In Columbia, South Carolina, City Roots, an organic microgreen grower, is experiencing a remarkable rise in production following a recent move to a larger facility. Operating from its new location for over six months now, the company reports a production boost of 50-60 percent compared to the same period last year.
Eric McClam, representing City Roots, shared insights about their expansion, stating, “We’ve increased our production by about 50-60 percent and that is fulfilling the new business we’ve received.” The greenhouse currently cultivates 11 varieties of microgreens, including popular options such as kale, broccoli, snow pea, and sunflower.
Situated in a 75,000 sq. ft. facility, City Roots has established an energy-neutral environment. This innovative building incorporates on-farm solar energy and a geothermal heating and cooling system, contributing to its aim of becoming one of the first carbon-neutral facilities in the Southeastern United States.
This production increase comes during a pivotal time for the microgreens market. McClam remarked on the recent news regarding the closure of Bowery Farming, a New York-based vertical farming company. He noted, “We haven’t seen this affect microgreens specifically, but I am curious to know how this may shake up the lettuce market.” The implications of such closures could reshape the market for Controlled Environment Agriculture (CEA) growers.
The expansion has also enabled City Roots to increase its organic cilantro production significantly. The firm has noticed a shift in demand toward more vibrant color varieties, such as beets, rather than the traditional rainbow mixes. “Some chefs in foodservice want to delineate some of the color, flavor, and texture as opposed to using a blanket rainbow mix,” McClam explained.
Looking at the overall market, the demand for microgreens in foodservice remains steady, with signs of growth in retail sales. McClam indicates that their locally-focused approach strengthens its market position, as it reduces shipping costs while increasing the product’s shelf life.
As the holiday season approaches, demand for microgreens traditionally increases. “We see demand strengthening around the holidays, especially in early January as people focus on health. This bump continues into early February before tapering off post-Valentine’s Day,” remarked McClam.
Despite the increased production, pricing for organic microgreens has remained stable compared to last year. However, McClam conveys concern about rising production costs, particularly in packaging. “Unfortunately the cost of goods, specifically packaging-related items, has seen inflationary effects. Our prices are the same, but the cost of production has risen,” he stated.
With their expanded capacity and continued commitment to sustainability, City Roots finds itself well-positioned in a dynamic market. As questions linger about the future of microgreens and CEA, the company looks to maintain its growth trajectory while meeting the evolving needs of its customers.
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