February 8, 2016

By Elizabeth Penney

The intersection of fresh produce demand and new technologies is creating a fertile environment for controlled environment agriculture as a major player in the American food system.

“Its time has come,” Tim Heydon, CEO of Shenandoah Growers says. Shenandoah Growers, founded in 1989, is a Harrisonburg, Virginia-based greenhouse grower of fresh herbs and greens. Seed 2 Growth (S2G), a multi-stage venture firm specializing in transforming the food system, is betting on it with investment. S2G founders believe the company has potential to become “the leading national brand,” according to their website.

Cornell University, which has a department focused on the technology, defines controlled environment agriculture as growing plants within a controlled environment to optimize horticultural practices.

Inside growing isn’t new; in fact the earliest known use of the technique was in Roman times, with the creation of the first greenhouse. But although enclosed structures provide some ability to extend seasons by protecting tender plants or boosting growing temperatures, formerly they were limited in several key areas. Pre-electricity, lighting was solar only. Heat—often expensive—is needed in cold climates. Yield was limited by footprint and growing medium.

“In temperate climates, if fresh local produce is desired year-round it must be grown in greenhouses or other protective structures,” says Dr. Neil Mattson, co-director of Cornell’s controlled environment agriculture program (CEA).  Mattson is a proponent of indoor agriculture’s ability to meet local produce demand, mentioning that in New York City, for example, 95% of produce consumed is grown out-of-state. However, until recently, the CO2 footprint using traditional greenhouse methods was 5.5 lbs per head of lettuce versus .7 lbs per head for long distance imports, according to CEA research.

This is where the innovation in controlled agriculture is overcoming technological barriers to scale and creating the opportunity to meet local demand with locally grown food. “Sophisticated greenhouse production when temperature, light, and humidity are controlled, such as at Shenandoah Growers, allows for consistent, year-round production,” Mattson says.

According to Heydon, Shenandoah Growers holds patents on their growing methods. “We eliminate risks,” he says, speaking about field grown versus indoor agriculture, and “maximize resources.” Their twenty-three varieties of organic herbs and leafy greens are started in a vertical format then moved to the greenhouses to mature. Thanks to sensors regulating heat, light, and air, plants are grown without added herbicides or pesticides. Rooftop systems collect rainwater and patented procedures supply nutrients. “We constantly innovate,” Heydon says, “putting different systems together to maximize yield.”

Shenandoah Growers presently has 300,000 square feet of greenhouse space and facilities in several states, including Georgia, Texas, Indiana, and Florida. A fleet of refrigerated trucks delivers cut packaged herbs, live plants, and specialty products to supermarkets. Their hub approach to growing, packing, and distribution allows Shenandoah to provide fresh products within a 300 to 400 mile radius as well as customized regional production.

Trends in fresh herb consumption have largely driven growth, with Heydon citing cooking shows as one influence on consumer behavior. Interest in organic food is another. Organic production in the United States continues to grow, with herbs included as a developing category by USDA’s Economic Research Service, along with vegetables and fruit. “We’re a healthier alternative,” Heydon says.

In addition to traditional and popular herbs sold in clamshells, pots or cut bunches, Shenandoah Growers experiments with specialty products. Ethnic blends entice consumers preparing Italian, Thai, and barbecue dishes. During the holidays, poultry and roasting blends are promoted. Mint for juleps, rosemary skewers, and edible flowers are also sold seasonally. They even sell herbs for cats and dogs—potted catnip and grass.

Heydon also speaks of controlled environment agriculture’s potential to revitalize urban areas. “We can use existing warehouses rather than build new,” he says, “plus bring the product right to consumers.”

One of their more unusual initiatives is assisting small farmers to repurpose chicken houses. Shenandoah Growers recently launched a pilot program in Virginia but hopes to extend the opportunity to other areas. “The first thing we do is replace the metal roof with clear plastic,” Heydon says. “Growing for us is an opportunity for family farms.”

According to Dr. Mattson, statistics support the perceived interest in and growth of controlled environment agriculture. “In the U.S. the acreage of vegetables grown in protected cultivation grew from 1,404 acres in 2007 to 2,227 acres in 2012, a gain of 59% in 5 years,” Mattson says. “I continue to see similar if not higher growth rates in this sector.”