Urban agriculture is experiencing a growth spurt

Commercial urban agriculture is transforming local vegetable supply chains and reducing reliance on global food markets. Over the past 20 years, advances in high-tech farming have turned it into a USD 5 billion industry, attracting substantial investment.

A 2023 report by the European Bank for Reconstruction and Development (EBRD) and the UN’s Food and Agriculture Organization (FAO) examines scalable approaches to sustainable growth in urban farming. Drawing from a global study and insights from nearly 950 stakeholders across 65 countries, the report highlights the sector’s potential and challenges.

High-tech methods, such as vertical farms and greenhouses using robotics, LED lighting, and hydroponics, allow urban farming to produce leafy greens, herbs and even raw materials for other industries. These approaches reduce land, water and pesticide use while cutting food loss. However, high energy demands – especially from non-renewable sources – can increase greenhouse gas emissions and operational costs.

The sector must adopt cleaner energy solutions and develop efficient technologies to address these challenges. Public and private investment, supportive policies, and a skilled workforce are vital for scaling innovation, especially in low-income economies. Success also depends on tailoring investments to specific economic, social and environmental contexts.

The report concludes that combining knowledge, technology, and finance can drive the sustainable growth of urban agriculture, ensuring its resilience and inclusive contribution to global food security.

Read the full article on FAO Investment Centre.

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