have the world's largest greenhouse.
And EBITDA by 2025.
When you are forecasting five years out it's probably a good idea to factor in the small but not zero chance of the Chinese Tomato Blight ravaging the world's vines.
(I made up the name for the blight, I have no idea what ails tomato plants)....

Followed by:
ICYMI: Indoor Farming Company AppHarvest Came Public Via SPAC (APPH)
Please excuse the delay on this post, we don't do much with IPO's and especially don't do much with SPACS, shell companies, blind pools or whatever they are being called now. S-1 filings are worth a look for the amount of information they disclose but that's about as far as our interest extends.

Which led to:
Indoor Farmer AppHarvest Plunges After Farm Delays (APPH)
For whatever reason, ZeroHedge chooses to go with "Martha Stewart-Backed" in their headline. I mean, it's true, she's an investor but unless the Tyler Durdens (for they are multiple) hate Martha Stewart I'm not sure why they put her up front.

"US vertical farming group AeroFarms joins unicorn club, strikes SPAC deal to go public"
Now is the time we juxtapose.
I was idly flipping through back issues of Vertical Farm Daily and stopped at this headline:
at the same time this from AgFunder dropped out of one of the feedreaders...

Which, by now you know the drill, led to
Not So SPACtacular Indoor Farming: "AeroFarms & Spring Valley terminate $1.2bn SPAC deal"
And:
Jamie Powell, Winston Churchill, and Anthony Downs On A Variant Of Semantic Satiation

Indoor Farming: "AppHarvest’s Spac forecasts go splat"

Always indoor grown fruit jam tomorrow, never indoor grown fruit jam today:
"For Today's SPACs, 2024 Will Be The BEST YEAR EVER"

Indoor Farming: "AppHarvest CEO envisions 'couple-decade journey' after going public" (APPH)
Good grief, a quarter of our readers could be dead by that time.
(more if the nukes start flying)

 See also:
                              Black Knight:   "It's just a flesh wound!" 

                              King Arthur:       "Look, you stupid bastard, you've got no arms left!"
          Black Knight:    "I am invincible! 
          King Arthur:      "You're a loony!" 
          Black Knight:    "The Black Knights always triumph!"

There are a few dozen more but rather than list them, quick kudos to former FT Alfalfaville scribe Jamie Powell for his dubiosity (and a tip d'chapeau to current FT Alfalfavillain Bryce Elder for the "Alfalfaville" moniker) and finally a guy who could have helped the VC's avoid a lot of pain:

Vaclav Smil: "How Much Energy Does It Take to Grow a Tomato?" 

Friday, March 3, 2023

"The vertical farming bubble is finally popping"

 Finally?

From Fast Company, February 27:

Climate change might make growing produce indoors a necessity. But despite taking in more than a billion dollars in venture capital investment, most companies in the industry seem to be withering, unable to turn a profit on lettuce. 

When workers arrived at Fifth Season, an indoor farm in the former steel town of Braddock, Pennsylvania, on a cloudy Friday morning last October, they expected it would be a normal day.

The farm, which had opened two years earlier, seemed to be running smoothly, growing tens of thousands of pounds of lettuce per year inside a robot-filled 60,000-square-foot warehouse. The brand was selling salad kits—like a taco-themed version with the company’s baby romaine, plus guacamole, tortilla strips, and cheese—in more than 1,200 stores, including Whole Foods and Kroger. Earlier in the year, the company had said that it projected a 600% growth in sales in 2022. The branding was updated in October, and new packages were rolling out in stores. Solar panels and a new microgrid had recently been installed at the building. A larger farm was being planned for Columbus, Ohio.

But the workday never started. “The CEO came in and said, ‘Justin, we gotta talk,’” says Justin Stricker, who had worked as a maintenance technician at the startup since it launched. “He said, ‘Don’t let anyone set up. We’re going to have a big meeting.’ I thought I was getting fired. The whole entire place was just done.” The managers announced that the company was closing immediately. After shutting down the electrical equipment and draining water lines, the plants were left to die. Stricker and dozens of others were left scrambling to find new jobs. 

Fifth Season’s failure is only the most dramatic signal of a reckoning taking place in what’s known as the vertical farming sector. AppHarvest, which runs high-tech greenhouses in Appalachia growing tomatoes and greens, said in a recent quarterly report that it had “substantial doubt about our ability to continue as a going concern” unless it could raise more money; the company is currently being sued by investors who argue that it misled them about its viability. AeroFarms, an early pioneer in the space, pulled out of a proposed SPAC deal last year. In the company’s May 2021 investor presentation, AeroFarms, which was founded in 2004, estimated just $4 million in 2021 EBITDA-adjusted revenue—and $39 million in losses.

The litany continues: Agricool, a French company growing greens in recycled shipping containers, went into receivership in January. Infarm, a vertical farming company based in Berlin, recently announced that it was laying off more than half of its workforce—500 workers. IronOx, which built a complex robotic system to run its indoor farms, laid off nearly half of its staff.

If these tremors in the vertical farming industry seem unsettling, what’s to come could well be worse. As of the beginning of December 2022, $1.7 billion had been invested in indoor growers, more than any other part of ag tech. Investors have been drawn to the idea of “disrupting” a 10,000-year-old industry; when the Vision Fund first invested in Plenty, SoftBank CEO Masayoshi Son said that the company would “remake the current food system.” Controlled indoor agriculture is also seen as a way to respond to climate change. And, of course, investors expect to make money.

Nearly 20 years after the first vertical farm opened, with capital drying up like heads of romaine under an unrelenting California heat wave, one now has to wonder two things: Is it even possible to compete with the economics of outdoor farming? And how did investors think that they could find Silicon Valley-style returns in . . . lettuce?....

....MUCH MORE, they go deep.

Way back in 2020 we were seeing stuff like:

Now the Farmers Are Going Public Via SPACs
Not just any farmers though. This one plans to have the world's largest greenhouse.
And EBITDA by 2025.
When you are forecasting five years out it's probably a good idea to factor in the small but not zero chance of the Chinese Tomato Blight ravaging the world's vines.
(I made up the name for the blight, I have no idea what ails tomato plants)....

Followed by:
ICYMI: Indoor Farming Company AppHarvest Came Public Via SPAC (APPH)
Please excuse the delay on this post, we don't do much with IPO's and especially don't do much with SPACS, shell companies, blind pools or whatever they are being called now. S-1 filings are worth a look for the amount of information they disclose but that's about as far as our interest extends.

Which led to:
Indoor Farmer AppHarvest Plunges After Farm Delays (APPH)
For whatever reason, ZeroHedge chooses to go with "Martha Stewart-Backed" in their headline. I mean, it's true, she's an investor but unless the Tyler Durdens (for they are multiple) hate Martha Stewart I'm not sure why they put her up front.


"US vertical farming group AeroFarms joins unicorn club, strikes SPAC deal to go public"
Now is the time we juxtapose.
I was idly flipping through back issues of Vertical Farm Daily and stopped at this headline:
at the same time this from AgFunder dropped out of one of the feedreaders...

Which, by now you know the drill, led to
Not So SPACtacular Indoor Farming: "AeroFarms & Spring Valley terminate $1.2bn SPAC deal"
And:
Jamie Powell, Winston Churchill, and Anthony Downs On A Variant Of Semantic Satiation

Indoor Farming: "AppHarvest’s Spac forecasts go splat"

Always indoor grown fruit jam tomorrow, never indoor grown fruit jam today:
"For Today's SPACs, 2024 Will Be The BEST YEAR EVER"

Indoor Farming: "AppHarvest CEO envisions 'couple-decade journey' after going public" (APPH)
Good grief, a quarter of our readers could be dead by that time.
(more if the nukes start flying)

 See also:
                              Black Knight:   "It's just a flesh wound!" 

                              King Arthur:       "Look, you stupid bastard, you've got no arms left!"
          Black Knight:    "I am invincible! 
          King Arthur:      "You're a loony!" 
          Black Knight:    "The Black Knights always triumph!"

There are a few dozen more but rather than list them, quick kudos to former FT Alfalfaville scribe Jamie Powell for his dubiosity (and a tip d'chapeau to current FT Alfalfavillain Bryce Elder for the "Alfalfaville" moniker) and finally a guy who could have helped the VC's avoid a lot of pain:

Vaclav Smil: "How Much Energy Does It Take to Grow a Tomato?" 

Saturday, February 4, 2023

Black History Month: "How Gladys West shaped the Earth for modern GPS"

From Hidden Heroes:

As a young African American girl living on a farm during the Great Depression, Gladys West discovered she had a gift for math. Forty years later, she mapped the shape of Earth and helped invent GPS.

The road to the one-room schoolhouse in Sutherland, Virginia, was three miles long, crossing railroad tracks and route 460, lined with honeysuckle and pines. An African American girl named Gladys Brown, the daughter of sharecroppers, walked the three miles to school each morning, often accompanied by a handful of friends. It was the late 1930s, but other than the occasional automobile passing the children on the highway, the world the girl lived in could have belonged to the 19th century. The small farmhouse where she lived had no indoor plumbing or electricity; when school was out, she would help her mother scrubbing clothes clean on a washboard, pressing them with an iron heated directly from a wood fire.

 “I dreamed of one day living somewhere bigger, prettier, and different,” she would later 
write, “but the dreams were vague because I had not been anywhere outside of Sutherland.”

Even at an early age, Gladys West (née Brown) was a promising student and a hard worker, sensing that a solid education would be crucial if she wanted to ultimately explore a wider world beyond rural Virginia. She had an aptitude for math, though the resources for actually nurturing those skills were limited, given that the one teacher at the Butterwood Road School—for “colored” students only—had to simultaneously teach a class composed of students ranging from first to seventh grades. And so Gladys West began to nurture her talents on her own. “I counted fenceposts along the road and across the fields as we walked to school, just to have something different to do,” she later recalled. “I became good at it, never realizing that I was sharpening some skills and abilities that I would one day utilize to help calculate the hypothetical shape of the Earth.”

You might well have benefited from those calculations several times today, while you were following the directions of your car’s navigation system, or looking for the nearest Italian restaurant on your phone—or anything else that relies on our modern-day ability to determine our exact geographic location using computers and satellites. Eight-year-old Gladys West wouldn’t have been able to even imagine such a thing, counting fenceposts on her way to the Butterwood Road school, but the path she was on would eventually lead to the creation of one of the modern world’s true miracles: the Global Positioning System, commonly known as GPS.....

....MUCH MORE 

Friday, March 18, 2022

Indoor Farming: "AppHarvest CEO envisions 'couple-decade journey' after going public" (APPH)

Good grief, a quarter of our readers could be dead by that time.
(more if the nukes start flying)
From Yahoo Finance:

AppHarvest (APPH) CEO Jonathan Webb said the company has its eyes on the long term as it looks to "institutionalize" controlled environment agriculture (CEA).

"We see this as a couple-decade journey, and really, we're in our first decade," Webb told Yahoo Finance's Julie Hyman at the 2022 SXSW Conference (video above). "For us, being transparent with not only the consumer, but having that transparency of a public company as we build a large global food company, we think the long-term benefits are great."

The Kentucky-based agriculture tech company, which was founded in 2017, began trading on the Nasdaq in late February 2021 after completing a SPAC merger with Novus Capital Corporation. Since then, AppHarvest shares have plunged 70%.

Despite IPOs last year having the worst returns in a decade, Webb said he believed 2021 was an important time for the company to go public and stood by the decision to take the company's mission "directly to the Street" and to receive the "rigor of Wall Street early," which he claimed will only make the company "stronger in the long run."....

....MUCH MORE

 See also:
                              Black Knight:   "It's just a flesh wound!" 

                              King Arthur:       "Look, you stupid bastard, you've got no arms left!"
          Black Knight:    "I am invincible! 
          King Arthur:      "You're a loony!" 
          Black Knight:    "The Black Knights always triumph!"

 Previously:

October 1, 2020
Now the Farmers Are Going Public Via SPACs
Not just any farmers though. This one plans to have the world's largest greenhouse.
And EBITDA by 2025.
When you are forecasting five years out it's probably a good idea to factor in the small but not zero chance of the Chinese Tomato Blight ravaging the world's vines.
(I made up the name for the blight, I have no idea what ails tomato plants)

February 3, 2021
ICYMI: Indoor Farming Company AppHarvest Came Public Via SPAC (APPH)
Please excuse the delay on this post, we don't do much with IPO's and especially don't do much with SPACS, shell companies, blind pools or whatever they are being called now. S-1 filings are worth a look for the amount of information they disclose but that's about as far as our interest extends.

February 1, 2022

Indoor Farmer AppHarvest Plunges After Farm Delays (APPH)
For whatever reason, ZeroHedge chooses to go with "Martha Stewart-Backed" in their headline. I mean, it's true, she's an investor but unless the Tyler Durdens (for they are multiple) hate Martha Stewart I'm not sure why they put her up front.

That last one includes links to Jamie Powell at FT Alphaville and a post on why 2024 will be the best year ever for the 2020 - 2021 vintage SPACs. Plus more on Martha and a cameo by Winston Churchill.

Tuesday, February 8, 2022

Another Indoor Farmer (Kalera) Will Try Coming Public Via SPAC (RICO)

In the U.S. the Acronym RICO is commonly assumed to refer to the Racketeer-Influenced and Corrupt Organization Act of 1970. Here it's a stock symbol.

If I were management I'd change the symbol.

From FoodDive, February 1:

Kalera to debut on Nasdaq with SPAC deal valuing the vertical farming company at $375M 

Dive Brief:

  • Vertical farming company Kalera AS is merging with Agrico Acquisition Corp., a Nasdaq publicly traded special purpose acquisition company (SPAC), in a deal that would value the combined entity at approximately $375 million, the companies said in a statement. The transaction has been approved by both companies' boards but has not yet been voted on by their shareholders. It is expected to close in the second quarter. Once the deal goes through, Kalera will delist from the Euronext Growth Oslo exchange, where it is currently traded. 
  • Florida-based Kalera would use the new capital to build its next generation of farms in the U.S. and globally. It currently has four facilities in operation and six under construction. Kalera's interim CEO Curtis McWilliams and the company's current management team would continue to lead the business.
  • If the transaction closes, Kalera would be the latest in a series of controlled environment agriculture companies to go public on Nasdaq through a SPAC deal, following Local Bounti and AppHarvest. It would also gain a financial boost for expansion at a time when other vertical farming operators are mapping out major growth plans and raising record sums of money.

....MUCH MORE

Our last few posts on the industry:

Tuesday, February 1, 2022

Indoor Farmer AppHarvest Plunges After Farm Delays (APPH)

For whatever reason, ZeroHedge chooses to go with "Martha Stewart-Backed" in their headline. I mean, it's true, she's an investor but unless the Tyler Durdens (for they are multiple) hate Martha Stewart I'm not sure why they put her up front.

Lifted in toto from ZH:

On Monday, high-tech greenhouse startup AppHarvest plunged as much as 23% to $2.66, a 52-week low after reporting worsening preliminary 2021 financial results and farm delays. 

The company expects a full-year net loss between $170-$172.5M, including fourth-quarter non-cash goodwill and an intangible impairment charge of around $60M. FY21 revenues are estimated at $8.9-$9.1M, higher than the company's guidance of $7-$9M. Adjusted EBITDA loss is forecasted to be between $69.3-$72.5M, compared with $70-$75M.

One of the main drivers for share decline today was delays at two indoor verticle farms. The first was at an indoor facility that grows salad greens and another for tomatoes, and both won't be fully operational until the end of the year. The company said last August that both facilities would be operational by the midpoint of the year. 

The Kentucky-based vertical farm company grows vegetables in futuristic greenhouses that yield up to 30x more crops per acre than traditional outdoor farming. Operational delays and money-losing operations have resulted in the share price cratering at least 88% from the IPO price. 

Short sellers have piled into the stock on deteriorating fundamentals, with 15.3 million shares short over the last year. The short-interest ratio is about 11.532. 

AppHarvest has routinely boasted about food entrepreneur and icon Martha Stewart and Impossible Foods Chief Financial Officer David Lee joining the company's board. However, touting celebrities has yet to boost the share price.
Previous mentions of AppHarvest:
Not So SPACtacular Indoor Farming: "AeroFarms & Spring Valley terminate $1.2bn SPAC deal"
ICYMI: Indoor Farming Company AppHarvest Came Public Via SPAC (APPH)

Jamie Powell, Winston Churchill, and Anthony Downs On A Variant Of Semantic Satiation
Indoor Farming: "AppHarvest’s Spac forecasts go splat"
"For Today's SPACs, 2024 Will Be The BEST YEAR EVER"

And on Martha Stewart
June 28, 2013
"Martha Stewart Would Kill Donald Trump, Marry Michael Bloomberg"
From New York Mag's Daily Intel:
NEW YORK, NY - FEBRUARY 12:  Martha Stewart attends the Dennis Basso Fall 2013 fashion show during Mercedes-Benz Fashion Week at The Stage at Lincoln Center on February 12, 2013 in New York City.  (Photo by Andy Kropa/Getty Images for Mercedes-Benz Fashion Week)Ageless Queen of Everything Martha Stewart was recently asked to play a game of "Shag, Marry, Kill" (better known as FMK) with billionaires Donald Trump, Michael Bloomberg, and Bill Gates, and her answer is almost as good as the part of the interview where she talks about rollings joints. Seriously: Someone lock this woman down.
And in 2015:

..Me, I'm going to go think about a leaping and bounding Martha Stewart: 

We last dropped in on Martha when she offered as a sweepstakes prize a weekend with her to visit the Svalbard seed vault.

...In other Svalbard news, I'm not clear on all the details but apparently Martha Stewart is doing some fundraising for Crop Trust with a sweepstakes prize for donating:

The trip is in February so bring your mittens should you win.

Seriously, how can the Tyler Durdens hate someone who offered a trip to Svalbard to see the Seed Vault?

Tuesday, January 25, 2022

"The world’s largest vertical farm will have a secret ingredient: fish"

From Fast Company, January 18:

Fish fertilize the plants—and then become another income stream. 

A sprawling new building that will soon be constructed in Luzerne County, Pennsylvania—at 250,000 square feet, roughly the size of two entire city blocks in Manhattan—will be the largest vertical farm in the world when it’s completed in 2023. Inside, though, you won’t find just vegetables: Tanks full of fish will sit near vertical stacks of trays filled with certified organic microgreens.

In the vertical farming industry, which is raising billions from investors, many startups grow greens like spinach or bok choy inside carefully-managed indoor spaces, and then selling the fresh produce to local consumers. But Brooklyn-based company Upward Farms is unusual in its use of fish, a version of a centuries-old practice called aquaponics. While others use synthetic fertilizer in their growing systems, the company uses fish waste that it filters out of tanks to provide nutrients to its plants. Both the fish and greens are then sold for food....

....MUCH MORE

Related: 

Meanwhile In Sweden: Aquaponics Startup Plans To Grow Salmon, Cucumbers, Herbs and Tomatoes At Supermarkets

Tuesday, January 11, 2022

Very Meta: "Farmer Makes His Cows Wear VR Goggles to Increase Milk Production"

From Oddity Central, January 10:

In an attempt to increase the daily milk yield of his cows, a farmer in Turkey is experimenting with virtual reality goggles that make the bovines think they are in the middle of a green pasture in summer.

İzzet Koçak’s family has been rearing cattle on a farm in Aksaray, Turkey for three generations, and the business has endured for so long because they have always tried to keep up with the times. Now it’s Izzet’s turn to make sure the family business does well enough to be passed on to the next generation, and he is going all-in on unconventional solutions. After experimenting with soothing music designed to relax the cows, the Turkish farmer is now experimenting with special VR goggles that allegedly make the animals believe that they are grazing in a sunny pasture, instead of a gloomy indoor farm in the middle of winter.

“We get an average of 22 liters of milk daily from our cows,” Koçak told the Anadolu News Agency. “We had 2 of our cows wear virtual reality glasses and watch a vast green pasture all day, and the daily milk production increased up to 27 liters. These glasses are emotionally good for the animals, we noticed that the animals are less stressed. This was reflected both in the milk yield and in the quality of milk.”...

....MUCH MORE

One of the cows that Oddity Central used to illustrate their piece was this gal

Farmer Makes His Cows Wear VR Goggles to Increase Milk ...

 who elicited an "I know her" from yours truly. And sure enough, the Turkish farmer was inspired by a story we happened to link to in 2018, "Meanwhile, in Russia: Cows Wear Virtual-Reality Headsets To Help Them Ward Off Winter Blues".

That's us, cow forensics and identification.

Possibly also of interest:

"The World’s First Milk Sommelier"

Madame, Monsieur, may I be so bold as to recommend the Château Moo? Truly one of the great whites.

"‘Fitbits for cows’ is a game changer"
Here comes another bubble.

"First Mathematical Model of Cow Behaviour "

Comfy cows in Norway more productive, more relaxed
The world is getting all Oniony*. From Reuters:

Comfortable Norwegian cows are producing more milk and have less udder infections since new regulations allowing them to relax for up to half a day on soft rubberized mattresses were introduced....MORE
*Compare with America's Finest News Source:
Animal-Rights Activists Release 71,000 Cows Into Wild
Cows Instinctively Know North
73 Percent Of U.S. Livestock Show Signs Of Clinical Depression
Gasoline Still Inexplicably Cheaper Than Milk
Area Cow Doesn't Suspect A Thing
Vaclav Smil: Planet of the Cows
Tycoon and Oxford Professor Brian Bellhouse Killed By Cows
We have been warning against the homicidal beasts for years, links below.

The Cows Are Trying To Kill Us
Joe Weisenthal and Tracy Alloway: "What Mathematical Models of Herding Cows Can Teach Us About Markets"
"Robots Will Almost Certainly Not Train Cows To Kill Us All As Part Of Their Plan For Worldwide Domination"

No, it is NOT an obsession. We just want to keep the cows happy. 

Wednesday, December 15, 2021

"Can indoor farms reach skyscraper height?"

From Bloomberg via Channel News Asia, December 14:

https://onecms-res.cloudinary.com/image/upload/s--FZzAxZWv--/c_fill%2Cg_auto%2Ch_468%2Cw_830/f_auto%2Cq_auto/v1/mediacorp/cna/image/2021/12/14/2000x-1.jpg?itok=6BY0MkhB

 A proposed skyscraper in Shenzhen would grow food along the border of each of its 51 floors. (Photo: Carlo Ratti Associati)

As indoor farms that don’t rely on soil become a growing strategy to tackle food insecurity, one academic has a vision to take vertical farming to new heights in China’s mega-cities: The farmscraper. 

Carlo Ratti, an architect who runs MIT’s Senseable City Lab, is proposing a 51-story skyscraper for China’s technology hub of Shenzhen with a large-scale vertical hydroponic farm inside that can produce crops like salad greens, berries and tomatoes to feed up to 40,000 people per year.

The proposed tower, which would include other amenities like office space, a supermarket and a food court, is being shortlisted for Chinese hypermarket chain Wumart’s new headquarters.

It’s one of a number of ideas to expand vertical farms, as breakthroughs in hydroponic and aeroponic technology allow for these indoor facilities to produce crops with higher yields using less land and water. 

Vertical farms are intended to grow crops more efficiently — stacking them in trays or vertical planters in indoor climate-controlled conditions, and using algorithms and other technology to optimize light and growing conditions, often in urban environments. 

In Britain, Shockingly Fresh expects to grow about 2 million heads of leafy greens a year on its first vertical farm.

And AeroFarms in Newark, New Jersey — billed as the world’s largest vertical farm when it opened in 2016 — grows about 2 million pounds of food each year on its 70,000-square-foot facility....

....MUCH MORE, it's quite a story.

BBG has to get with the program though. As noted on November 11: "Indoor and Vertical Farming Now Rebranded As Novel Farming Systems (who's who and what's what in the investment end of the biz)" 

Novel Farming Systems.

Monday, October 18, 2021

Not So SPACtacular Indoor Farming: "AeroFarms & Spring Valley terminate $1.2bn SPAC deal"

 From AgFunderNews, October 18:

  • US vertical farmer AeroFarms and special purpose acquisition company (SPAC) Spring Valley have scrapped their merger deal.
  • The scuttled transaction, announced in March this year, would’ve seen Newark-based AeroFarms become a Nasdaq-listed public company. At the time, the deal was expected to raise $357 million in gross proceeds for the business, valuing it at $1.2 billion. 
  • AeroFarms and Spring Valley said in a statement that they “mutually agreed” to terminate the agreement. “We made this decision to ensure that AeroFarms is in an optimal position to pursue our growth strategy,” said AeroFarms co-founder and CEO David Rosenberg. “We believe proceeding with this transaction is not in the best interests of our shareholders.” 

Why it matters:...

....MORE

Previously:
"US vertical farming group AeroFarms joins unicorn club, strikes SPAC deal to go public"

Now is the time we juxtapose.
I was idly flipping through back issues of Vertical Farm Daily and stopped at this headline:
“Vertical farms are not going to create venture level returns”
at the same time this from AgFunder dropped out of one of the feedreaders:.... 

ICYMI: Indoor Farming Company AppHarvest Came Public Via SPAC (APPH)

Please excuse the delay on this post, we don't do much with IPO's and especially don't do much with SPACS, shell companies, blind pools or whatever they are being called now. S-1 filings are worth a look for the amount of information they disclose but that's about as far as our interest extends.

Monday, May 31, 2021

Indoor Farmer Bowery Farming Inc. Raises $300 Million Series C Round at $2.3 Billion Valuation

That's a lot of salad greens.

From AgFunderNews, May 25:

Bowery bags ‘biggest-ever’ vertical farming raise with $300m Series C

Bowery has closed a $300 million Series C round, marking what it claims is “the largest private fundraise to date for an indoor farming company.” New investor Fidelity Management & Research led the round. Amplo and Gaingels also came on board as new backers.

Existing investors GV, General Catalyst, GGV Capital, Temasek, and Groupe Artémis re-upped in the round.

A few celebrities also took the opportunity to add vertical farming to their portfolios. including Formula One driver Lewis Hamilton, basketball player Chris Paul, actor Natalie Portman, singer-songwriter Justin Timberlake, and chef and hunger advocate José Andrés.

Bowery has now raised $472 million in total funding and claims a valuation of $2.3 billion.

“It’s a really exciting milestone for the whole company and everybody is really thrilled,” founder and CEO Irving Fain tells AFN.

“Not just because it recognizes the work that we’ve done, but I take it equally for the work that’s still ahead and the belief of some really great partners in terms of what we’re going to accomplish in this segment.”

This landmark moment for Bowery offers Fain an opportunity to reflect on how far the New York-based startup has come since launching in 2015 – and where the broader indoor farming segment may be headed. 

Bowery’s sales and growth data paint an impressive picture, perhaps helping to explain the sizeable Series C raise. It claims to maintain category leadership in over 850 stores where its packaged leafy greens and herbs are sold. It also boasts a 750% boost in retail growth since January 2020 while adding Albertsons supermarkets to its list of retailers.

E-commerce sales have jumped 400%, too. 

“I think it’s becoming very clear that the demand for what we’re doing at Bowery is strong and the technology and the progress that we’ve made is really evidence [of that] to the team and the broader community. I think we felt like starting to expand more, quickly, made a lot of sense,” Fain says.....

....MUCH MORE

And at AgFunderNews, May 27   

Future Food : How Bowery reached $2.3bn and is building its biggest farm yet

Friday, April 9, 2021

"Vertical farms nailed tiny salads. Now they need to feed the world"

As noted in the intro to"2-Acre Vertical Farm Run By AI And Robots Out-Produces 720-Acre Flat Farm"" 

Always keeping in mind that vertical farms are growing the highest-value crops to justify their cost. So no beans or wheat or rice or potatoes or barley or any of the other crops that supply the majority of calories that humans consume....

From Wired UK, February 24:

Vertical farming is finally growing up. But can it move from salad garnishes for the wealthy to sustainable produce for the masses?

Gartenfeld Island, in Berlin’s western suburb of Spandau, was once the bellows of Germany’s industrial revolution. It hosted Europe’s first high-rise factory and, until World War II, helped make Berlin, behind London and New York, the third-largest city on Earth.

Today’s Berlin is still a shell of its former self (there are over a hundred cities more populous), and the browbeaten brick buildings that now occupy Gartenfeld Island offer little in the way of grandeur. Flapping in the gloom of a grey November morning in 2020 is a sign which reads, in German, “The Last Days of Humanity”.

Yet inside one of these buildings is a company perched at agriculture’s avant-garde, part of the startup scene dragging Berlin back to its pioneering roots. In under eight years, Infarm has become a leader in vertical farming, an industry proponents say could help feed the world and address some of the environmental issues associated with traditional agriculture. Its staff wear not the plaid or twill of the field but the black, baggy uniform of the city’s hipsters.

 Infarm has shipped over a thousand of its “farms” to shops and chefs across Europe (and a few in the US). These units, which look like jumbo vending machines, grow fresh greens and herbs in rows of trays fed by nutrient-rich water and lit by banks of tiny LEDs, each of which is more than ten times brighter than the regular bulb you’d find in your dining room. Shoppers pick the plants straight from the shelf where they’re growing.

Gartenfeld Island, however, is home to something more spectacular. Here, in a former Siemens washing machine factory, stand four white, 18-metre-high “grow chambers”, controlled by software and served by robots. These are the company’s next generation of vertical farms: fully-automated, modular high-rises it hopes will scale the business to the next level. According to Infarm, each one of these new units uses 95 per cent less water, 99 per cent less space and 75 per cent less fertilizer than conventional land-based farming. This means higher yields, fresher produce and a smaller carbon footprint.

Agriculture is a £6 trillion global industry that has altered the face and lungs of the Earth for 12,000 years. But, unless we change our food systems, we’ll be in trouble. By 2050, the global population will be 9.7 billion, two billion more than today. Fifty-six per cent of us live in cities; by 2050 it will be 70 per cent. If the prosperity of megastates like India and China continues to soar, and our diets remain the same, we will need to double food production without razing the Amazon to do it. That sign on Gartenfeld Island might not be so alarmist.

Vertical farmers believe they are a part of the solution. Connected, precision systems have grown crops at hundreds of times the efficiency of soil-based agriculture. Located in or close to urban centres, they slash farm-to-table time and eliminate logistics. New tech is allowing growers to tamper with light spectra and manipulate plant biology. Critics, however, question the role of vertical farms in our food future. They are towering lunchboxes for late capitalism, they argue – producing garnishes for the rich when it is the plates of the poor we must fill. Vertical farms already make money, and heavyweights including Amazon and SoftBank are investing in various companies in the hopes of cornering a market expected to be worth almost £10 billion in the next five to ten years. Infarm is leading that race in Europe. It has partnered with European retailers including Aldi, Carrefour and Marks & Spencer. In 2019 it penned a deal with Kroger, America’s largest supermarket chain. Venture capitalists have handed the firm a total of £228 million.

Not bad for a hare-brained experiment that started in a Berlin apartment.....

....MUCH MORE

Recently:

And many, many more (use the 'search blog' box if interested)

Thursday, April 1, 2021

A Very Japanese Vertical Farm Raises $50 Million

....However, this knowhow isn’t what Koga considers to be Oishii’s “secret sauce.” Rather, that’s the bees that the startup’s using handle pollination.

While Koga won’t spill the ‘bees’ about how all this works in Oishii’s context, he claims to have found a way to replicate a natural environment within an indoor vertical farm that convinces the critters they’re outside. 

“They live in harmony with our farmers and robots,” is all Koga will add....

Ah yes, the bees live in harmony with the robots.

From AgFunder, March 31: 

Oishii sees itself as ‘the Tesla of vertical farming.’ Here’s how it’s cracking CEA strawberries

Indoor farming is best known for leafy greens and micro-herbs. But New York’s Oishii is hoping to blaze a new trail and sweeten up the segment. 

“A lot of people call strawberries the holy grail of vertical farming,” Oishii founder Hiroki Koga tells AFN. “Strawberries are the hardest crop to grow in a vertical system and it’s been every vertical farmer’s dream to grow them. Conquering strawberries allows us to grow into other crops very quickly.”

The startup announced a $50 million funding round this month led by Mirai Creation Fund, part of Tokyo-based SPARX Group. Additional investors included Sony Innovation Fund — the corporate venture arm of Japanese tech giant Sony — Tokyo-based AI company PKSHA Technology, and San Francisco-based VC Social Starts.

“We’ve had multiple offers from different funds but we ultimately decided to go with SPARX because they have a very strategically aligned mandate. They’re backed by Toyota, one of the largest manufacturing companies in the world [and] vertical farming is the intersection of agriculture and manufacturing,” Koga says.

Although it may seem odd for Toyota to be interested in agrifoodtech, the carmaker is working on its Woven City project located at the base of Japan’s Mount Fuji. It’s a so-called “living laboratory” where researchers live and work full-time to imagine what future cities may look like through technological innovation.

Koga is no stranger to controlled environment ag (CEA). Six years ago, he was working as a CEA consultant in Japan, helping large corporations enter the space. While Koga views Japan as the birthplace of vertical farming, he moved to the US in 2015 – around the time that the method was becoming popular in the country.

Alongside the allure of being the first to crack indoor strawberry cultivation, Koga sees the fruit as a way to address what he calls the “unit economics problem” in indoor farming. He sees strawberries as providing a very strong revenue and profit model, as well as a crop that can further “democratize” vertical farming. 

“In order to democratize it, I wanted to start with something that’s truly impactful — not products that people will buy because they are sustainable — [but] something that is superior compared to what is on the market, and that would completely change people’s experience,” Koga says.

He leveraged his personal network in Japan to collaborate with farmers and research institutions on the details of indoor strawberry cultivation – from seeding all the way to harvesting. It took “countless” iterations to get the formula right, he says.

“There’s probably 20 or 30 different things that you can tweak in a given cycle of the plant. So, let’s say there are five or six different stages of the plant life cycle – if you multiply all of those, there are millions of different combinations,” he explains.

“It’s a matter of tweaking those on a daily basis to figure out what the perfect mix is.”

However, this knowhow isn’t what Koga considers to be Oishii’s “secret sauce.” Rather, that’s the bees that the startup’s using handle pollination....

....MUCH MORE

There may be another very good reason to keep the bees happy.

As with the million-dollar tuna (most recent record $3.1 million for a big fish) the Japanese are willing to bid-up fruit prices. The Bijin-hime Strawberry can fetch $4000 per berry while your run-of-the-mill perfection...

From Produce report, January 13, 2020:

108 Strawberries Sell for $13,700 at Japanese Auction

“Cherry freedom” – a recently coined term referring to the ability to purchase and eat imported cherries without a second thought – has sparked numerous discussions on the Chinese internet. As living costs continue to increase, Chinese netizens have advanced imported cherries as a new standard for wealth and a way to playfully lament their own financial limitations.

However, in Japan, achieving “Fruit Freedom” can seem even more of a mission impossible.

Fruit is treated differently by many in Japan, where fruit purchase and consumption are tied to cultural and social practices. As a result, Japanese fruit connoisseurs are often willing to pay jaw-dropping prices at auction for fruits that have been specifically and painstakingly developed to cater to a niche market. For example, a dark-skinned Densuke watermelon from Hokkaido can range in price from $200 to $6,000. Meanwhile, a pair of premium persimmons recently fetched 540,000 Japanese yen ($4,950) at auction, while a 30-grape bunch of the Ruby Roman variety sold for 1.1 million yen ($10,900).

It is said that the Japanese eat with their eyes. This perception was proven absolutely right last month when, at an auction in Osaka, 108 strawberries gracefully presented in three luxuriously golden containers sold for an astonishing 1.5 million yen ($13,700)....

....MUCH MORE