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Vertical Farming:
Feeding the world in the 21st
Century
MKT513 (85355) - Innovation & Entrepreneurship
Dr Michael Brennan
Gavin Teggart B00551956
Christina Bradley B00561067
Sarahjane Owens B00586196
Méabh Lenehan B00586165
Michelle O’Hare B00587648
[Email address]
Abstract
Is vertical farming a viable method of encouraging an
urban empowering culture in Northern Ireland?
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Contents
1.0 Introduction – Méabh Lenehan B00586165...................................................2
2.0 Context - Gavin Teggart B00551956..............................................................3
3.0 Theory - Méabh Lenehan B00586165 & SarahJane Owens B00586196.......6
3.1 Eco Innovation - Méabh Lenehan B00586165............................................6
3.2 New Business Ventures ...............................................................................8
3.3 Social Entrepreneurship...............................................................................8
3.4 Business Models - SarahJane Owens B00586196.....................................10
4.0 Change - Michelle O’Hare B00587648........................................................17
4.1 Resources...................................................................................................17
4.2 Health.........................................................................................................17
4.3 Community ................................................................................................18
4.4 Economy ....................................................................................................19
4.5 Pollution.....................................................................................................19
5.0 Development - Christina Bradley B00561067 .............................................20
6.0 Conclusion - SarahJane Owens B00586196.................................................23
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1.0 Introduction – Méabh Lenehan B00586165
“By the year 2050, nearly 80% of the earth's population will reside in urban centers.” (The
Vertical Farm, 2014). As urbanisation increases, agricultural land and natural resources are
becoming limited and it is therefore becoming increasingly difficult to feed a human
population that is growing exceptionally. (Despommier 2012) speculates that if nothing is
done to advance current farming techniques, 3 billion people could face starvation by 2060.
In order to tackle pressing global challenges, detrimental to society in the form of climate
change, natural resource scarcity and degradation radical change is imperative. Vertical
farming, “a revolutionary approach to producing high quantities of nutritious and quality
fresh food all year round, without relying on skilled labour, favourable weather, high soil
fertility or high water usage” (Vertical Farm Systems 2012) is an emerging eco innovative
concept that could be a solution.
In relation to Northern Ireland, we are faced with unique challenges including the highest per
capita carbon emissions, dependency on imported fossil fuel, mounting waste levels, fuel and
food poverty, unemployment and deprivation. (Citied from ‘Future cities and urban
empowerment for resilient, low carbon communities’, 2013.) From an economic,
environmental and societal perspective, vertical farming has a value proposition that
integrates new technology with community support and economic incentives in order to
increase sustainability.
“Innovation, understood as new combinations can also be applied so social change.”
(Schumpeter 1911.) By combining the agri-food and sustainable energy sectors within
Northern Ireland, vertical farming has the potential to grow fresh produce whilst reducing
energy consumption, create jobs in depressed urban areas as well as attract external
investment through eco-tourism opportunities.
In order to assess the viability of vertical farming as a possible solution to environmental
issues whilst simultaneously reducing energy consumption and offering a benefit to society,
this report investigates the sustainability of an urban empowering culture in Northern Ireland.
As a non-profit, value driven orientated concept, the sustainability aspect of vertical farming
is a challenge with reference to attracting and obtaining external funding and investment.
To analyse this effectively, it was necessary to focus our research in the areas of context,
theory, change and development in relation to vertical farming using socio economic factors,
environmental sustainability and revenue streams as strategic objectives.
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2.0 Context - Gavin Teggart B00551956
The agri-food sector has always held a critical place in terms of supporting the Northern Irish
economy. In the recent matrix report for Northern Ireland the agri-food sector has not only
created 32,000 jobs, but it has also generated sales of £2.4 Billion (Passmore, 2008). It is
evident from these figures how vital a role this industry holds in the Northern Irish economy,
however we now live in a technological age were innovative methods are needed in order to
keep sectors such as the agri-food sector thriving. Technological changes are not the only
changes faced by society. Due to changing global climate, food and water scarcity fears and
other accompanied threats on agriculture, innovative steps have been taken in order to
promote food security and a cleaner eco-image in regards to society.
Researching different innovative methods in the agri-food sector have led to urban
agricultural methods such as vertical farming becoming the next step in agriculture. Dickson
Despommier, one of the world’s leading advocates of vertical farming, has stated that
“Applying the most conservative estimates to current demographic trends, the human
population will increase by about 3 billion people during the interim.” (Despommier, 2014)
He then stated that with this expected growth in the global population, over 109 hectares of
new land is expected to be used in order to feed the rest of the world. Urban Agriculture is the
process of cultivating food in an urban environment while distributing the produce within that
radius, thus reducing carbon emissions. The practice includes a range of methods such as
aquaponics, urban beekeeping and horticulture.
The key method of urban agriculture we investigated was vertical farming, which is the
practice of farming within or on top of buildings in urban centres. This practice is an
emerging trend in society today with many vertical farms appearing in various locations
worldwide, such as Israel and Singapore (which first opened the world’s first commercial
vertical farm in 2012). In order to develop a comprehensive understanding on vertical
farming, we conducted research on several established vertical farms from different parts of
the world. The two main aims of this research were to provide a solid foundation on vertical
farming and to conclude as to whether it would be a viable method of urban empowerment in
Northern Ireland.
We first researched Brooklyn Grange, which is the world’s largest rooftop farm. Brooklyn
Grange operates in New York City and produces over 50,000 lbs of urban grown vegetables
each year. Brooklyn Grange also has various other sources of revenue that give the company
added value, and hence are considered to be the world’s largest rooftop farm. Brooklyn
Grange has taken advantage of this opportunity and now act as a consultancy for those who
want to start a vertical farm. This service includes providing expert knowledge and
installation services to worldwide and local clients which according to Brooklyn Grange
“promote healthy and strong local communities”.
Another vertical farm that we investigated was Sky Greens located in Singapore. Sky Greens
is the world’s first carbon low, high rise vertical farm, which was developed in order to tackle
the ongoing challenges of ensuring food supply resilience in land-scarce countries. The farm
use patented technology to grow crops and it also has an innovative hub that promotes the
development of vertical farms. Sky Greens takes an active role in social regeneration as it
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works “closely with the Singapore Corporation of Rehabilitative Enterprises (SCORE) to be
an active participant and assist ex-offenders by giving them an opportunity to obtain gainful
employment” (Sky Greens Website, 2014).
Sky Greens and Brooklyn Grange are two successful case studies on how vertical farming is
changing the way agriculture is practiced on a wider scale, however it was important to carry
out this research on a local scale in order to develop a well-rounded view on vertical farming.
Cultivate London is one of the UK’s largest urban farming projects that aims to promote
urban farming through social regeneration. The key aims of the organisation are to benefit
social regeneration while also benefitting the image of London in regards to developing
vacant and derelict areas into urban farm plots. The three key aims of Cultivate London,
stated clearly on their website in 2014, are as follows:
1. To generate training opportunities and jobs for unemployed young people aged 16-24
in practical horticulture
2. To convert derelict and vacant land across London into productive food growing
space
3. To increase the amount of local and organically grown produce consumed by
Londoners
Urban Farm Dublin was Ireland’s only vertical farm and was the only vertical farm in Europe
to provide a range of traditional farming practices i.e. chicken farming, while providing
innovative methods such as micro fish farming through aquaponics. The farm successfully
generated media attention for urban agriculture in Ireland and promoted the practice as
sustainable method of farming. The farm also supported the ‘grow it yourself’ movement
which encouraged the public to get involved in growing their own produce. Sadly, the project
was forced to close as new health and safety regulations meant the farm had to add new fire
exits which would be substantial cost to the project.
The research we have carried out on these vertical farms have all provided excellent
examples of advantages and disadvantages in regards to how a vertical farm would operate in
Northern Ireland. The main advantage of vertical farming is through the use of the correct
technology, farms can produce crops that are not limited to seasonal change. This can be seen
to be successful as Sky Greens has created ‘A-Go-Gro’ technology that allows these crops to
grow. By growing crops in urban centres the use of fossil fuels can be significantly reduced
as the farm to fork mile is drastically reduced which improves access to food and thus
provides better nutrition (Irvine et al., 1999; Dickinson et al., 2003). This is desirable as cities
are now adopting new methods to reduce carbon footprints and therefore be more sustainable
(Thomaier et al, 2014).
In regards to social regeneration vertical farming is very beneficial. For example, Cultivate
London aims to use derelict areas for urban farm allotments and the use of these areas
provides a higher moral in urban areas as it beautifies the area and instils community pride.
Vertical farming has also been seen to improve mental health (Armstrong, 2000); promote a
sense of improved security and safety in local communities (Schmelzkopf, 1995 Ferris; et al.,
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2001); and lastly it creates opportunities for community development through education/job
skills training (Fusco,2001; Holland, 2004);
Although vertical farming is beneficial with a number of advantages, there are also a number
of drawbacks associated with it. As vertical farming is a new concept, the public may
perceive it as ‘alien’ and therefore turn away from practicing this method. Urban Farm
Dublin faced these challenges as they found Dubliners did not engage as much as they had
anticipated which resulted in a few of their projects not taking off. This, however, is not the
case for Cultivate London and other projects. With regards to funding, projects such as
vertical farms do not receive much government support, however research indicates that
vertical farms that have a purpose, i.e. that give back to the community, seem to receive
funding. Funding for farming in Northern Ireland is provided through grants, such as the
proposed DARD Farm Business Improvement Scheme. There are also some issues in relation
to planning permission for vertical farming. Few policies exist as the concept is relatively
new, and there are new regulations that must be met in terms of fire exits. These regulations
were responsible in the closure of Urban Farm Dublin.
When researching vertical farming, we carried out primary research in the form of interviews
with several experts on urban farming and how it could be a viable method of farming in
Northern Ireland. We spoke with Cultivate London who provided insight to their business
model and how they work and develop within society. Michelle O’Neill, the DARD minister,
spoke to us and provided information on how the project could gain funding. She also stated
that innovative methods are welcomed in regards to updating traditional agricultural
practices. Social Farming Across Borders (SOFAB) were also interviewed and it was
discussed how to develop the concept of care farming in Northern Ireland and how social
regeneration is a large part of agriculture as it forms natural connections with communities
and farms.
Finally we interviewed Urban Farm Dublin and Slims Kitchen, both of which advised how
media attention is vital to define vertical farming and to highlight how it benefits
communities. Slims Kitchen spoke of how reducing the farm to fork mile is appealing to local
food businesses as it promotes healthy eating, reduces costs and also instils a grow local
image. Andrew Dunlop from Urban Farm also stated that restaurants support vertical farms as
it was the goal of Urban Farm Dublin to supply produce to a café that would be built under
the vertical farm and therefore cut out the farm to fork mile all together.
It is evident from the research carried out that vertical farming is beneficial to communities
on a local and global scale, despite some of its disadvantages. In order to introduce vertical
farming into the agri-food sector, a strong business model needs to be adapted which will
ensure that the agri-food sector continues to thrive in Northern Ireland.
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3.0 Theory - Méabh Lenehan B00586165 & SarahJane Owens B00586196
3.1 Eco Innovation - Méabh Lenehan B00586165
Eco Innovation is a relatively new and emerging theoretical concept that allows ways of
addressing both current and future environmental problems such as climate change, natural
resource scarcity and degradation whilst promoting a sustainable economy at the same time.
The EUs Eco-Innovation Observatory (EIO) project defined eco-innovation as “the
introduction of any new or significantly improved product (good or service), process,
organisational change or marketing solution that reduces the use of resources and decreases
the release of harmful substances across the whole life-cycle” (EIO website.)
With regards vertical farming, we feel that eco innovation is a very applicable theory as it
underpins the whole concept of urban farming with regards finding innovative solutions to
the pressing issues surrounding global food security today and in the future whilst decreasing
energy and resource consumption. A Harvard Business Review, Why Sustainability Is Now
the Key Driver of Innovation, 2009 argues that the concern to save the planet has created a
battle between governments, consumer activists, and companies. Therefore, there is a need
for companies to change their practices in the direction that addresses the issues related to the
environment and society.
In their policies to revive industrial activity whilst simultaneously tackling global issues,
countries around the world are today increasingly seeking to incorporate eco innovation
within their growth strategies for the future. E.g. The European Commission of Green
Growth strategies recommend that Green Growth strategies should encourage innovation to
enhance efficiency in the use of natural capital and foster new economic opportunities from
the emergence of green activities. Within the EU, eco innovation has been considered as one
of the key drivers for the Europe 2020 strategy for economic growth and prosperity. (OECD
2012) Therefore, due to growing concerns for the environmental impact on the industrial
society, vertical farming in Northern Ireland should encourage the Government to consider
strategies for sustainable development; an increasingly popular philosophy which promotes
that the ‘environment should no longer be sacrificed to economic growth: rather, the two
should be reconciled’ (Aggeri, 1999).
Innovation can often and typically be referred to as a new product or service offering, eco
innovation however is about introducing more business strategy offerings such as aligning
profit formula with resources and partnerships and therefore accessing new markets.
Increasing market potential for more radical and systematic eco innovation is becoming of
particular importance to enable long term transition and transformation towards a greener
economy, something that will prove crucial for vertical farming with regards sustainability.
The opportunity to collaborate with local business and local schools and universities will
enable vertical farming in Northern Ireland to position itself strategically with regards
attracting new markets and therefore increase the sustainability factor of this concept.
Emerging markets for greener products and services on the one hand and the rise of
sustainability and green growth agendas in corporate management on the other are
increasingly leading firms to integrate non-financial metrics into their decision-making
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processes, to revisit the concepts of value and profitability that drive their business models,
and to reconsider the balance between the dual objectives of short-term profitability and long-
term sustainability (Cited from The Role of Business Models in Green Transformation, pg 4,
2012.)
The European Centre for the development of vocation training, pg 100, 2014, tells us that
sustainability requires a systemic approach, which integrates new production and
consumption patterns in a unique eco-system. A sustainable society is unrealistic if new
socio-political paradigms are not developed, including not only new green products and
technologies, but also new lifestyles and behaviours, shared between citizens, political
leaders, researchers and industry. With reference to the sustainability of vertical farming in
Northern Ireland, one must accept that there are huge risks associated with this concept and
with the idea that it will be autonomous. We must therefore acknowledge the ultimate
importance of creating a competitive advantage that will enable the accessing of new markets
and thus encourage sustainability in terms of reinvested profit and external funding. The
European Programme for sustainable competitiveness for Northern Ireland highlights the
importance of sustainable competitiveness and innovation as well as protecting and
enhancing the environment. It is therefore through programmes such as these that will enable
vertical farming to promote sustainable development within local communities and
eventually within the economy and social industry as well as attract funding opportunities.
The economic indicators of cities are primarily used to assess the competitiveness of cities.
(Cited from, The Competitive Advantage of Nations, pg 74, 1990.) The development level of
infrastructure is also important, as city residents spend more and more time in urban space. In
addition to the economic and social areas, the importance of the green sphere is also
increasing constantly and has become an inseparable part of sustainable competitiveness.
Therefore, knowing that urbanisation has become fundamental to Europe today, we believe
that the opportunity presented within vertical farming is ripe and should be adapted in
Northern Ireland.
According to Porter (1998), competitive advantage initially comes from the value that a firm
is capable of creating for its customers; which is higher than the cost of creating it. It is also
necessary for companies to develop new resources, capabilities, and activities; because of the
scarcity of natural resources. (Cited from, Can Sustainability be a Key Driver of Innovation
and Competitive Advantage? pg 4, 2011).
By doing so, following the path of innovation, firms will gain a competitive advantage that is
long-lasting. Porter and Kramer (2006) believe that when companies treat CSR using the
same approach which they apply on their core business, then CSR will be a source of
opportunity, innovation and competitive advantage rather than expense, restriction, or a
charitable deed.
As vertical farming is unheard of in Northern Ireland at the minute, even though people will
be sceptical about its sustainability, it will be a new and innovative concept that will prompt
debate and discussion. Not only will vertical farming act as a solution to pressing global
issues but it will have the potential to change local ideals surrounding consumption as well as
create an urban empowered culture. (Future Think 2008 and Hellstrom 2007) tell us that it is
the disruptive end of the eco innovation spectrum that is most promising long term. With
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reference to vertical farming, changing the way in which food is produced via more
innovative, environmental friendly technology whilst continuing to meet and exceed
customer expectations is key and is what will differentiate this venture.
Utilising networks such as Universities and local businesses and offering employment and
social regeneration, vertical farming can offer tremendous value to not just our environment
but our economy and social industry as well. It is the integration element to vertical farming
that we feel makes it so unique, combining two sectors (agri-food and sustainable energy)
and then adding value to not just the environment and the economy but to people’s lives and
social well-being. Tallinn University of Technology supports this by stating, “The principle
of sustainable development has been emphasised with increasing frequency since the last
quarter of the 20th century – economic, social and environmental issues can only be resolved
in combination, considering their confluence. The understanding is that environmental
protection is an inseparable part of environmental use and finding solutions to environmental
problems also promotes economic and social development. In the spatial scope it mainly
applies to cities.”
3.2 New Business Ventures
New Business Ventures theory can be applied to vertical farming as (Schumpeter 1911) tells
us in his early writing that, “innovation can be understood as new combinations which can be
applied to social change.” We have looked at the Northern Ireland Matrix Structure and
combined the Agri-Food sector with the Sustainable Energy sector to identify an emerging
threat to global food security and therefore aim to take advantage of this opportunity to
combat this through eco innovative techniques.
“Innovation describes an effort to create a purposeful, focussed change in an enterprises
economic or social position according to (Drucker 1985.) Vertical farming within Northern
Ireland specifically will encourage an urban empowered culture and change the way in which
we think and feel about locally sourced produce and the effect this has on our environment
and our local communities.
3.3 Social Entrepreneurship
“While business entrepreneurship is the most powerful way of creating wealth for the
population as a whole, social entrepreneurship is now coming of age, and putting the
emphasis, the effort and the analytical skills in applying the methods that we learned here at
Harvard Business School for finding the solution for social problems are absolutely
fundamental” (Cited from, Business Model Implant for Sustainable Economic Growth, pg 8,
2012).
We felt that within the new business ventures theory, social entrepreneurship was particularly
fitting to vertical farming with reference to creating value and offering a benefit to society.
(Roberts and Woods, 2005) agree with this theory and tell us that Social Entrepreneurship
seeks to create something of value that is congruent with the social cause and the social
community. Vertical farming in Northern Ireland will utilise local skills and expertise to carry
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out day to day farm maintenance which will therefore exploit an opportunity to provide local
employment. Through social regeneration, vertical farming will reflect the creating value and
benefit to society ethos of Social Entrepreneurship and therefore encourage a greener and
urban empowered future in Northern Ireland.
According to a study carried out by The University of Tallinn, public participation is an
extremely important lever in the promotion of environmental protection and development
processes. Citizens as well as social and private organisations are given the opportunity to
express their opinions about the city’s policy goals or decisions that concern planned
activities, discuss their opinions with others and be involved in decision-making. Active
public participation facilitates finding solutions, promotes financing, saves time, reduces
conflicts, educates, informs in consideration of public interests and generates civil liability.
Vertical farming in Northern Ireland will ultimately be for the greater good of our
environment but ensuring that our local communities can gain a better quality of life
simultaneously. By interacting with the community and encouraging a strong relationship,
vertical farming will offer employment, social regeneration and a learning opportunity
regarding a healthier and more efficient lifestyle.
(Bessant and Tidd 2013) tell us that Social Entrepreneurship is to create social change and
value rather than commercial innovation and financial value, often resulting in growth in the
economy and in employment levels. Within Northern Ireland, vertical farming will reinvest
profit to sustain and develop business activity as well as offering effective social regeneration
through the use of training programmes.
An education system must also encourage values and behaviours to create not only
professional skills, but also a real social capital, understood as “the values and beliefs that
citizens share in the everyday dealings and which give meaning and provide design to all
sorts of rules” (Cited from European Centre for the development of vocation training,
Greener skills and jobs, pg 109, 2014.)
Education, as one of the main socialisation factors, has the potential to promote values and
behaviours consistent with a green society. This includes raising awareness about
sustainability issues, as well as soft skills like critical reflection, mental models able to go
beyond individual thinking, the ability to deal with interrelated and complex systemic
problems, participatory attitudes and capacities to think about the future (Cited from
European Centre for the development of vocation training, Greener skills and jobs, pg 109,
2014). Therefore, with reference to Northern Ireland and the sheer power behind the concept
of vertical farming, in order to maximise the benefits that can be received, society must be
educated about this new innovative theory. Referring back to the partnership of Universities
and local businesses as well as using reinvested profit to organise training programmes for
staff, vertical farming could reshape the way in which we as a nation think about food
consumption and thus the impact our decisions pose on the environment in which we live.
Sustainability also requires social innovation, with examples like the so-called “creative
communities” (i.e. active, enterprising people who invent and implement new ways of
dealing with everyday problems e.g. the Slow Food Movement, which defends the
consumption of local and seasonal products, coming back to older, safer and more ecological
practice. (Cited from European Centre for the development of vocation training, Greener
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Skills and Jobs for a Low-Carbon Future, pg 33, 2013.). Also known as a “Schumpeterian
phenomenon” of “creative destruction” with the idea of moving away from consumerism and
promoting values and behaviours that are more adequate for an innovative and sustainable
society.
Within Social Entrepreneurship, (Bornstein 2012) talks about transformative forces. (Cited
from Social Entrepreneurship and Social Business 2012.) These forces describe the people
with new ideas to address major issues in the world around us that ultimately influence the
lifestyle of the customer both present and future. Vertical farming will welcome and
encourage the collaboration of an array of alternative and diverse skill sets, opinions and
visions contributing to an urban empowered culture in Northern Ireland. Thus, corresponding
to the society we want for the future and ensuring we are developing competent human
resources to contribute to this vision and make it a reality.
Having analysed relevant theory we feel is applicable to vertical farming in Northern Ireland,
in order to ensure an informed decision regarding sustainability and viability, we applied this
theory to new innovative business models.
3.4 Business Models - SarahJane Owens B00586196
‘A business model describes the rationale of how an organisation creates, delivers and
captures economic, social and other forms of values’ (Osterwalder et al, 2010).
In order to determine the success of Vertical Farming in Northern Ireland, a particular focus
needs to be on the business model, which will thus introduce eco-innovation to the market
and in turn promote its dissemination.
Business models combine the core components of business strategies and operations that
create and deliver value to the customers as well as to the organisation. The components of a
business model typically include strategic decisions on customer segmentation, products and
services to offer, business and research partners to engage with, resources to create and
channels to deliver value as well as the underlying cost structure and revenue streams to
ensure economic viability of business activity.
Due to global challenges including the economic downturn, environmental degradation and
resource scarcity, eco-innovation can be seen as a way to reconcile economic and
environmental priorities and open new, sustainable pathways for the industry. The business
model offers a comprehensive way to understand how this value is created and distributed.
Eco-innovation aims to create both economic and environmental value and business models
act as a value driver and enabler of green technologies and solutions. It is well recognised
that innovation is a driver of economic and social progress within the macro environment as
well as a driver of business success and competitive advantage at the micro level (Citied from
The role of business models in green transformation p19, 2012).
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Michael Porter claimed that ‘innovation is the central issue in economic prosperity’. However
in order to move towards a more ecologically sound and prosperous society, it is important to
promote specific areas of innovation, in this case through Vertical Farming. Such innovation
should allow for new ways of addressing current and future environmental problems and
decreasing energy and resource consumption, while promoting sustainable economic activity
(McIntyre et al, 2012).
The business model concept serves to capture how organisations are able to match resources
and capabilities to opportunities. In a volatile environment new challenges emerge and these
developments need to be detected and understood as opportunities (Bessant&Tidd 2013).
Lately, the interest of researchers from the field of corporate sustainability management has
been focused on the importance of business models in this domain. The interest is justified in
the context in which business models are seen as the very DNA of business (Ludeke-Freund,
2009) and as today’s economy is highly destructive of natural and social capital, the
company’s logic of earning money might be the cause (Citied from The Business Model
Implant for Sustainable Economic Growth p23, 2012).
Business models and non-technological innovation are relatively unknown to policy makers
and industry alike and therefore it is vital to analyse real life examples. Having conducted
both primary and secondary research on Vertical Farming across the world we found a
number of successful farms, both for profit and non-profit.
Successful Vertical Farms included;
Brooklyn Grange
Singapore Sky Greens
Cultivate London
Linkoping Sweden
UrbanFarm Dublin
Each of these Vertical Farms were truly unique and offered valuable scope to base our own
work on, however we decided to base our own model on Cultivates London’s business
activity as the information provided through primary research was invaluable to the success
of our project.
Outlined in the table below is Cultivate London’s Business model, incorporating
Osterwalder’s nine element business model canvas. Osterwalder’s canvas simplifies the value
Cultivate London offer to customers and also effectively portrays the resources and partners
required for creating, marketing and delivering their value.
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Cultivate London’s Business Model via Osterwalder’s nine element canvas)
There is numerous aspects of Cultivate London’s model that we feel can be transferred into
Vertical Farming in Northern Ireland. In particular we liked Cultivates Value Proposition and
what they offer to the public. Their motto of ‘Hire local, grow local and sell local is an area in
which we would incorporate and develop in our own model thus addressing our aim of
encouraging an urban empowering culture in Northern Ireland.
Secondly having explored socio-economic factors as an area in which we want to improve
and integrate within our model it was pertinent that Cultivate London’s customer segment
was the unemployed, focusing on people aged 16-24. This particular age group in Northern
Ireland account for one of the highest rates of unemployment and therefore a prominent
group we want to target.
Furthermore, Cultivate London’s revenue stream comes directly from Government funding
and regenerated profit from selling their local and organic produce. This particular area will
be a huge focus for Northern Ireland, encouraging innovative ways to generate much needed
profit to encourage sustainability.
The analysis of Cultivate London’s business model highlights to what extent and how,
environmental values are reflected within their value proposition, customer segmentation, use
of resources, collaboration patterns and the management of cost and revenue streams. With
this consideration, Vertical Farming in Northern Ireland can deliver both products and service
via a new business model, redefining the problem and exploiting a new opportunity.
Recent research into the links between strategy, innovation and firm performance argues for
the need to make a clearer distinction between the technological and market aspects of
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disruptive innovation and to pay greater attention to business model innovation (Citied from
Harvard Business Review p78, 2006).By definition, business model innovation enlarges the
existing value of a market, either by attracting new customers or be encouraging existing
customers to consume more. Business model innovation does not require the discovery of
new products, services, or technology but rather the redefinition of existing products and
services and these are used to create value (www.manginginnovation.com). In regards to
Vertical Farming in Northern Ireland, the innovation is reframing a current business model
i.e; Cultivate London and developing on their value proposition, revenue generation and
capabilities and processes.
Innovators tend to offer different product or service attributes to existing firms, which
emphasise different propositions. As a result, business model innovation typically requires
different and often conflicting systems, structures, processes and value chains to existing
offerings (Bessant&Tidd, 2013). In this case, Vertical Farming in Northern Ireland will build
upon Cultivate London’s business model and in turn capture and appropriate the benefits.
By replacing old business practices, innovative business models enable organisations to
restructure their value chain and generate new types of producer-consumer relationships and
alter the consumption culture and use practices. The business model perspective is therefore
particularly relevant to radical and systemic eco-innovation, including how business models
and strategies can induce and help diffuse pressing global issues and enable transformation.
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(Vertical Farming NI Business Model via Osterwalder’s nine element canvas, see appendix
for A4 image)
Typically the development of a business model will include consideration of the value
proposition, mechanisms for revenue generation, capabilities and processes and position in
the value network ecosystem (Bessant&Tidd, 2013). With this in mind, we have focused on
these areas in order to create a new reinvented business model on the adaptation of
Osterwalder’s business canvas.
Value Proposition;
Value creation, both for Vertical Farming in Northern Ireland and the customer is at the heart
of our business model. Social regeneration has been a major motivation within or
development and therefore our target market will originate within this area, in particular
helping the unemployed aged 16-24, vulnerable people, including the disabled and elderly
and also people with mental health issues.
The promotion and support of urban agriculture has the potential to contribute to efforts to
addressing pressing challenges of poverty, under nutrition and sustainability among
vulnerable towns in growing cities (Karanja et al, 2010).
The capability of a person to produce, consume and sell food depends on the complement of
assets or forms of capital at their disposal (Bebbington et al, 1999). Therefore Vertical
15 | P a g e
Farming in Northern Ireland will offer value to customers in the form of resources including;
access to land for food production, equipment and seeds to cultivate, human health and
knowledge to enable people to tend and produce organic produce and a supportive set of
social relations.
Refocusing attention to innovation as a source of growth and recovery will in turn restructure
the value chain and generate new types of producer/consumer relationships and altar the
consumption process. Vertical farming therefore would offer economic, social and
environmental value.
Revenue Generation;
Vertical Farming in Northern Ireland is a non-profit, public and social venture and therefore
it is vital that the enterprise captures and appropriates the benefits of their offering. Revenue
is less important than demonstrating value, however it is imperative to ensure resources, both
human and financial are sustainable and therefore a particular focus should be made in this
area.
Vertical Farming in Northern Ireland could potentially have a number of revenue streams in
order to support and maintain the project, driving innovation and prosperity within the
community. Potential revenue streams would include;
Government funding, via The Department of Education and Learning and The
Department of Social Development.
External Investors who wish to provide a sum of money in support of the project.
Venture capital investment would provide the revenue to drive innovation forward
within a small organisation at a faster rate than would ordinarily be possible and it
provides a rigorous and ongoing monitoring process that responds by killing failure
early (Bessant&Tidd, 2013).
Crowdfunding, by raising monetary contributions from a large number of people via a
promotional website.
Regenerated Profit via selling organic produce, health and medical products, eco-
tourism and educational collaborations.
Capabilities & Processes;
It is vital for Vertical Farming in Northern Ireland to deliver effectively and efficiently its
product and service offerings. Required is a combination of resources, knowledge and
capabilities, paying sufficient attention to how value will be captured in the longer term. With
this in mind, Vertical Farming in Northern Ireland should concentrate on long term
sustainability taking into consideration staff, funding, training programmes targeting their
16 | P a g e
market segment and also potential legislations that may be introduced in future government
policies.
Also a huge emphasis should be placed on promoting Vertical Farming across Northern
Ireland and actively taking responsibility to promote and support urban agriculture.
Integrating both online and offline marketing strategies should effectively contribute to the
success of the business model, encouraging and urban empowering culture in Northern
Ireland.
Position in the network;
Vertical Farming in Northern Ireland’s business model aims to eventually help develop and
implement policies enabling and driving green transformation through the wider diffusion of
eco-innovation practices. Consequently suppliers, customers and collaborators will play a
vital role in creating and capturing this value, encouraging innovation to enhance efficiency
in the use of natural capital and fostering new economic opportunities from the emergence of
new green activities.
Business models, whether explicit or implicit underline all business plans and ventures. In
order to strengthen and exploit a new market position, Vertical Farming in Northern Ireland
will have to continuously rethink and reinvent their business model. Business model
innovation is relevant to Vertical Farming in Northern Ireland as it is about being at the
forefront of competition while assuring economic viability or sustainability of their
operations. In other words, a company that tries to improve its sustainability performance has
to change its business model, however incremental or radical, which can turn out to be the
decisive factor for succeeding in that task (Ludeke-Freund, 2009).
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4.0 Change - Michelle O’Hare B00587648
Innovation has affected the food industry similar to that in other industries. Globalization has
revolutionized attitudes and created pressures on the industry to ensure food safety,
nutritional quality, and consumers' demand for convenience, variety, and quality, combined
with new possibilities for biotechnology (Fortuin, 2009). At a time when resources are
limited, new solutions are therefore essential to stimulate change.
Bessant and Tidd (2011) believe public services such as healthcare, education and social
security may not generate profits, however they do affect the quality of lives for millions of
people. They believe new innovative ideas have the potential to change people’s lives all over
the world. Our research shows how urban agriculture, with a particular focus on vertical
farming, has the potential to improve the quality of lives across the globe, while maintaining
a sustainable environment for future generations.
This section will explore the key drivers for change in regards to vertical farming in Northern
Ireland.
4.1 Resources
Human population is predicted to grow over a third between now and 2050. As these trends
rise, market demand for food will also grow, thus generating fears for the land resources
available to feed our planet. However Urban Agriculture promises an innovative and safe
way to feed the rapidly growing populations in cities all over the world (Marks, 2014).
Agri-Food is the most successful industry in Northern Ireland which has continued to grow
despite the difficult economic downturn. This sector has displayed great prospects for
sustainable growth through its sharp focus on export sales, innovation and productivity. The
Department of Agriculture and Rural Development’s strategic vision for the industry is to
grow a sustainable, profitable and integrated Agri-Food supply chain, focused on delivering
the needs of the market, with plans to transform the industry into an ambitious, outward
looking and globally competitive sector by 2020 growing profitably by 60%. (O’Neill, 2013).
Economists argue that Innovation is strongly associated with growth (Bessant and Tidd,
2011). Through the innovation of vertical farming, if practiced on a large scale in Northern
Ireland, these objectives for agricultural growth could be successfully achieved. In relation to
this, if enough food is supplied in a sustainable fashion, this will maintain food security for
all of humankind for the future, while allowing large regions of land to return to their natural
landscapes, restoring ecosystem and habitats. (Despommier, 2014a)
4.2 Health
The UK has the highest level of obesity in Western Europe. It is estimated by the year 2050,
more than half of the UK’s population could be obese. In correspondence, childhood obesity
in Northern
Ireland has increased dramatically in the past 3 decades. It is estimated that one in three boys
and one in four girls are either overweight or obese. (NHS, 2014).
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However, this challenge has created an opportunity in the Agri-food industry. Innovation in
consumer foods has been encouraged by recent trends towards wellbeing, triggered by these
rising health insecurities (Allio, 2005). The innovation of vertical farming offers a solution to
many health matters offering health conscious individuals many benefits for overall well-
being.
Food production and gardening have proven to have exercise-related health benefits thus
reducing the risks of obesity in children and adults (Bellows et all, 2014a). Gardening
provides a work out for the respiratory and cardiovascular systems burning little or intensive
amounts of energy. Gardening exercise can increase muscle strength, endurance and
flexibility (Anon, 2014) thus preventing the risks of obesity among individuals in Northern
Ireland.
School gardens have become increasingly popular in education. In today’s society there is an
increasing need for food security and environmental protection. School gardens are gaining a
reputation for the promotion of a healthy diet, development of livelihood skills and
environmental awareness. (Muehlhoff and Boutrif, 2010). Vertical farming projects could
therefore become a seed ground for Northern Ireland’s health and security, encouraging
healthier diets and improving overall health for future generations of the nation.
A recent farming report agrees with gardening and farming projects. It stresses the
importance of agriculture for teaching children science and geography. School children and
children must be taught about this major role in order to manage and maintain the
environment and increase biodiversity in the future (Fursdon and heath, 2013).
Urban farming has also proven to have other health advantages. Today, horticultural therapy
is well established with many health care professionals, proven with patients to be more
therapeutic than most rehab activities. Outdoor activity, working with plants and exposure to
sunlight can benefit mental health, mental outlook and personal wellness of individuals as it
has the ability to simply take people's minds off their worries thus relieving pain, anxiety and
depression (Bellows et all, 2014b). Vertical farming in this sense would be very beneficial to
Northern Ireland where mental health problems are now regarded as one of the most common
illnesses, accounting for a largest share of disease, than any other health condition in the
nation. (McGimpsey, 2011)
4.3 Community
As well as benefiting individuals, vertical farming could help develop a better community
health for Northern Ireland. Community gardens have been a response in many areas in
efforts to address the intolerant crime that dominates our criminal justice system (Herod,
2014). Neighbourhoods which embrace community gardening, allowing people to come
together in harmony to garden, have seen an improvement in crime rates. (Tang, 2011)
This is of particular importance to Northern Ireland, where crime rates have escalated
dramatically in recent years. In 2012/13 there were 100,389 crimes recorded by the PSNI in
Northern Ireland (Nisra, 2014). Most of these crimes committed were hate crimes such as
homicide and robbery which has been essentially connected with terrorism and the "troubles"
in Northern Ireland’s history. (Lockhart, 2014) Adapting this simple farming method to
communities in Northern Ireland,
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could be a potential solution in bringing individuals together, building community relations
and creating a supportive environment to reduce crime rates in these areas.
4.4 Economy
Social challenges can be opportunities as developments in information and communications
have created exciting new possibilities for improving our ability to meet social needs.
(European Communities, 2011). The promotion and support of vertical farming in Northern
Ireland can offer economic and social opportunities in advantaging the poor urban societies
promising food security and employment opportunities.
The financial crisis of 2005 together with the recession that followed left Northern Ireland to
experience a harsh economic period, being effected worse than any other region in the UK.
This disaster resulted in countless individuals facing unemployment, poverty and deprivation
(Ross, 2010). Vertical farming projects could help the people of Northern Ireland get back in
to work, creating new jobs thus rebuilding economic security after the unemployment levels
fell most rapidly down 0.8 percentage points to 7.2% (Anon, 2011).
Agricultural food production has been seen to enhance food security, provide additional
income, and reduce vulnerability during times of economic shocks, environmental
dehydration and chronic instability in aiding the urban poor to access basic life resources.
(Maxwell 1995).
4.5 Pollution
Northern Ireland are particularly prone to high levels of air pollution more than anywhere in
the UK due to polluted easterly air flows from England and the build-up of local emissions
(Anon, 2013). The DOE are currently working towards reducing Northern Ireland’s carbon
footprint. The ‘Programme for Government’ aims to reduce greenhouse gas emissions IN
Northern Ireland by 25% by 2025. (DOE, 2014). Vertical farming could significantly reduce
these carbon levels as urban gardens have proven to enhance air quality as plant foliage
reduces carbon dioxide ozone concentrations and lowers urban mass temperatures. (Bellows
et all, 2014c)
Supplying Northern Ireland with locally produced fruit and vegetables from vertical farms
means food is less travelled therefore reducing carbon emissions and pollution to the
environment. In addition, vertical farming can ensure year around crop production in a
protected, managed environment. These managed environments means less need for harmful
chemicals such as pesticides, herbicides and fertilizers which pollute our atmosphere and
waters (Despommier, 2014b).
It is evident that this change is needed in order to maintain a sustainable environment for
future generations not only in Northern Ireland, but across the globe. The potential to extend
vertical farming production is enormous. Although much more research needs to be carried
out on the topic, it is evident this change will only be of benefit to urban environments to
achieve a greener, healthier future.
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5.0 Development - Christina Bradley B00561067
In order to generate profit from a vertical farming project in Northern Ireland we looked in to
what kind of opportunities could be exploited in order to do this. To begin with we have
spoken with local food restaurants particularly Slims Kitchen on the Lisburn road who
advocates of promoting a healthy eating lifestyle and they have stated that they are extremely
interested in the possibility of having access to fresh produce grown locally. (See Appendix)
Using the new University of Ulster Campus in Belfast City centre as an example of where a
vertical farm could be based would mean more access to local businesses in St. Ann’s square
and thus reducing the food to fork mile as a result. This area is thriving with food and
restaurant businesses and by supplying local produce to those establishments would be
developing on the agri-food cluster which has been stated as one of Northern Ireland’s main
innovative sectors. (Matrix NI 2008)
A big trend within the urban farming industry at the moment are care farms. Care farms are
defined as the therapeutic use of agricultural landscapes and farming practices. (Elsey Care
Farms 2013). These are community urban farms that provide health, social and educational
care services to groups of people suffering with different problems such as mental or physical
disabilities.
In a report conducted by Natural England, it stated that 80% of care farms in the UK cater for
50 clients per week with most of the clients visiting from one to three times in one week.
90% of the care farms reported that they provide social outcomes for their clients, followed
by 83% educational and 80% health outcomes. Over 66% of care farms in the UK deliver all
three types of outcomes. (Natural England Report 2014)
The care farms are mainly used as a form of therapy for the clients as they can interact and
feed the animals as well as maintaining the plants and food there. (Care Farming UK 2014)
An example of educational centres collaborating with a care farms were Leeds and Essex
University and this shows that there is a possible opportunity for the University of Ulster to
establish a care farm link if they were to exploit this viable opportunity.
After conducting an interview to the Department of Agriculture and Rural Development
Minister Michelle O’Neill she named a number of grants available to a project such as this
and the main one being the Awards for All Big lottery Fund. (See Appendix). They provide
grants for community farms who promote therapy for people suffering with stress, anxiety or
depression. (Big Lottery Fund UK 2014). This would become a social and health benefit to
anyone willing to learn how to grow their own produce. An example of a local educational
centre that has benefitted from a £10,000 award was St. Francis’s Primary School in Lurgan
and they were able to develop a nature garden for their school. This reinforces that there are
large amounts of funding available to start up these types of projects. (Lottery Culture 2013)
Another source of funding is from SoFAB which stands for Social Farming Across Boarders.
They are a three-year project to establish social farming in Ireland and is funded by the
European Regional Development Fund. The project is led by the School of Agriculture and
Food Science, University College Dublin in partnership with Queen’s University Belfast.
21 | P a g e
Social Farming provides people who use services with the opportunity for inclusion, to
increase self-esteem and to improve health and well-being by taking part in the day to day
activities and responsibilities of the farm. The visitors can benefit from participation in farm
activities in a non- clinical environment. (SoFab.org 2014)
In regards to vertical farming generating profit as well as adding benefit to society, the
produce that we grow to local restaurants markets, artisan food stores and health and
cosmetics industries. As the weather in Northern Ireland affects so many agricultural
businesses, there are a few ways in which the food growth can be sustained all year round. A
growing method such as a polytunnel, which can be used to ensure the growth is the most
popular choice by urban farmers. Polytunnels are a low cost polythene covered arched frame
in which it retains its own heat and light to grow produce such as a potatoes, carrots, lettuce,
apples and mushrooms all year round to name a few. One of the vegetables big in demand at
the moment are mushrooms, with them accounting for 50% of Ireland’s exports to the UK
every year. (The Mushroom People 2012)
Another year round growing methods is Aquaponics. These are recirculating aquaculture
systems that incorporate the production of plants without soil. Recirculating systems are
designed to raise large quantities of fish in relatively small volumes of water by treating the
water to remove toxic waste products and then reusing it to produce large quantities of crops.
(SRAC 2006)
Hydroponics is the third growing method we have looked into which is related closely to
aquaponics. Hydroponics is the growth of plants vertically one above the other indoors,
resulting in more room to grow extra produce all year round. It collects all the rainwater that
has fell and filters and reuses it on the plants again which reduces water waste by 75% and
controls what exactly is being put on the plants. (Renewable Agriculture and Food Systems
2014). Food such as Lettuces, celery, spring onions, herbs and tomatoes can be grown
hydroponically and are available all year round.
Aside from the growing methods one of the big trends emerging within the farming and
agriculture sector is worm casting. It has become high in demand due to the fact that they are
an organic fertilizer and one of the most populous sources of bacteria that can make a great
profit as it is seen as a premium product and a powerful export that other farms want to buy
according to an interview conducted with the urban farming guys in New York City. (See
Appendix)
Another sector that the produce of a vertical farm can contribute to is the cosmetics industry.
Snail slime is used in many cosmetic products due to it being full of proteins that stimulate
collagen growth in the human skin. It has attracted a premium price in the cosmetics market
in France where it has been highly sought after all types of skin companies. One business has
harvested nearly 15 tonnes of snail mucus extraction in 2013. (Reuters 2013) In addition snail
shells can also be used as a mineral fertilizer.
Due to the produce of a urban farms being very organic is being bought up and manufactured
into a range of hair and skin products such as soaps, lotions and hair care. Since the products
contain natural ingredients and can be sold for a premium price to people suffering with
different types of skin conditions such as eczema. There are many local businesses which
produce and sell these kinds of products in Northern Ireland and examples of this being
22 | P a g e
Beginnings Soaps in Magherafelt and Queen Bee Naturals in Dungannon. They source their
organic ingredients from local farms to guarantee high quality products to their loyal
customers. (Beginings Soaps 2014)
There is also potential for vertical farms to contribute to the pharmaceutical industry as
Cultivate London showed in their Olympic garden by growing tropical produce which
contributed to the development of vaccines. Another way in which locally grown produce can
add value to the health industry is via the production of health juices. A local artisan
company from Co. Down have established a business based around wheatgrass health juices
which are becoming more popular due to it containing over 90 minerals such as potassium,
calcium, magnesium and sodium. One 25ml shot of wheatgrass juice is the equivalent of
eating 1kg of green leafy vegetables. (Squeeze Juice Cafes 2014) They have their own artisan
juice store in Warrenpoint and sell their products to customers all across the UK and Ireland.
Another development that a vertical farm can add value to is the educational side. With the
negatively surrounding subjects such as climate change, most young people are beginning to
care deeply about environmental issues and are striving to make a positive changes in the
environment around them. In order for people to make these changes it is vital that they are
taught how to, when to and why to. Vertical farming could encourage children to learn and
enjoy food education and make them understand the importance of growing their own crops
and the health and eco-friendly benefits that they are contributing to their country as a result.
A charity ran programme who are reinforcing this vision are Eco Schools Northern Ireland.
They are part of the top global sustainable school programme in the world who promotes
sustainable living through whole-school action supported by learning resources and
management tools. They provide students with environmental awareness through their entire
school in a way that links to many curriculum subjects. They encourage, educate and award
schools who create and develop eco-gardens. (Eco Schools NI 2014) There are now 1,165
Eco-Schools in Northern Ireland representing 98.9% of all schools. Northern Ireland was the
first country in the world to receive the world’s first Green Flag award. (doeni 2014)
This reinforces the importance of changing the way in which the younger generation are
being educated in schools about growing and eating healthy food and by making it a way of
life it will be seen as a positive influence on everyone.
Another way of educating farming skills is by holding educational workshops for groups of
children and adults will encourage them all to share their expertise and help them to gain the
adequate skills to grow their own produce in a social environment. An example of this is
Brooklyn Grange in NYC who have attracted over 10,000 students since 2011 and provided
educational excursions and workshops where they learn about earth science, nutrition, and
environmental sustainability. Their goal is to prepare the next generation of urban farmers for
success by teaching important skills through a hands-on educational program. (Brooklyn
Grange Farm 2014).
The last sector we have looked into is tourism. Ireland is renowned for having a massive
agricultural industry and by having an educational attraction such as a vertical farm would be
a profitable opportunity for tourists coming to observe its production on top of different
buildings around the city. In 2013 Northern Ireland seen over 2 million visitors engaging and
embracing its huge culture. (Northern Ireland Statistics Bulletin 2014). A project such as this
23 | P a g e
has the potential to raise these statistics even higher and become a big attraction in the tourist
industry being the only potential rooftop farming project of its kind on the isle of Ireland.
According to the discover Northern Ireland’s green travel guide, they encourage tourists that
come and visit to “Enjoy our local produce. Support local farmers, enjoy the fresh, seasonal
produce and keep food miles low, all at the same time. It makes perfect sense to eat local”.
(Discover NI 2014) This reinforces the importance of promoting sustainable green tourism in
Northern Ireland and having a vertical farm would only benefit this further. Finally, Canada
has seen many vertical farms being built all across Montreal and they are promoting this as a
tourist and educational attraction which has seen them profiting from this greatly. A vertical
farming project such as this being established in Northern Ireland would see this country
raising profits and tourist numbers which will be re-invested into developing more as a result
which will therefore benefit everyone living here.
6.0 Conclusion - Sarahjane Owens B00586196
Innovation is the tool of entrepreneurs, the means by which they exploit change as an
opportunity for a different business or a different service. Entrepreneurs need to search
purposefully for the sources of innovation, the changes and their symptoms that indicate
opportunities for successful innovation (Bessant&Tidd, 2013).
The financial crisis of 2008 together with the recession that followed it has refocused
economist’s attention on the determinants of business cycles. What is different now is the
importance that policy-makers attach to entrepreneurship as a source of growth and recovery
(Lundstrom et al, 2005).
Horticulturists play a major role in all areas concerned with managing and maintaining our
environment, in turn increasing biodiversity. It is therefore vital to revive industrial activity,
job markets and competitiveness, while simultaneously tackling global environment
challenges such as climate change and natural resources scarcity in order to seek more
innovative ways to promote economic activity.
Having conducted both primary and secondary research, our studies show how adopting an
integrated approach and applying innovative technologies to issues of renewable energy
generation, food production and waste management, Northern Ireland can develop unique
solutions on post-industrial sites in the form of Vertical Farming.
Change comes at a time when the social dimension of agricultural production and
sustainability is being re-emphasised and popular attention to food security has been
heightened following the dramatic rise in world food prices in 2008 (Lyson, 2004).
Agricultural food production by the urban poor can enhance food security, provide additional
income and reduce vulnerability to economic shocks, environmental degradation and chronic
instability in access to basic resources (Citied in the International Journal of Agricultural
Sustainability, 2010).
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The research we have carried out has highlighted potential challenges for vertical farming
with regards sustainability and legislation. Through more research and the development of
eco-innovative business models, vertical farming in Northern Ireland can be viable for long
term success. A realisation from policy makers that there is a clear need for change in
Northern Ireland will encourage active promotion and thus the dissemination of Vertical
Farming from the outset. Subsequently we hope the unique value proposition that Vertical
Farming will offer the economy, environment and society will have the necessary effect to
derive long term investment and encourage an urban empowering culture in Northern Ireland.
25 | P a g e
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31 | P a g e
Appendices
Presentation – Feeding the world in the 21st
century
Record of Team Meetings
Primary Research
Interview One – Michele Mayo of ‘The Urban Farming Guys’ NYC 31/10/14
Interview Two - DARD Minister Michelle O’Neill 5/11/14
Vertical Farm Northern Ireland Business Model
32 | P a g e
Record of Team Meetings
Week Two (30/09/14)
* Everyone Present
* General discussion on topic area in regards to assignment title and Northern Ireland Matrix
Structure.
* Identification of a number of potential research areas.
For week three meeting, group members to research matrix structure and general innovation
and entrepreneurship theory.
Week Three (07/10/14)
* Christina absent
* Group analysed research carried out with regards potential topics with mileage.
* Agri-food and sustainable energy was of particular interest. It was agreed further research
into this area needed to be explored in order to assess project viability.
* Group members looked at the agri-food sectors across the world to gain an understanding
of this concept with regards social regeneration and funding.
For week four meeting, it was necessary for the group to apply research discussed in meeting
to Northern Ireland. Each member was allocated an area to look at with regards
unemployment levels, pollution, government funding, vertical farms across the world and
value to society.
SarahJane – Unemployment and Social Regeneration
Méabh – Government Funding
Michelle – Socio-economic factors
Christina – Value proposition
Gavin – Research into Vertical Farming across the globe
Week Four (14/10/14)
* Everyone present
* Each group member informed the team of their research findings and we agreed that the
area of agri-food and sustainable energy was an innovative, relevant and viable assignment
topic.
33 | P a g e
* We identified areas for methodology eg; interview with Michelle O’Neill (DARD
minister), Cultivate London, Dublin Urban Farm.
* The team developed a clear aim and strategic objectives in order to carry out relevant
research efficiently whilst ensuring we were finding valuable information.
* At this meeting we each took responsibility for and individual contribution to the
presentation and report in the form of Context, Theory, Change and Development.
Gavin – Context
Meabh & SarahJane – Theory
Michelle – Change
Christina - Development
For week five, Christina was meeting with Michelle O’Neill to discuss the viability of
vertical farming in Northern Ireland form a government perspective. Michelle to speak with
Cultivate London about their business activity. Other group members to continue with
relevant research regarding their quadrant.
Week Five (21/10/14)
* Everyone Present
* Christina and Michelle both provided a detailed analysis of the interviews the carried out.
From this it was clear there was sound and relevant evidence to support the concept of
Vertical Farming in Northern Ireland.
* From these findings we decided to use Cultivate London’s business model as a basis for the
development of theory.
* From a funding perspective through research findings we identified funding as a potential
challenge as well as an opportunity. The idea of collaborating with local businesses and
universities as partner networks was explored.
For week six, SarahJane looked at Osterwalder’s nine element business canvas theory in
relation to Cultivate London. Gavin suggested interviewing representatives from local
hospitality cluster including SOFAB and Slims Healthy Eating Kitchen.
Méabh – Research further into funding as both potential threat and opportunity in relation to
other vertical farming corporations.
Christina – Product development in regards to organic produce.
Michelle – Investigating change with regards to impact on society.
34 | P a g e
Week Six (28/10/14)
* Everyone Present
* Each group member informed the team of their findings from research conducted.
* SOFAB and Slims Healthy Eating kitchen were very enthusiastic about the vertical farming
concept and this therefore enabled us to use local hospitality clusters as possible networking
partnerships, even potentially investing in the project.
* Within our research, we discovered Dickson Depommier, a vertical farming futurist. Gavin
emailed this contact and we gained in depth analysis regarding vertical farming today and its
development.
For week 7, each team member were given the task of continuing to develop their quadrant of
the overall report and presentation.
Week 7 (4/11/2014)
* Everyone Present
* The group began to think about the presentation which would take place in week 10 with
regards summarising key points to address in order to convey overall progression of
assignment.
* After having been introduced to new business venture theory in Marys lecture, it was
evident that this would be appropriate theory to incorporate within our research and Méabh
accepted responsibility for doing so.
* At this stage, we felt it necessary to discuss each of our quadrants to ensure the team were
content with the overall progress of the assignment.
* We identified areas that may need more research to ensure viability for the report including
sustainability and funding.
For week 8, the group were each to collate a first draft of their overall contribution to the
assignment. This would enable the team to address any weaknesses and ensure effective
results.
Week 8 (11/11/2014)
* Gavin absent
* The group presented their first draft of initial contribution to report and we each evaluated
the strengths and weaknesses of each other’s work.
* We took the opportunity at this time to amend each piece of work and were then able to
begin to select which information to outline within the presentation.
35 | P a g e
Week 9 (18/11/2014)
* Christina absent
* The group constructed a prezi presentation through which to present a summary of our
overall report.
For week 10, the group were each to take responsibility for learning their own presentation
sections to ensure an effective and cohesive delivery on the day.
(The group met up twice more this week and booked a study room in the library through
which to practice the presentation.)
Week 10 (25/11/2014)
* Presentation Day!
* After having given the presentation, the group could then focus on writing up the overall
report.
* We spent time collating relevant and necessary references that would increase the viability
of the vertical farming concept in Northern Ireland.
For week 11, each team member was asked to write up their quadrant to enable us to collate
the report and add an introduction and conclusion.
Week 11 (1.12.2014)
* The group collated the final report and SarahJane and Méabh added both the introduction
and conclusion, having read and incorporated elements of the main text.
* The report was submitted on Wednesday 10.12.2014 (Week 12)
Interview Conducted with Michele Mayo of The Urban Farming Guys NYC 31/10/14
1. How exactly have you drawn in people to your urban farming project?
Here are a few methods that have helped to draw people to our organization: videos posted
on our site & our Facebook page. Distributing flyers to our neighbours to let them know
about events we are putting on that they might be interested in. Word of mouth--people that
come tell their friends & family. Weekly Saturday workdays, where various individuals or
groups come and help to work on a project together.
36 | P a g e
2. Who are your volunteers do you find that come to the farm and where do they
come from?
Some of our volunteers have been the following: There have been groups from churches &
non-profit organizations, locally & nationally. There have been high school & college groups
from various Science & Ecology Classes. There have been Boy Scout & Girl Scout troops.
There have been individuals and married couples from all over the USA and from countries
all over the world, who have come to intern from one month to a year.
3. What other ways are you generating profit from your urban farm at the
moment?
We have recently established a commercial scale worm farm and we are now turning up to
10,000 pounds of rotting food and scraps and pre composted materials into a premium
organic fertiliser every month. Worm casting is one of the most bio-diverse and populous
sources of beneficial bacteria. This has become a tremendous building block on our farm and
a powerful local export.
Thanks so much for choosing us to conduct your interview with. We wish you much success
in all you endeavour to do!
Michele Mayo www.theurbanfarmingguys.com
Interview conducted with the DARD Minister Michelle O’Neill 5/11/14
37 | P a g e
1. What are your thoughts on agriculture today in NI and how is it important for the
future?
Agri-food - comprising both farming and food and drink processing - is one of our most
successful industries with a proven track record for growth. The latest statistics show
turnover in the food and drinks processing sector to be £4.5bn in 2013, an increase of almost
of 7% in the previous year. Indeed, sales growth over the last five years has averaged 7% per
year. Employment in the sector has also been growing – in 2013, there were the equivalent of
20,390 full time employees within the food and drink processing sector, accounting for 27%
of employment within the wider manufacturing field.
Our economic successes are underpinned by the strength of our local products. For example,
at the recent Great Taste Awards 99 local companies secured a record 264 awards, including
11 in the highest three star category, with eight local products listed in the Top 50.
Globally, the food industry faces both opportunities and challenges now and in the years
ahead – population growth and increased demand against a background of increasing scarcity
of land, water and energy and a need to safeguard our natural resources for future
generations. I believe there are real opportunities for the sustainable growth of our local
industry, in existing and new markets. That is why I, together with the DETI Minister
appointed an industry led Agri-Food Strategy Board (AFSB) to chart the way ahead for the
sector to 2020. In its report Going for Growth, the Board outlined a strategic vision for the
sector and made 118 recommendations to support delivery on 4 ambitious targets:
Grow sales by 60% to over £7bn;
Grow employment by 15% to over 115,000;
Grow sales outside NI by 75% to £4.5bn; and
Grow by 60% to £1bn the total value of products and services.
DARD is leading government action to address 41 of the recommendations. Our draft Rural
Development Programme worth up to £623m is a key mechanism for delivery and contains a
range of new support schemes to deliver on Going for Growth, including a Farm Business
Improvement Scheme of up to £250m and a complementary Agri-Food Processing
Investment Scheme. The date for opening any of the proposed schemes will depend on the
draft Rural Development Programme being approved by the European Commission and on
getting the necessary business case approvals and funding in place.
2. How would something such as a vertical farm benefit Belfast in your opinion?
In the first instance, I want to see our local agri-food industry meeting the challenges set out
in Going for Growth and generating jobs and wealth for people and communities in towns
and villages, across the north. I welcome innovative farming practices, and think all potential
options should be explored, including vertical farming. In terms of direct benefits to Belfast, I
38 | P a g e
could see vertical farming offering people living in the city centre the potential for new job
opportunities and ready access to good quality, local, sustainable food. The Going for Growth
report highlights the challenges for our horticultural sector to achieve the necessary scale to
invest in processing capacity. Nonetheless there are market opportunities for niche products –
for example specialist health juices have been produced in the north from crops grown using
hydroponics. At a social level, it could also represent an opportunity for urban dwellers to
deepen their connection to farming and food and help regenerate the urban environment.
However, it is unclear whether local climatic conditions and other local factors would give us
a sufficient competitive advantage in this type of farming to make the significant investment
worthwhile.
3. How do you see innovation connected to agriculture?
I believe innovation is vital for the sustainable growth of the local agri-food sector. It helps
drive efficiency, improve productivity and develop new products to meet changing market
demands. My department supports innovation through R&D projects commissioned from
AFBI; and the DARD Research Challenge Fund which co-funds industry-led projects. We
are also funding postgraduate studentships to help drive innovation in the industry and
provide high level training to help develop the science base in the north. To facilitate the
local agri-food industry in accessing EU research money, we are funding a NI Contact Point
who is already developing links with local stakeholders and across Europe.
4. Which type of grants would be available for a vertical farm?
It would depend what the focus of the project was. The proposed DARD Farm Business
Improvement Scheme may offer the possibility for knowledge transfer and technology
opportunities applicable to vertical farming. However, to be eligible for support through the
Rural Development Programme projects should be located in a rural area, or the benefits of
the project should be in a rural area. Any settlement of 4,500 persons and above is excluded
from support under the Programme. There may also be support available from other
government departments and agencies, including DETI/InvestNI.
39 | P a g e
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment
Innovation Assignment

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Innovation Assignment

  • 1. Vertical Farming: Feeding the world in the 21st Century MKT513 (85355) - Innovation & Entrepreneurship Dr Michael Brennan Gavin Teggart B00551956 Christina Bradley B00561067 Sarahjane Owens B00586196 Méabh Lenehan B00586165 Michelle O’Hare B00587648 [Email address] Abstract Is vertical farming a viable method of encouraging an urban empowering culture in Northern Ireland?
  • 2. 1 | P a g e Contents 1.0 Introduction – Méabh Lenehan B00586165...................................................2 2.0 Context - Gavin Teggart B00551956..............................................................3 3.0 Theory - Méabh Lenehan B00586165 & SarahJane Owens B00586196.......6 3.1 Eco Innovation - Méabh Lenehan B00586165............................................6 3.2 New Business Ventures ...............................................................................8 3.3 Social Entrepreneurship...............................................................................8 3.4 Business Models - SarahJane Owens B00586196.....................................10 4.0 Change - Michelle O’Hare B00587648........................................................17 4.1 Resources...................................................................................................17 4.2 Health.........................................................................................................17 4.3 Community ................................................................................................18 4.4 Economy ....................................................................................................19 4.5 Pollution.....................................................................................................19 5.0 Development - Christina Bradley B00561067 .............................................20 6.0 Conclusion - SarahJane Owens B00586196.................................................23
  • 3. 2 | P a g e 1.0 Introduction – Méabh Lenehan B00586165 “By the year 2050, nearly 80% of the earth's population will reside in urban centers.” (The Vertical Farm, 2014). As urbanisation increases, agricultural land and natural resources are becoming limited and it is therefore becoming increasingly difficult to feed a human population that is growing exceptionally. (Despommier 2012) speculates that if nothing is done to advance current farming techniques, 3 billion people could face starvation by 2060. In order to tackle pressing global challenges, detrimental to society in the form of climate change, natural resource scarcity and degradation radical change is imperative. Vertical farming, “a revolutionary approach to producing high quantities of nutritious and quality fresh food all year round, without relying on skilled labour, favourable weather, high soil fertility or high water usage” (Vertical Farm Systems 2012) is an emerging eco innovative concept that could be a solution. In relation to Northern Ireland, we are faced with unique challenges including the highest per capita carbon emissions, dependency on imported fossil fuel, mounting waste levels, fuel and food poverty, unemployment and deprivation. (Citied from ‘Future cities and urban empowerment for resilient, low carbon communities’, 2013.) From an economic, environmental and societal perspective, vertical farming has a value proposition that integrates new technology with community support and economic incentives in order to increase sustainability. “Innovation, understood as new combinations can also be applied so social change.” (Schumpeter 1911.) By combining the agri-food and sustainable energy sectors within Northern Ireland, vertical farming has the potential to grow fresh produce whilst reducing energy consumption, create jobs in depressed urban areas as well as attract external investment through eco-tourism opportunities. In order to assess the viability of vertical farming as a possible solution to environmental issues whilst simultaneously reducing energy consumption and offering a benefit to society, this report investigates the sustainability of an urban empowering culture in Northern Ireland. As a non-profit, value driven orientated concept, the sustainability aspect of vertical farming is a challenge with reference to attracting and obtaining external funding and investment. To analyse this effectively, it was necessary to focus our research in the areas of context, theory, change and development in relation to vertical farming using socio economic factors, environmental sustainability and revenue streams as strategic objectives.
  • 4. 3 | P a g e 2.0 Context - Gavin Teggart B00551956 The agri-food sector has always held a critical place in terms of supporting the Northern Irish economy. In the recent matrix report for Northern Ireland the agri-food sector has not only created 32,000 jobs, but it has also generated sales of £2.4 Billion (Passmore, 2008). It is evident from these figures how vital a role this industry holds in the Northern Irish economy, however we now live in a technological age were innovative methods are needed in order to keep sectors such as the agri-food sector thriving. Technological changes are not the only changes faced by society. Due to changing global climate, food and water scarcity fears and other accompanied threats on agriculture, innovative steps have been taken in order to promote food security and a cleaner eco-image in regards to society. Researching different innovative methods in the agri-food sector have led to urban agricultural methods such as vertical farming becoming the next step in agriculture. Dickson Despommier, one of the world’s leading advocates of vertical farming, has stated that “Applying the most conservative estimates to current demographic trends, the human population will increase by about 3 billion people during the interim.” (Despommier, 2014) He then stated that with this expected growth in the global population, over 109 hectares of new land is expected to be used in order to feed the rest of the world. Urban Agriculture is the process of cultivating food in an urban environment while distributing the produce within that radius, thus reducing carbon emissions. The practice includes a range of methods such as aquaponics, urban beekeeping and horticulture. The key method of urban agriculture we investigated was vertical farming, which is the practice of farming within or on top of buildings in urban centres. This practice is an emerging trend in society today with many vertical farms appearing in various locations worldwide, such as Israel and Singapore (which first opened the world’s first commercial vertical farm in 2012). In order to develop a comprehensive understanding on vertical farming, we conducted research on several established vertical farms from different parts of the world. The two main aims of this research were to provide a solid foundation on vertical farming and to conclude as to whether it would be a viable method of urban empowerment in Northern Ireland. We first researched Brooklyn Grange, which is the world’s largest rooftop farm. Brooklyn Grange operates in New York City and produces over 50,000 lbs of urban grown vegetables each year. Brooklyn Grange also has various other sources of revenue that give the company added value, and hence are considered to be the world’s largest rooftop farm. Brooklyn Grange has taken advantage of this opportunity and now act as a consultancy for those who want to start a vertical farm. This service includes providing expert knowledge and installation services to worldwide and local clients which according to Brooklyn Grange “promote healthy and strong local communities”. Another vertical farm that we investigated was Sky Greens located in Singapore. Sky Greens is the world’s first carbon low, high rise vertical farm, which was developed in order to tackle the ongoing challenges of ensuring food supply resilience in land-scarce countries. The farm use patented technology to grow crops and it also has an innovative hub that promotes the development of vertical farms. Sky Greens takes an active role in social regeneration as it
  • 5. 4 | P a g e works “closely with the Singapore Corporation of Rehabilitative Enterprises (SCORE) to be an active participant and assist ex-offenders by giving them an opportunity to obtain gainful employment” (Sky Greens Website, 2014). Sky Greens and Brooklyn Grange are two successful case studies on how vertical farming is changing the way agriculture is practiced on a wider scale, however it was important to carry out this research on a local scale in order to develop a well-rounded view on vertical farming. Cultivate London is one of the UK’s largest urban farming projects that aims to promote urban farming through social regeneration. The key aims of the organisation are to benefit social regeneration while also benefitting the image of London in regards to developing vacant and derelict areas into urban farm plots. The three key aims of Cultivate London, stated clearly on their website in 2014, are as follows: 1. To generate training opportunities and jobs for unemployed young people aged 16-24 in practical horticulture 2. To convert derelict and vacant land across London into productive food growing space 3. To increase the amount of local and organically grown produce consumed by Londoners Urban Farm Dublin was Ireland’s only vertical farm and was the only vertical farm in Europe to provide a range of traditional farming practices i.e. chicken farming, while providing innovative methods such as micro fish farming through aquaponics. The farm successfully generated media attention for urban agriculture in Ireland and promoted the practice as sustainable method of farming. The farm also supported the ‘grow it yourself’ movement which encouraged the public to get involved in growing their own produce. Sadly, the project was forced to close as new health and safety regulations meant the farm had to add new fire exits which would be substantial cost to the project. The research we have carried out on these vertical farms have all provided excellent examples of advantages and disadvantages in regards to how a vertical farm would operate in Northern Ireland. The main advantage of vertical farming is through the use of the correct technology, farms can produce crops that are not limited to seasonal change. This can be seen to be successful as Sky Greens has created ‘A-Go-Gro’ technology that allows these crops to grow. By growing crops in urban centres the use of fossil fuels can be significantly reduced as the farm to fork mile is drastically reduced which improves access to food and thus provides better nutrition (Irvine et al., 1999; Dickinson et al., 2003). This is desirable as cities are now adopting new methods to reduce carbon footprints and therefore be more sustainable (Thomaier et al, 2014). In regards to social regeneration vertical farming is very beneficial. For example, Cultivate London aims to use derelict areas for urban farm allotments and the use of these areas provides a higher moral in urban areas as it beautifies the area and instils community pride. Vertical farming has also been seen to improve mental health (Armstrong, 2000); promote a sense of improved security and safety in local communities (Schmelzkopf, 1995 Ferris; et al.,
  • 6. 5 | P a g e 2001); and lastly it creates opportunities for community development through education/job skills training (Fusco,2001; Holland, 2004); Although vertical farming is beneficial with a number of advantages, there are also a number of drawbacks associated with it. As vertical farming is a new concept, the public may perceive it as ‘alien’ and therefore turn away from practicing this method. Urban Farm Dublin faced these challenges as they found Dubliners did not engage as much as they had anticipated which resulted in a few of their projects not taking off. This, however, is not the case for Cultivate London and other projects. With regards to funding, projects such as vertical farms do not receive much government support, however research indicates that vertical farms that have a purpose, i.e. that give back to the community, seem to receive funding. Funding for farming in Northern Ireland is provided through grants, such as the proposed DARD Farm Business Improvement Scheme. There are also some issues in relation to planning permission for vertical farming. Few policies exist as the concept is relatively new, and there are new regulations that must be met in terms of fire exits. These regulations were responsible in the closure of Urban Farm Dublin. When researching vertical farming, we carried out primary research in the form of interviews with several experts on urban farming and how it could be a viable method of farming in Northern Ireland. We spoke with Cultivate London who provided insight to their business model and how they work and develop within society. Michelle O’Neill, the DARD minister, spoke to us and provided information on how the project could gain funding. She also stated that innovative methods are welcomed in regards to updating traditional agricultural practices. Social Farming Across Borders (SOFAB) were also interviewed and it was discussed how to develop the concept of care farming in Northern Ireland and how social regeneration is a large part of agriculture as it forms natural connections with communities and farms. Finally we interviewed Urban Farm Dublin and Slims Kitchen, both of which advised how media attention is vital to define vertical farming and to highlight how it benefits communities. Slims Kitchen spoke of how reducing the farm to fork mile is appealing to local food businesses as it promotes healthy eating, reduces costs and also instils a grow local image. Andrew Dunlop from Urban Farm also stated that restaurants support vertical farms as it was the goal of Urban Farm Dublin to supply produce to a café that would be built under the vertical farm and therefore cut out the farm to fork mile all together. It is evident from the research carried out that vertical farming is beneficial to communities on a local and global scale, despite some of its disadvantages. In order to introduce vertical farming into the agri-food sector, a strong business model needs to be adapted which will ensure that the agri-food sector continues to thrive in Northern Ireland.
  • 7. 6 | P a g e 3.0 Theory - Méabh Lenehan B00586165 & SarahJane Owens B00586196 3.1 Eco Innovation - Méabh Lenehan B00586165 Eco Innovation is a relatively new and emerging theoretical concept that allows ways of addressing both current and future environmental problems such as climate change, natural resource scarcity and degradation whilst promoting a sustainable economy at the same time. The EUs Eco-Innovation Observatory (EIO) project defined eco-innovation as “the introduction of any new or significantly improved product (good or service), process, organisational change or marketing solution that reduces the use of resources and decreases the release of harmful substances across the whole life-cycle” (EIO website.) With regards vertical farming, we feel that eco innovation is a very applicable theory as it underpins the whole concept of urban farming with regards finding innovative solutions to the pressing issues surrounding global food security today and in the future whilst decreasing energy and resource consumption. A Harvard Business Review, Why Sustainability Is Now the Key Driver of Innovation, 2009 argues that the concern to save the planet has created a battle between governments, consumer activists, and companies. Therefore, there is a need for companies to change their practices in the direction that addresses the issues related to the environment and society. In their policies to revive industrial activity whilst simultaneously tackling global issues, countries around the world are today increasingly seeking to incorporate eco innovation within their growth strategies for the future. E.g. The European Commission of Green Growth strategies recommend that Green Growth strategies should encourage innovation to enhance efficiency in the use of natural capital and foster new economic opportunities from the emergence of green activities. Within the EU, eco innovation has been considered as one of the key drivers for the Europe 2020 strategy for economic growth and prosperity. (OECD 2012) Therefore, due to growing concerns for the environmental impact on the industrial society, vertical farming in Northern Ireland should encourage the Government to consider strategies for sustainable development; an increasingly popular philosophy which promotes that the ‘environment should no longer be sacrificed to economic growth: rather, the two should be reconciled’ (Aggeri, 1999). Innovation can often and typically be referred to as a new product or service offering, eco innovation however is about introducing more business strategy offerings such as aligning profit formula with resources and partnerships and therefore accessing new markets. Increasing market potential for more radical and systematic eco innovation is becoming of particular importance to enable long term transition and transformation towards a greener economy, something that will prove crucial for vertical farming with regards sustainability. The opportunity to collaborate with local business and local schools and universities will enable vertical farming in Northern Ireland to position itself strategically with regards attracting new markets and therefore increase the sustainability factor of this concept. Emerging markets for greener products and services on the one hand and the rise of sustainability and green growth agendas in corporate management on the other are increasingly leading firms to integrate non-financial metrics into their decision-making
  • 8. 7 | P a g e processes, to revisit the concepts of value and profitability that drive their business models, and to reconsider the balance between the dual objectives of short-term profitability and long- term sustainability (Cited from The Role of Business Models in Green Transformation, pg 4, 2012.) The European Centre for the development of vocation training, pg 100, 2014, tells us that sustainability requires a systemic approach, which integrates new production and consumption patterns in a unique eco-system. A sustainable society is unrealistic if new socio-political paradigms are not developed, including not only new green products and technologies, but also new lifestyles and behaviours, shared between citizens, political leaders, researchers and industry. With reference to the sustainability of vertical farming in Northern Ireland, one must accept that there are huge risks associated with this concept and with the idea that it will be autonomous. We must therefore acknowledge the ultimate importance of creating a competitive advantage that will enable the accessing of new markets and thus encourage sustainability in terms of reinvested profit and external funding. The European Programme for sustainable competitiveness for Northern Ireland highlights the importance of sustainable competitiveness and innovation as well as protecting and enhancing the environment. It is therefore through programmes such as these that will enable vertical farming to promote sustainable development within local communities and eventually within the economy and social industry as well as attract funding opportunities. The economic indicators of cities are primarily used to assess the competitiveness of cities. (Cited from, The Competitive Advantage of Nations, pg 74, 1990.) The development level of infrastructure is also important, as city residents spend more and more time in urban space. In addition to the economic and social areas, the importance of the green sphere is also increasing constantly and has become an inseparable part of sustainable competitiveness. Therefore, knowing that urbanisation has become fundamental to Europe today, we believe that the opportunity presented within vertical farming is ripe and should be adapted in Northern Ireland. According to Porter (1998), competitive advantage initially comes from the value that a firm is capable of creating for its customers; which is higher than the cost of creating it. It is also necessary for companies to develop new resources, capabilities, and activities; because of the scarcity of natural resources. (Cited from, Can Sustainability be a Key Driver of Innovation and Competitive Advantage? pg 4, 2011). By doing so, following the path of innovation, firms will gain a competitive advantage that is long-lasting. Porter and Kramer (2006) believe that when companies treat CSR using the same approach which they apply on their core business, then CSR will be a source of opportunity, innovation and competitive advantage rather than expense, restriction, or a charitable deed. As vertical farming is unheard of in Northern Ireland at the minute, even though people will be sceptical about its sustainability, it will be a new and innovative concept that will prompt debate and discussion. Not only will vertical farming act as a solution to pressing global issues but it will have the potential to change local ideals surrounding consumption as well as create an urban empowered culture. (Future Think 2008 and Hellstrom 2007) tell us that it is the disruptive end of the eco innovation spectrum that is most promising long term. With
  • 9. 8 | P a g e reference to vertical farming, changing the way in which food is produced via more innovative, environmental friendly technology whilst continuing to meet and exceed customer expectations is key and is what will differentiate this venture. Utilising networks such as Universities and local businesses and offering employment and social regeneration, vertical farming can offer tremendous value to not just our environment but our economy and social industry as well. It is the integration element to vertical farming that we feel makes it so unique, combining two sectors (agri-food and sustainable energy) and then adding value to not just the environment and the economy but to people’s lives and social well-being. Tallinn University of Technology supports this by stating, “The principle of sustainable development has been emphasised with increasing frequency since the last quarter of the 20th century – economic, social and environmental issues can only be resolved in combination, considering their confluence. The understanding is that environmental protection is an inseparable part of environmental use and finding solutions to environmental problems also promotes economic and social development. In the spatial scope it mainly applies to cities.” 3.2 New Business Ventures New Business Ventures theory can be applied to vertical farming as (Schumpeter 1911) tells us in his early writing that, “innovation can be understood as new combinations which can be applied to social change.” We have looked at the Northern Ireland Matrix Structure and combined the Agri-Food sector with the Sustainable Energy sector to identify an emerging threat to global food security and therefore aim to take advantage of this opportunity to combat this through eco innovative techniques. “Innovation describes an effort to create a purposeful, focussed change in an enterprises economic or social position according to (Drucker 1985.) Vertical farming within Northern Ireland specifically will encourage an urban empowered culture and change the way in which we think and feel about locally sourced produce and the effect this has on our environment and our local communities. 3.3 Social Entrepreneurship “While business entrepreneurship is the most powerful way of creating wealth for the population as a whole, social entrepreneurship is now coming of age, and putting the emphasis, the effort and the analytical skills in applying the methods that we learned here at Harvard Business School for finding the solution for social problems are absolutely fundamental” (Cited from, Business Model Implant for Sustainable Economic Growth, pg 8, 2012). We felt that within the new business ventures theory, social entrepreneurship was particularly fitting to vertical farming with reference to creating value and offering a benefit to society. (Roberts and Woods, 2005) agree with this theory and tell us that Social Entrepreneurship seeks to create something of value that is congruent with the social cause and the social community. Vertical farming in Northern Ireland will utilise local skills and expertise to carry
  • 10. 9 | P a g e out day to day farm maintenance which will therefore exploit an opportunity to provide local employment. Through social regeneration, vertical farming will reflect the creating value and benefit to society ethos of Social Entrepreneurship and therefore encourage a greener and urban empowered future in Northern Ireland. According to a study carried out by The University of Tallinn, public participation is an extremely important lever in the promotion of environmental protection and development processes. Citizens as well as social and private organisations are given the opportunity to express their opinions about the city’s policy goals or decisions that concern planned activities, discuss their opinions with others and be involved in decision-making. Active public participation facilitates finding solutions, promotes financing, saves time, reduces conflicts, educates, informs in consideration of public interests and generates civil liability. Vertical farming in Northern Ireland will ultimately be for the greater good of our environment but ensuring that our local communities can gain a better quality of life simultaneously. By interacting with the community and encouraging a strong relationship, vertical farming will offer employment, social regeneration and a learning opportunity regarding a healthier and more efficient lifestyle. (Bessant and Tidd 2013) tell us that Social Entrepreneurship is to create social change and value rather than commercial innovation and financial value, often resulting in growth in the economy and in employment levels. Within Northern Ireland, vertical farming will reinvest profit to sustain and develop business activity as well as offering effective social regeneration through the use of training programmes. An education system must also encourage values and behaviours to create not only professional skills, but also a real social capital, understood as “the values and beliefs that citizens share in the everyday dealings and which give meaning and provide design to all sorts of rules” (Cited from European Centre for the development of vocation training, Greener skills and jobs, pg 109, 2014.) Education, as one of the main socialisation factors, has the potential to promote values and behaviours consistent with a green society. This includes raising awareness about sustainability issues, as well as soft skills like critical reflection, mental models able to go beyond individual thinking, the ability to deal with interrelated and complex systemic problems, participatory attitudes and capacities to think about the future (Cited from European Centre for the development of vocation training, Greener skills and jobs, pg 109, 2014). Therefore, with reference to Northern Ireland and the sheer power behind the concept of vertical farming, in order to maximise the benefits that can be received, society must be educated about this new innovative theory. Referring back to the partnership of Universities and local businesses as well as using reinvested profit to organise training programmes for staff, vertical farming could reshape the way in which we as a nation think about food consumption and thus the impact our decisions pose on the environment in which we live. Sustainability also requires social innovation, with examples like the so-called “creative communities” (i.e. active, enterprising people who invent and implement new ways of dealing with everyday problems e.g. the Slow Food Movement, which defends the consumption of local and seasonal products, coming back to older, safer and more ecological practice. (Cited from European Centre for the development of vocation training, Greener
  • 11. 10 | P a g e Skills and Jobs for a Low-Carbon Future, pg 33, 2013.). Also known as a “Schumpeterian phenomenon” of “creative destruction” with the idea of moving away from consumerism and promoting values and behaviours that are more adequate for an innovative and sustainable society. Within Social Entrepreneurship, (Bornstein 2012) talks about transformative forces. (Cited from Social Entrepreneurship and Social Business 2012.) These forces describe the people with new ideas to address major issues in the world around us that ultimately influence the lifestyle of the customer both present and future. Vertical farming will welcome and encourage the collaboration of an array of alternative and diverse skill sets, opinions and visions contributing to an urban empowered culture in Northern Ireland. Thus, corresponding to the society we want for the future and ensuring we are developing competent human resources to contribute to this vision and make it a reality. Having analysed relevant theory we feel is applicable to vertical farming in Northern Ireland, in order to ensure an informed decision regarding sustainability and viability, we applied this theory to new innovative business models. 3.4 Business Models - SarahJane Owens B00586196 ‘A business model describes the rationale of how an organisation creates, delivers and captures economic, social and other forms of values’ (Osterwalder et al, 2010). In order to determine the success of Vertical Farming in Northern Ireland, a particular focus needs to be on the business model, which will thus introduce eco-innovation to the market and in turn promote its dissemination. Business models combine the core components of business strategies and operations that create and deliver value to the customers as well as to the organisation. The components of a business model typically include strategic decisions on customer segmentation, products and services to offer, business and research partners to engage with, resources to create and channels to deliver value as well as the underlying cost structure and revenue streams to ensure economic viability of business activity. Due to global challenges including the economic downturn, environmental degradation and resource scarcity, eco-innovation can be seen as a way to reconcile economic and environmental priorities and open new, sustainable pathways for the industry. The business model offers a comprehensive way to understand how this value is created and distributed. Eco-innovation aims to create both economic and environmental value and business models act as a value driver and enabler of green technologies and solutions. It is well recognised that innovation is a driver of economic and social progress within the macro environment as well as a driver of business success and competitive advantage at the micro level (Citied from The role of business models in green transformation p19, 2012).
  • 12. 11 | P a g e Michael Porter claimed that ‘innovation is the central issue in economic prosperity’. However in order to move towards a more ecologically sound and prosperous society, it is important to promote specific areas of innovation, in this case through Vertical Farming. Such innovation should allow for new ways of addressing current and future environmental problems and decreasing energy and resource consumption, while promoting sustainable economic activity (McIntyre et al, 2012). The business model concept serves to capture how organisations are able to match resources and capabilities to opportunities. In a volatile environment new challenges emerge and these developments need to be detected and understood as opportunities (Bessant&Tidd 2013). Lately, the interest of researchers from the field of corporate sustainability management has been focused on the importance of business models in this domain. The interest is justified in the context in which business models are seen as the very DNA of business (Ludeke-Freund, 2009) and as today’s economy is highly destructive of natural and social capital, the company’s logic of earning money might be the cause (Citied from The Business Model Implant for Sustainable Economic Growth p23, 2012). Business models and non-technological innovation are relatively unknown to policy makers and industry alike and therefore it is vital to analyse real life examples. Having conducted both primary and secondary research on Vertical Farming across the world we found a number of successful farms, both for profit and non-profit. Successful Vertical Farms included; Brooklyn Grange Singapore Sky Greens Cultivate London Linkoping Sweden UrbanFarm Dublin Each of these Vertical Farms were truly unique and offered valuable scope to base our own work on, however we decided to base our own model on Cultivates London’s business activity as the information provided through primary research was invaluable to the success of our project. Outlined in the table below is Cultivate London’s Business model, incorporating Osterwalder’s nine element business model canvas. Osterwalder’s canvas simplifies the value Cultivate London offer to customers and also effectively portrays the resources and partners required for creating, marketing and delivering their value.
  • 13. 12 | P a g e Cultivate London’s Business Model via Osterwalder’s nine element canvas) There is numerous aspects of Cultivate London’s model that we feel can be transferred into Vertical Farming in Northern Ireland. In particular we liked Cultivates Value Proposition and what they offer to the public. Their motto of ‘Hire local, grow local and sell local is an area in which we would incorporate and develop in our own model thus addressing our aim of encouraging an urban empowering culture in Northern Ireland. Secondly having explored socio-economic factors as an area in which we want to improve and integrate within our model it was pertinent that Cultivate London’s customer segment was the unemployed, focusing on people aged 16-24. This particular age group in Northern Ireland account for one of the highest rates of unemployment and therefore a prominent group we want to target. Furthermore, Cultivate London’s revenue stream comes directly from Government funding and regenerated profit from selling their local and organic produce. This particular area will be a huge focus for Northern Ireland, encouraging innovative ways to generate much needed profit to encourage sustainability. The analysis of Cultivate London’s business model highlights to what extent and how, environmental values are reflected within their value proposition, customer segmentation, use of resources, collaboration patterns and the management of cost and revenue streams. With this consideration, Vertical Farming in Northern Ireland can deliver both products and service via a new business model, redefining the problem and exploiting a new opportunity. Recent research into the links between strategy, innovation and firm performance argues for the need to make a clearer distinction between the technological and market aspects of
  • 14. 13 | P a g e disruptive innovation and to pay greater attention to business model innovation (Citied from Harvard Business Review p78, 2006).By definition, business model innovation enlarges the existing value of a market, either by attracting new customers or be encouraging existing customers to consume more. Business model innovation does not require the discovery of new products, services, or technology but rather the redefinition of existing products and services and these are used to create value (www.manginginnovation.com). In regards to Vertical Farming in Northern Ireland, the innovation is reframing a current business model i.e; Cultivate London and developing on their value proposition, revenue generation and capabilities and processes. Innovators tend to offer different product or service attributes to existing firms, which emphasise different propositions. As a result, business model innovation typically requires different and often conflicting systems, structures, processes and value chains to existing offerings (Bessant&Tidd, 2013). In this case, Vertical Farming in Northern Ireland will build upon Cultivate London’s business model and in turn capture and appropriate the benefits. By replacing old business practices, innovative business models enable organisations to restructure their value chain and generate new types of producer-consumer relationships and alter the consumption culture and use practices. The business model perspective is therefore particularly relevant to radical and systemic eco-innovation, including how business models and strategies can induce and help diffuse pressing global issues and enable transformation.
  • 15. 14 | P a g e (Vertical Farming NI Business Model via Osterwalder’s nine element canvas, see appendix for A4 image) Typically the development of a business model will include consideration of the value proposition, mechanisms for revenue generation, capabilities and processes and position in the value network ecosystem (Bessant&Tidd, 2013). With this in mind, we have focused on these areas in order to create a new reinvented business model on the adaptation of Osterwalder’s business canvas. Value Proposition; Value creation, both for Vertical Farming in Northern Ireland and the customer is at the heart of our business model. Social regeneration has been a major motivation within or development and therefore our target market will originate within this area, in particular helping the unemployed aged 16-24, vulnerable people, including the disabled and elderly and also people with mental health issues. The promotion and support of urban agriculture has the potential to contribute to efforts to addressing pressing challenges of poverty, under nutrition and sustainability among vulnerable towns in growing cities (Karanja et al, 2010). The capability of a person to produce, consume and sell food depends on the complement of assets or forms of capital at their disposal (Bebbington et al, 1999). Therefore Vertical
  • 16. 15 | P a g e Farming in Northern Ireland will offer value to customers in the form of resources including; access to land for food production, equipment and seeds to cultivate, human health and knowledge to enable people to tend and produce organic produce and a supportive set of social relations. Refocusing attention to innovation as a source of growth and recovery will in turn restructure the value chain and generate new types of producer/consumer relationships and altar the consumption process. Vertical farming therefore would offer economic, social and environmental value. Revenue Generation; Vertical Farming in Northern Ireland is a non-profit, public and social venture and therefore it is vital that the enterprise captures and appropriates the benefits of their offering. Revenue is less important than demonstrating value, however it is imperative to ensure resources, both human and financial are sustainable and therefore a particular focus should be made in this area. Vertical Farming in Northern Ireland could potentially have a number of revenue streams in order to support and maintain the project, driving innovation and prosperity within the community. Potential revenue streams would include; Government funding, via The Department of Education and Learning and The Department of Social Development. External Investors who wish to provide a sum of money in support of the project. Venture capital investment would provide the revenue to drive innovation forward within a small organisation at a faster rate than would ordinarily be possible and it provides a rigorous and ongoing monitoring process that responds by killing failure early (Bessant&Tidd, 2013). Crowdfunding, by raising monetary contributions from a large number of people via a promotional website. Regenerated Profit via selling organic produce, health and medical products, eco- tourism and educational collaborations. Capabilities & Processes; It is vital for Vertical Farming in Northern Ireland to deliver effectively and efficiently its product and service offerings. Required is a combination of resources, knowledge and capabilities, paying sufficient attention to how value will be captured in the longer term. With this in mind, Vertical Farming in Northern Ireland should concentrate on long term sustainability taking into consideration staff, funding, training programmes targeting their
  • 17. 16 | P a g e market segment and also potential legislations that may be introduced in future government policies. Also a huge emphasis should be placed on promoting Vertical Farming across Northern Ireland and actively taking responsibility to promote and support urban agriculture. Integrating both online and offline marketing strategies should effectively contribute to the success of the business model, encouraging and urban empowering culture in Northern Ireland. Position in the network; Vertical Farming in Northern Ireland’s business model aims to eventually help develop and implement policies enabling and driving green transformation through the wider diffusion of eco-innovation practices. Consequently suppliers, customers and collaborators will play a vital role in creating and capturing this value, encouraging innovation to enhance efficiency in the use of natural capital and fostering new economic opportunities from the emergence of new green activities. Business models, whether explicit or implicit underline all business plans and ventures. In order to strengthen and exploit a new market position, Vertical Farming in Northern Ireland will have to continuously rethink and reinvent their business model. Business model innovation is relevant to Vertical Farming in Northern Ireland as it is about being at the forefront of competition while assuring economic viability or sustainability of their operations. In other words, a company that tries to improve its sustainability performance has to change its business model, however incremental or radical, which can turn out to be the decisive factor for succeeding in that task (Ludeke-Freund, 2009).
  • 18. 17 | P a g e 4.0 Change - Michelle O’Hare B00587648 Innovation has affected the food industry similar to that in other industries. Globalization has revolutionized attitudes and created pressures on the industry to ensure food safety, nutritional quality, and consumers' demand for convenience, variety, and quality, combined with new possibilities for biotechnology (Fortuin, 2009). At a time when resources are limited, new solutions are therefore essential to stimulate change. Bessant and Tidd (2011) believe public services such as healthcare, education and social security may not generate profits, however they do affect the quality of lives for millions of people. They believe new innovative ideas have the potential to change people’s lives all over the world. Our research shows how urban agriculture, with a particular focus on vertical farming, has the potential to improve the quality of lives across the globe, while maintaining a sustainable environment for future generations. This section will explore the key drivers for change in regards to vertical farming in Northern Ireland. 4.1 Resources Human population is predicted to grow over a third between now and 2050. As these trends rise, market demand for food will also grow, thus generating fears for the land resources available to feed our planet. However Urban Agriculture promises an innovative and safe way to feed the rapidly growing populations in cities all over the world (Marks, 2014). Agri-Food is the most successful industry in Northern Ireland which has continued to grow despite the difficult economic downturn. This sector has displayed great prospects for sustainable growth through its sharp focus on export sales, innovation and productivity. The Department of Agriculture and Rural Development’s strategic vision for the industry is to grow a sustainable, profitable and integrated Agri-Food supply chain, focused on delivering the needs of the market, with plans to transform the industry into an ambitious, outward looking and globally competitive sector by 2020 growing profitably by 60%. (O’Neill, 2013). Economists argue that Innovation is strongly associated with growth (Bessant and Tidd, 2011). Through the innovation of vertical farming, if practiced on a large scale in Northern Ireland, these objectives for agricultural growth could be successfully achieved. In relation to this, if enough food is supplied in a sustainable fashion, this will maintain food security for all of humankind for the future, while allowing large regions of land to return to their natural landscapes, restoring ecosystem and habitats. (Despommier, 2014a) 4.2 Health The UK has the highest level of obesity in Western Europe. It is estimated by the year 2050, more than half of the UK’s population could be obese. In correspondence, childhood obesity in Northern Ireland has increased dramatically in the past 3 decades. It is estimated that one in three boys and one in four girls are either overweight or obese. (NHS, 2014).
  • 19. 18 | P a g e However, this challenge has created an opportunity in the Agri-food industry. Innovation in consumer foods has been encouraged by recent trends towards wellbeing, triggered by these rising health insecurities (Allio, 2005). The innovation of vertical farming offers a solution to many health matters offering health conscious individuals many benefits for overall well- being. Food production and gardening have proven to have exercise-related health benefits thus reducing the risks of obesity in children and adults (Bellows et all, 2014a). Gardening provides a work out for the respiratory and cardiovascular systems burning little or intensive amounts of energy. Gardening exercise can increase muscle strength, endurance and flexibility (Anon, 2014) thus preventing the risks of obesity among individuals in Northern Ireland. School gardens have become increasingly popular in education. In today’s society there is an increasing need for food security and environmental protection. School gardens are gaining a reputation for the promotion of a healthy diet, development of livelihood skills and environmental awareness. (Muehlhoff and Boutrif, 2010). Vertical farming projects could therefore become a seed ground for Northern Ireland’s health and security, encouraging healthier diets and improving overall health for future generations of the nation. A recent farming report agrees with gardening and farming projects. It stresses the importance of agriculture for teaching children science and geography. School children and children must be taught about this major role in order to manage and maintain the environment and increase biodiversity in the future (Fursdon and heath, 2013). Urban farming has also proven to have other health advantages. Today, horticultural therapy is well established with many health care professionals, proven with patients to be more therapeutic than most rehab activities. Outdoor activity, working with plants and exposure to sunlight can benefit mental health, mental outlook and personal wellness of individuals as it has the ability to simply take people's minds off their worries thus relieving pain, anxiety and depression (Bellows et all, 2014b). Vertical farming in this sense would be very beneficial to Northern Ireland where mental health problems are now regarded as one of the most common illnesses, accounting for a largest share of disease, than any other health condition in the nation. (McGimpsey, 2011) 4.3 Community As well as benefiting individuals, vertical farming could help develop a better community health for Northern Ireland. Community gardens have been a response in many areas in efforts to address the intolerant crime that dominates our criminal justice system (Herod, 2014). Neighbourhoods which embrace community gardening, allowing people to come together in harmony to garden, have seen an improvement in crime rates. (Tang, 2011) This is of particular importance to Northern Ireland, where crime rates have escalated dramatically in recent years. In 2012/13 there were 100,389 crimes recorded by the PSNI in Northern Ireland (Nisra, 2014). Most of these crimes committed were hate crimes such as homicide and robbery which has been essentially connected with terrorism and the "troubles" in Northern Ireland’s history. (Lockhart, 2014) Adapting this simple farming method to communities in Northern Ireland,
  • 20. 19 | P a g e could be a potential solution in bringing individuals together, building community relations and creating a supportive environment to reduce crime rates in these areas. 4.4 Economy Social challenges can be opportunities as developments in information and communications have created exciting new possibilities for improving our ability to meet social needs. (European Communities, 2011). The promotion and support of vertical farming in Northern Ireland can offer economic and social opportunities in advantaging the poor urban societies promising food security and employment opportunities. The financial crisis of 2005 together with the recession that followed left Northern Ireland to experience a harsh economic period, being effected worse than any other region in the UK. This disaster resulted in countless individuals facing unemployment, poverty and deprivation (Ross, 2010). Vertical farming projects could help the people of Northern Ireland get back in to work, creating new jobs thus rebuilding economic security after the unemployment levels fell most rapidly down 0.8 percentage points to 7.2% (Anon, 2011). Agricultural food production has been seen to enhance food security, provide additional income, and reduce vulnerability during times of economic shocks, environmental dehydration and chronic instability in aiding the urban poor to access basic life resources. (Maxwell 1995). 4.5 Pollution Northern Ireland are particularly prone to high levels of air pollution more than anywhere in the UK due to polluted easterly air flows from England and the build-up of local emissions (Anon, 2013). The DOE are currently working towards reducing Northern Ireland’s carbon footprint. The ‘Programme for Government’ aims to reduce greenhouse gas emissions IN Northern Ireland by 25% by 2025. (DOE, 2014). Vertical farming could significantly reduce these carbon levels as urban gardens have proven to enhance air quality as plant foliage reduces carbon dioxide ozone concentrations and lowers urban mass temperatures. (Bellows et all, 2014c) Supplying Northern Ireland with locally produced fruit and vegetables from vertical farms means food is less travelled therefore reducing carbon emissions and pollution to the environment. In addition, vertical farming can ensure year around crop production in a protected, managed environment. These managed environments means less need for harmful chemicals such as pesticides, herbicides and fertilizers which pollute our atmosphere and waters (Despommier, 2014b). It is evident that this change is needed in order to maintain a sustainable environment for future generations not only in Northern Ireland, but across the globe. The potential to extend vertical farming production is enormous. Although much more research needs to be carried out on the topic, it is evident this change will only be of benefit to urban environments to achieve a greener, healthier future.
  • 21. 20 | P a g e 5.0 Development - Christina Bradley B00561067 In order to generate profit from a vertical farming project in Northern Ireland we looked in to what kind of opportunities could be exploited in order to do this. To begin with we have spoken with local food restaurants particularly Slims Kitchen on the Lisburn road who advocates of promoting a healthy eating lifestyle and they have stated that they are extremely interested in the possibility of having access to fresh produce grown locally. (See Appendix) Using the new University of Ulster Campus in Belfast City centre as an example of where a vertical farm could be based would mean more access to local businesses in St. Ann’s square and thus reducing the food to fork mile as a result. This area is thriving with food and restaurant businesses and by supplying local produce to those establishments would be developing on the agri-food cluster which has been stated as one of Northern Ireland’s main innovative sectors. (Matrix NI 2008) A big trend within the urban farming industry at the moment are care farms. Care farms are defined as the therapeutic use of agricultural landscapes and farming practices. (Elsey Care Farms 2013). These are community urban farms that provide health, social and educational care services to groups of people suffering with different problems such as mental or physical disabilities. In a report conducted by Natural England, it stated that 80% of care farms in the UK cater for 50 clients per week with most of the clients visiting from one to three times in one week. 90% of the care farms reported that they provide social outcomes for their clients, followed by 83% educational and 80% health outcomes. Over 66% of care farms in the UK deliver all three types of outcomes. (Natural England Report 2014) The care farms are mainly used as a form of therapy for the clients as they can interact and feed the animals as well as maintaining the plants and food there. (Care Farming UK 2014) An example of educational centres collaborating with a care farms were Leeds and Essex University and this shows that there is a possible opportunity for the University of Ulster to establish a care farm link if they were to exploit this viable opportunity. After conducting an interview to the Department of Agriculture and Rural Development Minister Michelle O’Neill she named a number of grants available to a project such as this and the main one being the Awards for All Big lottery Fund. (See Appendix). They provide grants for community farms who promote therapy for people suffering with stress, anxiety or depression. (Big Lottery Fund UK 2014). This would become a social and health benefit to anyone willing to learn how to grow their own produce. An example of a local educational centre that has benefitted from a £10,000 award was St. Francis’s Primary School in Lurgan and they were able to develop a nature garden for their school. This reinforces that there are large amounts of funding available to start up these types of projects. (Lottery Culture 2013) Another source of funding is from SoFAB which stands for Social Farming Across Boarders. They are a three-year project to establish social farming in Ireland and is funded by the European Regional Development Fund. The project is led by the School of Agriculture and Food Science, University College Dublin in partnership with Queen’s University Belfast.
  • 22. 21 | P a g e Social Farming provides people who use services with the opportunity for inclusion, to increase self-esteem and to improve health and well-being by taking part in the day to day activities and responsibilities of the farm. The visitors can benefit from participation in farm activities in a non- clinical environment. (SoFab.org 2014) In regards to vertical farming generating profit as well as adding benefit to society, the produce that we grow to local restaurants markets, artisan food stores and health and cosmetics industries. As the weather in Northern Ireland affects so many agricultural businesses, there are a few ways in which the food growth can be sustained all year round. A growing method such as a polytunnel, which can be used to ensure the growth is the most popular choice by urban farmers. Polytunnels are a low cost polythene covered arched frame in which it retains its own heat and light to grow produce such as a potatoes, carrots, lettuce, apples and mushrooms all year round to name a few. One of the vegetables big in demand at the moment are mushrooms, with them accounting for 50% of Ireland’s exports to the UK every year. (The Mushroom People 2012) Another year round growing methods is Aquaponics. These are recirculating aquaculture systems that incorporate the production of plants without soil. Recirculating systems are designed to raise large quantities of fish in relatively small volumes of water by treating the water to remove toxic waste products and then reusing it to produce large quantities of crops. (SRAC 2006) Hydroponics is the third growing method we have looked into which is related closely to aquaponics. Hydroponics is the growth of plants vertically one above the other indoors, resulting in more room to grow extra produce all year round. It collects all the rainwater that has fell and filters and reuses it on the plants again which reduces water waste by 75% and controls what exactly is being put on the plants. (Renewable Agriculture and Food Systems 2014). Food such as Lettuces, celery, spring onions, herbs and tomatoes can be grown hydroponically and are available all year round. Aside from the growing methods one of the big trends emerging within the farming and agriculture sector is worm casting. It has become high in demand due to the fact that they are an organic fertilizer and one of the most populous sources of bacteria that can make a great profit as it is seen as a premium product and a powerful export that other farms want to buy according to an interview conducted with the urban farming guys in New York City. (See Appendix) Another sector that the produce of a vertical farm can contribute to is the cosmetics industry. Snail slime is used in many cosmetic products due to it being full of proteins that stimulate collagen growth in the human skin. It has attracted a premium price in the cosmetics market in France where it has been highly sought after all types of skin companies. One business has harvested nearly 15 tonnes of snail mucus extraction in 2013. (Reuters 2013) In addition snail shells can also be used as a mineral fertilizer. Due to the produce of a urban farms being very organic is being bought up and manufactured into a range of hair and skin products such as soaps, lotions and hair care. Since the products contain natural ingredients and can be sold for a premium price to people suffering with different types of skin conditions such as eczema. There are many local businesses which produce and sell these kinds of products in Northern Ireland and examples of this being
  • 23. 22 | P a g e Beginnings Soaps in Magherafelt and Queen Bee Naturals in Dungannon. They source their organic ingredients from local farms to guarantee high quality products to their loyal customers. (Beginings Soaps 2014) There is also potential for vertical farms to contribute to the pharmaceutical industry as Cultivate London showed in their Olympic garden by growing tropical produce which contributed to the development of vaccines. Another way in which locally grown produce can add value to the health industry is via the production of health juices. A local artisan company from Co. Down have established a business based around wheatgrass health juices which are becoming more popular due to it containing over 90 minerals such as potassium, calcium, magnesium and sodium. One 25ml shot of wheatgrass juice is the equivalent of eating 1kg of green leafy vegetables. (Squeeze Juice Cafes 2014) They have their own artisan juice store in Warrenpoint and sell their products to customers all across the UK and Ireland. Another development that a vertical farm can add value to is the educational side. With the negatively surrounding subjects such as climate change, most young people are beginning to care deeply about environmental issues and are striving to make a positive changes in the environment around them. In order for people to make these changes it is vital that they are taught how to, when to and why to. Vertical farming could encourage children to learn and enjoy food education and make them understand the importance of growing their own crops and the health and eco-friendly benefits that they are contributing to their country as a result. A charity ran programme who are reinforcing this vision are Eco Schools Northern Ireland. They are part of the top global sustainable school programme in the world who promotes sustainable living through whole-school action supported by learning resources and management tools. They provide students with environmental awareness through their entire school in a way that links to many curriculum subjects. They encourage, educate and award schools who create and develop eco-gardens. (Eco Schools NI 2014) There are now 1,165 Eco-Schools in Northern Ireland representing 98.9% of all schools. Northern Ireland was the first country in the world to receive the world’s first Green Flag award. (doeni 2014) This reinforces the importance of changing the way in which the younger generation are being educated in schools about growing and eating healthy food and by making it a way of life it will be seen as a positive influence on everyone. Another way of educating farming skills is by holding educational workshops for groups of children and adults will encourage them all to share their expertise and help them to gain the adequate skills to grow their own produce in a social environment. An example of this is Brooklyn Grange in NYC who have attracted over 10,000 students since 2011 and provided educational excursions and workshops where they learn about earth science, nutrition, and environmental sustainability. Their goal is to prepare the next generation of urban farmers for success by teaching important skills through a hands-on educational program. (Brooklyn Grange Farm 2014). The last sector we have looked into is tourism. Ireland is renowned for having a massive agricultural industry and by having an educational attraction such as a vertical farm would be a profitable opportunity for tourists coming to observe its production on top of different buildings around the city. In 2013 Northern Ireland seen over 2 million visitors engaging and embracing its huge culture. (Northern Ireland Statistics Bulletin 2014). A project such as this
  • 24. 23 | P a g e has the potential to raise these statistics even higher and become a big attraction in the tourist industry being the only potential rooftop farming project of its kind on the isle of Ireland. According to the discover Northern Ireland’s green travel guide, they encourage tourists that come and visit to “Enjoy our local produce. Support local farmers, enjoy the fresh, seasonal produce and keep food miles low, all at the same time. It makes perfect sense to eat local”. (Discover NI 2014) This reinforces the importance of promoting sustainable green tourism in Northern Ireland and having a vertical farm would only benefit this further. Finally, Canada has seen many vertical farms being built all across Montreal and they are promoting this as a tourist and educational attraction which has seen them profiting from this greatly. A vertical farming project such as this being established in Northern Ireland would see this country raising profits and tourist numbers which will be re-invested into developing more as a result which will therefore benefit everyone living here. 6.0 Conclusion - Sarahjane Owens B00586196 Innovation is the tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation (Bessant&Tidd, 2013). The financial crisis of 2008 together with the recession that followed it has refocused economist’s attention on the determinants of business cycles. What is different now is the importance that policy-makers attach to entrepreneurship as a source of growth and recovery (Lundstrom et al, 2005). Horticulturists play a major role in all areas concerned with managing and maintaining our environment, in turn increasing biodiversity. It is therefore vital to revive industrial activity, job markets and competitiveness, while simultaneously tackling global environment challenges such as climate change and natural resources scarcity in order to seek more innovative ways to promote economic activity. Having conducted both primary and secondary research, our studies show how adopting an integrated approach and applying innovative technologies to issues of renewable energy generation, food production and waste management, Northern Ireland can develop unique solutions on post-industrial sites in the form of Vertical Farming. Change comes at a time when the social dimension of agricultural production and sustainability is being re-emphasised and popular attention to food security has been heightened following the dramatic rise in world food prices in 2008 (Lyson, 2004). Agricultural food production by the urban poor can enhance food security, provide additional income and reduce vulnerability to economic shocks, environmental degradation and chronic instability in access to basic resources (Citied in the International Journal of Agricultural Sustainability, 2010).
  • 25. 24 | P a g e The research we have carried out has highlighted potential challenges for vertical farming with regards sustainability and legislation. Through more research and the development of eco-innovative business models, vertical farming in Northern Ireland can be viable for long term success. A realisation from policy makers that there is a clear need for change in Northern Ireland will encourage active promotion and thus the dissemination of Vertical Farming from the outset. Subsequently we hope the unique value proposition that Vertical Farming will offer the economy, environment and society will have the necessary effect to derive long term investment and encourage an urban empowering culture in Northern Ireland.
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  • 32. 31 | P a g e Appendices Presentation – Feeding the world in the 21st century Record of Team Meetings Primary Research Interview One – Michele Mayo of ‘The Urban Farming Guys’ NYC 31/10/14 Interview Two - DARD Minister Michelle O’Neill 5/11/14 Vertical Farm Northern Ireland Business Model
  • 33. 32 | P a g e Record of Team Meetings Week Two (30/09/14) * Everyone Present * General discussion on topic area in regards to assignment title and Northern Ireland Matrix Structure. * Identification of a number of potential research areas. For week three meeting, group members to research matrix structure and general innovation and entrepreneurship theory. Week Three (07/10/14) * Christina absent * Group analysed research carried out with regards potential topics with mileage. * Agri-food and sustainable energy was of particular interest. It was agreed further research into this area needed to be explored in order to assess project viability. * Group members looked at the agri-food sectors across the world to gain an understanding of this concept with regards social regeneration and funding. For week four meeting, it was necessary for the group to apply research discussed in meeting to Northern Ireland. Each member was allocated an area to look at with regards unemployment levels, pollution, government funding, vertical farms across the world and value to society. SarahJane – Unemployment and Social Regeneration Méabh – Government Funding Michelle – Socio-economic factors Christina – Value proposition Gavin – Research into Vertical Farming across the globe Week Four (14/10/14) * Everyone present * Each group member informed the team of their research findings and we agreed that the area of agri-food and sustainable energy was an innovative, relevant and viable assignment topic.
  • 34. 33 | P a g e * We identified areas for methodology eg; interview with Michelle O’Neill (DARD minister), Cultivate London, Dublin Urban Farm. * The team developed a clear aim and strategic objectives in order to carry out relevant research efficiently whilst ensuring we were finding valuable information. * At this meeting we each took responsibility for and individual contribution to the presentation and report in the form of Context, Theory, Change and Development. Gavin – Context Meabh & SarahJane – Theory Michelle – Change Christina - Development For week five, Christina was meeting with Michelle O’Neill to discuss the viability of vertical farming in Northern Ireland form a government perspective. Michelle to speak with Cultivate London about their business activity. Other group members to continue with relevant research regarding their quadrant. Week Five (21/10/14) * Everyone Present * Christina and Michelle both provided a detailed analysis of the interviews the carried out. From this it was clear there was sound and relevant evidence to support the concept of Vertical Farming in Northern Ireland. * From these findings we decided to use Cultivate London’s business model as a basis for the development of theory. * From a funding perspective through research findings we identified funding as a potential challenge as well as an opportunity. The idea of collaborating with local businesses and universities as partner networks was explored. For week six, SarahJane looked at Osterwalder’s nine element business canvas theory in relation to Cultivate London. Gavin suggested interviewing representatives from local hospitality cluster including SOFAB and Slims Healthy Eating Kitchen. Méabh – Research further into funding as both potential threat and opportunity in relation to other vertical farming corporations. Christina – Product development in regards to organic produce. Michelle – Investigating change with regards to impact on society.
  • 35. 34 | P a g e Week Six (28/10/14) * Everyone Present * Each group member informed the team of their findings from research conducted. * SOFAB and Slims Healthy Eating kitchen were very enthusiastic about the vertical farming concept and this therefore enabled us to use local hospitality clusters as possible networking partnerships, even potentially investing in the project. * Within our research, we discovered Dickson Depommier, a vertical farming futurist. Gavin emailed this contact and we gained in depth analysis regarding vertical farming today and its development. For week 7, each team member were given the task of continuing to develop their quadrant of the overall report and presentation. Week 7 (4/11/2014) * Everyone Present * The group began to think about the presentation which would take place in week 10 with regards summarising key points to address in order to convey overall progression of assignment. * After having been introduced to new business venture theory in Marys lecture, it was evident that this would be appropriate theory to incorporate within our research and Méabh accepted responsibility for doing so. * At this stage, we felt it necessary to discuss each of our quadrants to ensure the team were content with the overall progress of the assignment. * We identified areas that may need more research to ensure viability for the report including sustainability and funding. For week 8, the group were each to collate a first draft of their overall contribution to the assignment. This would enable the team to address any weaknesses and ensure effective results. Week 8 (11/11/2014) * Gavin absent * The group presented their first draft of initial contribution to report and we each evaluated the strengths and weaknesses of each other’s work. * We took the opportunity at this time to amend each piece of work and were then able to begin to select which information to outline within the presentation.
  • 36. 35 | P a g e Week 9 (18/11/2014) * Christina absent * The group constructed a prezi presentation through which to present a summary of our overall report. For week 10, the group were each to take responsibility for learning their own presentation sections to ensure an effective and cohesive delivery on the day. (The group met up twice more this week and booked a study room in the library through which to practice the presentation.) Week 10 (25/11/2014) * Presentation Day! * After having given the presentation, the group could then focus on writing up the overall report. * We spent time collating relevant and necessary references that would increase the viability of the vertical farming concept in Northern Ireland. For week 11, each team member was asked to write up their quadrant to enable us to collate the report and add an introduction and conclusion. Week 11 (1.12.2014) * The group collated the final report and SarahJane and Méabh added both the introduction and conclusion, having read and incorporated elements of the main text. * The report was submitted on Wednesday 10.12.2014 (Week 12) Interview Conducted with Michele Mayo of The Urban Farming Guys NYC 31/10/14 1. How exactly have you drawn in people to your urban farming project? Here are a few methods that have helped to draw people to our organization: videos posted on our site & our Facebook page. Distributing flyers to our neighbours to let them know about events we are putting on that they might be interested in. Word of mouth--people that come tell their friends & family. Weekly Saturday workdays, where various individuals or groups come and help to work on a project together.
  • 37. 36 | P a g e 2. Who are your volunteers do you find that come to the farm and where do they come from? Some of our volunteers have been the following: There have been groups from churches & non-profit organizations, locally & nationally. There have been high school & college groups from various Science & Ecology Classes. There have been Boy Scout & Girl Scout troops. There have been individuals and married couples from all over the USA and from countries all over the world, who have come to intern from one month to a year. 3. What other ways are you generating profit from your urban farm at the moment? We have recently established a commercial scale worm farm and we are now turning up to 10,000 pounds of rotting food and scraps and pre composted materials into a premium organic fertiliser every month. Worm casting is one of the most bio-diverse and populous sources of beneficial bacteria. This has become a tremendous building block on our farm and a powerful local export. Thanks so much for choosing us to conduct your interview with. We wish you much success in all you endeavour to do! Michele Mayo www.theurbanfarmingguys.com Interview conducted with the DARD Minister Michelle O’Neill 5/11/14
  • 38. 37 | P a g e 1. What are your thoughts on agriculture today in NI and how is it important for the future? Agri-food - comprising both farming and food and drink processing - is one of our most successful industries with a proven track record for growth. The latest statistics show turnover in the food and drinks processing sector to be £4.5bn in 2013, an increase of almost of 7% in the previous year. Indeed, sales growth over the last five years has averaged 7% per year. Employment in the sector has also been growing – in 2013, there were the equivalent of 20,390 full time employees within the food and drink processing sector, accounting for 27% of employment within the wider manufacturing field. Our economic successes are underpinned by the strength of our local products. For example, at the recent Great Taste Awards 99 local companies secured a record 264 awards, including 11 in the highest three star category, with eight local products listed in the Top 50. Globally, the food industry faces both opportunities and challenges now and in the years ahead – population growth and increased demand against a background of increasing scarcity of land, water and energy and a need to safeguard our natural resources for future generations. I believe there are real opportunities for the sustainable growth of our local industry, in existing and new markets. That is why I, together with the DETI Minister appointed an industry led Agri-Food Strategy Board (AFSB) to chart the way ahead for the sector to 2020. In its report Going for Growth, the Board outlined a strategic vision for the sector and made 118 recommendations to support delivery on 4 ambitious targets: Grow sales by 60% to over £7bn; Grow employment by 15% to over 115,000; Grow sales outside NI by 75% to £4.5bn; and Grow by 60% to £1bn the total value of products and services. DARD is leading government action to address 41 of the recommendations. Our draft Rural Development Programme worth up to £623m is a key mechanism for delivery and contains a range of new support schemes to deliver on Going for Growth, including a Farm Business Improvement Scheme of up to £250m and a complementary Agri-Food Processing Investment Scheme. The date for opening any of the proposed schemes will depend on the draft Rural Development Programme being approved by the European Commission and on getting the necessary business case approvals and funding in place. 2. How would something such as a vertical farm benefit Belfast in your opinion? In the first instance, I want to see our local agri-food industry meeting the challenges set out in Going for Growth and generating jobs and wealth for people and communities in towns and villages, across the north. I welcome innovative farming practices, and think all potential options should be explored, including vertical farming. In terms of direct benefits to Belfast, I
  • 39. 38 | P a g e could see vertical farming offering people living in the city centre the potential for new job opportunities and ready access to good quality, local, sustainable food. The Going for Growth report highlights the challenges for our horticultural sector to achieve the necessary scale to invest in processing capacity. Nonetheless there are market opportunities for niche products – for example specialist health juices have been produced in the north from crops grown using hydroponics. At a social level, it could also represent an opportunity for urban dwellers to deepen their connection to farming and food and help regenerate the urban environment. However, it is unclear whether local climatic conditions and other local factors would give us a sufficient competitive advantage in this type of farming to make the significant investment worthwhile. 3. How do you see innovation connected to agriculture? I believe innovation is vital for the sustainable growth of the local agri-food sector. It helps drive efficiency, improve productivity and develop new products to meet changing market demands. My department supports innovation through R&D projects commissioned from AFBI; and the DARD Research Challenge Fund which co-funds industry-led projects. We are also funding postgraduate studentships to help drive innovation in the industry and provide high level training to help develop the science base in the north. To facilitate the local agri-food industry in accessing EU research money, we are funding a NI Contact Point who is already developing links with local stakeholders and across Europe. 4. Which type of grants would be available for a vertical farm? It would depend what the focus of the project was. The proposed DARD Farm Business Improvement Scheme may offer the possibility for knowledge transfer and technology opportunities applicable to vertical farming. However, to be eligible for support through the Rural Development Programme projects should be located in a rural area, or the benefits of the project should be in a rural area. Any settlement of 4,500 persons and above is excluded from support under the Programme. There may also be support available from other government departments and agencies, including DETI/InvestNI.
  • 40. 39 | P a g e