Episode Summary
Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show, co-founder at Fazenda Urbana, Thomas Oberlin. Fazenda Urbana is the producer of the MightyGreens brand of vegan microgreens and mushrooms. Today, Harry and Thomas talk about the origin story of Fazenda Urbana and how Thomas became involved in controlled environment agriculture. Thomas provides his thoughts on the evolution of entrepreneurship and why that spirit is so prominent in Brazillian culture. Finally, Thomas speaks to what excites him about the future of micro greens, the Mighty Greens brand and the AgTech industry as a whole.
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2025 Precision Ag Report by iGrowNews
2025 Precision Ag Report by iGrowNews
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Speaker:or click the link in the show notes. Said the best thing that happened to
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Speaker:happened much faster, right, with a lot of money in our pocket.
Speaker:Welcome to the Vertical Farming Podcast, weekly conversations with
Speaker:fascinating CEOs, Founders, and agtech visionaries.
Speaker:Join us every week as we dive deep into the world of vertical
Speaker:farming with your host, Harry Duran.
Speaker:Vertical Farming Podcast, Season 3. Welcome back. If this is your first time listening,
Speaker:you're in the right place. It's the show where we interview fascinating CEOs and
Speaker:founders of the leading vertical farming companies from around the world.
Speaker:I'm your host, Harry Duran. In case you missed last week's
Speaker:episode, Great conversation with David Cohen, CEO at Fluence.
Speaker:If you haven't listened to it, please check it out. Very engaging conversation,
Speaker:and David is incredibly smart, and I learned a lot about the history
Speaker:of LEDs and the important role David and his company
Speaker:played at the time. This week we have the pleasure of speaking with Thomas
Speaker:Oberlin. He's the co-founder of Fazenda Urbana based out of Brazil.
Speaker:Fazenda Urbana is the producer of the Mighty Greens brand of vegan
Speaker:microgreens and mushrooms, and in this episode we discuss the
Speaker:origin story of of Fazenda and how Thomas became involved in
Speaker:the controlled environment agriculture scene. And in case you're wondering,
Speaker:we learn how Thomas ended up in Brazil in the first place. He provides his
Speaker:thoughts on the evolution of entrepreneurship there and why that spirit is so
Speaker:prominent in Brazilian culture. And he shares some surprising origin
Speaker:stories, which I know for a fact, because I listened to them and
Speaker:thought they were great, that you'll find them educational and entertaining.
Speaker:Finally, Thomas speaks about what excites him, in the future
Speaker:of Fazenda Urbana, the Mighty Greens brand, and the agtech
Speaker:industry as a whole, especially the opportunities in Central and South
Speaker:America. This episode is also brought to you by Indoor AgCon.
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Speaker:VFPOD2021. And we'll make sure that's in the show notes as well. Don't forget to
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Speaker:If you enjoyed this episode or past episodes, leave a rating and a review at
Speaker:ratethispodcast.com/vfp. I'd love
Speaker:to read yours out next. Okay, let's head down south to beautiful
Speaker:Rio de Janeiro and learn more about Thomas and Fazenda Urbana.
Speaker:Thomas Oberlin, co-founder at Fazenda Urbana, thank you for
Speaker:joining me on the Vertical Farming Podcast. It's my pleasure, Harry.
Speaker:I've enjoyed your work for some time, and it's, uh, it's great to be a
Speaker:guest. How did you first hear about the show?
Speaker:I was looking, I think it was something from the agriculture guys,
Speaker:from Henry. Henry. Yeah, yeah, yeah. He was guest 2 or
Speaker:3 on the show, yeah, early. Yeah. And so I believe
Speaker:that's how I found out about you. I met
Speaker:him once. He came to Brazil and we met
Speaker:for dinner and had a chat a couple years ago. And
Speaker:Do you listen to other shows or is that how you consume the content? Do
Speaker:you normally read audiobooks or— I'm just curious about that. I
Speaker:used to listen to a lot of audiobooks.
Speaker:And then during the pandemic, I started
Speaker:listening to more and more podcasts. I really
Speaker:hadn't done that much attention before,
Speaker:but life changed and I had some
Speaker:Gaps in my schedule, I started listening and now it's
Speaker:become a part of my regular routine. And are
Speaker:you at the point where you're listening at a higher speed now or you're still
Speaker:at 1x for your podcasts? No, I haven't tried
Speaker:that. That's a good— man, I didn't even know that was
Speaker:possible. So I can crank up the speed on the
Speaker:podcast and burn through them faster. It's interesting because the
Speaker:technology they use changes the speed but not the pitch. So
Speaker:it's not like normally when you play something fast, like I think about
Speaker:an old-school tape recorder. The pitch is high, it sounds like chipmunks. But
Speaker:this increases the speed of the podcast so you can listen to the
Speaker:podcast faster, but it's still me at the same pitch. So it's easier to
Speaker:comprehend and you can do 1.2x, 1.5x,
Speaker:and slowly make your way to higher speeds. And I've done it in the
Speaker:past with audiobooks and that's when I saw it, that option as podcasts.
Speaker:And depending on the content, if it's entertainment or light listening,
Speaker:you can usually get by with starting at one of those 1.1, 1.2x's,
Speaker:but it lets you just consume content faster. I'm at the point now where I'm
Speaker:at 2x, so I can get a 30-minute podcast in 15 minutes.
Speaker:No, that's great. I had no idea. It sounds a little bit like Auto-Tune
Speaker:technology a long time ago. Something like that. As a musician, right?
Speaker:And so— And so for the benefit of the listener, where's home for you
Speaker:now? Brazil. Rio de Janeiro is, uh, is
Speaker:where, where we're based. So— I've been 3 times.
Speaker:Really? Yeah. Cool. Well, how did that happen?
Speaker:I know you're supposed to be interviewing me, but tell me a little bit. No,
Speaker:it's okay. It's a conversation, not an interview, so it's fine. Uh, yeah,
Speaker:I ended up there with friends, uh, in late '90s.
Speaker:Went to Rio, went there once with a group of friends, then we went back,
Speaker:I think it was a year or two later, and then went there for another
Speaker:trip when I was in São Paulo. But yeah, I really love it. I actually
Speaker:got to go to Sambódromo, which again,
Speaker:for the benefit of listener, is, uh, Actually, maybe if you want to describe it,
Speaker:that'd be interesting. No, it's sort of— it's a long,
Speaker:narrow type of football stadium in a sense, right, through
Speaker:which the Carnival parade
Speaker:occurs in Rio. So it's an amazing experience. And in
Speaker:fact, my co-founder Rodrigo Maia used to— when we
Speaker:first met, his part-time job was helping a
Speaker:company that arranged for tourists to have that experience during
Speaker:Carnival. It's an amazing sensory experience there.
Speaker:Yeah, it's almost— the only thing I can think of as an equivalent is sort
Speaker:of like the Rose Bowl Parade, but
Speaker:it was almost like a strip that you would see one of the speed car
Speaker:races in as well. So it's a weird
Speaker:combination. Yeah, and it's one after another. Floats and
Speaker:schools. Yeah, that's right. They're called the schools
Speaker:of marchers or participants. And from my
Speaker:understanding, I mean, they— and when I've seen it, they spend like a year on
Speaker:the costumes, the floats, and it's, it's a real— that's your point— a
Speaker:sensory experience. It's really, really interesting to, to have seen that. Yeah,
Speaker:they go through a whole fundraising process, right? And then they build these
Speaker:incredible and elaborate floats.
Speaker:Sometimes the floats make it all the way through the Summerdrome.
Speaker:Sometimes they're a little too large to turn a
Speaker:corner, and there's funny— and then sometimes people fall off. So you have all
Speaker:this sort of NASCAR crash-like
Speaker:aspect to it in addition to the sound, the
Speaker:drumming and the music and the dancing and the costumes.
Speaker:Yeah, it's intense. And that was me there
Speaker:for Carnival as well. So experiencing that
Speaker:in Rio is an experience in and of itself as well. When did
Speaker:you end up in Rio? So my first experience in
Speaker:Brazil started in the year 2000. I was an
Speaker:executive in a company that built large
Speaker:data centers, carrier-neutral data centers here in
Speaker:Brazil and in Argentina. And so
Speaker:the first time I did any sort of work in South America in general was
Speaker:during that timeframe from 2000 to 2003. And
Speaker:we had a big data center in São Paulo and another one in Rio.
Speaker:And I started out running business development and then sales in all
Speaker:the countries. And so I had to spend 2 weeks a month in Brazil.
Speaker:And so what I would do is I would go to São Paulo, the largest
Speaker:city in the Southern Hemisphere, for anybody who doesn't know, over 20
Speaker:million people in the metropolitan area. And I would go Monday
Speaker:through Thursday in São Paulo, and then I would fly Thursday
Speaker:night to Rio, and I would stay Friday, Saturday, Sunday, and Monday in
Speaker:Rio, and then I'd go back to São Paulo and then on to Buenos Aires.
Speaker:So that— and then, so I really fell in love with the country
Speaker:and the people. And then in
Speaker:2009, I launched a
Speaker:modular data center company, put together a team of engineers.
Speaker:We got a patent on this highly energy-efficient
Speaker:modular data center system, ultimately went on and got—
Speaker:and were approved and selected by Amazon as
Speaker:the only Latin American company that they certified to
Speaker:provide modular data centers to them. And decided to launch
Speaker:that production of that business in Brazil and
Speaker:specifically in Rio at that time. So from that point on,
Speaker:you know, my life's been really focused on Brazil.
Speaker:And then when did controlled environment agriculture, vertical farming, when
Speaker:did that appear on your radar? When did you start noticing that? You know, I
Speaker:started really paying attention to it in
Speaker:2015. At the modular data center
Speaker:company, which is called SmartCube, we happened to win and deliver
Speaker:2 huge projects, award-winning projects for
Speaker:2 different banks in Venezuela, of all places.
Speaker:Very challenging environment to work in.
Speaker:But the banks were 2
Speaker:government-owned banks. And the first project with the Bank of
Speaker:Venezuela, we became very close friends with
Speaker:the VP of IT. Eventually, he left the bank
Speaker:and started working with us. Because he left the
Speaker:bank, he no longer had access to some preferential treatment that
Speaker:government employees got with respect to access to food. And
Speaker:they were going through a really difficult time.
Speaker:People were standing in food lines, people standing in lines for
Speaker:medicine. And so he was— and his former boss
Speaker:had become the minister of groceries, in effect, Alimentos.
Speaker:Oh, wow. So, you know, we kept thinking, boy, what can
Speaker:we do? You know, what can we do to help these guys?
Speaker:And I started looking around and, you know, that's
Speaker:really where I started seeing the controlled environment. First, I saw
Speaker:the modular container guys, right? Like Freight Farms and
Speaker:GroTainer, right? I saw what the Agricool
Speaker:guys were doing over in France. As well as some of the
Speaker:larger scale. But our idea that
Speaker:motivated us to even really start looking at that was we had a friend
Speaker:who couldn't get food. And so that's what drove
Speaker:us down this path. Once we started studying it,
Speaker:my co-founder Rodrigo was the right-hand guy. And in
Speaker:fact, we worked closely together at SmartCube and said, well,
Speaker:Let's— we think there's something interesting here. And so we, we
Speaker:left SmartCube and started, uh, spent a
Speaker:year studying the market and deciding what we wanted to do in the controlled environment
Speaker:space. That's an interesting story. Thanks for sharing that background.
Speaker:And I'm sure anyone who follows the news understands the situation
Speaker:that's happening in Venezuela, but also just across South
Speaker:America. There's a lot of inability to have access to
Speaker:fresh produce, and we see it here obviously in the United States with our food
Speaker:deserts. But I think people assume that in South America that access to
Speaker:fresh produce is common. And I think you
Speaker:being there and seeing it firsthand, you've probably been able to
Speaker:experience how that's usually not the case. And was that
Speaker:really a surprising find for you, or is it something you became more aware
Speaker:of as you did more research? No, it was in the sense that a country
Speaker:that, in the case of Venezuela, a country that was, you know,
Speaker:not that long ago had been extraordinarily wealthy, right? And
Speaker:had a robust agricultural system, had
Speaker:completely collapsed. I mean, I have pictures that— pictures
Speaker:sent up, literally the guys stand in line for 5 hours
Speaker:and almost nothing on the shelves. But even within Brazil, as
Speaker:we started to look at it, Brazil's the
Speaker:220-some million people, the longest from north to
Speaker:south country in the world. Yet its
Speaker:federal highway system, when we started looking at this, was only about— had only about
Speaker:55-56% paved roads. And
Speaker:so what you have in Brazil, these centers where there's
Speaker:a lot of food production, of course there's massive amounts of soybean
Speaker:production and beef and big drivers for the export economy, but
Speaker:green leafy vegetables and fruits, there are centers at which that
Speaker:product is produced. And not always, not always
Speaker:close to all the population centers. And so
Speaker:transportation expenses are high. Transportation
Speaker:quality leaves some things to be
Speaker:desired. And so you can
Speaker:have a product that costs 4 reais per
Speaker:kilo in one part of the country at the
Speaker:supermarket and will sell for 30 or 40
Speaker:reais a kilo in another part of the country. Simply because—
Speaker:so it's in effect a food desert simply because
Speaker:of these transportation logistics issues and costs.
Speaker:So you said you did the— spent about a year doing research. What was it
Speaker:that you were finding that was coloring, like, you know, your
Speaker:decision into what type of company
Speaker:Fazenda was going to be? Yeah, we went and looked at several different things,
Speaker:right? Coming from SmartCube, that was a custom design
Speaker:manufacturing company. We would build these modular data
Speaker:centers with intelligent cooling
Speaker:systems. We were one of 3 companies in the
Speaker:world at the time to get a patent on technology in that area.
Speaker:And so we're used to this manufacturing
Speaker:world and we didn't really like it because you spend a lot of
Speaker:money doing custom development. Somebody may decide to buy
Speaker:or not. It was very— we at one point
Speaker:had people inquiring from over 120 different countries around the world
Speaker:about our modular data centers. We knew we'd already
Speaker:looked fairly early on and said, yeah, I don't think we want to be in
Speaker:the manufacturing, the container farm business as well.
Speaker:Freight Farms was out there with some guys doing some interesting work in that sector,
Speaker:but a container farm that would sell for $80,000
Speaker:or $100,000, well, we were selling modular data centers that
Speaker:are The cheap unit was
Speaker:$500,000 to a million. Oh,
Speaker:wow. So you got to sell a lot of container farms and/or
Speaker:services associated with it to make up for that. So we fairly
Speaker:early on decided, okay, we don't want to be in that. There was a lot
Speaker:of interest in franchise businesses here in Brazil in
Speaker:particular. And we looked at that and said, look, we don't know whether
Speaker:this is going to work, how it's going to work, what's going to work. We
Speaker:don't want to start offering some franchise of a solution.
Speaker:And the reality is, Rodrigo, I grew up on a farm, right? Rodrigo's a
Speaker:vegetarian, but beyond that, we didn't have any touch with agriculture.
Speaker:Yeah, yeah. So we went and got teamed up with a
Speaker:PhD agronomer who was a professor at a local university.
Speaker:We started, and then we spent a lot of time in supermarkets
Speaker:and looking at the things that we knew could be
Speaker:grown in controlled environments at the time and figuring out Okay.
Speaker:In the major cities in Brazil— Brazil's, uh, over 80% of the
Speaker:population lives in urban areas despite the immense size of the country.
Speaker:In these cities, what is there an excess of supply of, right? And what
Speaker:is in fault and what are the price points? And
Speaker:over time we found is that, you know,
Speaker:small, you know, specialty vegetables, specifically
Speaker:microgreens, right? baby leaf and microgreens in particular,
Speaker:had the highest value per unit. And there was nobody
Speaker:producing those products on any sort of scalable way and nobody
Speaker:doing it in a controlled environment at all. And so
Speaker:despite the fact that we won and that we were selected
Speaker:to provide some container farms to a project in the Ilha da Madeira
Speaker:in Portugal, before we'd even started the business,
Speaker:we submitted a design and were selected. We said, you
Speaker:know what, we want to be producers, right? We want to produce
Speaker:pesticide-free products. We want to produce them close to the consumer,
Speaker:eliminating this transportation, food loss issues.
Speaker:And so we decided to launch and do our MVP
Speaker:focused on microgreens. One other thing stimulated that.
Speaker:You know, Rodrigo and I both at that time had stepsons that were about 7
Speaker:years of age. Neither one of them like to eat
Speaker:vegetables. And what we found
Speaker:testing growing microgreens at home is that in both
Speaker:cases, you could put, you know, 200 grams of
Speaker:regular broccoli on the plate, or you could put a small
Speaker:amount of microgreens who have substantially higher
Speaker:nutritional density per kilo, and they would eat
Speaker:the, the microgreens when they would fight In some
Speaker:cases for hours against eating the regular plant. Interesting.
Speaker:And so that reinforced, and we thought, okay, there's
Speaker:an interesting opportunity here, and, and there's some
Speaker:other benefits to the microgreen approach. And
Speaker:what was the initial response as you started rolling out, and
Speaker:how did you decide that this pilot or this experiment was
Speaker:enough for you to justify moving forward? Good, great question. There
Speaker:were a couple interesting things. We had gotten some
Speaker:data, you know, suggesting that, you know,
Speaker:reasonable expectation at that time to produce microgreens was
Speaker:to do it within a 14-day period, and that we should be able to
Speaker:produce about 1.5 kilos of
Speaker:microgreens per square meter of grow space. And
Speaker:I'll tell you, at that point in time, We spent months
Speaker:trying to find a seed company that would provide us with
Speaker:seeds that didn't have any sort of treatment on them, any
Speaker:defensivos, as they said here, right? We didn't know what to do for it. We
Speaker:had to test all sorts of different grow media options.
Speaker:We didn't want to use soil inside of a controlled environment, right?
Speaker:Test different media options. And we had to find lighting
Speaker:solutions. So we said, well, we're going to do this in the lowest
Speaker:risk way possible. We leased 2 small
Speaker:Like, you know, half of a 20-foot container. One, in
Speaker:fact, to start out. We bought racks at the equivalent of a Home
Speaker:Depot and trays at a home
Speaker:improvement place, bought pumps at a pet fish
Speaker:supply store. And then we
Speaker:went and looked at LED lights. And at that time, you know, they were going
Speaker:to cost us like 4,000 reais, which was a couple
Speaker:thousand dollars here by the time they were imported grow lights
Speaker:per unit. So, well, that, that doesn't make any sense.
Speaker:So we selected, uh, you know, fluorescent lights on the
Speaker:blue end of the spectrum, and we built this real simple
Speaker:system out and then started growing. And the first
Speaker:time we got the, you know, the, the production time was, it
Speaker:was 12 days instead of 14. Depending on the
Speaker:plant that we had planted, we're able to produce between— we're supposed to do
Speaker:what— have produced about 1.5 kilos per square meter. We
Speaker:went— we were between 2.5 and 3.4
Speaker:kilos per square meter. And, uh, so, well, okay,
Speaker:that probably was a mistake, right? We went back and did it again. We were
Speaker:able to cut the time further. Then we started breaking the production
Speaker:process into 2 sectors, germination, right? And then,
Speaker:and then growth. And obviously reduced our energy costs by doing that.
Speaker:And then started applying some other techniques used in
Speaker:marijuana production and so forth until we reached a
Speaker:point where almost all of our microgreens products were able to
Speaker:produce consistently within a 7-day timeframe.
Speaker:Then we started taking products out to restaurants and visiting them,
Speaker:and we would cut the product, we'd weigh it, put it in, you know, 50
Speaker:grams per box, which was which was a pretty standard
Speaker:configuration that I'd seen. And one of the
Speaker:chefs who's one of the top, top 50 chefs in Latin
Speaker:America said, hey, Tom, you know, my—
Speaker:I worked in the US and I worked in Europe and I could get live
Speaker:microgreens there. If you bring me live microgreens, they'll
Speaker:last in the kitchen a lot longer. And,
Speaker:you know, so it's a far better value proposition for me than buying
Speaker:these organic grown-in-the-dirt microgreens that I have to wash. They already
Speaker:are turning into a green juice by the time they're, they're in the kitchen for
Speaker:a day. And just a point of clarification there, when you say live,
Speaker:is there a distinction there? Yeah, so all— what we do, we sell our
Speaker:products, we don't cut our microgreens, right? So we sell
Speaker:living my— and we sell living microgreens. We planted— so over
Speaker:time, we standardized on coconut fiber initially as a grow
Speaker:medium. But we had to go to the coconut fiber
Speaker:provider and get them to give us a consistent thickness of carpet. That didn't
Speaker:exist. So when we were getting seeds, we were getting developed a
Speaker:consistent thickness of carpet. Then we
Speaker:went through a whole process of cutting the carpet into certain sizes that would
Speaker:fit into our boxes, sterilizing the carpet, planting it. We
Speaker:developed the machinery to plant it to cut our labor costs down.
Speaker:And then we developed a germination system. A
Speaker:fogponics-based germination system with controls that allowed it to
Speaker:adjust it per plant. And so we plant the plants,
Speaker:germinate them in one environment, migrate to another environment for
Speaker:3.5 days of growth under the lights, put that
Speaker:coconut fiber with the microgreens on them in a box and
Speaker:sell them. And we developed packaging that allowed— that
Speaker:maintained those plants in a live state.
Speaker:Whether they were on a supermarket shelf. And so, so when I say
Speaker:live, yeah, so as opposed to, as opposed, so
Speaker:anybody else that you would, organic farmers would, cuz they're growing
Speaker:in soil, right, would cut the plant and, and
Speaker:microgreens are very sensitive. So they, they have a very short shelf life if you
Speaker:do that. So by developing packaging
Speaker:that maintained this plant in a little, like a little terrarium almost.
Speaker:We were able to keep the product on the— we had restaurants that would put
Speaker:it in Tupperware and keep it in their refrigerated section, and it would be good
Speaker:for 3 weeks to 4 weeks. Wow. And what was the response from the chef?
Speaker:Oh, he loved it. He told everybody. And so we started out
Speaker:with the idea that we're going to sell to supermarkets. We wanted something
Speaker:that was scalable, right? And we could replicate in multiple
Speaker:cities and it was scalable. But the Working with the chefs
Speaker:allowed us to test all these processes so that when
Speaker:the supermarket business came along, we were ready to go for it.
Speaker:I don't know if you've had a chance to listen to the previous interviews with
Speaker:Rob Lang of Farm.One. He had a similar story of how he
Speaker:started with reaching out to
Speaker:Michelin-star chefs in New York City and because
Speaker:he was working with like edible flowers and then obviously There's a proliferation
Speaker:of high-end restaurants in New York City, so he made a lot of headway there.
Speaker:And the recent one with Hiroki Kogi from Oishi about
Speaker:taking this crazy story about flying over with
Speaker:strawberries in his suitcase and then these
Speaker:omakase, like, high-end strawberries and then walking them to
Speaker:restaurants in New York City as well. So, I thought it's fascinating because if
Speaker:anyone has a refined palate enough to be able to appreciate the
Speaker:nuances and the flavors that are inherent with, you
Speaker:know, edibles grown like this, I think it's definitely, uh,
Speaker:chefs to start. So that's what we did, also a
Speaker:similar thing, right? We produced our product. So going back to
Speaker:this chef, you know, we produced the product and we took it to him
Speaker:on a Friday. It was the Friday of the start of Carnival. He said, ah,
Speaker:Tom, we're going to be closed for another week. I said, well, fantastic,
Speaker:right? At that time with restaurants, we were taking—
Speaker:we'd deliver. We decided we're going to deliver and do a full reverse
Speaker:logistics So we would deliver a Tupperware box
Speaker:with the product in it. They could put it directly in their
Speaker:refrigerated area. That's what he did. And then when they
Speaker:came back, in fact, it was like 10 days later, they called and said, hey,
Speaker:you know, we just pulled your product out of the camera fria, right, of the
Speaker:cold storage. It looks just like when you delivered here, and we're using it
Speaker:today. Wow. And so, yeah, and then
Speaker:he spread the word. But Rodrigo and I would walk around
Speaker:on the streets in Rio in the areas where the restaurants were concentrated. And I
Speaker:would walk with microgreens in a box to the
Speaker:restaurants we wanted to go to. And I would walk in speaking my bad
Speaker:Portuguese, right? And the Brazilian people are very
Speaker:friendly, and particularly with foreigners,
Speaker:very welcoming people. And so people would talk to me,
Speaker:and then the chefs would come out and talk. And then when the chef would
Speaker:come out, then Rodrigo was there to explain in greater detail, right, what
Speaker:it was we're doing and how we're doing it. And so we— our
Speaker:restaurant business, you know, grew literally
Speaker:by going door to door in the start, and then combined with
Speaker:word of mouth from one well-known chef and then another well-known chef,
Speaker:actually. So— That's a fascinating origin story, and I
Speaker:always like asking because sometimes some of the best stories come out of
Speaker:you doing what is required in those early days. That door-to-door
Speaker:stuff is really important. I'm always reminded of the— an
Speaker:interview I heard with the Airbnb founders about doing the things that don't scale
Speaker:and how they would fly to New York and knock on people's doors and say,
Speaker:hey, we've shown that apartments with photos get better
Speaker:results, so would you mind if we took some photos of your apartment? And they
Speaker:were doing this. This is the founders of Airbnb. But it's interesting, you know,
Speaker:that entrepreneurial spirit is really strong when you've got to really
Speaker:do what you can to really make your idea work. I just remembered one other
Speaker:thing we did before we even grew any microgreens, and we didn't have a
Speaker:production system. Somehow I got a meeting with a
Speaker:mid-level restaurant chain. I forget— oh no, I know how I did it because I,
Speaker:I remember I thought, well, this company could be an interesting client. And I walked
Speaker:in, Rodrigo and I went, walked into their corporate
Speaker:offices, and it was the same thing. Here's some gringo
Speaker:speaking strange Portuguese, and then the guy who was
Speaker:responsible for food decisions decisions came out. And he said, oh, you know, this sounds
Speaker:interesting. Can you bring me some samples and I'll set up a meeting with our
Speaker:head chef? We didn't have anything. So, but I found there was a,
Speaker:you know, at farmers market, right, there's an organic producer
Speaker:selling cut microgreens. And so I went and bought some, you know, I
Speaker:just repackaged and put them in another clamshell.
Speaker:I took it, we took, like, took it to the meeting with the chef. That's
Speaker:funny. And so they said, yeah, I want this. I'm gonna figure out what
Speaker:dishes. Can you bring me some more different kinds?
Speaker:And I was stimulated to do that because I remember that the founder
Speaker:of Netshoes talked about when he was just getting going, he didn't have any
Speaker:product at all. He would go to shoe stores,
Speaker:athletic shoe stores, offer to— they'd let him take
Speaker:photos of the shoes that he— when he sold the shoes, he would buy the
Speaker:shoes there that he was selling online at a discount. Wow.
Speaker:Yeah, it's that hustle mentality. Do you find that the entrepreneurial
Speaker:spirit is, or the movement is growing, or awareness of entrepreneurs?
Speaker:I know obviously it's super strong here and in the States.
Speaker:I'm always curious, you know, how or what the environment is like for
Speaker:entrepreneurs in places like Brazil. I think it's very strong here.
Speaker:I think Brazilians always have this spirit of
Speaker:you know, figuring out a way to do something. A jeitinho, they call it.
Speaker:And so they will sell anything, right, to anybody.
Speaker:And they're pretty innovative. And they're in a market that's big, right?
Speaker:200-some million people. So you, if you do something and do it well,
Speaker:and so we see a lot of that. We are,
Speaker:I literally, a week hasn't gone by since we started
Speaker:promoting what we're doing that we're not contacted by somebody here in Brazil.
Speaker:who wants to learn how to start a microgreens business every week.
Speaker:If it's one a week, it's a slow week. And so, but you see
Speaker:this, and the other thing you see here is increasing support
Speaker:for early-stage businesses. So where 15 years
Speaker:ago, 10 years ago, there weren't angel investment groups,
Speaker:right? Or there, and there wasn't the, there weren't venture
Speaker:capitalists focused on agrotech or tech or
Speaker:any Any business. There have
Speaker:been local entrepreneurs that have had successful exit
Speaker:events that understand the venture capital world
Speaker:that are now helping to build that ecosystem here. And so I
Speaker:would say in Brazil in particular, there is a strong
Speaker:culture of entrepreneurship. Is the
Speaker:interest and the influx of money that you see in the US
Speaker:Bowery raising $300 million just most recently. Do you see
Speaker:that having an impact on what you're planning there in
Speaker:Brazil, and is some of that making its way there as well? Yeah, I do
Speaker:see it having an impact here in that it gives—
Speaker:Brazilians are generally cautious investors. They are—
Speaker:the country had a history of hyperinflation and,
Speaker:you know, another— a number of other challenges, and so they're— they tend to be
Speaker:cautious investors, but they're also followers of
Speaker:things that happen in the US and Europe. And I would say even more so
Speaker:the US than in Europe. And so when they see
Speaker:multiple controlled environment agricultural companies in the
Speaker:US receiving substantial investor support,
Speaker:those people who are looking for new investment opportunities view that as a
Speaker:positive sign. In terms of money from the US
Speaker:coming here, I think we'll start to see some
Speaker:of that. And I think I'll give you my observation on the
Speaker:data center side, in that companies in the
Speaker:US tend to look towards Europe first and then
Speaker:Asia second. And then after that, when they're looking
Speaker:for growth opportunities, they'll look at South America. I think
Speaker:you'll see more and more attention paid,
Speaker:and particularly as more controlled environment agriculture
Speaker:companies come online here and start expanding.
Speaker:So yeah, I think it's a positive. At the same time, you have to build
Speaker:a business to last, right? And so— Yeah. And that's the
Speaker:conservative part of the Brazil side, I think is good. We, you know, I think
Speaker:too, we, we, my co-founder and I, Rodrigo, uh, and I always
Speaker:said the best thing that happened to us when we started is that we didn't
Speaker:raise a whole bunch of money. It forced us to be
Speaker:extraordinarily disciplined in what we're doing. We would have made so
Speaker:many mistakes. And I don't even think that were mistakes, we just learned so
Speaker:much, right? In 2.5 years' time, we cut our
Speaker:labor cost per unit by 75% through
Speaker:mechanization and processes. And I'm not sure that
Speaker:that would have happened much faster, right, with a lot of money in our pocket.
Speaker:So, you know, I've seen— I think that we'll
Speaker:see US investors come here. I think we'll see international
Speaker:companies looking to grow that will look to pick up,
Speaker:you know, somebody that's established in Brazil and add them to their portfolio as
Speaker:well. You mentioned this idea of looking at franchises as well. I'm wondering,
Speaker:with the interest in microgreens, if the thought ever crossed your mind of taking
Speaker:all the learnings you had and you discovered and creating a
Speaker:model around that where people, rather than start their own microgreens company, could leverage
Speaker:the work that you've done so far. You ask great questions, Harry. Now, we
Speaker:considered The answer is yes. We look at Brazil
Speaker:and you sort of stratify the country based on the size of the
Speaker:urban population and the GDP per capita within
Speaker:the cities. And there are some cities where it makes
Speaker:sense for us to own and be owners and operators, and others
Speaker:where there's a potential market there,
Speaker:but it may not be sufficiently large to be of great
Speaker:interest to us. And so one of the things that we've
Speaker:considered is, and we've in fact had some discussions
Speaker:including one recently with the group about a sort of, I would
Speaker:say, a co-ownership model, right? Where we provide the
Speaker:technology and know-how and processes and all of
Speaker:that with a local operator who's got skin in the
Speaker:game as well. And so that's an approach
Speaker:that we're studying. Studying actively with some
Speaker:entrepreneurs who are interested in that kind of partnership. Will it go
Speaker:anywhere? I don't know. It's been interesting to see in companies
Speaker:like Henry's Agriculture, you know, they provide that
Speaker:consulting, the feedback, guidance. Our title
Speaker:sponsor this season is Cultivated, which is doing something similar here in the States.
Speaker:And they actually figure out like what your needs are and then figure out what
Speaker:the appropriate solution is for you and then marry the two.
Speaker:as the farmer. They don't charge the farmer, they just, they work with their partners
Speaker:and that's how they get compensated. So it's, it's actually free to work with them,
Speaker:which I think is a great model. Yeah, that's an interesting model. Yeah, it's an
Speaker:interesting model. So fast forward to present day, and
Speaker:is the company— because I noticed you're also using the Mighty
Speaker:Greens brand. So are— what's the relationship between both the—
Speaker:between Fazenda and Mighty Greens? So Fazenda Urbana is the corporate name,
Speaker:right? And Mighty Greens is our— the brand that we use. Right, that's the brand
Speaker:we established here in Brazil. And so what's the mix look
Speaker:like? Because you did mention you did start with microgreens, and
Speaker:I'm just curious now for present day and for the benefit of listener, what's the
Speaker:model look like and the offerings? So today we are best
Speaker:known for microgreens, but we also are offering mushrooms.
Speaker:And so we're growing mushrooms, and we've got a couple other products on our roadmap.
Speaker:But those 2 products we started We started offering mushrooms in
Speaker:2000 and in April of 2019. In
Speaker:fact, we started— mushrooms were always on our product roadmap.
Speaker:Look at the Lean Startup Canvas that we wrote in 2016.
Speaker:We're basically still following 90% of what's on there.
Speaker:And we had developed a strong relationship with a large supermarket chain
Speaker:in Rio called Zona Sul, and they were
Speaker:launching a new Megastore with an
Speaker:on-site— with chickens on-site producing eggs, banana
Speaker:trees in the parking lot, you know, a cheese-making—
Speaker:small cheese-making factory inside the store,
Speaker:pizzeria, you know, a French pastry chef producing
Speaker:pastries and gelato. And like a live market
Speaker:experience. Yeah, a coffee roaster right in the store
Speaker:for Central Ground. Must smell amazing when you walk in there. Yeah.
Speaker:Well, one— but yeah, but aside, at one point the administrative person responsible
Speaker:said, why you— did you guys know how much money you're spending on coffee
Speaker:at that store? You know, 2 or 3
Speaker:espressos every day. But anyhow, we started selling that store
Speaker:because the directors— the president's wife met us
Speaker:at a farmer's market early on, loved what we were doing. And
Speaker:the next time she saw that we were at the farmer's market She told her
Speaker:husband to go there and check this out. And the day after, he had his
Speaker:head of buying fruits and vegetables calling us to put the
Speaker:product in the store. And so we had already forged a good
Speaker:relationship with him. We started selling microgreens when nobody knew what they were.
Speaker:We did tastings in the store, and then we turned microgreens into a product that
Speaker:you could put on the shelf and they would go out the door even without
Speaker:tasting. Wow. So he called us in and said, look, we're launching this new store
Speaker:in Barra da Tijuca, in the kind of the Miami Beach
Speaker:suburbs of Rio. And we'd like you guys to grow that
Speaker:grass that you grow here at the store.
Speaker:And then we explained to him, look, look, this really requires
Speaker:precision and controlled environment, and there's space you need to plant and
Speaker:harvest and all this. And Rodrigo said to him, what about mushrooms?
Speaker:Ah, even better, he says. And, uh— When Rodrigo suggested
Speaker:mushrooms, had he consulted with you prior to that?
Speaker:No, I walked in, I was meeting in the same building
Speaker:with a distributor, and I walked in, he said, hey, I got some great news.
Speaker:These guys want us to grow at the store. And I'm like, he said, he
Speaker:said, the bad news is we've agreed to grow mushrooms there. I
Speaker:said, we hadn't grown a mushroom in our life, at least not intentionally,
Speaker:right? But interestingly enough, through
Speaker:one of our investors, an attorney, 6 months earlier, he put me
Speaker:in touch with a fellow who was the largest producer of
Speaker:mushroom grow media, blocks of mushrooms for
Speaker:exotic mushrooms, shiitake and shimeji, in Brazil
Speaker:based out of São Paulo. He's a Japanese guy, grew up in South
Speaker:Carolina, went to University of Columbia, and then
Speaker:his family had big cotton mills and
Speaker:cotton mills that produced— they had big factories that produced a lot of cloth.
Speaker:So he was called to Brazil to take over the family
Speaker:cotton production business. He said, well, at least I'm going to do something I
Speaker:like, which is also produce mushrooms. And so I'd become
Speaker:friends with him. We got to know him. And so when we were
Speaker:asked to do this, they basically said— the supermarket zone said, there's going to
Speaker:be the space in front of the store, between the store and this and
Speaker:the main road in Barra da Tijuca. We're going to build a concrete
Speaker:base and we want you to put a container there, 20-foot container.
Speaker:And so we had a contact with the supplier, a
Speaker:guy who produced inoculated blocks. And so I
Speaker:talked to him about it. We had an idea. We'd already been thinking about
Speaker:producing mushrooms in the following year. And so we set
Speaker:about, in about 6 weeks' time, we had to
Speaker:do this. We had to find a container. We had to
Speaker:build out the grow space. And it was not only supposed to be a
Speaker:grow room, but a space that could Yeah, I was thinking
Speaker:about that. It has to be something that's customer-facing and looks good too.
Speaker:Yeah. So, and the first problem was
Speaker:finding a 20-foot refrigerated container. And at the
Speaker:time, the 20-foot reefer containers were,
Speaker:are generally more scarce. And we were looking everywhere. We couldn't, the
Speaker:ones we found were way out of our budget. And our farm was set
Speaker:up. And at that point, the phase we were in, we were set
Speaker:up in a place co-located with a guy who did container
Speaker:reformation in another part of the space. And one evening,
Speaker:as the sun was going down, I was walking around in a back area that
Speaker:he had, just stressed, thinking, how are we going to get this
Speaker:thing done? The only thing we could find was 3 or 4 times the budget
Speaker:we had for it. I look and there's this
Speaker:box covered with vines. I mean, literally, like the jungle was
Speaker:growing over this. And I looked at it again. I looked at the size of
Speaker:it and I went and knocked on it. And then I said,
Speaker:Rodrigo, I think this is a reefer container, 20-foot. He said, no, man. Where was
Speaker:this? This was in a rural area. There's— in Rio, right?
Speaker:But in the area called Ilha da Guaratiba. And then— and so
Speaker:this was like a place, it was like a graveyard of old containers this guy
Speaker:had. I mean, literally, the Cadillac graveyard, this is like a
Speaker:container graveyard. And then I grabbed the door and pulled it open, ripped
Speaker:the vines off of it, pulled the door open, and it was In perfect
Speaker:condition on the inside, and it had been abandoned there. And
Speaker:so we were able to buy that container for a third the price that
Speaker:other people were asking. It was a 40-year-old container made in Japan.
Speaker:It was solid as a rock. And it was refrigerated, or you had to— And
Speaker:it was— and it was— and it had insulation. It was a
Speaker:reefer container. So, okay, the refrigeration units don't work well
Speaker:for what we wanted, but the thermal insulation for Rio,
Speaker:where it gets 40 degrees centigrade, right, it gets over 100 degrees sometimes
Speaker:when you have to to grow mushrooms at 17 degrees centigrade
Speaker:is an important attribute. So we bought that
Speaker:container, we reformed it, and then in a matter of a couple
Speaker:weeks' time, painted it, put in something that looks like an aquarium,
Speaker:right, with sliding doors, and built racks that we
Speaker:put inside of it. Took the fogging type systems we used for
Speaker:germination and put it inside to hydrate the mushrooms. Put
Speaker:lighting inside of it, put glass doors on it, and dropped
Speaker:it— finished it and dropped it in place right in front of that supermarket. A
Speaker:day later, put mushroom blocks in there, and a week later,
Speaker:we were selling oyster mushrooms in the supermarket by taking
Speaker:the fruited blocks from that container into the
Speaker:supermarket and placing them on a table and letting people harvest their own mushrooms.
Speaker:Wow, that's a great story. What was the response?
Speaker:Oh, was it— well, a lot of crazy things about different things.
Speaker:One, if you put the yellow or the citrino and the
Speaker:salmon-colored oyster mushrooms out there, they attract people
Speaker:like crazy. They're beautiful. Yeah. We have people that wanted to buy the whole block
Speaker:and take it home like a bunch of flowers, right? So we had to teach
Speaker:people how to harvest the mushroom off the block. And
Speaker:Brazil's home to a— has a fairly sizable vegetarian
Speaker:population. It's approaching 30 million people. There's a
Speaker:rapidly growing vegan population as well. Those
Speaker:lifestyles and dietary approaches are largely
Speaker:concentrated in, I would say, 35 and younger, 40 and
Speaker:younger in particular. And so what you have
Speaker:often is multi-generation homes here. And so you'd have parents come in
Speaker:and say, hey, you know, my kid's vegan or vegetarian,
Speaker:me to buy mushrooms and I don't know what the heck to do with it.
Speaker:And so we learned that we had to educate the consumer on how to
Speaker:cook the mushrooms, how to prepare the mushrooms, different dishes they could
Speaker:prepare. Yeah. And we did that. We started working closely with the
Speaker:store. In fact, today, you know, Rodrigo is, you know, just being
Speaker:interviewed. I would say he also, he was being filmed in a video
Speaker:by that supermarket chain that they run inside the store. One more video
Speaker:they run inside the store to talk about about what we do there. A big
Speaker:media day for Fazenda today. Yeah, it is. It is. Yeah, 2
Speaker:continents, in fact, right? And the other thing is
Speaker:that we started getting school groups coming in. In the microgreen
Speaker:side of the business, we had very early on, because of our
Speaker:experience with children, been working with a nutritionist who was famous for
Speaker:teaching parents how to deal with kids who didn't eat properly.
Speaker:And so we would conduct events with her. Gabrielle Capin.
Speaker:And we would teach kids how to plant microgreens. We would take the
Speaker:seeds from arugula, which then treat it with hydrogen
Speaker:peroxide and then wash with water, take a little coconut fiber. The
Speaker:kids would smear the seeds on the coconut fiber. They'd put it in one of
Speaker:our packages, they'd take it home, and 7 days later they'd have microgreens.
Speaker:Kids love the experience. They love that stuff. Yeah. Experimenting. And
Speaker:then they would eat it, right? Yet there was the other thing, a group
Speaker:of kids, 20 or 30 kids, and the parents would be standing around and say,
Speaker:oh, she doesn't eat the green stuff. He doesn't like
Speaker:that. And the parents would leave and then you put the plants out, the microgreens
Speaker:out, the plants out for the kids, and they'd all start eating. One would start
Speaker:eating and then they all start eating. They all start eating, right?
Speaker:And so, and we'd tell them this is salada de crayones, the kids sell
Speaker:it. Well, when we put the mushroom container in place, we started
Speaker:having school groups coming in and doing tours and explaining to them. And we'd do
Speaker:the same thing. we prepared mushrooms for those kids in the
Speaker:school groups to eat. And every school
Speaker:group had at least one kid, and you ask them, what do you know about
Speaker:mushrooms? And the one kid would— they're probably somebody like me when I was that
Speaker:age, shout out— they're poisonous! They're poisonous!
Speaker:Yeah. But then they'd start eating it, and then
Speaker:everybody would eat it. So we learned a lot by doing that, right?
Speaker:And for the store, you know, this supermarket chain is
Speaker:full, you know, their parking lot The shade in the parking lot are
Speaker:solar panels, right? So you park under the massive solar panel
Speaker:array, right? They have heavily focused on sustainable
Speaker:food and sustainable products. So having a zero-mile, you know,
Speaker:from the standpoint of the distance from the farmer to the store product
Speaker:was something that was appealing to them. Once we started doing that, they asked us
Speaker:to supply other mushrooms in our mushroom business.
Speaker:And then we started doing these events in stores, teaching people how to cook mushrooms,
Speaker:how to use them, training them about nutritional value. We were able to
Speaker:increase the mushroom business in terms of bulk
Speaker:mushrooms, harvested mushrooms, or ready-to-harvest mushrooms by 10
Speaker:times over the course of about a 6-month period. Wow.
Speaker:So we found a whole lot of— Is that why Mighty Mushrooms now? Yeah. Yeah.
Speaker:You know, another interesting thing from the start, we had said we're going to have
Speaker:Mighty Greens, Mighty Mushrooms, Mighty Berries, right?
Speaker:But we've just stuck with the— I think at some point that will happen. We'll
Speaker:just go with Mighty and then it'll have mushrooms, berries, and greens. But
Speaker:today we just, we still use one unique logo. But that— What was the
Speaker:take from the, uh, the Japanese farmer? I'm wondering what his
Speaker:reaction was to see how, you know, input from him turned into something
Speaker:like this. No, he always told me, the guy's name's Seiji, and
Speaker:we talk regularly. He kept telling me, Tom, he said, you're going to start growing
Speaker:mushrooms and that's going to dwarf your microgreens. green business. And we—
Speaker:and I said, you know, look, I believe we can create microgreens as
Speaker:the gateway vegetable, right, for kids.
Speaker:And in fact, we've seen that start to happen. But
Speaker:we then turned around after he saw the activities that were going on with the
Speaker:container, we turned around and helped him build a 40-foot
Speaker:container that he was producing shiitake mushrooms in
Speaker:with the idea that he was thinking about doing franchising of that sort of business.
Speaker:I think that's, that's on hold now, but it's been a very good
Speaker:relationship. I would say that we, we sort of help each other out in that
Speaker:way. But, uh, you know, the mushroom business also led
Speaker:us, uh, down another path that reached a point during the
Speaker:pandemic when there was a
Speaker:breakdown for a while in the supply chain, right, in terms of getting
Speaker:mushrooms grow media, and we weren't producing our own.
Speaker:And we couldn't produce mushrooms. That was a problem. And so
Speaker:I went into that store that I described with its
Speaker:coffee roasting business and coffee bar.
Speaker:We took the cardboard, excess cardboard that they have in the
Speaker:store. We took coffee grounds from the used coffee grounds from the
Speaker:store, and we took ashes from the pizza oven. Used
Speaker:the ashes to sterilize the— put the cardboard in water,
Speaker:sterilize it basically with ashes, raise the pH high
Speaker:enough in the water that it killed anything that was on the cardboard. We
Speaker:then mixed the cardboard with coffee grounds, and then we
Speaker:planted— put mushroom seeds in this
Speaker:mixture, put it all inside of buckets that had been
Speaker:used to deliver olives in bulk or butter
Speaker:to the bakery downstairs. And then we started producing
Speaker:mushrooms at the store made of items that were thrown away.
Speaker:from in the store. Wow. Who came up with that idea?
Speaker:You know, I think I had— there were several different factors that
Speaker:stimulated it. I remember watching some YouTube videos,
Speaker:the better, your best university, right? Between podcasts
Speaker:and YouTube, I'm not sure you need to go to school much for anything.
Speaker:Uh, some guys, I want to think it was in Amsterdam,
Speaker:pedaling around Amsterdam gathering up coffee
Speaker:grounds from coffee bars And started to grow mushrooms on
Speaker:them. And I remember that from a couple years ago. And
Speaker:then there was a, you know, an agronomer that worked
Speaker:with us that had mentioned, hey, you know, you can
Speaker:fruit mushrooms on cardboard and do these different things. And so the people, you know,
Speaker:I'd done some research about it, but at that point I was desperate. I needed
Speaker:to grow mushrooms, right? And so I said, well, I, you know,
Speaker:like everything else in life, I've never done this before, but I'll, you know, I
Speaker:think we can figure it out. And so necessity is the mother of
Speaker:invention. Yeah. So, and so we started doing that, testing it, then it
Speaker:worked. Then our supplier came back online. Right now,
Speaker:you know, Harry, we're in conversations with that supermarket chain
Speaker:about actually scaling that idea up and
Speaker:seeing if we can provide that as a service to them. They have
Speaker:over 40 stores in Rio and they
Speaker:have a central deposit. And so the idea, if it
Speaker:makes sense, I mean, beyond the emotional part of it, right? And
Speaker:the sustainable benefits, if it makes sense, and I think it will,
Speaker:the idea we provide this as a service to the supermarket chain
Speaker:where they deliver these discarded materials to us and
Speaker:we turn them into mushrooms that they then sell at their stores. All from
Speaker:that visit of his wife to the farmer's market. Yeah.
Speaker:Yes. All from that. Yeah, those are some
Speaker:fascinating stories. And I think what I love about this format is that
Speaker:I just follow my own interest and my train of thought.
Speaker:And as I'm hearing you talk about this, I feel like, you know, some of
Speaker:these stories are really great because it really tells you, you do what you need
Speaker:to do in those early days to figure out what works. And because
Speaker:you are in a place where, you know, controlled environment
Speaker:agriculture, all these, you know, microgreens, mushrooms, this is early
Speaker:days, still new stuff, and people are discovering it at the same time
Speaker:you're deciding how you can manufacture and scale it.
Speaker:I think, uh, it's, it's like anything goes. And it's almost
Speaker:like the early days of the Gold Rush here, or the Wild West, where, you
Speaker:know, that innovator spirit, that entrepreneurial spirit— I think, you know, you do what
Speaker:you need to do to get things done. And as a result, if you're in
Speaker:the right place, right time, good things can happen. You know, yeah.
Speaker:We, as I mentioned, we have people contacting us all the time, and
Speaker:particularly on microgreens. And eventually
Speaker:they get down to, you know, try to ask, you know, where did you buy
Speaker:your seeds and where did you get your grow media? And those are 2 things
Speaker:that we share with everybody because we figure that more people growing
Speaker:microgreens means more people and more consumers aware of
Speaker:microgreens. And when we arrive in their city with a super
Speaker:efficient and high-quality product, efficient producing, high-quality
Speaker:product, there's going to be a prepared market for microgreens when there
Speaker:wasn't. There wasn't when we started. And so the, um,
Speaker:but we keep explaining to people that, look, just,
Speaker:I mean, we selected this grow media, we selected
Speaker:these whole things because we, it fit into a
Speaker:complex process that we developed over time.
Speaker:Um, and so just buying those 2 things and think you're going to do
Speaker:it In one way. In your basement. Yeah, without thinking it might
Speaker:work, right? It might work. But what you really need to do is go
Speaker:test all this stuff because you might find a better way to do it than
Speaker:we've thought of. Just imitating what we're doing, okay, you can do
Speaker:some things. And in fact, we've reached the point where we
Speaker:abandoned— we stopped using the coconut fiber
Speaker:grow media and migrated to an algae-based grow media because
Speaker:it cut so many steps in the process and increased our shelf life.
Speaker:And we eliminated all the hydroponics in the
Speaker:part of the production of microgreens that use light.
Speaker:Interesting. So we plant the seeds on this gel that's
Speaker:99.7% water, right?
Speaker:But that's— and the only other time it comes in and encounters water
Speaker:is in the germination process where our fogponic system,
Speaker:you know, helps hydrate the seeds. Once the roots
Speaker:start to grow and they move into the— under the lighting, we had
Speaker:built this complex, intelligent, you know,
Speaker:automated ebb and flow type of hydroponic
Speaker:system, and we ripped it all out because we don't
Speaker:need to use it anymore. Wow. And so when you— and when you say fogponics,
Speaker:that's similar to what we would consider aeroponics? Similar.
Speaker:Yeah, similar. Is there a difference? You know, yeah, the way that we
Speaker:use it is slightly different, right? So if you think of AeroFarms and some of
Speaker:the people using aeroponics, high-pressure aeroponic systems,
Speaker:they're spraying very fine droplets at the roots.
Speaker:Right, a mist at the plants. One of the things we do a lot
Speaker:is read as much of the published research that we can find, right?
Speaker:And there's a lot of great information out there that people aren't applying,
Speaker:right? And so one of the things that we've discovered is that if the droplet
Speaker:of water is below a certain size, then it penetrates the
Speaker:seed much more efficiently, hydrates the
Speaker:endosperm of the seed faster, and you get faster germination and
Speaker:higher germination rates. And so our fogponics is
Speaker:designed for that purpose. What— now, once
Speaker:that seed germinates, the roots are growing in this gel. There's no
Speaker:more aeroponics, fogponics, any other type of ponics.
Speaker:But Ours is focused on the seed, hydrating the seed as opposed to the
Speaker:roots, as opposed to delivering water in for baby leaf and so
Speaker:forth, you know, fertilizer into the roots.
Speaker:Lots of innovation happening there. And I
Speaker:think it's just experimenting, trying new ways. And I think, I think coming from your
Speaker:background, I think you're open to trying new ways of doing things. And I'm wondering
Speaker:if you're seeing opportunities to grow not just within Brazil, but also in
Speaker:South America. I'm wondering if you're tracking what's happening in other countries when it comes
Speaker:to vertical farming. Yeah, I think a couple things we're doing can work almost anywhere,
Speaker:including in the US. And looking around South
Speaker:America, prior to setting
Speaker:up here in Brazil, I spent 2 years where I would stay
Speaker:6 months a year in Buenos Aires. So I know
Speaker:Argentina well. One of my friends from there is
Speaker:the CFO of a large supermarket chain there. So
Speaker:I talk to him regularly about the potential in that market.
Speaker:2 other, 3 other people that I've worked closely with are from Chile. 2
Speaker:of them live in Chile. I think Chile's an interesting market.
Speaker:I think Colombia is an interesting market as well.
Speaker:Argentina is suffering a bit. And so—
Speaker:Yeah. And while I think they have the, you know, the
Speaker:appetite for this sort of thing, I'm not sure that economically it's
Speaker:something that makes sense to enter today. But I think there are several other
Speaker:countries where there's potential here. Peru, Peru has a
Speaker:robust gastronomic culture
Speaker:there. So I think there's some other places that make sense. Yes. But I
Speaker:think some of the stuff we're doing could be done in the US as well
Speaker:and be competitive. So now, as you think about the future
Speaker:of Mighty Greens, what's that look like for you, you know, based on everything we've
Speaker:talked about and, and where you're seeing success? Yeah, so
Speaker:we're— in fact, uh, Harry, right now we're raising money for
Speaker:expansion. We have now the letter of
Speaker:intent from a supermarket chain to purchase a
Speaker:minimum amount of mushrooms from us every month.
Speaker:So that was a breakthrough here. That's not a common type of
Speaker:relationship that exists between suppliers and buyers
Speaker:in Brazil. And we look to leverage
Speaker:this mushroom showroom approach into those sorts of
Speaker:relationships with other supermarket chains in major cities
Speaker:around Brazil. So we see setting up with mushrooms being our
Speaker:entry product and microgreens coming along with them and
Speaker:expanding to, over the next 4 years, expanding
Speaker:into 5 other cities around Brazil. That's
Speaker:our focus right now. And adding a
Speaker:3rd product line as we get into the 3rd year.
Speaker:So we're not in— That would be the berries? Yeah. So now
Speaker:we are going back and forth between a micro leaf and/or
Speaker:strawberries. Strawberries are interesting, as I described
Speaker:early on, that product that's $4 in one place
Speaker:and nearly $40 in another, strawberries, right? In the
Speaker:northeast of the country where those prices are
Speaker:dramatically different, much higher. Make sure you check out,
Speaker:if you haven't already listened to that interview with Hiroki, it's fast. Just had a
Speaker:newfound appreciation for strawberries and the care and the
Speaker:difference in varieties. It's almost like the way champagne is in
Speaker:France is how they grow strawberries by region.
Speaker:Very, very interesting. Yeah, I saw, I watched, I
Speaker:haven't yet, and I will right after this listen to your interview with him
Speaker:because I've I've watched some of the YouTube videos of
Speaker:them. And I said once, you know, he was showing somebody around and they were
Speaker:doing a Brix test on the strawberries and the number came up lower than he
Speaker:wanted it to be. And he looked a little agitated. And then they tested it
Speaker:again. But they have a— they pay attention to the
Speaker:very detailed attention to the size and the
Speaker:flavor, right? Yeah. And the appearance of the product. And so what happens here
Speaker:is the strawberries are growing in the cooler climates. Right. In the states
Speaker:of Rio Grande do Sul and Minas
Speaker:Gerais. And so you can, and then they're trucked
Speaker:to thousands or thousands of kilometers away.
Speaker:And I'll tell you another thing we learned, right? Before people
Speaker:started putting temperature sensors inside of these trucks, truckers would leave the
Speaker:farming area, right? The harvest area or the deposit,
Speaker:the warehouse in the area that product was produced in.
Speaker:with the refrigerated truck to save on fuel. They'd turn off the
Speaker:refrigeration unit about an hour outside.
Speaker:They'd drive for however many more hours, and then they'd turn the
Speaker:refrigeration unit on again in the last hour before they'd get to the
Speaker:delivery point. I used to wonder why head of
Speaker:lettuce that I bought in Rio went bad so
Speaker:quickly compared to when I lived in, in the Washington, DC area.
Speaker:Right. Buy lettuce and you better eat it while you're walking
Speaker:home. Right? Yeah.
Speaker:And then the stuff we did in the first year we were studying, we went
Speaker:out into the areas where they were growing lettuce and we'd be like stalkers
Speaker:outside the lettuce farm and we would take pictures of them
Speaker:loading lettuce in the bags that was sold in the supermarket
Speaker:into wooden boxes on the back of a pickup truck. drive
Speaker:down a dirt road, dirt with dust flying over, going, going
Speaker:to a distribution center. Then they'd put that lettuce on an open
Speaker:truck. The exhaust from this diesel truck came
Speaker:out right in front of the cab, so it would blow over the lettuce while
Speaker:they drove down the mountainside. You know, this is
Speaker:outside of Rio. To give it that smoky flavor. Yes, defumado,
Speaker:as they say, to the made food distribution center.
Speaker:And it was already in the bag because I know this was from a high-end
Speaker:store that I would frequently buy my fresh produce, known for fresh
Speaker:fruits and vegetables. It was already in the bag, so they weren't taking it out
Speaker:of the bag and putting it back in again. It was going into that store,
Speaker:right? So our plan, right, is
Speaker:to grow in these key markets where there's a
Speaker:sizable urban population and lead with mushrooms and
Speaker:microgreens. Another interesting side note, right? We can pump the
Speaker:CO2 the mushrooms produce into the microgreens chamber
Speaker:and it serves as fertilizer for the microgreens. Oh, interesting.
Speaker:And move the fresh air with the excess oxygen from the microgreen sector into the
Speaker:mushroom business. So they, they sort of feed each other. But to
Speaker:do that, and then, and then layer on, I said, if in
Speaker:certain areas of the country we'll do micro leaf, uh, the,
Speaker:in other areas we'll do the, the strawberry business.
Speaker:Well, yeah, it's really interesting to hear what's been happening
Speaker:in other parts of the world with regards to vertical farming, and I'm glad you
Speaker:reached out. And, um, chock-full of interesting stories, so I
Speaker:appreciate you taking the time to join me. And, uh, time flew by here, Thomas,
Speaker:but, uh, for people who want to learn more about Mighty Greens or Fazenda
Speaker:Urbana, what's the best place, or where's the best place for them to go? Yeah,
Speaker:I think the Instagram, Mighty Greens do Brazil, is one place
Speaker:to go. And then our company website is
Speaker:www.fazenda-urbana.com.
Speaker:And we'll have all of those links in the show notes as well. But, uh,
Speaker:are you gonna try to make it out to any of the upcoming conferences soon
Speaker:as well? You know, it's a— I don't know. I don't know, Harry. I would
Speaker:like to, but I'm not sure I'm going to. Yeah, maybe not. I think people
Speaker:are still 50/50 this year. They'll probably wait until next year and then ramp those
Speaker:back up again. Yeah, we're— I've just got a— we've got a lot going on
Speaker:right now. expansion front. And so I think it's mostly
Speaker:a time issue. I would, I, you know, sadly to say, I think I'll still
Speaker:be here. Okay. Okay. Well, thanks for the conversation. I really
Speaker:enjoyed it and learning a lot about what's happening again with Fazenda.
Speaker:So I appreciate you sharing your story. Thank you, Harry. It's a
Speaker:pleasure. Thanks again to Thomas for coming on the show and sharing his story.
Speaker:Grateful that he reached out via LinkedIn and we were able to learn more
Speaker:and make the interview happen. I never know where these conversations are going to go,
Speaker:and it took a couple of turns for the better that I really appreciated. As
Speaker:always, all the resources mentioned are in our show notes at
Speaker:verticalfarmingpodcast.com. Thanks to our title sponsor, Cultivated. If
Speaker:you're looking for a vertical farm and don't know where to start or which technology
Speaker:would suit your needs, reach out to them today. Best of all, their service is
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Speaker:cultivated.com, and that's spelled C-U-L-T-I-V-A-T-E-D.
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Speaker:as a reminder, leave us that rating and a review at ratethispodcast.com/vfp,
Speaker:and we'll be sure to read those out on future episodes. Tune in next
Speaker:week for another conversation with a fascinating leader from the world of vertical
Speaker:farming. Until we meet again, here's to your health.
Speaker:Thanks for listening. To read the full show notes for this episode, which
Speaker:includes any links mentioned in the episode, as well as a full show transcript,
Speaker:description, visit verticalfarmingpodcast.com.
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