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Farmers query viability of vertical farming plans

No-grow zone: farmers say that vertical farms are not economically viable (File photograph)

Farmers have poured cold water on government plans to develop a vertical farming industry on the island.

Jason Hayward, the Minister of Economy and Labour, unveiled the initiative at a press conference last month, claiming that — on the advice of consultancy firm KPMG — vertical farming could be a key plank in an economic recovery plan to create jobs and reduce the cost of living.

But the Bermuda Farmers Association has questioned if the scheme is economically viable.

The association also claimed that local growers have been kept in the dark about the scheme, arguing that they should have been consulted.

A spokesman told The Royal Gazette: “The narrow market segment of food production that this venture represents is filled in part by local production all year – and in the spring there is overproduction.

“The BFA has done its own market research and concluded that the island demand is too low for such a venture considering the high capital costs required and the lack of a sound business case going forward.

“What is very upsetting is there are five separate small local greenhouse ventures of approximately 6,000 square feet each that are fledgeling operations. These could avail support to get operating on a year-round basis to fill demand for the leafy green market.”

In addition to a lack of demand, the spokesman also pointed out that the high cost of electricity would make small-scale production too costly. Vertical farms grow a limited selection of plants such as salad greens and herbs in towers where hydration, light and temperature are artificially controlled.

The Government first revealed plans for a single vertical farm two years ago.

In November 2020, Wayne Furbert, the Minister for the Cabinet Office, said that a deal to build a farm in Bermuda was close to being signed after a year of negotiations with New Jersey-based company AeroFarms.

There was little progress with the project until March this year, when Mr Hayward said that a location for a “large-scale facility” was under review, while financial details were “in development”.

The BFA spokesman questioned why the Government had never sought advice from local farmers.

He said: “Over the past few years, the Government of Bermuda has been actively pursuing a relationship in the shadows with an overseas company with a view to having them start an operation in Bermuda.

“It seems that a decision to proceed with this venture was made by the Government a long time ago.

“The Government did meet with the BFA after the fact, simply to inform us that this was going ahead — and that we could buy into it if we wished.

“This process contradicts their own avowed statements of transparency, and contravenes the Bermuda Economic Development Corporation’s mission statement of due process.

“There has been no meaningful dialogue with the farming community, who are experienced in local production.”

Royal Gazette questions - and the answers

Following Mr Hayward’s announcement last month, The Royal Gazette e-mailed a list of questions to the ministry asking for more details about the development of a vertical farming industry.

This newspaper asked how many farms the minister was looking to set up, how many jobs would be created, what the timeline was to set up an industry, the reasons for expanding the project from a single farm to an entire industry, whether the project was economically viable, and what plants and vegetables could be grown in vertical farms.

In response, a ministry spokesman confirmed that the project had been developed on the advice of government consultant KPMG.

The spokesman added: “Stakeholders will form a steering committee to develop a road map informing government policy on this initiative moving forward.

“The Government continues working with stakeholders to launch Bermuda’s first large-scale vertical farm.

When pressed by The Royal Gazettefor specific answers to its questions, the spokesman would only say: “Please be advised that the response previously provided still stands.”

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Published October 17, 2022 at 6:52 am (Updated October 17, 2022 at 6:52 am)

Farmers query viability of vertical farming plans

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