Sundrop Farms

About Sundrop Farms

Sundrop Farms operates as a developer, owner, and operator of high-tech greenhouse facilities, pioneering a sustainable approach to agriculture in arid environments. The company was founded in 2009 by Philipp Saumweber, a former Goldman Sachs investment banker, and Reinier Wolterbeek, a Dutch civil engineer. Saumweber's background in finance and real asset investments, combined with a growing interest in global food security, spurred the creation of the company with the goal of decoupling food production from finite resources.

The company's business model centers on developing, owning, and operating large-scale, infrastructure-like agricultural assets, forming long-term partnerships with customers, such as major supermarket chains. A key example is the 10-year offtake agreement with Coles, a major Australian supermarket, to supply a significant portion of its truss tomatoes. This model provides revenue stability and allows for the custom design of facilities. The firm's primary revenue stream comes from the sale of its produce grown in these advanced facilities. The Port Augusta property and operating company were acquired by Morrison & Co in 2019 from private equity firm KKR, and subsequently, the property assets were sold to Centuria Capital in a sale-and-leaseback agreement in 2022.

Sundrop Farms' core offering is its proprietary food production system, the "Sundrop System," which integrates several technologies to enable year-round cultivation of high-value produce with minimal reliance on traditional agricultural inputs. This system is deployed in large-scale greenhouses located in arid regions, such as Port Augusta in South Australia. The technology combines concentrated solar power (CSP), thermal desalination, and hydroponics. At its flagship facility, a 127-meter solar tower surrounded by over 23,000 mirrors concentrates sunlight to generate heat and electricity. This energy powers the entire facility, including a thermal desalination plant that converts seawater from the nearby Spencer Gulf into fresh water for irrigating the crops. The hydroponic system grows produce, such as tomatoes, in coconut husks instead of soil, using the desalinated water mixed with nutrients. This controlled environment also mitigates the need for pesticides.

A significant milestone was the commissioning of its 20-hectare commercial facility in Port Augusta in 2016, following a successful pilot plant launched in 2010. The expansion was a $205 million project, supported by a $100 million investment from KKR and a $6 million grant from the South Australian government. This facility is capable of producing over 15,000 tonnes of tomatoes annually, representing a substantial share of the Australian market. The company has also operated facilities in Portugal and the United States.