Vertical farming company Infarm has shut down operations in Copenhagen, Denmark.
This is the latest closure in a series that also includes operations in the UK, France, the Netherlands, Japan and Frankfurt, Germany.
The Germany-based startup says it is focusing on markets that have a clear path to profitability in 2023.
Why it matters:
In November 2022, Infarm said it would lay off “more than half” of its workforce and downsize its operations. An email from company executives cited “escalating energy prices and tough financial markets” as drivers of an overall “strategy shift.”
Copenhagen is one of several markets impacted by this strategy shift, following the Feb. 2023 closing of operations in the UK, France, the Netherlands and Japan, and Frankfurt, Germany on April 6.
Toronto, Canada is on the list of markets the company will consolidate, though Infarm’s latest update notes that it “continues unaffected.”
“We have to adapt our ambitious growth targets and increase our efficiencies to make our business profitable, and continue the pursuit of our long-term mission,” company executives said in the email to employees.
“As a result, Infarm is making a significant strategy shift and accelerating its drive towards profitability. We are focusing on Growing Centres where we have a clear path to profitability in 2023 and consolidating those where this cannot be achieved in the near term.”
A spokesperson from Infarm told AFN that the company is working on an update about its overall strategy going forward. Details of this are forthcoming, they noted.
Around the world, vertical farming companies are feeling the impacts of not just the current economic climate but also the ongoing market correction for the controlled environment agriculture (CEA) industry.
Most recently, Upward Farms shut down after nearly 10 years of operation and Kalera filed for Chapter 11 bankruptcy protection and received notice of delisting from Nasdaq. Other notable closures in the last several months include Fifth Season, Glowfarms, and Iron Ox.
In more positive news for Infarm, the company still plans to open a Growing Centre in Baltimore, Maryland to serve the tri-state US area, according to the latest update.
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