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Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as www.localsalads.com Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

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Page 1: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial Hydroponics- Is It Viable? Commercial Hydroponics- Is It Viable?

Presented by Grahame Dunling CEO, Chief Visionary and Founder-

Of HGS Ltd Trading as

www.localsalads.com

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 2: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Water is Food, Food is Life. No Water-No Food! Simple.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 3: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

“Food security exists when all people, at all times, have physical and economic access to

enough safe and nutritious food to meet their dietary needs and food preferences for

an active and healthy lifestyle”•To be "food secure" means…

Food is available / Food is affordable / Food is utilised

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 4: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Food and Water Security-How they link up?

04/18/23 Presentation is copyright of ISH, IndiaPresentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 5: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Situation on Ground

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 6: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

With This Presentation Aims….With This Presentation Aims….

• To bring to each one present here an awareness of a methodology of cultivation called Soil-less Cultivation/ OR Hydroponics.

• To educate the participants of how this technology can play an important part in helping conserve water and yet derive yields of unimaginable magnitudes.

TO ESTABLISH THE VIABILITY OF HYDROPONICS IN URBAN COMMERCIAL TERMSPresentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 7: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

• Hydroponics is not new Commercial growers have been growing this way for 20+ Years

• 98% of them grow pesticide free, and use IPM for pest control.

• There is a growing demand for high quality, microbe free, Local Grown Salads, medicinal and aromatic plants.

• People are now aware of dangers of pesticides, global warming and its ill effects.

• Consistency, quality and yields possible only by modern techniques of cultivation.

• Automation can help reduce the cost of production.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Background Background

Page 8: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

There is a Need for ChangeThere is a Need for Change

• The definition of Insanity is……….doing the same thing everyday, but expecting a DIFFERENT result……..

• A leap of faith is needed by one and all to try new methodologies of sustainable cultivation.

• We are not talking of reinventing the wheel just Redesigning the Tyre that fits the wheel.

• In other words we are taking Proven commercial systems and introducing them to the Indoor Urban Growing World.

• Local Salads presents………• One Partial solution….Indoor Vertical Urban Growing

In Soil-less Cultivation/ Or Hydroponics.

Page 9: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

What is Hydroponics• Hydroponics Is the practice of growing plants without soil. • Plants can be grown in plain nutrient solution or in sterile substrates,

therefore microbe free.• Hydroponics uses less than 1/10th - 1/5th of the water used in soil

cultivation. Saves a lot of water.• No weeds to deal with. Higher and more Controlled yields.• Most Hydroponic crops are grown in Glasshouses • But they can be grown on Land that is unsuitable for anything

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 10: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 1 Benefits of Hydroponic Cultivation- 1

Field versus Soil-less grown Open field • Farmer has no control on environment, weather dependent.• Yields are not accurately predicted.• Budgeting is ineffective. • Cannot always ensure adequate aeration of the root zone.• Although now Hydroponic crops can be field grown (Outdoors) you are still dependant on the weather.

Indoor Urban Hydroponics• Gives the grower effective control over the environment similar to a Glasshouse. • Yields are very predictable and also consistent over 365 days • Budgeting is easier, as an insulated building is not weather dependant.• Root zone aeration as well as adequate porosity of medium is ensured.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 11: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 2 Benefits of Hydroponic Cultivation- 2

Plant nutrition

• Hydroponic nutrient solutions can be tailored to the plant’s requirements, whereas in the field there is a tendency to over or under-fertilise.

• Hydroponic produce has all the macro-micronutrients that are needed by the human body.

Where as Soil Grown • Nutrients in the soil are often fixed as insoluble compounds that are not

available to plants and therefore a loss to the grower. • Uneven nutrition is ensured by virtue of leaching and sloping of land

gradients.

• Irrigation water in field grown operations cannot be effectively recycled.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 12: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 3Benefits of Hydroponic Cultivation- 3

Water Security and Savings

• Hydroponics can reduce irrigation water usage by 70% to 90% by recycling the run-off water.

• As water becomes scarce, and important as a resource, the use of hydroponics and other water saving technologies is needed now and is poised to increase in time.

• In arid countries water can be shipped in and stored and when this is recycled the growing of crops is made possible.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 13: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 4Benefits of Hydroponic Cultivation- 4Microbial Diseases

• Fungal disease can be significantly reduced through controlled humidity.

• Hydroponic systems will reduce the amount of exposed moisture in the growing environment.

• Hydroponics will effectively prevent wetting of the leaf surfaces, which in normal open Field Horticulture, provides the fungal spores with the perfect medium to proliferate.

• Hydroponics eliminates the possibilities of root diseases by allowing sufficient porosity for drainage of excess water as well as increases oxygen availability to the root zone.

• Root zone temperatures are maintained as is ideal to ensure good growth of the plant.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 14: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 5Benefits of Hydroponic Cultivation- 5

04/18/23 Presentation is copyright of ISH, India

Labour

• Weeds are a major problem in Soil cultivation and calls for the use of harmful herbicides. Most Field Growers spend an enormous amount of money on labor or chemicals for weeding.

• All labour inputs associated with soil management, such as Cultivation and weeding are eliminated with hydroponics.

• Substrates being sterile and inert, do not influence or allow weeds to flourish.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 15: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 6Benefits of Hydroponic Cultivation- 6

04/18/23 Presentation is copyright of ISH, India

Pest Management

• The use of Integrated Pest Management (IPM) in protected environments is ideally suited to hydroponic growing techniques, especially when carried out in a protected environment such as a glasshouse or Indeed Inside a warehouse.

• The use of IPM can virtually eliminate the need to use toxic and expensive chemical pesticides.

• Whereas IPM is much more difficult in open Field Soil cultivation and calls for near total use of dangerous, and in some cases life threatening chemical pesticides.

• Diseases and pests from neighboring farms can cause spread of diseases in one’s field crops.

Pest Management

• The use of Integrated Pest Management (IPM) in protected environments is ideally suited to hydroponic growing techniques, especially when carried out in a protected environment such as a glasshouse or Indeed Inside a warehouse.

• The use of IPM can virtually eliminate the need to use toxic and expensive chemical pesticides.

• Whereas IPM is much more difficult in open Field Soil cultivation and calls for near total use of dangerous, and in some cases life threatening chemical pesticides.

• Diseases and pests from neighboring farms can cause spread of diseases in one’s field crops.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 16: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Benefits of Hydroponic Cultivation- 7Benefits of Hydroponic Cultivation- 7

04/18/23 Presentation is copyright of ISH, India

Kinds of Hydroponics

• Local Salads Hydroponic Model is a means for small and medium Growers to manage small facilities , Growing Crops Vertically for commercial gain.

• This is a much needed system for countries that have a need for food security and also Local Grown produce.

• Commercial Hydroponic Greenhouse systems are capital expensive in the beginning but pays off rich dividends depending upon the produce cultivated, the markets these are sold to and the remuneration thus achieved by sales of premium fresh produce in the right niche segments.

• When compared to Soil cultivation, Hydroponics reduces the need for farm equipment, reduced labor , reduction of crop losses, gives consistent and predictable yields. This is what is needed in the Urban / Local Grown Market Commercial systems producing Commercial Yields.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 17: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Hydroponic/Urban Growing Hydroponic/Urban Growing

04/18/23 Presentation is copyright of ISH, India

Plants grown in Urban Hydroponics… Can be protected from increasing and damaging UV radiation Offers the possibility of safe biological control of insect pests and

diseases. Uses Water that is reclaimed and reused. Allows nutrients to be reclaimed, re-balanced and re-used. Can be protected from unpredictable weather patterns. Have a good root system that is not at risk from contaminants and

diseases. Make efficient use of labour, which is increasingly expensive. Can be grown to take full advantage of their genetic potential Produce outstanding crops by using optimum nutrient

formulations. Off season production possible when market prices are highest.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 18: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Summary of the BenefitsSummary of the Benefits

Reduced water consumption Improved Produce Quality Increased Yields and Growth Rates Longer Shelf Life Less labour inputs . Higher Value Crops Extended Growing Season Cleaner more Hygienic Working conditions Lower Labour Costs More Pests and Diseases Control No Soil – No Problem Environment Control More Market Control Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 19: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Possible Beneficiaries from Urban Commercial HydroponicsPossible Beneficiaries from Urban Commercial Hydroponics

04/18/23 Presentation is copyright of ISH, India

Promotion Of Local Grown Produce “ Local Food For Local People”

• Retail Chains• Private Investors• Public Sector Companies• Hotel Chains• Fast Food Chains• Processed Food Industry as Backward Integration• Catering companies• Corporate Hospitals• Large land owners and Redundant Building Re-Use• NGO’s• Foreign Retail Companies (Outsourcing)• Defence establishments• Public-Private Partnerships.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 20: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

04/18/23 Presentation is copyright of ISH, India

Commercial Hydroponic Horticulture

World Hydroponics –Acreage under cultivation• There has been massive growth in hydroponic cultivation in a number of forward

thinking countries. • For instance, in Australia, the area under hydroponic crop production went from

155 to 2500 hectares from 1990 to 2008. • This is just the beginning. • The world commercial hydroponics industry has grown 4 to 5 fold in the last 10

years and is currently estimated at between 80,000 and 120,000 hectares with a farm gate value of US$6 to 15 Billion.

The new belief• The future lies in locally grown and sold produce limiting the “Food miles”. • This method of growing our food is a more sustainable model than those currently

practised. • The consumer is becoming increasingly concerned over health issues,

environmental issues, even water consumption cost and availability……… these all are drivers for the further development of Indoor hydroponic growing techniques.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 21: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Hydroponics-Commercial Viability-Executive Summary

04/18/23 Presentation is copyright of ISH, India

• Commercial Hydroponics Covers nearly 50000 Ha globally.• Main countries are Holland, United Kingdom, Spain,

Australia, USA, Canada, NZ, Italy, Canada, Mexico, China.• Main crops are Cucumbers, Tomato, Lettuce, Strawberry,

Herbs, Capsicums, cut flowers etc but not limited to these alone.

• Follows IPM.• Follows recycling methods.• Has market focus.• Is a proven industry model.• Most producers are in cluster production and have co-

operatives for selling produce. Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 22: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Viable production Units

04/18/23 Presentation is copyright of ISH, India

How much does this cost ?

•As a rule of thumb- in the order of one acre or

more.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 23: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

General costs of setting up Hydroponic Greenhouses

04/18/23 Presentation is copyright of ISH, India

• Between 150-200 USD per Sq.m in developed countries.

• But Land is running out for Large Scale Glasshouse units.

• Local Produced Salad Crops can be Grown in redundant Urban buildings.

• Can also be grown Vertically therefore using Less Land • Therefore cutting down on Food miles • Also producing Local Jobs for the economy

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 24: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Skill Required to Handle Hydroponic Systems

04/18/23 Presentation is copyright of ISH, India

• Same or a little more than soil systems.• Provides a more stable working

condition.• Also means less heavy lifting by the

operators.• Therefore is more worker friendly

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 25: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial success is linked to…

04/18/23 Presentation is copyright of ISH, India

• Establishment of venture in realistic economic framework.

• Attention to market requirements before start up.

• Realistic expectation of prices, yields, labor requirements.

• Experience in prior horticultural pursuits.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 26: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Is it a magical production system?

• No. Not Plug and Play.• Needs diligence and devotion.• Is not forgiving.• Needs skill but achievable.• Over confidence can kill crops.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 27: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Basics needed to start a Hydroponic System.

• Capital costs.• Trained Manpower.• Education required.• Attention to shifting market demands.• Attention to crop growing or cultural practices.• Knowledge of IPM.• Knowledge of Environment Controls and computer skills.• Knowledge of Climate Controls. ( Full Training Given)• Knowledge of Bio-friendly insects. (All Company Trained)

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 28: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Is the Hydroponics Industry Expanding?

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Yes

Page 29: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Do we need leadership?

Yes, we need to convene an association for Commercial Hydroponic Growers once we have started the first commercial system growing Local Produce in an Urban Environment .

There is a Glasshouse association for the Protocols for growing crops in the UK /Holland

We need the same for Indoor Urban Growing.Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 30: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Do we need to formulate Industry standards?

Yes, we need to use Commercial Hydroponic experts to start with.

This is an absolute must as there are no resources in place for Protocols. Industry standards will be established as time goes by as more People adopt this kind of cultivation. Local Salads want to be among the first to introduce these and to be the Leader to introduce the quality standards that the consumer demands for there food security.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 31: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

How is Hydroponic Produce marketed normally?

It is marketed more on the quality and consistency, rather than the method of production.

“Local Salads” Has an opportunity to exploit this Market by Marketing the Local salads Brand as a world wide Local Salad producer.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 32: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Hydroponics- A Commercial Production System

• Hydroponics as an Horticultural production system includes those activities, which have the potential to displace conventional soil based horticultural production.

• We Can introduce automation and also a Clean growing environment giving workers nice working conditions and a more Blue collar production operative sooner than a “Muddy Boot Farmer”.

• The whole process can be “In House” from sowing through to harvest therefore giving full traceability and an open book on the food you are eating.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 33: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

History of Hydroponic Commercial Use

• Has been used in a commercial sense by the US military since the 1940’s and by the NASA since the 1960’s.

• 1980’s and 90’s saw greatest commercial Glasshouse growth of hydroponics.

• Now in the 2000’s robotics is also employed for planting, harvesting , Grading and packaging of produce.

• Tomatoes can be graded at a rate of 130 tomatoes a second for both size and color.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 34: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Types of Growing Systems

• Indoor• Full environmental control over

the elements.

• Outdoor• Depends upon the environment.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 35: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Types of disposal of nutrient waste

• Run to waste (OPEN)

• Recycled.(RECIRCULATING)

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 36: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Media Types

• Water Based for short term crops like lettuce, leafy vegetables, herbs.

• Media Based like Rockwool, Perlite, vermiculite, peat moss, coir peat, gravel, sawdust etc for long term vegetable and flower crops.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 37: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Types of Systems

• Nutrient Film Technique (NFT)• Ebb and Flow• Flood and Drain• Media Based such as grow bags using

drip method.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 38: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Global Hydroponic Industry

• Countries practicing are Netherlands, Spain, Canada, USA, Mexico, France, Japan, Australia, NZ, Israel, UK, S. Africa, Italy, Finland, Korea, China, Greece, Brazil, Taiwan, Singapore, Oman, Saudi Arabia, Bahrain, Qatar.

• Pakistan has joined the bandwagon recently. • India also, but only some 30 ha in floriculture.• More than 120000 ha under GH Hydroponic production

around the world. Total value of produce is 15 Billion USD.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 39: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

International trends in the Industry• Indoor Growing and Vertical Growing is now taking Place

among Commercial growers but inside Glasshouses. The need for this to be implemented on a Local Urban scale is High

• Internationalization of supply of FFV.• Producers must join this system for survival.• Forward linkages with Intl food companies.• Producers working in clusters. (Info sharing and marketing

cost sharing)• International rationalization of production and standards.• The chance to Implement a Global Brand in an already

established Business model.Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 40: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Local Salads Opportunity

• Production and Transport costs are increasing there by the need to Produce High quality “Local” produce is increasing.

• The US has rich Unused Urban Buildings positioning us favorably to market such produce.

• Labor costs are Increasing as well as inputs this makes an ideal opportunity for “Local Salads”. After IT- it’s Local Food!!!

• Local Salads can address both domestic as well as International markets such as UAE/EU/USA/Far East.

• We want to Standardize the operating protocols.• A country that can produce super-computers, satellites can

definitely adopt Indoor Urban Hydroponics .Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 41: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Marketing Channels for Hydroponic Produce

• Wholesale Channels• Retail Channels• Major buyers will be supermarket chains/

Restaurants and Local markets.• Many Glasshouse producers have formed

cooperatives to help sell their produce.• Commercial Growers specialize in one type of

produce mainly, and have full control over their produce.

• They do NOT Grow multiple crops.Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 42: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Marketing of Produce as Hydroponic

Local Salads Urban Produce •Can be sold as Hydroponic produce at retail level.•At wholesale level sold on basis of quality, consistency and labeled as “Living Micro-Leaf” or “Living Lettuce” etc.•Hydroponic Produce must emphasize on “Clean and Green”.•All Under the “Local Salads” Brand name•Grown Commercially But inside a Building.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 43: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Price Premium on Hydroponic Produce

Local Salads Urban Produce •Should not and does not compete with soil grown produce.•Usually will gain a better price based on looks, texture, taste, consistency on daily basis, high nutrition value, reliable supply year round etc.•Extent to which premiums are realized are based on seasonal volumes, marketing, presentation (Branding), product quality.•Grown Indoors so does not have the texture problems associated with Outdoor crops

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 44: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Local Salad Customers

• Sales opportunities abound from the US wanting to produce More sustainable foods due to better production and Reliable Yields that are achievable.

• One Market for the Salads are Supermarket Chains that want to gain more customer support by having a sustainable growing unit next to there site which can include Anaerobic Digestion units for the waste or out of date food.

• The growing system can be Produced Locally using Local Labor for the production of this unit if needed.

• Freight costs in the US are high at this time and with Local Salads units we can reduce the “Food Miles”.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 45: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Seasonality of production Local Salads Urban Produce• Hydroponic Greenhouses are capable of producing year

round which includes off season vegetables and herbs due to controlled conditions.

• Local Salads : Growing units will be Located in reused Urban Buildings therefore we will eliminate the need for expensive Heating (In winter) & Cooling ( In Summer).

• Glasshouse growers also use supplementary lighting, so although we need lighting it is not such of an added cost as people think.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 46: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Impact on Environment & Human Health• Commercial Hydroponic systems do not use run-to-

waste but use nutrient recycling systems which is good for the environment.

• Indoor Urban Growing has the ability to blend aesthetically with the surrounds thus reducing “Visual-Pollution”.

• Residue testing is already being done by most growers to ensure that there are no excess residues of nutrients at time of harvest.

• By using Solar Power collectors on the roof of the Buildings we can lower the carbon footprint that is associated with Urban Growing.

Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 47: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

SWOT ANALYSIS- Commercial Hydroponics Local Salads

Strengths

• Makes any land with good water source useful for production.• Nutrient and pH controls very accurate and effective.• High Yields from Smaller spaces, Vertical Growing possible • Facilitates the easy adoption of IPM. • Climate certainty, both in temperature and Humidity.• Root zone temperature is therefore eaisly maintained. • Effective drainage and availability of root level Oxygen.• Production possible in difficult environments.• Cross Pollination avoided.• Needs less land to grow more. Conserves water by lower usage..

As the evaporation process is Less and also there is no “Drying out due to either wind or direct sunlight.

• Contd…….Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 48: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Strengths…..• Produce can get premium prices as it is grown Locally so it is “Fresh”• Produce appeals to discerning customers as there is no detrition in quality • Can target more niche markets.• Can be set up in urban areas without disturbing the ecology.• By using commercial techniques it requires Less labor means lower costs.• We will use the same growing protocols for each crop, and dedicated

supply chains will be established.• There is already a Global market potential for hydroponic produce.• Growers will specialize in just one product line ( leafy Salads) ( Tomatoes)

ect• Hydroponic assistance is now available World-Wide.• Dedicated Hydroponic Urban Indoor farms are a near term reality.• Commercial Research centers in Hydroponics ( Already established) can

help create and disseminate protocols and cultural practices for vegetables, herbs, flowers and aromatic and medicinal plants.

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Weaknesses

• No industry association or bodies in Indoor Urban hydroponics yet.• Higher Capex . Although only the same as commercial growers

use.• Needs highly effective marketing. Again the same as Commercial

Growers.• Growers must specialize and carve a niche for themselves.• Branding is a must for success.• The technology is NOT New, but people need educating as to the

Benefits.• Needs more diligence and devotion.• No Commercial aware Manpower at the moment is available, • Cannot compete with soil grown produce and not comparable

“apple to apple”. • Often misinformed people think “Home Hobby” Scaled up is

Commercial.Presentation is copyright of Hydroponic

Growing Systems Ltd / Local Salads.

Page 50: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Opportunities Local Salads •To promote hydroponic produce, where appropriate, as low or no chemical use and sustainable.•Chance to develop and certify hydroponics as organic.•The “Local Salads” Brand can help to achieve better returns.•The Ability to brand, package and sell produce as clean, healthy and unique.•Phasing out the use of Soil Growing will call for technologies that use low chemical, low water use systems like Hydroponics.•Opportunity abounds in creation of more growth products such as Living Produce sold direct to the end users or Supermarket groups each having a “Local Salad” Unit growing for them. •Can use Anaerobic Digesters so the waste food ( Out of date food) from supermarkets can be used to offset the running cost. Also creating sustainable practices as lower transport cost are involved. •Special gingers, saffron, turmeric etc which are cash crops can be grown

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Threats

Local Salads

•Cheaper Soil grown Produce, Hydroponic Urban grown produce must not compete on price, but on quality and continuity of supply 365 days a year.•Certain soil grown produce are being marketed vigorously and may be a threat to hydroponic produce. Like “Calyx-On Tomato or Vine Ripened” for example. Not Applicable •Imports from even cheaper countries of hydroponic produce could be a threat, This cannot compete on Local Grown Fresh produce.•Some consumers have this perception that Hydroponics is unnatural. Most of the Salad crops that are in the shops is grown by Hydroponics.•Growers must organize themselves with unity and make lasting supply arrangements to be in profitable markets. With Local Salads the same seeds and growing practices are used where ever they are Located.

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Page 52: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

How to get the best from Hydroponics Local Salads•Growth is being driven by demand for safe, hygienic foods.• Selling and Marketing “Local Produce” to achieve market critical mass.•Induction of Corporate interest in production and marketing.•Multi-site operations, with full time employees, close to the markets.•Study tours of countries heavily in the field of Hydroponics.•Adopt best practice, use of IPM, use of re-circulating systems.•Product value addition by way of smart packaging and first stage transformation.•Larger Hydroponic units must be adopted in order to supply consistently produce the whole time. Big supermarket chains, star hotels, corporate hospitals need this assurance, which when given assures a steady market. Therefore Vertical Growing is a reality.

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Page 53: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Hydroponics -Present Status

Local Salads•To the best of our knowledge in the US…. •Hydroponics is being practiced by some People who Are growing “Aquaponically” in some states presently.•Or on rooftops in a single Layer facility again using Glasshouses which are weather dependent and need heating and Cooling and even in Hydroponics they use more water than an Indoor Urban Farm.•The other Hydroponics being practiced has been taught by individuals, etc from the Hydroponic or the Aquaponic companies, But these are based on home hobby Growing systems and not the automated commercial systems that are needed.•People are trying to “Commercialize” Vertical growing, but it is already in use by Commercial growers.

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Page 54: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Requirements for a commercial Indoor hydroponics system

Local Salads•Capital: Hydroponic systems are high in Capex.•Location and Siting is very important. •Climatic conditions are not an issue.•Water must be of good quality in chosen area. Must be tested prior before buying land and must be the perennial source. Chemical quality is vital.•Choice of right crop and a potential market.•Proximity to markets.•Lower Logistics cost involved.•Good Agronomists selected prior with ground level experience. No theory masters.

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Page 55: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

3 types of successful commercial Hydroponic operations

• Type 1Boutique style growers with a niche market close by.Produces special produce. Eg. Culinary Herbs, Leafy Salad crops • Type 2Family farms owning Multiple sites that are part of The “Local Salads

Group”. Product sold by Local Salads Brand and achieves greater economies of

scale.• Type 3Corporate automated farms with investors who are not in day to day

operations but left to a central management. Has a production supply that is sufficient to capitalize on economies of scale.

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Page 56: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Risks & Reasons for Failure Why Indoor Farms are not successful

•Venture not established in a realistic Commercial framework like Automated crop Management ect, Also poor cash flow due to the high Labor demand of the installed growing system etc.( Sweetwater, Aqua Vita Farms,)•Selection of system/crop/markets/ Also Multi cropping is the practice.• correct Horticultural management is not in Place.•Crop production management techniques inadequate.•Yield and quality did not meet budget projections.•Lack of diligence on part of the crew.•Non adherence to growing protocols.•Insufficient attention to marketing.•Lack of necessary labor.•Incorrect pricing of produce.•Product not tailored as per demand.

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Page 57: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Profitability is Linked to…….. Local Salads

Industry profitability is directly linked to…• Production scale, increasing returns to increasing size. Ability to

supply promised amount with quality and consistency.• Wherever Located the same growing systems and protocols are

used.• The same quality seed and growing media are also used.• The same packaging for the same crop is used wherever grown,

therefore giving that security in a Brand name.• The nutrients to be used are to be branded Under the Local Salads

brand.• Growing units will be the same for each crop so growing protocols

and management of the unit will be easier. • Capacity to Value add and/or.. Find and exploit a unique and high return/value market niche.

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Page 58: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Features of a Commercially Successful Producer

• Ability to learn and rapidly expand operations after learning curve is completed and markets established.

• Willingness to seek and share information on production and markets to compliment each other’s strengths.

• Working in cooperation with other growers under the Local Salads Brand.• Effective utilization of Investors funds including government grants and subsidies.• Take part in field trips to explore and implement new Crop markets.• Must try to attain the highest possible world standards like USDA/EUREPGAP etc.• A scale of production that permits cost efficiencies and must be of interest to

major corporates.• Ability to supply year round.• Ability to pack and sell hygienic produce and value add.• Maximum use of IPM.• Constant R&D is a must to improve systems and processes and lower wastages.• Competitive pricing.• Success must be focused up on market needs rather than just technological

innovation. Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.

Page 59: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial HydroponicsCommercial Hydroponics

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Page 60: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial Vertical HydroponicsCommercial Vertical Hydroponics

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Page 61: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial Vertical HydroponicsCommercial Vertical Hydroponics

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Page 62: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Commercial Vertical HydroponicsCommercial Vertical Hydroponics

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Page 63: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Hobby HydroponicsHobby Hydroponics

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Page 64: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Word of Caution

• This presentation is only intended as a broad indicator of industry profitability and to provide a check list to potential investors.

• It is not intended as an endorsement of any particular system or enterprise.

• Every investor is advised to do his own study before investing.

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Page 65: Commercial Hydroponics- Is It Viable? Presented by Grahame Dunling CEO, Chief Visionary and Founder- Of HGS Ltd Trading as  Presentation

Conclusion• The Commercial Hydroponics industry is a successful industry and is

rapidly expanding.• Indoor Urban Growing IS GOING to take place but Commercial

Practices must be implemented. • The market is larger than opined as produce is sold on quality rather

than production method.• Hydroponics cannot displace bulk commodity items.• The industry is expected to grow exponentially as conditions of soil

growing is becoming difficult.• Government intervention and university interest can propel the use

of this technology.The World is Waiting , Let’s do something…QUICKLY..

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Presentation is copyright of Hydroponic Growing Systems Ltd / Local Salads.