The Rise of Plant Factories in Taiwan: A Glimpse into the Future of Agriculture

In Taiwan, agriculture is undergoing a revolution, thanks to Plant Factories with Artificial Lighting (PFALs). These innovative setups, which allow for the controlled, indoor cultivation of plants using artificial lights, are sparking interest due to their potential to address environmental concerns and produce healthier, safer food. Over the last few years, the number of PFAL-related companies in Taiwan has skyrocketed, showcasing both opportunities and challenges in this new wave of agricultural innovation. But how exactly do these businesses operate, and what makes them unique?

Let’s break it down into some digestible bites.

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What Is a PFAL, and Why Does It Matter?

PFALs are indoor farms where plants are grown under artificial lighting, usually LEDs. They eliminate many traditional farming risks, like unpredictable weather or pests, creating an optimized growing environment. Taiwan’s adoption of PFALs has grown rapidly since 2010, driven by consumer concerns over food safety, environmental sustainability, and the benefits of locally produced crops. However, while PFALs offer stability in production, profitability isn’t guaranteed unless carefully planned.

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The Various Business Models of PFALs in Taiwan

PFALs in Taiwan have embraced several unique business models. Each model caters to different market demands, from fresh leafy greens to processed vegetable products. Here are the key ones:

1. Direct Consumer Sales (B2C)

In this model, PFALs produce leafy greens—such as lettuce and basil—and sell them directly to consumers. Membership programs, e-commerce websites, and local community outlets are common channels. What’s particularly interesting is the emphasis on the quality of packaging. By using innovative designs like sealed plastic bags or vented packages, businesses communicate the safety and convenience of their products. Imagine buying a salad that you can eat straight from the bag without washing it—that’s the idea.

Pro tip: Avoid selling through supermarkets due to high shelf charges. Focus on direct channels like memberships or home delivery.

2. Processing and Product Diversification

What happens when a PFAL has surplus crops? Some companies have creatively turned this challenge into an opportunity by processing vegetables into other goods. Think ice cream, noodles, face masks, and even nutritional supplements! One business, for example, added lettuce to noodles and ice plants to cocktails. Ice plants, by the way, have a salty, fruity taste, making them a culinary favorite in Taiwan.

Pro tip: Diversify your product line! When fresh sales slow, offer processed items like snacks or skincare products with vegetable additives.

3. Joint Ventures with Construction Companies

One very futuristic model involves integrating PFALs into residential projects. In these setups, homes are equipped with indoor plant-growing systems, allowing residents to grow their own veggies. Meanwhile, a service company supplies them with seeds, nutrients, and seedlings. It’s an excellent example of how PFALs are merging with lifestyle trends focused on sustainability and self-sufficiency.

Pro tip: Partner with real estate developers for a long-term, innovative business strategy that capitalizes on the green living movement.

4. Demonstration Sites and Educational Services

Several companies in Taiwan operate demonstration PFALs to educate potential customers. These serve as showrooms to convince people of the benefits of PFALs and also offer educational workshops. Some companies even offer tours and training programs, making it possible for people to learn about the technology behind PFALs.

Pro tip: A demonstration site can be a powerful tool. It helps potential buyers or business partners visualize the possibilities.

5. Turnkey Providers and Hardware Suppliers

PFALs aren’t just about growing plants—they’re also about building the infrastructure. Companies that specialize in providing the necessary equipment, such as LED lighting systems, hydroponic setups, and climate control systems, are an essential part of the PFAL ecosystem. Many of these companies build demonstration PFALs to showcase their technology and attract customers. Becoming a turnkey provider—offering the complete setup—is a common aspiration.

Pro tip: If you’re in the hardware business, consider becoming a turnkey provider by offering end-to-end PFAL setups.

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Key Challenges Facing PFALs in Taiwan

Despite the promising future, PFALs face several challenges:

• High initial investment: Setting up a PFAL requires significant financial resources, which can be a hurdle for many potential operators.
• Public skepticism: Some consumers are hesitant to embrace hydroponically grown vegetables, viewing them as unnatural or inferior to traditionally farmed crops.
• Qualified workers: Finding skilled managers and workers for PFALs remains a challenge in Taiwan, as the industry is still new.

Actionable Tip: Consider rental partnerships! Collaborating with rental companies can ease the financial burden, as production facilities can be rented, lowering startup costs.

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Conclusion: PFALs Are the Future, But Success Requires Innovation

PFALs represent a dynamic shift in agriculture, providing an eco-friendly, efficient way to grow food in urban environments. Taiwan has embraced this model with a wide array of business approaches, from direct-to-consumer sales to partnerships with construction firms. The most successful players are those who continue to innovate, diversifying their product offerings and seeking out new markets.

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Infographic Summary Points for Canva

• PFALs are indoor farms using artificial lights to grow plants.
• Key business models: direct sales, processed products, real estate integration, and educational demos.
• Packaging innovation is key to appealing to health-conscious consumers.
• Diversifying products (like veggie-infused noodles or face masks) boosts profits.
• Collaborating with construction companies for green lifestyle integration is a rising trend.
• High setup costs and public skepticism are challenges but can be managed.
• Hardware providers play a crucial role in the PFAL ecosystem.
• Turnkey solutions and rental options make PFALs accessible to more businesses.

By embracing these insights, agriculture enthusiasts and business owners can better understand the promising potential of PFALs in Taiwan and beyond.

The rise of plant factories with artificial lighting (PFALs) equipped with LEDs has significantly expanded since 2011, especially in Japan. By 2013, nearly half of newly built PFALs were using LED lighting, with approximately 20% of the total commercial facilities also utilizing LEDs. After 2014, large-scale PFALs, such as MIRAI and Green Clocks, began growing vegetables using LED lights, signaling a pivotal shift in the market.

Initially, Japan’s PFALs used fluorescent lights (FLs), but many have been transitioning to LEDs. More than 100 PFALs in Japan still use FLs, but these facilities are increasingly testing LEDs for future adoption. The challenge in this transition lies in maintaining the quality of produce, particularly texture, color, and shape, that consumers are accustomed to with FL-grown vegetables.

Growers often struggle to choose the best LED technology, frequently raising questions such as: “Which LED works best?” or “How do we compare different options?” Over time, progress has been made toward improving transparency in LED specifications to address these concerns.

Notably, companies such as Philips and Showa Denko led the LED PFAL market in the early years, but since 2013, numerous other players have entered, diversifying the market. Many of these companies are not only involved in LED production but also in commercial farming, offering complete systems that include LEDs as part of the package.

In Japan, key players like MIRAI Co., Ltd., SPREAD, and Toshiba have built significant PFALs, each equipped with custom LED solutions. MIRAI, for example, uses GE-developed LEDs for optimal plant growth, while SPREAD developed in-house LEDs for their highly automated facilities. Toshiba, meanwhile, has been transitioning from FLs to their proprietary TENQOO LEDs.

The trend of custom-ordering LED grow lights has also emerged, with growers collaborating with lighting companies to develop LEDs tailored to their specific crops and cultivation needs. This customization is becoming an essential part of achieving optimal lighting environments in PFALs.

Internationally, Europe has seen a growing interest in PFALs, particularly under the concept of “City Farms.” Countries like the Netherlands and the UK have embraced this movement, with companies such as PlantLab and Growing Underground leading the charge. These European ventures often focus on urban agriculture and sustainability.

In Asia, Taiwan and South Korea are also experiencing a boom in PFALs. Taiwan’s market, for instance, includes a variety of business models, such as NiceGreen, which integrates PFAL-grown crops into food products, cosmetics, and restaurants. South Korea has also been heavily investing in PFALs, particularly focusing on medicinal plants like Korean ginseng.

In summary, LED PFALs are becoming more prevalent worldwide, driven by the need for sustainable, high-quality food production. However, the industry continues to face challenges in optimizing lighting solutions and maintaining produce quality.

The rise of Plant Factory with Artificial Lighting (PFAL) systems, particularly in regions such as Singapore, Hong Kong, and China, is seen as a promising solution to address food security, agricultural challenges, and environmental concerns. Singapore stands out due to its high reliance on imported vegetables and its wealthier population, making it an appealing market for PFAL investment. Companies like Panasonic and Sustenir Agriculture have already established PFALs in Singapore, using advanced LED lighting and soil cultivation to grow leafy greens for local markets.

Hong Kong, too, is embracing PFAL technology, with ventures like the Vegetable Marketing Organization adopting Japanese technology from Mitsubishi Chemical. These examples reflect the growing interest in controlled environment agriculture across Asia, and other regions are following suit.

China, while not yet saturated with commercial PFAL operations, is experiencing a PFAL boom, particularly in research and development. Major projects are underway, involving international collaboration from the USA and Japan. China’s growing focus on the LED lighting industry makes it a potential leader in PFAL technology and its related businesses.

Beyond Asia, other regions like the Middle East, Central and South America, and Africa are exploring the potential of PFALs to address local agricultural and social issues. Initiatives such as Panama’s Urban Farms and international conferences like ICCEA 2015 have contributed to the growing awareness and adoption of PFAL systems in Latin America.

The LED grow light industry has evolved significantly since 2010, with LED lights becoming the preferred choice over fluorescent lights for new PFALs. This development marks the beginning of a new era for the industry. Companies in Europe and North America, initially focused on supplemental lighting, are now deeply involved in vertical farming and PFAL systems. Research is ongoing, particularly in collaboration with academic institutions, on the effects of LEDs on plant growth and other cultivation techniques.

As the PFAL market expands, growers are increasingly seeking improvements in LED lighting, including cost reduction, efficiency, intensity, and flexibility. In addition, they are looking for plant cultivation recipes tailored to the specific LED systems they use. This trend indicates a shift toward software-based solutions and integrated systems that support not only lighting but also the entire growth process. Therefore, in the near future, the PFAL industry is expected to diversify, with innovation in technology, products, and user-friendly growth recipes becoming key drivers of growth.

The vertical farming industry in North America, while gaining attention, is still in its early stages, with only a few commercial operations in place. The region’s vertical farms, also known as PFALs in Japan or city farms in Europe, face challenges related to sustainability and profitability. However, advancements in electric lighting, particularly LED technology, are making indoor farming without sunlight more feasible. Companies such as AeroFarms (New Jersey), Green Sense Farms (Indiana), and Farmbox Greens (Washington) are among the notable players in this growing market.

Many of the early indoor farmers, influenced by Dutch greenhouse technologies, experimented with multilayer systems using supplemental light sources like high-intensity discharge (HID) and fluorescent lighting. Cannabis growers in North America, driven by the high value of their crop, have also been significant contributors to the advancement of vertical farming technology.

Researchers, including key figures such as Dr. Dickson Despommier from Columbia University and experts at the University of Arizona’s Controlled Environment Agriculture Center (CEAC), have helped push the industry forward. They have supported early adopters and sought to redefine agriculture’s future through vertical farming. Despite these efforts, many vertical farms have failed due to the highly competitive, price-sensitive market, and the lack of proven models for success.

The current trend in vertical farming focuses on crops with short production cycles and high market value, such as leafy greens, microgreens, and culinary herbs. Farmbox Greens, for example, grows a wide variety of microgreens and herbs using aeroponics and LED lighting, operating year-round in a climate-controlled facility.

Lighting Trends in North American Vertical Farms

LED lighting is gradually becoming the standard choice for vertical farms due to its efficiency and the ability to fine-tune light quality for plant growth. However, the high upfront costs of LED installations remain a barrier for many growers. Consequently, some opt for alternative light sources like plasma, induction, or fluorescent lighting, which promise lower costs. A major challenge is identifying the optimal lighting spectrum for plant growth, a topic still under debate within the industry.

The lighting market in North America is highly competitive, with companies like Philips, Illumitex, LumiGrow, and others offering specialized LED products for vertical farming. Philips’ GreenPower LEDs, for example, are designed for city farming applications, while Illumitex’s Eclipse series caters to sole-source lighting environments like growth chambers. Additionally, new entrants like Fluence Bioengineering and Heliospectra are positioning themselves alongside established players, offering solutions that focus on both lighting efficiency and crop production optimization.

Challenges and Opportunities

Customization is a key challenge for lighting manufacturers, as many vertical farms have unique growing systems that require tailored lighting solutions. At the same time, reducing energy consumption, improving light efficiency (measured in micromoles per joule), and lowering heat output are critical areas of focus for lighting companies. This is particularly important because lower heat emissions reduce the need for expensive climate control systems in indoor farms.

As vertical farms continue to expand across North America, the industry is expected to see further innovation in LED lighting and growing technologies, driven by a growing demand for sustainable, locally grown produce. While the industry is still nascent, the trend towards more efficient, affordable lighting solutions will likely play a key role in its future success.

The future of vertical farming, especially in the realm of lighting, appears to be highly promising. As consumers increasingly demand local, year-round, pesticide-free crops, vertical farming offers a solution, with lighting playing a crucial role in its success. While it is difficult to predict which growers will dominate the market, the importance of lighting in the industry’s growth is undeniable.

Several key insights highlight this:

1. Lighting’s Role in Plant Growth: Light is essential for plant development, with different plants requiring specific light spectra and intensities to thrive. Advancements in lighting technology have made it possible to control light conditions more precisely, significantly benefiting vertical farming systems.
2. Innovation in Lighting Technology: Ongoing research is expanding our understanding of optimal lighting conditions for different plants. Future developments may allow seed companies and plant breeders to create varieties that are better suited to specific light spectra in controlled environments like vertical farms.
3. Development of Advanced LED Solutions: Lighting companies are expected to continue innovating, producing LED systems that are more cost-effective, energy-efficient, flexible, and intelligent. These improvements will help make vertical farming more sustainable and accessible to a broader range of growers.
4. Economic Considerations: One of the major challenges in vertical farming is ensuring the economic feasibility of using LED lights in plant production. Although initial costs can be high, the energy efficiency and long lifespan of modern LEDs make them a cost-effective solution in the long run, especially as the technology continues to improve.

Globally, there has been a surge in companies entering the vertical farming lighting sector. European and North American companies, such as Heliospectra and Philips, are actively expanding into international markets, while Asian firms like Keystone Technology and Kyocera are focused on advancing LED technology within their regions.

In conclusion, the future of vertical farming lighting looks bright, with technological innovations and market expansion driving growth. As lighting companies continue to improve their products, vertical farming will become more efficient and widespread, offering new opportunities for agribusiness and food production across the globe.

It appears you provided detailed information about several companies involved in plant factory and vertical farming, specifically regarding their LED lighting technology, projects, and views on urban agriculture. Here’s a summary based on the companies mentioned:

1. Toshiba Corporation (Headquarters: Minato-ku, Tokyo, Japan)

• Vision: Toshiba views plant factories as a solution to deliver safe, clean, functional, and long-lasting vegetables/fruits worldwide. They emphasize that plant factories operate differently from traditional agriculture, focusing more on data sensing, optimization, and production control.
• LED Lighting: Toshiba’s LED lighting products for plant cultivation are part of their TENQOO series. These lights are designed to be efficient, long-lasting, and suitable for large-scale plant factories. Key specifications include high energy efficiency and long service life (40,000 hours).
• Product Portfolio: Includes lighting control systems, air conditioning, cultivation racks, sensor nodes, security systems, and factory control systems. They also provide plant factory design and construction services.
• Future of Urban Agriculture: Toshiba is committed to providing plant factory solutions while continuing to grow its own plant factory business. They see lighting systems becoming more efficient, with a focus on operational reliability.

2. Ushio Lighting (Headquarters: Chuo-ku, Tokyo, Japan)

• Vision: Ushio focuses on enriching the nutrients of plants and improving traceability to differentiate from conventional vegetables. They emphasize the importance of meeting consumer needs to avoid cost competition with traditional agriculture.
• LED Lighting: Ushio’s LED systems allow for precise control over red and blue light ratios, wireless control, and easy grouping of cultivation areas. This flexibility is crucial for optimizing plant growth.
• Key Projects: Includes a large plant factory in Amagasaki City with over 10,000 LED lightings. The project grows various vegetables, adjusting lighting conditions for specific crops.
• Product Portfolio: The company also provides supplemental lighting systems for greenhouses, with a focus on large-scale farms.
• Future of Urban Agriculture: Ushio sees a future with both economical and high-performance LED grow lights, anticipating diverse needs in the market for different types of crops.

3. Solidlite Corporation (Headquarters: Fongshan Village, Hukou Township, Hsinchu County, Taiwan)

• Key Projects: They are involved in several large-scale projects growing vegetables, strawberries, and mushrooms.
• Product Portfolio: Includes lighting solutions for various horticulture applications like seedling growth, orchid culture, and leafy vegetables, as well as lighting for indoor vertical green walls and aquaponics systems.
• Future of Urban Agriculture: Solidlite expects urban agriculture to become more accessible for leisure purposes, targeting families and restaurants with concepts like aquaponics and EZ Cuppa.

These companies demonstrate a growing commitment to vertical farming and the use of advanced LED lighting technology for efficient plant growth. They also share a vision of urban agriculture as a crucial solution to food security, environmental challenges, and evolving consumer demands

1. Heliospectra AB

• Headquarters: Göteborg, Sweden
• Office: San Francisco, CA, USA
• Vision: Heliospectra focuses on the future of food security, addressing global challenges like population growth and diminishing natural resources. They believe in the importance of urban and vertical farming to meet the increasing demand for food, with LED lighting playing a critical role in enhancing crop production and reducing energy costs.
• Product Portfolio:
  • RX30: For research applications, offering precise control of light wavelengths to support scientific studies.
  • LX60 & E60: For commercial greenhouses and indoor growth facilities, replacing traditional HID lighting and offering programmable spectrums.
  • LightBar: Optimized for vertical farming, with energy-efficient, high-intensity lighting designed to boost growth in confined spaces.
• Key Projects:
  • Spisa AB: Europe’s largest potted herb provider, using Heliospectra’s lights to reduce energy consumption by 46% while improving plant quality, shelf life, and taste.
• Future Vision: The company plans to expand into North America, increase involvement in urban agriculture, and develop smart greenhouses. They aim to improve plant production with minimal resource consumption.

2. Intravision Group AS

• Headquarters: Oslo, Norway
• Offices: Canada (Toronto), China (Shenzhen)
• Vision: Intravision focuses on bio-light and system integration for food production and plant-made pharmaceuticals. They emphasize efficient indoor food production systems that use less water and energy, while ensuring consistent food quality in a controlled environment. They also see vertical farming as part of the solution to global food insecurity due to urbanization and climate stress.
• Product Portfolio:
  • FLOW: Automated system for GMP production of GMO tobacco for medicinal use.
  • MAPS: Modular Agricultural Production Systems for food security and efficient indoor plant production.
  • COLUMN: Space-efficient strawberry production system.
  • SPECTRA & SPECTRA BLADES: Spectrum-variable LED lights for greenhouses and vertical farming.
  • MODULAR FARMS: A mobile, plant production system designed for remote areas, emphasizing energy and space efficiency.
• Future Vision: Intravision seeks to expand research and commercial sales, focusing on optimizing light spectrum for improved plant production and growth cycle efficiency.

3. Philips Lighting (Horticulture LED Solutions)

• Headquarters: Eindhoven, Netherlands
• Vision: Philips believes vertical farming will complement traditional farming methods. With growing global populations and limited agricultural land, they aim to develop LED systems that can increase efficiency and reduce production costs in vertical farming.
• Key Projects:
  • GrowUp: UK
  • Osaka Prefecture University: Japan
  • Green Sense Farms: USA
  • Research Facilities: GrowWise (Eindhoven, NL) and BrightBox (Venlo, NL)
• Product Portfolio:
  • GreenPower Production Module: Their main solution for vertical farms, focusing on optimizing lighting and integrating it with climate and nutrient systems to improve return on investment.

Each company is deeply involved in leveraging LED technology to improve controlled environment agriculture and is contributing to the future of vertical farming, urban agriculture, and sustainable food production solutions.

The passages provide insights into the role of LED lighting in plant factories and vertical farming, featuring companies like Philips Lighting, GE, and Illumitex. Here’s a breakdown of key information:

1. Emerging Market: The plant factory and vertical farming industry is young but growing steadily. Companies like Philips see great potential in LED lighting, particularly in improving plant health and growth while reducing energy usage.
2. Global Challenges: With the world’s urban population projected to rise and increasing pressure on land and water resources, vertical farming is seen as a solution to global food supply challenges. GE highlights the need for these technologies to meet growing food demands and ensure sustainability.
3. Technology Innovations: GE and Illumitex emphasize using LED lights tailored for specific plant growth stages and environments. For example, GE’s work with Mirai lettuce farms shows how customized lighting and environmental control systems can enhance productivity and efficiency, reducing energy usage and optimizing yields.
4. Commercial Projects: Companies have undertaken large-scale commercial projects, like GE’s collaboration with Mirai in Japan, which involves 17,500 LEDs covering a 2300 m² facility, producing 10,000 heads of lettuce daily. Illumitex also lists several global projects and their partnerships with research institutions to advance lighting solutions for agriculture.
5. Future Vision: Both GE and Illumitex recognize the potential for plant factories and vertical farming to address critical resource challenges (like freshwater use and land scarcity) while providing highly controlled environments for optimized growth. The ability to grow crops year-round, near urban centers, without pesticides, and with fewer natural resources suggests a bright future for the industry.
6. Research and Education: Illumitex is dedicated to advancing the vertical farming movement through education and research. Their work with various universities demonstrates a commitment to developing new lighting technologies that can further improve the efficiency and productivity of indoor farming.

In summary, the industry outlook is promising, with LED lighting playing a pivotal role in advancing vertical farming technologies and addressing global agricultural challenges

Illumitex is at the forefront of advancements in LED lighting solutions tailored for vertical farming. Here’s where the company is headed and its vision for the future of urban agriculture:

1. Product Innovations: Illumitex is focused on improving its fixtures, particularly for vertical farming. The company is developing low-wattage LED bars for use in low-shelving systems, incorporating high-quality electronics and modular design. This innovation allows flexibility in lighting design and setup, optimizing the environment for different plant species and growth stages.
2. Smart-Ready Technology: A key area of focus for Illumitex is remote-control dynamic lighting. This enables smart-ready lighting systems that can be remotely monitored and adjusted based on real-time plant needs. Remote sensing technology plays a vital role in fine-tuning the lighting conditions, making the growing process more efficient and resource-conscious.
3. Leadership in Horticultural Lighting: Illumitex aims to remain a leader in horticultural lighting solutions worldwide by constantly improving its product portfolio and embracing smart technology. The goal is to help indoor farmers maximize their yield while minimizing costs and environmental impact.
4. Future of Urban Agriculture: Illumitex views vertical farming as a critical part of the future of urban agriculture. By reducing the distance between the farm and the consumer, it addresses food supply challenges for growing urban populations. Additionally, their lighting solutions reduce water usage, fertilizer needs, and the necessity for arable land, making it a sustainable choice for future food production.

The company’s focus on technology, sustainability, and innovation aligns with the broader movement towards more efficient and productive urban farming systems. This future vision promises greater control over food production while reducing the strain on natural resources.

Plant Factories and Consumer Perception: Understanding the Impact of PFALs on Agriculture and Consumer Attitudes

Overview

Plant factories with artificial lighting (PFALs) are increasingly recognized for their potential to revolutionize agriculture, particularly in urban settings. Despite their promise, PFALs face several challenges, including high initial costs, operational expenses, and consumer skepticism. This synthesis explores the economic landscape of PFALs, their categorization, the role of LEDs, and consumer perceptions of PFAL-produced vegetables.

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The PFAL Industry Landscape

Categories of PFAL Businesses

1. PFAL Operating Business: Entities that run PFALs for crop production.
2. System Manufacturing and Supplying Business: Companies that provide the necessary technology and systems for PFAL operation.
3. PFAL-related Consulting Business: Firms that offer expertise and advice to optimize PFAL performance.

These categories are evolving, often overlapping as businesses diversify into new areas, such as consulting and system development based on practical experiences.

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Technological Implications of PFALs

LED Lighting: A cornerstone of PFALs, LED technology enhances growth efficiency, with companies now increasingly incorporating their own PFAL facilities to gain firsthand knowledge of cultivation. As they expand, competition intensifies not only among lighting firms but also with system manufacturers and farmers who enter the lighting domain.

Key Questions for Growers

Growers frequently seek answers to:

1. What crops are suitable for LED growth?
2. How should these crops be cultivated with LEDs?
3. Who can provide expert advice when challenges arise?

This highlights a growing need for software and consultancy services to bridge knowledge gaps in PFAL operations.

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Addressing Global Food Challenges

PFALs can play a significant role in addressing global food scarcity, particularly among impoverished populations. By developing sustainable business models targeting the lower-income demographic, PFALs can offer nutritious food alternatives while improving agricultural resilience against urbanization and population growth.

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Consumer Perception of PFALs

Understanding consumer attitudes is essential for PFAL success. Recent studies in Japan and Hong Kong reveal varying perceptions regarding PFAL-produced vegetables.

Key Findings from Japanese Consumer Research

1. Positive Associations: Consumers generally perceive PFAL vegetables as safe, reliable, and associated with a stable supply chain.
2. Negative Associations: Concerns persist regarding nutritional value, taste, and the artificial nature of production without natural sunlight. Terms like “plant factory” may evoke negative images of mass production and detachment from nature.
3. Knowledge Impact: A consumer’s understanding of PFALs significantly shapes their perceptions. Increased knowledge often correlates with more favorable views.

Methodology

Using free-word association techniques, participants expressed their thoughts on stimulus phrases related to PFALs, revealing nuanced perceptions about hydroponically grown vegetables versus traditionally cultivated crops.

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Marketing and Education Implications

For the PFAL industry to thrive, marketing strategies must address consumer concerns and misconceptions. Key approaches include:

• Education: Informing consumers about the benefits and safety of PFAL-produced vegetables.
• Promotional Activities: Highlighting nutritional advantages and sustainability aspects through targeted campaigns.
• Market Research: Continuous assessment of consumer preferences to adapt marketing strategies effectively.

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Conclusion

PFALs present a promising avenue for sustainable agriculture, particularly in urban environments. However, addressing technical challenges, fostering consumer understanding, and developing robust marketing strategies are crucial for the industry’s growth. Emphasizing education and consumer engagement will help build trust and acceptance of PFALs, ultimately contributing to a more resilient food system

This passage provides a detailed overview of consumer perceptions and understanding of vegetables produced at Plant Factory (PFAL) systems, particularly in Japan and Hong Kong. Below is a summarized breakdown of the key findings and insights presented:

Key Findings

1. Consumer Anxiety and Understanding:
   • A statistically significant difference in consumer anxiety regarding PFAL-produced vegetables is noted, particularly concerning attached substances and sanitation. Consumers tend to be more worried about nutritional value and taste.
   • An increased understanding of PFAL and its products correlates with a decrease in anxiety levels among consumers, emphasizing the importance of education and marketing efforts.
2. Hong Kong Case Study:
   • A survey in Hong Kong with 282 valid responses showed that 66% of participants had heard of PFALs, primarily through media. However, understanding of specific cultivation methods (like hydroponics) was limited.
   • Anxiety levels regarding PFAL-produced vegetables were measured, showing average values between 2.23 and 2.79 on a 5-point Likert scale. More than 70% of respondents were neutral regarding nutritional value, taste, and effects on the body, indicating a lack of detailed knowledge about these aspects.
3. Influences on Consumer Confidence:
   • Knowledge about indoor cultivation positively impacts consumer confidence in the safety and quality of PFAL-produced vegetables.
   • Specific factors such as frequency of cooking meals at home and eating fresh vegetables also boost confidence in the quality of these products.
4. Future Prospects and Demand:
   • The global demand for PFAL-produced crops is expected to rise due to population growth and urbanization. PFALs offer solutions to challenges such as land scarcity, climate change, and water shortages.
   • Small PFALs are likely to gain traction in urban areas, contributing to local food production and consumption.
5. Marketing and Education Needs:
   • Effective marketing strategies, including package design, displays, tastings, and seminars, are crucial for improving consumer perceptions and understanding of PFALs.
   • Long-term education efforts are essential for fostering a deeper understanding of PFAL production systems and their benefits.

Conclusion

The findings highlight that while consumers have some awareness and positive perceptions of PFAL-produced vegetables, there is significant room for improvement in understanding and addressing concerns related to nutrition and taste. Education and targeted marketing strategies will be vital for the continued development of the PFAL industry, enabling it to meet the growing demand for safe and reliable food sources. Overall, identifying effective business models tailored to regional consumer needs will be essential for the success of PFALs globally.

Perspective and Significance of LED Lighting for Urban Agriculture

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Chapter 1: Why LED Lighting for Urban Agriculture?
Toyoki Kozai

Abstract

This chapter discusses the advantages of utilizing light-emitting diodes (LEDs) in urban agriculture and highlights the necessity of incorporating information and communication technology (ICT). The integration of ICT into urban agriculture is now economically viable due to significantly reduced marginal costs associated with information processing, storage, and transfer. Additionally, electricity generated from renewable resources like solar energy and biomass is becoming increasingly competitive with fossil fuels and nuclear power. Internet-connected plant factories utilizing LED lighting and greenhouses with LED supplemental lighting are poised to become essential components of urban agriculture. The potential for integrating ICT, artificial intelligence, and the Internet of Things (IoT) in urban agriculture is briefly outlined. Furthermore, the chapter describes the concept of closed plant production systems (CPPS) and their application in plant factories utilizing LED lighting.

Keywords: Controlled-environment agriculture, Greenhouse, Light-emitting diode (LED), Plant factory with artificial lighting (PFAL), Supplemental lighting, Urban agriculture.

1.1 Introduction

As of 2007, more than half of the global population resides in urban areas, with projections indicating that over 70% will live in urban settings by 2050. This shift has heightened interest in urban agriculture and vertical farming (Despommier 2010). Indoor urban agriculture encompasses various practices, including atriums, potted plants, and plant stands that contribute to green interiors, with or without supplemental artificial light, as well as plant factories with artificial lighting (PFALs) (Kozai et al. 2015). Outdoor urban agriculture includes community gardens, home vegetable and flower gardens, orchards, and greenhouses, which may also utilize supplemental lighting.

1.1.1 Benefits of Urban Agriculture

Urban agriculture serves two primary functions: enabling individuals to engage in environmental horticulture as a hobby and facilitating local production of food and ornamental plants for sale to nearby residents. The local production of food and ornamental plants offers several advantages:

1. Resource Efficiency: It conserves fossil fuel, reduces labor time, and minimizes packaging materials, ultimately lowering transportation costs.
2. Reduced Postharvest Losses: Local production mitigates damage during transport, decreasing postharvest losses.
3. Job Creation: Urban agriculture generates job opportunities, benefiting local residents.
4. Variety of Produce: It allows urban dwellers access to a greater variety of fresh fruits and vegetables.

By consuming locally-produced food with minimal quality loss, urban residents can reduce electricity and fuel usage associated with shopping, processing, and cooking. Given the high land prices in urban areas, PFALs and greenhouses must yield considerably higher annual crop productivity per unit of land area compared to traditional open fields. For instance, the annual productivity of leaf lettuce in PFALs can be approximately 200 times higher than in open fields, while controlled-environment greenhouses can achieve about tenfold increases (Kozai et al. 2015). When soil conditions are inadequate due to contamination, hydroponic systems utilizing artificial substrates can be employed, isolating crops from the ground soil.

1.1.2 Benefits of Using Light-Emitting Diodes

Light-emitting diodes (LEDs) are increasingly prevalent across various fields due to their cost-effectiveness, high electricity-to-light energy conversion efficiency, diverse color spectra, lower surface temperatures, extended lifespans, and solid-state construction devoid of gas. For instance, the luminous efficacy (lumen per watt) of white LEDs was 75 in 2010, increased to 150 in 2016, and is projected to reach around 200 by 2020 (Fig. 1.1). Notably, advancements in the luminous efficiency of organic LEDs have also been remarkable.

Since the 1990s, intensive research has been conducted on the application of LEDs in horticulture (Massa and Norrie 2015). Following the establishment of the first LED-lit PFAL in 2005 for commercial leafy green production, fluorescent lamps in PFALs have gradually been replaced by LEDs. As of 2015, over 10 of approximately 200 operational Japanese PFALs utilized LED technology. Despite the continued popularity of high-pressure sodium (HPS) lamps for supplemental greenhouse lighting—particularly in the Netherlands and northern USA since the 1990s (Lopez and Runkle 2016)—LEDs are increasingly supplanting HPS lamps.

Ambient light, including photosynthetic photon flux density (PPFD), light/dark cycles, diffuse to direct PPFD ratios, angles of light incidence, and light quality (wavelength or spectral distribution), significantly influences plant growth and development. Factors such as plant morphology (e.g., flower bud initiation, internode length, branching, rooting) and secondary metabolite production (e.g., pigments, vitamins) are heavily impacted by light quality and cycles. Consequently, varying light qualities of LEDs can be strategically employed to optimize plant morphogenesis and secondary metabolite production, enhancing crop value (refer to Parts 2 and 5 in this volume).

1.2 Scope of this Publication

This book centers on LED lighting primarily for the commercial production of horticultural crops in PFALs and controlled-environment greenhouses, with a particular emphasis on (1) the effects of light environments on plant growth and development, and (2) the associated business and technological opportunities and challenges concerning LEDs (Fig. 1.2). The book comprises 31 chapters categorized into seven parts: (1) an overview of controlled-environment agriculture and its significance, (2) the impacts of ambient light on plant growth and development, (3) optical and physiological characteristics of plant leaves and canopies, (4) greenhouse crop production with supplemental LED lighting, (5) effects of light quality on plant physiology and morphology, (6) the current status of commercial plant factories under LED lighting, and (7) fundamental principles of LEDs and LED lighting for plant cultivation. Broader aspects of PFALs that do not specifically address LED lighting are discussed in Kozai et al. (2015).

It is important to note that “LED lighting for urban agriculture” in the coming decades will not merely represent an advanced version of current urban agriculture practices. Instead, it will be fundamentally anchored in two key areas: first, a new paradigm and rapidly evolving concepts and technologies related to LEDs, ICT, and renewable energy; and second, foundational science and technology that should be integral to this field.

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This overview provides a structured introduction to the significance of LED lighting in urban agriculture, addressing both the benefits and the broader implications for future agricultural practices. If you need more specific sections or details from the document, feel free to ask!

Technological Background for Future Urban Agriculture

Urban agriculture is poised for transformation, driven by advancements in technology and a shift away from traditional horticultural practices. Key technological trends include:

1. Technological Evolution

• Cost Reductions: The costs of information processing, storage, and transfer are nearing zero, alongside significant reductions in plant DNA sequencing costs. Renewable energy sources are becoming competitive with fossil fuels, enabling sustainable plant production systems that maximize yield and quality with minimal resources.

2. Local vs. Global Technology

• Local Technology: Developed in specific agricultural contexts, local technologies are shaped by environmental factors and traditional practices, emphasizing sustainability.
• Global Technology: Originating primarily in urban areas, global technologies like ICT, AI, and molecular biology are universal and transferable across regions.

3. Customization of Global Technology

• ICT can be tailored for local use through customizable software, fostering sustainable agricultural systems that leverage local resources while maximizing efficiency and minimizing waste.

4. Innovative Technologies Shaping Urban Agriculture

• Information and Bioinformatics: Rapid advancements in processing speeds and costs have led to the emergence of new research fields such as phenomics.
• Renewable Energy: The levelized cost of electricity (LCOE) from renewable sources is increasingly competitive with fossil fuels, making them viable options for urban agriculture.
• 3D Printing: This technology allows for the creation of customized agricultural tools and components, streamlining production processes.

5. Closed Plant Production Systems (CPPS)

CPPS, including plant factories with artificial lighting (PFALs) and closed greenhouses, are essential for meeting the demands of urban agriculture. Key characteristics include:

• High Productivity: CPPS can yield more produce per unit area with minimal resource input.
• Efficient Resource Use: These systems allow for precise measurement and control of inputs and outputs, enhancing sustainability and economic viability.

6. Estimating Resource Use Efficiencies

In CPPS, the ability to estimate rate variables (e.g., hourly water uptake, photosynthesis rates) provides insights into resource use efficiencies, paving the way for more efficient plant production systems.

Conclusion

The integration of advanced technologies, particularly LEDs and renewable energy, along with the concept of CPPS, will significantly influence urban agriculture, enabling high productivity and sustainability.

This section provides a comprehensive overview of Resource Use Efficiency (RUE) and Cost Performance (CP) in Plant Factory with Artificial Lighting (PFAL) systems. Here’s a summary of the key points:

Resource Use Efficiency (RUE)

• Definition: RUE is the ratio of resources (fixed or held in products/plants) to resource inputs, including light energy, water, fertilizer, seeds, and electricity.
• Components:
  • Electricity Efficiency: Factors include the conversion efficiency from electricity to light, light to chemical energy, and the coefficient of performance (COP) of air conditioning.
  • Seed Use Efficiency: Also measured and analyzed.
• Monitoring: RUE can be calculated and visualized hourly, daily, or weekly, allowing for systematic improvements in resource use.
• Perfect Controlled Plant Production System (CPPS): Ideal scenario where all inputs convert to produce without environmental pollutants, excluding heat.

Cost Performance (CP)

• Definition: CP for each resource input is calculated as:CP=RUE×EPCP=RUE×PE​ where EE is the economic value per unit weight, and PP is the production cost per unit weight.
• Importance: High CP correlates with high RUE and low coefficient of variance (CV) for sustainable food production.

Rate Variable Control

• Impact: Yield and quality are influenced by various rate variables, which are affected by environmental conditions and crop ecophysiology.
• Measurement: In PFAL, rate variables can be measured accurately, allowing for easier estimation of RUE compared to open field conditions.

Advantages of PFAL

1. Productivity: Up to 200 times higher than open fields and 10-20 times higher than hydroponic greenhouses, with expected future increases.
2. Cleanliness: Pesticide-, pest insect-, and foreign substance-free produce, reducing the need for inspections.
3. Lower Colony-Forming Units (CFU): CFU of PFAL-grown vegetables is generally below 500, allowing for reduced washing and nutrient loss.
4. Extended Shelf Life: Produce lasts twice as long compared to greenhouse-grown produce.
5. Traceability: High traceability from seeding to delivery, with electronic data tracking.
6. Labor Productivity: Improved working conditions lead to higher labor efficiency.
7. Nighttime Electricity Use: Lower costs due to using surplus electricity during off-peak hours.
8. Resource Savings: Significant reductions in resource inputs compared to open fields.

Disadvantages and Challenges of PFAL

• Technology Level: Currently lower than in the Dutch greenhouse industry; PFAL technology is still emerging.
• Production Costs: High initial and operational costs due to poor design and management.
• Quality and Yield: Often low due to inadequate environmental control and plant growth predictions.
• Production Planning: Challenges in effective production planning and process management.

Future Goals

• Cost Reduction: Aim to halve production costs by improving light energy use efficiency by 2025.
• Increased Productivity: Target to double productivity per floor area through enhanced environmental control and optimal cultivar selection.
• Technological Development: Emphasis on leveraging global technology for the next-generation LED-lit PFALs, including advanced predictive modeling and simulation.

This summary captures the essence of your text while maintaining a focus on the core concepts and potential for future advancements in PFAL systems. If you need any specific aspects elaborated or simplified further, just let me know!

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