Innovations in Agtech: Balancing Sustainability and Profitability to Feed the World

Over the past decade, significant investment has been poured into improving the efficiency, profitability, and sustainability of the agriculture industry. For instance, indoor farming has seen a huge influx of investment over the past few years, and accordingly, has become a popular solution for growers. AppHarvest attracted leading investors such as Martha Stewart and venture capitalists, and in September 2020 went public through a combination with special purpose acquisition company Novus Capital Corp.??

More and more businesses have followed suit to drive innovation in agriculture by creating new and efficient ways of farming to feed the world as well as meeting growing demands on environmental and social sustainability. The following three companies have stood out to me thanks to their innovative technology, purposeful mission, and rapid growth.?

BrightFarms: As the first indoor farming company to be acquired by a blue chip investor, Cox Enterprises, BrightFarms has been experiencing rapid growth, with its recently surpassed placing its products in 4,000 stores including Food Lion, Kroger, Ahold-Delhaize, Marianos, and Walmart.

Paul Lightfoot, the founder of BrightFarms, told me?how the company has focused on carbon footprints, carbon labeling and how agriculture can transition to a more regenerative model. He points out that purchasing organic food is insufficient to battle environmental damage as chemical pesticide and fertilizer use have continued to rise with the increase in organic food. Lightfoot, therefore, advocates for regenerative farming to reduce net carbon emissions and calls for a standardized definition of “regenerative” to expedite the process. He is also writing on how agriculture can reverse climate change through his?Negative Foods Newsletter

“Regenerative farming IS making a difference. If you look at the beef industry, for example, the worst climate actor in our food system. But when produced regeneratively it is good for the climate, drawing carbon from the atmosphere on a net basis.”

He also offers a word of warning, however: “Regenerative needs definition. If the meaning of “regenerative agriculture” doesn’t get standardized, there is a risk that it will get watered down (like the way we use “natural” today).”

Anuvia Plant Nutrients: As a manufacturer of sustainable bio-based fertilizers, Anuvia has pioneered a new technology that helps farmers produce more food through increased crop yield while responding to a wide range of environmental challenges.

Amy Yoder, CEO of Anuvia, told me?that the company has emphasized the equal importance of profitability and sustainability in farming. On sustainability, she explains that replacing one million acres of traditional fertilizer with Anuvia’s product is equal to removing 20,000 cars from the road in perpetuity because that Anuvia “reclaims organic materials in the last step of their lifecycle and repurposes them with no waste stream.” This proprietary technology thus allows the company “to combine the power of organic material with the extended delivery of inorganic macro-nutrients to create highly effective, environmentally friendly plant nutrition.” On profitability, Yoder realizes that crop yield is one of the primary concerns of farmers, and agtech should guarantee this basic need to drive more innovation for sustainability.?

“New entrants into the agtech industry need to ensure the products they are bringing to market are not only good for the environment, but that they also improve profitability for farmers. Fortunately, there’s plenty of research that demonstrates that sustainable farming is, on average, equally or more profitable than conventional agriculture.”

“I do think carbon markets provide a new revenue stream for agriculture and they reward operators to keep innovating, protecting the land, and driving even more technology to commercial producers.”

Gotham Greens: Operating the largest network of high-tech, climate-controlled hydroponic greenhouses in America with nine facilities across six states, Gotham Greens conserves 300 acres of land and 270 million gallons of water, as compared to conventional farming. The company has focused on offering a more sustainable means to fresh, longer-lasting produce, and adaptive reuse projects, which help revitalize urban communities by transforming real estate that is otherwise underutilized into productive agriculture that provides sustainable jobs for the surrounding community.

Viraj Puri, CEO of Gotham Greens told me?how a commitment to environmental and social sustainability sets the company apart in the quickly growing indoor farming space and helps drive growth in the long term. He introduces two overarching goals: one is to reduce plastic packaging for leafy greens and herbs by 40% by 2024, the other is to achieve a reduction of 5% in Gotham Greens’s electricity use intensity by 2024 and reduce its Scope 1 and 2 greenhouse gas emission intensity by 5% by the end of 2024. Puri further points out the mutually beneficial strategic choice of expanding into California and the company’s aspiration in the coming years.?

“Each new greenhouse project brings us closer toward achieving our sustainability goals - whether it’s launching new sustainable packaging solutions or reducing our dependence on vital natural resources… By putting down roots in California, we aspire to be a part of the agricultural industry’s solution to the increasingly visible impacts of climate change.”

“We see a bright and promising future for the “greenhouse-grown” produce category. Growing produce indoors certainly has an increasing role to play in the future of sustainable food production. And while indoor farming may not represent the future of all fresh produce production, for certain types of crops, it will become more prevalent.”

With the world’s population expected to hit 10 billion by 2050, we need more innovation in agriculture and new ways of farming to feed the world - while at the same time also meeting consumers’ growing demands for sustainable production. The companies mentioned above have demonstrated the role agtech can play in driving growth and achieving sustainability.