Key Takeaways:
- Founder and CEO Shlomy Raziel emphasized the importance of unit economics and tailored solutions for sustainable growth in the vertical farming sector.
- Grow-tec, based in Israel, has transitioned from greenhouse-focused projects to indoor vertical farming specializing in fruiting vegetables like tomatoes and cucumbers.
- The company is building robotics partnerships to reduce labor needs and minimize cross-contamination risks in indoor farms.
- Raziel advocates for industry-wide collaboration on shared challenges like energy efficiency, HVAC systems, and crop branding standards.
- Grow-tec’s ideal projects are consortia involving retail, finance, growers, and tech providers to ensure scalability and market fit.
Shlomy Raziel’s Sotry: From Kibbutz Roots to Vertical Innovation
Shlomy Raziel, CEO and Founder of Grow-tec, shared his 20-year journey in controlled environment agriculture (CEA) in a recent episode of the Vertical Farming Podcast. Speaking from Grow-tec’s headquarters in northern Israel, Raziel reflected on how growing up in a kibbutz and his background in agriculture and engineering shaped the company’s mission to deliver tailored CEA solutions.
“I was born into agriculture. The smell of plowed soil still stays with me,” Raziel said. “That environment taught me to think practically, adapt quickly, and build from the ground up.”
A Shift from Projects to Product
Founded in 2004, Grow-tec initially focused on greenhouse systems and infrastructure across Eurasia and Southeast Asia. However, in recent years, the company pivoted toward vertical farming and indoor fruiting vegetables—such as cucumbers and tomatoes—believing these crops held more technical complexity and untapped value than the often-targeted leafy greens segment.
“We didn’t want to compete in low-barrier segments. We wanted to tackle harder challenges,” Raziel explained. “The goal wasn’t just to grow produce—it was to make it economically viable without depending on subsidies.”
Grow-tec developed a three-stage crop cycle across dedicated nursery, vegetative, and fruiting zones. According to Raziel, the system achieves year-round productivity, with consistent yields of over 1,000 cucumbers and 600 tomatoes per square meter annually.
Unit Economics and Real-World Application
Raziel was direct about the need for economic sustainability in vertical farming: “You cannot build a long-term business model based only on grants or subsidies. You need strong unit economics.”
With the commercial launch of its indoor fruiting vegetable system in 2024, Grow-tec is expanding internationally. The company’s strategy focuses on locations where land scarcity, energy challenges, or climate constraints justify the vertical model—such as Scandinavia, Singapore, and the Gulf region.
Shlomy Raziel’s Call for Industry Collaboration
Raziel also stressed the importance of open collaboration in the sector, particularly around non-proprietary challenges like lighting, HVAC, and labor automation.
“There’s no point in hiding behind company borders when we’re all facing the same core issues,” Raziel said. “Improving lighting or HVAC benefits everyone. We need standards and shared platforms, not silos.”
Grow-tec is currently building partnerships in robotics to support autonomous harvesting and reduce cross-contamination risks. Raziel noted that innovation in these areas is critical not only for efficiency but also for biosafety.
Looking Ahead
Raziel encouraged industry peers to think beyond competition and toward structured collaboration. “We need to rebrand vertical farming with consistent language and shared values,” he added. “If we work together—technologists, growers, retailers, and financiers—we can build something that truly scales.”
Grow-tec continues to welcome visits to its R&D facility in Israel and invites companies interested in fruiting vegetable production to explore partnership opportunities through its website grow-tec.com.
