AeroFarms The World Largest Vertical Farming

Transcript:AeroFarms The World Largest Vertical Farming:
AeroFarms The World Largest Vertical Farming Company presenting to: Ed Harwood David Rosenberg Marc Oshima presented by: Decio Soares Nahana Caetano Romilson Teles Tobias Walzberg Insper | Sao Paulo - Brazil agenda 1 | Introduction 2 | Analysis of the situation 3 | Assumptions 4 | Alternatives 5 | Recommendation 6 | Implementation 7 | Wrap-up 1 introduction agenda Could aeroponics and vertical farming be the future of crop cultivation, without cultivating high calories-based protein and grains? Business dilemmas Could it be a profitable and sustainable business model? How could it be less dependent of capital and more energy sufficient? 1 3 2 4 Could consumers be more interested in vertical farming products? AeroFarms The World Largest Vertical Farming Company The Company Newark, NJ, USA Founded in 2011 Farming 4.0 Mission: transform agriculture (environmentally responsible farms) Revenue: US$ 50 million (2019) Venture capital: US$ 238 million (until July 2019) Capital intensive business Portfolio Brand Dream Greens Focused on leafy vegetables Data on 250 crops Possible future expansion to berries, peppers, cucumbers and fruits No staple crops (grains or proteins) AeroFarms The World Largest Vertical Farming Company Business operations 280+ operation procedures 9 farms located globally (7 in the USA, 1 in Saudi Arabia, 1 in China) 130 employees (trained and qualified) Vertical farming + patented cloth + led lights Less use of fertilizers and no use of pesticides Close to consumer markets (up to 15 miles) Low transportation cost Data analytics Short product-to-market cycle -95% water 10x +CO2 2 analysis of the situation 390 times more efficient (land use) than traditional farms Reduced transportation costs Patented technology More pest control No chemical fertilizers used Closer to large consumers area Sweeter and higher level of vitamins Dell Inc. partnership (IoT) No use of soil More carbon emission (high energy consumption) New legislation to block international funding for startups Trade war Subsidies required for energy consumption Difficulty to find qualified professional Hydroponic system high growth High fixed costs per square meter Only green salads and no high-calories grains High carbon emission due to energy consumption (LED) New methods of food production New legislation (D.C. Urban Farming and Food Security Act) encouraging urban farming S T O W 390 times more efficient (land use) than traditional farms Reduced transportation costs Patented technology More pest control No chemical fertilizers used Closer to large consumers area Sweeter and higher level of vitamins Dell Inc. partnership