Key Takeaways:
- Grow-tec President Shlomy Raziel shares that automation in indoor farming offers ROI within 3 to 3.5 years, primarily through labor savings.
- The company’s indoor farming platform combines AI, IoT, and robotics to grow fruiting vegetables under fully controlled environments.
- Grow-tec supports modular retrofitting for greenhouses, providing flexible automation options for existing structures.
- The “zero distance agriculture” concept enables harvest-to-shelf times measured in hours, enhancing freshness and reducing transport costs.
- Automation is not about replacing labor but upgrading workforce roles into smart system operators, according to Raziel.
Grow-tec on Indoor Farming: Bridging Technology and Practical ROI
Grow-tec, an Israeli agritech company with over 20 years of experience in controlled environment agriculture (CEA), is charting a distinctive path in Europe’s indoor farming sector. Specializing in vertical farming systems for fruiting vegetables like tomatoes and cucumbers, Grow-tec’s approach stands apart for its focus on economically viable, automation-ready solutions tailored for long-term ROI. We were pleased to have the input from Shlomy Raziel, President of Grow-tec (Profile), in our report
“We chose to focus on a real solution with proven feasibility,” said Raziel, “tackling the most complex challenge: growing fruiting vegetables indoors in markets where demand and pricing justify the investment.”
Tackling Labor Challenges Through Smart Automation By Grow-tec
Labor shortages remain a critical barrier in CEA operations. Grow-tec addresses this through its smart indoor farming platform, integrating robotics and AI to manage the full plant lifecycle—from seed to harvest. This enables consistent quality, reduces dependency on seasonal labor, and minimizes compliance risks.
Automation pays off quickly, according to Shlomy: “In most of our projects, labor costs account for 40% of expenses. With automation, our systems typically see full payback in about three years.”
CEA Automation in Europe: From Greenhouses to Integrated Platforms
As greenhouse operators in Europe seek to upgrade operations, Grow-tec offers modular, “Lego-like” solutions that can retrofit existing infrastructure. These systems centralize control of lighting, climate, irrigation, and fertigation through an AI-driven dashboard, effectively reducing error margins and enhancing yield consistency.
The company emphasizes vendor-agnostic design, ensuring compatibility with legacy systems and enabling smooth transitions to smarter systems.
The Rise of Zero Distance Agriculture
Grow-tec is also leading what it calls the “zero distance agriculture revolution”—installing indoor farms close to retail logistics hubs. This reduces the time between harvest and store shelves to just hours, maximizing freshness, flavor, and shelf life while cutting down on transport emissions.
“The time between harvesting and packaging is measured in hours, not days,” Raziel noted. “It’s not just fresh—it redefines the concept of freshness.”
Rethinking ROI and Financing Models
Grow-tec’s strategy includes extensive project support—from initial planning to ROI analysis. In vertical farming setups, the ROI window is usually between 3.0 and 3.5 years, contingent on scope and automation level. The company also helps clients navigate funding options, including strategic partnerships, government incentives, and sustainability-linked investment.
“To succeed, projects must present not only strong technology but proven operational data and a connection to food security priorities,” Shlomy advised.
Energy Optimization and the Future of Indoor Farming
With energy comprising over 50% of operational costs in many regions, Grow-tec emphasizes real-time optimization of light, temperature, and irrigation using AI and sensor data. The company’s systems adjust lighting wavelength, intensity, and timing to plant developmental stages, significantly improving efficiency.
The rise of advanced LED solutions and renewable energy integration supports Grow-tec’s outlook for sustainable and scalable growth across European indoor farming.
Looking Ahead For Grow-tec
By the end of the decade, Grow-tec predicts that full automation will become the norm in indoor agriculture, especially as humanoid robotics and AI become more affordable. But technology alone isn’t the goal.
“We’re not replacing people—we’re creating skilled operators of smart systems,” the company said. “Success lies in people understanding and adapting to these tools.”
As Europe’s indoor farming sector matures, Grow-tec continues to advocate for realistic planning, economic feasibility, and a redefinition of agricultural proximity—proving that the future of farming might be closer than we think.
