Water Ways Technologies, a Canadian company offering Israeli based smart agriculture and irrigation solutions, has formalized a strategic partnership with BF AGRITECH, an Israeli agricultural technology firm that specializes in crop development for controlled environments. The collaboration, established through a Tomato Seed Transfer and Breeding Agreement signed marks a concerted effort by both entities to create a proprietary tomato hybrid suited for vertical farming within closed structure environments.
Development Agreement and Financial Terms
Under the terms of the agreement, BF AGRITECH has been contracted by Water Ways to develop a unique tomato hybrid, referred to as “the Hybrid”, designed specifically for vertical farming systems. The financial arrangement includes a payment of US$ 200k to be made by Water Ways over a twelve month period. An upfront installment of US$ 50k is payable at the time of signing, with the remaining amount to be disbursed over the course of the contract. This funding will support the research, breeding and development activities undertaken by BF AGRITECH to create a variety that meets the cultivation needs of vertical indoor systems.
Licensing and Intellectual Property Framework
The agreement grants Water Ways a worldwide commercial license to utilize the Hybrid once it has been developed. However, all intellectual property rights associated with the Hybrid will be retained by BF AGRITECH. While Water Ways will have full commercialization rights on a global scale, any sales of the Hybrid made outside of North America will be subject to a 15% royalty fee payable to BF AGRITECH. This licensing structure enables Water Ways to market the variety across international markets while recognizing BF AGRITECH’s ownership of the breeding work.
Planned Vertical Farming Facility in Ontario
In conjunction with the development agreement, Water Ways has announced its intention to construct a vertical farming facility in Ontario dedicated to growing the new tomato hybrid. The facility is expected to break ground in the fourth quarter of 2025. However, the commencement of construction is contingent on the successful development of the Hybrid and other related factors. The planned facility is part of Water Ways’ broader strategy to implement vertically integrated agricultural production models adapted to controlled environments.
Strategic Objectives and Market Focus
The partnership is aimed at meeting the growing demand for sustainable indoor farming solutions. By focusing on the development of a crop variety tailored to the specific conditions of vertical farming, both Water Ways and BF AGRITECH seek to support high efficiency, resource optimized agricultural practices. The Hybrid is expected to be cultivated in environments where land, water, and external climate conditions are constrained, thereby supporting food production in urban and semi-urban settings.
The agreement includes a clause that allows either party to terminate the arrangement with a 30 day written notice, providing flexibility in the event of changes in strategy or project feasibility.
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Partner Profiles and Technological Focus
BF AGRITECH is known for its work in developing crop varieties suited for non traditional agricultural formats. Leveraging proprietary breeding technologies, the company focuses on crops that can perform effectively in high density, climate controlled environments such as vertical farms. Its expertise lies in adapting conventional varieties to meet the challenges of modern farming systems where environmental control and space optimization are critical.
Water Ways Technologies operates across North America and delivers agricultural technology solutions developed in Israel. Its offerings include precision irrigation systems and digital agriculture tools designed to support efficient crop management and resource use. The company’s work spans a range of crop types and farming systems, with a particular emphasis on sustainable practices and scalable models.
Alignment with Sustainable Agriculture Practices
The collaboration between Water Ways and BF AGRITECH represents a targeted initiative to align crop development with infrastructure suited for vertical farming. By focusing on the genetics of tomatoes cultivated under artificial lighting, regulated temperature and hydroponic conditions, the partnership aims to bridge the gap between traditional field based breeding and the requirements of modern indoor farming operations. The resulting hybrid is anticipated to meet both commercial productivity benchmarks and sustainability metrics, offering a tailored solution for emerging agricultural models that prioritize space and resource efficiency.
The development of the Hybrid and the planned facility in Ontario underscore the partners’ mutual commitment to advancing high efficiency food production systems in response to evolving market and environmental demands.
