Hello everyone! I’m Shohei.
Plant factories are generating buzz as a way to achieve stable income regardless of the weather.
However, once you actually start one, you realize there are many challenges. Initial costs and running costs are incredibly high.
I’ve worked in the plant factory industry for over 10 years. In this article, I’ll share my real-world insights from my experience, detailing the advantages and disadvantages of plant factories without holding back.
- From the perspective of a worker
- From the perspective of a business owner
I’ve covered both angles.
If you’re interested in plant factories, please read until the end.
By the way, for more details on why plant factories are crucial in today’s world, check out this article:
The Real Deal: 10 Years in a Plant Factory as Told by Me
Plant factories are attracting attention as a new career path for farmers and a new place to find work. However, the reality might be different from what you imagine.
I’ll share the real experiences I’ve had working in a plant factory.
For a detailed look at plant factory work, check out this article:
Benefits for Plant Factory Workers
Since I started working in plant factories in 2011, they’ve been seen as the “cutting edge of agriculture.”
Working in a plant factory, I’ve experienced these benefits:
- Stable income unaffected by weather: Plant factories are less vulnerable to natural disasters. Compared to open-field cultivation, you can expect stable harvesting and income throughout the year. No more worries about lost sales due to natural disasters or downtime in winter.
- Comfortable work environment: Working indoors means no heavy labor outside or worrying about the heat or cold. Compared to open-field farming, the work environment is comfortable.
- Exposure to cutting-edge technology: You can learn and improve your skills in cutting-edge technologies like crop management using IT and automation.
By the way, don’t you get the impression from industry PR, media, etc. that AI, IoT, and automation are widely used?
While these technologies are being implemented, the industry still heavily relies on human hands. I don’t think it’s “cutting edge” in many areas.
For example, fax machines are still commonly used in the industry.
However, compared to when I entered the industry 10 years ago, the use of technology has steadily progressed.
Drawbacks for Plant Factory Workers
Although plant factories have many benefits, there are definitely aspects that are a burden on workers.
For example:
- High level of specialized knowledge required: You need a wide range of knowledge and skills, not only in cultivation techniques but also in equipment management and environmental control. Without on-site expertise, you might not be able to properly grow vegetables.
- Limited contact with nature: It’s different from the traditional image of agriculture, where you work with the soil and grow crops in nature. It’s actually closer to an “industrial” job.
- Need to constantly adapt to evolving technology: New technologies and equipment are constantly being developed, so you need to have a continuous learning mindset.
Over the years, I’ve supported producers at numerous plant factories, and acquiring the necessary skills has been a challenge at every plant factory.
Especially since many companies are entering the industry from other sectors, there are many cases where people on site lack knowledge about plant cultivation.
The know-how required for plant factories isn’t about cultivation knowledge but rather about industrial production management, hygiene management, and a wide range of other things to learn.
By the way,
This website offers a variety of content based on the know-how I’ve gained in the field.
This content is perfect for those who want to increase the profitability of plant factories.
Differences Between Plant Factories, Open-Field Cultivation, and Greenhouse Cultivation
Now, let’s explain things from the perspective of a plant factory as a business.
First, let’s compare plant factories with traditional agricultural forms, open-field cultivation, and greenhouse cultivation.
| Plant Factory | Greenhouse Cultivation | Open-Field Cultivation | |
|---|---|---|---|
| Cultivation Environment | Completely Artificial | Semi-Artificial | Natural Environment |
| Production Volume | Stable | Relatively Stable | Unstable |
| Quality | Stable | Relatively Stable | Unstable |
| Cost | High | Medium | Low |
| Cultivated Crops | Leafy vegetables mainly | Fruits, Flowers, etc. | Variety of crops |
| Labor-Saving / Automation | High | Partial | Difficult |
Plant factories can completely control the environment, so their biggest advantage is stable production.
Moreover, the risk of pest infestation is low, and pesticide use can be significantly reduced, contributing to reduced environmental impact. Additionally, multi-tiered cultivation allows for efficient use of limited space, making it attractive due to its high land productivity.
On the other hand, the biggest disadvantage is the high initial and running costs.
This is a serious issue, and it’s a major reason why even large companies that enter the industry quickly withdraw. I wrote about this in the following article:
Also, be sure to check out this article regarding the issue of being in the red:
Types and Mechanisms of Plant Factories
Although we call it a “plant factory,” there are actually several types. Understanding the characteristics of each is essential for choosing the right method for you.
Types of Plant Factories
There are two main categories:
- Completely artificial light type: Cultivation is done using only artificial light like LEDs, without any sunlight. This allows for stable production year-round, regardless of weather.
- Sunlight-combined type: Maximizes the use of sunlight and supplements it with artificial light when necessary. This reduces initial costs while still enjoying the benefits of sunlight.
Cultivation Methods
- Hydroponics: Plants are grown using water and nutrient solutions instead of soil. This is expected to prevent consecutive cropping problems and promote growth. The following three are common hydroponics methods:
- DFT (Deep Flow Technique): Water depth is maintained, and nutrient solution circulates. Oxygen supply is stable, beneficial for root growth.
- NFT (Nutrient Film Technique): Nutrient solution is delivered as a thin film to the roots. Water temperature changes are minimal, and oxygen supply is abundant.
- Nutrient Solution Soil Cultivation: Nutrient solution is supplied to the soil for cultivation. Combines the advantages of hydroponics and soil cultivation, also utilizing the work of microorganisms in the soil.
- Solid Media Cultivation: Uses solid media like rock wool, peat moss, or coir. It’s lighter and cleaner than soil, and has excellent water retention and drainage properties.
Benefits and Drawbacks of Plant Factories from a Business Entry Perspective
I’ll explain the advantages and disadvantages of plant factories in detail, based on my experience. It’s essential to consider the drawbacks as well, not just the benefits, before making a decision.
Advantages
In a nutshell, the biggest advantage is “stable cultivation.” As long as you maintain the basics of crop management, the production system rarely breaks down.
Occasionally on-site, I hear stories like “The production system at ~~ company is failing, and their output is decreasing.”
The reasons for these situations are usually due to the incompetence of the on-site managers or simple mistakes.
Beyond human factors, plant factories are more stable than other agricultural forms because they aren’t affected by weather. Other advantages include:
- Stable supply of high-quality crops: Maintaining optimal temperature, humidity, and CO2 levels allows for stable production of high-quality crops year-round.
- Solving labor shortages: Introducing automated systems enables efficient operations without relying on manual labor, contributing to the resolution of labor shortages.
- Reduced environmental impact: Significantly reducing pesticide use can lead to a sustainable agricultural system with low environmental impact.
- High added value through branding: Branding that emphasizes “safe and secure” and “high quality” can lead to sales at higher prices.
Drawbacks
On the other hand, the biggest disadvantage is “cost.” It’s the key factor.
Over the 10+ years I’ve worked in plant factories, costs have continued to rise.
- High initial costs: Construction costs for facilities and equipment investment require substantial funds. Completely artificial light types tend to be more expensive.
- High running costs: Operating costs like electricity and air conditioning are a challenge. In particular, heating and cooling costs make up a significant portion.
- Limited cultivatable crops: Tall crops or those with deep roots may be difficult to grow.
- Requirement for advanced technology and knowledge: You need to acquire specialized knowledge and skills, such as controlling cultivation environments and managing equipment.
In particular, the rise in raw material prices and electricity costs is a serious concern.
These are considered challenges in the plant factory industry, and I discuss them in detail in the following article:
Points to Avoid Failure in Plant Factories
Plant factories can generate significant value if they are operated properly. Here are five points to avoid failure.
Thorough Market Research Beforehand
- Identify crops with high demand: Choose crops with stable demand that are less susceptible to trends.
- Focus on differentiation if competition is fierce: Create differentiation from other farms by emphasizing high quality, rarity, or functionality.
These are the fundamentals.
Especially for companies entering the industry from other sectors, they may have a product-out perspective. It’s important to have a market-in perspective.
Grow the vegetables that are in demand.
In Japan, it’s easy to get cheap, high-quality vegetables, so undifferentiated products won’t sell.
Make a Financial Plan with Room to Spare
- Balance between equity and loans: Create a financial plan considering not only initial costs but also operating capital.
- Utilize subsidies and grants: Actively take advantage of government and local government programs.
Plant factories have high initial investments, making it difficult to turn a profit early on.
Especially for large companies seeking short-term profits, they face the risk of having to withdraw early.
Construct an Optimal Cultivation Environment
- Selecting the type of plant factory: Choose the most suitable type between the completely artificial light type and the sunlight-combined type based on your financial resources and cultivated crops.
- Know-how for equipment introduction and operation: Actively adopt the latest technologies and establish efficient operating methods.
Cultivation techniques are the core of plant factories. You need to implement the correct know-how on site.
Secure Experienced Personnel
- Crop Management Expertise: Having personnel with knowledge of plant physiology, pest control, etc. will be a great asset.
- Equipment Management Skills: Having personnel who can handle equipment maintenance and troubleshooting is reassuring.
People are the ones who utilize know-how on-site.
It’s very rare to find personnel with a wide range of knowledge and experience in cultivation, production management, hygiene, etc.
Gather Information and Enhance Skills
- Latest technologies and market trends: Stay vigilant, attend seminars and workshops, and acquire the latest information.
- Success stories of other companies: Learn from successful examples through site visits to companies with innovative practices.
Gathering information is essential. However, there’s limited practical know-how that is truly needed on site, such as know-how related to profitability and efficiency improvements.
There are books, information, and seminars on basic plant factory management methods, but they won’t enhance on-site skills.
If you’re looking for practical know-how to implement on site, be sure to make use of this website.
Conclusion: The Most Important Thing for Plant Factories (I Can Say This with Confidence)
In plant factories, the latest equipment and systems are undeniably important.
However, to maximize their use and ensure continuous stable supply of high-quality crops, what’s truly needed?
I can confidently say, based on over 10 years of experience on site, that “human power” is the most crucial factor.
However, looking at the entire plant factory industry, experienced personnel are in short supply.
Therefore, investment in human resource development is essential.
However, educational opportunities are limited, and there are very few places to learn know-how that directly translates to profitability on-site.
The truth is that successful plant factories have their own unique know-how that they don’t share publicly.
This site provides know-how specific to “profitability,” systematically organized from my years of experience. If you’re interested, check it out:
FAQs: A 10-Year Pro Answers Your Questions
As someone who has been involved in plant factories for many years, I’ll answer some frequently asked questions.
How much do initial costs typically cost?
The amount varies greatly depending on the scale and equipment, but it’s generally in the range of several million yen to several hundred million yen. There may be subsidies and grants available, so be sure to check in advance.
Can beginners start plant factories?
It’s possible for beginners to start.
However, running a plant factory requires specialized knowledge and skills, so it’s important to prepare thoroughly, such as taking training courses at agricultural corporations, hiring experienced individuals, or taking other measures.
This site also provides support for new startups and education.
What crops are easy to grow?
Leafy vegetables like lettuce and herbs are said to be easy to grow because they have short growth periods and are more manageable for environmental control.
This article also discusses how plant factories should be used and for what purpose. Check it out:
How do I secure sales channels?
There are various methods, such as making direct contracts with supermarkets, restaurants, and food processing companies, or selling online.
Summary: Plant Factories are an Investment in the Future
This article has explained the benefits and drawbacks of plant factories, along with points for success.
Plant factories are not a simple business model. However, with the right knowledge, preparation, and passion, it’s not impossible to achieve great success.
I hope this article serves as a compass for those of you who are considering taking on the challenge of plant factories.
Additionally, you can learn a wide range of knowledge from basic to advanced on this site’s content.
Make good use of it.
- Plant Factory Economics?
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Plant factories face the challenge of high initial investment and running costs. Data suggests that completely controlled facilities can cost 10 times more than greenhouse cultivation and 100 times more than open-field cultivation.
On the other hand, plant factories are suitable for cultivating leafy vegetables like lettuce that have a high price per unit. The production of vegetables with high added value, such as functional ingredients, is expected to improve profitability.
In the future, cost reduction and productivity improvements will be required through human resource education and the use of AI and robotics.
- Why Are Plant Factories Gaining Attention?
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Plant factories are attracting attention for the following reasons:
- Advanced environmental control technologies allow for year-round, planned production, leading to stable yields.
- Pesticide-free cultivation is possible, enabling the production of clean vegetables.
- Well-suited for cultivating high-yield leafy vegetables like lettuce.
- The production of vegetables with high added value, such as functional ingredients, is anticipated.
- They are attracting attention from the perspective of urban agriculture and food security.
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