Measurement of the Economic Efficiency of Industrial Production of Vertical Farms Cover Image

Pomiar ekonomicznej efektywności produkcji przemysłowej wertykalnych farm uprawnych
Measurement of the Economic Efficiency of Industrial Production of Vertical Farms

Author(s): Ryszard Jędrzejczak
Subject(s): Business Economy / Management, Micro-Economics, Agriculture
Published by: Społeczna Akademia Nauk
Keywords: organic farming; urban farming; rural farms; vertical farms; hydroponics; aeroponics; aero-hydroponics; aquaponics;

Summary/Abstract: Worldwide overpopulation and related problems in terms of access to food and water resources are already a reality. Therefore, the international community is taking steps to mitigate the effects of these phenomena. First of all, it focuses on the problem of providing the population with access to food and water by implementing alternative forms of obtaining food products and proper management of water resources. The aim of this study is to present the specificity of the operation of vertical farms as an alternative to traditional agriculture, which has limited production possibilities due to the progressive decline in agricultural land resources, and for the implementation of procedures aimed at saving water resources in agricultural production. For the empirical part of the study, an analysis of the economic efficiency of a vertical farm as an investment implemented in Poland by Company “X” was carried out, which shows that the economic profitability of the investment while maintaining the fixed asset is possible under certain conditions. Economic effectiveness was assessed on the basis of financial methods, ie EBITDA, EBIT, FCF and PV. BIO production and availability in large urban agglomerations are an additional added value for the customer. For reasons of trade secret, the company name was not disclosed.

  • Issue Year: 22/2021
  • Issue No: 3
  • Page Range: 19-33
  • Page Count: 15
  • Language: Polish