Corporate & Investment Banking l TMT Group

TMT Content Sunday: Vertical and Urban Agriculture

Confidential | July 2018
The Future of Food and Agriculture

10 Billion – World Population in 2050

70% – More food to be produced by farmers

Currently, agriculture contributes to 3% of global GDP.

Despite progress in improving levels of nutrition and health, almost 800 million people suffer hunger and
2 billion suffer micronutrient deficiencies.

At current rate, by 2030, 8% of total population or 650 million people will still be under-nourished.

of all farmland global deforestation $1 Trillion investment

necessary until 2050 for irrigation
25% already rated as ~80% driven by agricultural
highly degraded concerns water management in developing
countries alone

Source: Food and Agriculture Organization of the United Nations.

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Vertical and Urban Farming

Vertical Farming
Urban agricultural practice of growing food crops in vertical stacked layers, vertically inclined surfaces, or
integrated in other structures

Key Benefits of Vertical Farming

Protection of Crops
Increased Crop Efficient Resource
from Adverse
Production Usage
Climatic Conditions

Major Growth Drivers

Rising Global Reduced Climate Adoption of Improvement in Advanced Plant Development of Synthetic
Population Dependency Organic Foods Irrigation Techniques Breeding Nitrogen Fertilizers

Source: Food and Agriculture Organization of the United Nations, World Governments Summit and Businesswire.

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Alternate Methods to Soil-enabled Vertical Farming

Hydroponics
Uses mineral nutrient solutions to feed the plants in water, without soil.

Hydroponics is a subset of hydroculture, the method of growing plants in a soil-less medium, or an aquatic
based environment.

Aeroponics
Plants are grown and nourished by suspending their root structures in air and regularly spraying them with a
nutrient and water solution.

Owing to their enclosed environments, the nutrient-water mix is used more efficiently by the plants and require
less water for them to grow and thrive.

Aquaponics
Implementing a combination of Aquaculture (raising fish) and Hydroponics in a single system.

The fish waste provides an organic food source for the plants, and the plants naturally filter the water for the fish.

Source: GrowthTechnology and MaximumYield..

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Vertical Farming Market Overview

Global Vertical Farming Market is expected to reach $10 billion by 2025.

Key Opportunities

Increased Usage of Highest Growth in

Increased Usage of Increased Usage of Indoor Climate North America
IoT Sensors Biopharmaceutical Control Systems and
Products Increased Demand
Artificial Lighting in Asia Pacific

Major Constraints

Limited Varieties
High Initial Likelihood of Higher of Vegetables
Investment Costs for Costs for the Produce and Fruits
Land and Technology to be borne by the Consumer

Source: Grandview Research and Businesswire.

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