"Greens company, Revol, announces tough move of shutting down its operations in California, as it seeks operational efficiencies in the state of Texas."
In the world of sustainable agriculture, high-tech greenhouses have been a subject of interest and debate. One advocate for their profitability is Dirk Aleven, CEO of FoodVentures, who points to successful operations in the Netherlands for years.
However, not all high-tech greenhouse ventures have been smooth sailing. The Tehachapi site, owned by Equilibrium Capital, was set to close in November 2023, but a change in course has led to a remarkable transformation at the California location.
In 2022, Equilibrium Capital attempted to sell or lease the Revol Greens site in Tehachapi, California. But the tide turned when FoodVentures, a company specialising in Controlled Environment Agriculture (CEA), was brought in by Equilibrium.
Under FoodVentures' leadership, significant changes were implemented at the Revol Greens site in Texas. Overheads were reduced drastically, from $24 million to $4 million in just three months. This was achieved by streamlining processes, empowering local teams, and slashing overheads.
Labor efficiency was also improved at the Texas site. By identifying and fixing bottlenecks and issues with the production line, man hours per kilogram were reduced by 50%. This labor efficiency improvement allowed for a 50% reduction in man hours per kilogram.
The facility in Texas has been growing leafy greens in ponds with natural light supplemented by LEDs since 2021. This innovative approach, coupled with FoodVentures' expertise, has resulted in the site currently yielding more out of 10 acres than historically was the case over the full 20-acres.
In California, FoodVentures has continued to make a difference. By reducing layers of management and the head office in Austin, overheads at Revol Greens were significantly cut. This strategic move, along with empowering local teams, has helped turn things around at the Tehachapi site.
Despite the success, Dirk Aleven acknowledges the economic challenges of vertical farming, citing eliminating natural light and potentially high labor costs as potential issues. He stresses that while CEA allows for greater control over the growing environment, the economics must add up to justify higher prices.
In January 2025, Dirk Aleven took on the role of president at Revol Greens, further solidifying FoodVentures' commitment to the site. Equilibrium Capital, meanwhile, is considering both short-term lease options and full site purchase for the 62-acre Tehachapi site.
The Tehachapi site includes 14 acres of lighted, high-tech lettuce production, 32 acres of semi-closed high-wire greenhouses, 16 acres of partially decommissioned acreage, a large packhouse, and cooler with eight loading docks. With FoodVentures at the helm, it remains to be seen what the future holds for this revitalised greenhouse farm.
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