Bankruptcy of Green Producers: Predictions for Vertical Farming
In the new economic conditions, not all large companies in the vertical farming sector have been able to withstand competition and stay afloat. The most significant bankruptcy cases involve several well-known players.
This is reported by AgroReview
Plenty and Bowery Farming – Examples of Failures
The company Plenty, founded in 2014, raised over $940 million in investments from giants like Walmart and SoftBank. However, in 2024, Plenty closed its farm in Compton, California, and is currently seeking $125 million with a valuation that has fallen to less than $15 million.
Another company, Bowery Farming, founded in 2015, also faced failure. After raising $938 million in investments, including support from Justin Timberlake, it ceased operations in November 2024, laying off staff due to financial difficulties and plant disease issues.
Infarm and Other Market Players
The company Infarm, founded in 2013, declared insolvency in 2023, after which it resumed operations under the new name InFarm Technologies Limited. With a new headquarters in the United Kingdom, the company provides kosher salad greens for North America.
It is also worth mentioning 80 Acres Farms, which managed to raise $115 million to expand its capabilities, as well as GoodLeaf Farms, which secured funding for development in the Canadian market. Currently, vertical farming in Canada looks promising due to climatic conditions that complicate traditional agriculture.
The company GrowUp Farms, founded in 2013, continues to grow, having raised £38 million to expand its facilities. The uniqueness of GrowUp lies in the fact that all its production facilities use renewable energy, which is becoming an important factor in vertical farming.
Industry experts believe that the main problem for many companies was an excessive focus on technology and conducting numerous unnecessary research and trials.