Commercial Urban Agriculture

Commercial Urban Agriculture

Feb 6, 2025

Global urbanisation is a phenomenon across developing countries, with half of the world's population now residing in cities. That has increased demand for food, energy, resources, and infrastructure. This won't stop since projects estimate that 68% of the global population will be in cities by 2050. Most of these will happen in low-income countries, especially in Africa and Asia.

According to the 2030 Agenda of the United Nations for Sustainable Development, the main challenges are ensuring food security and improving the environmental sustainability of food production systems.

Is there a viable solution? Many agree that urban sustainable agriculture is the answer. Urban commercial agriculture is a set of practices that include growing vegetables, fruits, herbs, etc. It can be broadly categorised into two types: urban gardening, which is usually non-profit, and commercial urban agriculture, which is usually for-profit.

Urban agriculture

When asked to picture a farmer, most people imagine someone in a field working away in wide-open expanses of farmland. But urban agriculture has more to it. The connection between sustainable cities and agriculture manifests through economic, environmental, and social sustainability.

  • Economic sustainability includes full-time employment, employment opportunities for women, income generation, and tax revenue.

  • Environmental sustainability includes emissions, water and waste management, energy efficiency, and amount of organic farming.

  • Social sustainability includes safety & security, health benefits, technological innovations, and gender and social equity.

Why are these important? It's no secret that climate change has forced industries to reevaluate how things are done. Agriculture is no different. Global transport and logistics impact the overall carbon footprint of the food we eat. So, it makes sense to look for innovative ways to grow more of the food we need closer to urban areas, where most people live and work.

Interestingly, urban farming has a long history. City dwellers in ancient Mesopotamia would demarcate land for cultivation. In more modern times, victory gardens became prominent during World War II. Now, they take many forms as people have educated themselves on the importance of sustainable agriculture and food.

Commercial in nature

Private investments in high-tech urban farms are rapidly growing. Over the past two decades, the longstanding practices of urban gardening have been joined by NGO initiatives like community farms. In the last decade, income-generating activities and entrepreneurship in urban agriculture have gained prominence. An increasing number of low-tech urban gardens sell produce at market prices or at a sliding scale in cities with favourable policies.

These longer-lasting forms of entrepreneurial urban agriculture are now joined by commercial rooftop farms and controlled environment agriculture (CEA) like rooftop greenhouses and hydroponic vertical farms inside warehouses and shipping containers.

Some cities have supported scaling up urban agriculture due to its environmental benefits. Others support it for its potential contribution to urban food security. There are a couple of notable examples. In New York City, Brooklyn Grange, established in 2010, was one of the first soil rooftop farms in the city and sells its products to restaurants. In Paris, Cycloponics has been growing certified organic mushrooms and vegetables underground since 2018. These new for-profit groups are also developing new and high-tech innovations for growing and marketing urban agricultural products.

From culture to the environment, such farms make a difference in how people in cities live and eat. It also has economic payoffs. Here are some important ones:

  • Boosts local economies: One of the most direct economic benefits is the stimulation of local economies through farmer's markets. They're a platform to sell directly to consumers and contribute to the vendors.

  • Helps small businesses: Commercial urban farming nurtures and supports small businesses, from small cafes to food processing companies to farm-to-table restaurants. Urban farms create demand for several types of small businesses.

  • Job creation: Commercial urban farming is ripe for entrepreneurship and innovation. The relatively low barrier to entry is a boon for entrepreneurs to test their ideas, refine their products, and build a customer base.

It's the future

Urban agriculture will need to become resilient to feed a growing urban population. The global production potential of urban agriculture is estimated to be between 100 and 180 million tonnes per year. That's still quite marginal compared to current global production volumes of 6,500 tonnes per year.

People have realised the economic, social, and environmental benefits of urban agriculture for urban food security. With the right policy support, commercial urban agriculture can ensure urbanisation doesn't add more pressure to the food supply chain. At Smart Grow Farms, we're committed to ensuring commercial urban farms are at their best when they cater to the community, create economic benefits, and minimise environmental harm.

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