Vertical Farming: How Cities Are Growing Fresh Food

Urban populations are swelling, climate variability is increasing pressure on traditional supply chains, and consumers want fresher, more local produce. In Australia, vertical farming,  growing crops in stacked layers using controlled-environment agriculture (CEA),  is moving from pilot projects to commercial scale. Supported by research, government pilots and home-grown innovators, vertical farms are reshaping where and how Australians get fresh food.

Why vertical farming matters for Australia

Vertical farming addresses several pressures facing the Australian food system: constrained arable land near cities, long transport chains for fresh produce, and the need for resilient supplies during extreme weather. National research programs (including CSIRO’s Ag2050 work) and government innovation initiatives are explicitly testing vertical and indoor farming as part of Australia’s future food system.

Benefits of vertical farming

• Dramatically lower water use: Controlled-environment systems can use far less water than field production, helping urban supply resilience in drought-prone regions.
• Huge land-use efficiency: Vertical stacks produce the same yield on a tiny footprint compared with open-field cropping (important for dense cities).
• Reduced food miles and fresher produce: Growing near or inside cities cuts transport time and spoilage, delivering fresher greens to consumers.
• Pesticide-free or low-input production: CEA often reduces or eliminates the need for synthetic pesticides.
• New market opportunities: Niche, high-value crops (micro herbs, specialty native plants) can be produced year-round for premium local and retail markets.
  

How vertical farming works, key components

• Controlled environment: Temperature, humidity, CO₂ and light are tightly regulated to optimise plant growth.
• Growing systems: Hydroponics, aeroponics or nutrient film technique (NFT) are commonly used to deliver water and nutrients efficiently.
• Lighting: LED lighting provides tailored spectra to maximise photosynthesis and crop quality; energy management is a critical cost component.
• Automation & sensors: Smart sensors, environmental controllers and data platforms monitor conditions and reduce labour requirements.
• Stacking & vertical design: Multi-tier racks maximise yield per square metre, the core advantage over horizontal field production.
  

Australian progress: pilots, research and home-grown innovation

Australia is already seeing local examples and pilots that demonstrate vertical farming’s potential. The federal Agriculture Department has supported demonstration projects, including the country’s first open-source vertical demonstration farm, to accelerate knowledge sharing and industry adoption. Research from CSIRO (and linked programs such as Ag2050) is exploring how indoor systems can integrate with the broader food system and reduce environmental impacts.

Indigenous-led ventures are also using vertical farms to bring native plants and cultural foods to market. An example reported in 2024 described BoomaFood’s indoor vertical farm in the NSW Hunter Valley, which plans to expand production into native herbs,  a pathway to new product lines that celebrate Indigenous knowledge and provenance.

Challenges & considerations for scaling in Australia

• Energy costs and decarbonisation: Electricity for lighting and climate control is the major operational cost; transitioning to low-cost renewable energy and improving energy efficiency is vital for economic scalability. Recent Australian coverage highlights power and energy challenges as a key focus area for the sector.
• Capital intensity: High up-front capital for buildings, LED systems and automation can make payback periods long without strong market channels or scale.
• Crop selection: Leafy greens and herbs are currently the most commercially viable crops; longer-cycle crops (tomatoes, strawberries) require careful business modelling.
• Connectivity & skills: Rural and peri-urban connectivity (for remote monitoring) and trained operational staff are essential as farms adopt more automation. Government and research programs are addressing training and extension.

What success looks like – Australian indicators to watch

• Demonstration farms turning into viable commercial facilities (knowledge sharing from DAFF pilots).
• Integration with renewables to bring down energy intensity and emissions.
• Value capture from native and Indigenous products that leverage provenance and differentiate Australian offerings.
• Improved consumer access to local, year-round fresh produce in cities that traditionally rely on long supply chains.
  

Conclusion

Vertical farming is not a silver bullet, but in Australia it offers a complementary pathway to strengthen urban food security, reduce resource pressures and open new premium markets ,  especially when paired with renewable energy, research support and smart policy. With government-backed pilots, CSIRO research, and emerging Indigenous and commercial operators, Australia is building the knowledge base needed to scale vertical farming where it makes economic and environmental sense. As energy solutions and digital infrastructure improve, expect vertical farms to become an increasingly visible part of Australian cityscapes and fresh-food supply chains.

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