Vertical farming, despite its potential, has faced significant challenges in recent times due to rising inflation, increasing interest rates, and their economic consequences. Many existing and new farms are struggling to cope with these changes. To ensure profitability and scalability, vertical farms need to align costs and revenue. This is where as-a-service models for automation technology come into play.

One such model is offered by Seasony, a company that provides Robotics-as-a-service. Instead of investing a large amount upfront, growers can pay an annual fee and have access to the automation they need without any expensive service agreements or unnecessary buy-ins. This allows them to better align their costs and revenue.

There are three key economic factors that affect the profitability and operations of vertical farms. First, the abrupt increase in energy costs has put a strain on these operations. To counteract this, farms are exploring cost-saving solutions such as automation. Seasony’s automation technology, called Watney, can integrate seamlessly with existing systems, providing immediate cost benefits without the need for extensive redesign.

Second, in a high-interest rate environment, it becomes challenging for farms to invest in capital-intensive automation solutions. Vertical farms already require significant upfront capital for land, buildings, and cultivation technology. Adding additional upfront investment for automation systems becomes even more difficult. Seasony’s OPEX-based model allows farms to align their automation expenses with production output, easing the burden of long-term capital commitments.

Lastly, with rising wages, the case for automation becomes stronger, even for labor tasks that were previously outside the scope of robotics. Seasony’s flexible automation solution, Watney, can automate tasks across the entire farm, ensuring efficient handling of even marginal labor tasks.

In conclusion, the economic landscape for vertical farms is ever-changing, and it requires flexible and economically sustainable solutions. By offering cost relief, reducing capital needs, and providing scalable automation, Seasony’s Watney enables vertical farms to navigate these challenges successfully.

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Sources: The source article is from Seasony at www.seasony.dk