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CONFIDENTIAL ©2018 SPREAD Co., Ltd. All Rights Reserved.
March 19, 2018
Global Potential:Understanding the Drivers for Vertical Farm adoption in Asia
J.J. [email protected]
CONFIDENTIAL ©2018 SPREAD Co., Ltd. All Rights Reserved.
Global Challenges facing Agriculture
Food security will continue to be an issue…
2
Growing Population Water Scarcity
Extreme Weather Greenhouse Gas Emission
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What about Asia?
The demand for clean food has sparked the search for
new solutions for food productionFood Scandals Rising Pollution
Environmental Disasters Excessive Pesticide Usage
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3.20 2.851.89 1.49
0.56 0.31
0.830.69
0.78 1.23
1.251.00
6.22
3.44
2.141.17
0.80
0.51
10.25
3.48
2.17
3.89
2.61
1.82
1970 1980 1990 2000 2010 2017
Farmer
64yrs or
under
Farmer 65+
yrs
Part-time
Farmer
12%
17%
27%
51%
61%
66%
Drivers in Japan
Shrinking number of farmers and arable land causing food self-
sufficiency rate to decrease
4
Percent of
farmers over 65years old
Number of Farmers
Source: Ministry of Agriculture, Forestry and Fisheries (Japan)
Hectares decreased by▲1.35 million
Amount of Arable Land Food Self-Sufficiency Rate
Almost 20% decrease in production・Japan’s Rank, 125 out of 137・OECD Country 30 out of 35
(2013)[mil of people]
[mil of hectares]
[%]
0
100
200
300
400
500
600
700
1970 1980 1990 2000 2010 2017
Other
Farm
Rice Farm
85
7775
7169 68
60
53
48
40 39 3946
3330
28 27 28
1970 1980 1990 2000 2010 2017
Production
Calories
Supplied
Grains
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The Rise of Plant Factories (Vertical Farms)
75% of all vegetables consumed in Asia
1983 Japan’s first plant factory
450 farms across Japan, China, South Korea, Taiwan (2014)
70% growth in the number of farms in Taiwan and Japan since 2009
0.6% total lettuce production in Japan
5
Due to these drivers, Asia leads the way for indoor farming production
Source: The Rise of Asia’s Indoor Agriculture Industry Report (2016)
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Japanese Vertical Farming Market
With almost 200 farms, the industry is becoming more established
6
64
106
125
165
185 191 197
2011 2012 2013 2014 2015 2016 2017
Number of Vertical Farms
Largest Production Capacity (Top 20)
# Name of plant CompanyScale(㎡)
Capacity(Heads/day)
1 Kameoka Plant Spread 2,868 21,000
2 (Unknown) Vitec Farm Nanao 2,510 17,000
3 Nabari City Farm Kosho 1,640 15,000
4 Fuji Farm Innovatus Inc. 1,852 12,400
5Kohama Vertical Farm GreenLand
GreenLand 1,800 10,300
6 Tsuruga Factory NYK Group 1,396 10,000
7 Green Room Mirai 2,300 10,000
8 Kashiwa-no-ha Smart City Mirai (N/A) 10,000
9 Toshiba’s Yokosuka Farm Toshiba 1,969 9,000
10 808FACTORY 808FACTORY 1400 9000
11 Kawauchi-Nosanbutsu-FactoryKimidori 4,324 8,000
12 Green Clocks Factory Osaka Prefecture University 1,300 5,000
13 Ts Farm Shirakawa Kewpie 1,390 4,500
14 Aizuwakamatsu Akisai PlantFujitsu Home & Office Services
2,000 3,500
15 e-vege.farm Total Kitchen Goods 2,000 4,000
16 (Unknown) Nihon Yamamura Glass (N/A) 3,800
17 Fukui Minami-jomae Factory Yasaikoubou 1,500 3,600
18 Aizuwakamatsu Akisai PlantFujitsu Home & Office Services
2,000 3,500
19 SG Greenhouse SAIBUGAS (N/A) 3,500
20 Sci Tech Farm Tamagawa University 900 3,200Source: Japan Greenhouse Horticulture Association, Spread Survey
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Quick Look at Profitability
Approximately 30% of Japanese vertical farms report being profitable
7
7.4% 7.4% 3.7% 11.1% 7.4% 25.9% 7.4% 3.7% 22.2% 3.7%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Profitable in past years with increasing profitability Profitable in past years without change
Profitable in past years with decreasing profitability Unprofitable in past years but became profitable
Have broken even in past years Unprofitable in past years, but approaching profitiability
Unprofitable in past years without change Unprofitable in past years with reduced profitability
No sales activities Unknown
Profitable 29.6%
Source: Japan Greenhouse Horticulture Association
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Assembling cutting-edge technologies in anticipation of global expansion
8
before After
Production of 30,000 heads per day
First Automated, Large-scale Vertical Farm
Food Infrastructure Resilient to Weather
Automation Water Recycling Climate Control IoT
Connecting Leaves to Lives
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Let’s take a glance of key technologies
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Product Diversification
10
StrawberriesBaby LeavesLettuce
Constant innovation to accommodate different market needs
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Using 2018 as a launch pad, we aim to have 100 farms by 2025
around the globe
11
Japan
North America
Europe
Middle East
Techno Farm KeihannaJapan
x 20 Farms
x 40 Farms
x 30 Farms
x 10 Farms
YEAR 2025
100 Farms
2018 Launch
Techno Farm Expansion
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We aim to utilize Techno Farm to drive forward agricultural
innovation for generations to come.
Our Mission
Picture Taken in
March 2018
Thank
You!
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