1 00:00:16,213 --> 00:00:19,233 Sometimes, it really does feel like we need a revolution 2 00:00:19,233 --> 00:00:22,661 when we think about the challenges we face today: 3 00:00:22,661 --> 00:00:25,883 debt crisis, political stalemates, 4 00:00:26,523 --> 00:00:29,463 energy, the environment, 5 00:00:29,803 --> 00:00:32,353 the food we're feeding our families. 6 00:00:32,963 --> 00:00:35,613 But I don't think we should be discouraged. 7 00:00:35,623 --> 00:00:38,813 And today I'm going to talk about the story of BrightFarms. 8 00:00:38,813 --> 00:00:41,783 But I also want this to be an example - 9 00:00:41,783 --> 00:00:46,273 an example for us as leaders, as activists and as citizens, 10 00:00:46,273 --> 00:00:48,743 an example for how we can think about 11 00:00:48,743 --> 00:00:52,583 how some of our generation's greatest problems, greatest challenges 12 00:00:52,583 --> 00:00:56,963 can be converted into some of our greatest business opportunities. 13 00:00:57,543 --> 00:00:59,640 I want to start by looking back a little bit. 14 00:00:59,640 --> 00:01:02,927 I want you to raise your hand if you were working in the food industry 15 00:01:02,927 --> 00:01:04,067 five years ago. 16 00:01:05,232 --> 00:01:06,883 Wow! A lot - more than half. 17 00:01:06,883 --> 00:01:08,673 We're going to need that experience. 18 00:01:08,681 --> 00:01:09,881 Five years ago, I wasn't. 19 00:01:09,881 --> 00:01:12,911 Five years ago, I was running a business 20 00:01:12,911 --> 00:01:18,151 that improved the supply chains of big retailers and their suppliers. 21 00:01:18,151 --> 00:01:19,807 I had a singular goal 22 00:01:19,807 --> 00:01:25,817 which was to maximize the efficiencies of systems that brought goods to stores. 23 00:01:26,088 --> 00:01:31,348 And let me tell you, I am programmed to live, breathe and, yes, eat efficiency. 24 00:01:31,348 --> 00:01:33,731 I have a license plate that reads "Efficient." 25 00:01:33,731 --> 00:01:34,781 (Laughter) 26 00:01:34,781 --> 00:01:36,211 It's true. I do. 27 00:01:39,166 --> 00:01:43,646 When I followed my passion and came into the food industry 28 00:01:43,646 --> 00:01:46,856 and dug into the produce supply chain, 29 00:01:46,856 --> 00:01:51,455 I encountered a system that was at odds with itself. 30 00:01:51,741 --> 00:01:57,751 Our produce supply chain is incredibly efficient and inefficient 31 00:01:57,751 --> 00:01:59,571 all at the same time. 32 00:01:59,571 --> 00:02:02,221 First, here's how it's efficient. 33 00:02:02,221 --> 00:02:06,221 It produces huge quantities of food at low prices. 34 00:02:06,659 --> 00:02:09,009 And here's how it's inefficient. 35 00:02:09,009 --> 00:02:13,536 Our fresh produce holds up to travel great, 36 00:02:13,536 --> 00:02:17,276 but it can't uphold taste at all. 37 00:02:17,276 --> 00:02:21,116 In fact, we grow produce for travel and not for eating. 38 00:02:21,467 --> 00:02:27,477 The system breeds foodborne illness, and it's killing our environment. 39 00:02:27,989 --> 00:02:32,779 Our fresh produce supply chain is industrialized and centralized 40 00:02:32,779 --> 00:02:38,999 to the point that it's an enormous consumer of land, of water, of crude oil 41 00:02:38,999 --> 00:02:40,579 and natural gas. 42 00:02:40,579 --> 00:02:43,429 The more I learned, the more I came to realize 43 00:02:43,429 --> 00:02:46,370 that for all the good intentions to feed the world, 44 00:02:46,370 --> 00:02:50,210 parts of our food supply chain aren't merely inefficient - 45 00:02:50,210 --> 00:02:51,690 they're toxic. 46 00:02:52,100 --> 00:02:56,310 If TED is about inspiration - well, I was inspired. 47 00:02:56,312 --> 00:02:59,892 I was inspired to rethink the produce supply chain. 48 00:02:59,892 --> 00:03:01,088 I was more than inspired. 49 00:03:01,088 --> 00:03:05,148 I was compelled to develop an alternative supply chain: 50 00:03:05,526 --> 00:03:07,936 one that eliminated these inefficiencies 51 00:03:07,936 --> 00:03:14,836 and that prioritized farmers, quality food, our health, the environment 52 00:03:16,066 --> 00:03:20,066 and still produced large quantities of food at low prices. 53 00:03:21,211 --> 00:03:23,330 I want to make a full stop here for a second. 54 00:03:23,330 --> 00:03:27,535 I want to ask each one of you to visualize the best tomato 55 00:03:27,535 --> 00:03:29,195 you've had in the last year. 56 00:03:29,675 --> 00:03:31,005 Do you have it? 57 00:03:31,185 --> 00:03:35,715 I want you to raise your hand if it came from a supermarket. 58 00:03:36,778 --> 00:03:38,098 (Laughter) 59 00:03:39,481 --> 00:03:41,451 I can't believe that there's really zero. 60 00:03:41,451 --> 00:03:42,461 (Laughter) 61 00:03:42,461 --> 00:03:45,901 Although I am not surprised that it would've at least been close to zero. 62 00:03:45,901 --> 00:03:48,771 People typically visualize the tomato from farmers' markets - 63 00:03:48,771 --> 00:03:49,921 probably a lot of that - 64 00:03:49,921 --> 00:03:51,891 gardens and restaurants. 65 00:03:51,891 --> 00:03:57,451 Virtually nobody, or perhaps in this case, literally nobody says supermarkets, 66 00:03:57,451 --> 00:04:01,841 even when I asked that question of supermarket executives. 67 00:04:01,841 --> 00:04:03,251 (Laughter) 68 00:04:04,607 --> 00:04:06,007 I'm serious. 69 00:04:06,571 --> 00:04:11,251 The tomato I visualized was produced by a six-year-old, 70 00:04:11,251 --> 00:04:14,991 my beautiful daughter Emilia, in our kitchen garden. 71 00:04:15,460 --> 00:04:22,090 Emilia and I like to discuss how the most important ingredient in food is love 72 00:04:22,600 --> 00:04:26,270 and how you find love in the food that someone grows or prepares 73 00:04:26,270 --> 00:04:29,300 for someone they care about personally. 74 00:04:30,770 --> 00:04:36,880 Emilia's tomato that I'm visualizing and the tomatoes she grows in the garden 75 00:04:36,880 --> 00:04:39,180 look a lot like this tomato. 76 00:04:39,180 --> 00:04:42,730 And the tomato I visualized was bursting with flavor; 77 00:04:42,730 --> 00:04:44,680 it was bursting with love. 78 00:04:45,000 --> 00:04:46,412 And this tomato? 79 00:04:48,777 --> 00:04:50,037 Sucks! 80 00:04:50,037 --> 00:04:51,377 (Laughter) 81 00:04:54,535 --> 00:04:56,815 I'm serious. That tomato was awful. 82 00:04:56,815 --> 00:04:58,685 (Laughter) 83 00:05:00,363 --> 00:05:03,713 It was organic. It was expensive. 84 00:05:04,253 --> 00:05:08,363 We bought it at a fancy supermarket not far from here. 85 00:05:08,920 --> 00:05:11,330 So why does it lack taste? 86 00:05:11,330 --> 00:05:13,770 And nutrition too, by the way - they run together. 87 00:05:13,770 --> 00:05:18,200 And what does that tell us about the supermarket tomatoes and lettuces 88 00:05:18,200 --> 00:05:21,600 that we're buying and feeding to our families? 89 00:05:22,505 --> 00:05:26,125 These tomatoes are international travelers. 90 00:05:26,125 --> 00:05:30,337 They bounced here to New York from Mexico in a 53-foot truck. 91 00:05:30,617 --> 00:05:32,117 No wonder they suck. 92 00:05:34,607 --> 00:05:38,007 That's typical, by the way, for US supermarket tomatoes in the winter. 93 00:05:38,007 --> 00:05:43,597 Did you know that nearly 100 percent of supermarket lettuces in the US 94 00:05:43,597 --> 00:05:45,197 come from just two places? 95 00:05:45,197 --> 00:05:49,987 Near Salinas, California, in the summer and Yuma, Arizona, in the winter. 96 00:05:50,411 --> 00:05:54,771 These lettuces travel 3,000 miles to reach the local grocery store here. 97 00:05:54,771 --> 00:05:59,051 It's no surprise that lettuce is prone to rotting before it's purchased 98 00:05:59,051 --> 00:06:01,121 or right when people bring it home. 99 00:06:01,121 --> 00:06:03,821 This causes huge losses for supermarkets, 100 00:06:03,821 --> 00:06:08,021 and it makes my wife, who loves fresh baby spinach, unhappy, 101 00:06:08,021 --> 00:06:09,411 which makes me unhappy. 102 00:06:09,411 --> 00:06:10,521 (Laughter) 103 00:06:10,907 --> 00:06:15,387 Produce executives, produce buyers, they don't want this. 104 00:06:15,387 --> 00:06:19,027 They've actually got families of their own that they're feeding with produce, 105 00:06:19,027 --> 00:06:20,187 and they're good people. 106 00:06:20,187 --> 00:06:22,957 But they're not just good people - they're business people. 107 00:06:22,957 --> 00:06:25,367 They want to bring you quality produce, 108 00:06:25,367 --> 00:06:29,757 but they need to buy large quantities of produce at low prices. 109 00:06:29,757 --> 00:06:32,237 And right now, there's only one option for that, 110 00:06:32,237 --> 00:06:36,007 which is our industrialized and centralized food system. 111 00:06:37,247 --> 00:06:41,297 Incrementalism isn't going to do it. 112 00:06:41,677 --> 00:06:45,462 Moving food faster or better through this system 113 00:06:46,302 --> 00:06:48,027 isn't going to solve these problems. 114 00:06:48,027 --> 00:06:52,497 It's time for a revolution in the produce supply chain. 115 00:06:52,497 --> 00:06:59,387 Can you imagine a revolutionary new system that had fewer miles, fewer trucks, 116 00:06:59,387 --> 00:07:01,627 fewer tasteless tomatoes, 117 00:07:01,627 --> 00:07:07,277 that had less foodborne illness, less crude oil and less rotting lettuces? 118 00:07:07,279 --> 00:07:09,989 Can you imagine a revolutionary supply chain 119 00:07:09,989 --> 00:07:12,059 where we went back to our roots 120 00:07:12,059 --> 00:07:15,649 and grew and sold produce in the same community 121 00:07:15,649 --> 00:07:21,069 by a farmer who, like Emilia, grew for taste instead of for travel? 122 00:07:21,069 --> 00:07:23,129 And maybe even with a little bit of love. 123 00:07:23,129 --> 00:07:24,759 You think that'll be better? 124 00:07:25,579 --> 00:07:27,054 Do you think that'll be better? 125 00:07:27,054 --> 00:07:28,189 (Audience) Yes. 126 00:07:28,189 --> 00:07:29,725 We think so at BrightFarms too. 127 00:07:29,725 --> 00:07:31,045 And you know who else does? 128 00:07:31,045 --> 00:07:33,755 Produce buyers at supermarkets, they do too. 129 00:07:33,755 --> 00:07:36,585 In fact, nearly 20 percent of the top 50 US supermarkets 130 00:07:36,585 --> 00:07:38,515 are already working with BrightFarms 131 00:07:38,515 --> 00:07:42,015 to try to make this revolutionary new system a reality. 132 00:07:42,235 --> 00:07:45,855 The industry is reacting with huge enthusiasm. 133 00:07:45,855 --> 00:07:51,415 Produce buyers sincerely want to bring great food at great prices 134 00:07:51,415 --> 00:07:52,465 to their customers. 135 00:07:52,465 --> 00:07:54,375 They just need a better option. 136 00:07:54,847 --> 00:07:57,917 So, how is BrightFarms going to do this? What are we doing? 137 00:07:57,917 --> 00:08:01,617 How are we going to bring large quantities of food at low prices 138 00:08:01,617 --> 00:08:04,447 that's better quality and better for the environment? 139 00:08:04,447 --> 00:08:07,077 It sounds hard, but the answer is surprisingly simple. 140 00:08:07,077 --> 00:08:09,777 We're building greenhouse farms, 141 00:08:09,777 --> 00:08:13,147 but it's how we're building them and where we're building that matters. 142 00:08:13,147 --> 00:08:14,944 We're building them at supermarkets, 143 00:08:14,944 --> 00:08:17,594 on their roofs, at their distribution centers 144 00:08:17,594 --> 00:08:20,544 and always in their communities. 145 00:08:20,544 --> 00:08:22,974 BrightFarms provides a turnkey solution. 146 00:08:23,434 --> 00:08:28,864 We finance it, we build it, we manage it for our supermarket clients 147 00:08:28,864 --> 00:08:33,394 in a way that cuts time, distance and costs from the produce supply chain. 148 00:08:33,394 --> 00:08:37,004 We're building hydroponic, recirculating greenhouses 149 00:08:37,004 --> 00:08:41,954 and recruiting farmers across the country to bring better produce to everybody. 150 00:08:42,624 --> 00:08:43,904 Here's how the deal works. 151 00:08:43,904 --> 00:08:47,644 We put up the money, we build the facility, 152 00:08:47,924 --> 00:08:51,814 we find, we nurture, we support, we train the local farmer. 153 00:08:51,814 --> 00:08:55,814 The supermarket is required to put up zero investment. 154 00:08:55,814 --> 00:08:59,424 They merely commit to buying produce that's better. 155 00:09:00,138 --> 00:09:01,778 That's not enough, by the way. 156 00:09:01,778 --> 00:09:06,088 Zero investment and better produce on their own 157 00:09:06,088 --> 00:09:07,768 doesn't satisfy their requirements. 158 00:09:07,768 --> 00:09:09,808 There's another factor, which is the price. 159 00:09:09,808 --> 00:09:12,448 If we can't meet or beat current market pricing, 160 00:09:12,448 --> 00:09:15,418 this is going to remain a fringe initiative. 161 00:09:15,418 --> 00:09:17,178 And I'm not interested in the fringe. 162 00:09:17,178 --> 00:09:19,338 I am interested in making a difference. 163 00:09:19,338 --> 00:09:22,288 But we can meet or beat existing prices. 164 00:09:22,288 --> 00:09:26,188 We do it by having a shorter and simpler supply chain. 165 00:09:27,407 --> 00:09:33,354 More than half the cost of this lettuce isn't the lettuce - 166 00:09:33,354 --> 00:09:38,294 it's the long and complex supply chain that gets it to your local grocery store. 167 00:09:38,294 --> 00:09:41,754 We simply operate without that long and complex supply chain, 168 00:09:41,754 --> 00:09:45,924 so we have lower operating costs than the traditional industry. 169 00:09:45,924 --> 00:09:50,684 We can sell at low enough prices to meet or beat current market prices. 170 00:09:51,169 --> 00:09:55,169 This is a case where less is truly more. 171 00:09:56,188 --> 00:09:58,112 So, is our business model working? 172 00:09:58,112 --> 00:09:59,132 It is. 173 00:09:59,132 --> 00:10:00,832 We actually just recently announced 174 00:10:00,832 --> 00:10:03,302 the industry's first long-term produce agreement. 175 00:10:03,302 --> 00:10:06,252 It's with a great supermarket called McCaffrey's. 176 00:10:06,252 --> 00:10:10,132 We're building them a greenhouse at their store in Yardley, Pennsylvania. 177 00:10:10,132 --> 00:10:12,842 And I want all of you to go there and check it out. 178 00:10:12,842 --> 00:10:16,406 Jim McCaffrey, like many supermarket executives, 179 00:10:16,406 --> 00:10:19,166 cares deeply about his customers. 180 00:10:19,756 --> 00:10:22,696 He's not just a great businessman. 181 00:10:22,696 --> 00:10:24,326 He's a visionary as well. 182 00:10:24,326 --> 00:10:28,519 And he had a vision to commit to a revolutionary new system 183 00:10:28,519 --> 00:10:33,189 that's bringing better tomatoes and consistent, fantastic lettuces 184 00:10:33,189 --> 00:10:36,339 to his store shelves on the day that they're picked. 185 00:10:37,003 --> 00:10:41,473 And by the way, we care about McCaffrey's customers 186 00:10:41,473 --> 00:10:42,873 as much as Jim does. 187 00:10:42,873 --> 00:10:46,433 We're not going to be anonymous, 3,000 miles away. 188 00:10:46,433 --> 00:10:49,243 Our farmer won't be 3,000 miles away. 189 00:10:49,243 --> 00:10:52,313 He'll be three blocks away from the store. 190 00:10:52,313 --> 00:10:53,463 He'll be living, 191 00:10:53,463 --> 00:10:58,103 sending his kids to school, creating jobs and growing produce 192 00:10:58,103 --> 00:11:00,852 in the same community as McCaffrey's customers 193 00:11:00,852 --> 00:11:04,412 and shopping in the same produce aisles right there with them. 194 00:11:05,652 --> 00:11:11,152 When we started - earlier, I said that TED Talks were about inspiration. 195 00:11:12,180 --> 00:11:15,450 I've been inspired by many of you here today, and I thank you for it. 196 00:11:15,450 --> 00:11:18,955 And I hope I've had the chance to inspire some of you as well, 197 00:11:18,955 --> 00:11:23,805 inspire you to not be discouraged by the problems you're facing 198 00:11:24,246 --> 00:11:27,126 with the supply chains in which you feel like you're stuck, 199 00:11:27,126 --> 00:11:29,746 but instead, to think about these challenges 200 00:11:29,746 --> 00:11:32,796 as opportunities to start your own revolutions. 201 00:11:32,796 --> 00:11:34,136 And in our case, 202 00:11:34,136 --> 00:11:38,516 a revolutionary opportunity to bring our society produce 203 00:11:38,516 --> 00:11:42,906 that's safer, healthier, tastier, better for the environment 204 00:11:42,906 --> 00:11:46,896 and bursting with the most important ingredient of all: love. 205 00:11:46,896 --> 00:11:48,716 (Applause)