Vertical Farm Daily

Do you want to stay up to date about the global vertical farming market? Click on the link below to subscribe to our daily newsletter https://lnkd.in/eWRXUis4

Japan: Observation of domestic vs. global market Japan, is the origin of the vertical farming industry as they, and many others, claim. It seems that consumers are more used to the concept of indoor-grown produce than others. Is that because of the limited agricultural cultivation areas or the ever-growing aging population of farmers? One thing is certain, it has been around way longer than in other countries, including similar ups and downs the industry has been seeing in recent years. However, when zooming into the specifics, there are some noticeable differences when comparing business models, cultivated products, cultivation methods, and more to the rest of the global industry. Let's dive in. Despite the various products that can be cultivated inside a controlled environment, many vertical farms seem to have dipped their toes into the holy grail of lettuce production as "there is an immense demand to be catered to nationally" as a vertical farm producer said. Several operators see big growing opportunities in meeting that domestic demand for lettuce and thus 'high-value products' as they're often called by other industry players, are far to be found on the priority list. https://lnkd.in/g2qYjTaw

Japan: “We can backtrack everything per product, per second, per worker” "Our product might sometimes be more costly, three times more than open field produce, but our customers prefer it because of the quality, cleanliness, and convenience," says Katashi Kai, CEO of 808 Factory. Despite the rising electricity costs, 808 Factory didn't have to compromise on its product prices yet. Katashi clarifies the company's philosophy, "We're not trying too hard to sell our products. The purpose of our product is not to offer lower prices, but to guarantee quantity, quality, and cleanliness through data. This approach resonates particularly well with supermarkets, where consumers increasingly know the benefits of vertically farmed produce." https://lnkd.in/eCbE_NZK

"If we operate a vertical farm, we can create an energy-efficient and profitable model" "Many of the farms we've developed eventually shuttered. Sometimes it's due to sales issues, and other times, it's a lack of domain know-how that affects the farm's baseline," says Edwin Ong, Founder of ARIANETECH PTE LTD, a Singaporean CEA supplier. Aiming to avoid this, Arianetech will start operating farms themselves from this year on. "If we operate a vertical farm, we can create an energy-efficient and profitable model that serves as a strong reference for our clients, both existing and potential entrants to this business," Edwin adds. https://lnkd.in/eJWjV_Bk

Japan Plant Factory Association (JPFA): Bridging the gap between scientific research and business opportunities "We go beyond research with partners. Together, we're making sure that JPFA members, consisting of growers, suppliers, and individuals, fully understand vertical farming before they start anything. We are aiming to bridge the gap between science and corporates," says Eri Hayashi, President of the Japan Plant Factory Association (JPFA), and Nozomi Hiramatsu, Manager of International Relations and Consulting as they are giving us a grand tour of the Kashiwanoha Campus of Chiba University located approximately one hour from Tokyo. Although the name might make you think so, the JPFA is not tied to vertical farming only as they have various research projects that are taking place in greenhouses. The JPFA is known for its hands-on, research-based workshops on vertical farms and greenhouses, of which an English course by specialized lecturers from academia and industry will be scheduled again this October, including a visit to 808 Factory and Mirai. On top of that, last year, the JPFA organized its first international symposium which is set to return in September 2025 in near Tokyo due to high demand. https://lnkd.in/eSXqcZpF

UK: "If competitors produce for £0.80p and us for £0.75p, we can sell at the same price" "We have patents for lowering the cost of growing. Given we cannot increase the cost of our goods, we need to lower and save expenses where we can to improve the bottom line. After all, if our competitors produce for £0.80p and we produce for £0.75p we can sell at the same price and make a better bottom line margin," says Grahame Dunling, Co-founder of WorldWide Local Salads, After three years of thorough testing, Grahame and Matthew say to have cracked the code. Now, the firm plans to build out Worldwide Local Salads (WWLS) in a phased approach when they hit full production of 20,000 tonnes of crop annually. The site is self-sufficient and boasts planning for a vertical farm, making it one of their most ambitious and advanced projects. https://lnkd.in/epnwk98G

Japan: Interest in aquaponics with sturgeons and eels "We're working with sturgeons, tilapia, and goldfish and it's been working great so far. Tilapia are favorable for their taste, whereas there's a steep demand for deploying sturgeons in aquaponics as caviar is another spinoff product aside from the fish itself, which makes a great income. Though, it takes about five to eight years to have a mature sturgeon before you can 'harvest' high-quality caviar," says Kengo Hamada, Founder and CEO of Aquponi. Aquponi has been innovating with hybrid aquaponic-based systems since its nativity. Mainly focusing on the Japanese market, the company supplies full packages for either commercial growers, ESG corporations, or schools interested in STEM projects. Thus far, Aquponi has been cultivating over 67 kinds of crops with five fish varieties, spread out over 47 projects. Being as hands-on as they like, fish breeding is done in-house, as well as the forming of substrate. https://lnkd.in/eMDAg_Nz

Japan: Low-potassium lettuce sold at triple price of ‘regular’ produce "We're constructing fully autonomous farms alongside manual farms across Japan and Southeast Asia. Our goal is to stay at the forefront of vertical farming innovations, which is why we have a co-research farm based in Osaka, collaborating with the local university on the most current research," says Hernan Ocampos, the Section Head of the Food Tech Department at Espec Mic Corp. Espec Mic has been involved in horticulture and vertical farming since 1988, Espec Mic and has expanded its expertise to include climate chambers, greenhouses, vertical farms, hydroponics, nurseries, growing cabinets, and urban greening solutions. Working closely with universities and other research institutions, Espec Mic aims to develop niche products such as its low-potassium lettuce. "We partner with companies like DHC to ensure our nutrient solutions are of the highest quality." https://lnkd.in/eaYZckJx

Japan: Collaborative network allows for more sales opportunities and fewer risks "Our network enables us to sell three times more lettuce than we could handle on our own. As part of a connected network of vertical farms, we supply a variety of lettuce to the domestic food processing industry. This connection helps us manage risks related to over- or undersupply," says Yoshio Shiina, President of Mirai Corp. a Japanese vertical farming company and supplier. Mirai's business activities are split into three segments, cultivators, full-package equipment providers and external farm operators (as consulting). 'Why cut on size if we can maximize?' As an operator, Mirai's lettuce is sold at 250 grams per head, which are highly favored by customers as Nagateru Nozawa, CEO of MIRAI highlights. Being involved in Mirai's sales for the past 10 years, Nagateru has gained an extensive understanding of the market and customer preferences. "We have decided to focus on the food processing industry as it offers more stable pricing whereas retail is way more fluctuating. Besides that, retailers prefer 80-gram packages per head of lettuce. It would be a shame to not supply 250-gram heads of lettuce and maximize the production capacity, efficiency and cost per unit." https://lnkd.in/eFcpcCm4

Japan: GPEC Tokyo showcasing highly sought-after low-tech and small-scale solutions "It's great to see a show this size take place in Japan for the horticulture industry," said a US researcher present, commenting on the turnout. Mainly visited by domestic, Korean, and Chinese companies, the GPEC show took place on 24-26 July in Tokyo with just a few international, partnering companies visiting or participating. Elaborating on the statement, the researcher explained that a horticulture industry like Japan which is still in its infancy, needs exhibitions of 'this size' that offer solutions for smaller-sized operators. "Solutions from overseas are often way too big, expensive, or overcomplicated for what's actually needed. The GPEC offers a lot of opportunities for the local market given many small-, to mid-scale products and solutions are offered." https://lnkd.in/e63vmRdN