Asia digs deep to upgrade its agriculture
The bankruptcy of a Japanese farming venture in 2015 highlighted this dilemma. The factory had been touted in the media as the future of farming. Partly due to power costs, however, its break-even price was simply too high compared with conventional farms.
Still, the bankruptcy does not mean the hype was baseless. Under new ownership, the factory is becoming a viable business by finding buyers who are willing to pay a premium for high-quality produce. Similar indoor farming ventures are adding value by growing vegetables rich in specific nutrients.
And then there is Spread, which is taking a different approach. It wants to win in the mass market - in supermarkets - and that means competing against veggies grown in the field.
Spread's secret? Volume. The company packs a lot of lettuce into its 3,000-sq.-meter factory in western Kyoto, Japan's ancient capital. The heads grow on rows upon rows of shelves under fluorescent lights. The factory has the capacity to ship 21,000 of them per day - enough to make the lettuce profitable even if it sells for 198 yen ($1.79). The average price in Tokyo as of November was 251 yen, according to Numbeo, which tracks the cost of living in big cities.
Read more at Nikkei Asian Review