Laura Ciccone
Natalie Saint Fleur
Zamir Ben-Dan
Green Tree Technology, Inc.
Building for a Better Tomorrow Today
Economic & Social Sustainability & Stability using the urban hydroponics model of the Vertical Farm
Summary
 Green Tree Technology, Inc. (GTT)
Founded in 2008
Seeks to commercialize and encourage the
use of Vertical Farming (VF)
Designed to produce enough food to
reduce strain of demand while reaping
profit
Will ethically help growing global problems
of overpopulation, hunger, and reduction of
arable land to sustain world population
Summary (Cont.)
 Humans produce humans
at a faster rate than the
earth produces food:
 US alone has 35 million
people who experienced
hunger in 2005
 Projected 3 billion more in
population growth within
the next 40-50 years
 80% of arable land is
already being used to
produce food
 Projected 80% of
population will reside in big
cities
Summary (Cont.)
A VF is a high rise
greenhouse where
food is artificially
grown
Concept has been
around for 8 years,
but never fully
implemented
anywhere
Business Description
We want to establish the urban hydroponics model of the Vertical Farm (VF) in New
York City (NYC) taking over abandoned urban properties and turning them in to
food production centers, eventually expanding to be an international enterprise in
all major cities throughout the world.
This model will produce various gourmet lettuces in the first few years of production,
since it is not economical or financially feasible to make a variety of crops that
require varying environmental conditions throughout the building.
After the business is established it will become feasible and encouraged to use
different levels to produce different crops.
Potential Customers Include…
Currently domestic market, eventually
expanding internationally
Residents of NYC & Tri-State Area
Commuters
Tourists/Visitors to NYC/Tri-State Area
Source: http://www.treehugger.com/files/2008/04/vertical-diagonal-farm-innew-york.php
Brief History of Vertical Farming
 Although the idea of VF has
been around for many years, it
has yet to be widely
established in any major city,
so there is no available
financial history
 The idea was created as a
response to the depletion of
usable farm land in the world,
fearing the population will grow
faster than the farm land will
replenish, thus leaving a large
part of the world without
adequate food
 It is also a response to the
desire for sustainable energy
and self-sufficient economies
Brief History of the Hydroponics
Model
 Hydroponics literally means
“Water Labor,” which sums up
exactly what it is
 The idea of growing plants in
water, sans soil, has been around
since ancient times
 First implemented in non-arable
areas during WWII
 NASA has viewed its sustainability
in regard to growing plants using
only water on other planets
 Aside from scientists and analysts,
hobbyists and traditional farmers
have looked to this model to help
produce a greater yield of produce
because of it’s environmental
sustainability
Business Description (Cont)
Legal Form of
Business
C-Corporation so we
can have unlimited
shareholders, both
national and
international
Current Owners:
Zamir Ben-Dan
Laura Ciccone
Natalie Saint-Fleur
Market Analysis
(Size)
 US Production:
 Total in 2006: 676 pounds
of fruit and vegetables per
capita (269 fruit, 406
vegetables)
 Total lettuce consumption in
2004: 34.5 lbs per capita
 Within the next 5 Years…
 About 80% of world’s pop
will live in urban areas
 Pop will increase by ~3
billion
 Market Size of
Agriculture…
 800 million hectares
dedicated to farming
 With increase in pop,
additional 109 hectares will
be needed to sustain pop
 Continuously increasing
 Target NYC & Tri-State
Area
 Pop: ~19.5 million
 Lbs of food avail: ~13
Trillion
Market Analysis
(Market Profile)
 Target Market
 Tri-State Area
 Adults aged 18-65
 Why Will They Choose GTT?
 Offers chance of buying competitively
priced organic & fresh food
 Most organic food is expensive due to
additional labor costs, transportation
fees, etc.
 GTT offers the solution by cutting
transportation and labor costs
 Do not have to worry about pesticides
that cause bodily harm
 Does not create fear of genetically
modified food
 Economical:
 Farming costs due to farm subsidy uses
billions of tax dollars
 Revamp of farming industry can led to
elimination of farm subsidies, thus
reducing taxes
 Offers out of season produce year
round
Competition
Smaller-scale Vertical Farms in urban areas
Major food producers
Organic restaurants and grocery stores
What Makes GTT Better?
Year-round, consistent production
Edible food, regardless of weather
Produced abundantly, therefore
inexpensive
Organic and have less of a chance to
be exposed to pathogens and insects
Product Advantages
GTT Offers Several
Advantages to
Traditional Farming…
 Will produce food in a
sustainable manner that
is not harmful to body or
environment
 Creates opportunity to
reduce carbon foot print
while still producing
quality food
 VF is 5x more efficient
than traditional farming
Although GTT holds promise, there are
some potential, but beatable
barriers…
 Since VF is a relatively new
concept, start up costs are high
 GTT will initially only produce lettuce
to offset such high costs, but will
soon after be able to branch into
more produce markets
Regulatory Requirements Include…
 Safe Drinking Water Act
 Clean Water Act
 FIFRA
However, since our company prides
itself on economical and
environmental sustainability
practices, we will have no problems
with such regulations.
Product Advantages
(Product Extension)
 GTT would like to move
in the direction of
increasing our output and
the number of produce
that is produced
 Projected Increase of 30%
annually
 There is considerable
growth in produce, such
as fruits, which are some
avenues that can, and
most likely will, be
explored
Objectives
Target Market…
 Consumers looking for
reasonably priced, quality
organic food
 Adults living in tristate/metropolis area
 Intend to expand into…
 Other parts of the tristate area, to have
multiple operating
facilities
 other metropolises
 the international sector
Estimated Sales and
Market Share…
 GTT will be pioneers of
VF, which will hopefully
be the future of farming
altogether for urban
areas
 Ultimate goal is
expansion for the
betterment of urban
areas
 Our first year goal is to
gain 2.7-2.8% of the
market, which is
~160,000 people
Marketing Strategy
Product Features:
 Pesticide-free, not genetically
modified
 Non-existent packaging
 Promotions will produce product
awareness
 All images will be registered through
TEAS
Distribution:
 GTT has included in its construction a
retail facility
 Will allow for direct selling to customers
and wholesalers
 Reduces transportation costs to virtually
zero

Prospect businesses interested in our
services:
 Whole Food Groceries
 Other Organic Food markets
Pricing
$1.50 / Lettuce Head
264.6 acres of land ≈ Production of 5.4 million heads of lettuce
5.46  1.5 = $8.16
$8.1 mill – Employee Salaries (~$1.4 mill) = $6.7 mill
$6.7 mill – Utilities, Rent, Supplies, Equipment ($2.1 mill) = $4.6 mill
$4.6 mill – 10% tax ($460,000) = $4.2 mill Total Profits
Marketing Strategy:
Promotion
 First year will rely on relatively
inexpensive promotional efforts
including…
 Extensive focus on word-of-mouth
advertising
 organic conventions
 networking
 meetings with farmers and organic
shop owners
 Collaborative promotional efforts with
willing participants to share costs
 Once there is a generous amount of
revenue, GTT will have extensive and
strategic placement of literature and
publicity including…
 Brochures/flyers in organic food
markets we sell to that are willing to
promote our products
 Newspaper ads in the Science Times
on Tuesdays in the New York Times,
as well as other major newspapers
 TV ads on environmental channels
including Discovery, shown during
news casting on major networks
Operations
Location & Space
Requirements:
 GTT will consist of 10 floors:
 500 ft x 720 ft
 1st floor will have the
receptionist, a retail store
and offices for the
employees
 Remaining 9 floors will be
used strictly for production
of lettuce
 Space will equate to 264.6
acres of land although it is
only taking up 74 acres,
which can grow 5.4 million
heads of lettuce
Regulatory Requirements
 Lettuce must be grown in the
following conditions:
 Between 70-72°F during the
day
 65-68°F during the evening
and night
 2.5 watts of light per square
foot
 Parking won’t be an issue since
the majority of people in the city
use public transportation and/or
walk to their destinations
 Manufacturing and selling of
goods will happen within GTT,
therefore eliminating the costs
of transportation
Operations (Cont.)
Personnel Requirements
 GTT will require, in the beginning:
Equipment Requirements
 Energy
 Powered by itself using…
 Solar power from roof
 Wind power from vertical-axis wind
turbines which are 50% more efficient in
lower wind conditions than regular
turbines
 Elevator
 Ceiling-mounted system to monitor
conditions of farm
 LED light bulbs that save energy and
can be used to accommodate
wavelength demands of lettuce
 Side Mission of GTT:
 To recycle resources, nutrients, and
even waste
 20 scientists paid $50K
 5 scientists on the supervisory board
paid $75K
 3 owners to manage the remainder of
the business
 One receptionist paid $32,000
Production/Service Operations
 Planting seeds
 Nurturing crops using personnel and
the ceiling-mounted systems which
regulate temperature, humidity,
nutrient dispersal, etc.
 Protection and harvesting of crops by
scientists
 Harvested foods transported to central
elevator to store
 Food then sold, and the revenue would
pay off the expenses
Organization/Management Relationship Diagram
Owners
(3)
Supervisory Board
(Management/
Marketing Team)
Production Manager
(1)
Level X
Scientists
(20)
Marketing Director
(1)
Receptionist
(1)
Financial Advisor
(1)
Engineer
(1)
Analyst
(1)
Employee Roster
 Owners: Zamir Ben-Dan,
Laura Ciccone, Natalie
Saint-Fleur
 Management/Marketing
Team…
 Production Manager: Dr.
Antonio Rajh
 Marketing Director: Dr.
Victoria Vallerjo
 Financial Advisors: Dan
Meaks & Mary Ann Farkas
 Engineer: Dr. Henry
Brown
 Analyst: Dr. Thomas
James
Management Job Descriptions

Owner:
 At the forefront of GTT
 Liaison between public and GTT
 Oversee and approve company operations
including…





Production efficiency,
Quality,
Service,
Cost-effective management of resources
Production Manager:
 Oversee lower management operations
 Ensure that goods & services are produced
efficiency
 Responsible for human & material resources

Marketing Director:
 Responsible for all marketing efforts
including…





E-marketing (e-advertising)
Commercials
Written Publications (brochures, pamphlets, etc)
B2C Interactions
Financial Advisor:
 Evaluate social & economic performance of
GTT
 Compile data for financial reports
 Propose investment possibilities
Management Job Descriptions
(Cont.)
 Engineer:
 Conduct experiments for new
technology
 Observe lettuce yields
 Analyst:
 Review lettuce yield
 Data analysis
 Analyze GTT problems & produce
solutions
 Level X Scientists:
 Play the role of (co-)managers
 Plan/develop systems to improve
operating quality and efficiency of each
level
 Must be prepared to hire, train, and
coach future employees
 Scheduling
 Ensure quality of lettuce heads
 Tend to lettuce
 Quality control of product
Key Managers & Management
Weakness









Zamir Ben-Dan, Owner
Laura Ciccone, Owner
Natalie Saint-Fleur, Owner
Dr. Antonio Rajh, Production
Manager
Dr. Victoria Vallerjo, Marketing
Director
Dr. Dan Meaks,
Financial Advisor
Dr. Mary Ann Farkas, Financial
Advisor
Dr. Henry Brown, Engineer
Dr. Thomas James, Analyst
The owners all have basic
education which may limit the
growth of the company. However,
through training and future
collaboration and schooling, these
weaknesses will vanish.
Also, being pioneers in VF will
make the operation not as fluid as
an already establish business.
Compensation
 Owners and employees of GTT
will all receive salaries ranging
from $32K-$80K
 No bonuses will be awarded in the
founding years
 As the business prospers
 Tuition reimbursement will be
implemented
 There will be a variety of health
plans
 Bonuses will be awarded
according to productivity levels on
each floor
 The incentive for employees in the
founding years
 higher than average base salary
pay
 Future stability
 Being a part of a growing initiative
Ownership & Board Membership
 Owners Include:
 Zamir Ben-Dan, 25 Shares
 Laura Ciccone, 25 Shares
 Natalie Saint-Fleur, 25 Shares
 Other Shareholders:
 Each of the 40 Venture
Capitalists have 10 shares
each
 Board Consists of:
 3 Owners
 Provide knowledge on
company
 Founders of company
 Have outside information
 Key Managers
 Know what is going on within
GTT
 Know valuable information
regarding new technologies
 Report on GTT productivity
 Venture Capitalists
 Outside information
 Since they invested, they
must be properly represented
on the board
Timing
Within the next 3-5 years, there are several milestones GTT
intends on reaching:
 Increase productivity and income by ~30% yearly
 Increased employee base, branching out from the initial
scientists to include those in urban areas without access to a
job
 Off-site, fully compensated 4-week training program for new
hires
 Pay back 75% of initial investments to venture capitalists
 Larger population helped
 Variety of produce grown
 Enter the international sector
 Fully staffed and organic restaurant on first floor
6 Year Projected Profit and
Payback Plan
(@ 30% Growth)
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
Net Profit
Owed to VC
15,000,000
10,000,000
5,000,000
0
-5,000,000
Current
2010
2012
2014
Financial Information
Projected Income Statement
 Finances will come
from…
 40 venture capitalists
investing $1 Mill each
 Other future interested
investors
 Promotional efforts
 Company will have 475
shares
 Profits make each share
worth $8,664.63
Lettuce Revenue
~$8.1 Mill
Total Revenue
$8.1 Mill
Salaries Expense
$1.4 Mill
Utilities
~$12K
Rent
~$60K
Supplies
~$48K
Equipment
~$2 Mill
Total Expenses
-$3.5 Mill
Profit Before Tax
$4.6 Mill
Profit After Tax
$4.1 Mill
Exhibits/Appendices
 “Grub: Ideas for an Urban Organic Kitchen” by Anna Lappe and
Bryant Terry
 The Growing Edge – History of Hydroponics
(http://www.growingedge.com/basics/tutorial/01_history.html)
 The Vertical Farm Entrepreneurship by Jackie Baumgartner, Locky
Chambers, Alexis Harman, Jun Mitsumoto, Jordana Rothschild and
(http://www.verticalfarm.com/pdf/report2006/Economic%20Consider
ations.pdf)
 Vertical (Diagonal) Farm from Work AC in NYC, Tree Hugger
(http://www.treehugger.com/files/2008/04/vertical-diagonal-farm-innew-york.php)
 Skyfarming – Turning Skyscrapers Into Crop Farms, New York
(http://nymag.com/news/features/30020/)
 Biz Tools – Answers & Advice (http://www.biztools.com)
 Images courtesy of Google images & Microsoft Clip Art