Can Bahrain Start a New Industry of Leafy-Vegetables Farming to Reach to Its Self-sufficiency？

Can Bahrain Start a New Industry of leafy-Vegetables Farming to Reach to Its Self-sufficiency?

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Can Bahrain Start a New Industry of

Leafy-Vegetables Farming to Reach to Its

Self-sufficiency?

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July 31, 2014

Contact： Dr. Allen Lang, Peter Teng

SpeedyGreen, Inc.

Telephone：+86-186-5526-9911

email：[email protected]


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Bahrain is an island country, located on the southwest side of Persian Gulf, neighboring Saudi

Arabia on the west and Qatar on the south-east. Bahrain is rich in petroleum and is a small and

wealthy nation. Bahrain has a population of 1 million residents.

Bahrain weathers in hot tropical zone dessert with sandy land, very high temperature in the

summer and is with very limited rainfall (average precipitation of 77mm only). Bahrain is not suitable

for producing vegetables on its land. Although there are a few local farms which can produce some

vegetables in the winter time, but the volume produced are only 7% of the total vegetables

consumption, far from meeting the needs of the one million residents in Bahrain. 93% of the total

vegetables consumption in Bahrain is air-shipped from other countries which drives the local market

price of vegetables stably-high. Due to the heavy dependency on foreign imports and high cost of

air-cargo shipping, shortage of supply is frequently fluctuating local vegetable’s prices. Bahrain’s

residents are suffering not only with the high vegetable prices, also with lacking of freshness of the

vegetables available.

With Bahrain’s richness in wealth, and its anxiousness of finding solution of providing fresh

vegetables to its local consumers, there is a genuine need of mass-production vegetable factories

with modern technology to overcome its natural land and climate deficiency.

Can Bahrain start a new industry to produce leafy-vegetables to supply to its own local market?


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If succeeded, it would mean that Bahrain can cut its foreign imports of leafy-vegetables of 24,000

tons a year, or 120 million USD a year. In additions, residents in Bahrain will enjoy fresh

leafy-vegetables on their local market.

We mentioned before that Bahrain is rich in petroleum and provides very low-cost electricity. So,

what Bahrain really needs, is mass-production-type and efficiently-designed Hydroponic Vertical

Farming Factories of leafy-vegetables. With Bahrain’s advantages in low-cost electricity, such

factories can mass-produce leafy-vegetables with low-cost. Vegetables produced can be sold to the

local market replacing the imported and non-fresh leafy-vegetables. A new and

environmentally-friendly leafy-vegetables farming industry can be started in Bahrain.

What is the mass-production-type and efficiently-designed Hydroponic Vertical Farming Factory

of leaf-vegetables?

Following graph shows a well-designed hydroponic vertical farming factory

of leafy-vegetables, when its demanding requirements are met, can turn

vegetables “Seeds” into “Gold”.

A magic to turn seeds into gold

Hydroponic Vertical Farming, in recent years, causes a lot of confusions for investors in this

field. Due to that multiple technologies are involved with high complexity in its design, many

hydroponic vertical farming factories with different approaches are introduced and experimented.

Some are very good for demonstration of this technology, but not practically-designed to meet

mass-production requirements. Some can handle mass-production of vegetables, but fail to make

profitability on its operation. To perform the magic we mentioned, we need a properly-designed


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hydroponic vertical farming factory that make sense and is efficient enough to generate profitability.

Author-designed hydroponic vertical farming factory of leafy-vegetables, we believed its

operation can be profitable when it is built and operated in Bahrain. Let us analyze the requirements

of the hydroponic farming factory that can generate profitability in Bahrain (for easy of explanation,

let us use “lettuce production” as the production type):

1. It has to perform mass-production of leafy-vegetables: author-designed 1530 ㎡ factory,

can produce at least 1 million heads of lettuce a year. Without this kind of mass-production

capability, reaching Bahrain’s self-sufficiency seems impossible. A same-size factory that

can produce less than 10% of this quantity of vegetables will not be cost-effective to

generate profitability as well as meeting the market’s demand on vegetables quantity.

2. Its source of energy required has to be what Bahrain can offer: Since Bahrain can provide

low-cost electricity, this factory should be designed to only draw on electricity, not on other

resources which Bahrain cannot provide. A factory that demands large amount of fresh

water, land and high-skilled labor which Bahrain cannot offer is not qualified.

Author-designed factory relies heavily on the drawing of large amount of electricity but

demands very little on other sources. This is quite matched with Bahrain’s reality.

3. It should utilize Hydroponic Vertical Farming: Vertical Farming saves land-usage and

makes control of the environment easier and more cost-effective. Profitability of the

factory’s operation relies on these savings. Author-designed 1530 ㎡ factory provides

3-layer-structure on its working space, forming the storage of total of 273 seedbeds (4.3M

X 1.72M) with accumulated growing space area over 2100 ㎡. This type of Hydroponic

Vertical Farming factory is what Bahrain really needs.

4. It should be designed with “Automated-Moving- Seedbeds- System”: once we go with

Vertical Farming, the multi-layer vegetables growing space structure prohibited

human-handling of any production processes. We need an automated system to transfer

the growing units (seedbeds) to a working space area for handling and processing.

Author-designed factory is designed with such an automated system with streamline-style

production line operation.

5. It should utilize “Multi-Stage-Transplanting-Method”: traditional land-growing-method

designates a fixed fully-grown-vegetable-size area for growing vegetable from seed to

harvestable-stage. While “Multi-Stage-Transplanting-Method” designates different areas to

grow sprouts arranged in different density to optimize the usage of growing area. And

transplanting of sprouts from high density area to lower density area is performed at end of


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each growing stage cycle. Mathematic calculation proves that this method can grow 2.5

times more vegetables than the traditional method. However, due to the large of

transplanting action of sprouts from stage to stage is needed, this method can only be

easily implemented on Vertical Farming Factory with “Automated-Moving- Seedbeds-

System”. Instead of performing transplanting during each end of stage time, Vertical

Farming Factory with automated moving seedbed system averages out all the

transplanting work on a daily processing basis. With Vertical Farming’s increasing

production quantity efficiency by the number of layers in the vertical structure, and the

“Multi-Stage-Transplanting-Method” increasing production quantity efficiency by 250%, the

total combined production quantity efficiency can reach 6-10 times verses the traditional

growing method on a non-vertical farming way. That is why author-designed 1530 ㎡

factory can produce more than 1 million heads of lettuces a year.

6. It should utilize industrial streamline-style production: The traditional agriculture-style

production is a style that farm workers roaming around the whole growing space area

performing production-related work. This is wasteful as well as non-effective. The industrial

streamline-style utilizes production line setup for workers to stay at the side of it and

perform the necessary handling and processing. Therefore, author-designed hydroponic

vertical farming factory of leafy-vegetables is designed with separated growing space and

working space. Plus the “Automated-Moving- Seedbeds- System” is designed to allow farm

works to stay on the side of the production line in the working space and the robotic

vehicles are used to transfer the need-to-be-processed seedbeds to the production line.

This set-up increases the production efficiency and cuts down the wastes in labor and cost

as well.

7. It should be installed inside a sealed industrial workshop building: glass greenhouse is not

well-insulated which increases the cooling cost in the case of Bahrain’s hot summer

temperature. Also, glass greenhouse costs more to build than the simple industrial

workshop building. All of these contribute to saving of costs, therefore, increasing of

profitability. Author-designed factory utilizes industrial workshop building, not glass

greenhouses for saving costs as well as the total controllability of vegetables growing

environment.

8. It should utilize automated recycling-irrigation system: water-saving is important in place

like Bahrain. Author-designed factory is installed with such a computer-controlled recycling

irrigation system.

9. It should utilize automated LED illumination system: Bahrain can provide low-cost

electricity and this will not be a major expense for our factory’s operation. Author-designed


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factory is installed with such a computer-controlled LED illumination system.

10. It has to generate profitability on its operation in Bahrain: For any hydroponic factory that

requires governmental subsides to operate is not qualified to help Bahrain reaching its

self-sufficiency of leafy-vegetables production. Author-designed factory built and operated

in Bahrain can produce annual ROI of more than 40%. The Profit & Lose Statement is

provided at the latter part of this article.

So, Bahrain has a unique opportunity: to build and operate our highly-efficient and

mass-production-type factories in Bahrain, enjoying the low cost of electricity, and produce large

quantity of fresh leafy-vegetables to its local market.

Analysis of Bahrain’s capability to meet the profitability requirements on

building and operating an author-designed hydroponic vertical farming

factory of leafy-vegetables:

First, we analyze on the cost of electricity. Hydroponic Vertical Framing Factory of

leafy-vegetables requires large consumption of electricity. For author-designed 1530 ㎡ factory, it

consumes 1.25 million KWH for LED illumination a year, and 0.75 million KWH for building heating

or cooling cost for maintaining consistent temperature of 25-30°C year-round. Total consumption of

electricity can reach 2 million KWH a year when heating/cooling of the workshop space is needed.

For comparison, we look at different places on the world for their cost of electricity (assumed that all

LED illumination & heating is all done by electricity), and the total cost of electricity of our factory

operating there:

Cost of Electricity Electricity Cost Operating Our Factory

Qatar $0.014/KWH $28,000/per year(cooling required)

Bahrain $0.040/KWH $80,000/per year(cooling required)

Iceland $0.040/KWH $50,000/per year(no heating/cooling)

China $0.100/KWH $200,000/per year(cooling required)

USA $0.075/KWH $150,000/per year(cooling required)

Japan $0.230/KWH $460,000/per year(cooling required)


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Nordic Europe

continent Countries

$0.400/KWH $500,000/per year(no heating/cooling)

From the above chart we found that, Bahrain’s electricity cost is very low among world

countries. The low-cost of electricity in Bahrain drives the total cost of the operation of our factory

down. The total cost of electricity of operating our factory is only $56,000 a year.

If the cost of total consumption of electricity is low, then the profitability of the author-designed

factory depends on the Income side of the balance sheet, i.e., the wholesale price of the vegetables

produced. The wholesale price is used to calculate the total income of its operation, and it, in terms,

depends on the retail-price of the vegetables on local market.

Following chart shows the market retail-price of one head of 200g lettuce from different locations on

the globe (information from website NUMBEO.COM under Cost of Living – Lettuce per Head):

For one head of lettuce (200g) Market Retail-Price

China $0.75

Qatar $1.60 – $1.80

Bahrain $1.70 - $1.90

USA $1.00 - $2.00

Japan $1.80 - $2.80

Nordic Europe Continent Countries $2.10 - $2.80

Iceland $2.90 – $3.10

Author-designed hydroponic leafy-vegetable factory can produce high profitability for local

farmers in Bahrain because its local market prices of vegetables are very high. Our standard 1530

㎡ factory can produce roughly 1 million heads of lettuce per year (200g Lettuce production is used

as example). With wholesale price of $1.1 per head, or $5.5 per Kg, it can generate $1.1 million

dollars income a year. Minus all expenses (including depreciation), the ROI is 40%-50% a year on


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the total investment of 1.55 Million USD. (We will show, in the end of this article, the Profit & Lose

Statement of the author-designed factory, built and operated in Bahrain).

Bahrain has a population of only 1 million. If we take a look at the nearby country of Bahrain, we

will find that it has a very similar situation as that in Bahrain. Qatar cannot produce enough

land-grown vegetables for its 2 million residents and also relies heavy on imports of vegetables

(97%) from other countries. The market prices of vegetables are also very high. Therefore, the

combined vegetables-consuming population is 3 million when we include Qatar. When we calculate

the Profit & Lost Statement, we use a wholesale price of $1.1 per head of lettuce. This price is a

reasonable wholesale price so that we can export vegetables produced to Qatar and the final

retail-price is still be competitive there.

So, this provides Bahrain with a unique opportunity: we can build and operate our factories in

Bahrain, enjoying the low cost of electricity, and produce large quantity of fresh leafy-vegetables to

its local market as well as export to Bahrain. Will our vegetables produced be still fresh after

shipping from Bahrain to Qatar by ocean-freight? The answer is “Yes” due to that

hydroponically-produced vegetables are harvested with roots not cut. Vegetables are still alive after

harvesting. With proper packaging, their freshness can be maintained with 3-5 days of shipping on

the ocean and on the continent land.

We now look at some possible scenarios in Bahrain and each with the statistics it may

generate:

If 120 of our factories are built and operated within 3 years in Bahrain, following will be the

statistics it may generate by using lettuce production as an example:

Total Amount of Investment: 186 million USD in 3 years

Total Lettuce Produced: 24,000 tons per year after all factories are built

Total of Vegetables Trade Imports Saved (with wholesale price of $5.5/Kg): 132 million

USD per year after all factories are built

A realistic schedule to reach this goal will be: to build 4 pilot factories in 2015, and 58

factories in 2016, and 58 factories in 2017

Bahrain will reach to its self-sufficiency in leafy-vegetables production in 3 years

If 360 of our factories (fulfills the whole market size of Qatar and Bahrain) are built and operated

within 7 years in Bahrain, following will be the statistics it may generate by using lettuce production


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as an example:

Total Amount of Investment: 558 million USD in 6 years

Total Lettuce Produced: 72,000 tons per year after all factories are built

Total of Vegetables Trade Imports Saved (with wholesale price of $5/Kg): 132 million USD

per year after 120 factories are built

Total Trade Export to Qatar Revenue Generated: 264 million USD per year after all

factories are built

A realistic schedule to reach this goal will be: to build 120 factories in 2015-2017, and 60

factories each year from 2018 and on for another 4 years

Bahrain will reach to its self-sufficiency of leafy-vegetables production as well as export the

produced-vegetables to Qatar

Now, we come back to look into the author-designed hydroponic vertical farming factory of

leafy-vegetables, and see why it is efficiently-designed and practically-operable for high profitability.


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Author-designed Hydroponic Vertical Farming Factory of leafy-vegetables:

a well and efficiently designed hydroponic vertical farming factory of leafy-vegetables built inside an

industrial workshop building

Our fully-automated mass-production vegetables-growing system is built inside a completely

enclosed industrial workshop building. This automated system is called “Automated

Multi-Layer-Moving-Seedbed System”. Our standard factory requires only a space of 1530 ㎡. A

WorkingSpace (or Headhouse) of 30M X 12.5M with flowing-lines of working benches, allows

movable seedbeds to flow through there during daily work is performed by workers waiting inside. A

large Growing Space of 38.5M X 30M with 3 layers of 7 growing-lines of shelving on each layer

forms a 3D shelving space for storing 273 movable seedbeds (growing units, 4.3M X 1.72M each).

Total actual growing area reaches 2100 ㎡.

Multi-Stage-Transplanting-Growing-Method is used. Seeds are prepared and sent inside a Spouting

Room to grow into sprouts. Then all sprouts are washed and planted into the seedbeds designed to

grow into 4X4 c ㎡ sprouts. After 4X4 c ㎡ sprouts are grown, they are transferred to seedbeds

designed to grow into 7x7 c ㎡ sprouts. After 7x7 c ㎡ sprouts are grown, they are transferred to

seedbeds designated to grow into 14X14 c ㎡ full-size harvestable vegetables. This is the optimal

way to grow the maximum amount of vegetables. Also, we turn the 20-days-a-time transplanting into

daily routing operations. Same routine procedures are executed daily seedbed by seedbed along

with daily harvesting of fixed number of seedbeds of fully-grown vegetables. The whole production

becomes year-round non-stop operation with daily routine procedures. This averages out the sparse

labor and procedural requirements into daily work, and makes the best usage of man-power as well

as the ease of execution.


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Two Robotic-Vehicles are used for shuttling movable seedbeds between Workshop and Growing

Space. Workers perform work on the seedbeds flowed inside Workshop and never step into

Growing Space.

Our product can produce massive quantity of leafy-vegetables with low-cost. For growing lettuce as

an example, in Bahrain, this factory can produce 1 million heads or 200,000 Kg of lettuces a year. It

is a completely self-supplied factory (all stages of sprouts are produced internally) requiring only

vegetable-seeds as its production source. Electricity is required to light up LED lighting and liquid

fertilizer and water is required for irrigation. It required limited resource on land. It does not generate

pollutant substances and is very environmental-friendly.

The reasons that our factory matches with Bahrain’s conditions perfectly because:

1) The major cost of operating our hydroponic vertical farming system is the cost of electricity. Our

standard 1530 ㎡ factory requires 1.25 million KWATS of electricity to provide LED lighting.

Bahrain provides extremely low cost on electricity. Its electricity cost ($0.04/KWATS), is 75% to

China, 30% comparing to Japan, 10% comparing to Norway, Denmark, Finland and Sweden.

Our hydroponic vertical farming system basically utilizing Bahrain’s low-cost electricity to turn

seeds into leafy-vegetables.

2) With Bahrain’s high demands and high price on fresh leafy-vegetables, our factory can obtain

handsome profits by operating it in Bahrain.

3) Our vegetable factory requires only vegetable-seeds as its source and is fully self-supplied with

self-grown sprouts and strong-sprouts. Once the factory is built and operation started, no

imports materials other than vegetables-seeds are required.

4) Our vegetable factory’s operations are simple and standardized. Only one computer operator is

required with certain computer knowledge and all other daily tasks done by the workers are

routine and repetitive. Workers can be trained easily with no prior experiences required.

5) Any local farmer invested in building and operating our leafy-vegetable factory can result in high

profits. And ROI of factory can be as high as 40-50% annually. They can recover their full

investment within two and a half years.

Author’s Hardware Know-how：

1. Growing Units-Movable Seedbeds design ： where germchits, strong-sprouts and

leafy-vegetables are grown. They are stored in the 3-D Growing Space while lighting and


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irrigation are performed daily until growing-cycle is completed.

2. WorkingSpace (Headhouse) design （Harvesting/Packaging/Shipping; Planting Seeds,

Transplanting Germchits/Sprouts）：Two robotic-vehicles are used to shuttle movable

seedbeds between Workshop and Growing Space. Workers are waiting inside here to

perform works daily on the seedbeds retrieved from Growing Space. Then, newly planted

seedbeds are shuttled from Workshop into the Growing Space.

3. Robotic-Vehicles design：two robotic-vehicles are used. One for delivering newly planted

seedbeds from Workshop into Growing Space, one for retrieving ready-to-process

seedbeds from Growing Space to Workshop.

4. 3-Dimentional Shelving Space for all movable Seedbeds design：

A. 3-layers shelving structure

B. 7 movable Seedbeds flowing lines on each layer

C. 13 movable Seedbeds can be stored and flowed on each flowing line

D. Automated Irrigation System design：Recycled Nutrient Liquid are stored in tanks and

daily irrigation is performed automatically by computer-control schedule. A hydroponic

NFT method is implemented.

E. Automated LED Lighting System design: LED lighting are installed on top of every

movable seedbeds on the shelving. Daily lightings are performed by computer-control

schedule.

Author’s Software Know-how：

1. Computer operated software for delivering and retrieving movable seedbeds

2. Recipes for nutrient solutions for different kinds of leafy-vegetables

3. Recipes for lighting schedule for different kinds of leafy-vegetables

4. Recipes for handling Seed-to-Germchit, Germchits-to-StrongSprout,

StrongSprout-to-Vegetable for different kinds of leafy-vegetables

5. Providing detailed processing notes for growing vegetables on different stage

6. Providing detailed information on harvesting, packaging and shipping processing

7. Assurance on the mass-production on the leafy-vegetable requested by the customers

8. Proving consultation on developing new leafy-vegetables production

Photos of Author-designed factory：


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To calculate the Total Number of Lettuces produced annually in our

factory:

With actual data collected in a in the author-designed factory in 2012-2013, we provide heads of

lettuces that a 1530 sq. meters factory that can be produced annually:

System Configurations and production statistics:

Total of Growing Units: 273

Each Growing Units size: 4.3M X 1.73M

Cost of industrial workshop build: $250,000

Cost of Hydroponic Vertical Farming System installed inside: $1.3 Million.

System has a Germination Room to produce initial-sprouts (2cmX2cm-size) from

vegetable-seeds daily with 14 days of growing cycle. 4950 initial-sprouts (2cmX2cm-size) can

be produced daily.

System utilizes 26 growing units to produce stronger-sprouts (4cmX4cm-size) from

initial-sprouts (2cmX2cm-size). 1 growing units (around 3600 stronger-sprouts) can be

produced daily.

System utilizes 52 growing units to product lager-sprouts (7cmX7cm-size) from

stronger-sprouts (4cmX4cm-size) with 20 days of growing cycle. 2.6 growing units (and 3200

stronger-sprouts) can be produced daily.

System utilizes 195 growing units to product harvestable lettuces (14cmX14cm-size) with 20

days of growing cycle. 9.25 growing units (and 2900 vegetables) can be produced daily.

Total Number of Lettuces can be produced annually:

Annual Production calculations:

With one stage of Germination in a Enclosed

Room, and 3 stages to grow sprouts to lettuces,

the final daily number of seedbeds that we can

produce harvesting vegetables are:

9.25

Growing

Units

Harvestable Lettuces on each Growing Units are: 348 Head

Annual Production Days are: 365 days


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Annual Number of Lettuce that we grow: 1,174,935 Head

Consider survival rate of the lettuce on each

Growing Unit:

90%

Actual Number of Lettuces produced annually 1,057,442 Head

With Bahrain’s market retail-price of $1.70 to $1.90 per head of lettuce, and we calculate total

annual income o f our factory with wholesale-price of $1.1 per head of lettuce.

Income Statement and Return-on-Investment calculation on our standard

1530 ㎡ factory ：

（by producing Lettuces as example ）

1530 Sq. Meters 3-Layer 273 Seedbeds

Hydroponic Vegetable Factory

$1,540,323 USD

Total Annual Income $1,163,186 USD

USD

Total Annual Expenses $587,051 USD

Labor Cost (total of 26 working 2 shifts,

assumed $3300 per worker per year) $179,200 USD

Cost of seeds $44,761 USD

Sprout Growing Supporter $29,141 USD

Liquid Fertilizer $9,677 USD

Consumable Materials $5,181 USD

Cost of packaging $68,222 USD

Cost of Cooling/Heating $34,560 USD


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Cost of Electricity for LED lightings $49,537 USD

Land Rental Fee $23,516 USD

Depreciation (95% depreciate in 15 years) $97,043 USD

System Operation and Maintenance $12,903 USD

Administration Fee(3% of Total Income） $33,309 USD

Profit $576,135 USD

Profit Taxes (unknown, assumed 0% at this time) %

Net Profit $576,135 USD

Return on Investment 37.4%

We can see that, local farmer make investment in building and operating our factory there, can

recover their total investment cost back in two and a half year.


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Conclusion:

Building and operating author-designed hydroponic vertical farming factory

of leafy-vegetables, Bahrain can provide fresh leafy-vegetables to its local

residents and also become a leafy-vegetables-exporting country. And a

brand-new, environmental-friendly and highly profitable industry of

leafy-vegetables farming can be started in Bahrain.

NOTE1: Author-designed Hydroponic Vertical Farming Factory of Leafy-Vegetables is

manufactured and semi-assembled in China. The semi-assembled factory will be shipped

container-ocean-freight to Bahrain for final assembly and testing onsite. Lead-time from the order is

given with 66% down payment, to the delivery onsite is 3 months, and final assembly and testing

time is 2 months. So, total of 5 months of lead-time before the system is functional shall be

expected.

NOTE2: The standard1530 ㎡, 273 seedbeds system price is 1.3 USD FOB Shanghai, China

including all turn-key system equipments inside an industrial workshop building. This price excludes

the industrial workshop building itself and the temperature-controlled system of the building.

NOTE3: Author’s company will guarantee our customer of the production of the mutually-agreed

type of leafy-vegetables, and is willing to perform the vegetables production operation for the

customer under mutually-agreed contract with charge if so desired by the customer.

NOTE4: Author-designed factory currently is designed for lettuce growing and production. Other

mutually-agreed type of leafy-vegetable can be chosen and author’s company will make the proper

modification to perform the production of vegetable type chosen. However, we only allow one type of

leafy-vegetables to be grown and produced in one factory. The production of various types of

leafy-vegetables in the same factory will weaken the utilization of seedbeds and degrade the

efficiency of the production (and may lose the profitability), therefore, not supported.

NOTE5: Because our factory utilize the “Multi-Stage-Transplanting-Growing-Method”, there is a

ramp-up time of 74 days (in the case of lettuce production) before daily production of targeted

quantity can be performed from that day and on. The ramp-up times for different type of

leafy-vegetables may vary.


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NOTE6: Although Bahrain is what author writes this article for, there are two other places that author

has in mind can also build and operate of our factory of leafy-vegetables with high profits: they are

Bahrain in Persian Gulf, and Iceland in Nordic Europe. Investors with interests in building and

operating of our factories in these two locations can send your request to Author’s email address:

[email protected] and the full analysis information package will be replied to you with the location

you specified.

mailto:[email protected]

Documents

Can Bahrain Start a New Industry of Leafy-Vegetables Farming to Reach to Its Self-sufficiency？