Key Takeaways
- Joint Venture Announcement: FarmByte (Profile) and Archisen (Profile) have formalized a 70:30 joint venture to create a smart indoor vertical farm in Johor Bahru, Malaysia.
- Investment and Scale: With an estimated capital of RM36.7 million, the 52,000-square-foot farm is expected to start operations by Q4 2024, aiming to produce over 306,000 kg of leafy vegetables annually.
- Expertise and Collaboration: The partnership merges FarmByte’s local agricultural insights with Archisen’s technical prowess in vertical farming to ensure the venture’s success.
- Economic and Social Benefits: The project aims to foster economic growth, generate employment, and promote sustainable agricultural practices in the region.
- Vision for the Future: Both companies express a commitment to innovation and sustainability in agriculture, highlighting the venture’s potential to impact food security and community development positively.
In a significant move towards advancing agricultural technology in Southeast Asia, FarmByte, a digital-first agro-food company under Johor Corporation (JCorp) Group, and Archisen, a Singapore-based agritech leader, have entered into a joint venture. This partnership, building on a memorandum of understanding from August 2023, aims to establish a new smart indoor vertical farm in Johor Bahru, Malaysia.
Project Overview
Financial and Physical Scope
The proposed indoor vertical farm, covering 52,000 square feet and requiring an estimated RM36.7 million in capital, is targeted to be operational by the end of 2024. It plans to annually produce over 306,000 kg of premium vegetables, including crystal lettuces, mustard greens, and ice plants.
Leadership and Support
The agreement was officiated in the presence of Datuk Zahari Sarip, Chairman of the state’s Agriculture, Agro-based Industry and Rural Development committee, by Mr Syed Aiman Kifli Syed Jaafar, CEO of FarmByte, and Mr Vincent Wei, CEO of Archisen.
Strategic Collaboration
Combining Strengths
This venture represents a strategic alignment of both companies’ strengths. FarmByte contributes local agricultural insights, while Archisen brings in-depth technical knowledge in vertical farming. This collaboration is aimed at leveraging their combined expertise to ensure the project’s success.
Investment in Partnership
The joint venture is underscored by FarmByte’s RM12.2 million investment in Archisen, reflecting a strong commitment to the partnership’s longevity and the mutual goal of fostering innovation in agriculture.
Economic and Social Impact
Empowering Communities
Mr Syed Aiman highlighted the venture’s role in strengthening Malaysia-Singapore economic ties and FarmByte’s commitment to innovation in farming. He stated, “Indoor vertical farming has been on our radar as an innovative farming method. This joint venture provides us with the opportunity to gain valuable insights and expertise on innovative, high-technology solutions to enable more sustainable and efficient farming practices.”
Creating Opportunities
Echoing the sentiment, Mr Wei emphasized the venture’s alignment with Archisen’s mission to innovate for food security. “Innovation, to serve the ultimate goal of food security, is key to what we do at Archisen… This aligns perfectly with ours, and we look forward to nurturing a thriving relationship with FarmByte,” he remarked.
FarmByte Latest News
FarmByte and Archisen Partner (2023/11/15)
FarmByte Sdn Bhd and Archisen Pte Ltd have signed a HoA to develop vertical farming operations in Johor with an investment of RM8.2 million. FarmByte will provide farming infrastructure and local market insights, while Archisen will bring technical expertise in indoor farming and provide comprehensive training. The partnership aims to enhance food security, leverage technology, and drive innovation in the agro-food sector of Malaysia.
FarmByte & Archisen: Pioneering Urban Farming in Malaysia (2023/09/08)
FarmByte and Archisen have signed an MoU to establish an automated vertical indoor farm for Asian greens in Johor, Malaysia. The partnership aims to merge technical prowess and resources for this pioneering venture. FarmByte will set up the farming infrastructure, and Archisen will offer guidance on indoor farming methodologies and technological aspects. This initiative aligns with Singapore and Malaysia’s focus on food security and self-sustenance, particularly in vertical farming. Through digitization, FarmByte aims to revolutionize the agri-food sector, while Archisen is at the forefront of agritech innovation, with Cropdom providing a complete urban farm management solution.