Why can my mom make better orange juice than a trillion-dollar company?
TLDR: Fresh and healthy foods are considered a luxury, even in a first-world economy. Logistical powerhouses like Amazon have tried to expedite the farm to fork process, but significant infrastructure and supply chain challenges remain, leaving personal gardens as some of the most cost-effective and healthy options for consumers.
An idea first popularized by graduate students at the turn of the century, vertical farming has now become a burgeoning industry within the agricultural technology (“agtech”) sector as startups develop more accessible, profitable, and transparent approaches to farming.
Today I opened the fridge and poured myself a cold glass of orange juice. As I savored the sweet taste of the freshly squeezed Florida oranges picked from my parent’s backyard, I quietly mused over how Whole Foods, located down the street from my parent’s house in Florida, has never sold juice quite this good. Yes, my mom is awesome…but there’s no reason why her oranges should taste better than those of an organic supermarket chain owned by a trillion-dollar company like Amazon.
After a bit of googling, I discovered that fresh produce in the US travels about 1,500 miles to get from the farm to your plate. These long journeys are costly, cause produce to lose their natural flavor, contribute significantly to global carbon emissions, and have dubious nutritional value as crops are often genetically modified or injected with preservatives to lengthen their edible lifespan.
By growing crops in vertically stacked layers in climate-controlled environments, vertical farming startups are alleviating some major supply chain issues that demand long-haul produce journeys. Additionally, they’re capitalizing on drastic population shifts to urban centers and increasing consumer demand for better food security, sustainable company practices, and healthier food alternatives. Technological advancements in automation, artificial intelligence, LED lighting, and computer vision have contributed to a vertical farming market boom that is expected to grow to $50.3B by 2025.
Currently, the world’s largest vertical farm is located a few miles outside of Manhattan in Newark, NJ. That’s right, the city notorious for its rich soil and warm weather…and by that I mean manufacturing and industrial factories…is now home to Aerofarms, a sustainable indoor agriculture company that operates the world’s largest vertical farm. Another NY-area favorite is Bowery Farming, which has even started selling some of it’s vertically-farmed greens in select Whole Foods stores (we’re coming full-circle here!).
Companies continue to find innovative ways to meet the growing consumer demand for organic produce, as standards of living improve and disposable incomes continue to rise. One such company is Munich-based Agrilution, which was acquired by German domestic appliance powerhouse Miele in 2019. Agrilution has developed an at-home vertical farming solution, the Plantcube, for consumers to harvest their own fresh green vegetables with minimal space required. The system, which looks more like a wine cooler than a personal vertical farm, has automated watering, climate control, LED lighting, and even an application guided advisement service to coach you through the growing process. Agrilution and some of the other leading vertical farming startups are addressing sustainability end-to-end, from how ingredients are sourced to the type of packaging produce is shipped in.
Although still faced with headwinds, such as the steep costs associated with growing a wide variety of fruits and vegetables, the vertical farming industry will continue to thrive as the technology supporting it improves exponentially. We believe vertical farming will soon become a staple of modern agriculture as the double whammy of population growth and global warming will necessitate innovative solutions for more food to be cultivated with less space.
It’s imperative for all of us to know where our food is sourced, how it’s transported, and the associated health, climate, and financial implications. So, the next time you think about going to your local Whole Foods or Trader Joe’s consider checking out your local vertical farm instead.
