Q&A: AppHarvest’s Tony Martin

Added on 31 August 2023

Produce Grower: In 2022, AppHarvest opened a facility dedicated to strawberries and cucumbers. Why were strawberries something worth dedicating sizable greenhouse space to?

Tony Martin: Following the opening of our 60-acre flagship indoor farm in Morehead, Kentucky, in 2021, that is dedicated to tomatoes, we prioritized diversifying our crop set with the three new farms we opened in 2022. With ample precipitation and a moderate climate, conditions are great in Eastern Kentucky for strawberry production in the fall, winter and spring, and we alternate with cucumber production in the heat of summer. We can grow about 1 million strawberry plants per season. California’s primary strawberry season runs from April through November, so AppHarvest has the opportunity to deliver additional volume at a time when open-field supply starts to wane.

Strawberry demand has continued to rise in the U.S., and the U.S. has continued to increase imports to meet that demand, so we saw an opportunity to increase domestic production. In 2022 (January through December), total imports of fresh and processed strawberry products totaled $1.5 billion — up 2% from a year earlier.

AppHarvest has the geographic location benefit of being within a day’s drive of nearly 70% of the U.S. population, which is significant with a highly perishable fruit like strawberries.

Strawberries also are perennially on the “dirty dozen” list of fruits/vegetables with the most pesticides, so we also saw an opportunity with our focus on integrated pest management to provide a cleaner supply of strawberries.

PG: Where is the retail market for greenhouse-grown strawberries going in the next year? What about the next five years?

TM: We continue to see demand for controlled environment agriculture produce increase because of its more reliable quality and quantity. A recent report from RaboResearch found that despite being a mature market, U.S. strawberry consumption continues to grow, both in terms of household penetration and volume, and driving an increase in imports as well as planted crops in California — which translates into the opportunity for more CEA production as well.

Also, there is increasing demand for premium strawberries, and many of those varieties perform better in a CEA environment than in open-field.