Italy’s Planet Farms is set to invest over £25m ($33.2m) in a new vertical farming facility in the UK.
The agri-tech enterprise, headquartered in Milan, announced that construction of the 20,000 square-meter facility will start later this year, with production aimed for early 2027.
Established in 2018 by Luca Travaglini and Daniele Benatoff, Planet Farms intends to replicate its successful site in Cirimido, Italy.
This Italian site supplies major retailers such as Carrefour, Esselunga, Aspiag, and Iper with high-quality leafy greens.
Additionally, Planet Farms began supplying Waitrose stores in the UK on April 30, with plans to announce another retail partnership shortly.
This UK investment follows a recent joint venture between Planet Farms and Swiss Life Asset Managers, part of the Swiss Life Group.
The joint venture is backed by up to €200m ($227.5m) in capital from both firms, alongside additional debt financing.
Swiss Life Asset Managers has allocated up to €125m to support the development and construction of indoor farming facilities across Europe, the Middle East, and Africa.
Moreover, another vertical farming initiative is currently underway in Scandinavia.
Travaglini, the company’s co-founder and chairman, stated: “Reliable supply chains are mission critical to our customers, and this partnership allows us to deploy the infrastructure to structurally address topical issues, including climatic volatility, a shifting global trade landscape, and sustainability.”
Planet Farms plans to provide comprehensive engineering, software, robotics, and agronomic expertise for the development and operation of these fully automated sites.
While vertical farming offers environmental benefits—such as reduced water usage, the absence of soil, and minimal pesticide reliance—it remains a capital-intensive business model. The proximity of farms to supply chains further enhances freshness.
However, many vertical farms utilize artificial lighting, including LEDs, to grow crops year-round, which often necessitates a steady influx of external investment funds to sustain growth.
Despite the recent surge in interest, several vertical farms have ceased operations as investment funds have dwindled, particularly amid rising borrowing costs due to inflation.
An example is US-based Plenty Unlimited, which filed for Chapter 11 bankruptcy in March while simultaneously securing a “commitment” for $20.7m in debtor-in-possession (DIP) financing. The company was founded in 2014.
