Professional Documents
Culture Documents
Also, in many regions, climate makes it impossible to meet consumers’ year-round needs for locally grown
produce. This creates the need for produce to be imported into the United States from regions such as
Mexico, Netherlands, and Israel.
Growing indoors through CEA provides consumers access to food with significantly less pesticides or
chemicals for successful growth. In fact, most CEA operations use beneficial insects (i.e., insects that
fight the pests posing threats to crops). Using these insects allows you to keep pest thresholds at bay
throughout the growing season.
Reducing the impact of recalls is another benefit of CEA. When recalls happen in our food system, CEA
offers the ability to perform them in safer, more effective ways. Plants grown within a controlled environment
are easily traced and if any negative occurrence happens during the maturation process, it can often be
found quickly.
Furthermore, energy requirements for transport are significant. Transportation relies on liquid fuels — the
price of which is predicted to rise faster than the general inflation rate. Interest rates on fuel prices rose
about five times throughout last year alone.
Production in CEA facilities relies on electricity and natural gas — the prices of which are predicted to
rise no faster than inflation. These factors suggest CEA production of fresh vegetables can become a
significantly greater component of commercial agriculture in the coming decades.
As mentioned earlier, local production in CEA facilities can also require significant energy inputs for
heating, venting, and possibly supplemental lighting. Studies suggest the (non-solar) energy required
to grow and transport fresh produce at least 1,000 miles is equivalent to the energy required for local
production within CEA facilities in cold and cloudy climates, such as in the Northeast and upper Midwest.
When you take all this into consideration, it makes sense to keep a CEA facility closer to where you sell
the crops, rather than importing from elsewhere.
WHAT ARE THE COST CONSIDERATIONS FOR RUNNING A CEA
FACILITY?
You have many factors you must consider when evaluating the costs of running a CEA facility. The first
step is to ensure your facility is compatible with your grow system design. From there, you can determine
all other requirements for operating your facility.
Labor is the biggest factor to consider when investing in a CEA facility because it’s the largest cost.
Certain crops require more labor than others. Yet those that require less physical labor often require more
funding for finding and installing fully automatic equipment.
In greenhouses that host fully automated equipment, you need laborers who have technical and
engineering skills to maintain the machinery. Management is also crucial to the operation’s success. A
head grower with labor management experience and properly trained management teams can greatly
advance a start-up operation for success.
Aside from utility and labor costs, another huge factor to consider is annual consumable costs. Large
CEA operations require an enormous amount of nutrients for their irrigation supply. This stands true for
any large hydroponic operation.
Your consumable costs depend on the crop. Yet here’s a standardized set:
SUPPLEMENTAL LIGHTING
Mentioned earlier, plants require the same elements in their indoor environment that they would receive
outside. To maximize yields and produce plants of highest quality, they must receive their necessary
daily light integral (DLI) to allow for proper photosynthesis to occur.
This is where supplemental lighting comes into play. It allows you to offset any lack of light throughout
your crop’s growing season. This is truly one of the major keys to growing year-round.
The industry has seen many milestones in greenhouse-style lighting through years of advanced research.
Today, the advancement of LEDs allow growers to grow with literally the “perfect” light for the crop.
It’s important you consider the long-term benefits of installing supplemental lighting within a CEA facility.
This is an initial cost that with professional guidance of light selection and layout, pays for itself.
Aside from reducing carbon footprint and eliminating the use of pesticides and chemicals, CEA
operations take on other sustainable efforts. Drought is one major issue. Parts of California and the
Midwest consistently stay in extreme drought conditions.
Harvesting rainwater is a practice CEA facilities continue to implement and use. A roof gutter system
that sends rainwater to a retention pond to then be cleaned before irrigating can cut down on long-
term water usage for plant irrigation, which in return cuts costs on your water bill.
This CEA industry is anticipated to grow by 5x in the United States over the next 10 years. With
so many new investors entering the market in such a short period of time, the potential is high for
mistakes and miscalculations.
As mentioned earlier, we’ve worked with industry investors for the last 14+ years. You’re always
welcome to reach out with questions specific to your operation. Of course, we’ll also keep you updated
with news and resources relevant to CEA investors.
hortamericas.com
U.S.: 469-532-2383
Canada: 1-844-255-9197
Mexico: +52-1-662-295-2595
LIKE ANY INVESTMENT, YOU MUST TAKE INTO ACCOUNT
ALL FACTORS BEFORE GETTING INVOLVED IN A CEA OPERATION.
Here are several factors to consider:
STRUCTURAL CONSIDERATIONS:
Correct positioning (glass greenhouse)
Placed lengthwise north to south for best use of daily sun
What does the daily/seasonal irrigation needs look like for the facility?
Retention pond to harvest rainwater? Dependent on state law over rainwater collection.
Filtration unit for cleaning water
Who is the construction company in charge of building the site?
What is their portfolio?
Site of facility large enough to accommodate employee parking, storage, water tanks, etc.
MACHINERY CONSIDERATIONS:
Packing facility machinery
Water filtration system
Data collection platform
Sensors within farm to monitor/control environmentals
Labor tracking
Supplemental lighting
What are your crop’s lighting needs?
Lift machines/maintenance lifts
Harvesting carts
Disinfectant sprayers