Overview
The Evergarden Consortium (EC) seeks to foment development of an organization of independent gardeners producing food using hydroponics and related indoor farming methods. Consortium branches (also known as "clusters") are located in metropolitan areas and consist on average of one to two dozen growers.
The EC is principally organized around a Comprehensive Information Center (CIC), which is a database linking producers (gardeners), distributors, and consumers. Consumers may be individuals and familiies or groups such as NGOs, restaurants or social organizations. This robust system has been proven in 13 years of success in a closely related industry.
Fresh, local, nutritious. We like the sound of that.
EC is a joint venture of Garden of Eden Indoor Farming Inc and an affiliated software development and database management firm that has granted exclusive use of the platform to the EC for agricultural purposes.
Products
EC gardeners produce microgreens and other leafy green plants for local consumption. This shortens the production and delivery cycle, which improves freshness and nutritional value.
Specialization
Because the units of production (gardens) are relatively small as compared to traditional extensive agriculture, households or small firms can specialize in a small number of crops, which can be sold directly to local consumers or combined into a "menu" of fresh produce in a region. The open menu of produce is published with both immediately available and expected future deliveries.
Ordering
EC maintains a list of all products available from all gardeners. This is not a "fresh sheet" but a statement of capability by each gardener. Customers place orders from the product list for future delivery. The gardeners select orders from the active order list and reply with an anticipated harvest date. EC informs the customer, who has the option to cancel or to make a down payment with the balance due on receipt of produce. The gardener is credited with the down payment. When the produce is received by ED and delivered the balance is due. Upon payment the gardener is credited with the final payment.
Distribution
EC distributors receive or collect fresh produce from gardeners and transport it either to final consumers or to repackaging centers known as clusters, which serve all gardeners within a defined space, usually a few postal (ZIP) code equivalents. Dispatchers at distribution centers manage orders for a service area of many producers. Growers can opt to participate in the distribution functions or to concentrate exclusively on gardening.
Sales
The EC is the focus of sales and marketing, leaving the producers free to emphasize quality assurance and on-time delivery. All sales flow through the CIC. Various terms allow producers to sell all or part of their produce directly to outside customers, but the other advantages of consortium membership generally outweigh revenue from other distribution. Every producer, distributor and consumer has a login to the CIC with a customized view of the system. Each producer and each customer is linked to a default distribution center, but dispatchers can override the setting. Growers can opt to participate in the sales functions or to concentrate exclusively on gardening.
EC Profit
The EC will sell the produce at a marginal profit to cover the cost of packaging and delivery plus the cost of operating the CIC. At the end of the fiscal period designated by the EC, gardeners will share in the EC's net income according to a published formula.
Economic Impact
The open marketing approach has a low cost of entry. Along with the open menu, this eliminates speculative manipulation by intermediaries and allows "family farms" to operate in a space as small as a spare bedroom, perhaps operated by a homebound family member while others pursue outside interests. Each producer is free to remain small or grow depending on individual objectives.
The concept is entirely scalable. The system can theoretically support gardens from a single shelving unit of microgreen trays to a large greenhouse or other building housing thousands of mature plants. There are no limitations on crops or methodology, as the organizational and marketing tools are agnostic with respect to what is being produced or delivered. We imagine consortia operating in private homes, industrial parks or urban high-rise centers.
We call this The New Economic Engine. It can potentially push economic growth into communities that historically have had limited access to nutrition due to production and marketing decisions that focus exclusively on corporate profit.
Consortium Membership
- Completion of the EF indoor gardening training program. Demonstrable experience in the techniques used by consortium gardeners may be substitutable for training.
- Willingness to comply with safety, production, handling and quality standards of the consortium, which are similar to GAP standards as espoused by USDA insofar as they apply to indoor gardening.
- Willingness to market produce under the Evergarden Farms brand and to devote a substantial portion, usually the majority, of produce to sales through the EF network and to participate in the information-sharing character of that network.
- Payment of an initiation and training fee plus a recurrent membership fee equal to a percentage of sales to cover the cost of the CIC and the EC's distribution management, with a monthly minimum.
- Agreement not to disclose trade secrets of EF nor compete directly with the EF brand in the local market for produce types sold through the network.
- Other requirements as may be adopted by EF and the membership.
- Demonstrable financial capability sufficient to acquire necessary equipment and indoor growing area and to operate for an estimated interval before achieving profitability.
Independent Gardening Business Plan
At the same time, modern technology makes it possible to produce significant amounts of produce indoors and in proximity to consumers. This shortens the distance between farm and table while retaining the full nutritional value of the vegetables.
In that context, Evergarden Farms LLC (Evergarden) has designed and is developing a flexible, indoor gardening platform prototype that can be easily replicated at low cost. When configured for microgreens, for example, it is capable of producing thousands of servings of nutritious microgreens monthly at an average cost of about $1 per serving.
Unlike other approaches to indoor gardening, the farmer will not be left alone with unsold produce. Evergarden will also facilitate the development of a collaborative network that will increase the marketing power and income of affiliated gardeners in urban areas. By emphasizing small scale, intensive production the platform has a low cost of entry but is scalable to create family wage operations whether by bootstrapping or full investment. Potential farmers could be households, small businesses or nonprofit organizations.
The prototype is intended as a stand-alone business unit with the option to participate in a marketing network. It can function as a wholesale production unit (farm), an element of a training center, or any combination thereof. In an urban area each unit could be part of a cluster that would organize marketing and distribution to commercial or nonprofit entities.
Other configurations are possible. For example, the space could be configured to grow starters for transplant, extending the growing season in mid-latitude climates. Such starters would be ready in a few days and could be transplanted to another hydroponic farm or outdoors or even be shipped.
Another possible application of the technology would be to hybridize the growing space with microgreens and young plants. This could provide a source of vegetables for use in polar climates or in shipping. Evergarden suggests that an onboard farm could become a common part of trans-oceanic freighters or that the interior components could occupy space on passenger ships, by enclosing the farm in a container, a prototype of which is already in development.
Airports often have local industries preparing meals for travelers. Even a small airport could have an indoor farm to assure availability of fresh vegetables to replace the sad, soggy ones now being flown in from tropical regions and served well past their prime. Much of the discarded food from airlines is waste vegetables due to their unappetizing appearance and lack of flavor.
Of course, Evergarden is not alone in imagining the potential of indoor farms, and other systems are commercially available, but they do not share the integrative features of our related software and support systems, which will include order management, cultivation tracking, scheduling, marketing and training.
Operating at full capacity, each independent farm in the microgreens configuration has a revenue potential (based on actual sales in Puget Sound in 2022) of approximately $11,000 per month. Direct cost of product is projected at about $4,100 and general and administrative expense is about $2,700, leaving a net income of approximately $4,400 per month. Because the system is modular, expansion is a matter of adding production units and floorspace.
The required investment to create a family farm using the prototype is projected at under $10,000, varying with local crop choices and specific equipment. Approximately 200 to 300 square feet of floorspace and level access are recommended. Once in production and established as individual farms, annual ROI for farmers investing approximately $10,000 in an indoor form (using the microgreens example above) is estimated at (3400 X 12) ÷ 50,000 = 400 percent at full production with hired labor. When the farmer hires no labor but operates production alone (about 36 hours/week), potential net income rises to about $6,400 per month.
The Evergarden team believes that the creation of the envisioned farming system could be quite profitable for individual farmers and could also contribute significantly to improvement of nutrition and increase local productivity and income.