When the Vertical Farming World Congress opens its doors in Amsterdam from October 7 to 9, it will bring together leading companies from across the world. For organiser Richard Hall, Chair of FoodBev Media, the event is as much about reflection as it is the future vision for vertical farming.
Hall acknowledges that the industry has made strides but also faced costly missteps. "Much has gone right, much has gone wrong. There is progress to build on, but also plenty that still needs fixing."
© Rebekka Boekhout | FreshPlaza.com
Richard Hall (far left) at the 2024 Vertical Farming World Congress in Frankfurt, Germany.
Early promise, painful realities
According to Hall, the first wave of vertical farming carried huge expectations. Growers and investors saw it as a system that could answer climate pressures, deliver fresher and more nutritious produce, and shorten the farm-to-table chain. "The first signs for vertical farming were spectacular. Less water, less waste. Better nutrition, better shelf life. Better taste, better presentation. Quicker crops. Less space. Genuine control over growing conditions."
That far-reaching optimism attracted capital at scale, pushed several companies to unicorn status, and inspired new research and technology. "Billions were raised. Several companies were valued at over $1 billion each. New science was developed. Self-sufficiency in space became a possibility."
But the optimism masked weaknesses in the business model. Hall points out that too many ventures failed to secure the basics of customer demand and affordable supply chains. "You can only be successful in fresh food if you have a customer base and a reliable supply chain to serve it at an affordable price. This was the most astonishing and basic oversight for many of the failures."
He adds that a fixation on building proprietary systems drove costs higher while producing uneven results. The 2022 energy crisis made matters worse, pushing operating costs up just as farms were struggling to reach price parity.
Learning the hard way
Hall believes the industry has matured through these difficulties. "Fortunately, lessons have been learned. Painfully. There are few companies that were in leadership positions five years ago and retain leadership positions today. A good number of them will be speaking at our Congress next month."
Two themes stand out for him: location and scale. Cheap, stable energy has become the decisive factor in siting. "Location is vital to secure the cheapest possible energy. Proximity to heat from waste appears to be the most potent strategy. Solar or other renewable sources and grid connections may also help maintain year-round consistency, and the right location can save on rent and gain from infrastructure support."
Scale, meanwhile, is shifting away from early visions of a farm in every home or supermarket. Hall notes that the current reality favors larger regional operations, which are better positioned to manage capital requirements, supply chain dynamics, and operating cost management.
Beyond leafy greens
Despite setbacks, Hall remains convinced of the sector's potential. He sees vertical farming not as a standalone solution but as part of a broader system that complements field agriculture and greenhouses. "Vertical farming can genuinely help feed the world, more appetisingly and more nourishingly. It can complement the rest of farming, and become a key part of combating climate change and improving the planet's resilience."
Hall notes that hybrid approaches, where vertical farms propagate seedlings for greenhouses or open fields, could also improve efficiency. And for consumers, vertical farming can revive varieties lost to the constraints of supermarket supply chains.
Still a small industry
Even so, Hall is blunt about where the industry stands today. He estimates global sales of vertically farmed produce at under $2 billion in 2024, far smaller than the scale of its suppliers. Fragmentation adds to the problem, with dozens of competing systems developed in isolation. "It's hard to plug and play. How many suppliers can be experts at everything? When will we see more specialisation?"
He also points to a lack of common ground. "There isn't a common language, common messaging, or common data. Sustainability standards remain to be set, adopted, and communicated. There are hardly any dedicated associations and none with a global profile. No wonder governments and regulators don't appreciate the opportunity."
Focus over frenzy
If the industry wants to grow, he believes it must resist the temptation to chase every possible crop. From strawberries and mushrooms to rice and coffee, the possibilities are many, but focus will be key. "Most businesses would be well advised to focus on a few, simple, proven, and provable propositions."
He recalls his experience with Red Bull in the 1990s, when an absolute focus on a single product created a new category and a global brand worth $300 billion. For Hall, vertical farming can learn from that clarity of purpose. "The industry needs to position itself to consumers, retailers, farmers, and policy makers as an amazing collaborative contributor to solving substantial problems facing society."
A high-level forum in Amsterdam
The Vertical Farming World Congress, he says, is the ideal place for these discussions, bringing together those who have survived recent challenges and are determined to push forward.
"The Congress will provide intense insights into the latest science and strategy. I hope each delegate will take away greater determination and confidence that their own business can be the best in its chosen segment, customer base, and geography."
To register for the Vertical Farming World Congress, click here.
For more information: 
Foodbev Media
Richard Hall, Chair
[email protected]
www.foodbevevents.com