The fall and rise of vertical farming companies

In the last decade, indoor vertical farming has emerged as a potential solution in the search for more sustainable agriculture. This innovative method, which grows crops in stacked layers within controlled environments, promised a revolution in food production. But it hasn’t worked out quite that way, as soaring energy prices have put the brakes on many vertical farms.

This blog describes some of the benefits and problems associated with vertical farming systems, along with explaining how the industry might succeed in future through outsourcing and manufacturing partnerships.

A promising start

By bringing farms closer to urban consumers, vertical farming aimed to not only reduce carbon footprints but also conserve water, enhance yields and provide fresher produce. The appeal was undeniable, with visions of leafy greens flourishing in skyscraper-like greenhouses, regardless of the weather outside.

To begin with, the early success stories of vertical farming were compelling:

• Controlled environments allowed for year-round production, independent of climate change, seasonal variations and soil conditions.
• Yield per square foot soared as crops could be stacked from floor to ceiling, meaning that available space was used much more efficiently than conventional land-intensive farming. For example, over 390 times more productivity for leafy greens on a per acre basis can be achieved.
• Vertical farms boasted remarkable water efficiency, using up to 95% less water than traditional agriculture by recirculating it through hydroponic systems.
• This form of urban agriculture allowed crops to be grown near to consumers, which reduced spoilage of fresh produce, as well as lowering transport costs and emissions.
• Physically demanding, labour-intensive and sometimes dangerous tasks were replaced with robots and automation.

• The use of pesticides and fertilisers was greatly reduced or even eliminated, thanks to the carefully controlled conditions.
• Crops weren’t contaminated or eaten by wildlife.

The future of farming seemed to be going up and up, quite literally.

The energy crisis: a reality check

However, the ongoing war in Ukraine and the subsequent global energy crisis has cast a long shadow over the prospects for vertical farming. This is because the reliance on artificial lighting, climate control systems, ventilation and irrigation inevitably leads to very high electricity consumption.

So, as energy prices skyrocketed, the operational costs of running these energy-intensive farms became unsustainable for many. Operations were scaled back, companies went bankrupt and the industry faced a reckoning.

The limitations of vertical farming technology became apparent: it excelled in producing certain crops such as leafy greens, but it was extremely vulnerable to shocks in energy prices. The free sunlight, it turned out, was a much better option – at least financially, even compared to the increasingly cheaper and more efficient artificial lighting.

Lessons learned

Despite these setbacks, the early iterations of vertical farming were not in vain. They served as proof of concept, showcasing what could be achieved with technology and innovation in agriculture. Automation and advancements in LED lighting technology have been significant, laying the groundwork for future efforts.

Now that energy prices appear to be returning to more typical levels, the potential for a resurgence of vertical farming is on the horizon. After all, the call for sustainable and resilient food systems keeps growing louder in the face of extreme weather events and climate change. The path forward appears to, once again, involve innovators and mechatronic specialists collaborating in vertical farming operations, by designing more sustainable energy solutions.

A success story… up to a point

One such company is Eden Green in Texas, USA, which is able to grow four times as much as a traditional greenhouse in the same area and use 75% less energy than a typical indoor vertical farm. This is achieved by combining sunlight with artificial lighting, rather than simply replying on only one of the sources.

To do this, Eden Green is growing plants in aisles that allow sunlight to reach even those at the bottom, unlike many other vertical farms. And when the sun doesn’t shine sufficiently, it is detected by sensors, at which point LED grow lights are lowered from the ceiling to give the plants a boost.

Of course, while this approach might be successful in sunny Texas, its use will be much more limited in other places. But it’s a great example of the next iteration of vertical farming by adapting and improving the current technology.

In the UK, there are also signs that farmers are successfully tackling the problems and have “cracked the code” for year-round indoor production. This is being achieved through energy efficiencies, such as carefully fine-tuning the climate control systems.

Outsourcing and manufacturing partnerships

So, despite the issues faced by vertical farming in recent years, it doesn’t necessarily mean that it is no longer a viable option. After all, it’s likely that a combination of agricultural solutions will be required to feed an increasing global population and avert a climate catastrophe. The challenge now is to iterate and improve upon previous models of vertical farming, bearing in mind the lessons learnt.

The search for optimal energy-efficient solutions is clearly vital. Renewable energy sources, such as solar, geothermal and even wind, offer potential pathways to powering vertical farms sustainably. Plus, the integration of smart technology, such as sensors, robots and AI, can further optimise energy use and crop management, making vertical farming a more viable option.

Finally, there’s also an opportunity for vertical farmers to outsource elements of design and component/mechatronic manufacturing to make their future operations more energy efficient, productive and cost effective. Collaborating with manufacturing partners in this way has been a common practice for decades in industries ranging from automotive and pharmaceuticals to food & drink and construction.

Outsourcing can provide many benefits, such as cost savings and access to valuable expertise that might not be available in-house. This can be vital in an industry that is currently struggling to develop a financially viable business model. Manufacturing partnerships of this sort may turn out to be pivotal in the fast iteration of new ideas.

An important piece in the jigsaw

One final point to note is that, globally, most agricultural land is used for livestock and much of the rest for cereals and other staples – leafy greens of the sort currently grown in vertical farms make up a very small proportion.

So, vertical farming in its current form is unlikely to be a silver bullet for all of our agricultural problems. But it could be an important piece in the jigsaw – especially if it can be adapted for wheat, maize, rice etc – because many different approaches will inevitably be required to solve the global food supply problem.

As the world continues to face climate change, land-use pressures, food security and an increasing population, vertical farming now has the task of realising its full potential. Its promise of producing food consistently and sustainably remains compelling – so long as the challenges can be overcome.

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