Download pdf - The Rise of Asia's Indoor Agriculture Industry White Paper REV1 …1usaeh37xc8k42ejdw3evw3c-wpengine.netdna-ssl.com/wp... · 2019-12-05 · THE RISE OF ASIA’S INDOOR AGRICULTURE

ASIA’STHE RISE OF January 2016

INDOOR AGRICULTURE INDUSTRY

THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRYJANUARY 2016

ABOUT THE AUTHORS

NewbeanCapitalisaregisteredinvestmentadviserthatmanagesearlystageventurecapitalmandatesforinstitutionalinvestors.Itsfounder–NicolaKerslake–hasalongstandinginterestinagricultureinvestment,havingpreviouslycoveredagriculturestocksasanequityanalystandmanagedinstitutionalinvestmentportfoliosthatcoveredthesector.ShefoundedtheIndoorAg-Coneventthreeyears’agotoprovideameetingplaceforthosewhoareaspassionateassheisaboutthepromiseoftheindooragricultureindustry.

[email protected]

SGFarmingisanonlinelifestyleandtechjournalabouttheagriculturesceneinSingapore.Weexploreandtrackthelatestdevelopments,trendsandchallengesofthelocalfoodsystem.Weaimtopromotelocalfoodandfoodsustainability,aswellastoeducatepeopleregardingtheoriginsoffoodandtheprocessesinwhichtheyareproduced.

Specialcredittoourinternanalyst,SongShuang,forherresearchcontributionstothiswhitepaper.

[email protected]

ACKNOWLEDGEMENTS

Theauthorswouldliketothankthefollowingfortheirinputintothispaper:YurijDudaofArgusControls,Dr.KozaiofChibaUniversity,Dr.WeiFangofNationalTaiwanUniversity,BillWhittakerofPriva,JJPriceofSpread,EriHayashi.

DISCLAIMER

ThispublicationhasbeenproducedbyNewbeanCapital,aregisteredinvestmentadviser.Readershipofthispublicationdoesnotcreateaninvestmentclient,orotherbusinessorlegalrelationship.Itprovidesinformationabouttheindooragriculturemarkettohelpyoutobetterunderstandthisindustry.Thispublicationdoesnotpurporttoprovideinvestmentadvice,normayitberelieduponasasubstitutefor,speci�icinvestment,legalorotherprofessionaladvice.

NewbeanCapitalhasactedingoodfaithtoprovideanaccuratepublication.However,NewbeanCapitaldoesnotmakeanywarrantiesorrepresentationsofanykindaboutthecontentsofthispublication,theaccuracyortimelinessofitscontents,ortheinformationorexplanationsgiven.NewbeanCapitalhasnoobligationtoupdatethisreportoranyinformationcontainedwithinit.

NewbeanCapitaldoesnothaveanydutytoyou,whetherincontract,tort,understatuteorotherwisewithrespecttoorinconnectionwiththispublicationortheinformationcontainedwithinit.Tothefullestextentpermittedbylaw,NewbeanCapitaldisclaimsanyresponsibilityorliabilityforanylossordamagesufferedorcostincurredbyyouorbyanyotherpersonarisingoutoforinconnectionwithyouoranyotherperson’srelianceonthispublicationorontheinformationcontainedwithinitandforanyomissionsorinaccuracies.

1WWW.INDOOR.AG

THE RISE OF ASIA’S INDOOR AGRICULTURE INDUSTRY JANUARY 2016

EXECUTIVE SUMMARYAsiaconsumes75%ofallvegetablesglobally¹,andinextraordinaryvariety,fromtheChinesecabbageandradishthatformthebasisofKoreanstaplekimchitomedicinalJapanesespecialtyleafygreeniceplant.Itsconsumersarechangingtheirfoodpreferencesandsupplychainsareadjustingtomeettheirneeds.Asaconsequence,itsagriculturallandscapeisshifting,enablingtheriseoftechnology-basedfarmingapproaches,suchas,indooragriculture.

Indooragricultureisgrowingvegetablesincontrolledenvironments,suchaswarehouses,containersandpurpose-builtgrowingchambers,usinghydroponicsystems.Itisnotanewpractice,itsrootsgobacktoRomantimes,butithasundergonearevivalinthepast�iveyearsasenablingtechnologiesbecomemoreavailable,moresophisticatedandcheaper.

Asiahaslongstandinggreenhouseand�ieldagricultureindustries,soitisperhapsunsurprisingthatitalsohasthemostdevelopedindooragricultureindustryofanyglobally.Japanalonehadmoreplantfactoriesby2010thantheUnitedStateshastoday.Theworld’s�irstplantfactorywasestablishedinJapanin1983²,andtherearenowapproximately450acrosstheregion.

Themajority–justover40%-ofAsia’splantfactoriesareinJapan;China,SouthKoreaandTaiwanalsohavesubstantialplantfactoryindustries.Despite70%+pagrowthinthenumberofTaiwaneseandJapaneseplantfactoriessince2009,thereisstillplentyofscopeforindustrydevelopmentasitissmallincomparisontotheoverallvegetablemarket.EveninJapan,theindustryprovideslessthan0.6%oftotalvegetableproduction³,andonly18%ofconsumersareawareofplantfactoriesandhavepurchasedvegetablesfromthem⁴.

ThechangingexpectationsofAsia’sconsumersaretheprimarydriverofAsia’sindooragricultureindustry.Risingpollution,mediacoverageoffoodscandalsandanincreasingdistasteforexcessivepesticideusehaveledAsia’sconsumerstodemand“cleanfood”,typicallyde�inedasbeingpesticidefreeandfromreputablesources.Thesetrendsfavourindoorgrowerswhosevegetablesaretypicallygrownwithoutpesticidesandinsemi-cleanroomconditions.

Insomecountries,theindustryhasalsobene�itedfromsupportivegovernmentpoliciesandsubsidies.InJapan,morethanhalfofplantfactoriesreceivedeitheraloan(20%)orasubsidyandaloan(35%)toestablishoperations⁵.Supportingindooragricultureisawayofincorporatinglow-environmentalimpactfarmingintoAsia’srapidlyexpandingcities.

WeanticipatethatwewillseebettereconomicsandmoreinternationalexpansionfromAsia’splantfactoriesoverthenextfewyears,drivenbyrapidtechnologydevelopmentespeciallyinlightinganddatausage.Indooragricultureisatanexcitingpointinitsdevelopment,withtechnologyadvanceschangingtheeconomicsoftheindustry,andenablingnewbusinessmodels,atarapidclip.

2 WWW.INDOOR.AG

1Euromonitor�igure,basedonvolumefor20142“PlantFactory;AnIndoorVerticalFarmingSystemforEf�icientQualityFoodProduction”,Kozai,Niu&Takagaki,October20153Calculatedbasedon¥13bninplantfactoryrevenuefor2015perYanoResearchInstituteLtd,andtotalvegetablemarketsizeof¥2tnfor2011perMinistryofAgriculture,ForestryandFisheries4MitsubishiUFJResearch&Consulting2013ConsumerSurvey5MinistryofAgriculture,ForestryandFisheries(MAFF)�igures,March2014


3WWW.INDOOR.AG

TABLE OF CONTENTS

Executive Summary 2

A Introduction 5

Chart One: Asia’s Indoor Agriculture Industry by Structure 6

B State of the Industry 7

Chart Two: Geographic Spread of Asia’s Plant Factories 7

Chart Three: Number of Japanese & Taiwanese Plant Factories 7

Chart Four: Japan’s Plant Factories 8

Chart Five: China’s Plant Factories 8

Chart Six: Taiwan’s Plant Factories 9

Chart Seven: South Korea’s Plant Factories 9

Chart Eight: Plant Factories in Other Parts of Asia 10

C What’s Driving Asia’s Indoor Agriculture Growth 12

Chart Nine: Food, Beverages & Tobacco: Market Demand Growth (% Change pa) 13

Table Ten: Asian Government Support for the Indoor Agriculture Industry 16

D Plant Factory Technologies 17

Chart Eleven: Plant Factory Components 17

1 Form Factors and Growing Systems 17

2 Environmental Control Unit 18

3 Nutrient Supply & Control 18

4 Air Conditioning 18

5 CO2 Supply Unit 19

6 Lighting 19

Chart Twelve: LED Lighting Price Falls 20

E What Comes Next 21

Case Study: Exporting Plant Factory Technology 22

F The Future of Asia’s Indoor Agriculture Industry 23

Appendix: Japan’s Artificial Light Plant Factories 25


4 WWW.INDOOR.AG


5WWW.INDOOR.AG

A INTRODUCTION

Asiaconsumes75%ofallvegetablesglobally⁶,andinextraordinaryvariety,fromtheChinesecabbageandradishthatformthebasisofKoreanstaplekimchitomedicinalJapanesespecialtyleafygreeniceplant.Itsconsumersarechangingtheirfoodpreferencesandsupplychainsareadjustingtomeettheirneeds.Asaconsequence,itsagriculturallandscapeisshifting,enablingtheriseoftechnology-basedfarmingapproaches,suchas,indooragriculture.

Indooragricultureisnotanewpractice,itsrootsgobacktoRomantimes,butithasundergonearevivalinthepast�iveyearsasenablingtechnologiesbecomemoreavailable,moresophisticatedandcheaper.Wereferyoutoourearlierwhitepaper–“IndoorCropProduction;FeedingtheFuture”ofMarch2015⁷–forabriefhistoryoftheindustry.

ThispaperisintendedasanintroductiontotheindooragriculturesectorinAsia;itprovidesanoverviewofthecurrentstatus,technologiesandfutureprospectsforindooragriculture.Itsauthorsareactiveintheindustry,butdonotconsiderthemselvesexpertsbyanymeans.Weareboundnotbycontractualarrangements,butbyamutualinterestinseeingathrivingindooragricultureindustryasacomponentofastronger,healthierglobalfoodsupplychain.Bytheverynatureoftheexercise,oursurveywillomitmanynoteworthyprojectsandplayers.

Forthepurposesofthispaper,wede�ineindooragricultureasgrowingvegetablesincontrolledenvironments,suchaswarehouses,containersandpurpose-builtgrowingchambers,usinghydroponicsystems.Thisde�initioncoversabroadrangeofindoorfarms,frombasictabletopsystemsinone’sapartmentthroughlargescaleautomatedcommercialoperations,asisshownintableoneoverpage.

WithinAsia,themoresophisticatedoftheseindoorfarmsusesubstantialroboticsandautomationtocontroloperations,andaregenerallyreferredtoasplantfactories,butaresometimescalledplantfactorieswitharti�iciallight(PFAL),verticalfarms,andcontrolledenvironmentagriculture(CEA).Ourreportfocusesoncommercialplantfactories,whosemajorcharacteristicsare:

Ÿ ControlledEnvironment.Growroomsaretypicallycontrolledenvironments,suchasa�loorofanof�iceblock,withsomebeingoperatedinsemiorcompletelycleanroomconditions.Thisshieldstheplantsfromtheoutsideworld,soallowingbettercontroloverplantgrowthandexcludingmostpests.

Ÿ Arti�icialLight.Plantfactoriesmostlyrelyonarti�iciallightforplantgrowth,andthistypicallytakestheformofeithersodiumor–increasingly–LEDlights.

Ÿ ResourceUsage.Plantfactoriesuseafractionofthewaterrequiredintheopen�ield,insomecasesaslittleas1%ofthatusedoutdoors.Manyeschewpesticides,andsomearecerti�iedasorganic.

Ÿ UseofAutomation&Robotics.Withsophisticateddataandassociatedanalyticsbecomingincreasinglyavailable,plantfactoriesrelyonanexpandingrangeoftechnologiestominimizeresource(energy,water)usageandoptimizecropyields.

6Euromonitor�igure,basedonvolumefor20147Thispapercanbedownloadedathttps://indoor.ag/whitepaper


6 WWW.INDOOR.AG

CHART ONE: ASIA’S INDOOR AGRICULTURE INDUSTRY BY STRUCTURE

Source:Miscellaneouspublicsources,greenhousedatafromCuestaRobleConsulting,NewbeanCapitalanalysis

HYDROPONICGREENHOUSES

Likesoil-basedgreenhouses,thesegreenhousesgrowcropsinasinglelayer.Transparentroofsareemployedtoutilizenaturalsunlight,augmentedwithsupplementallightingduringdarkdaysandoff-peakgrowingseasons.

Ourestimateisatleast500,coveringatleast54kha/134kacresbasedonCuestaRobleConsultingdata

IwakiOnahamaVeg.Farm,KagomeCo.Ltd,LeGaga

PLANTFACTORIES

Industrial,commercialorretailspaceisconstructedorretro�ittedwithhydroponic,aquaponicoraeroponicequipmentandcropsaregrownverticallytoachieveeconomiesofscale.Arti�iciallightingsystemsareusedatalltimes.

450plantfactories,withanestimated518bytheendof2016

JingpengPlantFactory,KiMiDoRiCorporation,Mirai,RefreshHamyang,SCATIL,Spread,Vegetechs

CONTAINERFARMS

Standardized,self-containedgrowingunitsthatemployverticalfarmingandarti�iciallighting.Incontrasttocustom-designedwarehouses,containerfarmsstriveforstandardization.

3commercial,likely4-5othersinprocessofcommercializing

AlescaLifeTechnologies,Daiwa’sagri-cube,FreightFarms

IN HOMESYSTEMS

Systemstargetedatconsumersforsmallscaleinhomegrowth,whetherasfridgesinkitchensorasstandaloneunitselsewhereinthehome.

Atleast7-8offeringsomeformofin-homesolution

HulyingEcological,iGrowths,Paci�icConstructionCo

DESCRIPTION

COMPANYEXAMPLES

ESTIMATEDNO. OF COSIN ASIANMARKET

WhenwerefertoAsia,weincludethefollowingcountries:China,HongKong,Japan,Mongolia,Singapore,SouthKorea,Taiwan,Vietnam.Wehaveselectedthesecountriesastheyhavecommercialplantfactories,andwediscussChina,JapanandTaiwanmostastheyhavethelargestindooragricultureindustries.


7WWW.INDOOR.AG

GeographicSpreadThemajority–justover40%-ofAsia’splantfactoriesareinJapan;wehaveincludedalistofthearti�iciallightandcombinedarti�icialandsunlightplantfactoriesinanappendixforreference.ChinaandTaiwanalsohavesubstantialplantfactoryindustries.

IndustryGrowthDespite70%+pagrowthinthenumberofTaiwaneseandJapaneseplantfactoriessince2009,thereisstillplentyofscopeforindustrydevelopmentastheindustryissmallincomparisontotheoverallvegetablemarket.EveninJapan,theindustryprovideslessthan0.6%oftotalvegetableproduction⁹,andonly18%ofconsumersareawareofplantfactoriesandhavepurchasedvegetablesfromthem¹⁰.

CropDiversityAsisthecaseforplantfactoriesglobally,lettuceisthelargestcroprepresentingjustunderhalfofthecropsproducedbynumber¹¹.Otherleafygreensandherbsarealsopopular,at14%and17%ofcropsproducedbynumberrespectively¹¹.Otherwise,Asiahasagreaterrangeofcropsthanisseenelsewhereintheworld,forexample,ithascommercialproductionofspecialtycropssuchasberries.

B STATE OF THE INDUSTRY

Asiahaslongstandingandwellestablishedgreenhouseand�ieldagricultureindustries,soitisperhapsunsurprisingthatitalsohasthemostdevelopedindooragricultureindustryofanyglobally.Japanalonehadmoreplantfactoriesby2010thantheUnitedStateshastoday.Theworld’s�irstplantfactorywasestablishedinJapanin1983⁸,andtherearenowapproximately450inoperationacrosstheregion,asisshowninthemapsoverpage.Theindustry’smajorcharacteristicsare:

8“PlantFactory;AnIndoorVerticalFarmingSystemforEf�icientQualityFoodProduction”,Kozai,Niu&Takagaki,October20159Calculatedbasedon¥13bninplantfactoryrevenuefor2015perYanoResearchInstituteLtd,andtotalvegetablemarketsizeof¥2tnfor2011perMinistryofAgriculture,ForestryandFisheries10MitsubishiUFJResearch&Consulting2013ConsumerSurvey11Calculatedbytakingcropsproducedbyeachoftheplantfactorieswitharti�iciallightandplantfactorieswithcombinedarti�iciallightandsunlightinJapan,withdatafromJapanGreenhouseHorticultureAssociation

South Korea, 7%

Singapore, 5%Hong Kong, 5%Vietnam, 0.1%Mongolia

Taiwan, 25%

Japan, 41%

China, 25%

Sources:JapanPlantFactoryAssociation,Dr.WeiFang,Dr.ChanghooChun,Dr.QingYang,SingaporeFarming/NewbeanCapitalanalysis

CHART TWO: GEOGRAPHIC SPREAD OF ASIA’SPLANT FACTORIES

CHART THREE: NUMBER OF JAPANESE ANDTAIWANESE PLANT FACTORIES

Source:JapanPlantFactoryAssociation+PIDA,2015/12

250

200

150

100

50

0

614

4660

7490

112

140

3449

64

106

125

165

185

210

2009 2010 2011 2012 2013 2014 2015(E) 2016(F)

JapanTaiwan


8 WWW.INDOOR.AG

CHART FOUR: JAPAN’S PLANT FACTORIES

CHART FIVE: CHINA’S PLANT FACTORIES

Source:JapanGreenhouseHorticultureAssociation,2013

Chubu 1

22% of plant factories in Japan

Kanto*2

16% of plant factories in Japan* Tokyo included

Tohoku3


Kansai4

11% of plant factories in Japan22%

11%

11%

Chugoku5


10%

Kyusu6


10%

Hokkaido7


9%

Shikoku8


7%

Okinawa9


4%

16%

Source:Prof.&Dr.QichangYang,showsonlyplantfactorieswitharti�iciallight

Beijing 1

32% of plant factories in China

Hong Kong2


Guangdong3


Rest of China4


32%

26%

21%

21%


9WWW.INDOOR.AG

CHART SIX: TAIWAN’S PLANT FACTORIES

CHART SEVEN: SOUTH KOREA’S PLANT FACTORIES

Source:PIDA,2015

Taipei & New Taipei 1

38% of plant factories in Taiwan

Taichung, Changhua, Nantou& Yunlin2


Taoyuan3


Chiayi, Tainan, Kaohsiung &Pingtung4


38%

18%

15%

15%

Hsinchu5


9%

Rest of Taiwan6


5%

Source:Dr.ChanghooChun

G yeonggi1

50% of plant factories in South Korea

Seoul2


South Gyeongsang3


North Gyeongsang4


50%

15%

15%

10%

Gwangju5


5%

South Jeolla6


5%


10 WWW.INDOOR.AG

CHART EIGHT: PLANT FACTORIES IN OTHER PARTS OF ASIA

Source:NewsReports,NewbeanCapital/SingaporeFarmingAnalysis

Singapore1

There are 5 PFALs in Singapore

Mongolia2

There are 2 PFALs in Mongolia

Vietnam3

There is 1 PFAL in Vietnam

5

2

1


11WWW.INDOOR.AG


C WHAT’S DRIVING ASIA’S INDOOR AGRICULTURE GROWTH

ThechangingexpectationsandbehaviourpatternsofAsia’sconsumerswithregardtofoodconsumptionaretheprimarydriverofAsia’sindooragricultureindustry.Insomecountries,theindustryhasalsobene�itedfromsupportivegovernmentpoliciesandsubsidies.

ChangingConsumerNeeds

Risingpollution,mediacoverageoffoodscandalsandanincreasingdistasteforexcessivepesticideusehaveledAsia’sconsumerstodemand“cleanfood”,typicallyde�inedasbeingpesticidefreeandfromreputablesources.Recurrentfoodscandals–frommelamineinbabyfoodtotaintedmeatservedatfastfoodrestaurantKFC–haveledChineseconsumersinparticulartoseekinformationonthesourceandsafetyoftheirfood.Forexample,popularventurecapital-backedfooddeliveryappEle.meremoved30%¹²ofrestaurantsfromitsappinHangzhoualonefollowingmediacoverageofpoorhygienestandardsinsomekitchens.

Environmentalfactorsalsoplayapart,whetherintheformofconcernsoverradiationexposureinJapanfollowingtheTohokuearthquake,tsunamiandnucleardisasterorsmoginChina’smajorurbancentres,suchasBeijing,wheretheairpollutionindexwas20¹³timeswhattheWorldHealthOrganizationconsiderstobesafeattheendofNovember2015.ShigeharuShimamura,theerstwhileCEOofoneofJapan’sbetterknownplantfactorycompanies–Mirai–wasinspiredtostartthe�irmbyawishtohelpthecountryrecoverfrom2011’snaturaldisasters.

Thesametrendisdrivingrenewedenthusiasmforhobbygrowing,whetherintheformofsmallgardenplotsorthein-househydroponicandaquaponicssystems.Naturally,aparticularconcernisyounginfants’diets,withoneChineseseedsellerreportingthatfullyhalfofitscustomersaremothersgrowingvegetablesfortheiryoungchildren¹⁴.

Atthesametime,Asia’sconsumersarechangingtheirdiets,seekingmoredairy,meatandprocessedfoods,thelatteroftenbeingvegetable-based.Indoorfarmsareplayingapartinsatisfyingthisdemand,forexample,oneTaiwanesecompanyhasdevelopedvalueaddedproducts,suchas,eggrolls,breadandicecreambasedonitsplantfactory.

Combined,thesetrendsfavourindoorgrowerswhosevegetablesaretypicallygrownwithoutpesticidesandinatleastsemi-cleanroomconditions.Moreover,indoorgrowersaremoreeasilyabletoidentifythesourceoftheirvegetables,ratherthantherebeingfromavarietyofunnamedsourcesandalongsupplychain,portionsofwhichareunrefrigerated.

SupplyChainRestructuring

BasedondatafromtheEconomistIntelligenceUnit,Asiaisthefastestgrowingregionforfood&beverageproducts.Justastraditionalwetmarketscededgroundtosupermarketsoverthepastfewdecades,nowsupermarketsarebeingchallengedbyonlinegroceryandfooddeliveryservices.Marketresearch�irmNielsenfoundthatmorethanathird(37%)ofAsia-Paci�icrespondents,andnearlyhalfofChineserespondents(46%),saytheyuseanonlinegroceryorderinganddeliveryservice,wellaheadofglobalaverages¹⁵.

12 WWW.INDOOR.AG

12“FoodScandals”,ShanghaiDaily,December31,201513“Beijingchokesonoff-the-chartsairpollutionasthicksmogsettlesovernorthernChina”,AngelaFritz,WashingtonPost,November30,201514“UrbanFarmingaGrowingTrendinChina”,SouthChinaMorningPost,August19,201215“TheFutureofGrocery:E-Commerce,DigitalTechnologyandChangingShopperPreferencesAroundtheWorld”,Nielsen,April29,2015


13WWW.INDOOR.AG

CHART NINE: FOOD, BEVERAGES & TOBACCO: MARKET DEMAND GROWTH(% CHANGE PA)

-1

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015 2016 2017 2018

China Hong Kong Japan Singapore South Korea Taiwan Vietnam

Thesechangesbene�itindooragriculture,whichisabletosupplementtraditionalagriculturebyofferingaconsistentyear-roundsupplyoffreshlocallygrownvegetables,akeyfactorforincreasinglypopularorganicvegetablesandinoffseasonswhenvegetablesarehardtosource.Forinstance,Taiwan’sfarmersgrowaround130¹⁶typesofvegetables,butthecountrystillimports70%¹⁷ofitsorganicfoodandbeverages.

SupportiveGovernmentPolicies

Arguably,Asia’sgovernmentshavebeenthemostsupportiveofanygloballytowardstheindooragricultureindustry.Asisshownintableten,thissupportrangesfromsubsidiestonationalpolicyinitiatives.InJapan,morethanhalfofplantfactoriesreceivedeitheraloan(20%)orasubsidyandaloan(35%)toestablishoperations¹⁸.

Governmentsupportissupplementedbytheformationoftradeassociationsthatcombinethetalentsofprivate�irmsandacademicinstitutions.OneexampleistheTaiwanPlantFactoryIndustryDevelopmentAssociation,formedbytwentybusinessesandacademicresearchinstitutions,includingtheIndustrialTechnicalResearchInstitute,thenonpro�itresearchinstitutethatfamouslyplayedaroleinkickstartingTaiwan’sworld-leadingsemiconductorindustry.Theregionisalsohometoleadingresearchuniversitiesinthespace,suchasChibaUniversity.

16“PostharvestLossesofFruitandVegetablesinAsia”,FoodandFertilizerTechnologyCentrefortheAsianandPaci�icRegion17“Agri-FoodPast,PresentandFutureReport–Taiwan”,GovernmentofCanada,June201118MinistryofAgriculture,ForestryandFisheries(MAFF)�igures,March2014

Source:EconomistIntelligenceUnit,�iguresareforecastsfrom2014onwards


14 WWW.INDOOR.AG


15WWW.INDOOR.AG


Inourview,thedrivingforcesforthissupportareeconomicdevelopmentandfoodsecurity.

Foodsecurityisespeciallyimportantincountriesthatareexperiencingdecliningfoodself-suf�iciencyrates.Japan,forexample,hasseenitsfoodself-suf�iciencyratio–theproportionofconsumptionthatisgrowninthecountry–fallfromaround80%in1960toaround40%today¹⁹.Theissueisbecomingmorepressingastheaverageageoffarmersrises,farmlandisabandonedwhetherowingtopollution,soilerosionorforconversiontootheruses,andwaterbecomesscarcer.Supportingindooragricultureisawayofincorporatinglow-environmentalimpactfarmingintoAsia’srapidlyexpandingcities.

Asecondarydriveriseconomicdevelopment,especiallywheretheredeploymentofexistingtechnologiesintotheindooragricultureindustrycanleadtohigherequipmentandtechnologyexports.Forinstance,JapanesemajorFujitsu’sAizuwakamatsuAkisaiPlantFactoryusesarepurposedsemiconductorfactoryinfrastructurecombinedwiththecompany’sexpertiseinenergyconservation,environmentaltechnologyandsemiconductormanufacturing²⁰.TechnologyexporthasbeentheengineofseveralwavesofeconomicgrowthinAsia,withearlierexamplesbeingpetrochemicalsandsemiconductors,soit’slogicalthattechnology-basedagricultureshouldnowbeafocus.

16 WWW.INDOOR.AG

19“FoodSelf-Suf�iciencyandInternationalTrade:AFalseDichotomy?”,FoodandAgricultureOrganizationoftheUnitedNations,March201520“IntroductiontoFujitsu'sFoodandAgricultureCloudAkisai”,FujitsuLtd,July24,2014

TABLE TEN: ASIAN GOVERNMENT SUPPORT FOR THE INDOOR AGRICULTUREINDUSTRY

COUNTRY

China

Japan

South Korea

COMMENTARY

In the 11th Five-Year Plan for National Economics and Social Development, the government stresses the importance of Green and Controlled Environment Agriculture. There are many research projects underway e.g. the National High Science & Technology Project on plant factory production technology, combines 15 universities, institutes and companies and is supported by the Ministry of Science and Technology of China.

MAFF & MITI began the 5 year "Plant factory with artificial light and/or solar light" project in 2009 with ¥15bn budget. Offers 50% subsidy for commercial plant factory construction. Also offers subsidies for basic research, demonstration, training and PR.

In 2009, the national policy of "Low carbon, green growth campaign" was adopted, and MKE began series of research and policy support projects, aimed at technology export. Government announced a "Plan for promotion of agri-food and ICT convergence" in 2013. Applies ICT tech to agricultural products.

Sources:Newsreports,discussionswithindustryparticipantsNewbeanCapital/SingaporeFarminganalysis


17WWW.INDOOR.AG

21PerDr.WeiFang

D PLANT FACTORY TECHNOLOGIES

Thefollowingisanoverviewofthecomponentsofplantfactories,thebasisofwhichistheclassi�icationdelineatedbyleadingplantfactoryresearcherDr.ToyokiKozai.Welookbrie�lyatthepurposeandstatusofeachcomponent,andattheopportunitiesfordevelopmentineach.

CHART ELEVEN: PLANT FACTORY COMPONENTS

1. FORM FACTORS AND GROWING SYSTEMS

Plantfactoriesarehousedincontrolledenvironments,andthesearegenerallyinsulatedandisolatedfromtheoutsideworldviaairlocksorbyoperatinginentirelyclean-roomconditions.Theyareinavarietyofsettings,frompurposebuiltwarehousestorepurposedsemiconductorfactories.Forinstance,over90%ofTaiwan’splantfactoriesarehousedinof�icebuildings²¹.


18 WWW.INDOOR.AG

Growingsystemscompriseaseriesofupto20verticallayersofgrowrackswithtroughsthatcontainthenutrient-richwaterinwhichplantrootsgrow,andeachlayerofwhichincorporateslighting.Historically,growershavemostlychosentobuildtheirowngrowingsystems–usingeverythingfrombasicPVCpipestoprofessionallyengineeredrackingsystems–butaplethoraof�irmsnowofferturnkeysolutions.

Opportunities:Withnumeroussystemsnowcommercialized–fromplayersasvariedasmajorssuchasPanasonicandFujitsuthroughtoone-personstartups–naturalopportunitiesareinimprovingtheef�icienciesofthesystems,orincreatingadd-onsolutionsandintegratedproducts,suchaswhite-labeledorganicnutrientsolutions.Addingautomationandroboticstosystemsisalsoapromisingresearchavenue,asthisoffersthepotentialtoreducethelabourcoststhatgenerallymakeuparoundaquarterofplantfactoryoperatingcosts.

2. ENVIRONMENTAL CONTROL UNIT

Environmentalcontrolunitsmonitor,andsometimesadjust,arangeofindoorfarmfactors,forinstance,pH,nutrientandhumiditylevels.CompaniessuchasArgusControls,AutogrowandPrivaofferplentifulproducts,fromthesimplestpHmonitorstosophisticatedsystemsthattrackworkerproductivity.Severalhavecloudbasedoptionsthatallowuserstoremotelyaccessandcontroltheirfarms.Thankstotheadventofbigdata–vastdatasetsthatcanbeanalyzedtoidentifypatterns,trends,andassociations–controlsystemsareoneofthemostattractiveareasofindoorfarmsforfurtherdevelopmentasmarketcommentatorsanticipatebettercropyieldsfromtheapplicationofresultsfrombigdataanalytics.

Opportunities:Theexplosionofcheapsensorsandanalyticplatformsoverthepastfewyearshasopenedthepossibilityofcreatingabetterunderstandingofplantbehavior,onewhichislikelytobecapturedbybothexistingplayersandstartupsalike.Wediscussedthisopportunityinmoredetailinanearlierwhitepaper;“RoboticsandAutomationinIndoorAgriculture”ofOctober2015⁷.

3. NUTRIENT SUPPLY & CONTROL

Inhydroponicsystems,plants’nutrientneedsaresuppliedthroughthesolutioninwhichrootsrest,anddifferaccordingtoplanttypeandlifestage.Somegrowersusecommerciallyavailablenutrientmixes,whileotherschoosetocreatetheirowncustommixes,andviewtheseaspartoftheiruniqueapproachtogrowing.Mostalsousedosingcontrolsystemsthatmonitorandadministernutrientstothefarm’srecirculatingwatersystem.Suchsystemsareofferedbyacombinationoflongstandinggreenhousesuppliers,suchasDosatronInternational,andnewermarketentrants.

Opportunities:Manygrowerswouldliketobetterverifytheplantgrowthand�lavourclaimsmadebycommercialnutrientsuppliers,andtobetterunderstandtheimpactofmicrobiomesinsoil.Naturally,smallergrowersarealwaysonthelookoutforcheaper,simplersystemstouseintheirfarmsinaddition.

4. AIR CONDITIONING

Creatingoptimaltemperatureandhumidityconditionsisvitaltoplanthealth,sogrowersdevoteagooddealofattentiontoselectingairconditioningequipment.Alargerangeofoptionsarecommerciallyavailable,andthegrower’sselectionisgenerallydeterminedbyacombinationofinitialcapitalcost,unitcapacityandoperatingcosts,asairconditioningtypicallycomprises20-30%ofelectricitycosts.Therearesubstantialeconomiesofscaleinairconditioning,suchthatlargerfarmshavelowercapitalandoperatingcostspersquaremetreofplantedspace.


19WWW.INDOOR.AG

22“ResearchReport:LEDLighting”,MartinJackson,WoodsideCapitalPartnersInternational,2012

Opportunities:Growersconsistentlyseekairconditioningsystemsthatintegratewellwithfarmcontrolsystems,andarecheaperandmoreef�icientthanthosecurrentlyavailable.Thisisespeciallythecaseforsmallerfarms,whichdonotcurrentlyhaveaccesstolarger,moreef�icientoptions.

5. CO2 SUPPLY UNIT

CarbondioxideorCO2suppliesessentialelementstoplants.It’scommontoenrichtheCO2availableinplantfactoriesaboveambientlevelsasstudiesasfarbackasthemid-1980shaveestablishedacorrelationwithbetteryields-especiallywhenusedatcertainplantlifestages-andwithmoreef�icientplantwateruse.CO2isgenerallypipeddirectlyintothefacilitytoreachtherequiredlevel,thoughventilationsystemsandlocalregulationsmayprecludesomefarmsreachingthelevelthat’stheoreticallyoptimalfortheplants.

Opportunities:Thoughnottheareaofgreatestpromiseamongthoselistedhere,cheapermethodsofsupplyingandcontrollingcarbondioxideinplantfactoriesarealwayswelcome,asisbetterunderstandingoftheinterrelationshipbetweencropyieldandCO2levels.

6. LIGHTING

Lightingdesignisavitalcomponentforplantfactories,asitprovidestheonlysourceofilluminationforplantgrowthinaclosedsystem.Itisalsoanimportant�inancialdecisionforthegrower,typicallycomprisingaroundhalfofthebuildcostofafarmwhenLEDsareused.SomegrowersrunLEDsasmuchas18hoursperday,representingalargeportionofelectricityspend,oftenintheregionof70-80%.Thoughsodiumlightinghasbeenamainstayofthehorticultureindustry,itisrapidlycedinggroundtoLEDlighting,whichhasthebene�itsoflowerheatandbettergrowercontroloveritsbehavior.LargefallsinLEDpriceshavebeenaccompaniedbyef�iciencyimprovements,andtherearemyriadoptionsforgrowers,fromturnkeysolutionsfromleaderssuchasHeliospectra,Illumitex,LumigrowandPhilipsLighting,throughtocustommanufacturedsolutionsfromcompaniessuchasHungryPlanetTechnologiesoftheUSorNuetechofSingapore.Thesectorhasseenrapidinnovationoverthepastdecade,asbothacademicandcommercialunderstandingofthewaythatplantbiologyandlightinteractbecomemoresophisticated.Forinstance,oneEuropeancompanyhasdeveloped‘lightrecipes’thatareintendedtodelivertheoptimallightspectrumrequiredbyaplantthroughitslifecyclewithoutgrowerinterventionoradjustment.Theinvestmentcommunityhasplayedasubstantiveroleinspurringthisinnovation,plowingUS$800mnofventurecapitalintothelightingsectorbetween2008and2010alone²².

Opportunities:Weareonlyatthebeginningofourunderstandingofhowlightandplantbiologyinteract,andconsequentlytherearenumerousopportunitiesforcommercializationofnewapproachesanddiscoveries.Forexample,Dr.ToyokiKozaihasproposedresearchintotheuseofgreenLEDsandofupwardlighting(asopposedtotheintercroplightingthat’scommonnow)fordenselyspacedcrops⁸.


20 WWW.INDOOR.AG

CHART TWELVE: LED LIGHTING PRICE FALLS

0 2 4 6 8 10 12 14

China, -11% YOY Global, -14% YOY

Source:LEDinside,for40wEquivalentLEDStreetPrice

Jan-14

Jan-15


21WWW.INDOOR.AG

23“FeasibilityStudyofRiceGrowthinPlantFactories”,YamoriW,ZhangG,TakagakiM,MaruoT,RiceResearch:OpenAccess,February201424MinistryofAgriculture,Forestry&FisheryofJapansurveyofFebruary201425“RestinPeace:TheListofDeceasedSolarCompanies”,EricWesoff,GreentechMedia,April06,2013

E WHAT COMES NEXT

WeanticipatethatwewillseebettereconomicsandmoreinternationalexpansionfromAsia’splantfactoriesoverthenextfewyears,drivenbyrapidtechnologydevelopment.

TechnologyDevelopment

Indooragricultureisatanexcitingpointinitsdevelopment,withtechnologyadvanceschangingtheeconomicsoftheindustry,andenablingnewbusinessmodels,atarapidclip.Atpresent,developmentsinLEDlightingandin‘bigdata’usagearebeingcommercialized,bringingbetteryieldsandlowerresourceusagetoplantfactories.Examplesinclude‘lightrecipes’andtheexplorationofadjustedlightspectrumforLEDlighting.Furtheroutisanexpansionofthecropsthatcanbegrowninindoorsystems;researchrangesfromstaplecropssuchasrice,tohighlyspecializedmedicinalcrops.Forexample,a2014researchstudypublishedbyDr.ToruMaruoetalconcludedthatricecouldbegrowninplantfactories²³.

InternationalExpansion

Asisshowninthecasestudyoverpage,Asia’splantfactorycompaniesareleadersinexportingtheirtechnologiestoestablishnewfarmsinothercountries.Thisishardlyasurprisegiventhattheexport-ledeconomicgrowthmodel–wherebycompaniesfocusondevelopingandexportingtechnologies–hasbeenthedominantoneinAsiasinceatleastthe1960swhenthe‘FourTigers’(Singapore,HongKong,TaiwanandSouthKorea)mimickedJapan’searliersuccessinfocusingonexports.Todate,thisexpansionhasbeencontainedtoalimitednumberofAsianmarkets,butweanticipatethatthesecompanieswilleventuallylooktoEurope,AfricaandtheUnitedStatesasexportdestinations.

BetterEconomics

Asometimesreasonablecriticismoftheindooragricultureindustryisthatitisunpro�itable;sub-scaleoperationsandafocusoncommoditycrops,suchasheadlettuce,beingtwoculprits.OnlyaquarterofJapan’splantfactoriesarepro�itable,andhalfbreakeven²⁴.Consequently,amajorindustryfocusgoingforwardislikelytobebetterpro�itability,themostobviouswayofachievingthisbeingbyinvestinginnewertechnologies,andinexpansionofexistingoperations.Lighting,automationandcontrolsystemsarelikelytobethelargestareasoftechnicalupgrades,asgrowersseektocontaintheenergyandlabourcoststhattypicallytakeupmorethanaquarterofoperatingcostseach.Ironically,Asia’s“earlyadopter”statusmeantthatitsinstalledfarmbaseisreliantonlessef�icientsodiumlighting,ratherthantheLEDlightsaroundwhichincreasinglysophisticatedresearchandapproachesarebased.

Sadly,therearealsolikelytobeanumberofbusinessclosuresastheindustrymatures.Wenotethatahighlevelofbusinessfailuresisacharacteristicofarapidlygrowingindustry,andthesamecyclehasbeenseeninanalogousindustriessuchassolar;industryblogGreentechMediafoundthat,of200solarcompaniesbackedbyventurecapitalistsin2008,nearly30%hadgonebankruptorclosedbyApril2013²⁵.


22 WWW.INDOOR.AG

CASE STUDY: EXPORTING PLANT FACTORY TECHNOLOGY

Sources:Dr.ChanghooChun,NewsReports,SingaporeFarming/NewbeanCapitalanalysis

KOREACos have installed farms in Japan, China,

Mongolia and Qatar

JAPANFujitsu, Mirai & Panasonichave farms in Hong Kong,

Mongolia, Singapore &Vietnam

MONGOLIA

NORTHKOREA

SOUTHKOREA

JAPAN

TAIWAN

PHILIPPINES

INDONESIA

THAILAND

MALAYSIA

MYANMAR

VIETNAMCAMBODIA

LAOS

CHINA

INDIA

NEPALPAKISTAN

KAZAKHSTAN

UZBEKISTAN

TURKMENISTAN

KYRGYZTAN

TAJIKISTAN

BHUTAN

BANGLADESH

BRUNEI

SRILANKA

HONG KONG

SINGAPORE

MACAU

EASTTIMOR


23WWW.INDOOR.AG

F THE FUTURE OF ASIA’S INDOOR AGRICULTURE INDUSTRY

AsAsia’sgovernmentsgrapplewiththeenvironmentalandsocietalchangesthattheregion’sfast-pacedgrowthhavebroughtoverthepastthirtyyears,indooragricultureisawayofstretchingscarceresources–water,land,farmlabour–furtherandofensuringfoodsecurity.

Foritsmajorindustrialconglomerates,itholdstheprospectthatexport-ledgrowthcancontinueandthatagriculturecanjointhelistofindustriesinwhichitdominates.

Mostimportantly,forAsia’scitizens,itoffersthepromisethat–asweleavethefamilyfarmsofourancestorsforthecubiclefarmsofthemetropolis–alittleofthecountrysidecanjoinusinoureverydaylifeinthecity.


24 WWW.INDOOR.AG


25WWW.INDOOR.AG

APPENDIX: JAPAN’S ARTIFICIAL LIGHT PLANT FACTORIESBrand/ Plant Name Operating Body Prefectures

Demonstration plant factory The FIDEA Research Institute Corporation. Akita

Hiraniwa Factory Yokote Precisions Industry Co.,Ltd. Akita

Sanmori Factory Itagaki Kogyo Co., Ltd. Akita

Chef-no-Saien Comfort Hotel Narita Chiba

Green Flavor Goko MIRAI Co., Ltd. Chiba

Urban Farm Inc. Urban Farm Inc. Chiba

Plants Factory Inzai Co., Ltd. Chiba

Jardin Co., Ltd. Chiba

TDU Inzai Innovation Activation Center Chiba

Sankyo Frontier Chiba

Yume Farm Yanadani General Foundation Yanadani Sangyo Kaihatsu Kosha Ehime

Berg Earth Co., Ltd. Ehime

Green Tac Farm Co., Ltd. Ehime

Nippon System Group Co., Ltd. Ehime

Aqua Farm Aqua Farm Co., Ltd. Fukui

Fukui Nanzen-mae Factory Yasai Kobo Co., Ltd. Fukui

High-tech Farm Takefu Factory Agricultural Producers Cooperative Corporation High-tech Farm Fukui

Plant Factory Green land Kidaya shoten CO., Ltd. Fukui

Sanbase Ono Sanbase Ono Co., Ltd. Fukui

NAEYA, Inc. Fukui

OREC CO., LTD. Fukuoka

Kawauchi-Kogen agricultural products vegetable factory KiMiDoRi Corporation Fukushima

TS Farm Shirakawa Kewpie Corporation Fukushima

Aizufujikako CO., LTD Fukushima

JA Tohzai-Shirakawa, Fukushima

Fujitsu Group Consortium Fukushima

Fujita Engineering Fujita Engineering Co., Ltd. Gunma

Main Factory SEIDEN KOGYO Co., Ltd. Gunma

R.S Farm TAISEI Yasai Kobo Co., Ltd. Gunma

Chudenko Chudenko Corporation Hiroshima

Restaurant Furec Co., Ltd. Hiroshima

Chugoku Kogyo Co., Ltd. Hiroshima

Cosmo Farm Iwamizawa Social Welfare Corporation Cupid-Fair Hokkaido

Cosmo Sun Farm Pasio Social Welfare Corporation Cupid-Fair Hokkaido

Okhotsk Factory KINJIRUSHI Co., Ltd. Hokkaido

Plant Factory Tsuchiya Dairy Equipment Mfg. Co. Hokkaido

Social Welfare Corporation HABATAKI Social Welfare Corporation HABATAKI Hokkaido

NPO Corporation SARARA SOBETSU Hokkaido

Hanshin Yasai Plantation Hanshin Electric Railway Co., Ltd. Hyogo

Kobe Nunobiki Herb Gardens Kobe Resort Service Co., Ltd. Hyogo

Meguminosato Meguminosato Hyogo

Mie-ru Ecobata NTT West Japan Asset Planning CO., Ltd. Hyogo

Old Minamidani Elementary School Orix Real Estate Corporation Hyogo

Shunsai Buffet Megumi Seven Planning Co., Ltd. Hyogo

VEGESTORY KANSAI TEKKO Co., Ltd. Hyogo

Bakery & Café Maple House Maple House Co., Ltd. Ishikawa

In Restaurant Bistro Heureux Ishikawa

Main Factory Tsudagoma General Service Corporation Ishikawa


26 WWW.INDOOR.AG

Shiawase Shokusai Gottsune Social Welfare Corporation Nanyoen Ishikawa

Kanoya leaf kan Kyokumakoto Kosan Co., Ltd. Kagoshima

Bashamichi LED Saien Keystone Technology Inc. Kanagawa

Gakunan Kenko Yokohama Construction Association Kanagawa

Shin-Yokohama LED Saien Keystone Technology Inc. Kanagawa

Torihama Green Farm T&N Aguri Co., Ltd. Kanagawa

MARUAKI FOODS Co., Ltd. Kanagawa

Colowide MD Co., Ltd. Kanagawa

Tohto Rentall Co., Ltd. Kochi

Aso Kenko Noen House Agricultural Producers Cooperative Corporation Kumamoto

Hikarikko Kobo Create Hikari Inc. Kumamoto

Nishigoshi Factory Nakagawa Sangyo Co., Ltd. Kumamoto

Kameoka plant Spread Co., Ltd. Kyoto

Shinsei Industry Shinsei Industry Co., Ltd. Kyoto

General Production Co., Ltd. Kyoto

Plant factory Kobashidenki Co., Ltd. Mie

Onagawa Factory Sato Kogyo Co, Ltd. Miyagi

Rokuchome-Nouen Apple Farm Co., Ltd. Miyagi

Secom High Plant Secom Industries Co., Ltd. Miyagi

Tagajo Factory Mirai Co., Ltd. Miyagi

[Bellvia] in front of JR Chino Station Suwasai Co., Ltd. Nagano

[Suwaplaza] in front of Kamisuwa station Yukina Co., Ltd. Nagano

Azumino Misato High-tech Farm Oonota Co., Ltd. Nagano

Greenleaf Shinshu Co., Ltd. Timely Co., Ltd. Nagano

Mama Vege Farm ABN Co., Ltd. Nagano

Vegetale NICHIWA KOGYO Co., Ltd. Nagano

Agri-wave Co., Ltd. Nagano

Hasami Care home Social Welfare Corporation Nagasaki

Huis Ten Bosch Huis Ten Bosch Co., Ltd. Nagasaki

Restaurant [Margherita] Shoya Foodsystem Co., Ltd. Nagasaki

Kintetsu Farm Hanayoshino Kintetsu Corporation Nara

Mahoroba Mizukoen Narasanjo Nara Kotsu Bus Lines Co., Ltd. Nara

Ryoki Kogyo Co., Ltd. Niigata

Anzen Yasai Niigata Kojo Co., Ltd. Niigata

Matsudai High-tech Farm Inc. Niigata

Yumeyasai Ozai Farm Yumeyasai Ozai Farm Inc. Oita

[Hinatabokko] Ajisai-Kosha Showa Co., Ltd. Okayama

Kyozan Solar Green Park Ryobi Holdings Okayama

Vege factory Tusnetsugu Kogyo Co., Ltd. Okayama

Yasai-Kura Y&S Distributor Co., Ltd. Okayama

Yume Farm Ukan Co., Ltd. Yume Farm Ukan Co., Ltd. Okayama

Aguri Industry Okinawa-keisoku Co., Ltd. Okinawa

Gushiken vegetable factory Gushiken Co., Ltd. Okinawa

Itoman plant factory Internationally Local & Company Okinawa

Kitanakagusu Degi Farm NPO Subtropical Biomass Research Center Okinawa

Nakagusu Degi Farm NPO Subtropical Biomass Research Center Okinawa

Okinawa Murakami Nouen Okinawa Murakami Nouen Co., Ltd. Okinawa

Okinawa type vegetable factory Kamiya Sangyo Co., Ltd. Okinawa

Plant factory Project Okinawa Cellular Telephone Company Okinawa

Ryuseki Kensetsu Plant factory Ryuseki Kensetsu Co., Ltd. Okinawa

Social Support Esperer ESPERER, Inc. Okinawa


27WWW.INDOOR.AG

Yasai kobo NPO Corp Hatsuho Okinawa

Oogimi Farm Co., Ltd. Okinawa

Galleria plant factory Galleria Co., Ltd. Osaka

Green Chateau plant Factory Japan Greenfarm Co., Ltd. Osaka

Subway Yasai Lavo 2nd shop Subway Japan Inc. Osaka

VEGEE WORK FACTORY Fujiwork CO., Ltd. Osaka

Yasai Lavo Grand front Osaka branch Subway Japan Inc. Osaka

Hanshin Electric Railway Co., Ltd. Osaka

NPO Kamagasaki Shien Kiko Osaka

Miracle Green Co., Ltd. Osaka

Private Private Private

Private Private Private

Acol-ku no Suisaien Nishiken Co., Ltd. Saga

Confirm Ringer Hut Co., Ltd. Saga

Smart Agri Kasasagi Social Welfare Corporation Saga

Yasai-kobo Ansuri Takeo NPO Corp [Ryokufukai] Saga

ChiChibu Midorigaoka Farm Yasai Kobo Co., Ltd. Saitama

High-tech Hanyu Agricultural Producers Cooperative Corporation High-tech Hanyu Saitama

SHIBASAKI Co., Ltd. Saitama

Association of Bio Business Association of Bio Business Shiga

Nagahama Factory Shiga

Plant Factory in Woodypal Yogo LOHAS Yogo CO., Ltd. Shiga

Izumono-Shizuku Eiko Electric Industry Co., Ltd. Shimane

Yonago factory Minnano-Yasai Kojo Co., Ltd. Shimane

Fresh Green Fresh Green, Inc. Shizuoka

Fuji Plant Factory Kobayashi Create Co., Ltd. Shizuoka

Fujieda Office Nisshinbo Holdings Inc Shizuoka

Kakitagawa Vegetable plant factory MITSUISHI CO., Ltd. Shizuoka

NLM ECAL NLM ECAL Co., Ltd. Shizuoka

Oigawa Farm Oigawa plant Murakami Garden Co., Pte. Shizuoka

JA Zennoh Tochigi horticultural Seedling Centre JA Zennoh Tochigi Tochigi

Tonkikki FUTABA FOODS co., ltd. Tochigi

PF Factory Tokushima Nisshinbo Holdings Inc. Tokushima

Naka Vegetable Co., Ltd. Tokushima

Tokushima Seedling Inc. Tokushima

Chef-no-Noen Jack Pot Planning Inc. Tokyo

Green Mate Co., Ltd. Green Mate Co., Ltd. Tokyo

Japan Capacitor Industrial Japan Capacitor Industrial CO. LTD Tokyo

Keio Cultivation Institute Keio Corporation Tokyo

Plantptant Chef-no-Noen Tamachi Bildg Co Tokyo

Sci Tech Farm Tamagawa Academy & University Tokyo

Shimokitazawa Hospital Shimokitazawa Hospital Tokyo

Subway Yasai Lavo The first store Japan Subway Co., Ltd. Tokyo

Tokyo dream Tokyo Dream Inc. Tokyo

Umeshu-Dining Meisei Leave a Nest Co., Ltd. Tokyo

Machinaka plant factory Tottori job creation conference Tottori

Main Factory HRD Co., Ltd. Tottori

Company Owned warehouse Fukumitsu Unyu Co., Ltd. Toyama

Plant Factory Takatsuki Electric Industry Co., Ltd. Toyama

Plant Factory at Namekawa Branch Honda Construction, Inc. Toyama

Smile Leaf Spica Smile Leaf Spica Co., Ltd. Toyama


28 WWW.INDOOR.AG

Takaoka Factory F&F Co., Ltd. Toyama

Twin�Green�Factory Sankyo Tateyama, Inc. Toyama

Kensaido Co., Ltd. Toyama

Toagosei Co., Ltd. Toyama

Anzen Yasai Kojo, Inc. Anzen Yasai Kojo, Inc. Yamagata

Fresh Factory Yamagata-HOUTOKU Co., Ltd. Yamagata

Saien’s Lavo Endo Shoji Co., Ltd. Yamagata

Natural Process Factory Co., Ltd. Yamagata

Plantation Box Mizuguchi-denso Co., Ltd. Yamaguchi

Fujikasui Kogyo Co., Ltd. Yamaguchi

Ootoya Green Room OOTOYA Holdings Co., Ltd. Yamanashi

Shoun-Service Shoun-Service co., ltd. Yamanashi

UNIFARM UNITECH CO., LTD. Yamanashi

FT Yamanashi Co., Ltd Yamanashi

Ise saien

(LED Noen)

[Da Mamma]

Private Private

Source:JapanGreenhouseHorticultureAssociationdataasat2011(mostrecentavailable),translationbySingaporeFarming/NewbeanCapital

For more information and todownload a .pdf of this white paper,

please visit indoor.ag/whitepaper