This Week's Top 10 News Articles - May 6th

Good morning readers, acquisition, funding rounds, financial reports and much more!

Here are the top 10 controlled environment agriculture news articles of this week:

1- BFG Acquires CEA leaders, Green-Tek

BFG Supply, a leading technology-enabled distributor to the green industry, has acquired Green-tek, a leading provider and manufacturer of greenhouse components. The acquisition of Green-tek significantly expands BFG’s greenhouse offerings and product selection that will further improve service levels to customers in the horticulture market. The combined company operates 20 warehouses across the US and Canada totalling more than 1.3 million square feet.

“Green-tek is a leading company in the greenhouse market and BFG is proud to partner with Paul Jacobson and the entire team at Green-tek. Both companies share a strong commitment to the horticultural industry and the combination will allow us to better service customers through improved product offerings and a more efficient supply chain,” says Dave Daily, President and CEO of BFG.

“Green-Tek is excited to become a part of the BFG family and we’re confident this combination will benefit our employees, customers and suppliers,” says Paul Jacobson, President of Green-tek. “We are very proud of the company we have built over the past 35 years and the support of an industry leader like BFG will allow for continued investment long into the future.”

2- Infrascreen Banks A USD 1.5m For Its Efficiency-Boosting Greenhouse Nanomaterial

Swiss startup Infrascreen has raised $1.5 million in funding for its nanotech-enabled ‘smart material’ that can be used to control climatic conditions in greenhouses.

• Investbridge Capital and ACE & Company co-led the seed round.
• Infrascreen will use the proceeds to “deploy pilot units with our prospective clients” in the commercial greenhouse space, CEO Henri Lalande tells AgFunder News.

Infrascreen co-founder Benoit de Combaud was “convinced that the major challenge in the greenhouse industry is the energy issue” at his previous venture, greenhouse tech company CleanGreens, Lalande says.

3- AppHarvest (NASDAQ: APPH) Reports Record Sales For Q1 2022 & Aims To Quadruple Farm Network

For the first quarter of 2022, net sales were $5.2 million on 6.9 million pounds of tomatoes sold with a net sales price of 75 cents per pound versus net sales of $2.3 million on 3.8 million pounds of tomatoes sold with a net sales price of 61 cents in the first quarter of 2021. This approximately 125% improvement in year-over-year Q1 net sales was driven by higher overall production and expanded product variety at the Morehead farm, which was not fully harvesting in the first quarter of last year based on the phased opening of the facility, and continued operational ramp-up, including enhanced training and productivity improvements resulting in a more favourable ratio mix of USDA No. 1 grade (“premium”) and non-premium tomatoes.

In line with expectations, while investing in quadrupling the farm network, the company recorded a net loss of $30.6 million and a non-GAAP Adjusted EBITDA loss of $18.0 million in the first quarter of 2022, compared to a prior year's net loss of $28.5 million and non-GAAP Adjusted EBITDA loss of $12.4 million. 

AppHarvest is on track to quadruple its number of farms by the end of the year and to diversify its produce portfolio to include salad greens and berries. The 15-acre Berea, Ky., salad greens facility is approximately 79% complete. The 60-acre Richmond, Ky., tomato facility is approximately 75% complete. A 30-acre Somerset, Ky., berry facility is approximately 65% complete. Starting with the Berea salad greens facility this summer, we expect to implement a phased approach that brings on additional productive acreage at each farm over time, with all three new farms expected to be fully operational by the end of 2022. Construction of a fifth farm, the Morehead salad greens facility, remains paused contingent upon financing.

4- OneFarm To Deliver A 6,400 SQM Vertical Farm In The UK, In Partnership With Intelligent Growth Solutions

OneFarm has announced its plans to deliver a 6,400m2 vertical farm in Newmarket, Suffolk, capable of growing up to 415 tonnes of food per annum to feed local people. The farm will be delivered in partnership with indoor agritech specialist, IGS Limited, and is funded by both public and private investors.

OneFarm will work alongside Suffolk County Council (SCC) and New Anglia Local Enterprise Partnership (NALEP) to deliver the indoor farm, construction of which is scheduled to commence later this year, with funds raised through Abundance Investment. The farm will play a significant role in the LEP’s development of its ‘Clean Growth’ ambitions for the region.

IGS CEO, David Farquhar, commented: “OneFarm’s consumer-centric approach to growing and distribution reflects an evolving consumer desire – to really know and understand where their food is coming from and ensure availability and quality of produce. Across the world, the focus on environmental and economic sustainability has increased dramatically in recent years, accompanied by the imperative need for food security.

5- Agritecture & TENSOAI Partner To Build Crop Models For More Predictability On Farms

The duo is currently working in partnership to develop predictive models for hops yield and alpha acid content for the Saaz hops variety as part of the For Hops project.  

The development of this crop model will help the entire hops industry in numerous ways:  

• Farmers benefit by having reliable models to predict pivotal outcomes for their business. They also have guidance on how to allocate critical resources, such as water, and how to utilize management practices to increase both yield and alpha acid content.
• Hops processors benefit by having a clearer estimate of what regional yields will look like, allowing them to schedule labour and equipment appropriately.
• Brewers benefit by better understanding their supply chain and allowing them to make contingency plans for additional raw materials as needed.  

To build these models, data is coming from numerous sources including farmer-reported data from pilot farms, camera images, sensor data generating environmental and soil data, real-time plant monitoring data, historical weather data, and satellite imagery. The project uses on-farm sensor data to help “calibrate” data coming from satellite imagery so the models can extend far beyond the locations where sensors have been installed.

Commenting on the new partnership, Agritecture's lead agronomist, David Ceaser says:

“Our goal is to expand the work to other crops and environments. Farmers face more and more uncertainty related to weather, precipitation, disease and yields. Any tools we can build to help them have a clearer picture of the future will help ensure farmer livelihoods and food security.”

6- New FDA Reports Outlines The Danger Of Potential Contamination In Hydroponic Facilities

Following the salmonella outbreak last summer, the FDA conducted a research to identify the root cause of the outbreak that has affected 31 people last summer following the consumption of leafy greens produced in a controlled environment agriculture facility.

The investigation did not result in the identification of the specific source or route of contamination of the leafy greens. However, the agency identified certain conditions and practices that could result in contamination, including the presence of a different serotype of Salmonella in pond water used to grow the leafy greens, growth media storage practices, water management practices, and general sanitation practices at the CEA that were inadequate to prevent the introduction or spread of microorganisms of public health significance into the leafy greens.

7- Blair Institute Report Suggests Cities Should Aim To Produce 30% Of Fruits And Veggies In The Future

According to a new report from the Tony Blair Institute for Global Change, cities and suburban areas across the world should work toward producing 30 per cent of the nation’s crops by 2030. They say it is possible, given the emergence of new technologies which eliminate factors such as the health of soil and weather.

“It is estimated that by 2050, two-thirds of the world’s population will live in cities and will consume 80 per cent of all food produced,” the authors write. “Cities must leverage technological innovations – particularly indoor vertical farms, greenhouses and precision-farming tools – to feed their growing populations.”

8- Urban Crop Solutions Starts Collaboration With Canadian Agronomist To Support Local Projects

Urban Crop Solutions has signed a new agreement with local Agronomist Advisory Company, Châtaigner Agricole Inc., to support local projects in the Central and Eastern Canadian Provinces. Based in Quebec, the local advisory is set to represent Urban Crop Solutions with their local prospects, and support customers with their biological, technical, and locally tailored business planning needs in both local languages.

Due to international growth, and increasing demand from the North American market, Urban Crop Solutions has appointed Quebecois Agronomist Advisory, Châtaigner Agricole Inc. as their local representation. The consultancy, led by an experienced agronomist, Edward Castaneda, is specialised in vertical farming, controlled environment agriculture, and crop research and development. With over twenty years of experience in the field, Edward Castaneda moreover has qualifications in soil science and agronomy, as well as in medicinal cannabis cultivation and pharmacology.

9- Green Bronx Machine Is Proud To Announce Partnership With NYC Department of Housing Preservation

The New York City Department of Housing Preservation and Development (HPD) joins NYC Housing Authority (NYCHA) and the NYC Housing Development Corporation (HDC) today to announce plans to build approximately 195 deeply affordable homes for seniors in the neighbourhood of Morrisania Bronx. The Sol on Park development will give rise to a 15-story mixed-use building paired with a new community health centre, a nutrition education facility, and career-training spaces accessible to residents and the community at large.

10- Kalera Announces First Harvest of Lettuce and Microgreens at New Denver Vertical Farm

Kalera, one of the world's leading hydroponic indoor vertical farming companies, is celebrating its first harvest of lettuce and microgreens at its new, Aurora, Colorado-based farm located at 18000 E 40th Avenue. The nearly 90,000-square-foot facility will provide Coloradans with 15 million heads of locally grown, nutrient-dense greens every year.