iFarm cuts CAPEX for leafy greens vertical farms by 28%

Added on 26 March 2024

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iFarm cuts CAPEX for leafy greens vertical farms by 28%

Photo: iFarm

iFarm has made significant strides in reducing the capital expenditure (СAPEX) for the construction of vertical farms with iFarm Leafy Greens technology. iFarm has achieved a decline of 28% in CAPEX for urban farmers across the MENA and Asia-Pacific regions.

Starting a vertical farm incurs significant CAPEX, which directly impacts the payback period. iFarm is dedicated to systematically reducing CAPEX to benefit its customers.

CAPEX includes the cost of equipment, such as lighting, climate control, and electrics, alongside automation, design, and setup. The purchase of equipment and components constitutes roughly 75% of the total investment. iFarm's reduction in CAPEX for urban farmers will significantly alleviate the cost burden associated with setting up a vertical farm.

In 2024, the capital investment required to construct a leafy greens vertical farm with iFarm technology experienced an average 28% decrease, amounting to $800 per square meter of growing area.

As part of CAPEX reduction, agreements were made with machinery and equipment manufacturers in Indonesia, Saudi Arabia, and the UAE. It resulted in a 50% reduction in transportation volumes and shipping costs. The team also sourced high-quality and lower-cost components for vertical farming technologies from China, including trays, racks, and other equipment.

The following table outlines the capital investment needed to construct a leafy greens vertical farm with iFarm technologies. This calculation was made for a farm with a 1,000 m² growing area in one of the MENA countries.

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