Verticalfarmdaily.com reported that Future Crops Cooperative U.A., an Israeli-Dutch vertical farming company located in Poeldijk, announced that it had filed for bankruptcy. Future Crops had scaled back a significant portion of its production in the fourth quarter of 2022 due to high energy costs. The company’s products were sold under white labels at the Dutch supermarket chain Albert Heijn. Founded in 2016, Future Crops is the fruit of a partnership with the Israeli Agricultural Research Organization (ARO) and A&F Ventures, receiving $30 million in the first round of investment. In 2022, a second round of investment was led by Chinese giant Tencent.
Future Crops Joins An Increasing List of Bankrupt Indoor Farming/Vertical Farming Companies
Yesterday, Produce Blue Book reported that Leamington, ON-based greenhouse grower Lakeside Produce Inc. has filed for bankruptcy, owing $188 million (Canadian) to creditors. The company, which specializes in growing conventional and organic fresh produce such as tomatoes, cucumbers, bell peppers, and eggplant, has been delisted due to the filing.
Towards the end of 2022, Glowfarms and Fifth Season were reportedly shutting down due to macroeconomic events and the impossibility of raising capital.
Bankruptcy Related To Tencent?
The past year has been a roller coaster for Chinese companies as they were facing both strict lockdowns and increasing pressure from Beijing to control the assets of influential companies such as Tencent.
Recently, the Chinese government has increasingly acquired shares in companies such as Tencent, Alibaba, and other tech giants. In addition, as the Financial Times reports, the government has been acquiring ‘golden shares,’ which gives special rights to the government to overturn certain business decisions regardless of the proportion it owns.