The Economic Potential of CEA in NEO
This report with research by the student-based Oberlin Research Group (ORG) provides insights into how the Netherlands’ Food Valley became the second largest agricultural exporter after the U.S., and how Northeast Ohio could leverage this model for economic development and job growth. READ HERE
NEO Food Production & Industry Potential
Regionally funded research, The 25% Shift, shows Northeast Ohio’s farmers produce only 2-5% of local food consumption; 95% is imported. The data shows that if Northeast Ohio produced just 25% of the region’s annual food demand estimated at $10.7 billion dollars, we would create over 27,664 new jobs and $126 million in incremental taxes annually. Note, per TeamNEO there are 670+ food processors and manufacturers in Northeast Ohio. Food manufacturing is a $3.4 billion business regionally including PepsiCo, H.J. Heinz, Nestlé USA, and J.M. Smucker. State-wide food and beverage production is valued at $11.64 billion! But, a significant amount of the food they process is supplied from out of the market.
Jobs in line with other regional focuses. Bush Consulting Group’s report Defining Northeast Ohio Cluster Opportunities in the Ag-Bioscience Sector, funded by the Fund for Our Economic Future, compared FTE’s and Revenue potential among the Advanced Energy, Industrial Water, Flexible Electronics and Ag-bioscience potential focus areas. Even removing the lumber and logging numbers, the Ag-Bioscience potential to expand jobs in food packaging, production, and distribution still puts the Ag-Bioscience area at over twice the potential FTE’s and total revenue of the other areas the region is currently focused on.
Growing Industry Opportunity
The CEA industry is nascent and is expected to scale significantly over the next decade. According to Market.US, “The controlled environment agriculture market size is expected to be worth around USD 377.6 billion by 2032 from USD 74.4 billion in 2022, growing at a CAGR of 18.13% during the forecast period 2022 to 2032.This vision includes both food production and the technologies that support it.”
Food Security
The specialty crop industry is centralized predominantly in Southern California. We are all witnessing the impact of Climate Change on the area, their water sources including aquifers and the Colorado River which are experiencing dangerous reductions. Since Covid 19 and the subsequent supply-chain disruptions, it has become increasingly evident that a non-centralized food production capability is necessary to guarantee national food security. This means the development of large food production systems close to leading metropolitan areas and utilizing CEA which uses 98% less water and no pesticides.
A USDA report, states, “California produces more than half the nation’s high-value specialty crops, including many types of fruits, vegetables, and nuts.[1] Future production of these crops is likely to be affected by both reduced water availability and rising temperatures, resulting in local economic challenges and increasing food prices across the nation. The majority of the Southwest utilizes irrigated croplands. As the region continues to become warmer and drier and as the population grows, more freshwater may be diverted from irrigation use to urban areas.[1] Warmer temperatures could also result in more heat waves, a longer frost-free season, and fewer cold snaps. These changes are likely to cause crops to ripen and mature early, reducing some crop yields.[1] As climate change intensifies, a northward shift in agricultural production in the region could occur.[1”
