Reflecting on the Indoor AgTech Summit
As we look back on the Indoor AgTech Summit in NYC this past spring and attend more CEA events, key takeaways continue to resonate, prompting us to contemplate the opportunities that lie ahead in an evolving landscape.
2023 has illuminated a significant impetus for the industry to bring unit economics to the forefront of the businesses. Companies have redirected focus towards facility performance and operational efficiencies, as a reaction to the cost of new capital, labor and energy. We should not be surprised however, as this is evidence of an evolving maturity and demonstrates a commitment to not just growth, but to be able to achieve efficiency and profitability. The lessons of the past guide us towards sustainable strategies.
In a past era of uncertainty, the CEA landscape showcased remarkable resilience. Companies like Little Leaf farms and Pure Green Farms are proving to be shining examples. Paul Sellew Founder and CEO presented his guiding principles for a profitable business where specialization is key, in Paul’s words “we are a farming company before we're a technology company”. Implying that a successful industry will be an ecosystem, where growers, service providers and technology companies are focussing on their core products, while supporting shared growth. In the case of a farm, the core product after all is high quality crops and consumer products, not a patented irrigation pipe. The summit served as a testament to an industry that is needed today and will be critical tomorrow to ensure food safety. The past, though behind us, reminds us of the power of perseverance.
Indoor AgTech Summit in NYC this past spring
As we contemplate the future of CEA in the U.S., it's pivotal to draw from proven strategies of the past, and from lessons learned in industries that have mastered efficiency and growth, such as Toyota with its Toyota Production System (TPS) model. Yet, the mere existence of these strategies isn't enough. Their integration into our systems, coupled with a shift in mindset, is crucial. Instead of aspiring to build full-stack technology in isolation, the U.S. CEA industry should foster greater collaboration and shared progress. Only by embracing these methods collectively, and by building a genuine network that promotes best practices, can the U.S. truly emerge as a leader in Controlled Environment Agriculture.
The real question is: Will the industry embrace these methods and the ecosystem collaborate? How can we build a support network to help operators and farmers scale with best practices and local tools?
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