Hello everyone! I’m Shohei.
Plant factories are a revolutionary form of agriculture, but their operation involves various risks. I’ve been working on the front lines for over 10 years. There have been times when the factory’s production stopped for months. I’ve experienced a lot over 10 years, and some of my experiences have been written in my columns.
In this article, I will explain the main risks you may face when operating a plant factory from the perspective of someone who has been in the field, using specific examples.
If you’re new to plant factories, please refer to the following article:
5 Main Risks of Plant Factory Operation
First, I will introduce the major risks of plant factory operation in five categories.
- Equipment Failure Risk
- Pest and Disease Outbreak Risk
- Foreign Object Contamination Risk
- Insufficient Cultivation Technology Risk
- Demand Fluctuation Risk
Incidentally, at the field level, we conduct a more detailed risk assessment. For reference, here is an actual risk assessment table from the field:
This table is distributed on this site as a risk assessment template, so if you’re interested, please visit the following page:
1. Equipment Failure Risk
Plant factories rely heavily on sophisticated environmental control systems, including air conditioning, lighting, and nutrient solution management. These facilities must operate 24/7 to maintain the optimal environment for plant growth. Therefore, equipment failure is a significant risk that directly affects production.
For example, if the air conditioning system fails, the temperature and humidity cannot be properly controlled, adversely affecting plant growth. If the lighting system fails, photosynthesis will be inhibited, and growth will stagnate. If there is a problem with the nutrient solution management system, the plants will not receive the necessary nutrients, leading to decreased quality and yield.
Since these facilities are often expensive and complex, repairing or replacing faulty parts can take time and money. Furthermore, production will be halted during repairs, which poses a risk to the delivery schedule.
Therefore, it is crucial for plant factories to perform proper equipment maintenance to prevent failures. It is also essential to have a system in place for quick responses in case of unexpected breakdowns.
2. Pest and Disease Outbreak Risk
Plant factories are closed environments, so once pests or diseases occur, they pose a risk of rapidly spreading. At one plant factory, an infestation of fungus gnats occurred, and production was halted for one to two months for eradication. During this time, not only did the sales completely disappear, but the production stoppage also led to a loss of trust from business partners, significantly affecting future sales.
To prevent pest and disease outbreaks, thorough hygiene management and the establishment of early detection and eradication systems are crucial. Specific measures include disinfection upon entry and exit from the facility, installation of insect-proof nets, regular monitoring, and the use of pesticides.
Especially in fully artificial light-type plant factories, if pests or diseases occur, the damage can be catastrophic. Therefore, it is essential to be extremely careful in preventing the entry of pathogens and pests.
3. Foreign Object Contamination Risk
In plant factories, due to the strict hygiene management, the risk of contamination by pathogens is generally low. However, the risk of foreign object contamination originating from equipment used within the factory cannot be completely eliminated.
For example, plastic pieces may become contaminated due to the deterioration of materials used in cultivation. Additionally, human negligence may lead to hair or insects contaminating the product. Foreign object contamination not only presents food safety issues but also risks damaging the brand image.
Therefore, plant factories need to regularly inspect and replace materials, and appropriately manage work procedures. It is also essential to have a system in place for prompt response in case of foreign object contamination.
4. Insufficient Cultivation Technology Risk
Plant factory operations require highly skilled personnel with advanced cultivation techniques. Without proper technology, the production output may be lower than the energy and material costs, reducing the profitability of the business.
One plant factory experienced a significant decrease in production efficiency after a skilled cultivation specialist retired, and technology transfer was inadequate. The systematic accumulation of cultivation know-how and personnel development are crucial challenges.
However, in reality, it is difficult to enhance field strength through education. It’s a struggle for every plant factory.
This is because there are hardly any sources of information that can provide specific know-how directly related to profitability.
On this site, I share know-how gained from my years of experience and continuous trial and error.
The following content is highly effective for enhancing plant factory field strength.
5. Demand Fluctuation Risk
Plant factory vegetables are said to be less susceptible to market price fluctuations, but in reality, they are still subject to market trends. If market prices decline, plant factory vegetables will also have to be priced lower. However, the reality is that even when market prices rise, plant factory vegetable prices are slow to reflect this change.
Furthermore, there is a risk of being unable to sell the planned production quantity due to demand fluctuations. Vegetables, being fresh produce, are difficult to adjust through inventory. Therefore, planned production based on demand forecasts is crucial.
One countermeasure against demand fluctuation risk is diversification of sales channels. By securing multiple sales channels, such as restaurants and food service, the impact of a specific market can be mitigated.
Importance of Risk Management
While plant factory operational risks are diverse, it is essential to note that equipment failure directly affects production, especially in plant factories that rely heavily on advanced environmental control systems.
Furthermore, comprehensive risk management is required, including pest and disease prevention, foreign object contamination prevention, succession of advanced cultivation technologies, and responsiveness to demand fluctuations.
If we compare plant factory operational risks to train operations, equipment failure could be a derailment, pests and diseases could be suspicious passengers, foreign object contamination could be objects falling onto the tracks, insufficient cultivation technology could be the operator’s lack of skill, and demand fluctuations could be a decrease in passengers. Even small anomalies, if left unattended, can hinder operations.
Summary
Plant factory operations involve various risks related to equipment, pests and diseases, foreign objects, cultivation technology, and demand. Understanding these risks systematically and managing them comprehensively is crucial for the success of the plant factory business.
Recognizing risks, seeking early detection, and responding promptly will lead to stable business operations. For specific measures, we recommend consulting with experts.
- What are the disadvantages of plant factories?
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The main disadvantages of plant factories include:
- High Initial Investment and Operating Costs: Advanced environmental control systems and equipment require significant initial investment. Running costs, such as electricity, are also high.
- Specialized Knowledge and Skills Required: Plant factory operations demand advanced knowledge and skills in environmental control and cultivation. Securing and training personnel poses a challenge.
- Limited Cultivation Varieties: Currently, leafy vegetables are the main focus, with fruit and root vegetables posing significant challenges.
- What are the benefits of plant factories?
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The main benefits of plant factories include:
- Year-round and Planned Production: Environmental control allows for planned production regardless of season or weather.
- High Productivity: Multi-tiered cultivation and automation increase yield per unit area.
- Stable Quality: Maintaining optimal growth environments ensures consistent quality and stable product delivery.
- Resource Conservation and Reduced Environmental Impact: Water and fertilizer usage are optimized, minimizing waste generation. Shorter transportation distances reduce food miles.
- Food Safety: Hygiene management minimizes pesticide use, and contamination risks are also reduced.
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