A New Awakening

Vertical farming has emerged as a cutting-edge solution to the global challenges of food production, sustainability, and climate change.

As this innovative sector continues to grow, it has faced both remarkable successes and significant setbacks. Christine Zimmermann-Loessl, Chairwoman of the Association for Vertical Farming (AVF), has played a pivotal role in shaping the industry's direction.

Ahead of the upcoming VertiFarm trade fair in October 2024, Zimmermann-Loessl discusses the current state of the vertical farming industry, the lessons learned from recent challenges, and how VertiFarm aims to drive the sector toward a more sustainable future.

What We Are Covering Today:

• Navigating Industry Challenges

• Signs of Recovery and Regional Enthusiasm

• The Role Of Vertifarm In Industry Revitalization

• The Need To Improve Communication

• Additional Resources

Special thanks to the team at VertiFarm for organizing this interview!

THE PRESENT
Navigating Industry Challenges

Christine Zimmermann-Loessl, Chairwoman of the Association for Vertical Farming (AVF), has long championed the potential of vertical farming as a key solution to global food insecurity and climate change. However, the industry, like many others, has seen its share of highs and lows. After a significant boom in 2021, which brought in billions in investment, vertical farming faced a sharp backlash. Promising business models collapsed, and the widespread excitement around the technology faded.

According to Zimmermann-Loessl, the recent downturn can be largely attributed to the economic fallout from the war in Ukraine, which drove up energy prices and disrupted global markets. However, she notes that these challenges merely exposed flaws in certain business models.

“Energy prices were used as an excuse by those who hadn’t built solid foundations,” she explains. “Some companies couldn’t recover because they weren’t prepared to handle these fluctuations. Others, however, managed to not only survive but expand.”

These resilient companies, according to Zimmermann-Loessl, focused on long-term planning. They secured renewable energy sources, formed strong customer relationships, and scaled their operations at a manageable pace, avoiding the pitfalls of rapid, unchecked growth.

INDUSTRY PULSE
Signs of Recovery and Regional Enthusiasm

Since late 2023, vertical farming has seen signs of recovery. The industry is gradually regaining momentum, particularly in regions less affected by economic downturns, such as Africa and Asia. Zimmermann-Loessl describes a palpable sense of optimism, especially in Durban, South Africa, where she recently attended a vertical farming event.

“In Durban, there’s pure enthusiasm,” she says. “People there see vertical farming as a key technology for the future. Asia, too, hasn’t experienced the downturn as we have in Europe and North America.”

While enthusiasm in some parts of the world is high, Europe and North America are still rebuilding. Zimmermann-Loessl notes that many companies are poised to take the next steps, but they need investors willing to commit to the next round of financing.

VERTIFARM 2024
The Role of VertiFarm in Industry Revitalization

The upcoming VertiFarm trade fair, scheduled for October 8-10, 2024, at Messe Dortmund, is set to be a crucial event for the industry’s resurgence. Now in its third year, VertiFarm provides a platform for stakeholders from across the vertical farming ecosystem to come together, share insights, and develop a roadmap for the future.

“VertiFarm and the AVF Summit are key for the industry’s advancement,” says Zimmermann-Loessl. “We bring together business leaders, policymakers, and researchers to address challenges and explore new opportunities.”

One of the fair’s highlights will be the opportunity for startups to connect with established companies and investors in an open networking area. Zimmermann-Loessl points out several promising startups that will be featured at VertiFarm, including Norway’s Avisomo, which is developing an automated vertical farm integrated with Coop Norway’s distribution system.

“Strategic partnerships like these are what will bring vertical farming into the mainstream,” she adds.

THE PATH FORWARD
The Need To Improve Communication

For vertical farming to achieve widespread adoption, Zimmermann-Loessl emphasizes the need for better communication and government support. Despite the success of many vertical farming ventures, public awareness remains low. Governments, too, have been slow to fully embrace the technology.

“Vertical farming must become a central pillar of the German Green Deal,” Zimmermann-Loessl says. “It should also be integrated into the cap-and-trade system to limit greenhouse gas emissions.”

Looking ahead, Zimmermann-Loessl is optimistic. She believes that within the next five to ten years, vertical farming will become a key component of the global food supply, driven by the need to address climate change and resource scarcity.

“People’s awareness of the climate crisis is growing, and with it, the recognition of vertical farming’s potential,” she says. “We are already seeing promising initiatives worldwide, but we need political support and better collaboration to truly make vertical farming a global solution.”

A LITTLE MORE
Additional Resources

Visit the Association For Vertical Farming’s Website To Discover All Their Endeavors Here.

Visit VertiFarm from the 8th till the 10th of October in Dortmund, Germany. More information here.

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