Re-export to Smart Farm Powerhouse Japan... 20 Years of Aluminum Technology Know-how
Expansion to Australia and New Zealand... "First Domestic Export to Western Countries"
Smart Farm Pilot Operation in UAE... Accelerating Export of Korean-style Model to the Middle East
GreenPlus' tomato-dedicated smart farm established in Kyushu, Japan. It is used by the major Japanese food company 'Kagome'.
[Yesan, Chungnam = Asia Economy Reporter Lee Junhyung] The era of smart farms is dawning. A smart farm is an advanced farm that maximizes crop growth by controlling light, temperature, and other factors using cutting-edge technology. As food supply becomes unstable due to climate change and population growth, smart farms have rapidly emerged as an alternative to traditional farms.
Greenplus, located in Yesan, Chungnam, is a domestic leader in smart farms. It is one of the few Korean companies that have early exported related facilities to Japan, a country recognized as a smart farm advanced nation. The company collaborated with Daisen, the top local firm, to build a 2 million square meter (600,000 pyeong) advanced greenhouse exclusively in Japan. This was possible thanks to their integrated technological capability to provide all processes necessary for smart farm construction, including design, equipment production, and installation. Jeong Sun-tae, director of Greenplus’s Smart Farm Division, explained, “Japan faces many challenges such as earthquake risks and significant regional climate differences. The fact that Daisen chose us as a partner to solve these issues itself proves our technological prowess.”
Greenplus's 'K-Farm,' located in Pyeongtaek, Gyeonggi, is verifying various technologies at K-Farm, which spans an area of 24,132㎡ (7,300 pyeong). [Photo by Greenplus]
20 Years of Aluminum Expertise... First Domestic Export to Western Countries
The reason the company can cover the entire smart farm construction process lies in its aluminum processing technology. The company originally started in 1997 as an aluminum extrusion and processing business. Aluminum still accounts for 41% of the company’s sales, indicating its significant weight. Since most smart farm structures and equipment are made of aluminum, the company has shown strength in producing smart farm equipment. When smart farm distribution began in the early 2000s as part of rural development policies, the company’s decision to enter the market proved to be correct.
The company also succeeded in exporting to Western countries for the first time domestically. In May, it signed a contract with Australian smart farm company Farm4.0 to supply smart farm equipment and related services in Australia and New Zealand for ten years. Director Jeong said, “Australia is experiencing abnormal weather phenomena such as hail, and the government is fostering smart farms at the national level. The smart farm-related Memorandum of Understanding (MOU) recently signed between the Ministry of Agriculture, Food and Rural Affairs and the Australian government served as the basis for this contract.”
The Western smart farm market is virtually monopolized by advanced companies from the United States, the Netherlands, and others. According to the Korea Technology and Information Promotion Agency for SMEs (TIPA), domestic smart farm technology is about 70% of that of the US and the Netherlands, with a technological gap of approximately five years. This underscores the significance of this export. It is also why the Ministry of Food and KOTRA readily supported the contract with Australia.
Thanks to these achievements, the company’s sales in the first half of this year reached 38.9 billion KRW, a 67% increase compared to 23.3 billion KRW in the same period last year. Operating profit also surged about 171% to 3.1 billion KRW during the same period. Considering the sharp rise in raw material prices, this is a remarkable accomplishment.
Smart Farm Construction in the UAE
Building smart farms that overcome extreme environments such as desert climates is the company’s next goal. The company has established a 1,653 square meter (500 pyeong) smart farm in the United Arab Emirates (UAE) and is conducting pilot operations. After the first phase of verification with a UAE government-affiliated research institute, the second phase, which verifies economic feasibility and other factors, has recently begun. A national project to convert existing greenhouses in Dubai into smart farms is also underway. Director Jeong said, “If we successfully complete the second phase of verification, which is expected to end around the end of next year, we will be able to actively export Korean-style smart farms to the Middle East.”
To create a stable cultivation environment even in desert climates, the company introduced a different ‘Semi-Close (positive pressure)’ method in the UAE. This technology more precisely controls temperature and humidity inside the smart farm by maintaining the internal air pressure higher than outside, preventing the inflow of external air.
Based on the verification results so far, strawberry cultivation in the Middle East will soon be possible. Strawberries are considered one of the most difficult crops to grow in smart farms due to their complex cultivation process.
The company is focusing its research and development (R&D) capabilities on cooling technology development. This is based on the judgment that environments similar to desert climates will increase due to global warming. The testbed greenhouses alone cover 24,132 square meters (7,300 pyeong). Director Jeong stated, “We are securing reliability by verifying technology on farms spanning thousands of pyeong. Our corporate research institute has about 20 researchers, and we are the only place in Korea with a smart farm research center of this scale.”
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