In a factory in eastern China, farming is becoming like scientific endeavor, with leafy vegetables embedded neatly on stacked layers, and workers in laboratory suits tending the plants in cleanrooms. The factory, with an area of 10,000 square meters, is in Quanzhou, Fujian Province. Built in June 2016, the land is designed to be a “plant factory,” where all environmental factors, including light, humidity, temperature and gases, can be controlled to produce quality vegetables…Full Article: The Global Times Apr 2017

Key Points

  • Currently, China has approximately 80 plant factories, aka vertical farms.
  • The plant factory in Quanzhou, Fujian Province, is owned by Sananbio, a joint venture between Sanan Group (optoelectronics) and the Institute of Botany under the Chinese Academy of Sciences (IBCAS). The factory produces roughly 1.5 MTs of vegetables per day and supplies nearby retailers/restaurants such as Xiamen-based Yonghui superstore (30% price premium vs. regular vegetables). Vegetables grown in the factory are generally harvested after 35 days, while regular greenhouses take 45 days.

ChinaAg Comments

  • In August 2015, JD.com purchased a 10% stake in Yonghui Superstores. Established in 2001 and headquartered in Fuzhou, Fujian Province, Yonghui operates 460 medium-sized supermarkets all over China (as of 2015).
  • As of early 2015, Yonghui managed 460 supermarkets across 17 provinces and municipalities (including Beijing, Shanghai, Chongqing, Zhejiang and Guizhou) making it China’s fifth largest hypermarket chain.
  • Established in 2001 and headquartered in Fuzhou, Fujian Province, Yonghui operates 460 medium-sized supermarkets all over China (as of 2015). Yonghui has seen healthy growth which the company attributes to their focus on fresh products, which occupies 40-50% of a single store’s floor space.
  • Founded in 1992 and headquartered in Xiamen, Fujian Province, Sanan Group (SHA:600703) is a Shanghai-listed electronics company whose product line include solar energy panels, integrated circuits, and various LED products. The Institute of Botany, the Chinese Academy of Sciences (IBCAS) is headquartered in Beijing.

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