As the foundation for a joint venture, Sydney-based Regal Funds Management has reportedly acquired a stake in farmland and water rights asset manager Kilter Rural.

Together, there are expectations that the two will soon be launching The Australian Farmland Fund, a new fund that has already raised cornerstone capital of $20 million, and which is expected to be opening initial third-party capital raising next month.

Founded in 2004 with an initial investment of $175 million from Vic Super, Kilter Rural is self-described as “a specialist manager, dedicated to investment in Australian real assets of farmland, water, and ecosystem services”. Currently the group manages $214 million in investments, and as of February of 2018, had a portfolio of 38 farms totaling 9,000 hectares growing irrigated cotton, organic wheat, organic barley, organic soybeans, tomatoes, various stone fruit crops, and hay, as well as 64 gigaliters of high and low-security water.

Throughout its holdings, Kilter Rural has installed 12,000 kilometers of sub-surface drip irrigation, fitted with sensors that enables Kilter to grow a hectare of cotton using only 7.5 megaliters of water, and has pursued a system of crop rotation with the goal of improving soil health.

“Our aim has been to invest in irrigation infrastructure, manage water and soils and put aside land of environmental value to improve it, as well as deliver on returns for investors,” Michael Neville,  GM Farmland and Ecosystems with Kilter Rural, told Weekly Times Now last February.

Neville went on to state that Kilter Rural’s farmland investments were in the process of transitioning to higher value crops through the introduction of organic production  begun in 2016.

Already accounting for the production of approximately 30 percent of Australia’s tomato crop, Kilter Rural also is expanding into intensive horticulture, earmarking 250 hectares last year to begin growing organic broccolini.

Founded by Andrew and Phillip King, also in 2004, Regal Funds Management’s maiden fund was the Atlantic Absolute Return Fund, which has in the years since averaged 31.7 percent per year, and has twice been named the Australian Hedge Fund of the Year.

More recently, Regal Funds has deviated from its usual strategies, launching two Emerging Companies funds – the first in 2016, and the second in 2018. Both focus on pre-IPO investments, unlisted expansion capital, and listed microcap investments, and each are closed-end funds with a five-year term and a one-time subscription date, according to the company’s website.

The soon-to-launch Australian Farmland Fund has been established as a vehicle to invest in capital constrained farmland assets that are under-utilized or are in need of development, and water assets with access to irrigation – a strategy that is directly in Kilter Rural’s wheelhouse.

“Our key metric is return per megalitre to measure the performance of crops, because water is the most expensive input,” Neville told Weekly Times Now. “We are all about trying to stabilise [sic] that return to the investor each year.”

-Lynda Kiernan

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Consolidated Pastoral Company (CPC) has sold three cattle stations in the Northern Territory and Western Australia to Vietnamese investment group Clean Agriculture and International Tourism (CAIT) in a deal valued at $135 million.

Held by UK private equity firm, Terra Firma, rumors about the sale of the CPC portfolio have circulated since November of 2014. In October 2018, CPC began the process with the sale of Nockatunga Station, a bullock fattening operation located in southwest Queensland, to the Harris family’s Cleveland Agriculture.

Prior to the sale of Nockatunga, CPC  owned and operated a portfolio of 16 cattle stations with a carrying capacity of 400,000 head of cattle across 5.5m hectares of land in Australia. The company also holds an 80 percent interest in Juang Jaya Abdi Alam (JJAA), which owns and operates two feedlots in Indonesia.

This latest sale includes a linked cluster of stations: the Auvergne and Newry Stations in the Northern Territory, and the ARgyle Downs Station in Western Australia. Combined the properties total 740,000 hectares (i.8 million acres) of land, 52,000 head of cattle, as well as a plant and all equipment.

“The divestment of this cluster of three stations at a premium to net asset value reflects the quality of the stations and the investments that have been made in infrastructure in recent years,” said Troy Setter, chief executive, CPC. “Our station management and staff look forward to working with CAIT to continue to run the properties and manage the land.”

Diversifying

CAIT is a part of TH Group, a Vietnamese conglomerate active in agriculture, food, finance, and pharmaceuticals which accounts for 40 percent of Vietnam’s fresh milk production. Moving forward CAIT states that its plans for the properties include expanding into cropping and non-pastoral uses.

“CAIT’s vision to continue to invest in the properties and diversify into high value cropping and other non-pastoral use business is exciting,” said a company spokesperson.

Likewise,  despite selling off its portfolio, (CPC), one of the largest cattle producers in Australia, is diversifying its operations through expansion into crop production in the northern region of the country.

There exist a number of drivers behind the decision to expand into cropping, according to Setter, including the establishment of additional channels of income.

“…whether its sorghum hay or sorghum grain, or whether the next crop following the sorghum could be something like mangoes or melons. We’re still working through that, but we’re certainly committed to developing and looking at all opportunities in northern Australia,” Setter told ABC.

Additionally, the addition of cropping operations and higher self-sufficiency in cattle feed could make CPC stations more attractive on the market.

In a Global AgInvesting Europe 2017  presentation on the key risks and effects on farmland returns, David Sackett, managing director at Growth Farms Australia, highlighted the need for investors in Australian pastoral assets to focus on properties that bring the potential for optionality if the markets change.

Setter told ABC that the company is also open to possibly growing cotton or corn on some of its other stations.

“Some of those opportunities were developed in the 1990s, but not executed on, and hopefully over the next couple of years we can start to [take up] these opportunities.”

What Remains

After this sale, the remainder of the CPC portfolio will consist of 12 geographically diverse cattle stations with a carrying capacity of 325,000 head of cattle, totaling 3.9 million hectares (9.6 million acres), along with a 90 percent interest in Juang Jaya Abdi Alam (JJAA) – a joint venture that owns and operates two feedlots in Indonesia.

“The fundamentals of beef are underpinned by strong demand dynamics in Asia and around the globe,” said Setter. “The business remains a compelling platform as a whole as well as attractive in parts, and the sale process continues for both of these options.”

“CPC’s geographically diverse portfolio positions the business well in the current market. The business is benefiting from investments in fencing and watering holes as well as genetics, and our Indonesian supply chain provides a route to market in a large high growth market.”

Lynda Kiernan 

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Recombinetics, the pioneering gene editing biotech company that developed hornless cattle, closed on a $34 million Series A in August 2018.  The round was backed by investors hailing from Minnesota, Wisconsin, and New York, though the identity of the investors was not made public.

Founded by Dr. Scott Fahrenkrug in 2008, Recombinetics’ single gene editing platform supports three business lines: Acceligen (precision breeding to enhance health, well-being and productivity in food animals and aquaculture); Surrogen (gene-edited swine models of human diseases for biomedical research and pre-clinical trials by pharmaceutical and medical device companies); and Regenevida (development of human regenerative products including cells, tissues, and organ products in swine models for exotransplantation to humans).

“We’re pleased to announce the successful completion of our Series A Round,” said Tammy Lee, president and CEO of Recombinetics. “This financing will allow us to accelerate commercialization of this transformative science to help find cures for human diseases, develop new regenerative medicine products and breed animals that are healthier and more productive.”

Already the holder of 22 patents, with a pipeline of 300 more that are pending, the company will also use the funding to add to its robust IP and patent portfolio, build out its business development, product marketing and management team, and to avail itself of licensing and co-development opportunities.

“The success of this capital raise reflects confidence in the vision of Recombinetics’ founders, and in the ability of the Board of Directors and management team to execute against that vision,” said Dr. Fahrenkrug, who noted that the funding also will be used for the advancement of swine pre-clinical research and so-called “oinkubators” – pigs that are used to produce therapeutic sells, tissues, and organs.

This round follows upon $7 million raised by the company in May 2017 from 10 unnamed investors. At the time, then company CEO Ian Friendly told Twin Cities Business that the company would be launching a dual-phase funding plan at the end of the year with an ultimate goal of raising $50 million.

“In total, we’re envisioning over the next 18 months to be in that $50 million range,” Friendly said at the time. “My sense is it will be an ongoing effort, kind of like painting the Golden Gate Bridge, but we’ll have an initial close with a combination of institution and strategic investors.”

-Lynda Kiernan  

The post Gene Editing Pioneer Recombinetics Closes $34M Series A appeared first on Global AgInvesting.

Two Canadian cannabis investors – SOL Global Investments and LGC Capital – have made investments in separate European cannabis companies.

As European nations witness the benefits of marijuana legalization occurring in North America, momentum for legalization is building across the continent. Over the course of the next decade, the European cannabis market is expected to reach a value of €115.7 billion (US$132.7 billion) with medical cannabis accounting for nearly half of the market at €55.2  billion (US$63.3 billion), according to Prohibition Partners. And given these expectations, struggling European economies are turning to marijuana to create new industries, boost GDP, and to alleviate unemployment.

SOL Global

Toronto-based SOL Global Investments announced that it has invested €1.8 million (US$2 million) in Irish medical cannabis company Green Light Pharmaceuticals in exchange for a 25 percent stake in the business.

Additionally, SOL Global has acquired the option to acquire a 75 percent stake in a future GreenLight subsidiary that successfully secures a license for cultivation in Ireland or Northern Ireland for an aggregate exercise price of approximately €1 million (US$1.15 million).

Founded in Dublin, Ireland, in 2014, GreenLight is a vertically-integrated cannabis company with cultivation operations, a seed genetics program, and a clinical R&D operation led by Dr. James Linden. The company’s R&D initiatives include participation with 13 international academic institutes and the development of dedicated GreenLight laboratories situated in various universities.

Currently the company controls its proprietary “GreenLight Food Supplements” subsidiary which provides products in Ireland and the UK. Further development is being undertaken in Spain, France, Russia, Poland, and the U.S.

“As society continues to delve into the future of using cannabis medicinally, GreenLight plans to be instrumental in forming industry-leading solutions and therapies,” Said Brady Cobb, CEO of SOL Global.

Since 2014, GreenLight’s R&D program has focused on addressing some of the foremost pharmaceutical challenges, including anti-rheumatics, oncology, immunosuppressants, and bronchodilators, and has so secured distribution agreements with 1,000 pharmacies across Ireland and the UK.

“In 2019 we expect to see the roll out of full medicinal cannabis markets in Ireland and the UK. GreenLight is primed to perform well in these developing markets with our top quality and affordable plant medicines,” said GreenLight CEO James Linden. “The expansion of our food supplements range, and the research and development of our pharmaceutical products will enable GreenLight to have a greater profile on the international scene as a major player in medical cannabis.”

LGC Capital

TSX-listed LGC Capital has closed on a US$4 million investment in Swiss cannabis producer Viridi Unit SA (Viridi). In exchange, LGC has acquired a 30 percent equity stake in the company plus a 5 percent royalty on Viridi’s net sales over the next 10 years.

“The LGC team and I are very pleased with the closing of our strategic investment in Viridi. With partners like Viridi in Switzerland, we at LGC are solidifying our presence in the legal European cannabis market which is estimated to grow upwards of $98 billion by 2025 according to a recent BMO report,” said John McMullen, CEO of LGC Capital.

As a cannabis producer, processor, and distributor, Viridi harvested and processed 20,000 plants grown at its 65,000 square-foot Geneva cultivation facility in October 2018. Using a proprietary breeding system, Viridi produces high-quality, high-CBD strains and seeds that comply with Swiss regulations of less than 1 percent THC and European Union regulations of  less than 0.02 percent THC. Through its harvest, Viridi’s work yielded 2,700 kilograms of high-CBD dried cannabis flowers which will be used as inputs for products that the company distributes under its ØNΞ Premium Cannabis brand to its 500 retail locations across Switzerland.

“As the cannabis market grows rapidly inside Switzerland and the European Union, Viridi and its ØNΞ Premium Cannabis are building a strong name as a leading provider of high quality, high CBD, compliant cannabis products in Europe,” said McMullen.

-Lynda Kiernan

The post Two Canadian Investment Firms Make Investments in Two European Cannabis Companies appeared first on Global AgInvesting.

InnovaSea Systems announced its agreement to acquire Norkek Akvakultur, a Norwegian aquatech company located in Bergen.

Once the deal is completed, Nortek Akvakultur will be integrated with InnovaSea’s Realtime Aquaculture unit to form the InnovaSea Instrumentation team.

With headquarters in Boston, Massachusetts, InnovaSea is itself part of a portfolio held by Cuna del Mar, an investment group based out of Jackson, Wyoming. Cuna Del Mar’s mission is to shift demand for seafood away from wild-caught populations and conventional fish farming systems to new production methods geared toward open ocean aquaculture that are economically viable while also being environmentally and socially sustainable. Since this segment is still in a nascent stage, Cuna Del Mar invests in early stage private companies, and targets the acquisition of assets for the development of new businesses, offering each company in its portfolio financing, governance, and advisory services.

Realtime Aquaculture is transforming how environmental monitoring is conducted on global aquaculture operations through the development of innovative, wireless underwater technology.

“Nortek Akvakultur brings us closer to the industry in Norway and adds a team of skilled developers with unique expertise developing solutions for the industry,” said David Kelly, CEO of InnovaSea. “Combining Realtime Aquaculture and Nortek Akvakultur is a logical step in growing the business and expanding opportunities both in Norway and globally.”

Since its founding 10 years ago, Nortek AS has grown to be a leading Norwegian technology company focusing on ocean currents and wave measurements.

“We’ve recently moved our operations from Oslo to Bergen, bringing us closer to the industry and our major clients,” said Tor Skoglund, managing director of Nortek Akvakultur. “This acquisition further strengthens our position by providing access to new technology that we believe can be a game changer as we work to help our customers monitor conditions in every cage.”

Currently, the company has installed its technology at more than 300 sites across all major aquaculture production regions in Norway.

“Nortek’s early transition to cloud-based systems has allowed us to successfully deploy hundreds of monitoring stations with a minimum of local effort,” said Atle Lohrmann, CEO of Nortek. “We are pleased to see how InnovaSea brings continued technological innovation to the community by using underwater communication as part of the solution.”

-Lynda Kiernan 

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After posting losses of NZ$196 million (US$133.8 million) for the financial year 2018, and undertaking a strategic review of assets, Fonterra announced it is selling its Farm Source™ livestock business to Carrfields Livestock for an undisclosed amount.

A Hard Hit

Fonterra’s fiscal year 2018 was a hard hit to the world’s largest dairy exporter. In response to crashing milk prices, the co-op made a strategic shift away from milk powders to higher margin, value-added dairy products such as cheese and yogurt. However, higher than expected prices for inputs only compounded issues.

For the 12 months ending in July 2018, Fonterra saw a net loss of NZ$196 million (US$133.8 million) after posting a profit of NZ$745 million (US$506 million) the previous year. It also saw earnings before interest and tax, excluding one-off charges, fall by 22 percent to NZ$902 million (US$616 million). On the back of such disappointing results, the company undertook a strategic review of its holdings that began with its Chinese joint venture Beingmate.

“It’s important that we give ourselves the time to take stock of where we are as a co-operative, breathe some fresh air into the business, then determine any changes that are needed,” Fonterra said in a statement at the time.

“This [review] will involve a thorough analysis of whether they directly support the strategy, are hitting their target return on capital and whether it can scale them up and grow more value over the next two-three years,” a company statement said.

“In the context of the review of the Co-op’s assets and investments, we have made the decision to sell the livestock division to Carrfields Livestock,” said Richard Allen, stores director for Farm Source™. “This will better serve the livestock team and the farms they service.”

Although the livestock business has proven to be a positive contributor to returns since its formation in 2005, Fonterra believes that the necessary capital investment to maintain and grow the business can be more efficiently used to bolster other core Farm Source™ units.

A Strategic Opportunity

Carrfields Livestock was founded more than four decades ago by Greg Carr. Today, his son Craig Carr is managing director of the company which includes 120 agents and additional administrative and support teams. Once the deal for the Fonterra livestock business is closed on March 1st of this year, Carrfields’ team will grow to 150 agents plus support staff of 30.

Craig Carr noted that the acquisition is an exciting strategic opportunity for the company, and one that will “cement our position as a forward thinking farming support business, which now gives us the ability to further attract great customers and people to our great company.”

“The acquisition will take the Carrfields Livestock team to over 150 plus livestock agents spread right across the country,” said Carrfields in a company statement announcing the acquisition. “This strategic partnership will offer Farm Source™ clients and Fonterra farmer owners access to a nationwide agent and sale yard network provided by a New Zealand family owned business.”

-Lynda Kiernan

The post Fonterra Sells Livestock Business to Carrfields appeared first on Global AgInvesting.

UK-based aeroponic tech developer LettUs Grow announced it has raised funding totaling £1 million (US$1.3million) from a combination of private and public backers.

The pioneering startup recently raised £460,000 (US$592,000) from ClearlySo, Bethnal Green Ventures, the University of Bristol Enterprise Fund II, a vehicle managed by Parkwalk Advisors, and additional angel investors.

This round was then followed by the company securing £399,650 (US$514,333) in grant funding from British innovation agency, Innovate UK to lead a £700,000 (US$900,000) project designed to enhance food security and resilience in the presence of climate change. Toward this end, LettUs Grow will work with controlled environment tech leader, ECH Engineering, and urban agriculture leaders Grow Bristol.

In addition to this funding, LettUs Grow has also been the recipient of multiple research grants including €100,000 (US$114,679) from the Green Challenge, one of the largest competitions in the area of sustainable entrepreneurship.

“Innovation is critical to ensuring long-term food security and sustainability. Our investors see the value, both in terms of financial and environmental/social returns from tackling this systemic global problem,” said Matias Wibowo, investment manager, ClearlySo. “That’s why they got involved in LettUs Grow. LettUs Grow provides the technological innovation piece to the vertical smart farming movement that is currently trending rapidly in the urban context.”

Founded in 2015 in Bristol by Ben Crowther, Charlie Guy, and the aptly named Jack Farmer, LettUs Grow has designed a patent-pending aeroponic tech system that has shown to produce leafy greens, salad crops, and herbs at a growth rate that is 70 percent above existing solutions. Through its platform, crops are grown with their roots suspended in a nutrient-dense mist, resulting in growth rates that surpass conventional hydroponics, produce predictable and consistent yields without the use of chemicals, all while using 95 percent less water compared to traditional farming.

“The global agri-tech industry is very exciting right now, all stemming from the necessity to improve the economic and environmental sustainability of food production,” said Charlie Guy. “We are fielding enquiries from all around the world from food producers and farmers who want to experience the benefits of our technology across a growing range of crops.”

This is the second vertical farming tech company on our radar for recently announcing funding.  In mid-December Canadian agtech startup INNO-3B announced it had raised C$6 million (US$4.5 million) in seed funding through a round led by Ecofuel Fund. Additional backers include Desjardins Capital, the Fonds de Solidarité FTQ, Premier Tech, Fonds de Solidarité FTQ Bas Saint-Laurent, and Investissement Québec and the Ministère de l’Économie et de l’Innovation.

It was not too long ago that vertical farming was viewed as not being an investable asset class. However, since 1982, 24 million acres of U.S. farmland have been lost to development, and the loss continues at a rate of 40 acres of farm and ranch land every hour, according to the American Farmland Trust. More specifically, the California Climate & Agriculture Network states that California, one of the top-producing agricultural states in the country, has lost an average of 50,000 acres of farmland each year for the past 30 years due to urbanization and development.

It is the ability of indoor farming to meet and alleviate these challenges that is driving the market to be expected to exceed a value of US$6 billion by 2022. And as the industry scales up and proves out how it can answer multiple challenges from traditional long transport systems, to food waste, to water conservation, to food contamination, to growing food in urban food deserts, so have the funding rounds.

Indeed, Guy said, “This injection of private and public funding into the company enables us to accelerate our innovative products to market and build one of the most technically advanced facilities for indoor growing in the world.”

-Lynda Kiernan  

The post Aeroponic Tech Startup LettUs Grow Raises US$1.3M for Patent-Pending Growing Technology appeared first on Global AgInvesting.

Laird Superfood, a producer of all-natural, functional superfood products, has raised $32 million through a private funding round led by co-working startup WeWork. This round brings Laird’s total funding to $43 million to date.

Headquartered in Sisters, Oregon, Laird Superfood was co-founded in 2015 by big wave surfer and entrepreneur Laird Hamilton. Born out of his personal regimen, the innovative company has a mission to provide simple, thoughtfully formulated, and clean superfoods to consumers.

Included in the company’s product portfolio are turmeric-infused coconut waters, ultra-caffeinated coffee, ‘performance mushroom’ that the company states harness the power of various fungi, and nutrient-dense creamers for coffee, tea, and smoothies infused with medium chain triglycerides (MCT) oils.

The company, which has declined sharing its revenue data, began selling its products primarily online for the first two years after launching. Today, its products are sold in more than 1,000 grocery and retail stores across the U.S., and sales soared by 260 percent between 2017 and 2018.

Unlikely Connection

It is unusual that the lead of a funding round for a natural superfood company would be another startup in an unrelated space. However, in September of last year, WeWork launched its Creator Fund, a venture fund to invest in startups that have a role in advancing “the future of work”. Although it has not been made clear if this investment is indeed through this new fund.

Under the terms of the round, Laird Superfoods’ products will be made available to WeWork members at select locations throughout the U.S., and Arik Benzino, WeWork’s ‘Chief We Officer’ for the U.S., Canada, and Israel, will join Laird Superfoods’ board of directors.

“Laird Superfood products give you the fuel you need for a productive life,” said Benzino. “Their holistic approach to life balance is aligned with our mission and vision here at WeWork. We could not be more excited to support this amazing company’s growth and at the same time make their incredible products available to our WeWork members and employees.”

High Performance

With the growing popularity of diets such as the Keto diet, startups offering products infused with MCT oil are gaining investor capital

Similar to Laird Superfoods, Bulletproof 360 maker of science-based, high-performance foods and beverages, and the name behind Bulletproof Coffee which mixes single-origin Rainforest Alliance Certified black coffee with grass-fed butter, announced in August 2018 that it had raised $40 million through a Series C led by CAVU Venture Partners. The round also included Trinity Ventures, an early investor in Starbucks and Jamba Juice, and Silicon Valley Bank.

This round came little more than a year after CAVU led a $19 million Series B for the company in May 2017, which also included Trinity Ventures.

Riding a wave of consumer interest and investor backing, Laird Superfoods plans to use the funds it raised to boost product development, acquisitions, expand its team, and to meet the company’s significant growth goals.

“We are incredibly grateful to our investors and the community for their continued support,” said Paul Hodge, CEO and co-founder of Laird Superfood. “Our expansion will enable us to grow our product offerings, make room for even greater innovation and double down on our presence in the industry. This growth will add a great number of jobs in Sisters and the surrounding communities, across a variety of departments, and allow us to continue to stimulate our local economy.”

-Lynda Kiernan 

The post Laird Superfood Raises $32M in Round Led by Co-Working Startup WeWork appeared first on Global AgInvesting.

SEEDS Capital, the investment unit of Enterprise Singapore, announced it will invest S$90M (US$66.5 million) in agrifood startups as co-investments with seven new partners. The plan, which will be carried out under Startup SG Equity, a scheme that facilitates private investment in startups through government co-investment, will focus on the Singapore market and was announced by Senior Minister of State for Trade and Industry Dr Koh Poh Koon on January 15.

“Agri-tech is an important sector as we work towards the vision of developing Singapore into a leading food and nutrition hub in Asia,” said Ted Tan, chairman of SEEDS Capital and deputy chief executive of Enterprise Singapore. “By leveraging on the expertise from the private sector, we will catalyse [sic] deep tech innovation through high-potential startups to develop disruptive food and agri-tech solutions, and reduce our reliance on food imports.”

The seven appointed investment partners were chosen based on varying criteria including their agrifood investment track record, their knowledge and experience, their ability to support technical development, their ability to support startups both domestically and internationally, their ability to commit to a hands-on approach in regard to investible startups, and successful commercialization or follow-on funding among the startups in their portfolios.

The seven chosen co-investors are (in alphabetical order) AgFunder, Hatch, ID Capital, Openspace, The Yield Lab, Trendlines, and VisVires New Protein. These seven will join SEEDS Capital’s 18 existing co-investment partners who have over the past three years invested more than S$130 million (US$96 million) in over 60 startups developing advancements in advanced manufacturing & engineering, health and biomedical sciences, services and digital economy, and urban solutions and sustainability.

“We are delighted to be appointed by SEEDS Capital as a co-investment partner,” said Gerard Chia, partner, ViksVires New Protein. “As one of the first VC funds to focus on disruptive solutions for a healthier, safer and more sustainable food and feed system, we see this as a mark of confidence in our investment approach. We look forward to a fruitful partnership with SEEDS Capital as we work towards achieving Singapore’s aspirations to become a leading hub for agrifood innovation.”

Under the structure of the partnerships, SEEDS Capital will provide capital at 7:3 for the first S$500,000 (US$369,000) of a co-investment, and will invest a total of up to S$4 million (US$2.95 million) for each deep tech startup.

Along with funding, SEEDS Capital and its partners also will engage in assistance that will help agrifood tech startups accelerate their rate of commercialization including facilitating networking with new business partners and support in entering new markets.

-Lynda Kiernan  

The post SEEDS Capital to Invest S$90M in Agrifood Tech Through Co-Investments with New Partners appeared first on Global AgInvesting.

Australian diversified farming business BFB Pty Ltd. announced that the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, has acquired Proterra Investment Partners’ majority stake in the business, for a reported $208 million.

Launched in 1999 and headquartered in Ottawa, Canada, PSP Investments manages C$158.9 billion (US$120 billion) in assets as of September 30, 2018. The fund controls a global portfolio consisting of private equity, real estate, natural resources, private debt, and is active in public markets, and its Natural Resources Group is already invested in Australia’s ag sector through investments in row cropping, animal protein, fresh produce, and tree nuts.

In September it was announced that BFB Pty Ltd, a diversified farming business based in New South Wales, Australia, was seeking bids from prospective corporate and superannuation bidders.

Proterra began its relationship with BFB in 2010 when it acquired a stake in the portfolio as part of its agricultural investment strategy, and this sale, which was expected to fetch in the region of $300 million, is a result of the firm looking to exit its investment.

“We are proud to have been a part of BFB’s transformation over the last 10 years into a top-tier and diverse agribusiness with deep operational expertise,” said Brent Bechtle, founding partner, Proterra Investment Partners. “We believe that PSP Investments is an ideal partner to support the next stage of BFB’s growth.”

Pushback

The sale to PSP Investment has been completed despite recent objection to the possibility. In November 2018, Agrinova, a farmer consortium in the Riverina region of Australia, petitioned the Australian government asking for answers.

Agrinova, who had reportedly bid $270 million for the business, wrote to the Australian Prime Minister questioning how the sale meets the country’s Foreign Investment Review Board’s (FIRB’s) requirement that an agricultural sale to a foreign party must be in the best interest of the nation.

In a statement announcing the acquisition, it states that after an exhaustive and competitive process, PSP’s bid was considered to be the most compelling based on a variety of factors including:

~ Its offered price;

~ Its low executive risk and creditworthiness to complete the transaction;

~ The strategic fit between PSP’s Natural Resources Group and BFB;

~ and the long-term capital at hand to support BFB’s expansion plans.

“Since partnering with Proterra in 2008, we have achieved outstanding growth underpinned by scale and efficiency,” said Terry Brabin, founder and managing director, BFB. “Now, with PSP Investments, we look forward to succeeding in the next phase of our growth strategy to support our business, employees, customers, suppliers and the broader Australian community.”

BFB (Big Farming Business)

Headquartered in Tamora and founded in 1985, BFB currently owns a 28 -farm cropping portfolio totaling a collective 44,167 hectares. In the 80s the business began as a trucking company, but soon expanded into cropping and grain storage. Today BFB is active in grain production, piggeries, and fuel and fertilizer distribution, and controls a 332,000-ton grain storage facility owned in partnership with Cargill to supplement on-farm storage for BFB properties, and to integrate grain trading, storing, and blending to the business, reports Grain Central. Additional grain storage totaling 75,300 tons is spread across various BFB sites.

Moving forward, BFB will maintain its current business structure and headquarters, and its current management team will remain in place.

“We are impressed with BFB’s team, performance and integrated business model, and we are excited to partner with them in their continued strategic development,” said Marc Drouin, managing director and Head of Natural Resources, PSP Investments. “This investment is emblematic of PSP’s strategy to partner with world-class and like-minded local operators who are also committed to best practices in the areas of employee health and safety, the environment, community engagement and corporate governance.”

“We have full confidence in BFB’s Management team and its employees to continue to grow this incredible farming business, for the benefit of BFB, the local community and Australia’s agricultural sector.”

-Lynda Kiernan

The post Canadian Pension PSP Investments Acquired Majority Stake in One of Australia’s Largest Grain Growers appeared first on Global AgInvesting.

Louis Dreyfus Company (LDC) B.V. announced its intentions to exit its dairy business by the middle of this year. The announcement comes amid a strategic overhaul of its business started three years ago that will allow the company to focus on its core businesses, including investments in origination and destination markets, vertical and horizontal downstream development with an eye toward end consumers, and expansion in food innovation.

Louis Dreyfus has been in the dairy business for 10 years, originating supplies from North America, Europe, Oceania, and South America, and shipping milk powder, whey, and lactose to high-demand and emerging markets across Asia, the MENA region, Mexico, and North America.

“LDC’s Dairy Platform was identified as non-core in 2017 due to its lack of critical mass within the company’s portfolio,” said CEO Federico Cerisoli. “The business accounted for roughly 1 percent of our revenues in 2018 and demanded substantial working capital resources. LDC has been evaluating the best way to exit the business, either through an orderly wind down or a sale to potential buyers – these efforts are continuing and an exit will be implemented by the middle of this year.”

As a member of the ABCD global commodity traders that include Archer Daniels Midland (ADM), Bunge, Cargill, and Louis Dreyfus, Louis Dreyfus is not alone in facing significant headwinds in recent years due to adverse market conditions, bumper crops, high global stockpiles, and low prices.

These conditions have led each of the top four traders to undertake strategic restructuring and reorganization through streamlining operations, seeking out joint ventures, or shifting focus along the value chain in search of greater margins. As part of this strategy, in June of 2017, Louis Dreyfus announced the sale of Fertilizers and Inputs Holding B.V. – the holding company of Louis Dreyfus’ African fertilizers and inputs business to Helios Investment Partners for $200 million.

With the goal of reaching further downstream, at the end of 2018 the company announced the creation of a new role in the organization – Head of Food Innovation & Downstream Strategy, and the appointment of Kristen Eshak Weldon to the position.

“…I am confident that her appointment will contribute to LDC’s successful implementation of our strategic plans and projects to innovate in food and move further downstream, as we strive to meet global demand for food and sustain a growing population,” said Ian McIntosh, chief executive officer and member of LDC’s executive group at the time.

Historically, LDC’s business structure involved two pillars: Value Chain and Merchandising. However, last year the company’s evolution led to a shift whereby the Value Chain unit today includes the Juice, Grains, and Oilseeds platform along with Freight and Global Markets – what was once called the Finance Platform. The Merchandising pillar now includes the combined sugar, rice, coffee, and cotton segments.

One category that Louis Dreyfus has marked as being a core business has been its orange juice division, and through a spokeswoman, the company has expressed to Reuters that it will be seeking out partners able to support a growth strategy that would require “significant investment”.

In its most recent earnings disclosure issued in October 2018, LDC posted net income of $101 million for its first half ending June 30 – a decline of 37 percent compared to net income of $159 million for the same period a year prior.

However, the exit from its dairy business is not expected to have a negative impact on the company’s results.

“The exit will have practically no impact on our global sales … and is expected to have a slight positive effect on our working capital from 2019 onwards,” said Cerisoli.

-Lynda Kiernan 

The post Louis Dreyfus Exiting Dairy Business by Mid-2019 appeared first on Global AgInvesting.

Arable Capital Partners announced its acquisition of US Irrigation, a California-based irrigation design and rental service company. The company will go on to become a part of Arable’s newly-formed platform, Laurel Agriculture + Water Solutions (Laurel Ag).

The launch of Laurel Ag was only announced in December 2018. Having rapidly closed on the acquisition of three highly respected irrigation companies, Arable forged Laurel Ag in which to combine these strategically chosen holdings into a single platform that focuses on precision water solutions and agriculture products developed to revolutionize the industry, and to help farmers and managers reach their goals.

The three acquisitions that were combined to form the foundation for Laurel Ag, and which US Irrigation will join include:

~ Lodi Pump and Irrigation, a California-based company in business for 30 years that sets the standard for drip and sprinkler irrigation design and service, acquired in July 2018.

~Hydratech, a full-service irrigation company and leader in the advancement of micro irrigation tech located in Delano, California, acquired in April 2018.

~ Universal Irrigation &  Supply, a full service irrigation and supply company offering premium design and service in California’s Central Valley region, acquired in August 2018.

“We are excited to join the Arable and Laurel Ag team,” said Jon Tkac, founder of US Irrigation. “This new organization is filled with the top leaders of this industry, and we are honored to bring what we have at US Irrigation to the table to better serve our customers in new ways.”

And a Maiden Fund

The launch of Laurel Ag comes only months after Arable Capital closed on its maiden fund at $300 million in August 2018.

Headquartered in Bellevue, Washington, and Bakersfield, California, Arable was launched by a team of highly-experienced industry veterans who are aiming to fill the funding gap that exists in the food and agriculture sectors.

Aware that by its very nature, agriculture requires a long-term investment outlook, Arable is targeting investments in operations headquartered in the Western region of the U.S. – often with family management or operating teams, along the entire agricultural supply chain – that will have a span of 15 or more years.

Chris Brenes, vice president at Arable Capital Partners, told GAI News that the focus of the fund will be on operating businesses in agriculture, so investments could be anywhere in the spectrum of crop types as well as businesses that aren’t tied to a particular crop.

A Crown of Laurel

In illustrating its drive for a collaborative relationship with its customers, Laurel Ag, whose name is based on the interlocking leaves of the laurel crown, will act as the foundation from which to grow the common commitment among Hydratec, Lodi Pump & Irrigation, Universal Irrigation, and now US Irrigation, for unsurpassed customer service.

The inclusion of US Irrigation in the Laurel Ag platform will bring greater diversification through its irrigation pipe rental service, and will bring complimentary services through its irrigation design capabilities.

“It’s an exciting time at Laurel Ag as we welcome Jon Tkac and the rest of the US Irrigation team into the fold,” said Derek Yurosek, managing director, Arable Capital. “Not only do they bring their years of experience, they bring an exciting energy to what can be done as we grow together. Irrigation rental services were an element we knew we needed to have within Laurel Ag, and we are excited to provide that throughout Laurel Ag and for our customers.”

-Lynda Kiernan  

The post Arable Capital Partners Expands Laurel Agriculture + Water Solutions with Acquisition of US Irrigation appeared first on Global AgInvesting.

by Lisa Hurst, dirt-to-dinner.com

The Dirt:

We need protein as part of a healthy diet— and many of us turn to meat as a source. Satisfying the projected growth in worldwide protein demand is a complicated task and doesn’t lack for controversy. Cell-based meat, an innovative protein, is being accepted as a viable component of a healthy, robust protein source. But what should we call it?

The world needs more protein.  

Population growth and rising standards of living will increase the demand for animal meat and vegetable proteins in the decades ahead. Experts say we will need 50 percent more protein by the year 2050 to provide adequate protein for everyone.

What are the alternatives to animal production? 

Many argue for a greater consumption of vegetable proteins. Indeed, plant-based protein products, such as Beyond Meat, are now a significant factor in the marketplace. 

But entrepreneurial scientists have recently generated another alternative: cell-based meat, where cells from an animal are cultured and grown in a lab.

Dirt-to-Dinner examined “meatless meat”  in  A New Burger. Since that report, the science and industry behind this new source of protein continues to develop. Companies such as Memphis Meats, Mosa Meats, and Modern Meadow also report positive feedback of cell-based meat as a legitimate player in the protein sector.

“At Memphis Meats, we have a ‘big tent’ philosophy, and collaboratively work with consumers, regulators, mission-oriented groups and major meat companies to help feed a growing planet in a sustainable way. This is a goal that everybody shares,”  said Uma Valeti, CEO of Memphis Meats.

Trending today is a positive reaction from consumers on texture, taste, and other matters important to consumer acceptance of the product.  Production advances are slowly working on bringing the price point and availability for the product into a range acceptable to consumers.

Grilled Duck, Memphis Meats

But one key element of the developmental process remains unresolved – and is a source of high emotion, intense debate, and competition…

It’s what to call this innovative meat!

“Cell-based meat” is a leader within the industry. Cell-based is a neutral, scientifically accurate term that is commonly used by proponents, detractors, and neutral observers alike. It references the composition of the products in this category. It parallels and creates clear distinction from “plant-based protein” and “animal-based meat.”

“Cultured meat” has been discussed in the nomenclature debate. After all, the meat is produced from a cultured sample of the cow, chicken, pig, fish, or other target animal. But “cultured” is used in describing fermented foods such as yogurt and even cured meat, so this could lend itself to consumer confusion.

“Laboratory meat” or “lab meat” may conjure up images from a sci-fi movie. Consumers like foods that invoke happy images of a well-fed and satisfied family, not a science lab.

Another contender, “clean meat”, calls attention to the lab’s sanitary conditions, but is yet another unsavory mental image for the shopper. The term “clean” also draws objections from those who fear it suggests other types of meat aren’t clean and are therefore somehow suspect.  Consumer advocacy groups worry if the product is called “clean meat”, consumers may assume it is safe and won’t take adequate precautions in preparing it for consumption.

With the innocence and cyber-world orientation that comes with youth, a 12-year-old listened patiently to the debate and responded with a different approach to the type of name that seems right.  “You’re talking about a new kind of protein, really.  You know, Protein 2.0.”  

The roster of possible names goes on and on, as do the objections and concerns.  Some animal producers even question whether the product should be called “meat” at all.

Why is this naming debate so important? 

The name serves as the frontline effort to introduce this important new source of protein to the global marketplace. For most of the public, the product’s name will be the first step in building its awareness and introducing its value to consumers. A name that turns people off will do as much to impede or accelerate acceptance of the product as any other single factor. To understand this challenge, look no further than the difficulty of the public acceptance of GMOs. 

In an ideal world, this new source of protein – whatever it is called – shouldn’t be used to promote one type of protein over another (e.g., “superior” in terms of value, quality, economic cost, natural resource demands, ethicality, or humaneness).  A name that seems to disparage another protein source could provoke an unhealthy competitive environment within the sector when a collaborative effort to boost protein production is most needed.

The name also has implications for the relationship of this emerging industry with government. In a November 2018 statement, the FDA and USDA proposed a ‘joint regulatory framework wherein FDA oversees cell collection, cell banks, and cell growth and differentiation, and the USDA will oversee the production and labeling of food products derived from the cells of livestock and poultry.”

The Bottom Line:

The naming convention of cell-based meat spans far beyond the label. The name of this new protein will affect consumer acceptance (or rejection) and will ultimately help or hinder its growth within the protein sector. Leaders in this sector want to present a unified front to consumers – a group united in a shared commitment to providing the growing population with the protein it needs.

The post Contributed Content: Meatless Meat, It’s All In The Name appeared first on Global AgInvesting.

by Lucy M. Stitzer, dirt-to-dinner.com

The Dirt:

Sugar can be addictive and bad for your health. What if there was a healthier option? At Dirt-to- Dinner, we love our desserts, but we don’t love the negative effects of these sugary treats! Tagatose, a rare sugar, may be the answer to the world’s craving for sweets.

Sugar is the holy grail of sweetness.

Along with having the perfect texture and mouth-feel, sugar also makes foods taste sweet. It is inexpensive to produce and is a very flexible cooking ingredient. Its properties can withstand freezing temperatures, as in the case of ice cream, as well as high heat, as in the case of warm chocolate chip cookies. 

Being that it is in most of our favorite treats, it is no surprise that the body craves it! When we ingest sugar, a chemical reaction occurs in the brain where dopamine is released. Dopamine triggers a feel-good sensation in the body and causes the body to crave more of the sugar.

It is no wonder that the United States ate 11 million metric tons of sugar in 2018 alone – that is 81 pounds per person per year!

It is a struggle to keep sugar at arms-length. According to Mintel, 87 percent of consumers are cutting back on sugar in their diet, but white granulated sugar, honey, brown sugar, and maple syrup are still the top five choices. These products still get processed in the body the same way. So, consumers remain confused!

Tagatose may be the answer to the world’s craving for sweets.

Tagatose is a good-for-you sugar. Good for you? Seems impossible, but true: tagatose is healthy and has all the physical properties of granulated sugar.

When we were introduced to Bonumose, a tagatose manufacturer, at an iSelectFund event, we were naturally a bit skeptical. The idea of a “healthy” and delicious sugar seemed impossible. How does it stack up against real sugar?

Tagatose has many health benefits.

It is a Prebiotic. Tagatose feeds the healthy bacteria in your gut. The small intestine absorbs about 25 percent of tagatose and then it gets eliminated. The rest goes to the large intestine where it is fermented by probiotics which, in turn, benefits your colon and overall health. Tagatose also helps inhibit the absorption of fructose and glucose in the liver.

Remember, prebiotics feed the probiotics in your gut. Tagatose has a symbiotic relationship with certain healthy gut probiotic bacteria that prefer to consume tagatose over other bacteria – a perfect match for a healthy immune system. 

No glycemic spike and it lowers your blood sugar. Tagatose can slow down glucose levels in both healthy and diabetic individuals. It even has the potential to be a treatment for diabetes. It inhibits the absorption of sucrose and maltase in the small intestine, thus lowering blood sugar levels. Through clinical trials, it has been shown to increase HDL cholesterol (the good kind).

Assists in weight loss. Tagatose provides sweetness without the same amount of calories as regular sugar. It has 1.5 calories per gram versus sugar’s 4 calories per gram. Tagatose has fiber-like characteristics, so it gives satiety and doesn’t make one crave more.

Tooth Friendly. It is well known that sugar promotes tooth decay. Tagatose has been reviewed by the FDA and is approved to be a non-tooth decay sweetener. It can be used in toothpaste and mouthwash.

Generally Recognized as Safe (GRAS). In 2004, the FDA gave tagatose status to be used as a sweetener in foods and beverages. The European Union has allowed tagatose to be used as a “novel food ingredient” without any restrictions on usage. However, research has shown that amounts over 10-15 grams per meal or 45 grams per day may cause gastrointestinal distress in some people.

Tagatose is categorized as a rare sugar.

Tagatose is one of many other monosaccharides found in limited amounts in nature and fruits such as apples, oranges, pineapple, as well as milk, certain grains, and cacao. Rare sugars have been expensive to produce and cannot be mass produced like sugar cane, honey, or maple syrup. Because of this, rare sugars have not been considered for use as a sweetener, until now.

Studied for 30 years in South Korea and Japan, tagatose was first created from extracting and fermenting lactose in dairy milk. In Asia, it has been used as a sweetener but in limited amounts. CJ Cheiijedang in South Korea is the largest producer. Still, because of its expense, it has not been widely used as a food ingredient. While you can purchase tagatose on Amazon for about $16.00 per pound, cane sugar is roughly $1.60 per pound.

Bonumose has a patented production technology that could be a game changer.

Located in Charlottesville, Virginia, Bonumose has patented a process to make tagatose from low-cost starch. Their process uses run-of-the-mill corn starch or by-product starch from potato processing, pea protein production or even tapioca, which is abundant in Southeast Asia. Their patented process is a combination of water and a proprietary enzyme blend which produces extremely high yields of tagatose. As a result, they can reduce the production cost by at least 75 percent.

Bonumose is led by CEO Ed Rogers, who began his career as an Alabama litigator and an entrepreneur in animal food technology. Rogers teamed up with Dr. Daniel Wichelecki, biochemistry Ph.D., shortly after Dr. Wichelecki finished his post-doc work at the University of Illinois Urbana- Champaign. Dr. Wichelecki invented the starch to tagatose technology.

Bonumose is a B2B company that will be selling tagatose for formulation in beverages, dairy products, and healthy snacks.

“By driving down the cost of tagatose, we can make it possible for companies to produce healthy, delicious, vitality-improving foods and beverages that are affordable for all income levels,” said Rogers. “ We see it as a moral imperative to enable great-tasting, healthy foods even to those who do not have great incomes.”

How does Tagatose taste?

Dirt-to-Dinner gave baking with tagatose a try. We replaced sugar with tagatose in baked oatmeal chocolate chip cookies, brownies, and our favorite banana bread. When we asked our friends and families to taste test the treats, they concluded that while the brownies were too hard and over-browned, the cookies were tasty with great texture, and the banana bread was just perfect!  Look for our recipes posted on our facebook page.

While you can buy tagatose for baking, it is currently still made from lactose. Despite this, it is considered lactose free for those who have lactose intolerance.

So how will consumers adapt to these rare, good-for-you sugars? Well, we are sold, and for those who love the taste of sugar, we think tagatose will let us have our cake and eat it too!

The Bottom Line:

Tagatose has tremendous potential, not only as a sugar substitute but as replacement sweetener in foods and beverages. With its naturally occurring properties and its good-for-you benefits, this rare sugar is sure to prove its value worldwide. This type of innovation is a great example of how scientific progress is working towards bettering our health and nutrition.

The post Contributed Content: Tagatose May be the Answer to the World’s Craving for Sweets appeared first on Global AgInvesting.

Despite ADM chief executive Juan Luciano saying that now is not the time for “monster acquisitions”, the company has indeed had a dynamic few weeks since the start of 2019, announcing not only two significant acquisitions, but the formation of ADM Agriculture Ltd. – a new business to strengthen the company’s presence in the UK.

Specialty Flavors

On January 11 ADM announced it had agreed to acquire Florida Chemical Company (FCC),  one of the largest providers of citrus flavors, oils, and ingredients in the world.

Founded in Winter Haven, Florida, in 1942 as a division of Flotek Industries, FCC produces a wide range of high-value citrus flavor ingredients, terpenes, and formulated products for the flavor, fragrance, and consumer products industries.

For ADM, the acquisitions adds a citrus facet to its ingredients and flavors portfolio, and expands its offerings with on-trend products that meet consumers’ desires for natural, low-sugar, clean labeled foods and beverages.

“ADM is already a leader in natural flavors for food and beverages, offering a wide variety of high-value products and solutions in areas such as vanilla and mint, and this acquisition will place us in a leadership position for citrus flavors as well,” said Vince Macciocchi, president of ADM’s Nutrition business unit. “Citrus is one of the fastest-growing flavor categories, and the single most important taste profile for beverages, and no one in North America does citrus better than Florida Chemical Company.”

FCC’s product lines include individual and customized citrus flavor blends and essential oils; flavor enhancers for grapefruit and other citrus; and flavor modifiers targeted to improve the quality and taste of foods and beverages.

“With the acquisition of WILD in 2014, ADM began the journey to become the world’s leading nutrition company,” said Vince Macciocchi, president of ADM’s Nutrition business unit. “Starting with the foundation of a leading global flavor company and our specialty ingredients portfolio, we’ve vastly expanded our capabilities with additions like the savory flavors of Eatem Foods, the plant proteins from Harvest Innovations, probiotics from Biopolis and Protexin, and Rodelle’s premium vanilla ingredients. The result is great for our customers and our shareholders: No other company in the world can match the expertise, innovation, products and solutions of ADM — and we’re still growing.”

Grains and Origination

Six days after announcing its acquisition of FCC, ADM announced that it had signed a deal with its partner – French co-operative InVivo, agreeing to acquire the remaining 50 percent it did not already own in British grain trader Gleadell Agriculture Ltd.

Founded in 1880, Gleadell is a top supplier of combinable crops to UK millers, feed compounders, and others. It is a major exporter of grains, oilseeds, and pulses to both EU and overseas markets, and is a certified supplier of seeds and fertilizers to UK farmers. The company also has port storage, pulse and seed processing and storage facilities, and ship loading operations.

Once the deal is complete, ADM plans to merge Gleadell and its wholly owned subsidiary Dunns (one of the oldest agricultural businesses in the UK) with ADM Arkady, its UK destination marketing business, and ADM Direct UK, its specialist crop origination business to create the new entity – ADM Agriculture Ltd.

“With significant storage and processing capability and a longstanding reputation for being a safe and trusted trading partner, Gleadell and Dunns will be great additions to our business in the UK,” said Gary McGuigan, ADM’s president of Global Trade. “We are excited to expand our capabilities, not only to continue our strategic growth, but also to support our farmers and our customers as they work to address fast-growing consumer demand.”

-Lynda Kiernan

The post ADM Hits 2019 Running With Two Major Acquisitions and the Formation of a New Crop Origination Business appeared first on Global AgInvesting.

New Zealand’s MyFarm Investments has launched a $20 million cherry orchard development scheme in Central Otago that has attracted approximately $11 million in investments from more than 50 investors.

Founded in 1990, MyFarm Investments realized that although New Zealand farmland was a desirable investment asset able of generating healthy long-term returns, the barriers to investing in it were a challenge.

Through its farm syndication model, between 1992 and 2014 MyFarm began purchasing dairy farms, building a portfolio of farm assets valued at $829 million. Having sold 29 farms, the average internal rate of return was 23.9 percent. Rolling on this success, MyFarm has since diversified its investments to include beef, sheep, permanent crops, and manuka honey.

Today, the firm is further diversifying, moving into a high-value horticultural sector through its 96-hectare Central Cherry Orchard Partnership offering. For an industry that totals a mere 800 hectares across the country, this project represents a significant expansion designed to meet significant demand.

“…increasingly we are seeing Asian markets, and particularly China get a real taste for New Zealand cherries,” said Andrew Watters, CEO, MyFarm. “They are recognised [sic] for their exceptionally high quality and freshness, and New Zealand has become very competent at growing, harvesting and delivering them to market in very short time.”   

Under the plan, MyFarm intends to develop 80 hectares of the 96-hectare Waikerikeri Valley  property into a cherry orchard with the goal of planting 72,000 trees, or 900 trees per hectare, over the course of the next three years. Across the acreage will be planted about 10 different varieties of cherries to extend production throughout the growing season, and to dilute production risks such as damage from frost events.

“… most importantly we have been able to secure sufficient trees to plant 15 hectares straight away and all bar five hectares the following year,” said Watters. “This is in an environment where delays on tree stocks have been up to three years, so we are very fortunate to be able to get started straight away, with land already identified.”

To manage this high-value venture, MyFarm has partnered with export company FreshMax which will oversee both the development of the orchard and its ongoing production under the Central Cherry Orchard Ltd. Partnership.

Cherry trees take four years to begin producing fruit, however, once harvests begin, FreshMax will use existing processing and packing facilities, and will also use existing irrigation and fertigation infrastructure, noted Con Williams, head of investment research with MyFarm Investments.

A particular challenge already on the radar is the ability to engage the necessary skilled seasonal labor for the operation. As a means of attracting the needed workers, there also are plans to possibly build out accommodations for the staff to use during harvest from December to February. If purpose-built accommodations are build, for the remaining months of the year, the accommodations could be rented to tourists, providing an additional income stream for the property.
Estimates by MyFarm are that the orchard will return 12 percent per year starting in year six, and 38 percent per year starting in year 10 as the trees approach full maturity.

“Prospects for the New Zealand horticultural sector are particularly strong as the world seeks out high quality, healthy produce and cherries’ time has come with that – this will prove to be a very rewarding, groundbreaking investment for MyFarm and anyone sharing the journey with us,” said Watters.

-Lynda Kiernan

The post Investors Are Onboard with MyFarm’s $20M Cherry Orchard Project appeared first on Global AgInvesting.

Israel’s SeeTree, an agriculturally-focused artificial intelligence (AI) startup, announced that it has launched a $15 million Series A round led by Hanaco Ventures, and including Canann Partners Israel, Uri Levine, venture capital firm Mindset, and iAngel.

Founded in Tel Aviv in 2017 by co-founders Israel Talpaz, Barak Hachamov, and Guy Morgenstern, and with offices in California and Brazil, SeeTree offers end-to-end services to farmers of permanent tree crops that enable them to manage and optimize both their stock health and output.

With an initial focus on citrus orchards, SeeTree has been building a presence in the sector, gathering high resolution multi-dimensional imagery on either single trees or tree clusters via drones; data through ground sensors; and by samples gathered through boots-on-the-ground. Together with the integration of AI technology and machine learning, SeeTree’s platform is able to hone its abilities to offer precise data.

“As you all know, AI disrupted numerous industries, but has fallen short on agriculture as a stand-alone optimization solution,” noted SeeTree CEO Israel Talpaz. “The quality of data received would be too limited to have a substantial impact on farming. With this in mind, my co-founders Barak Hachamov, Guy Morgenstern and I teamed up to create a multidisciplinary solution that would help growers truly know their trees.”

With this new funding, which followed approximately a year and three months after the company raised a $3.2 million Seed Round in September 2017, SeeTree is emerging from what it calls “stealth mode” to further develop its technology in regard to citrus orchards, and to eventually expand its services to include other high-value permanent crops such as nuts, while also expanding its geographical footprint.

“SeeTree’s rare combination of agronomy expertise and AI prowess poise the company for success.” said Pasha Romanovski, who led Hanaco Ventures’ investment, and who will be joining the SeeTree board of directors. “SeeTree’s focus on creating the largest collection of labeled data of permanent crops will enable them to build multiple products to help farmers succeed.”

Initially using drone technology and AI, SeeTree is able to create an identity for each tree in an operation. Then using ground level sensors, can zone in to find the source of a production problem.

“We combined AI with boots-on-the-ground to provide growers with visibility, monitoring, and actionable analytics to optimize their farming,” said Talpaz. “SeeTree uses the power of machine learning algorithms to get smarter, and offers the most precise window into the strength of trees.

SeeTree even digitizes each individual tree, and creates health and productivity files for each of them. In many ways, it can be seen as a social network for trees – since they each have profiles and status updates.”

With this knowledge, farmers can decide to replace certain trees that are diseased or underperforming, can materialize an informed harvesting plan, and can use the data gained to better decide on irrigation and use of inputs.

“Traditionally, farmers made large-scale business decisions based on intuitions that would come from limited (and often unreliable) small-scale testing done by the naked eye,” said Talpaz. “With SeeTree, farmers can now make critical decisions based on accurate and consistent small and large-scale data, connecting their actions to actual results in the field.”

-Lynda Kiernan

The post Israel’s SeeTree Raises $15M for Permanent Crop AI Tech appeared first on Global AgInvesting.

Ohio-based indoor vertical farming startup 80 Acres announced a “significant investment”, which was later reported to be in excess of $40 million, from Virgo Investment Group, a San Francisco-based private equity group focused on investing in companies that are disrupting high-potential industries.

Founded by Mike Zelkind and Tisha Livingston in 2015 in Cincinnati, Ohio, 80 Acres Farms is a pioneer in indoor agriculture. Utilizing proprietary technologies that include modular grow zones, customized LED lighting, precision climate controls, sophisticated data monitoring, and an AI-based growing system, 80 Acres grows nutritious, pesticide-free greens, fruits and vegetables that are higher quality than customary produce. And by having its facilities in Ohio, Arkansas, North Carolina, and Alabama geographically situated in proximity to its customers, the produce grown by 80 Acres Farms does not need to be transported long distances, drastically reducing the environmental impact of farming and food waste.

“Over the past three years we have provided our customers with fresh, flavorful and nutritious produce grown locally in our facilities with no pesticides and highly efficient usage of water and nutrients,” said 80 Acres Farms co-founder Mike Zelkind .  “We are rapidly increasing yields for our produce, while advancing each generation of our grow zone designs to lower capital costs, production costs and reduce the use of natural resources.”

Currently, 80 Acres Farms is in the process of completing its facility located in Hamilton, Ohio, which will be the first fully automated indoor farm in North America. Featuring handling robots, AI-based systems, data analytics, and 24-hour sensor monitoring and control systems to optimize each step of production, the Hamilton site will be fully automated from seeding, to growing, to harvest.

Phase I of the project, which is currently under construction is expected to be operational early this year, and the investment from Virgo will be used by 80 Acres to complete the facility.

“Our vision is to prove that indoor farming can be fully-automated, commercially scalable, higher-yielding, and profitable.,” said Zelkind.  

Therein lies the challenge – a major hurdle for vertical and indoor farming operations has been the ability to achieve commercial scale while working within a highly capital-intensive production model. And here is where 80 Acres has set itself apart from the rest – it’s ability to keep production costs down through technology.

“Virgo Investment Group joins our existing notable and experienced food industry investors in supporting the Company to rapidly commercialize the indoor vertical farming technology we have developed over the past three years,” said Zelkind. “We are optimizing every aspect of our production processes and driving down costs, which is crucial to scaling an indoor farming business like ours.”   

“We want to help accelerate the company’s growth in this multi-billion-dollar market,” said Eli Aheto, partner, Virgo Investment Group. “The 80 Acres investment is an expression of Virgo’s long-standing focus on investing in energy efficiency opportunities driven by reduced equipment costs. Virgo has completed investments in utility-scale wind, community solar, electric vehicle charging and now an LED lighting driven business.”

-Lynda Kiernan

The post 80 Acres Raises “Significant Investment” for First Fully Automated Vertical Farm appeared first on Global AgInvesting.

The Teachers’ Retirement System of Louisiana (TRSL) has established a $100 million separate account with Boston-based private equity firm AgIS.

During a recent board meeting, the $19.7 billion pension fund confirmed that the separate account would be focused on investing in permanent crops and related infrastructure in North America, noting that permanent crops “exhibit higher cash yields” and produce returns based on income generation as opposed to land appreciation.

A second announcement made by TRSL indicates that the fund has expanded another of its separate accounts held with Hancock Agricultural Investment Group (HAIG) by $25 million. The account, which focuses on the U.S. and Australia, was originated in 2016 with an initial $75 million on the recommendation of TRSL’s investment consultant Hamilton Lane. Currently, the account is allocated 67 percent to investments in the U.S., 20 percent in Australia, with the remaining 13 percent to be earmarked for investments in permanent crops in the U.S.

This is the second pension fund to establish a separate account with AgIS in the past 16 months.

In September 2017, the Virginia Retirement System (VRS) engaged AgIS to manage a $150 million separate account – marking the first time a pension fund awarded a separate account in the ag investing space.

These agreements are indicative of the confidence had in AgIS, and are reflective of the caliber of the firm and its founder Jeff Conrad.

Born and raised on a dairy farm in Pennsylvania, Conrad went on to attend Penn State University and to study agricultural business management and agricultural economics at Cornell University. In 1990 he founded, and was subsequently president of Hancock Agricultural Investment Group (HAIG), a globally renowned organization that grew to control more than $2 billion in properties and capital on behalf of institutional investors.

During his tenure with HAIG, noticing that the farmland investment class lacked a proper benchmark, Conrad co-chaired the establishment of the NCREIF Farmland Index in 1995. Today the NCREIF is a widely relied upon tool that includes data from 743 agricultural properties with a combined market value of $8 billion as of December 31, 2016. And as the asset class has matured, so has the NCREIF with it – now able to offer insight into the performance of agricultural properties by crop type – whether row or permanent crop – and by commodity type, or management structure.

After retiring from HAIG in 2011, Conrad re-entered the ring, launching Boston-based private equity firm AgIS in 2013.

*To hear more from Conrad, click here to read A Decade in the Farmland Asset Class Evolution, written last year and published in our GAI Gazette prior to him being a key speaker at Global AgInvesting 2018.

-Lynda Kiernan

The post Teachers’ Retirement System of Louisiana Creates $100M Separate Account with AgIS appeared first on Global AgInvesting.

As part of TechAccel’s strategy to address global crop losses through the development of safe, effective, and sustainable biopesticides, venture and agtech development company TechAccel has announced additional strategy investments.

RNAissance

Firstly, the launch of RNAissance Ag LLC (pronounced “Renaissance”) – a new company that holds in partnership with the Donald Danforth Plant Science Center in St. Louis, Missouri, exclusive license to proprietary RNA-interference technology for the development of sprayable insect controls.

More than $40 billion per year is spent on pest control, yet over 20 percent of all crops are still lost due to insect damage,” said James C. Carrington, Ph.D., president of the Danforth Center. “This new company is evidence of an exciting new technology advancing toward market with the potential to make a major impact.”

The new company was born of successful research conducted at the Danforth Center, one of the leading independent plant science centers in the world, funded through TechAccel’s first grain through the “Path to Commercialization” Program.

This work jointly developed by Bala Venkata, Ph.D., senior research scientist, Nigel Taylor, Ph.D., associate member, and Dorothy J. King Distinguished Investigator at the Danforth Center, is the foundation for the development of sustainable and environmentally friendly alternatives to chemical agricultural inputs.

“An RNAi pesticide is highly specific to the target insect and is not toxic to other organisms,” said Michael Helmstetter, Ph.D. and founder, president, and CEO of TechAccel. “Further, we believe biopesticides can be more effectively applied than chemical sprays, reducing cost, waste and health risks to workers and the environment.”

Many Irons

Recently TechAccel advocated for the need for more venture capital investment in animal health and nutrition, publishing a map detailing nearly 250 leading companies in the plant and animal Ag Biotech space. TechAccel’s research shows that these companies have raised approximately $3.4 billion in total funding since they were founded, of which $500 million was in animal biotech and $2.9 billion in plant biotech.

Leading the charge at TechAccel (Technology Acceleration Partners) is Co-Founder, President, and CEO Dr. Michael Helmstetter. Helmstetter has over 30 years of experience working in agriculture, defense, and biotechnology industries.

“We are focused on a few specific areas – gene editing, including RNAi and epigenetics for improving traits; unlocking the secrets of the microbiome for biopesticides and improved nutrients; and deploying biotechnology for safer and more effective vaccines, feeds, and nutrients,” Helmstetter told GAI News in December 2017.

TechAccel also announced its participation in the latest funding round raised by GreenLight Biosciences Inc. in early January of this year.

Through controlling the biology of RNA, there is the ability to modulate biological processes, and when applied within agriculture, can lead to advances in crop management, plant protection, and pest control via a process called RNA interference (RNAi).

Headquartered in Boston, Massachusetts, and with R&D facilities in Research Triangle Park, North Carolina, and St. Louis, Missouri, GreenLight has developed a novel, low-cost, cell-free production platform for the production of RNA, one of the basic components of life. Led by co-founder and CEO Andrey Zarur, GreenLight develops RNA products and works with industry leaders to provide solutions to some of the world’s greatest challenges.

These two announcements are indicative of the various biopesticide research and development initiatives in which TechAccel is having a hand. Additional fronts being pursued include:

• Leveraging a stable nanoparticle technology licensed as a form of biopesticide delivery;
• Piloting the injection of RNAi compounds as a delivery mechanism in fruit and nut trees; and,
• Continuing development of a separate, novel RNAi biopesticide approach based on research underway in Europe.

Toward this end, TechAccel also recently announced a research collaboration with AgroSpheres Inc. to examine nanotechnology’s role in respect to biopesticide delivery. Although TechAccel did not disclose the specific biomaterials that will be studied, Brad Fabbri, Ph.D. and chief science officer for the company said, “We will examine AgroSpheres’ nanotechnology as a delivery mechanism for our proprietary materials for control of insects in the Lepidoptera order,” in a company statement released in November 2018.

In much the same strain, TechAccel will be working with GreenLight Biosciences in similar research.

“TechAccel and GreenLight are collaborating in efforts to accelerate the development, delivery and commercialization of RNA-based products to safely and sustainably address global pest control issues in agriculture,” said Helmstetter.

-Lynda Kiernan  

The post TechAccel is Targeting the Development of Biopesticides with Strategic Investments appeared first on Global AgInvesting.