Finding synergies between vertical farms of the future and traditional farming systems

Between 2016 and 2022, global annual growth in vertical farming was 25%. In early 2022 forecasters were projecting the market to grow from $5.8 billion, to $30 billion by 2030.

This project set out to assess the potential impact of a growing vertical farming sector on British Agriculture. 3 hypotheses were to be scrutinised:

1)         Vertical farming is a viable means of food production

2)         Vertical farming will present a diversification opportunity on existing farms

3)         Synergies exist between vertical and traditional farming systems that could offer a competitive advantage to existing farm businesses

Simplistically, vertical farming is using technology to replicate the sun, wind and rain, creating an artificial growing environment. As electrical lighting is used, plants can be stacked in layers without shading, hence the term “vertical”.

By its nature, vertical farming is energy intensive. Since beginning this project in 2022 the sector has been severely impacted by the global energy crisis. Early adopters exposed their fragility to energy market volatility, and many have ultimately succumbed to pressures. Further, uncertain energy markets have caused external investors to reconsider the risks associated with the emerging sector.

Therefore, much discussion around the impact of vertical farming on traditional farming methods focussed on hypothesis one – is the system a viable means of producing food?

Several countries were visited between 2023-24, where businesses of all shapes and sizes demonstrated their unique interpretations of vertical farming. It was evident that food could be grown extremely efficiently when compared to traditional outdoor systems, often with minimal human input. Most innovators were applying the kaizen approach to growth recipes, continuously tweaking formula and timings until conditions were infinitely optimised. Circularity with waste by way of nutrient cycling and resource use efficiency was also a common theme.

With the technology proven, the question turned to application. Four different applications for vertical farming were identified:

•           Production of mainstream salad / herb crops

•           Production of specialist crops

•           Community engagement / education

•           Research and development

Mainstream crop production is considered high risk and therefore unlikely suitable for farm diversification. The large capital requirement, existing competition (from outdoor and indoor growers, domestic and international), and price sensitivity of the fresh produce sector are issues experienced by vertical farmers in all countries visited.

Finding an outlet for specialist crops, that perform better when grown in a controlled environment, would be favourable to growing mainstream crops. Pre-determined distribution and restricted competition reduce the risk.

Farm businesses that are public facing could benefit from small scale, low cost, vertical farming. Multiple businesses visited were marketing the growing experience of the novel food system. Controlling the farm on an iPhone with bright LED lights makes for a very instagramable story.

When considering the synergies between vertical and traditional farming systems, perhaps the most impactful prospect is research and development within vertical farms, to enhance conventional agriculture. Critics argue that research is flawed because growing in a controlled environment does not represent true conditions. However, having total control of variables, speeding up processes, and simulating changing conditions, could bring considerable value to agricultural research. Particularly as change becomes urgent as we adapt to the climate crisis.     

Using vertical farming for research and development purposes could also open the door to more farmer led research. An area that would need further exploration...