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Feeding The Future

Indoor Crop Production


Lihong Shi, Shabnam Pate, Gilbert Kwimi, Gabriel Mourad
Introduction: Innovation and Quality
Agricultural output has quadrupled over the past 70 years but the methods have
not evolved
Local the emerging term
Cost effective and better for the environment
Summary
Traditional Produce Supply Chain
Bright Farms Supply Chain

Keeping your fresh and tasty

Simplicity of Greenhouse Farming

From your greenhouse to your shelves

From the shelves to your kitchen


Competitive Advantages of Bright Farms

Bright Farms Supply Chain


VC
transportation costs disappear Farming FC Total Cost=
(per Quantity
Suppply Chain Monthly FC+(V*Q)
unit)
Spoilage increase with larger
Traditional
distances of food miles
Supply Chain $26,629.61 $15.00 1,000.00 $41,629.61
Traditional Produce Supply Chain Bright Farm
Supply Chain $14,408.00 $13.00 1,000.00 $27,408.00
loses 15 billion dollars to spoilage or
unsold produce Data based on 1,000 boxes of lettuce
Traditional Produce Supply Chain Fixed Costs

Growing and Harvesting $7999/acre $7,999.00


Water $19/100m2 $768.90
Transportation (fuel) 2.79/gallon $7,111.71
Depreciaiton expense $5,000.00
Sanitation $750.00
Spoilage/Throw Away $5,000.00
Total: $26,629.61
Bright Farms Supply Chain Fixed Costs

Growing and Harvesting $9112/acre $9,112.00


Water $19/100m2 $768.90
Transportation 2.71/gallon $27.10
Depreciaiton expense $3,000.00
Sanitation $750.00
Spoilage/Throw Away $750.00
Total: $14,408.00
Operation Processes
Instruct greenhouse user on operational procedures
Train and supervise workers
Assist with the activities of greenhouse users
Provides pesticide recommendations
Perform routine maintenance
Maintain stock of common supplies
Bright Farms vs. Traditional Produce

Bright Farms Benefits Traditional Produce Contra-benefits

Bright Farms creates more jobs Subject to Seasonality/Climate


locally
Unstable Variable Costs
Environmentally Friendly
Breeds Food-born Illnesses
Cost Effective
Huge use of land, water, crude oil
Traceability and natural gas
Location and Facility Considerations
Forecasting and Inventory Management

Bright Farms Traditional Produce

Smaller supply chain Subject to Seasonality/Climate


Inventory doesnt arrive damaged Import produce
Longer shelf-life Spoilage/loss
Cold Storage Facility
Material Challenges Expansion

Competition

Resistance to Change

Regulatory Obstacles

Technology Costs
Summary and Questions

THANK YOU