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From the article (thanks @timdoor) : "Freight Farms’s repurposed shipping containers, packed with LED lights, sensors and hydroponic systems and producing lett

From the article (thanks @timdoor) : "Freight Farms’s repurposed shipping containers, packed with LED lights, sensors and hydroponic systems and producing lettuce and herbs, are appearing in vacant lots and alleys. The sealed containers can yield about 500 full heads of lettuce a week, year-round—even in Minnesota and Canada, where some of the 25 units sold so far by Freight Farms now operate. Co-founder and Chief Executive Brad McNamara said the units sell for $76,000 each and require no pesticides." - locally, a head of lettuce is $1.25 (Tucson, Arizona close to lettuce growing areas) - 500 a week makes $625 a week, or $32,500 a year in revenue - average $2706.25 per month revenue. - a 5 year lease with $1 buyout on $76,000 would be $1580.80 a month based on terms I used to sell capital equipment for. $2706.25 - $ 1580.80 = $1125.45 per month, before paying employees, electricity, and cost of location. What does lettuce cost in other areas?

dshanahan 12y ago
Lettuce is about that in farmers markets in Vancouver, certain places in SF. I think the nuances of micro-markets make it hard to make any blanket statements but these types of food production innovations are starting to change the game.
mcpherrinm 12y ago
In parts of remote northern Canada where food needs to be flown in, a head of lettuce might cost $5. But land is essentially free. It might make a lot of sense in a situation like that, especially if it's owned by a local nonprofit who just want some food for the locals.
IndianAstronaut 12y ago
>$2706.25 - $ 1580.80 = $1125.45 per month, before paying employees, electricity, and cost of location. If it makes half of that in profit per month, the interest rate on it would be better than a lot of offerings on the market. Also, the no pesticides might add a market premium.
brianbreslin 12y ago
Wholesale or retail? A head of organic lettuce (which is what you're comparing to) is about $3 in florida. MAYBE $4 if its a fancy looking variety other than iceberg.
notatoad 12y ago
Locally, a head of lettuce ranges from $1.25-ish in the summer for a good full crisp head of lettuce to $4 in the winter for a little wilted tasteless thing, and the lettuce from the "eat locally" CSA program is even more. If they can do good fresh lettuce for a couple dollars year round, they should be able to make some money. A 40' container probably shouldn't even require one full time staff to harvest, it could be feasible for a grocery store to operate one of these. Dedicate a few staff hours per day, sacrifice a few parking spaces.
cloudwalking 12y ago
$1.25 isn't wholesale though. I wonder what the supermarket is paying.
- chiph 12y ago
  And then there's spoilage, and returns by customers (some people will return anything to a store..)
nl 12y ago
I find this very interesting. A bit of Googling found a number of sites that attempt to calculate the best vegetables to grow at home in terms of cost-to-buy[1]. It turns out that lettuce is a pretty good choice, since I suspect it sells better than the few items above it on the list. [1] eg http://www.cheapvegetablegardener.com/most-profitable-plants-in-your/ http://www.cheapvegetablegardener.com/most-profitable-plants...

dshanahan 12y ago

Lettuce is about that in farmers markets in Vancouver, certain places in SF. I think the nuances of micro-markets make it hard to make any blanket statements but these types of food production innovations are starting to change the game.

mcpherrinm 12y ago

In parts of remote northern Canada where food needs to be flown in, a head of lettuce might cost $5. But land is essentially free. It might make a lot of sense in a situation like that, especially if it's owned by a local nonprofit who just want some food for the locals.

IndianAstronaut 12y ago

>$2706.25 - $ 1580.80 = $1125.45 per month, before paying employees, electricity, and cost of location. If it makes half of that in profit per month, the interest rate on it would be better than a lot of offerings on the market. Also, the no pesticides might add a market premium.

brianbreslin 12y ago

Wholesale or retail? A head of organic lettuce (which is what you're comparing to) is about $3 in florida. MAYBE $4 if its a fancy looking variety other than iceberg.

notatoad 12y ago

Locally, a head of lettuce ranges from $1.25-ish in the summer for a good full crisp head of lettuce to $4 in the winter for a little wilted tasteless thing, and the lettuce from the "eat locally" CSA program is even more. If they can do good fresh lettuce for a couple dollars year round, they should be able to make some money. A 40' container probably shouldn't even require one full time staff to harvest, it could be feasible for a grocery store to operate one of these. Dedicate a few staff hours per day, sacrifice a few parking spaces.

cloudwalking 12y ago

$1.25 isn't wholesale though. I wonder what the supermarket is paying.

chiph 12y ago
And then there's spoilage, and returns by customers (some people will return anything to a store..)

nl 12y ago

I find this very interesting. A bit of Googling found a number of sites that attempt to calculate the best vegetables to grow at home in terms of cost-to-buy[1]. It turns out that lettuce is a pretty good choice, since I suspect it sells better than the few items above it on the list. [1] eg http://www.cheapvegetablegardener.com/most-profitable-plants-in-your/ http://www.cheapvegetablegardener.com/most-profitable-plants...