The business model of a successful vertical farm

Knowing every aspect from unit production cost to target market to core values, are all important to increase a company’s ability to be profitable, the team with Green Sense Farms writes. 

Through their experience in building farms, they found a business model is, as important as having a good farm design. The consideration that is specific to a vertical farms business model include: target customers, crop mix, farm size, location, and finally a distribution strategy.

Crop mix 
One of the most important issues in farm design and the business model is what crop(s) to grow? Many farms start outgrowing a wide variety of crops- increasing the complexity of their business and decreasing profitability.  The crop will dictate how a farm is built, where it is built, and farm size. Currently, vertical farms are best engineered to grow leafy greens such as lettuce, arugula, kale, and non - woody herbs. Once the crop is defined then how it will be harvested packed and packaged needs to be considered.  Well-operated farms are customer-driven, understand what their customers demand how produce will be packaged, and specialize in a few crops that they grow extremely well.

Farm size
How is farm size determined?  The size of a vertical farm can range from shipping containers to medium-size farms to mega-farms (100,000 sq ft). Farm size starts first with identifying a target customer, understanding what crop will be grown, what volume is required, harvest frequency, and how it will be packaged. Then the size of the farm can be calculated.

For more information:
Green Sense Farms
6525 Daniel Burnham Drive, Suite B
Portage, IN 46368-1793
Phone: 219-762-9990
Fax: 219-762-9992
www.greensensefarms.com
 
 

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