Two years after surviving bankruptcy proceedings, AeroFarms risks going out of business after the US-based vertical-farming company’s main backer decided against further investment. AeroFarms filed a WARN notice with the Department of Workforce Development and Advancement in Virginia earlier in December saying the company plans to close its Ringgold indoor vertical farm in Danville. As a result, 173 jobs would be terminated. In September 2023, the New Jersey-headquartered company said it had exited Chap ...

The Zacks Agriculture - Products industry will benefit from the stable demand for food, supported by an increasing population. Rising consumer awareness regarding food ingredients and the preference for healthier options will drive industry expansion. Alternative and innovative agricultural technologies, such as hydroponics and vertical farming, are expected to serve as significant growth drivers due to their inherent advantages.Companies like Bunge Global S.A (BG) and GrowGeneration (GRWG) are poised to ga ...

Industry Overview - The Zacks Agriculture - Products industry is currently facing challenges due to lower commodity prices, high input costs, and labor shortages, but increasing consumer awareness regarding food ingredients and a preference for healthier alternatives are expected to support the industry [1][4] - The industry includes companies involved in storing agricultural commodities, distributing ingredients, and farming crops, livestock, and poultry products [3] Current Trends - Agricultural commodity prices are under pressure from ample supply, while rising labor, packaging, and distribution costs are impacting profitability [4] - The global population is projected to grow to 8.6 billion by 2030 and 9.8 billion by 2050, leading to a 50% increase in global food demand, which will drive industry growth [5] - Hydroponics and vertical farming are emerging as key agricultural technologies, providing benefits such as faster crop growth and higher yields [6] Market Performance - The Zacks Agriculture - Products industry has underperformed compared to the Basic Materials sector and the S&P 500 over the past 12 months, with a decline of 9.4% compared to a 2.6% rise in the sector and an 18.4% gain in the S&P 500 [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 6.83X, significantly lower than the S&P 500's 18.50X and the Basic Materials sector's 14.16X [11] Company Highlights - GrowGeneration has shown improvements in gross margin and adjusted EBITDA, focusing on a leaner, product-driven organization, with proprietary brand sales growing to nearly 32% of total revenues [16] - GrowGeneration's recent acquisition of Viagrow is expected to enhance its retail presence and support its goal of maintaining 30%+ gross margins [16] - Andersons has acquired full ownership of TAMH, which operates four ethanol plants, and is expected to be immediately accretive to earnings per share [22]