Accenture, a global professional services company, recently published its 2023 Controlled Environment Agriculture (CEA) study, authored by Matt Ritchie, Jaime Guerrero, and Gaurav Sharma. The report, which features insights and input from industry leaders such as David Rosenberg, Andrew Loyd, Tobias Peggs, and Dr. Paul Gauthier, discusses the opportunities and challenges CEA companies face in the quest for more efficient and sustainable farming practices.
CEA, which includes technologies like hydroponics, aquaponics, and vertical farming, has attracted significant interest as the world seeks alternative agricultural methods to address growing food demands and environmental concerns. However, the industry faces substantial challenges, particularly concerning the cost of operations and the need for diversified, cost-effective crop production. The Accenture report builds on data from a 2017-2018 survey in New York City, which found that producing a kilogram of lettuce costs $2.68 on the field, $6.76 in a greenhouse, and $7.26 in a vertical farm.
Despite these challenges, the report remains optimistic about the industry’s ability to overcome them by investing in renewable energies, artificial intelligence, and innovations in LED products and plant science. With expected improvements in the cost of renewable energies, increased LED energy efficiency, and breakthroughs in plant sciences, the report predicts that the CEA industry will become competitive against traditional agriculture as early as 2027. From that inflection point onwards, the adoption of tier 2 crops is expected to accelerate across various CEA formats. In addition, the growth and development of tier 2 crops will further boost the industry’s competitiveness by providing more diversified and cost-effective produce options.
The report emphasizes the importance of collaboration between governments, academia, and the private sector in fostering the growth of the CEA industry. By working together to drive research, development, and innovation, these stakeholders can help overcome the challenges that hinder the widespread adoption of CEA technologies.
In conclusion, Accenture’s 2023 CEA study highlights the enormous potential of the controlled environment agriculture industry in transforming global food production systems. The CEA industry can become a viable and sustainable alternative to traditional agriculture by addressing operational cost challenges and investing in emerging technologies. This would increase efficiency and contribute to the global effort to combat climate change and ensure food security for future generations.
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