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/
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2025 Precision Ag Report by iGrowNews
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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.
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