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Up Up and Away!. The Economics of Vertical Farming Chirantan Banerjee, Lucie Adenäuer and Stephan Rickert. Content. Global situation Design of the Vertical Farm Facts and Figures SWOT Analysis Market Analysis Outlook. c.banerjee@ilr.uni-bonn.de.

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up up and away

Up Up and Away!

  • The Economics of Vertical Farming
  • Chirantan Banerjee, LucieAdenäuer and Stephan Rickert
content

Content

Global situation

Design of the Vertical Farm

Facts and Figures

SWOT Analysis

Market Analysis

Outlook

c.banerjee@ilr.uni-bonn.de

slide3

Global situation: where do we stand?

c.banerjee@ilr.uni-bonn.de

  • We need local food production technologies
    • 38% of all land is used for agriculture 11% arable
    • 1 billion still undernourished thereof 42% in India and China
    • In rich countries, people spend 10% of their income on food, this is 50% in case of poor countries
  • FOOD IS NOT BEING PRODUCED WHERE REQUIRED AND SUPPLY CHAIN IS NOT WORKING
  • We need technology to adapt to consumer choice
    • Striking difference between rich and poor consumer needs
    • Increasing demand for especially protein rich diets
  • THIS IS EXPECTED OF ALL COUNTRIES ON THE DEVELOPMENT BANDWAGON
slide4

Population Trends

c.banerjee@ilr.uni-bonn.de

Source: Population Division of the Department of Economic and Social Aairs of the United Nations Secretariat. World Urbanization Prospects: The 2007 Revision.

slide5

Possible Solutions

c.banerjee@ilr.uni-bonn.de

  • We need to produce 100% more food!
    • 2% increase of agricultural land expected until 2040 20% more food
    • Another 10% is expected from increased cropping intensity
    • Problem of land use for fuel

How do we reach the missing 70% ?

slide6

Design of Vertical Farms

c.banerjee@ilr.uni-bonn.de

  • Vertical farming is a system of commercial farming
  • Plants are artificially stacked vertically above each other
  • Plants, animals, fungi and other life forms are cultivated for food, fuel
  • Through Controlled Environment Agriculture
slide13

Facts and Figures

c.banerjee@ilr.uni-bonn.de

slide14

Facts and Figures

c.banerjee@ilr.uni-bonn.de

slide15

Facts and Figures

c.banerjee@ilr.uni-bonn.de

Probability distribution of costs per kg biomass

  • Cost of producing edible biomass is around 3.17 €/kg
  • Worst case: 6.32 €/kg
slide16

SWOT Analysis

c.banerjee@ilr.uni-bonn.de

slide17

Market Potential

c.banerjee@ilr.uni-bonn.de

  • Criteria:
  • Population above 5 million
  • Per Capita income above $ 20,000 p.a.

Long Term Market Potential

Short Term Market Potential

N = 47

slide18

Outlook

c.banerjee@ilr.uni-bonn.de

  • Economic research is required to ascertain:
    • The energy balance
    • The cost of production
    • Linear programming of optimal cultivation strategy for cost minimisation
    • The cost benefit analysis
    • Consumer studies
  • A comprehensive market analysis with identification of potential candidates
  • More Ideas?
slide19

http://www.ilr.uni-bonn.de/pu/publication/Publikationen/vertical_farming.pdfhttp://www.ilr.uni-bonn.de/pu/publication/Publikationen/vertical_farming.pdf

Chirantan Banerjee, Lucie AdenäuerandStephan Rickert

Institute for Food and Resource Economics,

University of Bonn, Germany

c.banerjee@ilr.uni-bonn.de

Thank You!