Planet Farms, an agri-tech business based in Milan, Italy, has announced its plan to invest over £25m ($33.2m) in a new vertical farming facility in the UK. This 20,000 square-meter facility is set to replicate the company’s successful site in Cirimido, Italy, which currently supplies leafy greens to retailers in Italy and Switzerland, including Carrefour, Esselunga, Aspiag, and Iper. In addition, Planet Farms has recently started supplying Waitrose stores in the UK and is in the process of finalizing another retail partnership.
Founded in 2018 by Luca Travaglini and Daniele Benatoff, Planet Farms has established itself as a leader in controlled indoor environment agriculture. The company’s commitment to providing reliable supply chains for its customers has led to significant growth opportunities, including a joint venture with Swiss Life Asset Managers, a part of the Swiss Life Group. This venture, supported by up to €200m ($227.5m) in capital and additional debt financing, aims to develop and construct indoor farming facilities across Europe, the Middle East, and Africa.
The partnership with Swiss Life Asset Managers underscores Planet Farms’ dedication to addressing key industry challenges, such as climatic volatility, global trade shifts, and sustainability concerns. By leveraging their expertise in engineering, software, robotics, and agronomy, Planet Farms aims to create fully automated sites that optimize production efficiency and quality.
Vertical farming, while offering environmental benefits such as reduced water usage and pesticide-free cultivation, remains a capital-intensive business. The use of artificial lighting, such as LEDs, to support year-round crop growth adds to the operational costs of vertical farms. Despite the industry’s popularity in recent years, many vertical farming companies have faced financial challenges, leading to closures or restructuring efforts.
For example, US-based Plenty Unlimited filed for Chapter 11 bankruptcy in March but secured debtor-in-possession financing of $20.7m to continue operations. Similarly, UK-based vertical farming company Jones Food Company entered administration in April, highlighting the financial pressures faced by firms in this sector.
The investment in the UK facility marks an important milestone for Planet Farms as it expands its presence in the global indoor farming market. With a focus on innovation, sustainability, and operational excellence, the company is well-positioned to capitalize on the growing demand for locally grown, fresh produce in retail markets.
In conclusion, Planet Farms’ strategic investment in the UK reflects its commitment to driving sustainable agriculture practices and meeting the evolving needs of consumers and retailers. By leveraging technology, expertise, and strategic partnerships, the company is poised to lead the vertical farming industry and deliver high-quality, locally sourced products to markets worldwide.
