The Future of Food Chains

HOWEVER, THE MARKET REMAINS IN ITS RELATIVE INFANCY FACED WITH A NUMBER OF SHORT TERM CHALLENGES, AND HAS SEEN A NUMBER OF OPERATORS START PRODUCTION AND HALT PRODUCTION OWED TO THESE ISSUES:

ENERGY

CAPITAL EXPENDITURE

WATER

Requirement for rain water harvesting or substantial pull from grid network

Significant fit out costs associated with racking and hydroponic framing

Typically account for 25% of operators total cost, recently spiked to 40%

Increased renewable energy generation – particularly on-site, with the harnessing of battery storage will greater enable production.

NON DOMESTIC ENERGY PRICES UK AVERAGE

OUTLOOK

400

Current challenges within the UK are currently holding back the scaling of vertical farming sector. However, as we look to 2040 it is likely that the market will continue to grow globally, before returning to the UK armed with new learnings and greater agility. As food supply experiences growing pressure as a result of climate risk and reduced international trade, Supermarkets will look to vertical farming to provide secure and quality produce. In the meantime small integrated vertical solutions are likely to arise in retail and restaurant environments, or small spaces surplus to requirement.

350

300

250

200

150

100

Q4 2017

Q4 2018

Q4 2019

Q4 2020

Q4 2021

Q4 2022

ELECTRICITY (NON-DOMESTIC AVERAGE)

GAS (NON-DOMESTIC AVERAGE)

Source: ONS, 2023

37

FUTURE OF FOOD CHAIN |