In-Store Vertical Farms: Shortening the Farm-To-Fork Supply Chain

In-store vertical farms are the next step in turning controlled environment agriculture (CEA) from an experimental food production technique to the mainstream source of food. With changing climate and rising temperatures, both the quality and quantity of agricultural produce have dwindled to the extent of pushing a global food crisis on the table within a few years. According to a NASA study published in 2021, Maize and wheat yields are expected to decline by 24% and 17%, respectively, before 2030 under severe climate change. What further complicates the situation is the harvest lost across the global food supply chain. In 2021, the food loss at various levels stood at 13.2% of total global harvest bringing the Food Loss Index (FLI) to 98.27. Innovative concepts like in-store vertical farming hold the potential to reduce such losses in the near future. How? Let’s figure out.

Understanding In-Store Vertical Farms

The in-store vertical farms converge retail and agriculture by bringing farms to store shelves. These farms are placed either inside or close to the retail establishments to ensure fresh produce for buyers. Apart from all the established benefits, one of the primary reasons for these setups is less wastage, lower transportation costs, and a smaller ecological footprint than that was associated with the traditional food supply chain. Vertical urban farming carries the potential to neutralize the challenges associated with the global food supply chain in the near future.

How Does An In-Store Vertical Farm Work?

For now, the business model of in-store vertical farms comprises three purchasing options:

• Purchase Produce Only: For now, most farms allow customers to select and purchase fresh produce from the on-site farm and take fresh products home.
• Whole Farm Purchase: It is not a common offering, but some retail establishments and supermarkets are allowing the purchase of complete farms that can then be taken home and operated within private properties. The option is available for both individuals and businesses.
• Subscription Options: As the name suggests, the buyer may subscribe to regular deliveries from an in-store farm to receive the fresh produce regularly.

Can In-Store Vertical Farms Answer The Challenges Pertaining To the Global Food Supply Chain?

Vertical farms’ economies and energy consumption have deterred their growth and wider adoption. The need to control the growth environment calls for a constant supply of energy, which raises the total production and startup costs. Nevertheless, a point-by-point comparison of economies of various stages of the supply chain sheds some light on how the in-store variants of vertical farms stand firm and justify the need to keep CEA around in the long run:

Production: In the summer of 2022, the extreme temperatures destroyed or reduced crop yields in North America, China, South Asia, and several other bread baskets of the world. East Africa is in its fourth consecutive year of drought this year, while European and Chinese rivers and soils are going dry due to extreme droughts. Simultaneously, severe flooding swept parts of Nigeria, the US Corn Belt, and Pakistani rice. It is obvious that the climate conditions cannot be controlled or brought under check quickly. However, the global population will cross the 8.5 billion mark by the end of this decade. The climate cannot be brought under check by then, but we will need more secure alternatives to feed more mouths. The controlled environment agriculture holds the potential to answer this problem to quite an extent, and maybe that’s why some of the leading economies around the globe, including Japan, APAC countries, and North American nations, have heavily invested in it.

Storage & Handling Losses: A harvested crop’s storage and handling part is as tricky as extracting its desired quality from the field. It is a common sight in countries with high temperatures and poor storage infrastructure. The damage is most significant in the context of green leafy vegetables and fruits. Mold growth, bacterial contamination, freezer burns, and loss of nutritional value are some of the other woes that accompany storage and handling mistakes. On-shelf vertical farms offer a simple solution as both growth conditions and supply can be quantified based on demand, thus limiting the burden of storage and handling for the most perishable products.

Transportation Losses: The losses are enormous when harvested crops, vegetables, and fruits are transported several miles. The last report by UNEP submitted that 13% of global food is lost between harvest and retail outlets. Most of this damage is borne by fruits and vegetables; the longer the food miles are, the higher the damage. With rising population and urbanization, the demand and supply equation of fresh fruits and vegetables may stretch further in the wake of supply chain inefficiencies. Strategic upscaling of in-store vertical farms can help meet such a steep rise in demand and help meet the demand for organic, fresh food with a smaller carbon footprint.

Better User Experience and Localization: The increasing pressures for ethical sourcing and sustainable choices from users’ end increase the appeal of CEA for retail store chains. A nearby source of produce could be pivotal in reducing transportation, storing, and handling losses bringing the economies of scale in favour of both producers and consumers. Lastly, it will allow producers to lessen their dependence on chemical preservatives while increasing the availability of endemic, local as well as specialty crops around the year. 

Final Word

If the energy and monetary economics of food loss through FSC (Food Supply Chain) are pitched against a vertical farm’s capital cost and energy requirements, the result would certainly favor the latter. In-store vertical farms make a strong case for combating the downside of food loss and wastage across the conventional supply chain from farm to consumer. As R&D efforts alleviate the energy and crop variation complication of CEA, in-store vertical farms will prove their potential to fill the loopholes of the global food supply chain.