New guide to support growers with controlled environment agriculture

A new guide has been published today (20 March) to help growers who want to explore the potential for controlled environment agriculture (CEA) in rural and island locations.

CEA is the practice of growing crops in a controlled setting where factors like temperature, light, humidity, and nutrients can be carefully managed for optimal plant growth.

The guide is for existing growers looking to diversify their production systems, as well as for businesses, community groups, and small or medium sized enterprises (SMEs) with little or no horticultural experience.

It outlines options, technologies, market research, and practical considerations for businesses and organisations and includes four case studies.

The guide has been produced following a study commissioned by SEFARI Gateway (Scottish Environment, Food and Agriculture Research Institute) on behalf of Highlands and Islands Enterprise (HIE) and Orkney Islands Council (OIC).

This study was carried out by Anna Sellars and Sterre Vester of SAC Consulting, part of Scotland’s Rural College (SRUC), as a fellowship focused on identifying sustainable business models for CEA in the region.

A detailed report of the research recommends collaborative pilot projects as an effective way to test a range of CEA business models and gather robust evidence on feasibility, costs and market opportunities.

It highlights a number of challenges relating to CEA, including financial sustainability, the limitations of high-tech systems such as vertical farming, and the constraints of centralised supply chains.

It also identifies several promising opportunities for CEA development in the Highlands and Islands. These include lower-tech solutions, such as polytunnels or container farms, which offer a more accessible entry point for SMEs.

CEA also has the potential to support rural repopulation, contribute to a just transition and stimulate future‑facing skills and employment opportunities.

The report sets out a series of recommendations to address knowledge gaps, identify strategic opportunities, and make sure CEA development aligns with local needs, market conditions and sustainability goals.

These include further research into the economic feasibility of CEA and market demand for CEA-grown produce. Another is that HIE should embed community wealth building principles into its support for CEA.

A strategic approach to increasing feasibility and reducing risks is also advised. This would focus on topics such as financial support, energy optimisation, low-tech solutions, and collaborative trials.

Senior development manager at HIE Andrea McColl said:

“It’s clear that controlled environment agriculture offers new opportunities around food security, job creation, rural repopulation and the energy transition. We very much welcome this guide and report. They’ll be extremely valuable in shaping how we look at CEA and how best to support its development in the Highlands and Islands as a growing contribution to Scotland’s economy. We look forward to working with our partners on taking forward the recommendations.”

SEFARI Gateway director Charles Bestwick said:

“The report shows that Controlled Environment Agriculture encompasses a range of approaches that can, excitingly, fit across budgets and as a realistic option for community centred business.”