Bringing Food Production To The Local Level
The entire supply chain is going through a transition. What we witnessed the last couple years, and the impact that we are feeling now, is something that was coming regardless. However, the lockdowns as a result of COVID means that everything is being accelerated. Longer term trends are now pulled forward. Hence, something that was going to take 5-7 years is now being pushed up to 3 or 4.
All facets of manufacturing are facing scrutiny. The fact there is a push being made to more automation means that geographic region is less vital than it was in the past. In other words, we can see a lot of shifting where things are made. We discussed how Samsung is building a $17 billion semiconductor plant in the US, following the likes of Intel and TSMC.
Now we are also seeing a shift in food production. This is something that could also have tremendous impacts upon certain sections of the United States.
Vertical Farming
Technology is affecting everything. The agriculture industry has been going high-tech for more than a decade. It is one of the leaders in autonomous vehicles along with other advanced devices.
We can add vertical farming (or climate controlled farming) to the list. Here we see the ability to produce crops without the use of land. Traditional farming is being replaced, at least that is the concept.
The goal is to get the production of food as close to consumption as possible. This is the overall trend in manufacturing that we are seeing. However, with food, reducing transportation costs is vital.
Here is where vertical farming could be a solution.
Vertical farming is quickly becoming a popular way to grow organic food close to major urban centers. Indoor “farms” that grow crops in stacked trays using LED light have opened or are underway in Singapore, Japan, the UK, US, and elsewhere. But despite the steady rise of this technology, the food grown in vertical farms is still perceived by many potential consumers as inaccessible, available only in high-end or specialty stores.
If you notice, both Singapore and Japan tend to have large parts of their population in urban areas. This means that it is crucial to try and alleviate the long transportation runs.
While this might seem like a fringe industry, catering to high-end, suburban customers, things are changing rapidly. The largest grocery retailer in the United States is now getting involved.
But this is about to change, after an announcement this week from America’s biggest retailer: Walmart. Consumers in California will soon be able to buy vertical-farm-grown greens in Walmart stores throughout the state. As part of a $400 million Series E funding round that also included SoftBank Group’s tech-focused Vision Fund, Walmart bought an equity stake in South San Francisco-based vertical farming startup Plenty.
Having Walmart involved means the focus is upon scaling. With so many stores across the country, this one retailer can push the entire industry forward.
The company is building a 95,000-square-foot facility in Compton, California, south of Los Angeles, with production scheduled to start later this year. This is where the greens for Walmart stores will be sourced from, with some sold under Plenty’s brand and others under Walmart’s private label. The greens will be available at all 250 of Walmart’s California stores. The Walmart deal, Kukutai said, “…creates the opportunity to actually get to scale, not just being a niche provider of expensive greens, as the category has somewhat been accused of in the past.”
More Food Production
The idea is to generate even more food production, and do so at a cheaper price. This technology is very promising yet is still unproven. Many question whether it can scale.
What this can potentially solve is food inequality around the world. One of the biggest variables is the climate that one's area has. Areas that are very dry will obviously have major problems growing crops. The same is true for those areas that are frozen most of the year.
By turning to indoor farming, it could be possible to grow food anywhere. While the costs are still high, scaling up would bring prices down.
Consider the possibilities if we see these farms build near most major cities. The transportation of fruits and vegetables would have to travel under 50 miles.
Another opportunity is to build smaller locations in the back of stores themselves. Some retailers are already experimenting with "kiosk" type units.
Either way, what was just an idea a few years ago, a proof-of-concept if you will, is now entering the first phases of production. If Walmart is successful with this, expect this to spring up all over the country. Of course, it is only a matter of time before this concept, if successful (and financially viable) spread to all over the world.
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Certainly sounds interesting and plausible but will this try to push out organic farming completely? That’s a thing to keep an eye out for. I’m sure with these things all kinds of stuff is going to get sprayed on them.
I do really enjoy the fact that it brings food a lot closer to cities. That’s going to be beneficial for those that live in the major urban areas like LA, NYC, Tokyo among others.
I am not sure it is pushing anything out as much as changing it. Also, this is a form of organic farming because they dont need to use pesticides since it is a controlled environment.
The possibilities are enormous. We will see how it all unfolds. From what I can see, the key is going to be scaling. That is always a challenge.
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Population continues to increase everyday whereas food production isn't. It's important that we channel more effort in the traditional farming and food production. I'm not fully in support of the vertical farming concept. Food produced naturally would always taste better and more nutritious.
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Food production has been increasing for 50 years. As for population, it is still growing but at a slowing rate. That is going to flip in the next couple decades.
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I wonder if this will help alleviate the issues with the supply chain. At least I don't think people realized how important truckers were to the economy as they are the ones who make sure the goods can go to the urban cities. I do think it's a good thing overall.
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Certainly when products consumed are closer to the end, it helps. Food incurs a lot of transportation since most do not live near where it is produced.
This helps that a great deal. A lot easier to truck something in state as opposed to cross country.
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I think it is a good idea, vertical farming. To change the “normal” farming into. Closer to the people means lower overall cost. And bringing food to areas that are difficult.
But I wouldn’t want that the organic farming could be pushed to the back again. It will still be the healthiest option, for many reasons.
Lately more people are conscious of what they eat. The ask for organic is growing rapidly. I also hear more and more people want to live off the grid. Being self sufficient.
Homesteads are more in the conversations too.
Let’s see if this concept will be successful. It could be and help out certain countries. Like too hot /cold areas.
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Most advertised is organic is not. It is tough to grow things outside where bugs naturally reside.
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I know… luckily I know where to get real organic food.
I am planning after our move, later this year, to start growing some veggies, herbs and fruits. Going more self sufficient.
Had a garden patch in the past, just not the last years due to where we lived.
Pest control is always tough. Depending also on climate, country etc.
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That is one thing about growing stuff inside, can avoid all that.
We will see how rapidly this expands. It is a needed move forward. Getting food closer to where it is consumed means less time that it is in trucks and stuff like that.
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Yes, it is better controllable…
It will be an interesting topic to follow and see how it will develop. And if it even crosses over to other countries.
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Technology is entering every segment.
That is what makes it so powerful. Technological advancement can happen very quickly. That means things can be different within a few years of introduction.
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Yes, once there it goes quickly. People and companies need to adjust quickly to join, or be left behind.
What will come in the next 10 to 15 years, on every front will be a change never seen before. The jump that we (mankind) will make is enormous on technological fronts.
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Things are moving very quickly. Technology does not slow down at all.
It is going to be amazing to think of where things will be even in 5 years.
Just imagine Hive by that time.
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Yes… looking forward to it 😎🐝
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Btw. Did you see my lion artwork post @taskmaster4450le? I posted a few days ago. I know you are busy… but thought maybe you would like to see some of my art 😊🦁
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No I havent seen it.
Can you post the link for me?
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Ok, should have added it just in case… 🤓
Here you go: My post
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It seems like this is a global deal already. There are projects taking place all over the world which is vital.
We are going to see more of these. I am not sure we are to the point where it is getting to the parts of the world where starvation is the worst. But it is a process.
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Ok, good that it is global. Will look a bit more into it.
Those areas not yet, but would make a world of a difference once it would.
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We hope that it will be very successful since it will not only open new sources of work, but we will also acquire fresher products at a lower cost.
I would imagine the number of workers is likely a lot less than in traditional farming. Also, unlike the latter which employs unskilled labor, this is probably a much higher level of worker.
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they would probably need both types of labor, both skilled and unskilled.
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I think it is way more important to push vertical farming into communities. Growing up, I lived in places where the local grocery store was a co-op run and owned by the people who worked there. Moving the produce production to co-ops rather than letting the corporations take-over of this segment of the market make a good deal of sense to me.
Things are getting kind of scary. Never in my lifetime have I ever had to worry about food production. It is great we have new technologies in place. Hopefully, it is not too little too late.