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Feasibility Study for a Smart Farm Project to Produce Organic Vegetables.
Feasibility Study for a Smart Farm Project to Produce Organic Vegetables.
The smart farm project for producing organic vegetables is an advanced agricultural project that relies on modern farming technologies such as the Internet of Things (IoT), artificial intelligence, vertical or hydroponic farming, and sustainable ecosystems. The aim is to produce healthy, natural vegetables free from pesticides.
The farm targets local markets, hotels, restaurants, and health food stores, in addition to the end consumer through electronic platforms or regular subscriptions.
The project is implemented within a fully digitally controlled protected environment using sensors and data analytics to ensure the highest production quality throughout the year, regardless of climate changes.
Study Content
Targeted Products and Services
Targeted Products and Services
The project focuses on producing and marketing a variety of fresh leafy and organic vegetables that are witnessing increasing demand in the Saudi market, including:
Romaine and Iceberg lettuce
Arugula, spinach, and basil
Various types of organic tomatoes
Organic cucumbers
Sweet peppers and fresh herbs
Leafy vegetables for restaurants and hotels
Weekly subscription boxes for individual consumers
Additional services such as educational and awareness tours, and courses on sustainable farming are also offered.
Expansion is possible to provide technical support services for farmers wishing to transition to smart farming.
Demand and Market Analysis
Demand and Market Analysis
The Saudi market is undergoing a significant transformation in food consumption patterns, especially after the COVID-19 pandemic, with increasing awareness of the importance of healthy and organic foods.
Key factors driving demand growth:
Rising health awareness among individuals and preference for organic and fresh foods
Population growth and continuous increase in urban population
The Kingdom’s move towards smart food security and achieving partial self-sufficiency
Increasing government support for organic farming projects and protected environment agriculture
Limited number of specialized organic farms compared to the expected market size
Increased consumption of healthy ingredients by restaurants, hotels, and catering companies
Support from e-commerce platforms for fresh local products
Investment Advantages
Investment Advantages
Integration of technology and agriculture, which increases efficiency and reduces waste of water and energy
Year-round production in a protected environment, ensuring stable supply
Increasing demand for high-quality organic vegetables from multiple sectors
Reduced dependence on expensive imports of organic vegetables
Government support and potential financing from agricultural development and environmental investment funds
Vertical scalability within cities or horizontal expansion in large agricultural areas
Possibility of obtaining official organic certifications that enhance trust and facilitate export
Opportunity to build a national brand in clean and sustainable food
Potential expansion into environmental education and added services
Project Features
Project Features
Use of smart sensing technologies to control lighting, humidity, and irrigation
Advanced irrigation techniques that reduce water consumption by up to 90%
Production of vegetables free from pesticides and chemical fertilizers
Ability to monitor and control the entire farm remotely through a centralized application
Reduced long-term operating costs due to operational efficiency
Capability to produce crops with consistent quality and distinctive taste
Flexibility in marketing the product through multiple channels: direct sales, online, or to restaurants
Full compliance with environmental and sustainability standards required in local and global markets
Financial Indicators
Financial Indicators
Expected capital: Ranges between 4 to 7 million Saudi Riyals
Expected return on investment (ROI): Ranges between 18% to 25% annually, depending on operational efficiency and product marketing
Expected payback period: Between 3 to 4 years, with potential reduction if supply contracts are activated with commercial chains or government entities
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