2023 was another turbulent year in the Controlled Environment Agriculture (CEA) market. There was a surprising wave of bankruptcies in Q1, Q2, and Q3. Major players like Infarm, AppHarvest, Aerofarms, and Kalera all closed operations and filed for bankruptcy. The high-profile closures then contributed to funding drying up for CEA ventures, hindering new projects.
Q4 saw some improvement. A very large ReFarm project began in Dubai’s FoodTech Valley, a 900,000 sq. ft. vertical farming facility. Some experts are suggesting that the economics are better for greenhouses than vertical farms. Greenhouses utilize free sunlight, reducing lighting energy costs, even if supplemental lighting is used in a greenhouse. Vertical farms also tend to be more technology-heavy, increasing capital expenditures and financing costs compared to greenhouses.
Lots of technology is still being pursued, experimented with, and adopted by the industry, including AI, digital twins, CRISPR-Cas9 gene editing, advanced LED lighting, and Nanobubble technologies.
Countries with the most activity in CEA include The Netherlands, Israel, Dubai, Saudi Arabia, and Singapore. The UK is also poised for growth. The USA, Canada, Mexico, and the Caribbean islands have enormous potential, and lots of research is occurring, including the USDA’s Agricultural Research Service (ARS).
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