{"id":26865,"date":"2017-11-15T22:57:49","date_gmt":"2017-11-16T03:57:49","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/lettuce-consider-indoor-farming-plentys-plan-to-scale-the-kale\/"},"modified":"2017-11-15T22:57:49","modified_gmt":"2017-11-16T03:57:49","slug":"lettuce-consider-indoor-farming-plentys-plan-to-scale-the-kale","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/lettuce-consider-indoor-farming-plentys-plan-to-scale-the-kale\/","title":{"rendered":"Lettuce Consider Indoor Farming: Plenty&#8217;s Plan to Scale the Kale"},"content":{"rendered":"<p>The modern commercial farming model is unsustainable. With a global population expected reach nearly 10 billion by 2050 and climate change trends indicating more droughts, the agriculture industry will be increasingly strained. [1] Furthermore, urbanization is reducing the rural labor force, shifting dietary preferences, and increasing competition for natural resources [2]. Today\u2019s farming practices have short-term fixes, such as use of monocultures and pesticides, but these tactics are reducing biodiversity and creating weaker crops. [3] Thankfully the digital revolution is enabling companies like Plenty to accelerate food production and delivery with technologically advanced indoor farming.<\/p>\n<p>While the indoor farming market is expected to reach $13Bn by 2024, innovators across the relevant ecosystem have been creating new products for farmers to more efficiently grow and distribute their crops [4].<\/p>\n<ul>\n<li><strong>Farm Management Systems: <\/strong>Using a variety of sensors, Plenty\u2019s farms track the status of each batch being grown, automatically control ressources &amp; environmental variables, and collect large amounts of data to help optimize yield, crop turns, quality, and labor costs [5].<\/li>\n<li><strong>Advanced LED Lighting:<\/strong> By modulating the light spectrum with very specific combinations of color LEDs, Plenty will be able to make further optimizations to growth time, yield and even the plants\u2019 morphology and physiology [6].<\/li>\n<li><strong>Climate Control:<\/strong> Modern systems can precisely control variables such as humidity, temperature and CO<sub>2<\/sub> consistently throughout the farm in integration with the farm management system [7]<\/li>\n<li><strong>Water and Nutrients: <\/strong>Plenty\u2019s unique system uses gravity to provide the plants with water and nutrients, avoiding the extra cost and energy consumption of pumps. Via the management system, specific nutrient and water levels can be set for each batch based on age and crop type [8]. Overall this results in using just 1% of the water necessary for traditional agriculture [9].<\/li>\n<\/ul>\n<p>With the mechanics of vertical farming, where tall racks of planter boxes working year-round typically enable 160x the output of traditional farms per unit of area, Plenty can locate in urban environments [10]. Combining this with the technological advancements above, Plenty\u2019s produce will not only be more accessible, but far more fresh, nutritional, organic and tasteful than crops shipped in from distant outdoor farms [11]. Matt Barnard, CEO and cofounder of Plenty, summarizes it as a matter of distance in the supply chain. \u201cWhat\u2019s in the store today is the best that we can grow with a 3,000-mile supply chain. But the best that we can grow with a 50-mile supply chain is stunningly better. That\u2019s why we\u2019re working to ensure that all of our food gets to the store within hours, and not days or weeks [12].\u201d<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-26821\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa-300x175.jpg\" alt=\"\" width=\"300\" height=\"175\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa-300x175.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa-768x448.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa-1024x597.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa-600x350.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/aaa.jpg 1800w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Plenty has not publicly announced many time-specific plans in their strategy, there mission is clear; keep scaling until there is a Plenty farm outside of every major city in the world [13]. Shortly after acquiring Bright Agrotech, the industry leader in vertical farming production system technology, in 2017 Plenty also raised $200M of Series B funding from funds including SoftBank and Bezos Expeditions in the largest agtech investment to date [14][15]. With these resources, Plenty is ready to start building farms globally with priorities in the United States and Japan [16].<\/p>\n<p>Preparing for the long term, Plenty is also investing now in machine learning and AI [17]. With the new technologies and controls available, such as tuning the light spectra for various effects, they need to work on optimization of their farming systems for years to come. Finally, they will develop robots for planting, harvesting and logistics, minimizing the high labor costs which have caused similar start-ups to fail [18].<\/p>\n<p>From an outsider\u2019s perspective, there are a few other options that Plenty should be considering to outgrow their competitors. Today cannabis is the most profitable crop and has the most to gain from technology improvements [19]. Although there is too much risk for Plenty to cultivate cannabis, they could be selling the Bright Agrotech system to these risk-taking growers as a way for them to scale up manufacturing, validate designs and secure early revenue.<\/p>\n<p>Planning long term, Plenty should be looking to reduce their \u201c50 miles\u201d down to zero. One way would be with a plug-and-play grow box to be installed in consumers\u2019 homes. Another option would be to partner with Whole Foods, connecting farms directly to the store and charging a premium for the freshest produce possible. Although other start-ups have tried this before, none had Jeff Bezos as an investor.<\/p>\n<p>Although Plenty has major backing, they have only announced plans for one new farm in the next year. Should they accelerate expansion? Their technology has little unique advantage and there are plenty of competitors. How will they not go belly-up like so many have before them?<\/p>\n<p>(785 words)<\/p>\n<p>[1] \u2013 \u201cThe future of food and agriculture,\u201d Food and Agriculture Organization of the United Nations, 2017, http:\/\/www.fao.org\/3\/a-i6583e.pdf<\/p>\n<p>[2] \u2013 Ibid.<\/p>\n<p>[3] \u2013 \u201cBiodiversity and Agriculture.\u201d 性视界 TH Chan Public School of Health, accessed November 2017, https:\/\/chge.hsph.harvard.edu\/biodiversity-and-agriculture<\/p>\n<p>[4] \u2013 \u201cVertical Farming Market to exceed $13bn by 2024,\u201d Global Market Insights, accessed November 2017, https:\/\/globenewswire.com\/news-release\/2017\/05\/17\/986832\/0\/en\/Vertical-Farming-Market-to-exceed-13bn-by-2024-Global-Market-Insights-Inc.html<\/p>\n<p>[5] \u2013 \u201cBringing Digital Intelligence to Indoor Farming,\u201d Orange Silicon Valley, accessed November 2017, https:\/\/s3-us-west-1.amazonaws.com\/reportassets\/BringingDigitalIntelligencetoIndoorFarming.pdf<\/p>\n<p>[6] \u2013 \u201cImproving \u2018color rendering\u2019 of LED lighting for the growth of lettuce,\u201d Nature, 27 January 2017, https:\/\/www.nature.com\/articles\/srep45944<\/p>\n<p>[7] \u2013 \u201cControl Yourself: Understanding the Basics of Indoor Climate Control,\u201d Maximum Yiel, 27 December 2017, https:\/\/www.maximumyield.com\/control-yourself-understanding-the-basics-of-indoor-climate-control\/2\/1267<\/p>\n<p>[8] \u2013 Plenty, https:\/\/www.plenty.ag\/the-happiest-plants-in-the-world\/<\/p>\n<p>[9] \u2013 Plenty, https:\/\/www.plenty.ag\/my-food-uses-how-much-water\/<\/p>\n<p>[10] \u2013 \u201cState of Indoor Farming,\u201d Agrilyst, September 2016, http:\/\/www.dem.ri.gov\/programs\/agriculture\/documents\/stateofindoorfarming-report-2016.pdf<\/p>\n<p>[11]- \u201cHas This Silicon Valley Startup Finally Nailed The Indoor Farming Model?,\u201d FastCompany, 18 May 2017, https:\/\/www.fastcompany.com\/40420610\/has-this-silicon-valley-startup-finally-nailed-the-indoor-farming-model<\/p>\n<p>[12] \u2013 Ibid.<\/p>\n<p>[13] \u2013 \u201cThis Company Wants to Build a Giant Indoor Farm Next to Every Major City in the World,\u201d Vox, 8 November 2017, https:\/\/www.vox.com\/energy-and-environment\/2017\/11\/8\/16611710\/vertical-farms<\/p>\n<p>[14] \u2013 \u201cPlenty Acquires Bright Agrotech to Globally Scale Impact of Local Farmers,\u201d Business Wire, 13 June 2017, http:\/\/www.businesswire.com\/news\/home\/20170613005517\/en\/Plenty-Acquires-Bright-Agrotech-Globally-Scale-Impact<\/p>\n<p>[15] \u2013 \u201cSoftBank Vision Fund Leads $200 Million Bet on Indoor Farms,\u201d Bloomberg, 19 July 2017, \u00a0https:\/\/www.bloomberg.com\/news\/articles\/2017-07-19\/softbank-s-vision-fund-leads-200-million-bet-on-indoor-farming<\/p>\n<p>16 \u2013 \u201cSoftBank Invests in Largest Ever Agtech Deal, a $200m Series B for Indoor Ag Startup Plenty\u201d AgFunder News, 1 July 2017, https:\/\/agfundernews.com\/breaking-plenty-raises-200m-series-b-largest-ever-agtech-investment.html<\/p>\n<p>[17] \u2013 Ibid. \u201cThis Company Wants to Build a Giant Indoor Farm Next to Every Major City in the World,\u201d Vox, 8 November 2017, https:\/\/www.vox.com\/energy-and-environment\/2017\/11\/8\/16611710\/vertical-farms<\/p>\n<p>[18] \u2013 Ibid. \u201cThis Company Wants to Build a Giant Indoor Farm Next to Every Major City in the World,\u201d Vox, 8 November 2017, https:\/\/www.vox.com\/energy-and-environment\/2017\/11\/8\/16611710\/vertical-farms<\/p>\n<p>[19] \u2013 Ibid. \u201cState of Indoor Farming,\u201d Agrilyst, September 2016, http:\/\/www.dem.ri.gov\/programs\/agriculture\/documents\/stateofindoorfarming-report-2016.pdf<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Plenty is using advanced technology for indoor farming to bring fresher produce to urban areas. <\/p>\n","protected":false},"author":9989,"featured_media":26866,"comment_status":"open","ping_status":"closed","template":"","categories":[4097],"class_list":["post-26865","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-digitalization-of-supply-chain","hck-taxonomy-organization-plenty","hck-taxonomy-industry-agriculture-and-agribusiness","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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