Weβll run through a real-world scenario and then pose a new question to you each day this week.
(Thread β¬οΈ)
SCENARIO: Youβre analyzing 2 potential farming setups in Mexico City.
1οΈβ£ is a building with available indoor space of 250 m2 for a #verticalfarm, within walking distance of several top restaurants
2οΈβ£ is an empty lot on the outskirts of the city with 750 m2 for a #greenhouse ...
... both farms will grow Genovese Basil.
QUESTION 1:
Which farm do you think is more expensive to build (higher total βCapExβ)?
β‘οΈ Respond with your guess! Check back tomorrow on this thread for the answer + a new question.
ANSWER 1:
Using our feasibility tool within #agritecturedesigner, we found that Site 1οΈβ£ - the vertical farm - would have a slightly higher CapEx (+5%) despite an area 1/3 the size of the greenhouse site!
Now on to QUESTION 2:
Which farm do you think would be more expensive to run on an annual basis (higher total βOpExβ)?
Check back tmrw for the answer and a new question π
ANSWER 2:
The vertical farm has a higher OpEx β by about 75%!
(Why? Most of the difference is due to electricity costs π‘π‘).
Now to QUESTION 3:
Which farm do you think has the higher annual revenue potential? π°π°π°
(You can assume both farms sell their basil for the same price).
Tune in tomorrow to find out! π±
ANSWER 3:
The 250 m2 vertical farm has a revenue potential +3% higher than the 750 m2 greenhouse.
This of course assumes the same selling price - but you may see higher quality/consistency in a VF, which could further increase your revenue potential.
QUESTION 4:
Which farm has the shorter payback period on its CapEx?
Answer coming tomorrow!
ANSWER 4:
The greenhouse has the shorter payback period, by about 4 months.
Want to run simulations like this one all day long?! π€