A collective of the island’s farmers is considering legal action over a government plan to introduce vertical farming through a collaboration with a Dutch firm.

The Bermuda Farmers Association told The Royal Gazette that the global vertical farming industry had consistently struggled to achieve commercial viability.

A spokesman for the Ministry of Economy and Labour acknowledged the group’s concerns, which he said were now under review.

The remarks came as the association declared it was up in arms over the plan by the Government to introduce the project in partnership with Growy, an Amsterdam-based company, which specialises in growing salads, herbs and microgreens in an indoor environment.

“There are a number of legal avenues which we are exploring,” a BFA spokesman said.

The farming body said the vegetables proposed by Growy were “low-calorie products”.

It said the produce was already well supplied locally and claimed the initiative could drive some farmers out of business.

The Bermuda Economic Development Corporation is spearheading the programme on behalf of the Government.

The Government unveiled plans for a single vertical farm in 2020 but the proposals were put on hold after the overseas-based parent company of the firm behind the project reported massive losses.

Florida-based Kalera had set up a Bermuda subsidiary of the company — but its plans stalled and Growy took over Kalera’s overseas operations.

Growy’s co-chief executives met the BEDC in 2023, reviewed the vertical farming project and reconfirmed their strong interest in moving forward with it.

However, in a letter addressed to David Burt, the Premier, in January, the BFA listed its concerns and said the venture would be “unsuitable for Bermuda’s agricultural goals and food security strategy”.

The body said Growy’s tagline as “the first commercially viable vertical farm” was a statement that “implicitly acknowledges that the vertical farming industry has not yet achieved commercial viability”.

It noted too that many vertical farms survived on investor funding, rather than revenues, which suggested that the business model was financially unsustainable.

In the letter, which was copied to the BEDC, the body said that the company’s aim to operate with robotic technology implied that no jobs would be created.

By contrast, it called for investment in the island’s existing agricultural sector, which it said was not operating at its potential in the face of several challenges.

The association said that if Growy secured government loans, guarantees or concessions, it would risk exposing taxpayers to a substantial financial risk.

The group explained: “If Growy fails to achieve profitability, the burden of repayment would fall on the public.

“Given the high failure rate of vertical farms, this scenario is not speculative — it is the probable outcome based on industry trends.”

A spokesman for the farming body said that during the last week of April the group was invited by the BEDC to attend a meeting, which he described as “hastily organised”.

He said the meeting was far from a consultation but rather a forum for announcements to inform the association and stakeholders of Growy’s plans.

The association said: “This initiative is coming to us from a taxpayer-funded organisation which must be transparent in their dealings with private overseas entities in respect to potential commercial activities in Bermuda; decisions made behind closed doors are unacceptable.”

The body said senior agricultural officials were unaware of Growy’s proposal until this year.

Warren Brown, chairman of the association, said it was still seeking answers on the project.

Data such as the scale of investment from the Government, site locations and details of the agreement made with the Dutch firm are being sought.

The ministry spokesman said the association’s concerns were under consideration.

He added: “We appreciate the time taken to outline their position and provide recommendations on the future of Bermuda's agriculture sector.

“The Government remains committed to supporting the development of sustainable and innovative solutions within the local farming industry and values the input of all stakeholders.

“To that end, the BEDC remains open to continued dialogue to ensure all initiatives effectively support the broader goal of enhancing Bermuda's food sustainability."

One of the island’s leading farmers insisted that local agriculture already did a good enough job.

Tom Wadson, of Wadson’s Farms, said that despite what had been put on the table by Growy, “technology has not proven it all”.

Mr Wadson said he had been cultivating leafy vegetables such as those proposed by the firm for decades, but continued to struggle to find markets for his stock.

“I don’t think it’s viable and it will surely disrupt the agricultural space that we’ve got here on the island,” he added.

Mr Wadson said the island’s farmers were “doing a good job” of producing greens such as lettuce.

He added: “It would be very disruptive to the farming community — they will bring unproven technology, and taxpayers will have to fund the bill for whatever happens.”