Precision farming brings consistent, home-grown yields for local farm

In 2018, LivFresh Co-Founder and Chief Executive Officer Karthik Rajan gave up his consulting job to try his hand at something less cushy – farming. Far from being a conventional farm, however, LivFresh resembles a modern manufacturing site with advanced production systems, assembly lines and conveyor belts.

The company began operations in April 2020 – at the height of the Covid-19 pandemic. “That was a very depressing period because our construction was stalled,” said Rajan.

The company had a small research and development setup, producing about 100 kg of crops a week. “But we took that opportunity and went to market with whatever we had,” he said.

That turned out to be the best move LivFresh had made, as the positive consumer feedback helped keep everyone going, despite the uncertainty posed by the virus outbreak.

Today, LivFresh is a high-precision hydroponics farm which uses technology such as machine learning and data analytics to monitor the health of crops and to grow vegetables in an efficient, sustainable manner.
 

Data-driven greenhouse

Crops are planted in a data-driven greenhouse, which gives Rajan and his co-workers free rein over the environmental conditions – such as the climate, nutrients and water – in which the plants grow.

To maximise production per square metre, LivFresh taps what is known as a “moving gully system”, which automatically moves plants to different areas through their stages of growth – from seeding to planting and harvesting.
This automation process cuts down transplanting and harvesting time, significantly easing labour and energy costs.

Irrigation sensors are in place to detect the levels of nutrients in the water, to ensure plants get the optimal amount of nourishment. There are also sensors in the shade screens suspended above the plants to manage the light intensity.

“It’s all part of providing that precision to farming,” said Rajan.

What this means is that LivFresh is able to guarantee customers reliable and consistent yields all year round. Rajan’s interest in farming was piqued about a decade ago, during his days as a public-policy consultant. He recalled being tasked then to look into some of the key disruptive forces in traditional farming.
“The first time I came across vertical farming, hydroponics ... it was like science-fiction,” he said, adding that it appeared all “too far-fetched”.

Still, he found himself being drawn to the possibilities of farming and continued to keep an eye on the sector. As food security came into greater focus amid land and labour constraints and a looming climate crisis, innovative solutions in farming soon became commonplace.

As he comtemplated a career switch, his wife was the one who gave him the nudge to pursue his interest in farming.
 

Overcoming uncertainty

“As a startup or as an entrepreneur, your social support has to be very strong because you go through so much uncertainty...” he said.

After all, running a farm is no easy feat. “I miss the pay cheque at the end of the month ... and the air miles,” he quipped.

Technology has indeed changed the fundamentals of farming. But having economies of scale is equally important.

“At the end of the day, if you don’t provide the consumer what is affordable ... there won’t be a market,” he said. The company has therefore charted a growth path based on boosting access to locally grown produce.
 

LivFresh’s current facility in Kranji has the capacity to produce some 300 tonnes of crops per annum; the figure is expected to hit 1,000 in the coming 12 to 18 months.

Rajan also expects the company to grow its headcount to 30 from the current 12.

LivFresh now distributes its products to restaurants, supermarkets and directly to consumers through its e- commerce platform.

“The vision of the company is to be as close to the consumer as possible,” he said.

Still, price remains a barrier the company has to overcome, given that consumers are still used to cheaper options imported from elsewhere.

“I used to be one of them. I would see the organic aisle (in the supermarket) and steered clear of it because I knew it was going to cost twice as much,” he said.

But he is encouraged that consumers have, over time, become more discerning about what they eat. Because of the pandemic, they have begun to shift their budgets towards things they knew were important but did not prioritise in the past, said Rajan. This has led to a larger share of families’ budgets being allocated to good food.

“Nutritional content, taste, texture – all of that deteriorates with time. And that time can be as little as 36 hours. Today, consumers realise what they’ve been missing out on, and are going to start demanding for it,” he added. At LivFresh, greens are harvested daily and can be delivered to consumers within a few hours.

Rajan is also anticipating the pride in being able to consume local produce to “go viral” in the coming years, especially as food security becomes increasingly important.

LivFresh has since raised S$5 million in seed capital and has received a grant of about S$4 million from the Singapore Food Agency.

The company has also entered a bridge round of funding with some of its existing customers to raise S$1 million.

“All our customers are such big fans of ours that they want to be part of the business. So we thought this is a great opportunity to build a greater ecosystem,” said Rajan.

While going public eventually is on the cards for LivFresh, he noted that the company is still in its early stages of growth.

On where it might potentially list, he said: “It depends on where the biggest opportunity lies. Singapore definitely still has a lot of potential, but the Middle East, for example, could be another big market.

“But as a Singaporean company, I think our roots will always stay here.”

Source: The Business Times © SPH Media Limited. Permission required for reproduction.