Vertical farming: approaching the future of agriculture

12/10/2023

Vertical farming is revolutionizing the way we grow and access fresh food. The implications for sustainability are profound. By reducing land use, lowering emissions, and promoting local produce, vertical farming contributes significantly to a more environmentally friendly and resilient food system.

In recent years, vertical farming has emerged as a revolutionary approach to agriculture, offering a solution to the ever-growing challenge of feeding the planet's expanding population while minimizing the environmental impact. With innovations in automation and lighting, vertical farming is poised to play a significant role in addressing food security and environmental challenges in the years to come.

Vertical farming does not require vast expanses of land. In densely populated cities, where available space for traditional agriculture is limited, vertical farms can thrive in very compact locations. They can even be integrated into existing buildings by repurposing unused urban spaces to grow crops.

However, as with any promising innovation, there have been cases where vertical farms failed, facing bankruptcy due to overestimating their capabilities and grappling with high energy prices. Visiting VertiFarm conference in Dortmund end of September, Schlegel und Partner was able to explore the reasons for such volatility in the vertical farming market.

One of the key lessons learned from some unprofitable vertical farms is the importance of setting realistic expectations. The initial enthusiasm surrounding vertical farming led to some ventures overestimating their crop yields and economic viability. As with any business, it is essential to conduct thorough market research, consider the costs involved, and have a well-defined business plan.

However, it is also crucial to emphasize that vertical farming should not be viewed solely through the lens of profit and investment returns. While profitability is important for the long-term success of any business, the primary focus should be on sustainable agriculture and increasing urban self-sufficiency.

We at Schlegel and Partner accompany our clients on this journey with our profound experience and wide-reaching network.

To learn more about SuP and how we can support your goals, feel free to contact us.

Are you interested in further information?

Please do not hesitate to contact us:

Valeria Mikhailova
Phone number +49 6201 9915 56,
Valeria.Mikhailova@SchlegelundPartner.de