Why More Indoor Farms Are Being Built Despite Struggling Businesses – My MBA Career

Last Updated on September 18, 2023 by Robert C. Hoopes

Indoor farming companies, such as Eden Green Technology, are paving the way for a revolutionary change in the cultivation and distribution of fresh produce. These innovative companies are operating greenhouses that require less water and land while safeguarding crops from the adverse effects of climate change. However, the financial struggles of many indoor farming enterprises cannot be ignored, as two have filed for bankruptcy reorganization and one has closed down entirely.

Critics argue that the profitability of indoor farming is hampered by the high energy costs associated with the process. They question whether the financial hurdles can be overcome to achieve sustainability and profitability. On the other hand, proponents of outdoor farming methods, such as high tunnels, suggest that investing in these alternatives might be a more feasible option to extend the growing season.

One of the challenges associated with indoor farming is the potential creation of new pest problems. The controlled environment of these greenhouses may inadvertently lead to an increase in pest infestations. However, indoor farming companies assert that they can mitigate this issue by implementing strict hygiene protocols and reducing the use of pesticides.

Despite the challenges, some companies, including Eden Green Technology and Plenty, remain confident in their business models and believe that profitability can be attained. However, skeptics suggest that partnerships with retailers or support from grants for socially conscious ventures might be necessary for indoor farming to truly succeed in the long run.

The future of indoor farming remains uncertain, but growers and experts are diligently exploring its potential benefits and drawbacks. The pursuit of innovation and the goal to develop sustainable agriculture continue to drive the quest for solutions that can meet the demands of a rapidly changing world. As the journey continues, the industry eagerly awaits further developments and breakthroughs that will shape the future of farming.