Energy-efficient Greenhouse and Vertical Farm

Greenhouse

By Katrien Van Crombrugghe

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Energy-efficient Greenhouse and Vertical Farm
Energy-efficient Greenhouse and Vertical Farm
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Invest in a year-round vegetable production through energy-efficient greenhouses and vertical farms, equipped with advanced and sustainable technological solutions and processing facilities. Examples of companies active in this space are:

Everyday Farm (EF) was established as a joint venture in 2012 to introduce Japanese agricultural and solar technology. Japanese Bridge LLC Along with operating Mongolia's second largest solar farm, EF operates a solar-powered greenhouse and cold storage, and is currently developing a winter plant factory. Everyday farm also resells farm equipment and tools.

Tugs Urgats LLC was established in 2016 with the first glass greenhouse with natural lighting with Dutch technology. The greenhouse, covering 10,080 square meters, yields 500-600 tons of cucumberharvest annually, which accounts for one fifth of the domestic consumption. In 2022, Tugs Urgats secured a 5-year concessional loan of 3.5 million USD from the Green Loan Fund of Khan Bank.

Expected Impact

Boost crop production via modern sustainable and energy efficient technologies to ensure annual supply of vegetables and fruits for local consumption.

How is this information gathered?
Updated: 8 Jul, 2023 Date of Production: 9 Jul, 2023
Mongolia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Good health and well-being (SDG 3) Gender Equality (SDG 5)

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Sector Sources
  • (1) Government of Mongolia, (2021) Towards Sustainable Food Systems in Mongolia. https://summitdialogues.org/wp-content/uploads/2021/09/ENG_sustainablefoodsystems_Mongolia_FSD_Pathway-document.pdf (2) Government of Mongolia. (2023) Economy of Mongolia. Invest in Mongolia. Economy of Mongolia (3) Mongolia's Long-term development plan "Vision 2050" https://legalinfo.mn/mn/detail/15406 (4) United Nations in Mongolia. (2022). The United Nations Sustainable Development Cooperation Framework (UNSDCF 2023-2027) https://mongolia.un.org/sites/default/files/2022-07/SF%20Eng%20last%20version7-14.pdf (5) National Statistics Office. (2021) Indicators for food security statistics 2021. https://www2.1212.mn/BookLibraryDownload.ashx?url=Indicators_for_Food_supply_2021_en.pdf&ln=Mn (6) United Nations Development Programme (UNDP). (2022). Mongolian Sustainable Cashmere Platform. http://sustainablecashmereplatform.com (7) Asian Development Bank. (2020) Vegetable Production and Value Chains in Mongolia. https://www.adb.org/publications/vegetable-production-value-chains-mongolia (8) Food and Agriculture Organization. (2022). Socio-economic impact of Global Crisis in Mongolia. FAO Presentation retreived from https://drive.google.com/drive/u/2/folders/1IQR2oXZ61L015QVwS7hj_kig-3tEyrPy on Jan 16, 2022. (9) Global Nutrition Report. (2022) Mongolia Country Nutrition Profile. https://globalnutritionreport.org/resources/nutrition-profiles/asia/eastern-asia/mongolia/#:~:text=26.5%25%20of%20adult%20(aged%2018,and%2014.5%25%20of%20adult%20men. (10) Government of Mongolia. (2022) National movement on ensuring food supply and security 2022-2027 https://legalinfo.mn/mn/detail?lawId=16530824651591 (11) Gogo (2020) INFOGRAPHIC: Vegetable price increase in winter and decrease in summer data. https://gogo.mn/r/16n0w (12) Economic Research Institute. (2023) A Rapid Assessment of the Impact of the War in Ukraine on Households and Businesses in Mongolia (13) Fresh plaza. (2021) Chinese Fresh exports to Mongolia see steady growth in Q1 2021. https://www.freshplaza.com/europe/article/9314984/chinese-fresh-exports-to-mongolia-see-steady-growth-in-q1-2021/ (14) Food and Agriculture Organization. (2022). Socio-economic impact of Global Crisis in Mongolia. FAO Presentation retreived from https://drive.google.com/drive/u/2/folders/1IQR2oXZ61L015QVwS7hj_kig-3tEyrPy on Jan 16, 2022. (15) Mongolian Customs General Administration. (2021). Customs statistics. https://gaali.mn/statistic (16) Statista. (2022) Fresh Vegetables - Mongolia Retreived from https://www.statista.com/outlook/cmo/food/vegetables/fresh-vegetables/mongolia on December 2, 2022 (17) Central Bank of Mongolia. (2022). Mongolia Food Products Imports by country in US$ Thousand 2020. https://wits.worldbank.org/CountryProfile/en/Country/MNG/Year/LTST/TradeFlow/Import/Partner/by-country/Product/16-24_FoodProd# (18) IKON News. (2022) The winter greenhouse project will be financed with a green loan from KAAN Bank. https://ikon.mn/n/2h8j (19) Eagle. (2019) Food consumption and Import. Retreived from http://eagle.mn/r/61579 on Jan 16, 2022. (20) Food and Agriculture Organization. (2019) Organic Agriculture and the Sustainable Development Goals: Park of the Solution. https://www.ifoam.bio/sites/default/files/nm19_329_report_sdg_lr.pdf
IOA Sources
  • (21) Government of Mongolia. (2019). Voluntary National Review Report (22) SDG Tracker (2022) Mongolia retrieved from https://sdg-tracker.org/economic-growth on Dec 2, 2022 (23) Parliament of Mongolia. (2016). Law on Organic food https://legalinfo.mn/mn/detail/11884 (24) Ministry of Food, Agriculture, and Light Industry. (2023). Policies https://www.mofa.gov.mn/branch/gazar_tarialan/616f940a73bc4a5fc70f21fb (25) Ministry of Food, Agriculture, and Light Industry. (2023). Greenhouse farming https://www.mofa.gov.mn/branch/gazar_tarialan/616fa22373bc4a5fc70f221a (26) Parliament of Mongolia. (2019). Business entity income tax law