After years of investment, controlled environment agriculture (CEA) is now projected to reach more than $172 billion in 2025, according to KD Market Insights, up from over $74 billion in 2020.
In one recent example, the Oppenheimer Group BB #:116424 announced in November 2022 that it plans to enter the CEA space in early 2023 by opening UP Vertical Farms in British Columbia. It says the new facility will be able to produce 350 times the greens of a conventional farm, using just 1 percent of the water.
John Bishop, national buyer for produce specialty companies at Fresh Start Foods Canada Ltd. BB #:190774 in Milton, ON, acknowledges the CEA boom. “It’s high on people’s priority list—traditional agriculture is up against a lot of issues.”
Both Darby McGrath, vice president of research and development, and Amy Bowen, director of consumer insights, at Vineland Research and Innovation Centre in Vineland Station, ON, see strong potential for new varieties bred for indoor agriculture, as well as conventional growers. Current projects involve new apple, tomato, and sweet potato varieties.
Bishop notes that while many operations are fairly small, CEA is applicable for widespread use.
“Once more acres of hothouse strawberries are being planted for retail, and producers can offer significant volumes, then foodservice operators will be able to get the product they need at the price they need to compete against field grown.”
Similarly, regenerative agriculture is also a subject of interest, especially in the organics community.
Although there’s been some success with wheat and grains in the Midwest, says Matt Seeley, CEO for the Organic Produce Network, LLC BB #:338018 in Monterey, CA, “The jury’s still out as to the impact on specialty row crops like fruits and vegetables.”
This is an excerpt from the cover story in the January/February 2023 issue of Produce Blueprints Magazine. Click here to read the whole issue. https://apps.bluebookservices.com/BBOS/LearningCenter/BP/January%202023/eBook/index.html
