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Indoor vertical farming
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Vertical farming production costs and financial performance
CapEx, OpEx, ROI, and repayment periods must be calculated using personalized calculations in order to account for all variables. To illustrate, let's examine a vertical farm enterprise in the United Arab Emirates that utilizes Green Amazon Leafy Greens technologies.
The 500-square-meter structure has a height of 4.6 meters, providing it a total cultivation area of 1,000 square meters. If the farm grows lettuce and herbs, its estimated monthly yield is 3,400 kilograms.
With a produce price of approximately $ 18 per kilogram, the farm's total income is $ 57,900. The monthly cost of labor, materials, utilities, rent, and other operational expenses is approximately $32,600.
This gives the farm a monthly EBITDA of $26,200, and the farmer is expected to recoup their investment in the Green Amazon agricultural technology and equipment in just 3.6 years. The average return on investment for an Green Amazon vertical agricultural startup is four to six years.
It is essential to note that the provided calculations are approximations, as they do not include expenses such as the building itself, renovations, shipping, and import duties. Before beginning a vertical farm, it