– In April 21, 4Meet and the Planty Farm Consortium, a smart farm company, won a Kuwait smart farm project contract for the first time as a Korean company
– Expected to be a new opportunity for Korean smart farm companies in the future
In April 2021, the Korean ICT solution company 4Meet and the smart farm company Planty Farm Consortium won the Kuwait smart farm project contract for the first time as a Korean company. It is the first export case of Korean smart farm to Kuwait, and it is a successful case of export industrialization of Korean smart farm in the B19G field by taking advantage of the demand for securing food security in the Gulf region after COVID-2. Middle Eastern countries with poor external environments, including Kuwait, are highly interested in smart farms, and it is expected that it will be a new opportunity for Korean smart farm companies in the future. The KOTRA Kuwait Trade Center held an in-depth interview with Yang Sang-hoon, director of Formeet, a company that entered the smart farm project, to hear the current status of entering the Kuwait smart farm market and future prospects.
Q1. Please tell us about your company.
A1. Formet is a specialized ICT company that develops and supplies ICT solutions necessary for plant operation, and has been established for 17 years. After 2016, we started business development in Kuwait to target the Kuwait and GCC markets. By participating in the smart farm project from 2019, we entered the smart farm market, and are developing and supplying ICT-related technology, one of the main technologies. Currently, XNUMXMeet is developing digital twin technology based on AI and Big-Data platform, and based on such technology, we are making efforts to export Korean smart farms to the Middle East market.
Q2. Please explain the smart farm project in Kuwait.
A2. It is Korea's first indoor smart farm exported to the Middle East, and we formed a consortium with Korea's Planta Farm to win the order. The arable area is 660㎡ (200 pyeong), and the total area is 900㎡. It perfectly controls CO2, LED, temperature, etc. required for crop growth in a sealed environment, and daily production reaches 240KG. The data obtained by constructing and operating a perfect plant factory in Kuwait, the worst environmental condition in the Middle East, will be an important asset for business expansion throughout the Middle East.
Q3. What technologies are applied to the smart farm project, and what crops can be grown?
A3. Currently, all of the latest smart farm technologies are applied, and in particular, LED, HVAC, etc. have gone through the optimization stage according to the local environment and the design has been completed. The ICT part plans to apply mobile control, analysis through cloud service, and state-of-the-art technology of AI and Big Data base within 2 years. In addition, all of the cultivation technologies accumulated over 10 years at Planti Farm, our partner, are applied.
<Smart Farm Photo>
<Kuwait client and director Sang-Hoon Yang>
Q4. What are the advantages of smart farms compared to general open-field cultivation?
A4. The following five advantages are typical.
1. Unaffected by the environment. Even in a harsh environment like Kuwait, we can secure the same quality and production as in Korea.
2. Water consumption is reduced by more than 90%, and manpower is also reduced.
3. Periodic annual production is possible, for example, the existing 2 crops can be up to 9 crops.
4. It is possible to secure the same quality and planned production volume, and it can be adjusted according to market conditions. We can maintain the same quality and yield regardless of the season and time of year, so we can tailor our supply to our customers.
5. Precise production is possible, so it is possible to produce products that meet customer needs.
Q5. Among the various countries, what motivated you to start a smart farm business in Kuwait?
A5. Personally, it has been more than 4 years since I entered Kuwait for other projects and businesses, and I was planning to win a power generation-related project right before the corona, but all related projects have been postponed or canceled due to the corona. At that time, in the spirit of finding a breakthrough, I thought that if there were any businesses that could not be done because of the corona, there would be businesses that could be created because of the corona. The manager of the KOTRA Kuwait Trade Center and many others supported me a lot, and they gave me a lot of support in the necessary consulting field and in selecting a Korean company. I would like to take this opportunity to thank you once again. And since Kuwait had the highest temperature in the Middle East and the worst conditions in climate environment and industrial infrastructure, we decided that if we succeed here, it would be easy to advance into other Middle East regions based on the data and experience. Although it is not yet completed, it is expected that the construction of Korean-style smart farms will expand in neighboring areas such as Saudi Arabia and Qatar in the future.
Q6. Were there any difficulties you encountered while working on the project?
A6. It took over a year to receive the order. The reason is that since it is the first project, there were many doubts and doubts from the client in Kuwait, and it was difficult to overcome the competition with advanced countries such as Turkey, China, the United States, and the Netherlands. Fortunately, with KOTRA's support, maximizing the Korean government's interest and support became a weapon. In addition, after the contract, it took more than two months to design the air conditioning system due to various circumstances, such as the outdoor temperature is much higher than that of Korea and does not drop below freezing even in winter, no matter how indoor smart farm is. Also, there are problems such as the difference in water quality and the poor electrical infrastructure, but for now, we are overcoming them.
Kuwait Agriculture and Fisheries Administration interview photo
Photo presented at the 4th Korea-Kuwait Smart City Forum
Q7. What is the status of Kuwait's agriculture and smart farm market?
A7. Considering the reality of Kuwait, where 96% of all agricultural products depend on imports and farmland is less than 1%, smart farms are the only alternative. Even now, as they are rushing to enter other countries besides Korea, the market is expected to grow bigger and competition to become fiercer.
Q8. What are the characteristics and demand of the Kuwait Smart Farm market?
A8. The culture of Kuwaiti business seems to be waiting for someone to build a successful model. It is expected that our first project will probably be a Flagship, and if it is successful, many inquiries from buyers are expected. And although there are limitations in the weather, the green house type smart farm market is expected to grow bigger and bigger, so Formet is preparing a joint business development with a domestic company for a greenhouse type smart farm. In addition, it is expected that there will be a market for smart technologies related to livestock as well as plants.
Q9. What is the future outlook for the Kuwait smart farm market?
A9. As mentioned earlier, it is expected that there will be tremendous growth in all fields of livestock and livestock, including indoor plant factories, greenhouses, and livestock. In addition, R&D establishments at both the government and private levels are hastily established. By securing and supplying relevant standard technologies, we want to provide active solutions for food security. From Korea's point of view, we need to enter the market in a hurry, but we have to overcome competition from the world's leading companies rather than competition among Korean companies.
Q10. Please give advice to domestic smart farm companies that want to enter the Kuwait smart farm market.
A10. You need an investment mindset. No matter how successful the technology is in Korea, Kuwait and the Middle East are completely new environments. Customers also have a lot of questions. In order to overcome this, it is necessary to prove the superiority of practical technology through pilot projects (investment in Korea and local joint investment), etc., and to actively utilize the data obtained through such pilot projects. Of course, if the government supports such a pilot project at the same time, the burden on private companies will be reduced. In addition, the importance of local partners cannot be ignored in the Middle East, so if you seek advice from Korean companies that have entered the market in advance and establish a partnership, that will also help you enter the market.
Source: Comprehensive data from KOTRA Kuwait Trade Center