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How profitable is vertical farming?

Since we first became involved in the initial vertical farming research process during 2011, our experts have helped to design and build 10 facilities – from very small to large-scale commercial vertical farms.

Having gained valuable experience across multiple VF disciplines, we can combine technical engineering knowledge with a detailed understanding of how crops grow in a controlled indoor environment.

In our experience, the profitability of a vertical farm depends on many different factors:

• Geographical location
• Transport Links & Access
• Energy costs
• Number of employees
• Price end customer pays
• Selling all of the produce

According to our detailed financial modelling, the profit margins which are achievable for certain fresh produce means that the initial capital investment could be repaid within a sensible timeframe

The potential long-term returns which are on offer, combined with an increased desire to improve domestic food security, has now made vertical farming a far more attractive proposition.

How can we make such accurate ROI predictions?

As a multi-discipline organisation with former growers, technical engineers and construction contractors all employed under one roof, we are perfectly set up to deliver the next generation of vertical farms.

At the start of 2022, we launched our vertical farm ‘Concept’ which is geared towards people who are really serious about investing in the future of the industry.

To help investors, growers and retailers see and understand the potential scale of the industry - and possible ROI, we have developed a detailed financial cost model which analyses the most important factors.

Capital expenditure, crop volume, the number of packs and trays needed, energy input and operating costs are all considered. Nothing is left to chance.

Depending on the crop type grown, our Concept can show very clearly show what outcomes an investor could expect to achieve.

Rather than just provide a vertical farm, we think of the entire business – from germination to propagation, movement, climate control and grow systems to the plant rooms, electrical infrastructure, packing areas and offices.

To benefit from all of that experience and expertise under one roof provides our clients with complete reassurance because it gives them confidence that we will deliver on our promises.

Clearly, vertical farming is not a cheap industry to enter. But by helping our clients to see and understand the total solution, and potential ROI, we believe we are in a far stronger position to ask for a £10million capital investment than we would be without this tailored financial modelling and detailed profit analysis.

By Steve Edwards, Vertical Farming Manager 

Email: [email protected]

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