Artwork for podcast Vertical Farming Podcast: CEOs & Founders in AgTech and CEA
S1E1: 001 David Farquhar - It's Time For the Industry to Grow Up
Episode 1 • 5th May 2020 • Vertical Farming Podcast: CEOs & Founders in AgTech and CEA • iGrowNews
00:00:00 00:47:30

Share Episode

Shownotes

Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show serial entrepreneur and CEO of Intelligent Growth Solutions, David Farquhar. In this episode, Harry and David break down the emergence of vertical farming technologies, opportunities that have been created due to the current global pandemic, and projects that David and his team have been working on within his organization.

Special thanks to our Season 1 Sponsor

IGS – https://intelligentgrowthsolutions.com/

Key Takeaways

  • 01:36 – David and Harry discuss the impact of the ongoing COVID-19 crisis and the importance of leadership during this difficult time
  • 07:48 – Opportunities David sees in the marketplace for his organization, Intelligent Growth Solutions
  • 12:53 – David’s background in business and technology
  • 22:16 – How the emergence of global technologies like vertical farming can impact the future of our society
  • 29:50 – David expounds on the direct impact that weather, handling and ventilation have on vertical farming
  • 41:54 – What is something David has changed his mind about recently
  • 43:46 – Where listeners can follow David and IGS

Tweetable Quotes

Links Mentioned

Intelligent Growth Solutions

Website | Twitter | YouTube

See omnystudio.com/listener for privacy information.

Mentioned in this episode:

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

Transcripts

Speaker:

$680 million poured into precision ag last year.

Speaker:

Autonomous weeding robots dominated, and John Deere made 2 acquisitions in 3

Speaker:

months. A food company, not an equipment maker, bought a

Speaker:

robotics startup to protect its own supply chain. The deals are

Speaker:

accelerating, the money is moving, and the winners are already separating from the

Speaker:

pack. If you're investing, building, or buying in this space,

Speaker:

you need the full picture before your competitors get it. The 2025

Speaker:

Precision Agriculture Intelligence Report From iGrow News is now

Speaker:

available. Get your copy today at

Speaker:

igrownews.com/precision. Special thanks to our

Speaker:

title sponsor this season, IGS. Founded in

Speaker:

2013, IGS develops Industry 4.0 solutions in

Speaker:

the global agtech and commercial lighting markets. As an industry

Speaker:

innovator, they make revolutionary controlled environment growth products.

Speaker:

For more information, visit intelligentgrowthsolutions.com.

Speaker:

We are right at the start gate. This is the beginning of a marathon,

Speaker:

and anyone who tells you otherwise, frankly, is

Speaker:

lying.

Speaker:

Welcome to the Vertical Farming Podcast, weekly conversations

Speaker:

with fascinating CEOs, founders, and agtech

Speaker:

visionaries. Join us every week as we dive deep into the

Speaker:

world of vertical farming with your host,

Speaker:

Welcome to the Vertical Farming Podcast, our inaugural episode.

Speaker:

For episode 1, we decided to do something a little special

Speaker:

and have on David Farhar. David is the CEO of Intelligent Growth

Speaker:

Solutions, a company that makes platforms which deliver ideal climates for

Speaker:

plants and people based on a culture of continuous innovation,

Speaker:

simple design, and a refusal to accept conventional technical thinking.

Speaker:

Interestingly enough, David's interview was the first I had scheduled

Speaker:

following the COVID-19 shutdown. So I thought it made

Speaker:

sense to juggle the interview schedule a bit, and given the timely nature of

Speaker:

our conversation, have him kick off the podcast series.

Speaker:

So David Farquhar of Intelligent Growth Solutions,

Speaker:

thank you for joining us on the Vertical Farming Podcast. It's a

Speaker:

pleasure. Good to hear from you. So David, just to add some historical

Speaker:

context, I think, which is important, I'd be remiss if I

Speaker:

didn't talk about the current environment. we find ourselves in. As of this

Speaker:

recording, it's March 26th, 2020,

Speaker:

and the whole world is experiencing

Speaker:

the effects of COVID-19 and the coronavirus pandemic.

Speaker:

So I just wanted to mention that and just start off with that and ask

Speaker:

how you and your family are doing, and then what's

Speaker:

the last couple of weeks been like in your world? Yeah,

Speaker:

it's a very tough time for everybody around the world.

Speaker:

It's probably been a couple of weeks for you guys. We've been living

Speaker:

with it for more like a month or so, and of course

Speaker:

our friends over in places like Singapore have been

Speaker:

living with it for several months. So it's a movable feast.

Speaker:

We as a family are fine, thank you. My daughter's university has been

Speaker:

closed till September, so we have her back, probably

Speaker:

going slightly stir-crazy, poor soul. My son and

Speaker:

his partner live in the south of Scotland, so they are isolated

Speaker:

down there, and we are able to

Speaker:

get out once a day either for exercise or food

Speaker:

shopping, and that really, apart from going to say a

Speaker:

pharmacy, that is really pretty much what we're allowed to do.

Speaker:

So it's quite limiting. Can you

Speaker:

remember any time previously in your

Speaker:

lifetime that you've experienced something similar? I was in New

Speaker:

York for 9/11 and also during hurricane there. So

Speaker:

there's been traces of that, but this is the first time it's appeared to be—

Speaker:

it's something that's affected the entire globe as well. So I'm

Speaker:

wondering if there's been anything that's been a point of reference for you.

Speaker:

Not in reality. I mean, the nearest that I can ever remember

Speaker:

to anything like this, I was an officer, I was a captain in the

Speaker:

British Army during the 1980s. And of

Speaker:

course, we trained up for you know, World War

Speaker:

III. And so I was stationed in Germany, and we

Speaker:

regularly did exercises trying to imagine what chemical

Speaker:

and biological warfare would be like and how to survive through that.

Speaker:

And some of them were pretty realistic. They were pretty debilitating. Hmm.

Speaker:

This is debilitating in a slightly different way, but, you know, no less

Speaker:

scary. And I think, you know, you read about these kind of

Speaker:

things in sci-fi books and all that, sort of stuff, you never imagine it's really

Speaker:

going to happen to you. And it's not until you go out in

Speaker:

your car to do some shopping and the streets are empty

Speaker:

and places are just like ghost towns. How

Speaker:

have you thought about this in terms of as the leader

Speaker:

for your company? And I imagine there's a lot of people looking to

Speaker:

you for guidance and for leadership. How have you thought about anything

Speaker:

different in terms of the message you're communicating to the people that you manage?

Speaker:

Well, I guess we have a number of different audiences. There is

Speaker:

the crew of IGS, our fabulous employees and

Speaker:

our contractors. We have our investors.

Speaker:

We just had a board meeting yesterday. So we have our board of directors

Speaker:

and our investors. We have our customers and we have our

Speaker:

partners. So we've got multiple audiences, as would any business

Speaker:

have. Yes. We've tried to communicate very clearly,

Speaker:

very succinctly, and to act quickly. when anything

Speaker:

has happened. We've relied upon official government advice.

Speaker:

We're a small business, we're not a big corporation, so, you know, we have to

Speaker:

rely upon things like the government. We do, however, have a

Speaker:

very good network of friends and family in our

Speaker:

business around the world, and we've managed to track

Speaker:

what's coming out of Japan with our partners there, what's coming out

Speaker:

of Singapore, what's happening in the Middle East, what's happening elsewhere

Speaker:

in Europe. And all of our institutional

Speaker:

VC investors are American. So we've managed to

Speaker:

track through there as well. What we've tried to do

Speaker:

is be clear, be concise, and be decisive. I think at times like

Speaker:

this, that is what you need. We have sent all of our

Speaker:

office-based people home. For us, that's not been a hardship

Speaker:

because we already had a way of working where people could

Speaker:

work when they wanted and where they wanted. Yeah. Sometimes they choose to

Speaker:

come into the office to be more social. Sometimes they prefer to work at home.

Speaker:

And so from our point of view, that's not been

Speaker:

too much of a hardship. Some of the guys

Speaker:

who are single and live on their own and may have moved

Speaker:

up to Scotland to work here, that's been a little tougher on them,

Speaker:

I have to say. Yeah. They maybe have their

Speaker:

family maybe either down south in England or maybe overseas

Speaker:

somewhere. So we're trying really hard to look after them.

Speaker:

We've got a virtual pub tomorrow night at 5 o'clock where we'll all

Speaker:

share a beer and jump on a screen together.

Speaker:

Given that all the hairdressers and barbers are closed,

Speaker:

we've got a bad hair competition going to

Speaker:

see whose mop top gets ugly first. Yeah.

Speaker:

So you just try and do that kind of thing to lift spirits. But our

Speaker:

customers are being incredibly patient with us. And actually,

Speaker:

ironically, if you think about what we do, we're all about

Speaker:

providing providing sustainable food security. And so

Speaker:

without wishing to be overly opportunistic,

Speaker:

we do think there are things we can do to help. So from our

Speaker:

vertical farming point of view, being able to help to provide

Speaker:

people with a means of feeding themselves through something like this, that's

Speaker:

something we're keen to do. And then again, our

Speaker:

intelligent grid product for building lighting and

Speaker:

sensors and things, can also be used for tracking people,

Speaker:

maybe even using special types of light to work on

Speaker:

pathogens and things like that. So we think we can contribute.

Speaker:

We want to do it in a non-cynical way. And we're working with quite a

Speaker:

lot of governments now on thinking about how this might happen.

Speaker:

Yeah, that's really fascinating. And I've been thinking about that leading up

Speaker:

to this conversation because things changed dramatically in the time that

Speaker:

we coordinated the call and everything that has happened since then. And obviously the

Speaker:

nature of the promise of vertical farming

Speaker:

thinks about just these types of scenarios and how food

Speaker:

supplies can be disrupted overnight.

Speaker:

And I'm sure that's top of mind for you as well. So I'm wondering if

Speaker:

you've noticed or if you've thought about some of the solutions that

Speaker:

IGS provides and how they may be repurposed. And I know you

Speaker:

alluded to it a little bit, but I wonder if there's other ideas. What happens

Speaker:

during these times is businesses are thriving.

Speaker:

Obviously, there are businesses that are closing down and

Speaker:

suffering, but there's also opportunities during times like

Speaker:

this. And I guess, you know, without being opportunistic, but also seeing

Speaker:

how the skill set that the team has,

Speaker:

if you've thought about other ways to use those types of services for

Speaker:

what looks like it's going to be the new norm. Yeah, I mean, you know,

Speaker:

I think we probably all now would be sensible to

Speaker:

set our expectations that this might not be the last time something like this

Speaker:

happens. Viruses and pathogens, they will mutate.

Speaker:

There will be further waves of them and so on.

Speaker:

IGS is never going to replace traditional farming.

Speaker:

We just don't see ourselves having vertical banana

Speaker:

groves or fields of wheat and stuff like that. Yeah.

Speaker:

So it's important to be realistic about what we can

Speaker:

actually provide. Now, there is an increasing range of

Speaker:

crops that we can grow economically. Those economics

Speaker:

again vary enormously around the world. If I look at the

Speaker:

Far East again, 2 states adjacent to one another,

Speaker:

Indonesia and Singapore, the prices are quite radically

Speaker:

different in the supermarkets between those 2. So a range of

Speaker:

crops that is economically viable in Singapore is

Speaker:

going to be broader than a range of crops that's economically viable in

Speaker:

Indonesia. But nonetheless, Yeah. We have the ability to

Speaker:

grow the normal range of leafy greens

Speaker:

and relatively high nutrition brassicas,

Speaker:

kale, all that kind of stuff. But we've also grown

Speaker:

a number of root crops. We've grown things like radish and

Speaker:

turnip and things like that. We've grown potatoes. We are currently

Speaker:

growing chilies and lemongrass, Thai sweet basil,

Speaker:

pak choi, a number of things for that Asian market.

Speaker:

We've grown some soft fruit, at least to first fruiting stage,

Speaker:

and so on. As we continue with our

Speaker:

partners at the Scottish Crop Research Institute,

Speaker:

the James Hutton Institute, as we continue with them to

Speaker:

experiment on an increasingly wide range of crops,

Speaker:

we believe we can make a fairly significant

Speaker:

contribution to food safety or food security

Speaker:

across a widening range of crop types. So

Speaker:

somebody will make money out of bandages, somebody will make money out of drugs,

Speaker:

somebody will make money out of services, health

Speaker:

services and so on, and pharmaceuticals. That is

Speaker:

the way of life. We may make money out

Speaker:

of building, supplying, assembling, and supporting

Speaker:

vertical farms to different jurisdictions around the world.

Speaker:

I don't apologize for that. Because it's that sort of

Speaker:

innovation that can help communities and countries

Speaker:

overcome hard times like this. So we

Speaker:

don't want to be exploitative, but we do want to be helpful.

Speaker:

Yeah. In an earlier discussion I had with Louisa Burwood-Taylor

Speaker:

of AgFunder, she was mentioning the amount of investment that

Speaker:

was coming into the industry, the indoor

Speaker:

agtech. And I'm wondering if you've seen signs that that may be

Speaker:

either slowing down or picking up. given the current climate?

Speaker:

I think the general feeling is that most investors

Speaker:

are going, first of all, to look at their portfolio. They're going to do

Speaker:

some sort of an ABC analysis on their portfolio, and they're

Speaker:

going to look at the companies that are coming under the most

Speaker:

stress at a time like this and consider

Speaker:

where those companies are in their development, in their lifecycle, and

Speaker:

make decisions about whether they require additional capital.

Speaker:

At the other end of the scale, there will be other companies who

Speaker:

can help in a pandemic like this, and therefore

Speaker:

enabling them to ramp up quicker and to

Speaker:

provide resources and services and supplies

Speaker:

may be a completely different reason for putting further

Speaker:

investment in. So I think before we see a lot of

Speaker:

new and original investment, I think we will see

Speaker:

investors analyzing their portfolios and looking where they should

Speaker:

deploy capital Thank

Speaker:

you for that insight. Just maybe to take a step back, I know we jumped

Speaker:

into the conversation given, you know, where we are

Speaker:

currently, but I thought it'd be helpful for you to give a little bit of

Speaker:

background as to how you ended up

Speaker:

in this industry. I know that you come from a background of

Speaker:

innovating with your previous companies, but I thought it'd be helpful to provide some

Speaker:

context about a little bit of your backstory. Sure.

Speaker:

I fell into the tech sector completely by accident in

Speaker:

1992. I've never written a line of code in my

Speaker:

life, but I was taught leadership and

Speaker:

discovered that an awful lot of the lessons that I had applied

Speaker:

previously could be applied successfully if you were imaginative

Speaker:

and creative to building and leading teams, building

Speaker:

then great companies in the tech sector. So since about '92,

Speaker:

I have built and sold around about a dozen companies. I've

Speaker:

had a couple of failures as well, I have to say, and did an awful

Speaker:

lot of my learning during those lean times. But I

Speaker:

had got to a point where in 2016, I

Speaker:

had sold a company that was private equity backed over here

Speaker:

to business in the United States. And it was a great

Speaker:

transaction for all of us. So I was able to retire on the back of

Speaker:

that. And oddly enough, about 18 months

Speaker:

later, the son of the founder of

Speaker:

IGS phoned me up, and he in fact had been

Speaker:

one of the partners in the private equity house that had backed my previous business

Speaker:

that we'd sold, and said to me, was I interested in

Speaker:

looking at something else? After 2 or 3 attempts to say no, I

Speaker:

finally gave up because he said it was a thing called agritech, which I'd

Speaker:

never heard of, in a little town called Invergowrie, which

Speaker:

I'd never heard of, in the northeast of Scotland. And I

Speaker:

thought, oh, come on then, let's go and have a look. I'm not doing anything

Speaker:

better today. So I went up to have a look at this thing and was

Speaker:

just completely blown away. 2 aspects of what

Speaker:

IGS does that excite me. I actually trained as a chef

Speaker:

originally, although I never really practiced properly, and my wife is a

Speaker:

chef. She did practice for a long time. So, we have a love of

Speaker:

food in our family, but also I'm a mountaineer by

Speaker:

habit, and so the environment means an enormous amount to me.

Speaker:

And I have a daughter studying just such stuff at university, so it

Speaker:

runs in our family. So, something that could produce amazing

Speaker:

quality food but do so sustainably really piqued

Speaker:

my interest. It was further piqued by the fact that this

Speaker:

business was founded by a real farmer. So a chap called Sir Henry

Speaker:

Aycroft was a farmer up in Aberdeenshire, which actually is

Speaker:

where I come from originally, in the far northeast of Scotland. Henry had

Speaker:

pioneered the growing of baby vegetables, and

Speaker:

he was growing them for 2 markets: for Michelin-star

Speaker:

restaurants down in London, but he was also growing them for

Speaker:

the high-end ranges of the main supermarkets.

Speaker:

And so, you know, you would have little zucchini, maybe about 3

Speaker:

inches long, very packed with flavour, all looking exactly the

Speaker:

same and to order. So Henry's business was going very well, to the

Speaker:

extent that he wanted to try and do this 12 months of the year. In

Speaker:

the north of Scotland in the summer we get 18 hours

Speaker:

of sunlight, but in the winter of course we get almost no

Speaker:

light. So Henry needed a new source of light to do this and grow this

Speaker:

stuff inside glasshouses and polytunnels. He

Speaker:

contacted an American professor at the University of St

Speaker:

Andrews, and this chap John Allen, who sadly has passed

Speaker:

away, he and his team produced the first commercially

Speaker:

viable LED lights. And Henry

Speaker:

got together with him, and on something the size of your dinner

Speaker:

table, proved that yes, in fact, you could replicate sunlight

Speaker:

even back in those days. This is like 2013 kind of time, and

Speaker:

you could grow things successfully at that scale. But then

Speaker:

you're never going to make money growing things at that scale. So the challenge then

Speaker:

became, how do we really, really ramp this thing up?

Speaker:

And how do we perhaps even move away from glasshouses

Speaker:

and into another paradigm? NASA had

Speaker:

created, I think, the first ever model of a vertical

Speaker:

farm with a view to trying to feed people on places

Speaker:

like the moon and Mars. They had done that, and Henry said,

Speaker:

well, we can now do supplementary lighting in a glasshouse or a greenhouse, and

Speaker:

that is a product that IGS has today. But could we

Speaker:

reduce the energy levels, manage other aspects of the

Speaker:

climate other than just light, and could we remove

Speaker:

the need for quite a lot of the labor, which in certain parts of the

Speaker:

world, of course, is a big expense in agriculture? So the vertical

Speaker:

farming thing was what he then sought out to tackle, and he was

Speaker:

introduced to an amazing young man in Edinburgh

Speaker:

who has skills in mechanical engineering, electrical

Speaker:

engineering, electronics, and communications, and so on.

Speaker:

His name is Dave Scott. He is the co-founder of IGS, and he's our

Speaker:

CTO. So for the next 4 or 5 years or

Speaker:

so, Dave and Henry and a growing small

Speaker:

bunch of extremely bright people started working on the vertical

Speaker:

farm concept. They built 2 prototypes near St Andrews

Speaker:

before moving up to Invergowrie, which is just outside

Speaker:

the city of Dundee in northeast Scotland, and co-located themselves

Speaker:

very smartly, I have to say, with this James Hutton

Speaker:

Institute. So we had all of our engineering capability, our

Speaker:

R&D, and we had crop science all in the one place.

Speaker:

I met them in autumn of 2017, by which time

Speaker:

they'd gone through a series of friends and family or seed rounds

Speaker:

of investment. And I came on board basically to turn

Speaker:

what was largely an R&D project into a

Speaker:

viable commercial business. So I began to

Speaker:

recruit a team of people from my past. When you've run a whole

Speaker:

bunch of different companies, you have the great privilege of working

Speaker:

with some extremely clever people who have skills

Speaker:

that you don't have. And if you're a wise person, you will

Speaker:

recognize your limitations above all else. And so

Speaker:

I was able to pull together a really fantastic team of people,

Speaker:

probably actually a team of people that a startup like this doesn't

Speaker:

really deserve to have. And then we went out to the market to

Speaker:

try and raise an institutional round, a Series A round. And

Speaker:

we did that in 2018. So we had a business

Speaker:

plan together, began engaging the market about April

Speaker:

of 2018. We kissed a whole load of frogs, but eventually

Speaker:

we met the guys at STG, Seed to Growth Ventures

Speaker:

in Chicago. Sanjeev Krishnan, Matt Walker, and their

Speaker:

partners. We met up with them in the summer at an event in

Speaker:

New York, got on with them extremely well. It was clear

Speaker:

that they understood this market really well. So we started working

Speaker:

with them on a deal, on a term sheet, and so on. I then was

Speaker:

asked to do an interview with AgFunder for their

Speaker:

newsfeed on their website. Yeah. At the end of the interview, Louisa

Speaker:

asked me if I was aware that they were an investor. I wasn't, but I

Speaker:

was delighted to hear it. So we met Michael Dean, the founder of

Speaker:

AgFunder, got on really well with Michael. He's a lovely, lovely guy,

Speaker:

incredibly well-networked, incredibly hardworking and dedicated.

Speaker:

And so we put a little consortium together of

Speaker:

SDG, AgFunder, and then

Speaker:

the Scottish Investment Bank. So that is the investment bank of

Speaker:

Scottish Enterprise, which is the main economic development agency

Speaker:

in our country. So the 3 of them came together and it took us till

Speaker:

the spring of 2019, but we

Speaker:

managed to put together a £5.5 million Series A,

Speaker:

at which point we also met the guy from Osprey in New York. They're

Speaker:

a multibillion-dollar hedge fund. They've now created a vehicle

Speaker:

called Osprey Ag Science, and they came and topped our round

Speaker:

up to £7 million sterling. So all the time in the

Speaker:

background, the guys were continuing with the R&D. We were

Speaker:

beginning to do really serious business and market development,

Speaker:

bringing in channel partners as well as putting in together

Speaker:

a direct sales team until we got to the place where we are today.

Speaker:

We have a fully functioning technology company which

Speaker:

outsources its manufacture and assembly to third

Speaker:

parties, but then manages that value chain to deliver vertical

Speaker:

farms or supplementary lighting systems in a

Speaker:

box to any place in the world. So it's been a

Speaker:

fairly amazing 2.5-year journey so far.

Speaker:

That's a fantastic story. Thank you for providing that historical

Speaker:

context. And I think it's important for people who are new to the

Speaker:

industry to understand all the opportunities that exist, but

Speaker:

also to get a feel for someone like you who's had

Speaker:

so many success with business prior,

Speaker:

deciding that you saw enough and your interest was

Speaker:

piqued enough to engage in a brand new

Speaker:

opportunity. And to your point, in an industry that you had not heard a

Speaker:

lot about or read a lot about. And I'm interested in

Speaker:

what a little bit— you've touched it in a little bit, but your thought process

Speaker:

in terms of seeing what the potential was for

Speaker:

change on a global scale with these types of technologies that

Speaker:

we now have access to. Yeah, it's a great

Speaker:

question. And particularly now,

Speaker:

isn't it? Because if you think about it, we talked earlier about

Speaker:

empty streets. Yeah. I think people are going to reflect on how

Speaker:

they used to live, how they've had to live for what may be a

Speaker:

period of weeks or months now, what actually feels

Speaker:

better, what frustrates them. And I think we may see a

Speaker:

shift in some habits, things like how we get to

Speaker:

work, where we work, what we choose to work on. How

Speaker:

we shop, the reduction of waste, our diet,

Speaker:

all kinds of different things. It's going to be fascinating to

Speaker:

analyze what change lasts on the

Speaker:

back of this pandemic and to the degree to

Speaker:

which we're willing to invest to make ourselves prepared to

Speaker:

survive potentially another one. So, I

Speaker:

would say that the opportunities here are Huge, but

Speaker:

we also need to be super realistic. Vertical

Speaker:

farming and indoor ag in general is

Speaker:

nascent. You know, we are right in, particularly with vertical farming,

Speaker:

we are right at the start gate. This is the beginning of a marathon.

Speaker:

And anyone who tells you otherwise, frankly, is lying.

Speaker:

I've said to the press many times in the last 2 and a half

Speaker:

years, After about 3 decades in the tech sector,

Speaker:

I have never come across anything that has attracted as

Speaker:

much interest and BS, if I'm allowed to say

Speaker:

that, in equal measure. Yes. There are a lot of people

Speaker:

telling a lot of lies in this industry about what

Speaker:

they are capable of, what is economically possible, what is

Speaker:

environmentally achieved so far, and so on. And

Speaker:

my big fear for this industry is that we have some

Speaker:

large failures. There have already been numerous failures in the

Speaker:

Middle East. I fear that there may be failures in North

Speaker:

America, and that does not make me happy. It doesn't make me

Speaker:

wring my hands with glee at the thought of another company going under,

Speaker:

because all that is going to do is make people scratch their

Speaker:

heads and ask themselves, is this ever going to get real? Is this ever going

Speaker:

to be a grown-up industry? Are reliable in industry. Because

Speaker:

if we're talking about sustainable food security, think about the word

Speaker:

sustainable, think about the word security. That is not

Speaker:

about being flash. It's about being reliable,

Speaker:

producing a quality product day in, day out

Speaker:

at the right price, at the right quality. So I think

Speaker:

that the industry needs to take a hard look at itself

Speaker:

and do a bit of growing up. And I read and hear and talk

Speaker:

with an increasing number of commentators and participants in this

Speaker:

industry who feel exactly the same as I do.

Speaker:

So we're going to be— one of the things we're going to be doing is

Speaker:

openly publishing our data across a range of crops.

Speaker:

What's the energy consumption? What's the water consumption? What

Speaker:

nutrients are we using? But we have already achieved a

Speaker:

few things I'm extremely proud of. We had a visit from the Scottish

Speaker:

Environmental Protection Agency not that long ago. And the

Speaker:

comment that the chief exec made was, Well, our job is to

Speaker:

license industries to allow them to carry on their

Speaker:

business, but to limit the amount that they pollute or discharge

Speaker:

or whatever within the law. He said, you are

Speaker:

venting nothing to the air. You are putting nothing into the ground.

Speaker:

You're putting nothing into the watercourse. We don't have a job to do

Speaker:

here. You know, this is a completely closed-loop system that you've

Speaker:

designed. Wow. And so it is a zero polluter.

Speaker:

And if you're using renewable energies, you're not using any hydrocarbons

Speaker:

either. And then you have to think, well, where can we put these

Speaker:

things? So one of our vertical farms simply requires

Speaker:

a small square of flat ground. It can be

Speaker:

concrete, it could be tarmac, it could be waste ground. It really

Speaker:

doesn't matter. But it should never be, in my opinion, arable

Speaker:

land. The arable land should be left for the real farmers to be

Speaker:

going out there and growing our staple crops. So what we should be

Speaker:

doing is locating our vertical farms approximate to

Speaker:

points of consumption or points of production. Whether we're

Speaker:

producing food for end users, for retail wholesale,

Speaker:

for food manufacture, we should be

Speaker:

collapsing that food chain. So as we then reflect

Speaker:

upon the fact that the bridge between Singapore and Malaysia is now

Speaker:

closed, and Singapore is now going to struggle to bring in fresh

Speaker:

produce, if Singapore had a bunch of vertical farms

Speaker:

in its port area or next to Changi Airport or wherever,

Speaker:

then it would be possible for them to grow at home a

Speaker:

significant amount of the produce. Indeed, that's their strategy. They want to

Speaker:

grow 30% of their produce by 2030,

Speaker:

but they need the right technology to be able to do that. So I think

Speaker:

that getting a really high-quality supply of crop

Speaker:

on a reliable basis and co-locating things as

Speaker:

close as you can to shorten the food miles, these are

Speaker:

massive opportunities for this industry. It's so fascinating and so

Speaker:

relevant given everything that's happening. And I imagine your

Speaker:

phone probably has not stopped ringing with people

Speaker:

accelerating any plans that they might have originally had that were

Speaker:

maybe 2 or 3 years down the line and understanding

Speaker:

that what we've been going through now is all the more reason to start thinking

Speaker:

about this as a sooner rather than later discussion.

Speaker:

Is that some of what you're seeing as well? Yes, we're working with

Speaker:

groups, some of them commercial, some of them

Speaker:

governmental at the moment, ranging from

Speaker:

places like Jakarta in Indonesia,

Speaker:

Singapore, Australia, New Zealand, all the

Speaker:

way through the Middle East. So I would say that

Speaker:

Southeast Asia and Australasia are reasonably

Speaker:

hot. I would say that there is some interest

Speaker:

from Japan. I would then say that the

Speaker:

Middle East and India, we both have some fairly

Speaker:

significant inquiries from and are designing

Speaker:

projects with. We have a range of them across Europe. We

Speaker:

have a couple in the Caribbean. And then we

Speaker:

are talking with some people in North America. But

Speaker:

I think what's hit your country, particularly in the USA and to an

Speaker:

extent Canada, More recently, actually, I would say that

Speaker:

Canada for us is more lively than the USA. I think the

Speaker:

USA, from what I see, is reeling a little bit at the

Speaker:

moment, and I think is looking for clear and honest

Speaker:

leadership as to what the real status is and what should be

Speaker:

done next. So I think the level of interest we've got is

Speaker:

following the pandemic, if that makes sense. It's a kind of a wave behind the

Speaker:

wave as people put their heads back above the parapet,

Speaker:

they're kind of going, hell, what are we going to do

Speaker:

about this? And of course they have all kinds of things to deal with,

Speaker:

not just food. And so governments are having to deal with multiple

Speaker:

different things like healthcare, like transport and so on and so on.

Speaker:

Given the customer types that you're working with,

Speaker:

they essentially break down into the 4 of the existing

Speaker:

indoor Farmers who want to add the technology to their current

Speaker:

operations, those that are looking to actually break into

Speaker:

urban farming, and then you have the supply chain businesses,

Speaker:

the wholesalers and retailers who want to control their supply of food, and then obviously

Speaker:

governments looking to improve their food security. I'm wondering

Speaker:

if across those range of customer types, you've seen

Speaker:

an opportunity where accelerating the development

Speaker:

could get some of those movements happening faster. Yes, I

Speaker:

would say that we have seen

Speaker:

more interest from governments. So yes, if

Speaker:

we balance those 4 out, governments were probably the least

Speaker:

active, say, 2 months ago. They're now becoming one of the more

Speaker:

active. I think at the moment, so if you

Speaker:

break consumer-facing businesses into

Speaker:

retailers and wholesalers who supply the retailers on one

Speaker:

hand, along with food producers,

Speaker:

they are both absolutely thriving at the moment because

Speaker:

everyone needs to eat. The place that has gone totally

Speaker:

dead is a combination of what we'd call contract catering. I

Speaker:

think you call it food service. Is that right? Yes.

Speaker:

And then hotels, restaurants, pubs, cafes,

Speaker:

they're just shut over here at least. So that

Speaker:

side of things has gone obviously totally quiet.

Speaker:

The real farmers, the guys who work the fields, who were looking

Speaker:

to diversify, I would say that they are

Speaker:

probably a little quieter at the moment

Speaker:

because I think what they're doing is concentrating on

Speaker:

their own production. We're just coming into spring here. So it's

Speaker:

a really important time. I live in a rural, I live in a farming community.

Speaker:

All the farmers around where I live are having their lambs.

Speaker:

The dairy farmers are obviously doing their thing. The cereal

Speaker:

producers are looking forward to spring, you know, and then the shoots

Speaker:

beginning to grow. So those guys are probably thinking somewhere else. The

Speaker:

urban farmers definitely see an opportunity. So

Speaker:

I would say urban farming, governments, and

Speaker:

the retail wholesale food production end

Speaker:

of the consumer-facing piece That's where we're seeing most of our

Speaker:

activity at the moment. And I would say that I would

Speaker:

expect that to morph again once we're at the other

Speaker:

end of this in maybe another 6 months' time. How

Speaker:

fast do you see the changes happening when it

Speaker:

comes to the technology as well? Because I know that a

Speaker:

lot of what IGS provides, the benefit of it is that it is

Speaker:

modular and it can be adapted to a wide range of

Speaker:

environments. So Do you see also a push from the

Speaker:

technology side in terms of, obviously you mentioned the efficiency

Speaker:

of LEDs, but anything else that comes to mind in terms of even

Speaker:

robotics? I know there's, I've seen some information about new

Speaker:

arms made for picking even more sensitive

Speaker:

types of foods and what you're seeing from your end.

Speaker:

Yeah. So let's break it down into 2

Speaker:

or 3 areas, if that would be helpful. There is the— Yes.

Speaker:

Right. So first of all, let's talk about the weather and the climates that

Speaker:

we create. The best way to think about weather is as a

Speaker:

3-dimensional object, the 3 dimensions being the wind, the

Speaker:

sun, and the rain. So we have a ventilation system for the wind,

Speaker:

we have lighting system obviously for the sun, we have

Speaker:

an irrigation system for the rain, which also

Speaker:

actually doubles up as the supply of nutrient

Speaker:

in part because we don't want to be spraying our crop with

Speaker:

unnatural stuff. And there is no— we're not getting the

Speaker:

same kind of nutrients as you would probably be putting into soil. So

Speaker:

sun, the wind, and the rain, each one of them has multiple

Speaker:

factors, maybe 8 to 10 important factors.

Speaker:

Each one of those factors, and if we take light as an example, you

Speaker:

have the intensity of light, you have the brightness, you have the

Speaker:

spectrum, you have the photonics, You

Speaker:

have the length of the light, you have the various

Speaker:

other aspects. Each one of those factors can have an

Speaker:

almost infinite number of values. So the

Speaker:

mathematics to calculate, if I am looking

Speaker:

at 2-month-old strawberry plants that are

Speaker:

just fruiting, what is the absolute optimal light

Speaker:

that that crop needs on that day? That is big, big

Speaker:

mathematics because you're then adding in the ventilation. In where you're

Speaker:

thinking about the volume of air, the flow of air, the temperature, the

Speaker:

gas mix, blah, blah, blah, blah, blah. And then you're thinking about the

Speaker:

irrigation, how much water, at what temperature, any

Speaker:

salinity, pH values, what nutrients are going into it.

Speaker:

You're multiplying all these things together. So the first really crucial thing

Speaker:

is to have total control of that climate.

Speaker:

And if you are growing vine tomatoes and basil, then

Speaker:

you had better be able to replicate real weather in Tuscany

Speaker:

between May and July. And if you can't do that,

Speaker:

then you're not going to be able to optimize and you're going to be using

Speaker:

far too much energy and all that kind of stuff. So that's the

Speaker:

first main thing. Within that weather system,

Speaker:

I think, I mean, the LEDs are now what, 60%, 70%

Speaker:

efficient? We use— Yeah. 5 different colors. We

Speaker:

use a red, a far red, a green, a blue, and a white. And with

Speaker:

that lot, we can mix and change the brightness as we need to. So we

Speaker:

can make nighttime that's not black. It is nighttime, which is

Speaker:

ambient light. We can make sunrise. We can make 18 hours of

Speaker:

perfect Tuscan sunshine, and we can make a sunset. And

Speaker:

the only reason we could do that is because of a fundamental piece of physics

Speaker:

we have, which gives us a level of control that no other system in the

Speaker:

world has. And we've patented that. But the one that

Speaker:

people overlook because it's just really hard, is

Speaker:

ventilation. So I told you earlier that we vent nothing

Speaker:

to the air, but we bring air in at the beginning

Speaker:

of the process of growing crops. So once we've— let's say we built

Speaker:

a farm in the Arizona desert, we'd bring air in at probably 50 degrees

Speaker:

Celsius, and we'd then cool that down to

Speaker:

about around about 20 degrees, and we'd maintain

Speaker:

that air between roughly 16 to maybe 25 degrees.

Speaker:

Throughout its life. That air starts with a

Speaker:

certain humidity, a certain mix of gases, and a certain

Speaker:

temperature. We have to then create a really even flow

Speaker:

across the top of our crop. We have to then manage the gases. We

Speaker:

have to manage the humidity. We have to manage the temperature.

Speaker:

And I would argue that from the work I've seen our team do,

Speaker:

that designing HVAC and designing the ventilation system

Speaker:

presents some of the biggest challenges in indoor farming,

Speaker:

especially if you're going to be closed-loop, environmentally sound, and

Speaker:

minimize your energy use. So that for me is a massive one.

Speaker:

So that's the weather. The next one we need to think about

Speaker:

really is the handling. So we use a racking system.

Speaker:

One of Dave Scott's real specialties is these racking systems

Speaker:

for very large warehouses. And in our racking

Speaker:

system, we hold our trays at about

Speaker:

roughly 1 foot apart or so, and

Speaker:

30 centimeters, 12 inches kind of thing. Because of the control

Speaker:

we have, we can actually have a microclimate on each

Speaker:

tray. And a tray is about 6.25 square

Speaker:

meters. It's about the size of a professional snooker table, maybe double the size

Speaker:

of a pool table. Okay. Each tray can be 6

Speaker:

degrees Celsius separate from the tray above it and the tray

Speaker:

below it. So even though they're stacked so close together, each

Speaker:

one really does behave as a microclimate. And in fact, we can

Speaker:

grow 6 or 8 different crop varieties on a single tray

Speaker:

if that is what is required. Wow. And that's not something you see. You

Speaker:

look at the photos of most systems that you will see, and they're

Speaker:

monocultures. They're growing one thing. They're growing kale, or they're growing lettuce, or they're

Speaker:

growing a herb or something. So that

Speaker:

physical control is extremely important. The handling of the

Speaker:

trays, how you move the trays up and down,

Speaker:

how you stack them. Once you have seeded the trays, the

Speaker:

automated handling of putting them away into the system. And

Speaker:

then when they are ready for harvest, how you extract them from

Speaker:

the system, how you pick them. and how you bring them out through the

Speaker:

airlock. And that's another thing. When you look at a lot of these,

Speaker:

the photos on people's websites, they think it's really smart to

Speaker:

show people wearing lab coats or white boiler suits with

Speaker:

hairnets and masks. Yeah. And the sunglasses, right?

Speaker:

Of course. Of course. So we think it's actually a bit smarter not to have

Speaker:

humans anywhere near the dam crop at all, because guess how

Speaker:

pests get in? You know, they're carried in by us.

Speaker:

So, let's have the robots do the work. Let's not put the humans in.

Speaker:

You know, occasionally we might have a maintenance event where you do need to

Speaker:

empty one of the towers and, you know, do some maintenance work.

Speaker:

But, you know, given the monitoring we've got through our software,

Speaker:

that's all completely predictable. So, having that ability

Speaker:

to mechanically handle and take the human beings out of

Speaker:

the the actual growing space itself, we think is

Speaker:

enormously beneficial. It means that we can operate with

Speaker:

zero pesticides and not have any rates of

Speaker:

infection at all either. That in turn means that

Speaker:

you don't need to wash the crop. So all the lettuce that you eat, you

Speaker:

buy in the supermarket, has been washed in chlorinated water. We don't need to do

Speaker:

that. And the supermarkets over here in the UK, the big food

Speaker:

retailers have estimated that that is going to double the shelf life of

Speaker:

most crops. Wow. There's

Speaker:

so much fascinating information there. And I think the more you dig

Speaker:

into the benefits of everything you outlined, I know a lot of

Speaker:

people do think about the replication of the sun and the rain, but I think

Speaker:

this aspect of the wind as you outlined it and as that relates

Speaker:

to ventilation is something that not a lot of people think about.

Speaker:

When it comes to environmental impacts and how

Speaker:

when people think of lighting, they simply think of replicating daytime.

Speaker:

But what you just outlined there about the differences

Speaker:

in the type of light that exists at nighttime and at

Speaker:

sunset and how that actually affects the cycles that a

Speaker:

crop would go through in an outdoor environment, all of

Speaker:

that is just incredibly fascinating. And it's It seems like

Speaker:

you're so much more ahead of the curve in terms of thinking about these things.

Speaker:

Well, and when it comes to things like climate, you also have to think not

Speaker:

just about the diurnal pattern from night to day and so

Speaker:

on, but you also have to think about seasons and you have to think

Speaker:

about geography. Are you in a temperate zone? Are

Speaker:

you in a tropical zone? Are you next to an ocean?

Speaker:

Are you continental and far inland? Therefore much drier.

Speaker:

You know, different crops grow in very different environments.

Speaker:

And, you know, people say variety is the spice of life. Well,

Speaker:

you know, it really is. And, you know, all the things that grow naturally

Speaker:

probably can't grow somewhere else because they're not going to get the climate that they

Speaker:

need. So if we're going to grow a serious variety of crops,

Speaker:

not just leafy greens, we have to be able to replicate multiple

Speaker:

different climate types. Yeah, this is incredibly,

Speaker:

incredibly fascinating. And I want to be respectful of the time too.

Speaker:

So as we wrap up, David, I'm wondering if I

Speaker:

could just ask a slightly different question just to get some thoughts

Speaker:

going around your head. As it relates to this industry, what's something

Speaker:

you've changed your mind about recently? I do not think there is

Speaker:

such a thing as a global food

Speaker:

market. I do think that we

Speaker:

move 72%, or I know that we

Speaker:

move 72% of everything we eat

Speaker:

transcontinentally all the time. It's amazing. It's

Speaker:

like it's a hidden industry flying or shipping

Speaker:

food around the world. There's a brilliant website, an

Speaker:

organization called the CIAT, which has

Speaker:

some absolutely wonderful graphics about this. So that

Speaker:

aspect of it is global because we're growing things out of

Speaker:

season in Peru for consumption in

Speaker:

Scotland. Blueberries, for example. Yeah. Should we be eating blueberries

Speaker:

in the winter? But I do not believe

Speaker:

that there is a global consumption market. I

Speaker:

increasingly believe that there are regional and

Speaker:

local markets. I think that the economics varies

Speaker:

enormously, the diet, the choice of food.

Speaker:

And therefore, if you are going to produce a

Speaker:

technology solution to growing food, which

Speaker:

can be applied everywhere around the world, it had

Speaker:

better be highly flexible. It had better be

Speaker:

modular to fit in different sizes of space. But it had

Speaker:

better be flexible enough to grow everything

Speaker:

from a pea shoot to a chili to

Speaker:

a turnip to a strawberry. Otherwise, I think you're going to

Speaker:

be irrelevant. So that is my firm opinion. Well,

Speaker:

David, I want to thank you for educating my audience on

Speaker:

what's currently happening and how it's so relevant, what

Speaker:

it is that you're doing at IGS is for the current environment that we find

Speaker:

ourselves in. And I find it incredibly inspiring what it is

Speaker:

that you're doing and what the team is doing. And I think there's a

Speaker:

huge potential to make a dramatic shift in how we think about

Speaker:

how we deliver food and how we provide food in areas,

Speaker:

especially speaking to everything you've covered around the factors that go

Speaker:

into raising these types of crops, that this can

Speaker:

exist in almost any environment given the right planning. And I think

Speaker:

The potential for what that holds is really promising.

Speaker:

So I appreciate you sharing that with us. You're very welcome. I've

Speaker:

thoroughly enjoyed this. They've been great questions. I believe this is

Speaker:

important stuff. Yeah, I agree wholeheartedly. And so we'll

Speaker:

provide all the links that you mentioned in the show notes. Is there any

Speaker:

place that you're active online or if people wanted more information on

Speaker:

IGS and to follow along the journey? So

Speaker:

there's igs.farm, our main website, but we

Speaker:

post a lot of stuff on LinkedIn. We have a Twitter feed

Speaker:

and so on. It's fairly easy to find us, or at least I'm now

Speaker:

talking to my marketing department. I hope it's really easy to find us.

Speaker:

So yeah, and we're posting stuff every

Speaker:

couple of days as things develop. So I just want to thank you again for

Speaker:

coming on. I appreciate you taking the time to talk about this,

Speaker:

especially in light of everything that's happening in our world now. Well,

Speaker:

Harry, it's been great. Good to talk to you. And I hope this is useful

Speaker:

as you build your business. Once again, thanks to our

Speaker:

sponsor IGS. To learn more, please visit

Speaker:

intelligentgrowthsolutions.com. Thanks for listening. To

Speaker:

read the full show notes for this episode, which includes any links

Speaker:

mentioned in the episode, as well as a full show transcription, visit

Speaker:

verticalfarmingpodcast.com. There you can sign

Speaker:

up for our email list to be notified when new episodes are published.

Speaker:

$680 million poured into precision ag last year.

Speaker:

Autonomous weeding robots dominated, and John Deere made 2 acquisitions in

Speaker:

3 months. A food company, not an equipment maker, bought a

Speaker:

robotics startup to protect its own supply chain. The deals are

Speaker:

accelerating, the money is moving, and the winners are already separating from the

Speaker:

pack. If you're investing, building, or buying in this space,

Speaker:

you need the full picture before your competitors get it. The 2025

Speaker:

Precision Agriculture Intelligence Report from iGrow News is now

Speaker:

available. Get your copy today at

Speaker:

igrownews.com/precision.

Links

Chapters

Video

More from YouTube