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Rethinking the supply chain – reducing the Minimum Efficiency Scale

Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

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Page 1: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Re‐thinking the supply chain – reducing the Minimum Efficiency Scale

Page 2: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

The Industrial Revolution was only possible due to an Agricultural Revolution

Page 3: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 4: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Cities are fed big retailers

Page 5: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Many countries rely on imports

£7bn

…with suppliers making sustainability claims… 

Page 6: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

…but current fresh produce supply chainhave a massive environmental impact

…but current fresh produce supply chainhave a massive environmental impact

Page 7: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Vegetation rotting in plastic wrappers…

… is the hardest waste to recycle

Page 8: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Beijing, London, Paris and many more seek to reduce air pollution by banning fossil fuelled vehicles.  New developments will replace old industries 

– often without roads

Page 9: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 10: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

The standard distribution curve has a big impact on agriculture

Page 11: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

For some Horticulture varieties…

…the need to fill a lorry means that only some harvest ready crops leave the farm

Page 12: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Bringing the rural business model to a city:

• Allotment / market garden

• Stacking hydroponicsDelivering nutrients via water – can be without any soil / growing media

• Aeroponics Going beyond hydroponics by spraying nutrient rich water onto roots

• AquaponicsCombining hydroponics and aquaculture (fish farming)

Page 13: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Allotment / market gardenA nice idea ‐ but not enough to feed a city

Page 14: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Hydroponics

Usually complex Pipework, poor/no data 

capture and

too much manual handling that 

should be avoided 

W f it b ildi

Page 15: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Aeroponics‐ hydroponics for crops that cannot cope with 

flooded roots. 

Has nozzle blocking issues but gaining 

popularity in specialist sectors 

such as disease free seed potatoes

Page 16: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

AquaponicsGreat for education

…but not easy to scale. Fish the hardest bit and easiest to avoid

Adds 30% to costs &restricts crop varieties‐must be a very strong local demand to make it worthwhile in a city

Page 17: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Current greenhouse cost model:

Seeds & Soil9% Labour

9%

Utilities12%

Greenhouse5%

Warehouse7%

Forklift2%

Transit Packaging24%

Diesel8%

Driver12%

Lorry12%

Page 18: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Seeds & Soil 10%

Labour 10%

Energy 10%

greenhouse5%

Distribution65%

& up to 3 days

…but look at the total cost of distribution:

Logistic businesses always state the final mile is the most expensive – so that is the one to avoid

Page 19: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Retailers sell £12‐1400 /m2/week 3 x what greenhouses grow in a year... So why try it in space costing 30‐50,000 

All depend on Hydroponics with complex pipework and whole system control rather than 

individual crop data

Page 20: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Seeds & Soil8%

Labour8%

Utilities25%

Building20%Fuel

3%

Transit Packaging

18%

Drivers9%

Vans9%

Bringing the Greenhouse Business Model to a city can         only add to costs

Page 21: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 22: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

‘The worst thing you can be doing is to do well the things that you shouldn’t be doing in the first place’ 

Chris Knight, CEO Lotus Cars 

Page 23: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 24: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 25: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Utilities

Install a lightweight automated greenhouse hereNo pollution Consume waste heat & CO2  

No transit packagingA secure & reliable supply chain growing to order 

Provenance from Seed to Sale™

So why not avoid distribution? 

Greenhouse & monitoring 

Seeds & soil

Labour

Page 26: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

CloudGro®whole turnkey supply chains

• Same CapEx ‐ low OpEx• Consume waste heat & CO2• no transit only packaging to buy or dispose of and full traceability  ‐ Seed to Sale™

• Additional revenue:• maintenance, • monitoring • ‘grow to order’ crop planning service

• Managed in the Cloud

Page 27: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Yesterday’s late crop arrives alongside today’s main and tomorrow’s early crop

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Page 28: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Creating a delay can improve quality and match a drop in demand… 

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The ability to slow crop growth offers benefits – many improving quality.  

Page 29: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Data is King in today’s world…

Traditional agriculture is collecting more data than Controlled Environment Agriculture 

Fields can be mapped by down to individual plants yet most Vertical Farming data is 

homogenised to facility level.

CFS track individual trays with RFID & offer data from Seed to Sale™

Page 30: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 31: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough
Page 32: Re thinking the supply chain – reducing the Minimum ... · • Aquaponics Combining hydroponics and aquaculture (fish farming) Allotment / market garden A nice idea ‐but not enough

Re‐thinking the supply chain – reducing 

Thank you Jonathan Lodge

jonathan@city‐farm‐systems.com