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Daily news and analysis about the food tech revolution

Ag Tech

A New Report Details Promise (and Challenges) of Canada’s Food & Ag Tech Ecosystem

The Canadian food and agtech ecosystem is experiencing significant growth, according to a new report published today by the Canadian Food Innovation Network.

The report, which dives deep into specific sectors, funding, sector sizing, key challenges and opportunities, says the Canadian agrifoodtech ecosystem lags behind global leaders in both funding and company concentration. According to the report, USD $1.6 billion has been invested in the sector since 2018, with plant-based proteins emerging as Canada’s largest food tech domain, valued at USD $1.7 billion in 2023. However, compared to its global peers, which tend to allocate just 17% of total agrifoodtech investments into agtech, Canada is a bit over-indexed in agtech with 44% of investments compared to 56% invested in food tech (56%).

Despite a total investment in food tech that is smaller relative to its global peers, the report says Canada is establishing itself as a hub for plant-based proteins, biotech-enabled functional foods, and upcycled ingredients:

“The Plant-Based sector is the most significant, comprising 26% of the Canadian food tech ecosystem (investment), compared to 14% globally. This is followed by Functional Foods & Drinks, representing 12% of companies, and Biotech/ Synthetization—primarily focused on specialty ingredients —with 7% of the Canadian food tech ecosystem. All three domains are also amongst the top five most represented globally.“

According to the report, the Canadian food and ag tech ecosystem faces key challenges relative to the US and other markets, the biggest of which is a lack of private capital. Only 40% of food tech investment rounds are backed by venture capital, compared to 60% in the UK and US. This means a heavy reliance on public grants, which comprise nearly 30% of total funding. This is much higher than in the UK (5%) and US (8%). Other challenges include limited scaling resources due to the country’s large geography and lower overall population density, a fragmented regulatory environment and lack of a national food tech strategy.

Despite these challenges, Canadian Food Innovation Network CEO Dana McCauley is optimistic about the sector’s future.

“These challenges are daunting: labour shortages, supply chain vulnerabilities, climate change, and slow rates of innovation threaten the resilience and sustainability of our food system. Yet, Canada’s foodtech ecosystem is rising to the occasion. By leveraging its unique strengths in plant-based proteins, biotech-enabled functional foods, upcycled ingredients, and beyond, the sector is driving transformative innovations that enhance sustainability, boost economic productivity, and create jobs across the country.”

If you’d like to read the full report, you can find it on the CFIN website.

Bonsai’s Announcement Shows Momentum for ‘Physical AI’ in Food & Ag Continues Post-CES

While NVIDIA’s taken a beating the last couple of weeks with the industry-shaking release of DeepSeek, company CEO Jensen Huang’s talk at CES about how AI models are now extending to help us gain a better understanding of our physical world continues to be a tailwind behind those startups levering AI for robotics, computer vision systems and more in a variety of industries.

Including agriculture. Sure, Bonsai’s round was probably nailed down before CES but the announcement’s big emphasis on physical AI was undoubtedly influenced by the big buzz coming out of the big tech show. Bonsai, which makes AI-driven autonomous systems for harsh farming environments, announced last week they’ve secured $15 million in Series A funding to enhance its software, expand its platform, and accelerate commercialization.

The company’s flagship technology, Visionsteer, enables autonomous navigation and data analysis in orchards, even in challenging conditions such as dust, darkness, and uneven terrain. The company says it has over 40 deployed units and has collected data from more than 500,000 acres, which it says translates into lower costs, increased yields, and operational insights previously unavailable through traditional farming methods.

You can check out the company’s hero reel of their computer vision below.

Bonsai 2024 Introduction Video

How Working the Land (and with Steve Jobs and Michael Dell) Led Tim Bucher to Build a Farming Automation Company

While many tech entrepreneurs dream of retiring as a gentleman farmer, Tim Bucher’s journey took the opposite trajectory. It was only after he bought and started working on his own farm at age 16 that a young Bucher discovered his love for software programming in college. That realization embarked him on a career that would eventually see him working alongside Steve Jobs, Michael Dell, and other Silicon Valley legends.

Yet, despite all his success in tech, Bucher never left the farm behind. In fact, for most of his life, he has straddled the high-tech world of innovation in Silicon Valley and the vineyards of California’s wine country. Now, as the founder and CEO of Agtonomy, Bucher is merging his two lifelong passions—technology and agriculture—to address one of the farming industry’s biggest challenges: labor shortages and operational inefficiencies.

On a recent episode of The Spoon Podcast, Bucher reflected on his early efforts to use innovation to tackle real-world farming challenges. His farm, Trattori Farms, produces grapes and olives—high-value crops that require precise, labor-intensive care. Over the years, he automated irrigation and winemaking processes, but one critical challenge remained: mechanized labor in the fields.

“The gap between rising costs and revenue was closing,” Bucher explained. “I kept automating everything I could, but I couldn’t automate the skilled labor that was needed out in the vineyards and orchards.”

It wasn’t until Bucher watched a documentary about NASA’s Mars rover that he began thinking about how automation could be applied to farming in a way that made sense for both longtime farmers like himself and the manufacturers of the equipment they trust.

“If we can have self-driving vehicles on Mars, why can’t we have them in our orchards and vineyards?” Bucher said. “There’s no traffic on Mars—just like in agriculture.”

This realization led him to found Agtonomy, a company that transforms traditional tractors into autonomous farming machines. But rather than disrupt the farm equipment industry, Agtonomy’s approach is to partner with manufacturers—helping them integrate drive-by-wire and AI technology into their existing models.

“Farmers trust their brands,” Bucher said. “They need the dealer networks, the parts, the service. Buying farm equipment from a startup isn’t realistic. That’s why Agtonomy is helping manufacturers digitally transform, rather than disrupt.”

As AI continues to evolve, Bucher envisions a future where farmers manage their fields remotely—relying on AI agents to analyze data, recommend actions, and deploy autonomous tractors at optimal times.

“Imagine sitting in a command center where AI tells you, ‘Given the soil, weather, and crop conditions, you should send your autonomous tractors out at 9:12 AM on Wednesday,’” he said. “And you just hit ‘Go.’”

While Bucher sees the potential of automated farming, he doesn’t believe technology will replace human farmers—instead, he sees it as a tool to make them more efficient.

“People fear AI taking jobs, but in farming, we don’t have enough labor. This technology doesn’t replace people—it enables them to do more with less.”

For Bucher, Agtonomy was the logical next step, given his lifelong love for both technology and farming. But beyond personal passion, he believes automation is necessary for the survival of modern agriculture.

“Agriculture has to evolve,” he said. “If we don’t automate, we won’t survive.”

You can listen to the full podcast below, or find it on Apple Podcast, Spotify or wherever you get your podcasts.

Video Game Pro? Why Not Join Our Farm: Farmers Seek New Skills to Attract Workers

It’s no secret that farmers face a significant labor crunch, one that’s expected to worsen over the next few years.

One major reason is farmers’ heavy reliance on migrant labor. Unfortunately, there may be far fewer workers available from this vital labor pool in the coming years. Threats of mass deportations under the Trump administration have left many in the agriculture and food industries concerned about the potential impacts on their partners and the broader food supply chain.

“Our ability to feed ourselves as a country is completely jeopardized if you do see the mass deportations,” said Rick Naerebout, CEO of the Idaho Dairymen’s Association, in a recent interview.

Compounding this issue is the reality that the average farmer is getting up there in years, with the current average age being 58. Many of these farmers have no succession plan, as younger generations from farm families often show little interest in taking over the family business. As a result, many farms currently producing food may be sold off to developers within the next decade.

But what if new technology could make farming jobs more attractive? According to Tim Bucher, CEO of Agtonomy, one way to address the labor shortage is to reframe farming jobs to appeal to workers with skills gained from unexpected areas, such as video games.

At last week’s CES Ag Tech Summit, hosted by The Spoon, Bucher shared the story of one of Agtonomy’s farming partners who faced a crippling labor shortage. Traditional job postings for tractor drivers had failed to attract candidates, so the partner took a bold step: they adjusted the job description to emphasize “video game experience” for the role of an “AgTech Operator.” The results were remarkable.

“The resume flow exploded,” said Bucher. “They hired ag tech operators who had never set foot in a tractor but were able to operate them and accomplish incredible work.”

This move to leverage new skills goes beyond farming. Some startups are creating platforms specifically optimized for integrating video games and virtual reality expertise. For example, Carbon Origins, a company The Spoon covered at CES three years ago, developed a system that uses virtual reality to operate a bulldozer called “Bobby.” These innovations highlight how skills traditionally seen as unrelated to agriculture or construction are now becoming valuable assets in reimagining labor-intensive industries.

AI and Data Are the New Tractor

In addition to using technology to attract new workers, the technology itself—such as AI and automation—may ultimately be the key to saving many farms that operate on razor-thin margins and struggle to survive in the face of accelerating climate change. During the CES panel, participants highlighted how farmers are leveraging autonomous equipment, precision agriculture tools, and AI-enabled decision-making platforms to better manage their operations.

Jacqueline Heard, CEO of Enko, likened the transformative impact of AI and data-driven tools to that of the tractor, which revolutionized agriculture over the past two centuries.

“If you think about any industrial revolution, that’s what it was—a tractor and autonomy causing this incredible acceleration and making what farmers do easier,” said Heard. “The same goes for AI. Data is the new tractor. I think AI will accelerate just about everything we do, from creating better inputs to solving the massive optimization challenges farmers face on-farm and driving profitability.”

You can watch the entire session below.

AI or Die? Why Farms Must Embrace the AI Revolution to Survive

PoLoPo Unveils ‘SuperAA’ to Turn Potatoes Into Protein Factories Via Molecular Farming

Today, Israel-based startup PoLoPo announced it has deployed its molecular farming technology, a system that uses a genetically engineered potato to produce egg proteins, at greenhouse production scale. The company’s protein production system, which it has dubbed the SuperAA platform, grows proteins within a potato’s tuber, which is then harvested and extracted into protein powder.

Molecular farming, which produces animal protein using seed crops, has gained traction in recent years. The technique, which the Good Food Institute named the “fourth pillar” for alt protein, uses genetic engineering to introduce animal DNA directly into the seeds, transforming the resulting crops into protein factories. Once the genetically engineered seeds are planted, traditional farming management techniques can be employed to grow the crops until they are ready for harvest.

The technique has gained momentum in recent years, partly because of the cost savings it promises to introduce. After all, there is no more efficient way to produce calories for human consumption than by sprouting them from the ground. By transforming plants into small bioreactors, molecular farming companies can take advantage of the scalability and cost-effectiveness of leveraging traditional row crops as protein production engines.

PoLoPo’s founders say that the growing demand for egg-derived ingredients like ovalbumin highlights their system’s potential. Ovalbumin helps a food’s texture and increases shelf life in baked goods and plant-based meat alternatives. However, it has been in short supply in recent years, with avian flu outbreaks roiling egg production and costs surging.

The company will sell the processed protein powders to food manufacturers, who will be able to slot them into existing food production lines. The global ovalbumin-powder market is expected to hit $36 billion by 2032, according to the company. PoLoPo raised $1.75 million in seed funding last year.

Gene-Edited Food Startup Ohalo Emerges From Stealth as AgTech Pioneer Dave Friedberg Takes the Helm

This week, longtime food and ag tech founder and investor Dave Friedberg announced on Twitter that he has taken over the CEO role for gene-editing focused agtech startup Ohalo Genetics. Ohalo, operating under stealth for the past four years, began its life within Friedberg’s investment and startup incubator The Production Board.

From Friedberg’s tweet:

“@ohalo uses gene editing to completely reimagine agriculture, creating new plant varieties in major crops that were not previously feasible, significantly increasing yields and productivity, ultimately helping farmers make more food using far less land, resources, and capital. After recently achieving some major breakthroughs, I now believe @ohalo could become one of the world’s most important businesses and will be dedicating myself to realizing its potential.”

The move comes one decade after Friedberg sold his first agtech startup, The Climate Corporation, to Monsanto for $1.1 billion. The sale of The Climate Corp was a milestone for the broader ag tech space as it marked the first time an ag tech startup had sold for over a billion dollars.

As Friedberg takes over Ohalo, the company has begun to lift the veil of secrecy. The timing of the decision to come out of stealth (as well as Friedberg taking over) likely has something to do with Ohalo’s recent wins in the form of positive outcomes from the USDA’s Regulatory Status Reviews (RSRs) of the company’s work on gene-edited potatoes.

An RSR is a request sent to the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) to ask that the product, which in this case is a genetically modified plant in the form of a potato, not be regulated. Ohalo had two RSRs under consideration this year for its potato, one which focuses on higher concentrations of beta carotene – enhancing the overall health and nutrition value of the potato – and another which results in reduced glucose and fructose content in the potato, which, according to Ohalo, will reduce the adverse side effects that lead to significant spoilage during cold storage of potatoes.

In both cases, USDA’s APHIS agreed with Ohalo, essentially giving a green light for the product to move forward towards sale and consumption of the product within the U.S. without the additional oversight under 7 CFR part 340, the part of the Plant Protection Act of 2000 that gives the USDA regulatory oversight over genetically modified foods.

In the case of Ohalo’s approval (and other approvals under 7 CFR part 340), the USDA is saying that the alterations to the produce brought about using the gene-editing tools were possible through cultivation and that the risks posed by the changes were no more significant from a plant pest risk perspective than those introduced through traditional plant cultivation techniques.

Ohalo joins a cohort of gene-edited produce companies that have emerged in recent years as tools such as CRISPR Cas9 have matured and enabled breakthroughs in agriculture, healthcare, and pharma. While other ag-focused gene-editing startups such as Pairwise and Yield10 Bioscience have received significant funding over the past half-decade or so, the path towards commercialization has been slow for most and rocky for some. Benson Hill, an ag gene-editing startup with a billion-dollar valuation just two years ago, has started looking for strategic alternatives as it lays off staff.

As for the Production Board, where Friedberg has spent the majority of his time the past few years as he invested and spun up food and ag tech concepts around a variety of areas ranging from gene editing to bioreactors to beverage printing, he says he will continue to stay on some boards, while his team continues the investment work that he had been involved with on a day-to-day basis before the move.

“This is a big change for me personally, I haven’t been an operating CEO for 7+ years.. but the mind-blowing results the @ohalo team have accomplished make this decision a no-brainer,” said Friedberg.

Cow NFT Platform CattlePay Paves the Way for Direct Sales With Heartland Deal

The last time we checked in with Rob Jennings of CattleProof, he was getting his cattle NFT platform off the ground. The idea was to create a permanent record of the life of a cow that followed it along the supply chain so that current and prospective owners all the way to a restaurant down the line that purchased beef would have a record of age, genetics, ranch of origin and more.

The idea is an interesting one, not only because it helps create better transparency into the history of a head of cattle, but also because it opens the door to more efficient way for prospective buyers and sellers to do business. Nowadays, if someone wants to buy a head of cattle, a sales transaction typically involves using a sale barn, an auction marketplace that facilitates the sale between buyer and seller. All well and good, except the resulting transactoin can take a week to ten days to process and often involves marketplace fees and commissions that can reach up to 10% of the total transaction.

Instead of using this slow and costly process, Jennings wants to make buying and selling cows as seamless (and low-fee) as buying or selling a stock – or NFT – through a digital marketplace. To that end, his company CattleProof has done an integration with Heartland, a payment processing company to launch CattlePay, an electronic payment system that allows cattle owners to buy and sell cattle via credit and debit cards and ACH payments.

“The idea is how do you create a more direct buyer to consumer payment system, minus all the fees and blockchain payments?” said Jennings in a interview with The Spoon. “And then, how do you inch your way towards getting real time settlement? Because that’s the other big thing: how do I get my money now?”

According to Jennings, the bigger vision of not only creating a lower-cost way to buy and sell cattle, but to create a friction-free way for buyers and sellers to connect. This means creating something akin to an Openseas for cattle, but without the complexity of having crypto wallets and all of the other blockchain related tech that often intimidates and turns off the uninitiated and non-crypto-pilled among us. To get there, CattleProof system will handle all of the web3 in the background, and offering the benefits of a blockchain proof of record and transaction system to the cattle buyers.

“Our goal is to in order to get cattle producers to participate, there’s got to be a return on investment,” Jennings told The Spoon in a recent interview. “And part of that return on investment is trying to find them ways to reduce these middleman fees.”

Jennings says he expects that the CattleProof system to launch in the first quarter of 2024.

We Must Still Define Regenerative Agriculture

This guest post was written by Nate Crosser, J.D., is a food and agriculture technology investor.

Imagine a sandwich that actually made you – and the world – healthier by virtue of making it. This dream is held by hard-nosed ranchers, coastal vegans, corporate types, and hippy homesteaders alike. The term they often use to describe the dream is “regenerative agriculture.” Leo DiCaprio even has a venture capital fund that evokes the term. Surely we can’t all want the same thing for once, right?

Nobody knows because there isn’t a clear or agreed definition of what regenerative agriculture means, putting it at risk of being yet another term greenwashed into meaninglessness, like “humane” or “free-range”, 1984-style. Regenerative agriculture has been used to describe a plethora of agriculture practices: Cover-cropping, no-till biodynamic farming, organic permaculture, sustainable agroforestry, the three sisters, but, most frequently, livestock grazing. These forms of farming aim to restore the terribly depleted soil, which harbors microorganisms and fungi that naturally sequester carbon and nitrogen, fight pests, and reduce erosion and pollution. 

However, the term is capriciously and liberally used by marketers, and is mostly used as a synonym for traditional ranching. Though “conservation” or rotational grazing is surely better than modern conventional factory farming, is that really where the bar should be set?

Some forms of ranching can improve soil health compared to certain baselines; animal dung has undeniable fertilizing qualities (and isn’t made of fossil fuels like most fertilizers). But, regenerative farming should do more than heal the soil, it should heal both human and non-human communities (i.e., societies and habitats, respectively). Our conception of re-generativity should take a systems-level view, rather than focusing on a single measure, like soil carbon, which can be deceiving and incomplete measures. 

There are a few early efforts to create meaningful standards for regenerative practices, most notably the Regenerative Organic Certified® (ROC) certification for textiles, food, and personal care products that is backed by Patagonia. ROC goes a step further than most frameworks, with a focus not just on soil health but also the welfare of farmers, ranchers, workers, and animals. ROC is an important certification program, but is more of an “extra organic” stamp that doesn’t fully capture the possibility of regenerative agriculture; to heal the world through agriculture.

Regenerative agriculture should not just be an appeal to a pastoral food system, but instead should ask what agricultural practices help us move towards better systems, holistically? Can organic rotational ranching actually help us stop climate change and fertilizer runoff, boost soil biodiversity, reverse industry consolidation, reduce rising obesity rates, address environmental justice or land grabbing, and improve animal welfare? Can it do so better than processing feed crops directly into plant-based meat alternatives and re-wilding the excess cropland? Should regenerative even inherently mean organic and non-GMO? These are empirical questions that can be studied, but only if we engage in the requisite research and debate as an industry. 

What about novel practices that are not even tied to the land itself, such as urban indoor vertical farming, precision fermentation, or meat cell cultivation (which has recently been cleared for sale for the first time in the US by the FDA and USDA)? These sound highly technological but might actually serve the goals of regeneration, so let’s not immediately give into the naturalistic fallacy and instead look at the data – regenerative means restorative, not rustic. Just because wild grass-eating cows existed does not mean that grass-fed beef is categorically good. Neither does it mean that non-GMO crops are inherently good. Both grass-fed beef and white rice can be huge methane emitters linked to human health conditions. One peer-reviewed study found that cell-cultivated beef could have almost 90% lower GhG emissions than conventional. Whereas grass-fed beef may actually be the single worst food you could eat, from a climate change perspective, and yet many conflate it to regenerative agriculture, but not so with cell-cultivated meat. 

To create a meaningful “regenerative agriculture”, we need consensus, and regulations, not just one-off certifications from private companies. Luckily, the California Department of Food and Agriculture (CDFA) has recently kicked off the first state-led attempt to do so, which could have repercussions not only for the state’s $50 billion agriculture industry but also for the entire nation. As the country’s largest state, both in terms of agricultural production and population, California often bends the nation to its will. Take Prop 12, the California referendum that imposed very basic animal welfare improvements for poultry and pork within the state. The meat industry went all the way to the Supreme Court to overturn the law, claiming Prop 12 would send ripple effects through the national market. The law was ultimately upheld in a decision penned by Justice Gorsuch in May as a clear case of voter-consumer sovereignty. Maybe California will lead the way again here, as it is in the field of cellular agriculture. 

As we weather another bad wildfire and hurricane season, we are reminded of the urgency of tackling the numerous global ecological crises. We must urgently change agricultural practices, which currently use half of the world’s land, emit over a quarter of humanity’s greenhouse gasses, and account for 70% of global freshwater withdrawals. We cannot afford to lose this chance to transform the food system, to give into greenwashing or Luddite tendencies. Let’s join together as producers and consumers around a bold, progressive vision for regenerative agriculture.

Strella Believes Its Machine Learning Tech Will Help Deliver The Perfectly Ripened Banana

Did you know that there’s a job in the banana industry called a ripener?

It makes sense, right? After all, anyone who eats bananas knows the time it takes to go from rock-hard green banana to brown mushy mess can be as short as a week. This means the banana industry has to work hard to ensure bananas ripen at the right time so they are peaking in bright, beautiful yellow by the time they show up on grocery store shelves.

Like many jobs, the ripener role relies heavily on judgment. Not that they don’t use some modern tools when monitoring and managing the ripening cycle of the banana, but from the looks of it, the ripener job seems ripe (sorry) for a Moneyball-style analytics and technology revolution.

Enter Strella. The company, which has gained traction in the apple industry for its IoT monitoring technology over the past few years, has gone bananas. According to company CEO Katherine Sizov, the company’s new AI-powered model helps them (and those working as ripeners) better decipher the signals the bananas send.

“We’ve built a machine learning model that helps us get bananas from that green to that perfectly yellow color every single time,” Sizov told The Spoon. “And the way that we do that is we measure what the bananas are telling us.”

According to Sizov, the hardware they use for banana monitoring is the same as for apples. The difference is software.

“The hardware is the same, but the algorithms are different,” Sizov said.

Sizov says that whether it’s apples or pears (fruit with longer ripening cycles) or avocadoes or bananas (fruit with shorter ripening cycles), the key indicators sending signals around the ripening stage are ethylene and CO2 emitted from the produce. The Strella hardware module has eight different sensors, sensing ethylene, CO2, and other environmental factors such as heat and moisture.

And just as with apples, the Strella technology can help determine what exactly is needed to slow down or accelerate the ripening cycle of a banana. The only difference is that things move much more quickly with bananas or avocados, which is why a job explicitly focuses on managing the process of ripening the produce.

“Unlike bananas, apples are picked perfect off the tree,” Sizov said. “And they can last a whole year in gigantic storage rooms.”

With bananas or avocadoes, the ripening process is much more closely managed. They are picked before they are ripe and then stored cold to slow the ripening until they get near the point of consumption. From there, they go into ripening rooms, and the ripener introduces ethylene gas and CO2 and adjusts the temperature to kick the ripening process into gear. And now, according to Strizov, Strella’s new banana and avocado machine-learning algorithms can help determine precisely how much of each is needed to adjust the ripening cycle to get the desired output.

Should ripeners be worried about technology taking their jobs away? Sizov doesn’t think so.

“When people are very good at their jobs, they’re always looking for tools to do better,” Sizov said. “Ripeners have a ton on their plate, they’re working 12 to 14-hour shifts, so I think they’re always looking for ways to get a little more sleep. Our tool is one way to do that.”

According to Sizov, Strella has worked with 85% of the US market for apple and pears suppliers and estimates the company has saved 20 million pounds of apples and pears from going to waste. Now, she hopes they can replicate that success in bananas and avocados.

“We’re growing pretty quickly, and we’re excited to get into bananas and avocados after having had our foray into apples for five years now.”

If you’d like to hear Katherine discuss how AI can perfect the ripening of bananas, she will be speaking at the Spoon’s Food AI Summit on October 25th in Alameda, CA! Get your early bird tickets today!

Plenty’s New Vertical Farm To Produce 4.5M Pounds of Leafy Greens From a Single City Block

Today indoor ag startup Plenty announced what it claims is the world’s most advanced vertical farm. Located in Compton, California, the company says the farm is designed to yield up to 4.5 million pounds of leafy greens annually, occupying just a city block’s worth of space.

Unlike most other vertical farms that grow produce on flat planes, Plenty’s 3D system uses vertical towers nearly two stories high, which it claims allows them to yield up to 350 times that of a conventional farm.

The company also uses robotics in nearly every step of the process, from planting to harvest. You can see the system in action in the video below:

Plenty Farm Waltz Tour

“After investing nearly a decade into research and development, ​​Plenty has cracked the code on a scalable platform for indoor farming,” said Plenty CEO Arama Kukutai. “With Plenty’s first commercial farm, we’re proving that our uniquely vertical indoor farms can deliver a reliable, year-round supply of fresh produce with positive unit economics.”

The company’s emphasis on unit economics makes sense, particularly in light of the struggles of the vertical farming industry over the past year. High upfront capital expenditures have made it difficult for companies like App Harvest to stay afloat, which means investors are increasingly focused on high-volume production of margin-positive produce going forward.

The opening of a high-tech farm in Compton is a milestone for a city with historically high poverty and unemployment. The city’s mayor, Emma Sharif, emphasized over 30% of the farm’s employees hail from Compton during the announcement.

“Plenty’s farm can serve as a model for improving access to fresh, locally grown food for urban populations while fostering cities’ economic growth,” said Sharif.

According to Plenty, the Compton Farm grows four types of leafy greens: Baby Arugula, Baby Kale, Crispy Lettuce, and Curly Baby Spinach. Plenty says the Curly Baby Spinach is one of the world’s only vertically grown, pesticide-free spinach products.

Plenty’s leafy greens can be found in Northern and Southern California locations, including Bristol Farms, Northern California Whole Foods Market stores, and local grocers in Compton and Southern California Walmart stores. Plenty’s greens are also featured as a meal ingredient on Singapore Airlines flights from Los Angeles International Airport (LAX).

Japan Vertical Farm Pioneer Spread Hits 100 Million Lettuce Serving Milestone

While the vertical farming industry in the US continues to struggle, longtime Japanese precision agriculture pioneer Spread continues to pump out heads of lettuce in its fifteen years in operation, hitting the 100 million pack milestone this year. The company, which raised $30 million in funding last year, sells its produce in approximately 5,000 retail stores, as well as food service and ready-made meal operators across Japan, according to a release sent to The Spoon.

The company’s founder, Shinji Inada, started the company in 2007 after a career in fresh produce distribution, citing a concern about a decrease in agriculture production due to climate change. While vertical farming has been around in Japan since the 1980s, Inada noticed that neither the quality nor price of “plant factory” produce was on par with traditionally farmed agriculture, so he developed a vertical farm system to produce his lettuce brand called Vegetus.

Since then, his company has continued developing its vertical farming technology and launched its Techno Farm concept in 2018, which uses automated cultivation, precise environmental control technology, and an IoT-based cultivation management system called ‘Techno Farm Cloud.’ The company’s TechoFarm system is used in three locations today: Techno Farm Fukuroi, Techno Farm Narita, and Techno Farm Keihanna.

Since its fundraise last year, the company has been exploring expansion into strawberries and the production of plant-based meat. The company has also been expanding its selection of lettuce varieties, launching a ” Chigiri ” product in 2021, which has its leaves removed during production, and launching a new European lettuce variety, “Stick,” this spring.

Good Food Institute Sees Fourth Pillar For Alt Protein Market in the Form of Molecular Farming

Over the past few years, the Good Food Institute (GFI) has created dedicated reports for each category, or “pillar,” in the alternative protein market: plant-based, precision fermentation, and cultivated meat/seafood. This week, however, GFI teased what it sees as a possible fourth pillar for alternative protein pillar in the form of molecular farming.

Molecular farming, which GFI refers to as “plant molecular farming,” is a concept that readers of The Spoon may be familiar with. It involves producing animal protein using seed crops. Genetic engineers introduce animal DNA directly into the seeds, transforming the resulting crops into protein factories. Once the genetically engineered seeds are planted, traditional farming management techniques can be employed to grow the crops until they are ready for harvest.

The technique has been picking up momentum in recent years, in part because of the cost savings it promises to introduce. After all, there really is no more efficient way to produce calories for human consumption than by sprouting them from the ground, and by transforming plants into small bioreactors, molecular farming companies can take advantage of the scalability and cost-effectiveness of leveraging traditional row crops as protein production engines.

The addition of a fourth pillar to the alternative protein market comes as molecular farming is gaining traction. Earlier this month, molecular farming pioneer Moolec announced that their safflower plants had been cleared by the Animal and Plant Health Inspection Service (APHIS) of the USDA, posing no greater plant pest risk than non-genetically engineered safflower plants. Through its former parent company, Bioceres, Moolec has the capability to produce proteins such as chymosin (an enzyme used in cheese) using safflower plants. The USDA approval comes just months after Moolec became the first molecular farming company to go public in early 2023 through a SPAC vehicle offering.

Bioengineered ingredients specialist Motif Foodworks announced earlier this year that they were diversifying into molecular farming through a partnership with IngredientWerks. IngredientWerks will help Motif produce its Hemami ingredient, an ingredient identical to myoglobin in beef, through corn crops. Previously, Motif had been using precision fermentation techniques to produce Hemami.

According to GFI, there are currently 12 companies worldwide using this technology to grow various products, including casein and lactoferrin (Forte Protein and Greenovation Protein), animal-free dairy proteins for cheese, ice cream, and yogurt (Miruku, Mozza, and Nobell Foods), growth factors for cultivated meat (Tiamet Sciences and Bright Biotech), and more.

Interestingly, GFI notes that there are currently no alternative protein startups in the Asia-Pacific region using molecular farming, with only one startup (Miruku) in the broader APAC region (New Zealand). Given the focus on alternative proteins in many Asian countries, this situation is likely to change soon (one can almost hear the frantic typing of PowerPoint pitch decks while reading this post).

You can find the GFI state of the industry reports – including the molecular farming fact sheet – on this page free for download after registration.