In a significant move to address global food security challenges, a U.S.-based agri-tech startup has established a subsidiary in Japan and plans to commence operations at the Open Innovation Centre in Tokyo later this year. This initiative, backed by government grants and prominent investors such as NTT and Mizuho Bank, aims to position the company as a forward-looking model for tackling issues related to climate change and supply chain disruptions.
The Open Innovation Centre is envisioned as a blueprint for vertical farming, a technology that could be scaled across major cities worldwide. However, the complexities involved in setting up these systems have been a significant hurdle. Currently, the company’s engineers individually tune each element, from air conditioners to lighting systems, making the setup highly specialized and non-replicable. To overcome this, the company is working towards developing a solution as simple and modular as assembling IKEA furniture. This would allow local construction teams anywhere in the world to install and operate these farms without needing highly specialized engineers on site.
Japan was chosen as the location for the Open Innovation Centre due to its unique strengths in both agriculture and industrial technology. The country offers an abundance of excellent seed varieties and deep agricultural know-how, combined with advanced technology in robotics, aeronautics, LED technology, and IoT integration. Moreover, the cost structure in Japan for developing and testing these technologies is comparatively lower than many other countries, making it an ideal location for the company’s R&D hub.
The company is also making strides in strawberry cultivation, particularly with its “Omakase berry,” a unique variety native to Japan. Unlike strawberries commonly grown in Australia or the United States, the Omakase berry is cultivated indoors during the winter months, resulting in berries that are far sweeter and more delicious. The company’s innovation lies in its ability to reproduce this Japanese-style strawberry cultivation in the United States using vertical farming technology. This allows them to grow premium Japanese strawberries outside Japan, optimizing the environment for each strawberry variety to consistently reproduce the peak flavor and quality that Japanese consumers expect.
Beyond strawberries, the company is exploring other crops and fruits, although the immediate challenge is the enormous demand for their strawberries. The global strawberry market alone is worth around $30 billion annually, and capturing even a fraction of that would be a massive undertaking. The company’s long-term plan includes expanding into other vegetables and eventually staple crops, but this will require significant time and a reduction in electricity costs.
In terms of pricing, the company’s vision is to democratize vertical farming technology and achieve price parity with conventional farming while delivering superior quality and experience. Currently, their most affordable product retails at $7.99, available in over 100 stores. The goal is to further reduce this price in the future, all while maintaining consistent quality and pesticide-free assurance.
For the foreseeable future, up to around 2030, the company will continue to be viewed as a premium brand, with food enthusiasts and health-conscious parents as their primary customer base. As the technology becomes more accessible and costs decrease, the company aims to make vertical farming the new agricultural standard, addressing global food security challenges in a sustainable and efficient manner.