Netled CEO Niko Kivioja: 5 Reasons Why Grocers Need Vertical Farming Partners
Walmart recently announced a big bang in the US grocery trade landscape: its investment in vertical farming start-up Plenty. With this, the retail giant is taking a step toward making high-quality, pesticide-free produce more accessible and affordable for the consumer.
What do they know that you don’t? Why should every grocer be scouting for vertical farming partners now and not later?
- The salad and fresh herb markets are growing
Size does matter, and the size of the market for salad and leafy greens in the U.S. and Canada is approximately $15 billion and growing. And it will continue to grow with an estimated CAGR of 8.2% from 2021 to 2028.
Similar growth is expected in the spice and herb market where in North America alone, it is projected to grow at a CAGR 7.2% (2020 to 2025).
That is a lot of money available for leafy greens, herbs, and spices if you can guarantee your yield and deliveries.
But therein lies the problem.
- Food security
The COVID pandemic has shown us that the logistics involved in food transportation are extremely susceptible to disruption; perishable products in particular cannot be stored for long before the quality deteriorates to such an extent that they are no longer fit for sale.
The majority of the lettuces sold in North America are grown in California. So, if you buy a packaged lettuce in New York, it has probably already traveled 3000 miles. Any disruptions to this journey along the way only serve to weaken the quality of the product and its availability to the end customer.
In fact, over the past year, packaged leafy greens have been one of the top items missing from grocery shelves due to logistics and transportation challenges.
Vertical farming systems like Netled’s proprietary system Vera can ensure the availability of products due to their proximity to the store. A Vera system requires very little space and is significantly more efficient and reliable than traditional agricultural systems.
Vera systems produce:
- 5 times more crops per comparable growing area
- 15 times more per surface area compared to single-level high-efficiency year-round greenhouse growing.
- 100 times more crops per surface area compared to the yield for a normal single season in open-field agriculture.
Vertical farming systems also remove the risks that other forms of agriculture are susceptible to such as unpredictable weather, disease, and pests.
- Food safety
The more stages there are in the food processing and distribution, the higher the chance of some form of contamination.
Fewer human contact points, precise control over irrigation, and the growing process result in less risk of contamination.
Every year in North America, 48 million foodborne illnesses, 128,000 hospitalizations, and 3000 deaths are recorded. (CDC, 2013).
Bacteria and pathogen contamination in the production line almost always originates from the irrigation water used. Further risk of contamination comes from the washing of field-grown or greenhouse products after they are harvested.
Outdoor farming and most of the greenhouses perform triple-wash on the harvested plants in order to mitigate the contamination risk, as a post-harvest process.
Vera vertical farming systems are encapsulated in a precisely controlled environment where there is no contamination from external sources such as pests, fungi, or bacteria.
The Vera system uses 95% less fresh water for irrigation than open-field agriculture and the water it uses is captured from the plant respiration, purified, and fed back into the system ensuring no possibility of external contamination. The plants are not touched by humans during the growing process and therefore do not need to be washed after harvesting.
Harvesting and packaging can even be automated with robotics so that there is no physical contact with the plant at all.
- Labor costs
All this automation not only ensures the minimum possible amount of contamination, but it also reduces labor costs.
Vera vertical farming systems are less labor intensive in both the growing and harvesting processes. The extremely high level of automation in irrigation, plant spacing, nutrient delivery, and lighting requires less labor resources. Harvesting and packing can also be automated to a high level with the help of AI and robotics, and if the vertical farm is situated in close proximity to the store, logistic, and transportation costs are also reduced dramatically.
- Quality
Awareness and demand for healthy plant-based foods is growing. Salads are a good source of fiber, iron, calcium, potassium plus vitamins A, K, C, and E.
There are many factors that can affect the quality of the end product, not only in the processing stages of production, but also in the growing stage. Open-field growing is particularly susceptible to risk factors: extreme weather events such as torrential rain and drought, nutrient depletion and salination of the soil and the chemical fertilizers used to attempt to redress the balance, water infiltration rates, pesticides, herbicides, and chemical spraying to name a few.
Vertical farming systems operate in a precisely controlled environment where every last detail is planned, monitored, and controlled from seed to retail. There are no rainy days, no hot days, no pests or chemicals – everything is always just right
The Vera system is programmed according to the particular plant and the variables are adjusted so that it can grow to its own genetic maximum. This results in the highest possible quality with guaranteed results no matter what time of year or whatever the weather.
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In case you’d like to learn more about your potential future vertical farming partner, come and meet Netled CEO Niko Kivioja and the rest of the team at Indoor AgCon booth 1023!
Niko Kivioja will also join a panel conversation on Direct Controlled Environment Agriculture Farming in Grocery Stores, Hotels & Restaurants on Monday, Feb 28th at 4:00 pm.
TO LEARN MORE ABOUT NETLED AND ITS VERA TECHNOLOGY:
W: NETLED.FI
NETLED VIDEO RESOURCES:
Introduction to Vera vertical farm
Netled featured on Advancements TV Series aired on CNBC
Sensei Ag CEO Sonia Lo will lead the Indoor Ag-Con keynote presentation, “Improving Human Wellness One Farm At A Time,” on Monday, October 4, 2021 from 11:30 am – 12:20 pm. A headliner event at the October 4-5, 2021 edition at the Hilton Orlando, Lo’s discussion will focus on Sensei Ag’s form factor agnostic approach to building and expanding indoor farms.
Being form factor agnostic is core to Sensei Ag’s business model and growth plan. We are indoor growers – not just greenhouse growers, not just vertical farm growers. With that said, it’s not just about the types of leafy greens and other produce we will be able to grow using different form factors, but also the ability to venture into new regions of the globe, areas that were traditionally considered food deserts but through one form factor or another can now become food oases.
myself down the line. That said, after spending the majority of my career in finance and tech, I can truly say that I am the happiest growing local, nutritious food for others. I joined Sensei Ag last April for the once-in-a-lifetime opportunity to spearhead a company developing science focused on human wellness from food and agriculture systems. As CEO, I am very honored to lead an exceptionally talented team of professionals who together share one vision and that is to increase adoption of indoor agricultural production globally.
Nevertheless, the journey thus far has been incredible. I’ve never been known to take the straight and narrow path. Ask anyone about the twisted, curvy roads on Lana’i. Yet, in my mind, there’s never been a more crucial time in our world’s history to address global food insecurity, to encourage and develop new means of promoting health and wellness and to heal and nourish our planet. I look forward to the adventure that lies ahead.
On March 11, 2021 two international industry leaders, 
Indoor Ag-Con Exhibitor
Driever went on to detail how TAC has operated a 3,000 square foot greenhouse and 1,000 square foot grow room raising leafy greens for the past 10 years.
Launched in 2018, the indoor farm has approximately 6,000 square feet of space and capacity for 26,000 plants. The farm raises lettuce, kale, basil microgreens, amaranth, green and purple shiso, wasabi, cilantro and mint. Twelve full and part-time employees work at the indoor farm. They monitor the pumps, which dispense nutrients as they are needed. They transfer plants from germination to seedling stage and later to the area where plants grow to their desired size and are harvested. We have a great opportunity to explore agricultural sustainability and we’ve got a great opportunity to create jobs for people with disabilities. Arnold Farms uses no pesticides, and the founder Craig Varterian likes to call the facilities plants ‘purer than organic’. What’s Varterian’s dream for the future of Arnold Farms? He’d like to employ this kind of farming around the country, especially in ‘food deserts’ where food isn’t easily accessible. “I’d like to see people with disabilities as leaders around the country in this type of farming,” he adds. More information is available 
Founded in 1961, DDI is a dynamic, non-profit agency with more than 30 locations throughout Long Island, NY. It provides special education, vocational , day and residential programs, as well as healthcare services for more than 5,000 children and adults with autism and other developmental disabilities. The Horticulture curriculum of DDI offers greenhouse opportunities to more than 300 adults served in Adult Day Services. The greenhouse has been in operation for more than 30 years. Some of the vegetables include peppers, lettuce, tomatoes, squash, kale and various herbs to name a few. The greenhouse offers 1,500 square feet of growing space. This enables the DDI team to grow vegetables indoors during the colder weather. Vegetables grown are either sold at farmers markets or used at various site for cooking classes. More information is available 
Greens Do Good raises microgreens, basil and butterhead lettuce hydroponically in Hoboken, New Jersey. They donate 100% of their proceeds to REED Next, a nonprofit organization supporting adults with autism. This helps provide continued education, life experience, and work opportunities so that these individuals can achieve greater independence and participate meaningfully in their communities. Greens Do Good also provides these individuals the opportunity to work at our farm. Our focus is on providing local businesses with top-quality, locally grown ingredients year-round. We hand-pick and pack our produce at the height of freshness and deliver them straight to our customer’s door for peak taste and nutrition. In the future, we hope to open more farms with the goal of expanding and continuing to create sustainable funding for REED Next. More information about our work is available 
Lettuce Dream is a social enterprise engaged in hydroponic farming that exists to provide meaningful employment and job training programs for persons with cognitive or developmental disabilities so that they may enjoy the benefits of living, working and fully participating in our community. Lettuce Dream was founded in 2016 and operates a 6700 square foot hydroponic greenhouse. Lettuce Dream helps to provide workplace skill training for young adults with intellectual disabilities. The people with disabilities in Lettuce Dream’s program take part in an internship alongside volunteers from the community, staff and their college peers from Northwest Missouri State University growing 500-700 lbs of leafy greens and living basil per week. The interns in the program help with all aspects of Lettuce Dream’s business operations including- seeding, transplant, packaging, food safety recordkeeping, data entry, invoicing and customer service. After obtaining the necessary pre-vocational skills and developing their resumes through the internship program, Lettuce Dream helps the interns transition to community employment. Lettuce Dream helps the individuals in the program secure jobs and provides further on the job support through job coaching. Since their founding, Lettuce Dream has helped provide employment supports for 24 people with disabilities and has an 83% placement rate for individuals that have completed the program. More information is available
Medina Creative Produce provides vocational training for students from Medina County School Districts and adults with physical and developmental disabilities, many whom are residents of Medina Creative Housing. Workers develop skills such as cultivating, harvesting and marketing locally grown, nutrient rich Butter Bibb and Romaine lettuce. Our hydroponic greenhouse is fully handicapped accessible to accommodate the broad spectrum of individuals with disabilities that we serve. In 2011, a Ribbon Cutting Ceremony was held celebrating the opening of our hydroponic greenhouse, which supplies local restaurants, schools and area businesses with gourmet lettuce. A weekly harvest produces on average six hundred heads of lettuce and proceeds pay the workers’ wages. Our lettuce is used to support our café’s located at local hospitals. More information available 
Murdoch Developmental Center in Butner, NC is one of three state operated developmental centers, primarily serving 25 counties of the Central Region. Murdoch provides services and support to people with intellectual and developmental disabilities (IDD), complex behavioral challenges and or medical conditions whose clinical treatment needs cannot be supported in the community. Murdoch operates four specialty programs including children and adolescents programs which are available for individuals residing in all regions of the state. Our hydroponic greenhouse is a vital component of our vocational rehabilitation program. More information is available 
Peacehaven Community Farm is a sustainable farm established in 2007 and located on 89 beautiful acres of organic gardens, rolling pastures, and lush woodlands that connects people with special needs to their community – and connects their community to them! After high school graduation, there are few housing and programming options for people with intellectual and developmental disabilities. Peacehaven seeks to offer these folks in our community the choice to live in a farm setting within a community where people with and without disabilities live and work side by side. We use the term “Core Members” to describe the individuals with disabilities who live and work at Peacehaven. That term reflects their central status in our community. They are at the core of all that we do and are the best teachers of the values of community. Major expansions in our vocational and housing programs are planned for this year. In our hydroponic greenhouse we focus on raising lettuce, greens and culinary herbs. Partnerships with other organizations in our community and the Growing Opportunities collation represent a keystone practice for Peacehaven. More information is available in this 
Currently more than 85% of individuals with developmental disabilities are unemployed due to lack of transitional support, job-site training, and employment opportunities geared for success. The Trellis Center aims to fill this gap for young adults with developmental disabilities who are approaching this transition time or adults who have graduated from high school but still need a structured environment designed to match programming to individual capabilities. With a focus on agriculture, the Trellis Center provides vocational skill development, stimulating activities, and a social community of peers. More information is available
Building on the success of the indoor hydroponic operation, TAC Industries Inc. built a 3,000 square foot hydroponic greenhouse in 2010. Twelve adults with developmental disabilities regularly work there to raise lettuce, kale, cilantro and orache. The produce is served at our sister restaurant “Fresh Abilities” and is also available at the local farmer’s market. Our customers have also included both public and private local schools, restaurants and the local culinary institute. We aim to donate 40# of produce each week to 2nd Harvest Food Bank (supporting over 60 pantries in 3 counties). More information is available 
Through the use of innovative urban farming models, we provide supported employment for adults with special needs and autism. We grow greens and micro greens for local restaurants, colleges, and individuals within the community. All of our produce is non GMO and grown without the use of pesticides, herbicides, or fungicides. More information is available