0:00:16.213,0:00:19.233 Sometimes, it really does feel like[br]we need a revolution 0:00:19.233,0:00:22.661 when we think about[br]the challenges we face today: 0:00:22.661,0:00:25.883 debt crisis, political stalemates, 0:00:26.523,0:00:29.463 energy, the environment, 0:00:29.803,0:00:32.353 the food we're feeding our families. 0:00:32.963,0:00:35.613 But I don't think[br]we should be discouraged. 0:00:35.623,0:00:38.813 And today I'm going to talk[br]about the story of BrightFarms. 0:00:38.813,0:00:41.783 But I also want this to be an example - 0:00:41.783,0:00:46.273 an example for us as leaders,[br]as activists and as citizens, 0:00:46.273,0:00:48.743 an example for how we can think about 0:00:48.743,0:00:52.583 how some of our generation's[br]greatest problems, greatest challenges 0:00:52.583,0:00:56.963 can be converted into some[br]of our greatest business opportunities. 0:00:57.543,0:00:59.640 I want to start[br]by looking back a little bit. 0:00:59.640,0:01:02.927 I want you to raise your hand[br]if you were working in the food industry 0:01:02.927,0:01:04.067 five years ago. 0:01:05.232,0:01:06.883 Wow! A lot - more than half. 0:01:06.883,0:01:08.673 We're going to need that experience. 0:01:08.681,0:01:09.881 Five years ago, I wasn't. 0:01:09.881,0:01:12.911 Five years ago, I was running a business 0:01:12.911,0:01:18.151 that improved the supply chains[br]of big retailers and their suppliers. 0:01:18.151,0:01:19.807 I had a singular goal 0:01:19.807,0:01:25.817 which was to maximize the efficiencies[br]of systems that brought goods to stores. 0:01:26.088,0:01:31.348 And let me tell you, I am programmed[br]to live, breathe and, yes, eat efficiency. 0:01:31.348,0:01:33.731 I have a license plate[br]that reads "Efficient." 0:01:33.731,0:01:34.781 (Laughter) 0:01:34.781,0:01:36.211 It's true. I do. 0:01:39.166,0:01:43.646 When I followed my passion[br]and came into the food industry 0:01:43.646,0:01:46.856 and dug into the produce supply chain, 0:01:46.856,0:01:51.455 I encountered a system[br]that was at odds with itself. 0:01:51.741,0:01:57.751 Our produce supply chain[br]is incredibly efficient and inefficient 0:01:57.751,0:01:59.571 all at the same time. 0:01:59.571,0:02:02.221 First, here's how it's efficient. 0:02:02.221,0:02:06.221 It produces huge quantities[br]of food at low prices. 0:02:06.659,0:02:09.009 And here's how it's inefficient. 0:02:09.009,0:02:13.536 Our fresh produce[br]holds up to travel great, 0:02:13.536,0:02:17.276 but it can't uphold taste at all. 0:02:17.276,0:02:21.116 In fact, we grow produce for travel[br]and not for eating. 0:02:21.467,0:02:27.477 The system breeds foodborne illness,[br]and it's killing our environment. 0:02:27.989,0:02:32.779 Our fresh produce supply chain[br]is industrialized and centralized 0:02:32.779,0:02:38.999 to the point that it's an enormous[br]consumer of land, of water, of crude oil 0:02:38.999,0:02:40.579 and natural gas. 0:02:40.579,0:02:43.429 The more I learned,[br]the more I came to realize 0:02:43.429,0:02:46.370 that for all the good intentions[br]to feed the world, 0:02:46.370,0:02:50.210 parts of our food supply chain[br]aren't merely inefficient - 0:02:50.210,0:02:51.690 they're toxic. 0:02:52.100,0:02:56.310 If TED is about inspiration -[br]well, I was inspired. 0:02:56.312,0:02:59.892 I was inspired to rethink[br]the produce supply chain. 0:02:59.892,0:03:01.088 I was more than inspired. 0:03:01.088,0:03:05.148 I was compelled to develop[br]an alternative supply chain: 0:03:05.526,0:03:07.936 one that eliminated these inefficiencies 0:03:07.936,0:03:14.836 and that prioritized farmers,[br]quality food, our health, the environment 0:03:16.066,0:03:20.066 and still produced large quantities[br]of food at low prices. 0:03:21.211,0:03:23.330 I want to make a full stop[br]here for a second. 0:03:23.330,0:03:27.535 I want to ask each one of you[br]to visualize the best tomato 0:03:27.535,0:03:29.195 you've had in the last year. 0:03:29.675,0:03:31.005 Do you have it? 0:03:31.185,0:03:35.715 I want you to raise your hand[br]if it came from a supermarket. 0:03:36.778,0:03:38.098 (Laughter) 0:03:39.481,0:03:41.451 I can't believe that there's really zero. 0:03:41.451,0:03:42.461 (Laughter) 0:03:42.461,0:03:45.901 Although I am not surprised that it[br]would've at least been close to zero. 0:03:45.901,0:03:48.771 People typically visualize[br]the tomato from farmers' markets - 0:03:48.771,0:03:49.921 probably a lot of that - 0:03:49.921,0:03:51.891 gardens and restaurants. 0:03:51.891,0:03:57.451 Virtually nobody, or perhaps in this case,[br]literally nobody says supermarkets, 0:03:57.451,0:04:01.841 even when I asked that question[br]of supermarket executives. 0:04:01.841,0:04:03.251 (Laughter) 0:04:04.607,0:04:06.007 I'm serious. 0:04:06.571,0:04:11.251 The tomato I visualized[br]was produced by a six-year-old, 0:04:11.251,0:04:14.991 my beautiful daughter Emilia,[br]in our kitchen garden. 0:04:15.460,0:04:22.090 Emilia and I like to discuss how the most[br]important ingredient in food is love 0:04:22.600,0:04:26.270 and how you find love in the food[br]that someone grows or prepares 0:04:26.270,0:04:29.300 for someone they care about personally. 0:04:30.770,0:04:36.880 Emilia's tomato that I'm visualizing[br]and the tomatoes she grows in the garden 0:04:36.880,0:04:39.180 look a lot like this tomato. 0:04:39.180,0:04:42.730 And the tomato I visualized[br]was bursting with flavor; 0:04:42.730,0:04:44.680 it was bursting with love. 0:04:45.000,0:04:46.412 And this tomato? 0:04:48.777,0:04:50.037 Sucks! 0:04:50.037,0:04:51.377 (Laughter) 0:04:54.535,0:04:56.815 I'm serious. That tomato was awful. 0:04:56.815,0:04:58.685 (Laughter) 0:05:00.363,0:05:03.713 It was organic. It was expensive. 0:05:04.253,0:05:08.363 We bought it at a fancy supermarket[br]not far from here. 0:05:08.920,0:05:11.330 So why does it lack taste? 0:05:11.330,0:05:13.770 And nutrition too, by the way -[br]they run together. 0:05:13.770,0:05:18.200 And what does that tell us about[br]the supermarket tomatoes and lettuces 0:05:18.200,0:05:21.600 that we're buying[br]and feeding to our families? 0:05:22.505,0:05:26.125 These tomatoes[br]are international travelers. 0:05:26.125,0:05:30.337 They bounced here to New York[br]from Mexico in a 53-foot truck. 0:05:30.617,0:05:32.117 No wonder they suck. 0:05:34.607,0:05:38.007 That's typical, by the way,[br]for US supermarket tomatoes in the winter. 0:05:38.007,0:05:43.597 Did you know that nearly 100 percent[br]of supermarket lettuces in the US 0:05:43.597,0:05:45.197 come from just two places? 0:05:45.197,0:05:49.987 Near Salinas, California, in the summer[br]and Yuma, Arizona, in the winter. 0:05:50.411,0:05:54.771 These lettuces travel 3,000 miles[br]to reach the local grocery store here. 0:05:54.771,0:05:59.051 It's no surprise that lettuce is prone[br]to rotting before it's purchased 0:05:59.051,0:06:01.121 or right when people bring it home. 0:06:01.121,0:06:03.821 This causes huge losses for supermarkets, 0:06:03.821,0:06:08.021 and it makes my wife,[br]who loves fresh baby spinach, unhappy, 0:06:08.021,0:06:09.411 which makes me unhappy. 0:06:09.411,0:06:10.521 (Laughter) 0:06:10.907,0:06:15.387 Produce executives, produce buyers,[br]they don't want this. 0:06:15.387,0:06:19.027 They've actually got families of their own[br]that they're feeding with produce, 0:06:19.027,0:06:20.187 and they're good people. 0:06:20.187,0:06:22.957 But they're not just good people -[br]they're business people. 0:06:22.957,0:06:25.367 They want to bring you quality produce, 0:06:25.367,0:06:29.757 but they need to buy large quantities[br]of produce at low prices. 0:06:29.757,0:06:32.237 And right now, there's only[br]one option for that, 0:06:32.237,0:06:36.007 which is our industrialized[br]and centralized food system. 0:06:37.247,0:06:41.297 Incrementalism isn't going to do it. 0:06:41.677,0:06:45.462 Moving food faster or better[br]through this system 0:06:46.302,0:06:48.027 isn't going to solve these problems. 0:06:48.027,0:06:52.497 It's time for a revolution[br]in the produce supply chain. 0:06:52.497,0:06:59.387 Can you imagine a revolutionary new system[br]that had fewer miles, fewer trucks, 0:06:59.387,0:07:01.627 fewer tasteless tomatoes, 0:07:01.627,0:07:07.277 that had less foodborne illness,[br]less crude oil and less rotting lettuces? 0:07:07.279,0:07:09.989 Can you imagine[br]a revolutionary supply chain 0:07:09.989,0:07:12.059 where we went back to our roots 0:07:12.059,0:07:15.649 and grew and sold produce[br]in the same community 0:07:15.649,0:07:21.069 by a farmer who, like Emilia,[br]grew for taste instead of for travel? 0:07:21.069,0:07:23.129 And maybe even with a little bit of love. 0:07:23.129,0:07:24.759 You think that'll be better? 0:07:25.579,0:07:27.054 Do you think that'll be better? 0:07:27.054,0:07:28.189 (Audience) Yes. 0:07:28.189,0:07:29.725 We think so at BrightFarms too. 0:07:29.725,0:07:31.045 And you know who else does? 0:07:31.045,0:07:33.755 Produce buyers[br]at supermarkets, they do too. 0:07:33.755,0:07:36.585 In fact, nearly 20 percent[br]of the top 50 US supermarkets 0:07:36.585,0:07:38.515 are already working with BrightFarms 0:07:38.515,0:07:42.015 to try to make this revolutionary[br]new system a reality. 0:07:42.235,0:07:45.855 The industry is reacting[br]with huge enthusiasm. 0:07:45.855,0:07:51.415 Produce buyers sincerely want to bring [br]great food at great prices 0:07:51.415,0:07:52.465 to their customers. 0:07:52.465,0:07:54.375 They just need a better option. 0:07:54.847,0:07:57.917 So, how is BrightFarms going to do this?[br]What are we doing? 0:07:57.917,0:08:01.617 How are we going to bring[br]large quantities of food at low prices 0:08:01.617,0:08:04.447 that's better quality[br]and better for the environment? 0:08:04.447,0:08:07.077 It sounds hard, but the answer[br]is surprisingly simple. 0:08:07.077,0:08:09.777 We're building greenhouse farms, 0:08:09.777,0:08:13.147 but it's how we're building them[br]and where we're building that matters. 0:08:13.147,0:08:14.944 We're building them at supermarkets, 0:08:14.944,0:08:17.594 on their roofs,[br]at their distribution centers 0:08:17.594,0:08:20.544 and always in their communities. 0:08:20.544,0:08:22.974 BrightFarms provides a turnkey solution. 0:08:23.434,0:08:28.864 We finance it, we build it, we manage it[br]for our supermarket clients 0:08:28.864,0:08:33.394 in a way that cuts time, distance[br]and costs from the produce supply chain. 0:08:33.394,0:08:37.004 We're building hydroponic,[br]recirculating greenhouses 0:08:37.004,0:08:41.954 and recruiting farmers across the country[br]to bring better produce to everybody. 0:08:42.624,0:08:43.904 Here's how the deal works. 0:08:43.904,0:08:47.644 We put up the money,[br]we build the facility, 0:08:47.924,0:08:51.814 we find, we nurture, we support,[br]we train the local farmer. 0:08:51.814,0:08:55.814 The supermarket is required[br]to put up zero investment. 0:08:55.814,0:08:59.424 They merely commit to buying[br]produce that's better. 0:09:00.138,0:09:01.778 That's not enough, by the way. 0:09:01.778,0:09:06.088 Zero investment[br]and better produce on their own 0:09:06.088,0:09:07.768 doesn't satisfy their requirements. 0:09:07.768,0:09:09.808 There's another factor,[br]which is the price. 0:09:09.808,0:09:12.448 If we can't meet or beat[br]current market pricing, 0:09:12.448,0:09:15.418 this is going to remain[br]a fringe initiative. 0:09:15.418,0:09:17.178 And I'm not interested in the fringe. 0:09:17.178,0:09:19.338 I am interested in making a difference. 0:09:19.338,0:09:22.288 But we can meet or beat existing prices. 0:09:22.288,0:09:26.188 We do it by having a shorter[br]and simpler supply chain. 0:09:27.407,0:09:33.354 More than half the cost[br]of this lettuce isn't the lettuce - 0:09:33.354,0:09:38.294 it's the long and complex supply chain[br]that gets it to your local grocery store. 0:09:38.294,0:09:41.754 We simply operate without that long[br]and complex supply chain, 0:09:41.754,0:09:45.924 so we have lower operating costs[br]than the traditional industry. 0:09:45.924,0:09:50.684 We can sell at low enough prices[br]to meet or beat current market prices. 0:09:51.169,0:09:55.169 This is a case where less is truly more. 0:09:56.188,0:09:58.112 So, is our business model working? 0:09:58.112,0:09:59.132 It is. 0:09:59.132,0:10:00.832 We actually just recently announced[br] 0:10:00.832,0:10:03.302 the industry's first[br]long-term produce agreement. 0:10:03.302,0:10:06.252 It's with a great supermarket[br]called McCaffrey's. 0:10:06.252,0:10:10.132 We're building them a greenhouse[br]at their store in Yardley, Pennsylvania. 0:10:10.132,0:10:12.842 And I want all of you to go there[br]and check it out. 0:10:12.842,0:10:16.406 Jim McCaffrey, like many[br]supermarket executives, 0:10:16.406,0:10:19.166 cares deeply about his customers. 0:10:19.756,0:10:22.696 He's not just a great businessman. 0:10:22.696,0:10:24.326 He's a visionary as well. 0:10:24.326,0:10:28.519 And he had a vision to commit[br]to a revolutionary new system 0:10:28.519,0:10:33.189 that's bringing better tomatoes[br]and consistent, fantastic lettuces 0:10:33.189,0:10:36.339 to his store shelves[br]on the day that they're picked. 0:10:37.003,0:10:41.473 And by the way, we care[br]about McCaffrey's customers 0:10:41.473,0:10:42.873 as much as Jim does. 0:10:42.873,0:10:46.433 We're not going to be anonymous,[br]3,000 miles away. 0:10:46.433,0:10:49.243 Our farmer won't be 3,000 miles away. 0:10:49.243,0:10:52.313 He'll be three blocks away from the store. 0:10:52.313,0:10:53.463 He'll be living, 0:10:53.463,0:10:58.103 sending his kids to school,[br]creating jobs and growing produce 0:10:58.103,0:11:00.852 in the same community[br]as McCaffrey's customers 0:11:00.852,0:11:04.412 and shopping in the same produce aisles[br]right there with them. 0:11:05.652,0:11:11.152 When we started - earlier, I said[br]that TED Talks were about inspiration. 0:11:12.180,0:11:15.450 I've been inspired by many of you here[br]today, and I thank you for it. 0:11:15.450,0:11:18.955 And I hope I've had the chance[br]to inspire some of you as well, 0:11:18.955,0:11:23.805 inspire you to not be discouraged[br]by the problems you're facing 0:11:24.246,0:11:27.126 with the supply chains[br]in which you feel like you're stuck, 0:11:27.126,0:11:29.746 but instead, to think[br]about these challenges 0:11:29.746,0:11:32.796 as opportunities to start[br]your own revolutions. 0:11:32.796,0:11:34.136 And in our case, 0:11:34.136,0:11:38.516 a revolutionary opportunity[br]to bring our society produce 0:11:38.516,0:11:42.906 that's safer, healthier, tastier,[br]better for the environment 0:11:42.906,0:11:46.896 and bursting with the most important[br]ingredient of all: love. 0:11:46.896,0:11:48.716 (Applause)