Hydroponics today, is promising to be one of the most innovative, profit centers in the future. It could create new jobs, support services and capacity to feed the world. Although the industry has its fair share of naysayers, the hydroponics farm costs, margins and profits may convince entrepreneurs otherwise.
Low Market Penetration at this stage
At this point, the hydroponics market has a very low percentage of the greater food production industry. Compared to the $143 Billion in revenues, hydroponics account for only $607 million dollars. If we are to expect hydroponic farming to overtake traditional agriculture, then this low market penetration is a major opportunity. Companies that change this percentage drastically will stand to make billions in profits.
Decreased Hydroponics Costs
Of course, indoor commercial space can be expensive. However, growers are lowering their commercial costs with LED lighting and low energy consumption infrastructure. By using the most efficient lighting to grow their crops, these companies increase the crop yields. Needless to say, the increased yield in production leads to lower costs and higher profit margins. If possible, your hydroponics business should continue to lower the production costs.
New Legal Requirements To Watch
For now, a hydroponics farming business requires the basic permits, licenses and quality standards of other agricultural business. In the near future, we could see the increased legal requirements and legislation to regulate hydroponics farming. At a commercial scale, producing companies may have to comply with higher standers or specialized licenses. In fact, there could be increased inspections by the government. For anyone serious about this business, you will want to pay attention to the developing legal landscape of hydroponic operations.
source: Business First Family. Com