EXECUTIVE SUMMARY
An overview of the business already established and the future milestones to be achieved
EXECUTIVE SUMMARY
COMPANY SUMMARY
XXXX Ltd is a newly established agriculture consulting company, incorporated in May 2023 in London. The company provides a wide range of controlled environment agricultural consulting services to individual and corporate farmland owners. The basis behind the company formation is the promotion of the concept of controlled environment agriculture among investors and farmers. The idea of controlled environment agriculture, or CEA is not new, but it has been growing in popularity in recent years. CEA builds off the concept of greenhouse and vertical farming, whereby temperature, moisture, lighting, and overall climate are controlled in a particular area to promote optimal plant growth. Farming practices like hydroponics, aeroponics and aquaponics are all considered CEA. This method of agriculture has gained popularity in recent years due to its ability to produce higher yields with fewer resources, give farmers greater control over their operations, and provide fresh produce in areas where traditional agriculture may not be challenging.
XXXX’s focus is on improving the yield and quality of crops for existing farmers while analysing and evaluating new investment opportunities for new agricultural investors. This is fulfilled through its comprehensive range of consultancy services, business plan development services, project management abilities, research and development initiatives, training and workshops, technical support, and partnerships and collaborations with agritech businesses. The company's specialised consulting services involve a comprehensive analysis of each project from conception to construction, implementation, and continual management. The team of experienced agricultural experts at the company conducts onsite visits and data analysis to identify the specific needs of its clients and develop customised solutions to address them. The team at XXXX is committed to providing farmers and agricultural investors with the necessary tools to achieve success in their agricultural projects, maximising the utilisation of available resources and maintaining a strong commitment to environmental conservation. The company envisions creating a new era where agriculture is economically feasible, resilient to climate change, and powered by data-driven strategies.
EXECUTIVE SUMMARY
BUSINESS MODEL
Currently, the company offers business plan development, project management, consulting, and technical support services to its clients. It also engages in research and development to create new agricultural techniques and sustainability solutions, hosts workshops, facilitates partnerships among agriculture businesses and collaborates with suppliers of agricultural tools and machinery. The company is using a combination of fixed and variable pricing for its services, with some being charged at a set rate and others based on the scope of the services provided. While the business is in a good position, the founder lacks the funds to expand the business's reach and increase the volume of projects. Therefore, the founder plans to raise funds from investors to develop an AI-based consulting software to provide data-supported consulting services, enhance the company's capacity to handle more projects and add additional services to its offerings. The AI-based software will analyse the current state of crops in greenhouses and provide a report on the factors that are hindering their growth. The report will also outline areas for improvement, which the team will then analyse to develop suitable strategies for minimizing costs, increasing productivity, and improving quality. The software will allow the greenhouse owners to detect and address issues ahead of time, predict yields and reduce shrink, as well as optimize space and resources to maximize output. It will also help detect problems with crops throughout the growing cycle. By combining the results of AI-based software with the expertise of experienced consultants, the company aims to assist greenhouse owners in detecting pests and diseases, accurately forecasting yields, and maximizing space utilization. The company aims to build a strong team of professionals to remain competitive, provide unique value to its clients, and stay at the forefront of the industry. It also seeks to establish itself as a global leader in each of its areas of activity.
EXECUTIVE SUMMARY
TARGET DEMOGRAPHICS
XXXX Ltd currently serves clients across Europe in terms of geography. After gaining substantial traction in the region, the plan is to expand the business globally in phases, beginning with China and the USA. The company's target demographics include greenhouse operators, growers, and owners, as well as investors in agricultural technology and greenhouses, horticulture start-ups and innovators, and government and non-governmental organisations. It specifically targets businesses that are struggling with inefficient crop production processes or lack of knowledge of the latest agricultural technologies and techniques. These businesses are committed to improving their crop yield and quality while also taking measures to reduce their environmental impact. These clients will be contacted through direct outreach and by participating in agricultural industry events and conferences. The company aims to establish long-term relationships with its clients and become their preferred choice for CEA consulting services.
INVESTMENT REQUIRED
The founder has already invested equity funds in the business to fund the company formation, research and development, legal, and initial personnel costs. Additional funding requirements will be met through investor funds This document outlines the strategies that XXXX will use to maximise its profits and lower operating expenses. These strategies will ultimately increase ROI and benefit the stakeholders associated with the company. To expand the business reach, the company will need to invest heavily in developing the consulting software and webpage, hiring personnel for various positions, implementing marketing initiatives, and participating in expos and conferences.
This capital expenditure will be met by an investment of ----- million in the form of investors’ funds. This investment will help XXXX breakeven in the first year of operations and pave the way for steady growth in the future.
BUSINESS MODEL
Established a specialised agricultural consultancy business dedicated to providing unique, innovative, sustainable, and well-researched solutions to farmers and agricultural investors to assist them in adopting controlled environment agriculture
BUSINESS MODEL – INDUSTRY OVERVIEW
GROWING AGRICULTURE SECTOR:
In recent years, the agricultural industry has seen a remarkable surge. It plays a central role in human societies, shaping landscapes, economies, communities and cultures. Over the last 70 years, agriculture has evolved from primarily a local activity to a global industry tasked with feeding a growing global population with globalised tastes. The contribution of the agriculture sector to the global GDP has increased from 3.2% in 2006 to 4.3% in 2021.
POTENTIAL OF CEA: According to estimates by the United Nations Population Division, the world will reach some 9.7 billion people by 2050, and feeding this population adequately would require raising overall food production by at least 70%. A great challenge to achieving this output is the shrinking availability of resources (land and water) with heightened consumer expectations. However, all these problems can be completely eliminated with the adoption of Controlled Environment Agriculture (CEA), which involves the production of crops using less resources, while preserving the nutritional content of the produce by using sustainable agricultural practices. CEA has emerged as a potential solution to food insecurity. CEA enables year-round production of seasonal crops by maintaining optimum levels of light and temperature. This removes the need for seasonal harvests and substantially increases productivity. Though still in its nascent stages, 2022 saw a surge of investment in CEA, particularly in Europe, North America and the Middle East. Recent reports from The Brainy Insights forecast further growth, with the global CEA market expected to rise from €77.4 billion in 2022 to €392.28 billion in 2032.
GAPS
TO THE MARKET
ADOPTION:
Despite the benefits listed above, there are considerable challenges that have hindered the widespread adoption of CEA. One of the hardest obstacles to overcome is the lack of specialised knowledge and expertise in fields such as agronomy, hydroponics, and plant physiology without which farmers will be unable to set up the greenhouses and maintain their crops. This is where a strong need is felt for industry experts who can guide the existing as well as new agricultural investors in gaining maximum benefits out of their farming operations.
The traditional agriculture methods are producing 1/3rd of the world's global carbon footprint and using 70% of the world's freshwater. This is prompting farmers and investors to shift towards Controlled Environment Agriculture (CEA) to support environmental sustainability and appeal to environmentally conscious consumers.
BUSINESS MODEL – PROBLEMS
As the demand for agricultural products increases amid the population explosion, farmers are facing growing pressure to maximise their crop yields and improve the overall quality of their produce. However, the agriculture industry faces unique challenges, which make it difficult for farmers to achieve consistent or even sustainable crop yields.
Certain climate-smart agriculture practices may necessitate substantial investments in new technology or infrastructure, which can be cost-prohibitive for many farmers
Farmers lack knowledge about climate-smart agricultural practices and are not equipped to make the transition to smart agriculture
Insufficient utilization of data-driven technology solutions in agricultural consulting services
Farmers face challenges related to policy and regulatory barriers that make it difficult for them to implement climatesmart agriculture practices
Cultural beliefs and practices, such as taboos and adherence to traditional farming methods inhibit the adoption of certain practices
There is an identifiable need in the market for an agricultural consulting firm specialised in the Controlled Environment Agriculture (CEA) industry that can provide customised solutions to address these challenges faced by agricultural businesses and start-ups.
BUSINESS MODEL – SOLUTION
Experts at the company will disseminate the required information to farmers to equip them with the latest smart agricultural technologies ensuring a smooth transition
The entire work related to obtaining permits, licenses and certifications will be carried out by the company relieving clients from the hassles of dealing with regulatory issues 1
Knowledgeable agricultural specialists will assist farmers in choosing the appropriate smart agriculture technology that suits their budget with the help of its AIbacked software 2
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Development of proprietary AIdriven consulting software to support the suggested strategies
The company's knowledgeable consultants will inform potential clients about the advantages of smart agriculture in order to sway their choices
XXXX Ltd offers a range of tailored solutions to existing agricultural businesses, farmers, and agricultural investors to help them enhance their crop yields, quality, and return on investment. With the investment in technology post funding, these solutions will be backed by AI-based software, that will collect all the data and with machine learning will provide tailor made strategies for energy saving, labor cost reduction, yield optimisation and sustainable usage of all materials /outputs. These tailored solutions aim to improve their competitiveness in the market.
BUSINESS MODEL – COMPANY OVERVIEW
COMPANY
FORMATION: Considering the challenges faced by farmers and agricultural investors, the founder conceived the idea of establishing an agricultural consultancy firm aimed at assisting them in transitioning to controlled environment agriculture. A company in this regard named XXXX Ltd has already been established in London, the UK as of May 2023, which has swiftly marked its presence in the Controlled Environment Agriculture (CEA) consulting sector by providing valuable suggestions to its clients helping them improve their agricultural productivity and reduce operational costs. To date, the company has demonstrated remarkable growth and innovation without the reliance on extensive marketing activities and is now poised to increase its resource base to increase its capacity to execute multiple projects at the same time. The company is dedicated to implementing environmentally friendly and sustainable farming methods, which will place it at the forefront of sustainable agriculture investment opportunities.
SERVICES OFFERED:
XXXX Ltd specialises in greenhouse operations consulting. The company provides customised consulting services to farmers and agricultural investors helping them transition to controlled environment agriculture (CEA). It offers comprehensive business plans and financial modelling services to assist investors and farmers in understanding the potential ROI, risks, and costs associated with their greenhouse investments. The company also empowers existing farmers and growers to optimise crop growth, conserve resources, and increase yields, all while harnessing the power of automation and data-driven insights. The team of agricultural experts at the company offers tailored solutions that meet the specific needs of its clients. These experts understand the importance of crop yields and recognise that agricultural businesses have unique challenges that require custom solutions. They work closely with clients to understand their challenges and suggest solutions that produce the required results. The XXXX team is passionate about helping agricultural stakeholders achieve their goals and is committed to making XXXX a leading provider of smart agricultural consulting services worldwide.
ADDITIONAL OFFERINGS: After establishing a strong presence in the controlled environment agriculture consulting sector with its current range of products and services, the company intends to utilise partnerships with IoT firms to provide advanced technology solutions for monitoring and regulating climate conditions in greenhouses. It also plans to develop a proprietary consulting software to analyse the real-time data of greenhouses to suggest appropriate strategies. This initiative aims to enhance crop yields.
TECHNOLOGY USAGE: XXXX will utilise the latest agricultural technology tools to provide its clients with customised solutions for improving crop yield and quality. The company will continue to partner with providers of cutting-edge technology and equipment in the agriculture industry to ensure that its services and recommendations are up-to-date and effective. The development of its in-house AI-based software will allow it to suggest energy saving strategies to its clients, ultimately reducing capex and increasing yield production. It will utilise the latest data analysis tools to collect data and provide its clients with valuable insights into their operations. By analysing this data, the company will identify gaps or areas for improvement and devise appropriate strategies to address them. The company will stay up-to-date with the latest advancements in the agritech sector to ensure that its clients are always one step ahead in the industry.
BUSINESS MODEL – COMPANY HISTORY
Since its inception, XXXX has secured two major clients, providing a stable monthly revenue of €5,000. This consistent income stream underscores the company's capability to deliver valuedriven consulting services in greenhouse operations. One of such contracts is with Greece's most advanced state-of-the-art greenhouse setups. This engagement not only bolsters XXXX's financial stability but also enhances its credibility and portfolio in the CEA landscape. Its achievements to date are:
✓ Yield Optimisation - XXXX has achieved a significant milestone by doubling its clients' yield per square meter by two-fold after providing consultation. This accomplishment is a testament to the company's effective strategies and profound impact on greenhouse productivity.
✓ Quality Enhancement - A glasshouse grower in Kent, UK has experienced significant improvements in their Brix levels and the quality of their crops with the help of XXXX's guidance. This has strengthened their position in the market and increased their profitability.
✓ Pest Pressure Reduction in Greece: XXXX has successfully implemented strategies to address the challenges of pest pressure, particularly in tomato cultivation during the summer season in Greece, which has provided favourable results. These strategies have not only improved crop health and yield but also contributed to sustainable agricultural practices.
✓ The company's achievements and innovative methods have been recognised by prominent industry publications, with HortiDaily showcasing its success in greatly increasing crop yields compared to the previous year. This media recognition further solidifies XXXX's reputation as a leader in the CEA consulting field.
The company's ability to enhance yield, improve crop quality, and mitigate pest challenges stands as a testament to its expertise and commitment to excellence in greenhouse operations consulting. As XXXX continues to grow and evolve, it will be well-positioned to make substantial advancements in controlled environment agriculture.
BUSINESS MODEL – SERVICES
BUSINESS PLAN DEVELOPMENT FOR GREENHOUSE CONSTRUCTION
✓ Overview: Customised business plan creation for clients looking to construct greenhouses
✓ Scope of Services: Market analysis, financial projections, technology recommendations, and sustainability considerations
✓ Fee: £3,000 - £8,000 per business plan, depending on complexity and client requirements
✓ Expected Volumes: 8-16 plans quarterly depending on market demand and client engagement
PROJECT MANAGEMENT SERVICES
✓ Overview: Project management services for greenhouse construction and optimisation projects
✓ Scope of Services: Oversee timelines, budget management, contractor coordination, and quality assurance
✓ Fee: Based on project cost (10-15% of the total project cost) and fixed fee for small projects (£1,500 - £5,000 per project)
✓ Expected Volumes – 3-6 projects annually with varying project size and scope
CONSULTING SERVICES
✓ Overview: Strategic consultancy services to help farm owners increase productivity and optimise performance
✓ Scope of Services: Greenhouse operation optimisation, crop growth strategy, and pest management
✓ Fee: £100 - £200 per hour / £2,000 - £10,000 per project
✓ Expected Volumes: 12-20 projects annually
R&D SERVICES
✓ Overview: R&D services aimed at improving crop performance
✓ Scope of Services: Innovate new agricultural techniques and sustainability solutions
✓ Fee: £5,000 - £20,000 per project
✓ Expected Volumes: 3-5 projects annually
CONSULTING SOFTWARE
✓ Overview: Develop an AI-backed consulting software
✓ Scope of Services: Analyse crop conditions and suggest appropriate data-driven strategies to maximize crop yields
✓ Subscription Fee: €6,000 per annum
✓ Expected Volumes: 8-25 projects annually
BUSINESS MODEL – SERVICES
TRAINING AND WORKSHOPS
✓ Overview: Organise and attend training workshops to educate people
✓ Scope of Services: Educational workshops and online training to help optimise crop growth
✓ Fee: £50 - £150 per workshop participant / £20 - £100 per month for online modules
✓ Expected Volumes: 5-10 workshops annually / 50-200 online subscribers
PARTNERSHIP AND COLLABORATION FEE
✓ Overview: Search for viable investment opportunities for agricultural investors and facilitate connections
✓ Scope of Services: Collaborative projects and joint ventures
✓ Fee: Variable (depends on the type of project)
✓ Expected Volumes: Dependent on partnerships
PRODUCT SALES
✓ Overview: Collaborate with equipment, tools, and materials manufacturers to promote their products
✓ Scope of Services: Sale of equipment, tools and materials
✓ Fee: Variable (depends on the type of project)
✓ Expected Volumes: Dependent on collaborations
TECHNICAL SUPPORT FOR COMPLIANCE
✓ Overview: Audit preparation, compliance consulting and pesticide residue analysis and consulting services
✓ Scope of Services: Assist clients in preparing for various certifications and audits, such as BRCGS, Red Tractor, Global GAP, IFS, ISO standards, GMP, GACP, and supermarket-specific requirements and provide services to ensure compliance with legal limits for pesticide residues in produce
✓ Fee: Fixed fee of £2,000 - £7,000 per audit depending on complexity and certification type and ongoing compliance consulting at £100 - £200 per hour or retainer-based arrangements for regular compliance monitoring and advice
✓ Expected Volumes: 12-20 clients annually
BUSINESS MODEL – THE ENTITY
COMPANY NAME: XXXX Ltd
DATE OF INCORPORATION:
Company Overview: An independent agricultural consulting company helping clients throughout each phase of their transition to controlled environment agriculture, while continuing to assist them with daily operational aspects
FOUNDER: Mr. XXXX
FOCUS: Provide comprehensive CEA consulting services to help farmers and agricultural investors transition successfully to smarter and more resilient agriculture. e
BUSINESS LOCATION: London, the UK
GEOGRAPHICAL FOCUS: The company is presently focusing on farmers and agricultural investors in Europe and intends to broaden its business presence globally, beginning with China and the USA.
FUTURE EXPANSION PLAN: Add new services to its portfolio of offerings, enhance the scope of existing ones to provide more value to its clients, and explore additional revenue streams like online courses, eBooks, or toolkits related to CEA
INVESTORS’ FUNDS: £350,000
TARGET CUSTOMERS: Greenhouse operators (growers and owners), investors in agricultural technology and greenhouses, horticulture start-ups and innovators, and government and non-government organisations,
COMPETITORS: Delphy, Cultivators, Fast LLP, Agritecture, and Iconshare
CORE STRENGTHS: Already established business presence, experienced founder and team, strategic R&D initiatives, a series of key achievements demonstrated through visible impacts, innovative approach, a diverse range of services, strong industry connections, reputable brand, commitment to sustainability, and adaptability
OVERALL OBJECTIVE: Provide valuable suggestions to existing farmland and farmers to increase their productivity and improve their operational efficiencies and identify and evaluate profitable investment opportunities for agricultural investors, assisting them in directing their funds towards high-return projects.
CLIENT BENEFITS: The investors will be better equipped to choose from various investment options based on the comprehensive business plans and feasibility reports prepared by the company's professionals. Existing farmers will also benefit from improvements in crop productivity and quality.
BUSINESS MODEL – OPERATIONAL PLAN
SOFTWARE
DEVELOPMENT AND INTEGRATION – The software is meticulously designed to gather and analyse diverse agricultural data points, including greenhouse conditions, plant health, and resource utilisation. The consultants at the company will focus on converting these data points into actionable insights for each client, enabling targeted crop optimisation and pest management strategies.
XXXX Ltd’s operational plan centres on delivering exceptional consulting services through its advanced, customdeveloped software. This plan includes:
CONSULTING
PROCESS
ENHANCEMENT
– Consultants from XXXX Ltd will utilise this software output to provide bespoke advice to each grower. This includes visits to the farms for data collection and regular interactions to adjust strategies based on real-time data. The software will also ensure that the liquid solution of the recipes for plant nutrition is well balanced.
PRICING AND SUBSCRIPTION MODEL DEVELOPMENT
- The proposed subscription model, with a base fee of €6,000 yearly, is structured to offer comprehensive consulting services supplemented by the software's insights. This pricing strategy is subject to adjustments postlaunch to accommodate early adopters and market responses.
COST AND ROI OF SOFTWARE DEVELOPMENT
- The anticipated investment for software development is around €60,000. This cost is justified by a detailed return on investment analysis, factoring in the enhanced efficiency and value added to its consulting services.
BUSINESS MODEL – DISTRIBUTION CHANNELS
DIRECT SALES AND CONSULTING:
✓ Approach directly to the greenhouse operators and investors to market its consulting services
✓ Generate referral business by encouraging existing clients to refer potential leads from their network
ONLINE PLATFORMS AND DIGITAL MARKETING:
✓ Establish a robust and user-friendly website listing services offered by the company
✓ Create a social media presence to reach a broader audience
✓ Organise and host webinars and online workshops to share informational content to attract potential customers
INDUSTRY CONFERENCES AND TRADE SHOWS:
✓ Participate in agricultural, investment, and technology events and conferences to network and find potential clients
✓ Run presentation videos and set up booths at these events to showcase XXXX's expertise and services PARTNERSHIPS:
✓ Collaborate with IoT companies and other agricultural technology providers and establish referral agreements or joint marketing initiatives with them
NETWORKING WITH AGRICULTURAL AND INVESTMENT COMMUNITIES:
✓
BUSINESS MODEL – STRATEGIC SUPPLIERS
LET'S GROW
Let’s Grow, a data analysis firm, contributes significantly to XXXX’s operations, particularly in climate control and yield forecasting, offering data-driven insights for informed agricultural decision-making.
GREENHOUSE CONSTRUCTORS
XXXX engages with various constructors for the provision of turnkey greenhouse construction services. This ensures the delivery of comprehensive and high-quality infrastructure for agricultural projects.
EXTERNAL CONSULTANTS
XXXX relies on external consultants for detailed financial planning and investment analysis. They are responsible for preparing business plans, financial models, and cost breakdowns specifically tailored for greenhouse investments.
ARANET
XXXX collaborates with Aranet to incorporate IoT technology into greenhouse climate control. The goal of this collaboration is to improve the growing conditions and increase overall efficiency.
AGNETIX
XXXX collaborates with Agnetix, a company that produces high-performance LED lighting systems for greenhouses, to help its customers achieve the best possible crop yields.
BIOBEST
Biobest plays a crucial role in the field of Integrated Pest Management (IPM) and crop protection, providing environmentally friendly solutions using natural predators, in line with sustainable agricultural practices.
VAN IPEREN/ AGK
XXX
BUSINESS MODEL – TECHNOLOGY PARTNERSHIPS
XXXX Ltd’s technological edge is further solidified through strategic partnerships:
CURRENT TECHNOLOGY COLLABORATIONS
The company has already entered into agreements with Agnetix for advanced LED lighting and AranetIoT for climate monitoring. These partnerships are integral to the software’s capabilities in offering intelligent, data-driven agricultural strategies.
AI AND AND MACHINE LEARNING
APPLICATIONS
The software will integrate artificial intelligence and machine learning to minimise the reliance on a large consultancy workforce and offer timely, automated advice for critical issues such as pest outbreaks and labour management.
COLLABORATION WITH BREEDING COMPANIES
The company's partnership with leading breeding companies aims to introduce new, climate-resilient plant varieties, providing its clients with access to the latest agricultural innovation.
ECO-FRIENDLY PEST MANAGEMENT SOLUTIONS
In collaboration with an Integrated Pest Management company, XXXX aims to provide sustainable pest control solutions. The company emphasizes the use of natural predators over chemical treatments, aligning with its commitment to environmentally responsible farming practices.
BUSINESS MODEL – TARGET CUSTOMERS
GREENHOUSE
OPERATORS-GROWERS AND OWNERS
✓ Focus on those looking to optimise their yield and efficiency
✓ Medium to large-scale operations that can benefit significantly from yield improvement and cost reductions
✓ Includes both experienced operators seeking advanced solutions and new entrants in need of thorough guidance
INVESTORS IN AGRICULTURAL TECHNOLOGY AND GREENHOUSES
✓ Individual investors or investment firms looking for high ROI opportunities in agriculture, particularly in greenhouses
✓ Investors seeking detailed business plans and risk assessments for greenhouse investments
✓ Investors who value the use of IoT/AI and advanced technology to monitor and enhance greenhouse conditions and productivity
HORTICULTURE STARTUPS AND INNOVATORS
GOVERNMENT AND NON-GOVERNMENTAL ORGANISATIONS
✓ Companies or entrepreneurs exploring new technologies and methods in greenhouse farming
✓ Businesses interested in partnerships or consulting services that can help them implement and manage advanced agricultural technologies
✓ Government and non-governmental organisations focused on agricultural development and innovation, especially those supporting sustainable and efficient farming practices
BUSINESS MODEL – COMPANY OWNERSHIP
XXXX is currently being managed by the founder and CEO, Mr. XXXX, an experienced professional with over eleven years of expertise in the field of agriculture, particularly as a grower. He is responsible for the overall working and management of the company. His background and network in the farming industry inspired him to conceive the concept of establishing an agricultural consultancy business. His main responsibility is to offer consulting services in two key business areas. He is supported by a team consisting of one data analyst and two specialised growers. Their main focus is on developing and implementing strategic crop strategies. Other responsibilities of the founder include:
✓ Developing procedures and techniques for solving agricultural problems
✓ Arrangement of funds for business development and operations management
✓ Taking strategic business decisions concerning the expansion of the business to other countries
✓ Entering into long-term agreements with technology providers, agricultural tools and equipment suppliers and greenhouse construction companies
✓ Drafting budgets concerning marketing, human resources, and business development
✓ Cultivating a comfortable and productive working environment
✓ Any merger, consolidation, or sale of substantially all of the company’s assets
✓ Any other significant corporate transaction
The company further intends to hire experienced and highly skilled agricultural specialists to manage the day-to-day operations and assist the founder in conducting business operations smoothly. The aim is to recruit professionals who have a track record of success in developing and implementing customised solutions to improve crop yield and quality for clients. These employees will play a crucial role in providing consultancy services across different areas to clients, allowing them to access all services in one place. They will collaborate closely with clients to understand their specific needs and create tailored recommendations to address their challenges. The team will be structured to include technical experts, financial consultants, data analysts, greenhouse technology consultants, and software developers, who will work together to ensure seamless delivery of consulting services.
The employees will be an integral part of business operations and regular training will be provided to them to ensure they remain up-to-date with the latest industry trends and technologies. The company will prioritise retaining top talent by offering a supportive work environment, opportunities for career advancement, and recognition for exceptional performance. The founder will continually look to refresh and revise the workforce strategy to ensure that the workforce profile is aligned with growth and changes in business activities. The detailed personnel plan has been outlined in the organisational structure section of the business plan.
BUSINESS MODEL – OPERATIONAL STRATEGIES
XXXX will be perfectly positioned to capture a significant share in the agricultural consultancy industry through the founder’s experience and expertise, professional team, proven policies and procedures, clear lines of communication, use of latest technology solutions, compliant strategies, and ability to utilise state-of-the-art technology and digital & offline marketing expertise. Listening to and resolving the issues being faced by its clients will continue to be the central element of the company’s strategy. The company will invest in its people and infrastructure to be able to execute multiple projects in different segments effectively. The research, knowledge translation, and innovation will lead and drive better project outcomes for the company. Other business development strategies are outlined as follows:
✓ Emphasise the unique combination of IoT integration, expert consulting, and comprehensive financial modelling.
✓ Use content marketing and educational resources to inform potential clients about the benefits of XXXX's services and technology.
✓ Offer tailored consulting packages for different scales of operations, from small indoor farms to large-scale greenhouses.
✓ Keep abreast of and integrate the latest technologies in CEA like AI, IoT, and automation in consultancy services.
✓ Allocate sufficient resources to research and development for pioneering new CEA methods and technologies.
✓ Host workshops and webinars to educate potential clients about the benefits of CEA and the company’s services.
✓ Develop long-term consultancy contracts with clients for ongoing support and optimisation.
✓ Streamline internal processes with software tools for project management and customer relationship management (CRM).
✓ Collaborate with greenhouse manufacturers, technology providers, and academic institutions for mutual benefits.
✓ Emphasise eco-friendly and sustainable approaches while providing consulting services.
✓ Participate in community projects or provide pro bono consulting for educational or non-profit urban farming initiatives.
✓ Regularly assess and mitigate risks related to technology, market changes, and client dependencies.
✓ Implement strict quality control measures to maintain high standards.
✓ Keep tight control on expenses, especially in areas like travel and technology investments.
✓ Stay informed about industry trends, market needs, and customer feedback to adapt services accordingly.
✓ Establish mechanisms to regularly gather and analyse client feedback for service improvement.
BUSINESS MODEL – KEY SUCCESS FACTORS
PROFESSIONAL AND EXPERIENCED STAFF:
The company is currently been managed by a well-rounded and professional team of experienced founder, data analysts, and specialised growers with great character and experience in the agriculture industry. To expand the business reach further, the founder will develop core teams in charge of different divisions, named business plans preparation, financial consulting, project management, and research and development among others. Aside from ensuring that the team at the company is flexible and fast, can provide expert advice to businesses, and can work on short deadlines, the founder will make sure that they are regularly trained with respect to the latest developments in the industry. The new team members will also receive training from existing employees, who have been working with the company since its inception. These carefully picked professionals will take care of the business, allowing the founder to focus his efforts on client acquisition and strategic business expansion activities. It will help the company to remain competitive among other players in the market. The professionals will consistently provide exceptional services, always be available and responsive to the changing customer requirements and maintain the company’s integrity by staying true to the morals and values of XXXX.
EXTENSIVE MARKETING STRATEGIES:
XXXX will leverage media relations, social media, and other online and offline advertising strategies as marketing tools to target its potential customer base. It will also invest in becoming a thought leader in its segment, and this will allow it to be discovered by prospective farmers and agricultural investors across the targeted geography. The founder and team will also leverage their personal network and participate in agricultural and technology events and conferences to build a network across agricultural tools, equipment, and technology suppliers, and create a strong brand presence among farmers and investors. Additionally, the team will also utilise local print media, and digital media channels to make farmers aware of the benefits of the benefits associated with transitioning to controlled environment agriculture techniques.
BUSINESS MODEL – KEY SUCCESS FACTORS
STRATEGIC LOCATION:
The founder has decided initially to serve farmers and investors in European countries. The share of the EU’s agricultural land under organic farming increased from 5.9% in 2012 to 9.9% in 2021 as a result of an increasing demand for organic products and policy support. To meet the target, the pace will need to almost double in the remaining years up to 2030. Although the policies currently in place are expected to increase the share of organic farming, this will not be enough to meet the target. In this case, the only option left to the farmers is to adopt smart farming or controlled environment agriculture (CEA), which has the potential to increase productivity with limited resources. This is the reason that most of the farms in Europe are moving from traditional to smart farming techniques. Having a look at the future potential, it has been estimated that the European smart agriculture market is expected to reach €9 billion by 2030, growing at a CAGR of 12.02% from 2022 to 2030. Europe is also expected to be the second-largest smart agricultural market after North America. In light of these facts, Europe is considered one of the regions with significant potential for agricultural expansion.
ORGANISED BUSINESS OPERATIONS:
The company will be organised into distinct divisions based on the service category, and roles/skills of each employee. As each of the departments will focus on their specific areas of work, it will bring specialisation to the company and help it deliver measurable results for its clients. Productivity will also increase as skilled staff will result in increased efficiency. There will also be clear lines of management, thereby establishing accountability. Having multiple divisions will also result in economies of operations thereby reducing the operating expenditure and increasing the overall profitability of the company.
MANAGING COST AND EMPLOYEE BENEFITS:
The ability of the company to quickly adapt to new technology and changing customer requirements is another area that will assist it in staying ahead of the competition. The professionals associated with the company will be well taken care of, and their welfare package will be among the best within agricultural consultancy companies in the industry, meaning that they will be more than willing to build the business with the company and help deliver the set goals and achieve its aims and objectives.
BUSINESS MODEL – MISSION AND VISION
MISSION
Provide actionable and viable solutions to enhance crop productivity and quality, while also conserving clients' time and resources, ultimately contributing to their success in the dynamic agricultural industry
VISION
To be recognised as the leading agriculture consulting business renowned for making a direct and positive impact on clients' goals through its specialised, highquality services and creative, customised long-term solutions
BUSINESS MODEL – OBJECTIVES
SHORT-TERM
▪ Provide practical, innovative, and technologically advanced solutions in greenhouse consulting.
▪ Develop strategies that yield pesticide-free produce, contributing to a healthier planet and populace.
▪ Contribute to achieving food security by utilising knowledge in controlled environment agriculture.
▪ Lead and support sustainable and innovative agricultural practices.
▪ Utilise marketing and business development activities to strengthen its client ties.
▪ Stay at the forefront of greenhouse technology and latest CEA trends and technologies to offer cutting-edge advice.
▪ Advice clients on reducing CAPEX while ensuring alignment with their long-term yield goals.
▪ Position XXXX as a specialised consultant in both hightech and low-tech greenhouses, showcasing expertise in each area.
▪ Increase brand awareness through targeted marketing, thought leadership (e.g., publishing articles, speaking at conferences), and social media presence.
▪ Create a business model that can be easily scaled up as the client base grows and new services are added.
▪ Improve the lifestyle & economic scalability of farmers.
▪ Focus on energy savings with the help of AI software.
MEDIUM-TERM
▪ Expand the client base by 50% and enter two new international markets by 2026, focusing on regions with critical food security challenges.
▪ Continually introduce and implement cutting-edge, sustainable agricultural solutions.
▪ Achieve a client satisfaction rate of >90%, with a focus on delivering food security and pesticide-free solutions.
▪ Foster a knowledgeable and satisfied workforce with less than 10% annual turnover.
▪ Actively involve and empower all employees in a continuous improvement process.
▪ Revolutionise the agriculture industry through innovation.
▪ Achieve a high degree of profitability during the period under projections.
▪ Provide a more hands-on approach to managing the business effectively.
▪ Adopt transparent business practices and operate with social and environmental responsibility.
▪ Continually observe other consultancy businesses operating in the industry and improve upon that.
▪ Build a business that will survive off its own cash flow without the need for injecting finance from external sources.
LONG-TERM
▪ Position XXXX as a leader in yield optimisation and financial planning for greenhouse investments.
▪ Establish XXXX as a leading authority in CEA consulting, with a focus on sustainable and safe food production.
▪ To be the most trusted partner of farmers and investors.
▪ Work alongside clients with a shared ambition to achieve extraordinary results, outperform the competition and redefine the agriculture industry.
▪ Expand the business reach worldwide in a phased manner through virtual consultancy.
▪ Achieve a significant share in the agricultural consultancy industry worldwide.
▪ Promote the company’s culture, good values, and business philosophy.
▪ Serve the interests of its clients, equity investors, and employees in a well-balanced manner.
▪ Explore new products & services, and markets to expand the market reach.
▪ Identify innovative ways of raising revenue through leveraging its existing assets.
▪ Maintain a level of exceptional customer service through a best-in-class team.
BUSINESS MODEL – XXXX
KEY PARTNERS
▪ Investors
▪ Information technology partners
▪ Research institutions
▪ Industry associations
▪ Government and nongovernment organisations
▪ AgriTech businesses
▪ Greenhouse construction companies
▪ Agricultural tools and machinery manufacturers
▪ Greenhouse tools and equipment suppliers
KEY ACTIVITIES
✓ Employ experienced professionals to handle business operations
✓ Conduct research & analysis
✓ Provide agri-tech business advice and consulting services
✓ On-site and remote support
✓ Organise seminars & workshops
✓ Develop and monitor business plans
✓ Track industry trends and develop strategies
✓ Networking and business development
✓ Client relationship management
KEY RESOURCES
✓ Experienced founder and team
✓ Physical infrastructure & technology
✓ Partnerships & collaborations
✓ Marketing tools & materials
✓ Problem-solving abilities
COST STRUCTURE
✓ Research and analysis cost
✓ Marketing and promotional cost
✓ Human resources
✓ Equipment and facility cost
VALUE PROPOSITION
▪ Sustainability
▪ Encourage innovation at each level of the company
▪ Promote transparency and integrity
▪ Expertise and technical guidance
▪ Industry insights and analysis
▪ Cost-effective solutions
▪ Innovative strategies and technologies
▪ Respect and value for local knowledge and innovations
▪ Professional, effective and informed by relevant science
▪ Firm commitment to quality and excellence
▪ Value for the environment and ecosystems
▪ Deliver long-lasting change for farmers, their families, and their environments
CUSTOMER
RELATIONSHIPS
✓ One-to-one consulting
✓ Workshops & seminars
✓ Telephone & email support
✓ Printed materials and online sources
✓ Customised approach
DISTRIBUTION
CHANNELS
✓ Direct sales and consulting
✓ Referrals
✓ Online platforms and digital marketing
✓ Industry conferences and trade shows
✓ Partnerships
✓ Networking with agricultural and investment communities
REVENUE STREAMS
✓ Revenue from consulting and other services
CUSTOMER SEGMENTS
Target Geography
✓ Phase 1 – Europe (starting with Greece, United Kingdom, Netherlands, and Belgium)
✓ Phase 2 – China and USA
Target Demographics
✓ Greenhouse OperatorsGrowers & Owners
✓ Investors in Agricultural Technology and Greenhouses
✓ Horticulture Start-ups and Innovators
✓ Government and NonGovernmental Organisations
✓ Revenue from the sale of products and technology services
BUSINESS MODEL – RISK AND MITIGATION STRATEGIES
RISK MITIGATION STRATEGY
TECHNOLOGY RISKS
COMPETITORS
RISK
▪ Keep pace with rapid advancements in greenhouse technology to maintain a competitive edge.
▪ Adapt to the changes in the agricultural sector that impact the demand for consulting services.
▪ Search for collaboration opportunities with agritech companies to suggest the best technology solutions to its clients.
▪ Attend the agricultural and technology events and conferences to get to know about the latest developments.
▪ Track the performance and strategies of competitors to serve clients better.
▪ Research and development initiatives to keep on innovating new solutions and operational strategies.
▪ Establish efficient customer service to resolve the concerns of clients.
▪ Frame new marketing channels or strategies to stand out from the competitors.
LEGAL RISKS
▪ Purchase general liability insurance to cover legal fees or settlement claims.
▪ Purchase professional liability insurance to gain protection against mistakes or inaccurate information.
▪ Enter written contracts with clients and read the contract conditions carefully before signing the same to avoid any legal consequences.
▪ Seek the advice of professional legal consultants when required.
▪ Implement a culture of compliance within the organisation.
▪ Keep up with new legislations and plan how the company will comply with these and how it will affect business operations.
EMPLOYEE
RISKS
SERVICE QUALITY
▪ Develop and practice good skills among employees.
▪ Provide adequate training to employees by formalising programmes that may help improve performance.
▪ Remain updated with the latest changes in laws and regulations concerning employees to avoid violations of compensation and benefits laws.
▪ Employ a sufficient number of people who are familiar with agricultural operations, smart farming techniques, and advanced technology solutions.
▪ Foster a reporting culture across multiple divisions to their respective heads.
▪ Improve wages, benefits, and working conditions to attract and retain “better”, more qualified staff.
▪ Formulate a detailed procedural plan after discussing requirements with each client.
▪ Involve clients during each important decision-making aspect to ensure that they are aware of the strategies being implemented.
▪ Maintain valid, reliable, and timely data about the consultancy provided.
▪ Regular monitoring of crops to evaluate the effectiveness of suggested strategies.
▪ Gather feedback from the farm owners at regular intervals to ensure that the efforts are aligned with their goals.
BUSINESS MODEL – RISK AND MITIGATION STRATEGIES
RISK MITIGATION STRATEGY
FINANCIAL RISKS
CLIENT RISKS
▪ Monitor financial ratios and compare the same with benchmarks at reasonable intervals.
▪ Establish a proper record-keeping mechanism.
▪ Control key expenses by considering alternative options.
▪ Conduct a trend analysis to assess changes in profit over different years.
▪ Develop a strategic operational plan to control the expenditure by following pre-set procedures.
▪ Make optimum utilisation of available resources to gain maximum profitability.
▪ Purchase insurance policies to mitigate the risk.
▪ Evaluate the business operations at regular intervals to reduce excessive costs.
▪ Focus on exceeding the expectations of the clients by providing the highest quality professional services.
▪ Fair and transparent pricing mechanism.
▪ Focus on exceeding the expectations of the clients by continually innovating service processes and approaches to optimise their operations and save cost.
▪ Keep the clients updated with the process to keep them engaged and incorporate suggestions if any from their side.
▪ Gather feedback from the clients at regular intervals to ensure that the efforts are aligned with their expectations.
▪ Maintain a full record of all provided services, actions, and interactions, including online correspondence and e-services so that there is no future misunderstanding between the clients and the company.
▪ Treat client information with utmost discretion and confidentiality.
▪ Customisation will create a better customer experience.
▪ Set clear expectations and put them in writing (including the scope of the work and time to completion) after onboarding each new client.
▪ Respond swiftly to the client’s complaints and issues.
REPUTATION
▪ Have the core values rooted in the business model.
▪ Inform clients and employees about company incidents and how the company responds to them.
▪ Create an environment where every client is treated with dignity, care, respect, fairness, responsibility, and honesty.
▪ Establish a positive culture regarding compliance with laws, regulations, and internal policies.
▪ Strong corporate values that are supported by appropriate performance incentives.
▪ Continuous monitoring of comments on social media and other digital channels.
EMPLOYEE
MARKET ANALYSIS
Analysis of the controlled environment agriculture (CEA) industry worldwide including the characteristics of CEA growers and barriers to implementing agricultural technology
MARKET ANALYSIS – CEA GROWERS DEMOGRAPHICS
AN AGRICULTURE COMPANY OPERATES HOW MANY FARMS
TYPE OF CEA FACILITY GROWERS GENERALLY USE FOR CULTIVATION
1 Farm Multiple farms in the same metropolitan area Multiple farms in the same country Farms in multiple countries
PRIMARY GROWING METHOD USED BY CEA OPEATORS
30% of growers are considering berries as a new crop in the next 12 months followed by mushrooms with 22% of growers
35% of companies operating in the CEA sector have generally 1 – 3 employees including owners
41% of founders had no experience in agriculture before starting the company
MARKET ANALYSIS – CEA GROWERS
WHAT TYPE OF CROPS ARE BEING GROWN BY GROWERS?
Salad greens (Lettuce, salad mix, spring mix, arugula, etc.)
Squashes or gourds (Zucchini, pumpkin, etc.)
Herbs (Cut or live: mint, oregano, rosemary, etc.)
Root vegetables (Carrots, radishes, beets, kohlrabi, etc.)
Microgreens Other leafy greens (Chard, kale, cabbage, etc.)
Melons (Cantaloupe, watermelon, etc.)
Cannabis Ornamental plants
Nursery starts
Tree fruits (Apples, pears, peaches, nectarines, etc.)
Vine vegetables (Tomatoes, cucumbers, peppers, etc.)
Berries (Strawberries, raspberries, etc.)
Mushrooms
Broccoli or cauliflowers
Root starch vegetables (Potatoes, yams, etc.)
Tree nuts (Almonds, pistachios, walnuts, etc.)
MARKET ANALYSIS – CEA GROWERS DEMOGRAPHICS
AREAS WHERE GROWERS BELIEVE THEIR BUSINESSES CAN DO BETTER WHEN IT COMES TO SUSTAINABILITY
81% of growers are planning to increase their production area in the next 12 months
58% % of growers who pursue funding to start their operations
HOW OFTEN CUSTOMERS INQUIRE GROWERS ABOUT THEIR PRACTICES RELATED TO SUSTAINABILITY?
Only about 35% of businesses have a specific sustainability-focused role appointed
70% of businesses in the CEA industry agree that the CEA industry has been susceptible to excessive greenwashing
MARKET ANALYSIS – GLOBAL AGRI-FOOD SYSTEM
GLOBAL AGRI-FOOD SYSTEM: The global agri-food system is critical to supporting human life and yet as a system, is inefficient, inequitable, and causing inordinate strain on the planet.
The €9 trillion global food industry currently feeds a population of 8 billion people. These figures are expected to rise by 2050: the UN predicts that, compared to 2010 levels, there will be a 60% increase in overall food demand and a 73% increase in animal protein demand, with the expected global population rising above 9 billion.
PRESENT STATE: Existing food production practices account for a third of global greenhouse gas emissions, 70% of freshwater usage, and 80% of deforestation worldwide. Geopolitical instability, protectionist government policies, and unpredictable weather events have also fueled a global food crisis, with food price inflation threatening global food security. The need to invest in a resilient food system is also part of the climate change solution.
ROLE OF CONTROLLED ENVIRONMENT
AGRICULTURE: The amount of XXXX accessible for farming is decreasing while the world’s population is increasing. If traditional agriculture is not practical, CEA enables the growing of crops. Consumers are placing a greater emphasis on organic and non-GMO products, and CEA offers a way to produce crops without the use of pesticides and herbicides, which is crucial for the global agri-food system.
KEY CHALLENGES AND DYNAMICS OF THE AGRICULTURE ECOSYSTEM
ALTERNATIVE FARMING SYSTEMS (CEA)
MECHANISATION & AUTOMATION REGENERATIVE FARMING
Unsustainable farming practices are one of the main contributors to the climate crisis – they account for a third of greenhouse gas emissions and 70% of the usage of the world’s freshwater
MARKET ANALYSIS – CONTROLLED ENVIRONMENT AGRICULTURE
CONTROLLED ENVIRONMENT AGRICULTURE MARKET: The technology-based method of controlled environment agriculture (CEA) is used to increase agricultural productivity. Throughout the crop’s development, CEA aims to safeguard the crop from the weather and provide the perfect conditions for growth, i.e., fast and responsive, inside a covered growing space, such as a greenhouse. The formation of entirely controlled environments for plant growth is known as CEA.
MARKET SIZE: The controlled environment agriculture market size is forecast to be worth around €392.28 billion by 2032 as compared to €77.4 billion in 2022, growing at a CAGR of 18.13% during the forecast period from 2022 to 2032. Due to the rising demand for fresh and healthful food, particularly in urban areas, as well as the requirement for crop production throughout the year, the worldwide CEA market is anticipated to expand significantly.
GLOBAL CONTROLLED ENVIRONMENT AGRICULTURE MARKET (IN BILLIONS)
REGIONAL ANALYSIS: In 2022, the Controlled Environment Agriculture Market in Europe, which represented 27% of the global market, had the largest market share. This is because leading organisations like SP ZO Co. and Fresh Box provide a large range of cutting-edge approaches for CEA farming. The largest market growth is expected in North America and Asia-Pacific Owing to their growing populations and urbanisation. They will invest in these markets to maintain the correct supply and demand for food products for their regions.
PRODUCT SEGMENTATION: Tomato is the leading segment in this market and accounts for the highest revenue globally; captured 45% of revenue by 2022 and anticipates further growth over the forecast period. Tomatoes have many uses worldwide, from food processing to exports. Strawberries also account for a substantial share of this segment due to their high demand in Western countries as well as consistent global expansion plans.
Hydroponics is anticipated to continue to lead the global controlled environment agriculture market among all growth methods, largely as a result of customers’ growing knowledge of the negative effects that pesticides have on plants and the growing demand for increased tastes and sustainability in diverse fruits and vegetables.
MARKET
OVERVIEW: Controlled Environment Agriculture (CEA) has the potential to localise food supply and ensure food security for a growing population, however reaching cost parity with outdoor farming is key to scale.
PRESENT SITUATION: Two major growing systems dominate the CEA space, namely greenhouses and vertical farms. While greenhouses have been around for multiple decades, more high-tech greenhouses and vertical farms have emerged since the early 2000s. End consumers, retailers, and value chain dynamics are driving the uptake of high-tech controlled food production. However, high production costs, nascent technology, and limitation of product varieties are hampering the scalability of CEA today. Eventually, reaching cost parity with outdoor-grown produce will be imperative for CEA to scale.
INVESTMENT
IN THE INDUSTRY: Despite challenging economics, investor enthusiasm is strong. Total investments in CEA across North America, Europe, and the UK had reached €6.36 billion as of June 2023, of which 65% went into vertical farms. While investments have been largely led by financial investors, interest also arises from retailers, traditional growers, and food service providers. With a growing population and limited resources, uptake of CEA seems inevitable to ensure food security.
€6.36 BILLION
Investment in controlled environment agriculture (CEA) across North America, Europe, and UK as of June 2023
COMPARISON OF KEY PERFORMANCE INDICATORS OF CEA VS OUTDOOR-GROWN PRODUCE, 2022
Leafy greens (Vertical farm)
Peppers (High-tech greenhouse) Strawberries (Vertical farm)
Crops grown using Controlled Environment Agriculture need up to 95% less water than traditional crops because none is wasted
MARKET ANALYSIS – FUTURE OF CEA
CROPS AND PLANTS WITH THE POTENTIAL TO BE GROWN AT SCALE IN VERTICAL FARMING SYSTEMS
CURRENT POTENTIAL FOR FUTURE
Herbs Berries and soft fruits
Leafy greens
Bioenergy crops
Microgreens Brassicas (to be transplanted)
Mushrooms Cucumbers Pulses
Rice (CEA varieties being developed in China)
Root vegetables (including potatoes)
Spice crops (e.g. saffron, vanilla, chillies)
Tomatoes
Tree saplings (to be transplanted)
High-value crops for pharmaceuticals, nutraceuticals, cosmetics, fragrances, food flavouring, and colouring
Know-how
KEY BARRIERS TO UPTAKE CEA PRODUCTION IN RURAL AREAS
• Lack of operational expertise in running CEA systems, both amongst outdoor producers and in terms of the accessible labour pool.
• Lack of market knowledge, as new entrants may have difficulty matching produce that they are able to grow to markets.
• Lack of successful examples. Rural outdoor producers often want to see examples of peers running a viable business before getting involved, and these examples are hard to come by in such a new industry.
• Knowledge and technology transfer between regions/countries could improve overall uptake in Europe.
Supply chain
• Supply chains are in early development, with many CEA systems marketing directly to clients/consumers rather than to merchants, cooperatives or retailers.
• Associated transport costs and emissions. Farms need to be in the right place to access retail hubs, ideally near key roads and rail links. Although this is less of a problem in smaller, densely populated countries
Funding
• Funding/subsidies for energy use: contrarily to other industries there is no funding for energy use by farmers and the horticulture sector in particular North-West Europe.
• High capital investment needed (e.g. to build a facility, buy land, etc) can be a considerable barrier to new entrants.
MARKET ANALYSIS – FUTURE OF CEA IN EUROPE
WHY CONTROLLED ENVIRONMENT AGRICULTURE IS IMPORTANT FOR EUROPE:
#1:LIMITEDARABLELAND:
✓ According to the World Bank, the EU’s percentage of arable land has been consistently dropping since 1960. At present, less than 25% of the region’s land area is arable. This problem is heightened in Central Europe, with countries like Croatia, Estonia, and Slovenia having less than 15% arable land. Given the challenge of limited space and land that is suitable for growing crops, companies and cities are turning to CEA.
#2:FOODSAFETY:
✓ According to the World Health Organisation’s Regional Office for Europe, “every minute, 44 people – more than 23 million per year – fall sick from eating contaminated food, and an estimated 4,700 per year lose their lives” in the region.
✓ Food safety is a huge contributor to the shift toward CEA-grown produce. In taking a technology-based approach to food production, crops grown have fewer external factors impacting their cleanliness and safety. For example, there is no need for pesticides; crops are unaffected by an increasingly unpredictable climate; and there are no physical or microbial hazards from water use or herbicides.
#3:UNFAVOURABLEWEATHER:
✓ According to the European Environment Agency’s report, “changes in temperature and precipitation as well as weather and climate extremes,” caused by climate change, “are already influencing crop yields and livestock productivity in Europe. It also affects the availability of water needed for irrigation, livestock watering practices, processing of agricultural products, and transport and storage conditions.” Climate change is projected to reduce crop productivity, especially in parts of southern Europe, and to increase the number of extreme events negatively affecting agriculture.
✓ As a result of these challenges, the EU is turning to the CEA. The Commission has included efficient irrigation, precision farming, and sustainable food production in greenhouses in its climate adaptation strategy.
#4:AGRICULTUREINDEPENDENCE:
✓ Controlled Environment Agriculture (CEA) can make the whole of Europe agriculturally independent, as the Netherlands which is a pioneer in CEA makes far more food than it can eat, all because of its specialised greenhouses. In total, the country contains 36 square miles of greenhouses, and they use 1.1 gallons of water per pound of tomatoes produced, in contrast to the 25.6-gallon global average.
<25%
Less than 25% of Europe’s land area is arable
23 MILLION Every year 23 million Europeans fall sick from eating contaminated food
HIGH
IMPORT
North-West Europe currently imports significant quantities of fresh produce 75% 75% of carbon farming policies in the EU are strategies and plans
MARKET ANALYSIS – BARRIERS TO ADOPTION OF TECHNOLOGY
OVERVIEW: Agriculture technology (agtech) has an adoption challenge. With recent increases in on-farm profitability and strong investments over the last decade, there is a high openness to innovation, yet adoption is slow. Current macroeconomic conditions, consumer focus on sustainability, regulations, and changing business models could further drive farmers’ adoption of agtech products, if their concerns are addressed.
AGRICULTURE, FOOD, AND BEVERAGE INDUSTRY'S NEW TECHNOLOGY ADOPTION
BARRIERS: According to a survey conducted by Statista, skills gaps in the local labour market and the inability to attract specialise talent were perceived as the main barriers to the adoption of new technologies in the agriculture, food, and beverage industry worldwide. Skills gaps among the organisation's leadership followed, being cited by almost 47.1% of the respondents as a barrier to new technology adoption in the industry.
REGIONAL
ANALYSIS: European and North American farmers lead global agtech adoption, with about 61% currently using or planning to adopt one agtech product in the next two years. North American farmers cite high costs (52%) and unclear ROI (4%) as their biggest challenges to adopting farmmanagement systems. Farmers in Europe, while also most concerned about high costs (48%), report complexities in setup and use as an additional major barrier to adoption (32%). Farmers in South America (50%) follow in agtech adoption, with differences in adoption observed between countries within each region. South American farmers are the most apprehensive about trust in the purchasing process through online platforms (33%). Agtech product adoption is lowest in Asia, with only about 9% of farmers using or planning to use at least one agtech product; adoption varies between countries in this region as well.
WAY
FORWARD:
Though agtech adoption is slow, farmers are open to innovation. There is a transition toward more sustainable, less resource-intensive food systems, with precision agriculture as a key enabler. Shifting pressures are leading farmers to be more open to agtech innovations as potential tools to optimise their returns and minimise their financial risk. 39% of farmers surveyed globally are currently using or planning to use at least one agtech product in the next two years. To improve their bottom lines, 43% of farmers worldwide are focused on trying new products to increase yield.
PERCEIVED BARRIERS TO THE ADOPTION OF NEW TECHNOLOGIES IN THE AGRICULTURE, FOOD, AND BEVERAGE INDUSTRY WORLDWIDE
Inability to attract specialised talent
Skills gaps among organisational's leadership
Lack of flexibility in hiring and firing
Insufficient understanding of opportunities
Lack of flexibility of the regulatory environment
Shortage of investment capital
Lack of interest among leadership
MARKET ANALYSIS – FARMING IN EUROPE
DISTRIBUTION OF EU FARM MANAGERS BY AGE CLASS AND TYPE OF FARM
9.1 MILLION
Number of farms across the European Union 10.7%
Agriculture accounted for 10.7% of the EU’s greenhouse gas emissions (GHG) in 2021
<5 HECTARES
FAMILY FARMING IN THE EU (% SHARES OF EU TOTALS)
Almost two-thirds of the EU’s farms are less than 5 hectares in size
Decrease in farms in the EU between 2010 and 2020 and the vast majority of the decrease is in farms smaller than 5 hectares
MARKET ANALYSIS – COMMERCIAL
GLOBAL COMMERCIAL GREENHOUSE MARKET: The global commercial greenhouse market size accounted for €29.12 billion in 2022 and is expected to reach €71.2 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2032.
GROWTH DRIVERS: Rapid urbanisation and a lack of arable land are driving the growth of the commercial greenhouse industry. The employment of commercial greenhouses in conventional farming has also been encouraged by changing weather patterns, and this trend will spur the market's expansion even further. Additionally, one of the main factors influencing the growth of commercial greenhouses is their ability to produce high yields compared to conventional agricultural methods. Another important aspect is the expanding population, which will increase the need for food. Additionally, the market for commercial greenhouses would benefit from expanding floriculture and decorative horticulture applications as well as rising demand for fruits and vegetables in underdeveloped countries.
COMMERCIAL GREENHOUSE MARKET WORLDWIDE (IN
MARKET ANALYSIS – INVESTMENT IN AGRIFOODTECH
MARKET ANALYSIS –
TOP 10 COUNTRIES WORLDWIDE IN AGRIFOODTECH INVESTMENT BY YEAR (IN BILLIONS)
COMPETITOR ANALYSIS
There is a lack of focus on customised solutions that meet the specific needs of individual clients. XXXX aims to fill this gap in the market and establish itself as the leading provider of customised controlled environment agriculture (CEA)consulting services. The team's extensive knowledge of the European agricultural landscape and its unique challenges will enable them to provide a competitive edge to clients, helping them achieve their productivity and quality goals.
COMPETITIVE LANDSCAPE – COMPETITOR ANALYSIS
DELPHY: Delphy advises growers, conducts practice-oriented research, is a project leader of innovative projects, provides national and international training and develops software for digital cultivation management. In summary: Delphy optimises crop production through knowledge development and knowledge implementation, taking into account location, crop, sustainability and market demand. In this way, Delphy contributes to health, food safety, sustainability and the well-being of the people in this world.
KEY STATISTICS: Other organisation statistics are as follows:
▪ The company is planning to roll out its Delphy Academy to the market so that external participants can also take training along with the company’s employees.
▪ Delphy Academy offers high-quality and practically applicable knowledge through various forms of information sharing, such as cultivation training courses, training courses for crop managers, plant physiology, fertilisation, etc.
▪ The international services of the company focus on supporting growers and investors worldwide in setting up new projects starting from idea to realisation.
▪ The company has developed Quality Management Systems (QMS®) to provide smart solutions for cultivation and business management, which are currently available for various crops such as tomato, cucumber, chrysanthemum, phalaenopsis, rose, fruit growing, strawberry, etc.
▪ The company gains valuable expertise in crop cultivation, mechanization, automation, ICT applications, and remote crop monitoring at its own facilities, in order to provide clients with up-to-date knowledge and insights.
▪ The company has groups organized by industry, location, or nation that analyse the issue and apply their skills individually or in collaboration with a co-worker.
▪ The company is implementing knowledge in all areas of cultivation by advising growers, farmers, and breeders, implementing cultivation concepts, providing customised training, developing turnkey projects and executing these projects.
Founding Year: 1999
Number of Clients: >9,500 in more than 55 countries
Offerings: Advising growers and farmers, implementing cultivation concepts, customised training etc.
Employees: 200 – 500
Categories of Services: Consultancy, training, research, etc.
Target Market:
COMPETITIVE LANDSCAPE – COMPETITOR ANALYSIS
CULTIVATORS: Cultivators is dedicated to expanding licensed cannabis and hydroponic lettuce businesses by providing a variety of services to its partners, ranging from standard to customized options and from one-time assistance to long-term collaborations.
KEY STATISTICS: Other organisation statistics are as follows:
▪ The company has paired up with Innexo, to provide operational excellence training to parties in the cannabis industry. This collaboration offers a unique possibility for European companies to attend hands-on cannabis training and expand their knowledge and experience with the cannabis crop.
▪ The company helps the growers of medicinal cannabis, lettuce, leafy herbs, and other crops by supporting the design, commissioning, and daily operations of their growing facility. It advises the growers from climate change to fertilisation and crop protection via crop consultancy on site and on distance, training and workshops on cultivation, etc.
▪ For horticultural suppliers in cannabis, lettuce, leafy herbs, and other crops, it offers various solutions such as developing cultivation systems, and providing quality and legal compliance advice.
▪ The company is assisting investors in new horticultural projects in cannabis lettuce, leafy greens and other crops by guiding them through the process of a business plan, building a growing facility, and making the right decisions.
▪ The company is also organising strategic sessions on industry insights and developments for various industry stakeholders such as government, research institutions, buyers, and people working on safe and sound ingredients.
▪ The company’s business model is based on the concept of ‘committed consultancy’ where it doesn’t build a greenhouse, just provides consultancy support to businesses.
▪ The services offered by the company include crop consultancy for growers and suppliers, hydroponic lettuce and leafy greens training for growers, suppliers, and investors, strategy and business development in horticulture for growers and suppliers, compliance services for growers and suppliers in cannabis, consortium and project management for research and development, human resource recruitment, management and development programmes, and committed consultancy for horticulture projects worldwide.
Focused on: Licensed cannabis and hydroponic lettuce businesses
Managing Partner: Sonny Moerenhout
Offerings: Crop consultancy, training, strategy and business development, compliance services, project management for R&D, etc.
Target Customers: Growers, suppliers, and investors
Number of Clients: >100
Presence: In 27 countries worldwide
COMPETITIVE LANDSCAPE – COMPETITOR ANALYSIS
KEY STATISTICS: Other organisation statistics are as follows:
FAST LLP: Having been established in 1981 and expanded over the years, Fast LLP is now offering a wide range of services for its members, including independent, unbiased advice and technical support, laboratory analytical services, a variety of training courses, and access to high-quality bio control and biotechnology products.
▪ The company is functioning as a commercial fruit tree supplier, providing products that have been specifically developed and sourced for the horticultural sector.
▪ The company has two centres, one in Kent and one in Herefordshire.
▪ The company is offering membership packages that are tailored to meet each grower’s requirements and which include technical support and advice via email or telephone, regular advisory newsletters, technical manuals and updates, and access to a range of members-only offers, discounts, conferences, trials results, and online services.
▪ The company is also offering laboratory analysis through its Laboratory Analytical services together with agronomy advice and consultancy work which can be office or farm-based.
▪ Every year, the company organizes a conference for growers of soft, top, and stone fruits to present new technologies, products, trial results, and various other topics.
▪ The company is offering advisory services for top fruits, soft fruits, stone fruits, and blueberries.
▪ The company is offering a range of courses about successful fruit growing. These live training courses cover a range of topics and are fully grounded in proven scientific principles so that attendees can develop an in-depth understanding and knowledge of the sector that they can then apply to their own practice.
▪ The company provides a range of high-quality products to FAST LLP members and clients. These products are sourced and developed specifically for the horticulture sector, some of which are unique to FAST LLP.
WEAKNESSES:
▪ At present, the company is rendering only fruit advisory services.
Founding Year: 1981
Offerings: Fruits advisory services and technical support
Membership types: General, agronomy advice, and laboratory analysis
Number of Centres: 2
Target Market: The United Kingdom, South Africa, Denmark, Portugal, and Ireland
Chairman: Tim Biddlecombe
COMPETITIVE LANDSCAPE – COMPETITOR ANALYSIS
AGRITECTURE: Agritecture is an advisory services and technology firm focused on climate-smart agriculture, particularly urban and controlled environment agriculture, working with clients of all types – from entrepreneurs to investors, to technology providers – in more than 40 countries. In recent years, Agritecture’s service offerings have evolved to meet industry needs beyond farm planning and include strategy, due diligence, market research, and more.
KEY STATISTICS:
Other organisation statistics are as follows:
▪ The company’s team consists of a global team of interdisciplinary consultants that rely on an ever-expanding dataset and a proven methodology, having completed more than 150 projects to date.
▪ The company’s services are designed to help potential farmers evaluate the feasibility of their farms, guiding clients through critical decisions to ensure they choose the best solution for their needs.
▪ The company’s digital platform ‘Agritecture Designer Bundle’ for planning urban farms helps in learning key urban farming best practices, avoiding common pitfalls, and driving the project forward. The charges for the platform start from €26 monthly and it has three tier subscription options Lite, Pro, and Advisor.
▪ The company’s urban farming master class includes 2.5+ hours of video learning – broken down into 6 comprehensive lessons – each lesson made up of digestible 5–10-minute modules. It is offering a course for €26 that includes 30 days of access.
▪ The company has over 200+ clients and is operating in 40+ countries and the majority of its clients are in North America, Europe, and the Middle East region.
▪ The company has announced a supply partnership with ZipGrow Inc. The partnership includes ZipGrow’s extensive portfolio of container farms, greenhouse systems, and custom-built ZipFarms, complementing Agritecture’s platform and consulting services.
▪ The company created the Agritecture Partner Network to help the growers identify the best equipment suppliers for their farm and to provide access to fair financing options.
Founding Year: 2011
Founder & CEO: Henry Gordon-Smith
Offerings: Feasibility, farm design, due diligence, industry & market research, local food system planning, etc.
Target Customers: Entrepreneurs, investors, suppliers, cities, corporations, and architects
Clients: 200+
Presence: 40+ countries
COMPETITIVE LANDSCAPE – COMPETITOR ANALYSIS
ICONSHARE: iconshare is an agricultural knowledge company operating in the Southeast Europe area, focused on providing support and consultancy to its customers aiming to optimisation of cultivation processes and techniques, that ultimately improve the quality and productivity of the crops in a sustainable and profitable way.
KEY STATISTICS: Other organisation statistics are as follows:
▪ The company offers high-level services for all major crops (greenhouse and outdoor) and production chains (in every stage of the production process) in Greece and other countries of Southeast Europe.
▪ Under its consulting services division, the company is offering farm consulting, wine consulting, and hydroponics consulting.
▪ The company’s training courses cover a wide range of crops and disciplines and are classroom, laboratory and fieldbased. All of its courses are backed up by technical experts and can be tailored to meet individual needs. It offers courses for anyone from single delegates to seminars and conferences for up to 150 people.
▪ The company is able to perform feasibility and technical studies for investments in greenhouses and provide fertigation recipes for hydroponic cultivations by using expertise and specialised software.
▪ The company offers both on-farm agronomy services, as well as provide full-farm consultancy packages. Farm consultancy packages are tailor-made to suit the uniqueness of the client’s goals and aspirations, the farm operation, and the level of assistance and input required.
▪ The Iconshare’s wine consulting team is comprised of agronomists/vineyard specialists, who have been professionals in the grape-producing market for more than 20 years and enologists with great experience in the wine-making process in several wine-producing regions.
▪ The company is helping investors maximize their investment profitability by creating business plans and conducting feasibility, technical, and marketing studies.
▪ The company is also helping growers with after-field services such as marketing, promotion, and selling channels.
Consulting Services: Farm consulting, wine consulting, and hydroponics consulting
Years of Experience: >25
Offerings: Consulting services, training, turnkey greenhouse projects, farm management, and R&D
Target Customers: Growers, farmers, managers, investors, etc.
After-field Services: Marketing, promotion, and selling channels
Presence: Southeast Europe
COMPETITIVE LANDSCAPE – COMPETITIVE ADVANTAGE
FOCUS ON RESEARCH AND DEVELOPMENT:
Research and development are key to success for a business. XXXX's commitment to Research and Development (R&D) is a cornerstone of its operational strategy. The company is committed to spending sufficient resources on R&D initiatives to innovate crop growth strategies and leverage scientific advancements to provide cutting-edge solutions to its clients. Being at the forefront of innovative technologies will facilitate the company to succeed in today’s highly complex world.
EXPERIENCED TEAM:
The founder of the company has extensive experience in the controlled environment agriculture industry, which enables him to study and analyse individual cases and provide valuable recommendations to enhance the overall efficiency of farms. He possesses decades of hands-on experience in high-tech and low-tech greenhouse operations, day-to-day guidance, and training and mentoring of greenhouse personnel. His proficiency in enhancing greenhouse operations and increasing crop yield is a valuable asset, which will open diverse market opportunities, cater to a wide range of client needs, and set the stage for significant market share expansion. The founder will also hire experienced professionals as technology consultants and data analysts to assist in effectively managing the company's operations. The experienced team and founder will leverage their extensive knowledge, specialised skills, and industry networks in CEA consulting to optimise greenhouse operations and crop yield, ultimately fostering client success and business growth. Effective management of the business will further present opportunities for business expansion beyond Europe.
USE OF THE LATEST TECHNOLOGY SOLUTIONS:
Technology is the engine of modern agriculture. XXXX is committed to employing data-driven farming techniques with the help of IoT and AI to make quick decisions. The company is committed to supporting the usage of cutting-edge, sustainable agriculture practices and solutions among farm owners and investors to help them achieve operational efficiencies and optimise crop growth. This will not only attract clients seeking advanced agricultural technology but also position the company as a trailblazer, making it an attractive proposition for investors interested in pioneering and sustainable ventures.
COMPETITIVE LANDSCAPE – COMPETITIVE ADVANTAGE
STRONG NETWORKS:
The founder, being a pioneer in the CEA industry, has well-established connections within the industry. These connections include partnerships with greenhouse constructors, tools and equipment manufacturers, and technology providers that can be leveraged to capitalise on significant collaborative and strategic opportunities. This network will not only facilitate rapid business expansion but also ensure that the company stays at the forefront of market trends.
ALREADY ESTABLISHED PRESENCE:
XXXX is not a newcomer to the agricultural industry; it has been operating in the European market for over 6 months while being backed by a founder having over 11 years of industry experience. During this time, it has successfully assisted esteemed farmers and growers in optimising yields, enhancing crop quality, and reducing pest pressure. The company has already established authenticity among targeted clients for quality services and focus on transparency. While the company has completed several one-time projects, it has also acquired two regular clients who consistently use its services. The extensive database of projects completed to date will serve as invaluable reference material for acquiring new leads. The statistics indicate that the company has already established a strong presence in the CEA consulting industry, making it well-positioned to achieve the targeted revenue.
DIVERSIFIED RANGE OF SERVICES:
XXXX provides a wide range of agricultural consulting services, including brainstorming ideas to enter into the agricultural space, facilitating initial setup, and optimising operations. While this is beneficial for the clients, who can procure all agriculture-related services under one roof, it is equally beneficial for the company, as it will benefit in the form of multiple revenue streams, reducing its dependence on a single market segment.
COMPETITIVE LANDSCAPE – COMPETITIVE ADVANTAGE
FOCUS ON SUSTAINABILITY: At XXXX, sustainability and eco-friendliness play a vital role in its business. To align with these goals, the consultants at XXXX will orient their strategies to avoid and prevent pest outbreaks and fungal diseases. A crucial aspect of this vision is the climate strategy and the use of biostimulants and microorganisms to improve plant physiology, strengthening cell walls without the need for harmful pesticides or fungicides. Another important aspect is the use of biological predators to control pest pressure, such as aphids and whiteflies, and the application of biological control for Tuta absoluta and thrips. XXXX has 30 years of experience in the environmentally friendly approach to Integrated Pest Management.
FOCUS ON ADVANCED AGRICULTURAL TECHNIQUES: XXXX promotes enclosed loop hydroponic cultivation, a method that uses 50% less water and 90% fewer mineral salts and fertilisers. After the liquid solution is appropriately decontaminated and recirculated, the plants will receive the liquid solution properly. The consultants at XXXX will collect samples of the feeding recipe-liquid solution, and through a partnership that XXXX has established, all the nutrients will be analysed. A new recipe will be generated by the software to provide plants with a well-balanced nutrition and manipulate them in a vegetative or regenerative manner.
USE
OF
CONSULTING SOFTWARE:
The company will utilize advanced AI-powered software to offer consulting services to its clients. The software will analyse the real-time data of crops in greenhouses, including their health, nutritional content, and resource utilization. The consultants will analyse this data to recommend strategies that maximize crop yield while adopting eco-friendly and sustainable practices to produce high-quality crops. These strategies will ultimately enhance crop yield and quality while reducing operational costs and capital expenditure requirements.
COMPETITIVE LANDSCAPE – SWOT ANALYSIS
STRENGTHS
▪ Experienced founder with a wealth of knowledge and expertise in the controlled environment agriculture (both high- and low-tech greenhouses) industry.
▪ Diversified range of service offerings.
▪ Customised solutions to meet the specific needs of each client.
▪ Development of proprietary consulting software.
▪ Strong connections within the industry.
▪ Already established business presence having gained a strong reputation for quality and reliability.
▪ Focus on sustainability that aligns with the growing global trend towards environmentally responsible businesses.
▪ Ability to quickly adapt to new technologies and market trends.
▪ Problem-solving attitude with conceptual and practical thinking.
▪ An aggressive and focused marketing campaign with clear goals and strategies.
▪ Clear and transparent communication within and outside the company.
WEAKNESSES
▪ Lack of financial resources for business expansion.
OPPORTUNITIES
▪ Opportunity to diversify service offerings and expand business reach worldwide, starting initially with regions dominated by the agriculture industry.
WSSWOT
The CEA consultancy industry is growing and evolving, and many new opportunities and threats come with that. The industry can fluctuate depending on the local, national, and international economies, but it remains somewhat consistent due to the increasing preference for local and healthy food options, which encourages farmers to adopt smart farming practices.
▪ Managing costs associated with the use of the latest technology solutions can be challenging initially due to tight margins.
▪ Experienced personnel may hesitate to join a company during its start-up phase.
T▪ Consider collaborating with other agricultural businesses to expand its services and strengthen its credibility in the industry.
O▪ Consumers’ and retailers’ demand for local, lower-cost produce is growing, which is spurring demand for greenhouse and vertical farm-grown produce. Growing investment in greenhouse and vertical farming is further creating demand for consulting services.
▪ Growing urbanisation and improved quality of life due to high-income levels and increased demand for fresh crop produce are driving the adoption of smart farming.
▪ The scarcity of natural resources, such as fresh water and arable land, along with declining crop productivity patterns, is prompting farmers to transition to the agritech industry.
THREATS
▪ Competition from already established players.
▪ Sudden changes in regulations concerning agricultural practices and food safety can create uncertainty and require the need to adapt quickly.
▪ Agricultural industry is price sensitive, and the farmers may not be willing to pay premium prices for consulting services.
MARKETING STRATEGY
A list of marketing strategies to be followed by the company to attract the target customers and grow the business beyond boundaries
MARKET RESEARCH – MARKETING STRATEGIES
INTERACTIVE WEBSITE
Marketing to date has been done primarily through referrals and the internet. While these two components will remain at the core of XXXX’s marketing model, each will be enhanced in a manner that feeds opportunities for the company. In addition to this, the company will develop a robust and user-friendly website listing basic information regarding the services categories, clients associated, contact details, human resources employed, industry collaborations and partnerships, and links to social media pages to inform the clients regarding service additions and changes to business & taxation laws and regulations, which can impact their business performance. The website will increase the volume of visits and place the company in a much stronger position to convert those visits into profitable leads.
ATTEND EVENTS
The team at XXXX will participate in agricultural and technology events, trade shows, conferences, and online forums to build a professional network, generate potential leads, expand its market reach and connect with investors seeking advice on starting new agricultural ventures. The professionals will talk to the business managers and investors and educate them regarding the company’s services and how they can get benefits in terms of increased productivity and crop yield by procuring the services. The company will distribute brochures, use interactive digital technology, and try to capture as many business leads as possible through these events. The company will also get to know about the start-ups that may be going to launch their businesses and mergers or acquisitions happening in the industry through these events. These businesses will then be approached by the company to convert them into profitable leads.
E-MAIL MARKETING
E-mail marketing has proven to be an effective tool among other successful marketing strategies for directly communicating with targeted businesses and clients. Email is the third most influential source of information for B2B audiences. 86% of business professionals prefer to use email when communicating for business purposes. The company will collect the clients’ email addresses through various online and offline channels. It will create monthly newsletters including various sections such as existing and new services, as well as the latest changes in national and international agricultural and food industry laws, which will be distributed to the existing and potential clients in their e-mail. It will create a loyal customer base for the company and generate more valuable leads. In the follow-up email, clients will be encouraged to post detailed reviews of their experience while procuring services from the company.
MARKET RESEARCH – MARKETING STRATEGIES
SOCIAL MEDIA
Social media has become a rage for almost every customer-facing industry these days and the consulting industry is not an exception. It’s among the best marketing strategies because of its personal, budget-friendly, and effective nature. 73% of marketers feel social media has been a valuable marketing tool for their company. With more than 4 billion active social media users worldwide, it is a perfect place to generate valuable leads. On average 43% of small businesses spend 6+ hours per week on social media. When it comes to obtaining a complete view of professional service firms, online video, and social media take precedence over offline touchpoints. Social media channels allow consulting companies to position their employees (consultants) as thought leaders in their industry and connect with present and potential clients on a more personal level. Considering the facts, XXXX will establish a social media presence among its target clients through channels including Facebook, LinkedIn, YouTube, and Twitter. These social media channels will be used to approach potential clients, build a community, and share the latest updates and changes in the agriculture industry. The company will also target potential clients by sharing previous client testimonials and making new service addition announcements through these social media platforms. A detailed strategy to market through social media channels has been outlined as follows:
Facebook: With its 2.93 billion monthly active users, Facebook has pretty much become a hub for all types of businesses. XXXX will reach out to potential clients by posting engaging content on its Facebook page, including the benefits of getting consultation from experienced farming, greenhouse and financial consultants, success stories of past clients who have achieved improved crop yields and quality after getting guidance, an announcement regarding free webinars or live sessions, and updates concerning the addition of new services. XXXX will post once per day to its newsfeed with relevant content (a mix of videos and photos) to keep its present clients informed of the latest changes in the industry and generate valuable leads for the business.
LinkedIn: The LinkedIn audience wants a deeper understanding of consulting businesses, and this drives the appetite for many different types of content. The company will display complete information on its LinkedIn page and use its brand colours to highlight the relevant information to engage more clients to the company. Maintaining a LinkedIn profile will also enable the company to engage with suppliers of agricultural tools and equipment, as well as technology companies, to seek out potential collaboration opportunities.
Twitter: People use Twitter to stay up to date on trending conversations, breaking news, changing business and taxation laws, events, and discussions. Companies that are the most active on Twitter are benefiting from the community on Twitter, representing a very diverse, open-minded, and interested target group that likes to try out new services. The company will share the latest information in the agriculture industry and service updates with its existing customers and prospects and continue growing its network through Twitter.
YouTube: Social media video achieves 1200% more shares than text and image combined. Considering the benefits associated, XXXX will upload videos concerning experienced and skilled consultants associated with it, informative videos explaining the scope of services offered, satisfied clients who have procured services from the company, and interviews with the founder telling his motivational journey launching and managing a successful agricultural consultancy business. This will help to engage more clients with the company
MARKET RESEARCH – MARKETING STRATEGIES
WORD-OF-MOUTH
Word-of-mouth marketing is one of the oldest yet effective organic marketing techniques. The professionals at the company will talk to the potential clients explaining the services offered by the company and how these services or suggestions can improve the overall productivity of their farms and the quality of their produce while allowing them to focus their time and efforts on important business segments. Staff will also network and educate previous businesses and clients about the enhanced scope of services offered by XXXX. The founder will also capitalise on his personal network to create a solid base of clients.
CONTENT MARKETING
Most businesses have complex buyer cycles, multiple decision-makers, and long-term nurturing periods. Content can support these potential clients during their buying journey, educating them on the subject, the market, and the services thoroughly. Given the potential of content marketing to educate potential clients, the company plans to incorporate blogs on its website. It will consistently publish articles to educate clients and keep them informed about the latest happenings in national and international markets. Additionally, the company will highlight how industry leaders are capitalising on these opportunities by optimising their resources. Content marketing also reduces the overall marketing cost by a massive 62%, compared to other age-old techniques, so will be beneficial to XXXX from both ends of the business and the clients.
Promotion of this content online will further result in improvement of ranking on search engines and more people will stumble upon the articles and bookmark them, share them with friends, and get in touch to ask about the company’s services.
Google is one of the most influential channels when it comes to helping digital clients find appropriate and experienced service providers. 53% of all trackable website traffic comes from search engines far exceeding any other traffic source. Search engine optimisation (SEO) involves optimising website pages to rank higher in search results for specific keywords and phrases. The company will develop a well-crafted SEO strategy to drive more traffic to its website, as it will push the platform to the top of search engine rankings. It will develop appropriate keywords including ‘CEA consultants near me’, ‘top agricultural consultants in Europe’, ‘best agritech businesses near me’, ‘experienced agriculture investment consultants’, etc., to rank its website higher in search engine results enabling it to drive more traffic and leads. The SEO-friendly website of the company will leave a lot of potential traffic and revenue on the table.
MARKET RESEARCH – MARKETING STRATEGIES
REFERRALS
According to Consulting Success's survey, the only thing that makes consultants more money after networking is referrals. Referred clients are more loyal and profitable than the average client. In fact, they are 18% less likely to churn, and their lifetime value is 16% higher than other clients. Having a referral policy will be one of the most important marketing tactics for XXXX. The company will offer referral incentives to existing clients to encourage them to tell the farmers and investors in their value chain about the exceptional consulting services offered by it. When an existing client refers someone from his/her networks, the company will not have to go through the expensive lead generation process, which will ultimately save the biggest part of marketing costs. The company will regularly add new referral incentives to encourage and remind its present clients to provide valuable leads. The exceptional provision of consulting services and excellent customer service at the company’s end will automatically encourage its present customers to spread the word about it.
CLIENT TESTIMONIALS
Despite fierce competition in the agricultural consulting industry, there is still room for even the smallest service providers to earn revenue based on the skills, experience, and expertise that the consultants possess. A great way to ensure growth is by talking to the present clients. The company will encourage its existing clients to share their feedback or testimonials on multiple social media and other digital channels. This feedback or customer reviews will help XXXX encourage potential clients to procure the services. It will also help attract customers, who usually examine customer reviews before procuring services.
The detailed strategy to target businesses through Google Ads is outlined as follows:
✓ Run responsive search ads and responsive display ads with various keyword groups to help maximise exposure when being searched.
✓ Target the nearby regions’ small, medium, and big farmland owners and entrepreneurs to the website.
✓ Research competitors and their keywords.
✓ Include site link extensions and contact information extensions.
GOOGLE ADS
MARKET RESEARCH – MARKETING MIX
PRICE
XXXX will follow a competitive pricing strategy to stay ahead of the competition and gain a substantial market share in the agricultural consulting industry. The company will continuously make efforts to reduce its operating cost through establishing synergies among different divisions, and in turn, pass on the benefit to its clients in the form of reduced pricing. The pricing of individual services under different segments will be based on detailed analysis on the part of the company, analysing the scope of services and time devotion, and will be communicated well in advance before getting started on each project.
PROMOTION
To date, XXXX has relied primarily on word of mouth and the internet to drive the marketing message. These will still remain the core strategies with enhancements planned to strengthen the market position and increase the volume of qualified business opportunities. In addition to this, the company will use a combination of online and offline marketing channels to promote its services. This will include social media, blogs, SEO, retargeting, email marketing, and referral incentives. The professionals at the company will meet with local farmers and agricultural investors and will also attend agricultural events and conferences to connect with potential clients. Additionally, the company will prioritise delivering excellent customer service through various online and offline channels.
PRODUCT
XXXX Ltd is a forward-thinking consulting firm specialising in Controlled Environment Agriculture (CEA) that provides a variety of business solutions for farmers and agricultural investors. Their specialised consulting services are crucial for ensuring the longterm success and sustainability of agricultural projects. The company offers unique, innovative, sustainable, and wellresearched solutions to the agri-business sector. Currently, the company is focused on aggressively expanding its client base and increasing profits, while developing its own consulting software to improve service offerings. XXXX Ltd has already built a strong reputation in the industry for providing high-quality services that positively impact client acquisition.
PLACE
Location Overview: XXXX has been operating from its office in London, which is known as a major financial hub. The company is focused on targeting agricultural enterprises throughout Europe, a region that holds significant influence in the global agro-food industry. Despite the constantly changing economic and policy landscape, the EU's agro-food system has proven to be resilient and capable of sustaining growth. Europe’s rich agricultural and industrial diversity has made the continent a centre of trade and commerce for centuries. Moreover, the "farm to fork" strategy, which recommends a 50% reduction in the use of pesticides and a 20% reduction in the use of synthetic fertilisers in agriculture, as well as a 50% reduction in the use of antibiotics in livestock are the major drivers of Europe’s transition to smart agriculture.
MARKET RESEARCH – PRICING STRATEGY
PREMIUM PRICING STRATEGY
Idealforlargegreenhouseownersandfarmers
XXXX plans to implement a premium pricing strategy for specialised services related to greenhouse optimisation. This will involve leveraging unique methodologies or advanced technology. The services in this category will encompass exclusive or personalised offerings, such as customised yield optimisation plans, advanced data analysis, and innovative labour-saving methods. This pricing strategy is suitable for high-value crops or advanced greenhouses where clients anticipate substantial returns on investment from consulting services. The company will substantiate its premium pricing by showcasing proven outcomes, such as case studies demonstrating increased yields and reduced costs from past projects.
COMPETITIVE PRICING STRATEGY
Idealforprice-sensitivecustomers
The pricing for all services will be aligned with competitors, highlighting its unique selling points such as specialised expertise in specific crop types and innovative greenhouse technologies. The company will justify its pricing by comparing the financial and other benefits it provides in addition to those offered by current market players. It will strive to balance competitive pricing with the necessity to cover costs and sustain healthy profit margins.
VALUE-BASED PRICING STRATEGY
Idealforvalue-consciousconsumers
XXXX plans to adjust its prices to reflect the value it provides to clients, especially in terms of increasing yields and reducing costs. The company will thoroughly assess how its services can enhance efficiency and profitability for clients and set prices accordingly. This approach will be more appealing to the clients, as they see a direct correlation between the cost of services and the benefits they receive. Additionally, the company will consider performance-based factors, such as bonuses for achieving specific yield improvements or cost reductions, when determining the pricing for its services.
TIERED PRICING STRATEGY
Idealforbudget-consciouscustomers
The company will design different service packages depending on the scope of services. Where the basic package will include standard greenhouse efficiency audits and basic yield improvement plans, the more advanced packages will involve offering comprehensive consulting services, including custom yield optimisation, advanced technology implementation, ongoing support, on-site consulting and day-to-day monitoring of the greenhouse climate data and crop performance. The tiered pricing structure will allow the clients to choose a level of service that fits their needs and budget.
MANAGEMENT SUMMARY
Founder and CEO
OVERVIEW: WORK EXPERIENCE:
EDUCATION AND QUALIFICATIONS:
CONFERENCES:
MANAGEMENT SUMMARY – FOUNDERS’ DETAILS
CAREER SUMMARY:
MANAGEMENT SUMMARY – FOUNDERS’ DETAILS
KEY ACHIEVEMENTS: