GreenConnect – greenhub

4 Key Takeaways from AVF Summit Munich 2025: Profitability, Food Security, Hybrid Models, and AI

admin — Tue, 09 Sep 2025 15:42:52 +0000

The AVF Summit 2025 in Munich brought together global stakeholders from science, policy, technology, and industry to discuss the future of food production in the face of ecological, geopolitical, and urban challenges. Structured along six thematic pillars, the two-day program provided both global perspectives and practical solutions, from climate action to investment strategies. The discussions highlighted how vertical farming is moving beyond early hype toward practical, market-driven solutions. Below are some of the main insights and debates that stood out.

Profitability and Market fit in CEA

The investment discussions in Pillar 3 echoed this same theme: without clear market fit, even the most advanced cultivation systems will struggle to secure long-term viability. Especially the panel of and introduction to CEA 360 profitability framework which we would like to elaborate on further. It was an interesting panel by Professor Joel Cuello on how to make indoor farming profitable, in which Marcos Enriquez of ISIFARMER and our Alexander Jaworski shared their respective visions for this business in this interactive panel.

CEA 360 Profitability: An Integrated Protocol for Vertical Farms

The concept of Prof. Joel Cuello for making a vertical farm profitable is a very interesting one even though we would change the direction of the arrows. It should start with the market.

We have seen too many vertical farm ideas without having the offset for the amount of produce they were able to produce, or they didn’t achieve the yields according to their contracts. A good insight during the AVF Summit was also that farms did not grow the right crops for the regions of the world they were operating in. So the produce-market fit was not given.

People like to buy what they always buy; if it is produced locally, even better. But growing something exotic for a place that is also more expensive than what people are used to will most likely fail. There are also prominent cases from the past where such a produce-market fit was not given.

Once you have identified the right produce and quantities for the right market, you move on to the supply chain operations, crop R&D, and so on. The cultivation system is a natural outcome at the end, not your starting point. So, it all starts with the market and ends with the production system, not the other way around.

Contribution of Indoor Farming to Food Security

The Current Status Quo

Growing staple crops would lead to food security. This ties into broader climate-action debates at the summit (Pillar 2), where speakers stressed that resource efficiency and CO₂ accounting must align with crop choices that genuinely support food security.

As we only eat 5.7 kg of lettuce in Germany per year, it only makes up 5.5% of the overall vegetable consumption and 1.7% of all food we consume on average in Germany per capita (Leipzig University source). To speak about food security while growing leafy greens seems too far-fetched, according to the conversations we had at the AVF Summit. The trend must lead to more caloric crops as well as staple crops.

The definition of staple crops seems unclear and might need to be broadened.

We already see protein content in wheat at 25% numbers that are way above those of field-grown wheat. Nevertheless, we would currently need an electricity price of 1 ct/kWh to make it cost-competitive with field production.

Which staple crops make sense to grow? Do peas from Veganz provide the next leap forward in that debate for staple crops in vertical farming?

Hybrid Approaches in Vertical Farming

Hybrid Solutions in Urban Structures

Pillar 4 highlighted how cities like Madrid and Singapore are integrating vertical farming into urban infrastructure, showing hybrid approaches where vertical systems complement, rather than replace, existing food production networks. As the industry has been discussing for a while now, we should rather make vertical farming an integrated hybrid solution for now instead of a stand-alone version. The market will develop together with the existing greenhouse market as well as the climate-tech market for climate change-resilient research and forestry.

Hybrid solutions that were discussed, including nurseries for greenhouses, grafting systems, tree seedlings, and speed-breeding facilities.

What approaches do you see that would make for a resilient and future-proof hybrid vertical farming system?

AI in Vertical Farming

Where Are We At?

The technology discussions in Pillar 6, from AI to digital twins, made it clear that data is becoming the most valuable input in CEA. Yet as Alex noted, questions remain around ownership and incentives for data sharing. Companies growing in their own systems, such as Avisomo, are already collecting data that can be used to train and run an AI on their operations. But we are not fully there yet, as Endre stated.

The question also remains: who has data ownership if companies that focus on AI modeling as SaaS models, and not running their own farms, train their systems on actual farm data from farm operators?

If we look at the greenhouse industry, the same question has been discussed for a longer period already, with some hesitation to share data over the last two decades. The silo approach also showed that yields per sqm have been stagnating over the last 20 years, according to a recent Rabobank report.

It is now slowly shifting that people want to learn from each other and share data. To make it more attractive for the farm operator, companies could incentivize data sharing so they have the right to train on farm data, but the farm operator is not just giving away his valuable insights. How could something like this look?

Our Conclusion of the summit

From established players to rising startups showcased in the AVF Startup Challenge (Pillar 5), the summit made clear that the vertical farming sector is maturing and moving from experimentation to execution. The AVF Summit in Munich showed that the vertical farming sector is entering a new phase: profitability models must begin with the market, food security will require staple crops, hybrid systems offer resilience, and AI will only thrive if data sharing is addressed fairly.

The debates sparked in Munich are not about whether vertical farming will play a role, but about how it can become sustainable, profitable, and future-proof.

Who whas there at AVF summit 2025?

In this collaborative setting, it was inspiring to see so many familiar and new faces come together Michał Słota, Andreas Köck, Alessandro Oliveri, Alexander Jaworski, Fadi Sbaiti, Peter Defranceschi, Marcos Enriquez, Susanne Hirschmann, Marie Ammann, Laura Nelson, Tusya Garibashvili, Besan Dahboor Engel, Endre Thesen Harnes, Christine Zimmermann-Loessl, Silvana Nicola, Joel Cuello, Julia Rocha Romero, Senthold Asseng, Reinhard Bott, Hannah Hoven, Martin Parapatits, Fadi Al-Daoud, Andrea Kienle, Mandar Godge, Rachel Norman, Michael Schmidt, Johann Waldherr, Nivedita Mahida-Königsdörfer, Sabine Wittmann, Pooja Suresh Gowda, Eleonora Itri, Nina Kapitan, the VertiFarm team, Susanna Lössl, Patricia Cliff, Christer Tilk — and many more.

It was a rare opportunity to connect and reconnect with colleagues across the vertical farming ecosystem, and to dive into truly in-depth conversations about how far the industry has come, and where it is headed next.

Find out more about our new innovation.

With GreenConnect, we link existing indoor farms to the latest automation technology.

Hydroponic Farming, part of the future in the Mediterranean?

admin — Tue, 29 Jul 2025 14:29:13 +0000

1. Introduction: Agriculture’s Water Crisis in the Mediterranean

The Mediterranean region as a whole is described as a “climate change hot spot,” where changes in climatic parameters—especially temperature and precipitation—exceed global mean values (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed). Freshwater scarcity is one of the most urgent challenges facing Mediterranean agriculture today. Countries like Spain, Türkiye, Italy, and Greece are already experiencing the impacts of rising temperatures, declining rainfall, and overexploited aquifers. For farmers, this means shorter growing windows, unpredictable harvests, and rising input costs unless they adopt new water-smart practices.

Rising temperatures: Mean annual temperatures across the Mediterranean Basin are about 1.5 °C above late 19th-century levels, exceeding the global average (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed). This warming has led to more frequent and intense heatwaves, with continuous midday temperatures above 30 to 40 °C.
Declining rainfall: There has been a “rapid change in the water cycle due to increased evaporation and less rainfall.” Projections indicate “substantial reductions of water availability by 2–15% for 2 °C of warming,” which is one of the largest decreases globally (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed). River flow and discharge are also expected to significantly decrease.
Overexploited aquifers: The “overexploitation of existing water reservoirs and groundwater aquifers” is contributing to environmental stress (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed). In the Almería coastal region (Spain), “some water contamination problems of the underlying aquifers have already been detected.”

In southern Spain, for example, annual precipitation could drop by up to 30%, and in some regions even 40% (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed). Meanwhile, Türkiye’s agricultural sector consumes over 85% of the country’s total water use (World Bank to Support Farmers Enhance Crop Production and Food Availability in Türkiye)—a figure that is unsustainable in the face of climate change.

According to the Intergovernmental Panel on Climate Change (IPCC), every 1 °C increase in global temperature (up to 2.7 °C above pre-industrial levels) reduces renewable freshwater resources by at least 20%, potentially pushing millions more into water-stressed conditions. As temperatures rise, the number of people living in water-scarce river basins is expected to increase from 8% at 2 °C to 13% at 5 °C worldwide (IPCC, 2021). That’s why Mediterranean growers need solutions now, not just to survive climate shifts, but to stay competitive.

By 2100, regions across the Mediterranean could see irrigation water demands—already representing 50–90% of total water use in Mediterranean countries—increase by 4–18% as a result of climate change alone (for a 2 °C and 5 °C warming scenario, respectively), even as available freshwater declines (Climate Change in the Mediterranean: Environmental Impacts and Extreme Events: IEMed).

2. Drought Pressure Opportunities and Innovation, 3 Mediterranean countries highlighted

Türkiye

Funding Window:

$819M from the World Bank — Türkiye Second Irrigation Modernization and Water Efficiency Project (World Bank to Support Farmers Enhance Crop Production and Food Availability in Türkiye). Antalya has the largest greenhouse horticulture surface and is the first producer of the horticultural crops of Türkiye (Environmental and Economic Performance of Greenhouse Cropping in the Mediterranean Basin: Lessons Learnt from a Cross-Country Comparison).
→ Covers 72,000 ha, targeting 50,000+ farms
→ will serve farmers in and around central Anatolia region and Antalya province, targeting a population of over 550,000 people
→ Supports water-saving tech, infrastructure upgrades, and weather-resilient systems

Hydroponic Fit:
Soilless systems are expanding in geothermal zones with high-tech greenhouse support (Current trends in protected cultivation in Mediterranean climates). Antalya is a region to watch for hydroponics, thanks to geothermal potential and a well-established greenhouse sector.

Spain

Drought pressure opportunities:
While no direct national subsidies for hydroponics are published recently, the Andalusian Regional Government is investing over €15.7 million in 2025 to help more than 14,000 producers access combined agricultural insurance. This support aims to stabilize incomes in the face of climate-related risks like drought, frost, and storms — key issues that are pushing the need for more water-efficient and controlled farming systems (Source: Junta de Andalucía, July 2025). Although this aid is not tied to greenhouse modernization and is not a direct incentive for hydroponics, the insurance support signals growing public interest in risk mitigation an area where hydroponics offers clear advantages through controlled-environment growing. Safeguarding agricultural productivity in high-risk zones like Almería, with its well-established greenhouse sector, is becoming increasingly important.

In 2024, the Junta de Andalucía launched a €500 million rural aid package to support modernization, improve competitiveness, and attract a new generation to farming. This includes €100 million earmarked specifically for machinery and equipment upgrades, plus a €36 million investment in irrigation system modernization. A further €130 million will support young farmers, and €80 million is being made available through subsidized credit lines. While not hydroponics-exclusive, these funding lines are open to commercial farmers, including greenhouse operators in Almería — one of Europe’s most water-stressed production zones.
(https://www.surinenglish.com/andalucia/the-regional-government-injects-liquidity-into-the-20240417075748-nt.html)

Hydroponic Fit:
Updating irrigation to hydroponics or drip systems can solve issues related to drought by retrofitting parts of the big greenhouse regions. Digitalization can help attract younger farmers to this region. Hydroponics turns water risk into a competitive edge — using less water and offering more stable yields in extreme conditions. So, it is a strategic investment on both ends.

Greece

Funding Window:
In November 2024, the Greek government announced the €150 million Intervention P3-73-2.9 as part of its 2023–2027 CAP Strategic Plan, designed to support the modernization or construction of greenhouses and mushroom shelters. The scheme provides 50–70% subsidies for investments in:

Hydroponic and soilless cultivation systems
Heating, cooling, automation, and shading
Water and nutrient recycling systems
Solar and renewable energy integration (up to 30%)

Eligible applicants include individual farmers, cooperatives, and agri-legal entities registered in the national agricultural registry.
Source: Ministry of Agricultural Development & Food (Greece), Nov 2024

Why This Matters Now:
Greece is facing a deepening water crisis, with reservoirs shrinking, crop failures mounting, and rural communities running dry. In 2024 alone, entire harvests — such as cotton and olives — were halted due to lack of irrigation, especially in Thessaly, Crete, and central Greece (Kathimerini, July 2024; To Vima, July 2024).

The pressure on farmers is intensifying:

55% of total water use in Greece is for agriculture
Several regions imposed irrigation bans during critical growing periods
Soil degradation and salinity are rising due to over-irrigation and drought cycles

Hydroponics fit:
This funding comes at a crucial moment for growers seeking water-resilient solutions. Hydroponic systems use up to 90% less water, can be operated in closed-loop setups, and offer precise climate control — making them ideal for regions like Crete, Thessaly, and the Aegean islands.

The initiative also supports:

Retrofitting older greenhouses with smart technology
Combining solar power with automated irrigation
Growing high-value crops in limited spaces

By enabling a shift toward controlled-environment agriculture, this program offers an opportunity for tools to futureproof not just farms, the future of food security in water-stressed regions of Greece.

3. What Next? Exploring ways to leverage hydroponics, indoor farming and CEA.

EU Funding Is Evolving, So Should Your Growing Strategy

As climate change intensifies across Europe, the European Commission is rolling out a new wave of water-saving subsidies under the Common Agricultural Policy (CAP). The upcoming revision includes:

Support for drought-resistant crops in arid regions
Funding for precision irrigation and water reuse technologies
“Transition Packages” for farms adopting sustainable, climate-smart practices
Additional financing via the European Investment Bank for ecosystem resilience

These measures signal a strategic pivot: European agriculture must now balance production with climate adaptation and water efficiency. For Mediterranean growers, especially in water-stressed regions like Greece, Spain, Türkiye, and Italy, this is both a challenge and an opportunity.

Hydroponic systems are a great growth strategy to leverage these budgets and futureproof your farm. With up to significant water savings, efficient nutrient delivery, and year-round production, soilless farming is perfectly aligned with the EU’s new sustainability criteria.

How greenhub can support you:

At greenhub, we help Mediterranean farmers future-proof their businesses with:

Guidance for hydroponic funding eligibility & applications

Access to hydroponic technology, our partners and system setup.

Agronomic, technical, and financial guidance for system setup.

Retrofits for existing greenhouses or full indoor farming systems.

Guidance in making the transition to hydroponic growing and cultivation recipe development.

Let us know what you are growing and what your goals are, we’re here to bridge the gap between policy and practice.

Ready to take the next step? Contact greenhub today and let’s shape the future of Mediterranean farming, together.

Curious if hydroponics is right for your farm? Our GreenConnect and GreenPro tools can help you take the first step.

Vertical Farming versus Greenhouses: is it really a competition?

admin — Thu, 24 Jul 2025 14:23:21 +0000

It’s a question we often hear at greenhub:

“Which is better vertical or greenhouse farming?”

Over the past few years, many reports and studies have tried to compare the two. But the reality is: it’s like comparing apples to pears. Vertical farming is still a young, fast-evolving field without standard benchmarks. Greenhouse cultivation, on the other hand, is a mature, global industry, but one that looks very different depending on where you are.

Instead of framing it as a competition, we believe it’s more useful to see them as part of the same movement: Controlled Environment Agriculture (CEA).

Each system has its strengths.
Greenhouses work with natural sunlight and thrive in spring and summer. With supplemental lighting and heating, they can stretch the season even further.
Vertical farms actively create optimal growing conditions year-round and is especially valuable in cities, extreme climates, or when consistency is critical.

And sometimes, the smartest setup is a hybrid approach.
For example: using vertical farming for propagation and early growth, and finishing crops in the greenhouse. This can lead to a clean, uniform, and strong start which often pays off later in the cycle.

At the end of the day, the best solution depends on your crop, market, location, energy setup, and climate conditions.

It’s not about either-or.
It’s about making systems work together and choosing the elements that fit your goals and in the whole process.

Let’s shift the conversation from comparison to collaboration.
That’s where the real innovation happens.