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.
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6525 Daniel Burnham Drive, Suite B
Portage, IN 46368-1793
Phone: 219-762-9990
Fax: 219-762-9992
www.greensensefarms.com