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controlled agriculture

March 2, 2021

Gotham Greens Heads West, Partners With University of California-Davis to Grow Better Greens

NYC-based Gotham Greens today announced its plans to expand its controlled ag operations to the West Coast with a 10-acre greenhouse in Solano County, California. The forthcoming facility will be located near the University of California-Davis, with whom Gotham will collaborate on future greenhouse research and innovation. 

Gotham, which currently operates greenhouses in New York, Illinois, Colorado, Rhode Island, and Maryland, raised $87 million at the end of 2020, part of which the company said would go towards expansion.

The California greenhouse is expected to open in 2021 and, like other Gotham facilities, will grow leafy greens that will then be sold to retailers and foodservice businesses. Having a facility on the West Coast will increase the number of potential customer for Gotham, which supplies its greens to local markets rather than shipping them across the country. Not including the California facility, Gotham’s farms serve about 40 states. Within those, the company has partnerships with Albertsons, Whole Foods, Target, and other major grocery retailers, as well as e-commerce deals with AmazonFresh, FreshDirect, and Peapod.

Gotham also uses a good deal of tech to control the various growing environments of its greenhouses (light, temperature, humidity), and to automate certain repetitive tasks. The partnership with UC Davis is partially meant to advance research and development in this area. “The new greenhouse facility enables opportunities for Gotham Greens and the University of California system to collaborate on research and innovation focused on advancing the science, workforce, technology and profitability of indoor agriculture globally,” Gotham said in a statement.

The company’s expansion comes at a time when tech-powered greenhouses are increasing in both size and numbers. Earlier this year, AppHarvest went public and Little Leaf Farms raised $90 million to expand its number of greenhouse. Revol Greens did the same in September of 2020 with a $68 million fundraise. Not all of these greenhouse operations share territory yet, but at the rate of these expansions, they may well do so in the near future.

Gotham Greens has raised a total of $130 million to date. 

February 23, 2021

InFarm to Launch a Network of Commercial-Scale ‘Modular’ Indoor Farms

InFarm, a company best known for bringing modular hydroponic farming units to grocery stores, today introduced its Growing Center facility, a combination high-capacity farm and distribution center. The company plans to build out 100 of these facilities by 2025 in major cities all over the world, with the total amounting to 1.5 million square meters of farmland, according to a company press release.

Berlin, Germany-based InFarm already operates a network of smaller, cloud-connected hydroponic farms across the world. These modular units are typically found in the produce section of major grocery retailers, from Marks & Spencer in the UK to Kroger in the U.S. to Aldi in Germany. The pod-like farms are modular, meaning they can vary in size depending on location. And because the leafy greens inside the farms are grown on-site, the buying public gets access to more freshly harvested produce that hasn’t traveled the length of a country to reach store shelves.

With its Growing Center initiative, InFarm is essentially scaling up the modular-farm concept. Dozens of InFarm’s modular units, each between 10 and 18 meters (about 33 to 59 feet) high, make up one Growing Center. InFarm says these facilities take six weeks to build and will be able to generate “the crop-equivalent of 10,000 m2 of farmland.”

InFarm’s existing units in grocery stores are all cloud controlled, so that environmental elements like CO2 levels, farm temperature, light and pH levels, and plant growth cycles can be set, monitored, and managed remotely across the entire network. In other words, if one combination of those elements works for, say, basil, that “recipe” can be replicated across the entire network.

Growing Centers will plug into this network, so that the entirety of InFarm’s units are connected to “a central farming brain,” according to the company’s Chief Technology Officer Guy Galonska. “We’ve collected more than 300 billion data points throughout our farming network to date. These data enable us to perfect our growing recipes and improve yield, quality and nutritional value, while reducing the production price constantly,” he said in today’s press release.

While plenty of smaller vertical farms exist nowadays, much of the attention of late has been on larger, commercial-scale facilities that produce pounds of leafy greens that number in the millions. Last year, AeroFarms, Kalera, Plenty, BrightFarms, Nordic Harvest, and many others saw both major funding and significant expansion. Driving a lot of this activity is that commercial-scale farms can produce more delicate types of produce (e.g., leafy greens) closer to consumers, eliminating the need for lengthy shipping times that can damage plants.

All of these companies promise produce grown more efficiently, with less water and energy required than would be with traditional farming. However, at this point, most data is siloed within each company, so it’s difficult to find a truly universal, objective point of view when it comes to efficiency and energy savings. That doesn’t however, mean the numbers are all a smokescreen. In fact, of all the things the controlled ag sector did in 2020, proving itself as an important and viable part of the future farming system was the most important. While the role of this method will constantly evolve, its presence will remain a given for the foreseeable future.

For its part, Infarm says its Growing Centers will be located “in major urban centers.” So far, 15 are either planned or under construction across, London, Paris, Copenhagen, Tokyo, Vancouver, Seattle, and Toronto. InFarm has not said which of these facilities will open first.

January 29, 2021

AppHarvest Expected to Go Public Next Week via SPAC

AppHarvest’s expectation to go public is fast becoming a reality. The controlled agriculture company announced today that it is expected to complete its merger with Novus Capital Corp., a special purpose acquisition company, which will enable it to start publicly trading on the Nasdaq on Feb. 1.

Special purpose acquisition companies (SPACs), also called blank-check companies, often provide a faster IPO process for companies. AppHarvest first announced the deal with Novus just a few months ago, in Sept. 2020.

Since then, the four-year-old Morehead, Kentucky-based company has reached a few major milestones, including harvesting the first crop ever from its 60-acre indoor farm and starting construction on two additional farms in the Appalachian region. 

The company’s massive greenhouse facility runs off a mix of sensors, LED lighting, and hydroponics to grow produce 365 days per year. Because of the farm’s Eastern Kentucky location, abundant rainwater can be used to power the hydroponic system, minimizing resources used.

AppHarvest’s location also means it is within a day’s driving distance of about 70 percent of the U.S. population. This potentially vast reach combined with the growth possibilities an IPO can provide will help AppHarvest further realize its ambitions to make high-quality, pesticide-free produce available at a manageable price point to all Americans, not just the affluent ones.

The company sent its first shipment of beefsteak tomatoes to U.S. grocery stores last week. Meanwhile, AppHarvest said in a recent statement that it plans to construct more facilities across Kentucky and Central Appalachia, with the intent to be running 12 farms by 2025. The forthcoming IPO will undoubtedly aid in this process.

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