Driving Sustainable Growth in Crop Cultivation: AeroFarms' Innovations
Explore how AeroFarms is reshaping crop cultivation with innovative vertical farming solutions. This consultancy project delves into key issues such as consumer interest, food sustainability, and market competition while offering strategic recommendations for future growth.
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Presentation Transcript
SUSTAINABLE GROWTH FOR THE FUTURE Goodman School of Business GSB Consulting Jason Wagner Presented to: Ed Harwood, David Rosenberg, Marc Oshima Anna Cherdakova Puneet Rastogi Piash Saha
PROBLEM Can AeroFarms mold consumers interest in vertical farms? Can AeroFarms meaningfully solve the world s food problem without cultivating high calorie-based proteins and grains? What should we do to make vertical farms the future of crop cultivation? Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
RECOMMENDATION Research on protein and grain Innovative marketing plan 3 new farms by 2022 Tier 2 city Begin research on high calorie foods Sustainable expansion Raise awareness Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS INTERNAL 95% less soil Zero pesticides Efficient operations Data driven Short production cycle 10X capacity Key takeaway: producing most nutritious products locally Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS EXTERNAL Growing global population Shrinking agricultural land Three food groups needed Increasing demand for Aeroponics Key takeaway: company of future that will fill need Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS COMPETITION Challenge: High capital costs Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS CUSTOMER PROFILE 30 years old and above Environmentally conscious Sources organic foods made without pesticides Higher than average income Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS Twelve farms by 2022 Revenue of $140 million by 2022 Long term: Greens + Proteins + Carbs Superior products Nine farms Greens only Turned profit 19 Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ANALYSIS S Organizational and operational resources Rapid expansion Data driven Largest vertical company No protein or grain production Low financial returns High start-up costs No organic seal W Growing Demand Protein and grain production Develop new markets O Unstable funding and political scene Public perception (carbon footprint) Talent acquisition Competition T Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
ALTERNATIVES Decision matrix Aligns with Aero Farm Objectives Strategy Consumer Perception Market Growth Revenue Growth Capex Greens Only Raise Money Increase to 25 farms Raise Awareness with Collaboration Increase Sustainable farms focused on Proteins Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
FINANCIALS Assumptions 100 Mil raised in Series E funding would still have at least 45% in reserves Around 15% of market share is assumed for Firms not mentioned in the Material Market share from every new farm will contribute 2% towards our market share Cost of protien oriented farms will be similar to cost of greens Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
FINANCIALS Revenue of Vertical Farming & Aerofarm Vertical Farming Market AeroFarm 600 506 500 430 400 340 280 300 220 180 200 100 0 2017 2018 2019 2020 2021 2022 Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
FINANCIALS Cost of Average Proposed New Farm Average farm size ( in Acres) Average cost of Land in Tier2 cities Total cost of land Cost of electricty 1300 8000 10400000 3000000 Total cost of farm in tier 2 city 13,409,300 Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
IMPLEMENTATION What Build three facilities in Tier-2 cities (20%) Why High Calories protein and grains How Feasibility Test Research about ideal location Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
IMPLEMENTATION What Tie-Up School districts. E.g: Rockland School district Farms to Tables Restaurants Why Address Sustainability Farming How Contact Restaurants within 100 miles Hire 5 sales consultant and 2 business development executive Increase word of mouth marketing Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
RISK Consumer buy in -Marketing plan which includes younger generations Lack of organics certification -Work with USDA and start eliminating roadblaock Attracting talent -Working with post secondary institutions on research Ability to raise additional funding -Focus on farms becoming profitable as soon as possible Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
KEY TAKE-AWAYS Sustainable Consumer Awareness 140 Million in revenue by 2022 Problem Recommendation Analysis Alternatives Financials Implementation Risk Conclusion
