Presentation on theme: "Up Up and Away! The Economics of Vertical Farming Chirantan Banerjee, Lucie Adenäuer and Stephan Rickert."— Presentation transcript:
Up Up and Away! The Economics of Vertical Farming Chirantan Banerjee, Lucie Adenäuer and Stephan Rickert
Content Global situation Design of the Vertical Farm Facts and Figures SWOT Analysis Market Analysis Outlook 2 firstname.lastname@example.org
Global situation: where do we stand? 3 We need local food production technologies 38% of all land is used for agriculture 11% arable 1 billion still undernourished thereof 42% in India and China In rich countries, people spend 10% of their income on food, this is 50% in case of poor countries FOOD IS NOT BEING PRODUCED WHERE REQUIRED AND SUPPLY CHAIN IS NOT WORKING We need technology to adapt to consumer choice Striking difference between rich and poor consumer needs Increasing demand for especially protein rich diets THIS IS EXPECTED OF ALL COUNTRIES ON THE DEVELOPMENT BANDWAGON
email@example.com 4 Population Trends Source: Population Division of the Department of Economic and Social Aairs of the United Nations Secretariat. World Urbanization Prospects: The 2007 Revision.
firstname.lastname@example.org Possible Solutions 5 We need to produce 100% more food! 2% increase of agricultural land expected until 2040 20% more food Another 10% is expected from increased cropping intensity Problem of land use for fuel How do we reach the missing 70% ?
email@example.com 6 Vertical farming is a system of commercial farming Plants, animals, fungi and other life forms are cultivated for food, fuel Plants are artificially stacked vertically above each other Through Controlled Environment Agriculture Design of Vertical Farms
firstname.lastname@example.org 13 Facts and Figures
email@example.com 14 Facts and Figures
firstname.lastname@example.org 15 Cost Scenarios Building Parameters with Salvage Value without Salvage Value Production Parameters Mechanised Manual Production technology Aeroponics Elevated CO2 Normal Fixed Cost Margin High 30% Medium 20% Low 10% Variable Cost Margin High 30% Medium 20% Low 10% Facts and Figures Cost of producing edible biomass is around 3.17 €/kg Worst case: 6.32 €/kg Probability distribution of costs per kg biomass
email@example.com 16 INTERNAL ANALYSIS STRENGTHSWEAKNESSES Industrialisation of AgricultureSpace Independence from External ThreatsLight Energy generationWater EnvironmentEnergy Balance EXTERNAL ANALYSIS OPPORTUNITIESTHREATS Consumer preferenceSceptisism Climate change & Environmental concernsExisting patents Race for food soveriegntyLimited market Renewable EnergyPrice and subsidies SWOT Analysis
firstname.lastname@example.org 17 Criteria: Population above 5 million Per Capita income above $ 20,000 p.a. Market Potential Short Term Market Potential Long Term Market Potential N = 47
email@example.com 18 Economic research is required to ascertain: The energy balance The cost of production Linear programming of optimal cultivation strategy for cost minimisation The cost benefit analysis Consumer studies A comprehensive market analysis with identification of potential candidates Outlook More Ideas?
http://www.ilr.uni-bonn.de/pu/publication/Publikationen/vertical_farming.pdf C HIRANTAN B ANERJEE, L UCIE A DENÄUER AND S TEPHAN R ICKERT Institute for Food and Resource Economics, University of Bonn, Germany firstname.lastname@example.org T HANK Y OU !