How the rise of vertical farming will help Australian farmers

Fruit and vegetable growers in Australia stand to benefit greatly from early adoption of vertical farming, with reduced water use just one of the advantages.

Vertical farming is expected to be worth close to $77 billion globally by 2030.

Australian horticulture producers should pay close attention to the rise of vertical farming, which may be cost prohibitive now but has the potential to drastically reduce growers’ water use and labour costs in the coming decade.

While most investment in vertical farming has so far been concentrated in the US and Europe, some Australian producers are ahead of the curve.

Queensland’s Stacked Farms launched a fully automated vertical farm in 2019, and NSW’s BoomA Food Group last month invested $3.4 million in 18 vertical growing modules, manufactured by Canadian company CubicFarm Systems Corp.

BoomA managing director Cory Robertson said the CubicFarm units would be used to grow herbs and microgreens on a commercial scale, while “minimising environmental impact and maximising cost efficiencies”.

“We searched the world over for the right sustainable growing technology to serve our communities,” Mr Robertson said. “Australia has experienced the challenges of climate change, the devastating effects of drought, and significant impacts on our food production.”

Vertical farming involves cultivating crops stacked in layers indoors, using artificial light and little or no soil, often with automation.

Best suited to leafy greens and herbs, the sector is predicted to grow dramatically and could be worth close to $77 billion globally by 2030, according to ANZ bank.

ANZ director of agribusiness insights Michael Whitehead said vertical farming was still in its infancy worldwide, but would “eventually” become mainstream in Australia when the cost of technology decreased and more energy-efficient light solutions were found.

He said agtech developers and leading horticulture businesses stood to benefit from early adoption.

“As it is less reliant on human labour, vertical farming is also less vulnerable to factors that may impact the availability of workers,” Mr Whitehead said. “Imagine if Australian horticulture operations didn’t have to hold their breath and wait for backpackers to fly in every year.

“There is every reason that Australian expertise in this space could go global and look to take their expertise to other markets like the Middle East, and the colder parts of the world.”

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