With concerns about land scarcity and the environmental impact of conventional agriculture, vertical farming has emerged as a potential solution.
How can we continuously supply fresh, healthy food for a growing population, especially in densely populated urban areas far removed from traditional farmlands? India, for example, has overtaken China as the world's most populous country, and more than half of its population will live in cities by 2050. Does that mean more land will be converted to farmlands?
With concerns about land scarcity and the environmental impact of conventional agriculture, vertical farming has emerged as a potential solution. It involves cultivating crops in vertically stacked layers, maximizing space and resource utilization. Vertical farming offers numerous advantages, including reduced water consumption, year-round crop production, and the potential for urban agriculture, bringing food production closer to consumers.
However, despite the promising solutions for sustainable food production offered by different types of vertical farming, questions remain about its economic viability. The initial investment costs for establishing these farms can be substantial, and the technology is still relatively new. In the same vein, the potential for vertical farming to become a profitable venture done on a large scale is growing. This is evidenced by the expected CAGR of around 20% for the vertical farming market in India from 2021-2026.
Vertical farm buildings are specialized structures designed to optimize crop production using controlled environments. These buildings can range from single-story structures to multi-story towers. They typically feature modular plant trays stacked vertically to maximize space utilization.
These farms are housed in repurposed shipping containers. It's a great way to grow food year-round, even in urban areas. They use less water and energy than traditional farming, and a single person can operate them. A container farm can grow 2.5 acres of produce annually, making it a lucrative business opportunity.
Underground farming is a modern agricultural technique that involves growing crops in underground spaces. Most of these farms are repurposed from existing underground structures, such as abandoned mines, tunnels, and cellars.
Hydroponics is a vertical farming technique for growing plants in water without soil. The roots of the plants are suspended in a nutrient-rich solution, which provides them with all the essential elements they need for growth. In India, hydroponic systems are the most popular type of vertical farming used to grow vegetables such as tomatoes, cucumbers, and pepper.
Aquaponics is a soilless farming method that combines fish farming (aquaculture) with plant cultivation (hydroponics). In an aquaponic system, fish waste is naturally converted into nutrients for the plants, while the plants filter the water for the fish. This creates a closed-loop ecosystem that uses less water and labor than traditional farming methods.
Aeroponics is a soilless cultivation method where plant roots are suspended in the air and receive nutrients from a nutrient-rich mist. With a lack of soil contact, aeroponics is less prone to pests and diseases, making it a popular choice for commercial crop production and large-scale clonal propagation.
Rooftop greenhouses are becoming popular for people to grow fresh produce in urban areas. These greenhouses can be installed on top of homes or buildings. Living Greens, an Indian organic company, is pioneering this concept on a large scale by launching India's first urban farming center on rooftops in 2023.
Plant factories are advanced vertical farming systems that precisely control plant growth. They use artificial light, irrigation, ventilation, and nutrient flow to maximize crop yields and minimize the impact of external factors. While initial costs may be high, plant factories offer precise production control and consistent harvests.
Soil-based vertical farming mimics traditional soil-based agriculture. Unlike hydroponic systems, it uses a unique mix of existing substrate materials to maintain land-like growing conditions.
Vertical farming has the potential to minimize dependence on traditional farming methods, mitigate climate risks, and optimize resource usage. It multiplies agriculturally productive land, increases crop yields, and saves water and land.
Scaling up vertical farms can create economic advantages compared to conventional agricultural production systems, especially in urban food deserts and metropolises where land is scarce and expensive. For example, Infarm, a global pioneer in urban vertical farming, can cultivate an impressive 20 million plants annually within the UK. Currently operating in 10 countries across North America, Asia, and Europe, the company plans to expand to 20 countries by 2030.
Here are the benefits of vertical farming that make it attractive to farmers, investors, and other agricultural value chain stakeholders.
Vertical farming is a space-efficient method of growing crops. Unlike traditional farming, which utilizes vast horizontal land, vertical farming stacks plants vertically, maximizing space utilization and increasing crop yields. For example, vertical farming could produce 18 times more lettuce than traditional farming.
Vertical farming often has a dehumidification system that reuses the water plants evaporate. In an aquaponic system, water from the fish tank is recirculated to nourish the plants. Further, studies in the past decades show that vertical farming can save about 70-90% of water compared to conventional agriculture.
A vertical farm's controlled environment can help prevent pests and diseases from entering and spreading. Additionally, with the use of hydroponic or aeroponic systems, which deliver nutrients directly to the roots of the plants, the risk of soll-related disease is eliminated.
Vertical farming shields crops from the unpredictable whims of the weather. By controlling the environment through LED lights and other vital technologies, vertical farms can provide plants with optimal light, temperature, and humidity, regardless of the outdoor conditions.
Vertical farming uses vertical space to maximize crop production, even in limited areas. By stacking plants vertically, vertical farms can produce significantly more crops per square meter compared to traditional farming methods.
Vertical farming is a clever way to grow more food using less land. Instead of spreading crops across vast fields, vertical farms stack them up in layers, like a plant skyscraper. According to a study by Wageningen University, this smart approach saves up to 20 times more land.
With minimal dependence on seasons and weather, Vertical farms let farmers control the growing conditions so they can grow crops all year round. Controlling the environment, vertical farms maintain optimal conditions for plant growth, regardless of external factors. This ensures a consistent supply of fresh, high-quality produce throughout the year.
Vertical farming not only saves space but also reduces the environmental impact of agriculture. It alleviates the pressure on land, preventing deforestation and the destruction of natural habitats. Vertical farms, often located in urban centers, reduce the need for long-distance transportation and associated carbon emissions.
Vertical farming isn't a silver bullet for all crops. It's great for leafy greens and herbs but inefficient for growing tall crops like wheat or soybeans. This limits its ability to replace conventional farming and address all the sustainability issues it causes. As for protein-rich plants, while vertical farming could grow them, it's not economically feasible yet.
Vertical farming requires a lot of upfront money. This includes the cost of building the structure, buying the equipment, and hiring the workers. The high-cost expenses vertical is one of the reasons why it is not yet widely adopted on a large scale.
Vertical farming requires a lot of expertise to operate and maintain. This includes engineering, software development, agriculture, and data management knowledge. As a result, vertical farming companies operating on a large scale often have to pay higher salaries to attract and retain skilled workers.
Vertical farms use a lot of energy to grow plants indoors. This includes lighting, heating, cooling, and watering systems. The energy use of vertical farms can be more than ten times higher than traditional farming. Vertical farms use artificial lighting to grow plants indoors, even during the day. While LED lights are more energy-efficient than older types of lights, they still use a lot of energy.
While vertical farming offers promising solutions for sustainable food production, its large-scale profitability remains a question. Initial costs can be substantial, and the technology is still developing. However, as technology matures and demand for fresh, locally grown produce increases, the potential for profitability grows. With expert knowledge and innovation, vertical farming can become a viable and efficient method for addressing global food security challenges.
At Jiva, farmers can receive valuable solutions to enhance the profitability and efficiency of their vertical farming operations. Jiva provides farmers with no-cost advances for agricultural inputs, high-quality supplies through their e-commerce store, personalized AI-powered advice to increase yield, and an app that allows farmers to sell their crops with ease
The profit from vertical farming depends on various factors, such as the type of crops grown, the size of the farm, and the costs of setting up and maintaining the farm. For example, a small-scale hydroponic farm specializing in lettuce using an NFT (Nutrient Film Technique) system can cost around 2-3 Lakhs (approximately $300-$600) to set up. The ongoing costs include electricity, water, and nutrient solution expenses, as well as labor costs. The revenue generated from the sale of the produce can vary depending on the market price for the crops.
In general, the profit from vertical farming can be substantial, but it is essential to consider the initial investment costs and the ongoing expenses to determine the viability of the venture.
Vertical farming can be profitable with year-round crop production and higher yields. According to Asia Farming, a small-scale hydroponic farm specializing in growing lettuce can produce around 2000 heads of lettuce per month, with a total cost of INR 72,000/month and revenue of INR 60,000/month, resulting in a total profit of INR 12,000/month.
Vertical farming has shown potential in India, offering benefits like reduced land use and water conservation, but it also faces challenges like high costs and lack of expertise. Hydroponic farming, for example, is gaining popularity in India, with a market size of $13.90 million in 2020 and an expected growth rate of 18% CAGR.
Across the country, various businesses are using hydroponic techniques to cultivate tomatoes, cucumbers, peppers, ornamental plants, and herbs; however, addressing cost and knowledge gaps, improving input availability, and increasing government support are crucial to making vertical farming more accessible.
Vertical farming can be costly due to the need for specialized equipment and infrastructure. However, these initial investments are outweighed by the long-term benefits of reduced land usage, water conservation, and year-round crop production.
Setting up a vertical farm in India can cost anywhere from Rs. Fifty lakhs to Rs. 1 crore per acre, depending on the technology used, according to a study by the National Institute of Agricultural Economics and Policy Research (NIAPER). The study also found that operational costs, such as electricity and labor, can range from Rs. 5 lakhs to Rs. 10 lakhs per acre per year. These costs are estimates and may vary depending on the specific farm.
Agritech investments are growing tremendously as founders and investors recognise the potential of technology powered by profit-for-purpose business models to transform food production, distribution, and consumption.
Earth, the only habitable planet we know of, faces threatening environmental, social, and economic challenges, many of which are directly linked to our agricultural practices. As the global population continues to rise, the demand for food also increases, putting immense pressure on our planet's resources.
With concerns about land scarcity and the environmental impact of conventional agriculture, vertical farming has emerged as a potential solution.
Traditional farming practices are no longer sustainable due to a burgeoning population and a changing climate. To ensure a secure food supply for present and future generations, we must reimagine agriculture. This much-needed transformation requires a commitment to generating and applying knowledge and innovations that promote sustainable agricultural practices,
December 30, 2023
How can we continuously supply fresh, healthy food for a growing population, especially in densely populated urban areas far removed from traditional farmlands? India, for example, has overtaken China as the world's most populous country, and more than half of its population will live in cities by 2050. Does that mean more land will be converted to farmlands?
With concerns about land scarcity and the environmental impact of conventional agriculture, vertical farming has emerged as a potential solution. It involves cultivating crops in vertically stacked layers, maximizing space and resource utilization. Vertical farming offers numerous advantages, including reduced water consumption, year-round crop production, and the potential for urban agriculture, bringing food production closer to consumers.
However, despite the promising solutions for sustainable food production offered by different types of vertical farming, questions remain about its economic viability. The initial investment costs for establishing these farms can be substantial, and the technology is still relatively new. In the same vein, the potential for vertical farming to become a profitable venture done on a large scale is growing. This is evidenced by the expected CAGR of around 20% for the vertical farming market in India from 2021-2026.
Vertical farm buildings are specialized structures designed to optimize crop production using controlled environments. These buildings can range from single-story structures to multi-story towers. They typically feature modular plant trays stacked vertically to maximize space utilization.
These farms are housed in repurposed shipping containers. It's a great way to grow food year-round, even in urban areas. They use less water and energy than traditional farming, and a single person can operate them. A container farm can grow 2.5 acres of produce annually, making it a lucrative business opportunity.
Underground farming is a modern agricultural technique that involves growing crops in underground spaces. Most of these farms are repurposed from existing underground structures, such as abandoned mines, tunnels, and cellars.
Hydroponics is a vertical farming technique for growing plants in water without soil. The roots of the plants are suspended in a nutrient-rich solution, which provides them with all the essential elements they need for growth. In India, hydroponic systems are the most popular type of vertical farming used to grow vegetables such as tomatoes, cucumbers, and pepper.
Aquaponics is a soilless farming method that combines fish farming (aquaculture) with plant cultivation (hydroponics). In an aquaponic system, fish waste is naturally converted into nutrients for the plants, while the plants filter the water for the fish. This creates a closed-loop ecosystem that uses less water and labor than traditional farming methods.
Aeroponics is a soilless cultivation method where plant roots are suspended in the air and receive nutrients from a nutrient-rich mist. With a lack of soil contact, aeroponics is less prone to pests and diseases, making it a popular choice for commercial crop production and large-scale clonal propagation.
Rooftop greenhouses are becoming popular for people to grow fresh produce in urban areas. These greenhouses can be installed on top of homes or buildings. Living Greens, an Indian organic company, is pioneering this concept on a large scale by launching India's first urban farming center on rooftops in 2023.
Plant factories are advanced vertical farming systems that precisely control plant growth. They use artificial light, irrigation, ventilation, and nutrient flow to maximize crop yields and minimize the impact of external factors. While initial costs may be high, plant factories offer precise production control and consistent harvests.
Soil-based vertical farming mimics traditional soil-based agriculture. Unlike hydroponic systems, it uses a unique mix of existing substrate materials to maintain land-like growing conditions.
Vertical farming has the potential to minimize dependence on traditional farming methods, mitigate climate risks, and optimize resource usage. It multiplies agriculturally productive land, increases crop yields, and saves water and land.
Scaling up vertical farms can create economic advantages compared to conventional agricultural production systems, especially in urban food deserts and metropolises where land is scarce and expensive. For example, Infarm, a global pioneer in urban vertical farming, can cultivate an impressive 20 million plants annually within the UK. Currently operating in 10 countries across North America, Asia, and Europe, the company plans to expand to 20 countries by 2030.
Here are the benefits of vertical farming that make it attractive to farmers, investors, and other agricultural value chain stakeholders.
Vertical farming is a space-efficient method of growing crops. Unlike traditional farming, which utilizes vast horizontal land, vertical farming stacks plants vertically, maximizing space utilization and increasing crop yields. For example, vertical farming could produce 18 times more lettuce than traditional farming.
Vertical farming often has a dehumidification system that reuses the water plants evaporate. In an aquaponic system, water from the fish tank is recirculated to nourish the plants. Further, studies in the past decades show that vertical farming can save about 70-90% of water compared to conventional agriculture.
A vertical farm's controlled environment can help prevent pests and diseases from entering and spreading. Additionally, with the use of hydroponic or aeroponic systems, which deliver nutrients directly to the roots of the plants, the risk of soll-related disease is eliminated.
Vertical farming shields crops from the unpredictable whims of the weather. By controlling the environment through LED lights and other vital technologies, vertical farms can provide plants with optimal light, temperature, and humidity, regardless of the outdoor conditions.
Vertical farming uses vertical space to maximize crop production, even in limited areas. By stacking plants vertically, vertical farms can produce significantly more crops per square meter compared to traditional farming methods.
Vertical farming is a clever way to grow more food using less land. Instead of spreading crops across vast fields, vertical farms stack them up in layers, like a plant skyscraper. According to a study by Wageningen University, this smart approach saves up to 20 times more land.
With minimal dependence on seasons and weather, Vertical farms let farmers control the growing conditions so they can grow crops all year round. Controlling the environment, vertical farms maintain optimal conditions for plant growth, regardless of external factors. This ensures a consistent supply of fresh, high-quality produce throughout the year.
Vertical farming not only saves space but also reduces the environmental impact of agriculture. It alleviates the pressure on land, preventing deforestation and the destruction of natural habitats. Vertical farms, often located in urban centers, reduce the need for long-distance transportation and associated carbon emissions.
Vertical farming isn't a silver bullet for all crops. It's great for leafy greens and herbs but inefficient for growing tall crops like wheat or soybeans. This limits its ability to replace conventional farming and address all the sustainability issues it causes. As for protein-rich plants, while vertical farming could grow them, it's not economically feasible yet.
Vertical farming requires a lot of upfront money. This includes the cost of building the structure, buying the equipment, and hiring the workers. The high-cost expenses vertical is one of the reasons why it is not yet widely adopted on a large scale.
Vertical farming requires a lot of expertise to operate and maintain. This includes engineering, software development, agriculture, and data management knowledge. As a result, vertical farming companies operating on a large scale often have to pay higher salaries to attract and retain skilled workers.
Vertical farms use a lot of energy to grow plants indoors. This includes lighting, heating, cooling, and watering systems. The energy use of vertical farms can be more than ten times higher than traditional farming. Vertical farms use artificial lighting to grow plants indoors, even during the day. While LED lights are more energy-efficient than older types of lights, they still use a lot of energy.
While vertical farming offers promising solutions for sustainable food production, its large-scale profitability remains a question. Initial costs can be substantial, and the technology is still developing. However, as technology matures and demand for fresh, locally grown produce increases, the potential for profitability grows. With expert knowledge and innovation, vertical farming can become a viable and efficient method for addressing global food security challenges.
At Jiva, farmers can receive valuable solutions to enhance the profitability and efficiency of their vertical farming operations. Jiva provides farmers with no-cost advances for agricultural inputs, high-quality supplies through their e-commerce store, personalized AI-powered advice to increase yield, and an app that allows farmers to sell their crops with ease
The profit from vertical farming depends on various factors, such as the type of crops grown, the size of the farm, and the costs of setting up and maintaining the farm. For example, a small-scale hydroponic farm specializing in lettuce using an NFT (Nutrient Film Technique) system can cost around 2-3 Lakhs (approximately $300-$600) to set up. The ongoing costs include electricity, water, and nutrient solution expenses, as well as labor costs. The revenue generated from the sale of the produce can vary depending on the market price for the crops.
In general, the profit from vertical farming can be substantial, but it is essential to consider the initial investment costs and the ongoing expenses to determine the viability of the venture.
Vertical farming can be profitable with year-round crop production and higher yields. According to Asia Farming, a small-scale hydroponic farm specializing in growing lettuce can produce around 2000 heads of lettuce per month, with a total cost of INR 72,000/month and revenue of INR 60,000/month, resulting in a total profit of INR 12,000/month.
Vertical farming has shown potential in India, offering benefits like reduced land use and water conservation, but it also faces challenges like high costs and lack of expertise. Hydroponic farming, for example, is gaining popularity in India, with a market size of $13.90 million in 2020 and an expected growth rate of 18% CAGR.
Across the country, various businesses are using hydroponic techniques to cultivate tomatoes, cucumbers, peppers, ornamental plants, and herbs; however, addressing cost and knowledge gaps, improving input availability, and increasing government support are crucial to making vertical farming more accessible.
Vertical farming can be costly due to the need for specialized equipment and infrastructure. However, these initial investments are outweighed by the long-term benefits of reduced land usage, water conservation, and year-round crop production.
Setting up a vertical farm in India can cost anywhere from Rs. Fifty lakhs to Rs. 1 crore per acre, depending on the technology used, according to a study by the National Institute of Agricultural Economics and Policy Research (NIAPER). The study also found that operational costs, such as electricity and labor, can range from Rs. 5 lakhs to Rs. 10 lakhs per acre per year. These costs are estimates and may vary depending on the specific farm.
