I never understood the economics of those Agtech.
The margins on vegetables are shit.
Consumers won’t care that each of your potatoes had it’s own email addresse, a twitter account and was monitored by an AI.
Farmers are not just redneck assholes who needed some MIT grad to tell them how to increase yield, there’s already a huge agro industry and research and we’ve reached a point where the yield of carrots and others is pretty much already maximised. Assuming they are genius and get a 1% yield improvement that would be enormous.
A farm hand cost $25k a year, and engineer cost $150k and you haven’t priced in the tech and the building…
So you basically get a business where the cost of operation is about 20 time higher (and that’s conservative) than a guy with a plot of land and a tractor for sensibly the same yield (if not worse) and zero product differentiation in the market.
Well, I guess they just figured out the economics…
First, we actually don’t really need that research, indoor growing is a very well known activities that is already performed in many places. There are large indoor farms in northern Europe (cold), in the middle east (hot). Greenhouse, tunnels, aren’t exactly new.
Second, it’s not what those companies were doing, they were trying to create farming factories that are fully automated, their goals was to remove humans, not to find ways to fight climate change.