Agricycle Growing around Atlanta
Our team and mission
Architects :
Lu ‘Grace’ Pang, Animesh Shiestha, Jeremey Gentry
Grower :
Corey Mosser, Charles Greenleaf
Entrepreneur :
Houtan Zojaji
Engineer :
Jeffrey Landau
Marketing Professional :
Erik Maguina
Sustainability Manager :
Arsalan Mahtafar
Generalist :
Tanner Barr
Our mission is to innovate local sustainable food systems
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Our goals/mission
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Develop an urban farm that is economically sustainable
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Generate market rate of return on capital
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Minimize adverse environmental impact
Engage the local community Promote sustainable urban farming Create jobs for marginalized communities Provide quality produce to areas that do not have market access (i.e., food deserts) Ensure environmental footprint for our production is less than traditional agriculture
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Our location Key characteristics
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Located in an industrial zone
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Near interstate highways (I-85 and I-20)
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Railroad access
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Near several food deserts
50 acres large 30-40% paved land No existing structures on property
Possible future Belt-line and Marta access
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Our business plan
Division Vertical urban farm
Food distribution hub
Farmer services
Description
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Develop an urban vertical farm with 2 components
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Enclosed/convertible farm producing root vegetables (carrots, beets, turnips, kale, collard greens, broccoli)
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Processing (washing, cut/chop, packaging, flash freeze)
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Consulting
Closed artificially lit indoor farm with aeroponics producing leafy greens (lettuce, kale, arugula, microgreens)
Cold storage Distribution
Training/workshops Community events
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Business plan – elevation view and integration
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Business plan – flyover
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Indoor farm – systems diagram
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Enclosed/convertible farm
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Convertible farm – systems diagram
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Convertible farm – systems diagram
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Food hub – systems diagram
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Business model, economic sustainability, and yield estimates
HIGH LEVEL ESTIMATES
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Initial CAPEX
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Ongoing OPEX
Indoor farm revenue assumptions
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Convertible farm assumptions
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3/18/16 Annual cash flow1 USD Millions
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7% IRR 3/18/16 3/18/16 3/18/16
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The operation will produce a 7% rate of return over 5 years and generate 35% margin at run-rate 1 Have not included any revenue or costs from farming services
Key assumptions: $7.5 M for indoor farm $0.6M for convertible farm $2.5M for food hub $1.7 M for indoor farm $0.2 M for convertible farm $2.5 M for food hub Total sq. feet of grow beds: 90k Average yield per sq. foot: 5 lb Average price/lbs: $6.00 Total sq. feet 82k Average yield per sq. foot: 1.9 lb Average price/lbs: $4.00 Food-hub assumptions Volume processed/stored/distributed per year: 5 tons year 1, growing to 25 tons in year 4
▪ Net margin on revenues: 30%
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Marketing plan
Target customers
Marketing strategy
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Focus on selling high value products out of season in Atlanta
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High-value grocery chains in Atlanta and nearby metro areas
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Sell to K-12 to help them meet their healthy meal quotas
Medical centers and institutions
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Capitalize on their need for healthy and traceable food
Farmers market
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Participate in farmer’s markets to engage community and promote brand awareness
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Outreach to farmers to promote farmer services
Restaurants
Grocery stores
Schools
Roots and greens from December to April
Mom and pop locations in food deserts
Promote our quality and nutritional value
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Environmental sustainability
Design
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Electricity provided by solar panels
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Three 20,000 gallon cisterns to collect and redistribute rainwater throughout the site
Annual evaluation and benchmarking against traditional agriculture
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Carbon footprint (electricity, food miles)
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Water consumption
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Recycling nutrients prevents agricultural pollution through run-off
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15 acres of vegetation on the land will be in conservation
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Process
3 quarter-acre facilities to collect neighborhood compost
Continuous improvement Kaizen workshops for developing innovative improvements
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Social sustainability Our location
Our target communities
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Food Deserts in ATL: Bankhead Whittier Village Center Hill East Atlanta Winnona Park Campellton Old Fourth Ward Riverside West Highlands Peoplestown Mechanicsville Lakewood East Lake Greenbriar
Many of these Neighborhoods have poverty rates as high as 86% Sources: www.ers.usda.gov/data-products/food-access-research-atlas http://www.neighborhoodnexus.org/maps http://www.city-data.com/city/Atlanta-Georgia.html http://apps.ams.usda.gov/fooddeserts/fooddeserts.aspx
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Thank you! Questions? Agricycle17|
Appendix – Financial model assumptions Assumption
Amount
Indoor farm Cost per square foot Square footage warehouse Number of grow beds per level Number of levels Nuumber of LEDs per growbed Price per LED Lettuce yield (lbs/sq.foot/year Size of each bed Lettuce per pound (wholesale) Building facilities (as % of building) Total capital costs Kale (price/lb) Microgreens Average price of produce
$57.80 10,000 20 12 488 132.5 5 376 $6.00 50% 7400000 $1.03 $25.00 $6.00
Enclosed / convertible farm Number of units Beds per unit Sq foot/bed Total sq footage Yield per bed per year (per year) Sq footage per bed Yeild per sq foot per year Average price of produce Labor for harvest per bed (hr) Number of harverst per year Labor cost per hour Labor for plant and prep per bed (hr) Labor for upkeep per bed (hr) Seed Fertilizer Organic pesticide Compost cost per bed (CAPEX) Bed cost Convayer (per unit) Irrigation (per unit) Cistern (for 3) Convertible cover (per unit)
12 17 400 81600 750 400 1.9 $4.00 6 5 12 2 2.5 $5,000 $3,000 $2,000 $500 $200 $20,000 $6,000 $100,000 $8,000
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