Rising Food Costs and Supply Chain Strains: How Agritech Companies Are Responding

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Aug 19, 2024, 09:45 ET

USA News Group Commentary
Issued on behalf of Bee Vectoring Technologies International Inc.

VANCOUVER, BC, Aug. 19, 2024 /PRNewswire/ -- USA News Group – A new commentary from the University of Guelph is sounding the alarm about our fragile food supply chain, that the authors claim was "built for a world that no longer exists". According to the UN World Food Program USA, hunger, famine, and rising food costs are happening around the world. Helping to meet today's food needs around the world, the World Economic Forum is applauding advancements in a vast and complex supply chain, pointing towards a global food market expected to be worth $9.12 trillion, growing at a CAGR of 6.7%. Among the groups working to better secure the global food supply chain from crop to plater are innovative companies that include Bee Vectoring Technologies International Inc. (CSE: BEE) (OTCQB: BEVVF), Cal-Maine Foods, Inc. (NASDAQ: CALM), Calavo Growers, Inc. (NASDAQ: CVGW), Darling Ingredients Inc. (NYSE: DAR), and FMC Corporation (NYSE: FMC).

One notable innovator that's developing potential game-changing solutions is Bee Vectoring Technologies International Inc. (BVT) (CSE: BEE) (OTCQB: BEVVF), which employs commercially-reared bees to deliver biological pesticide alternatives directly to crops. This innovative approach is making strides in the $250 billion crop protection and fertilizer industry.

BVT is concentrating on the development of biological agricultural products ("biologicals") designed to replace traditional chemical pesticides and fertilizers. The biologicals sector is witnessing remarkable growth, with a projected compound annual growth rate (CAGR) of 13.3%. This market is expected to reach a valuation of US$45.3 billion by 2032, according to research from DataHorizzon.

Most recently, BVT received official approval in Mexico from the country's health authority responsible for registration of plant protection products, COFEPRIS. As per the announcement, BVT's proprietary Vectorite with Clonostachys Rosea CR-7 (CR-7) was approved for use as a fungicide on commercial crops.

"The success of BVT receiving regulatory approval for its product in Mexico is consistent with our strategy to focus on increasing the Company's addressable market through geographic market expansion," said Ashish Malik, CEO of BVT. "With US EPA approval in 2019, and now by adding Mexico COFEPRIS approval allowing BVT's CR-7 to be sold in Mexico for the first time, we have significantly increased the market opportunity for commercial sales of the Company's proprietary biological fungicide."

The approval covers delivery of CR-7 using both bumble bees and honeybees on various high value crops, including the berry group of crops and indoor vegetables. Mexico's agricultural sector presents a significant market opportunity for BVT's natural precision agriculture system.

In 2019, the country's production included 41,600 acres of strawberries, 12,100 acres of blueberries, and over 377,000 acres of tomatoes and peppers. That same year, the U.S. imported fresh and processed fruits and vegetables from Mexico valued at US$15.6 billion. While Mexico currently spends US$1.3 billion annually on pesticides, a growing number of growers are shifting toward biological alternatives that enhance quality, improve food safety, and reduce reliance on chemicals.

"Having already completed demos with some berry growers in Mexico, and with the registration now in hand, BVT is in a great place to secure a commercial arrangement with a partner to bring our system to market in Mexico," added Malik. "Mexico is a strategic market for BVT – being an export-oriented country where the growers are keen to adopt low- or no-chemical solutions to fight diseases and increase crop yields, BVT's all-natural solution together with the classification of CR-7 being exempt from residue tolerance in the US, will provide them with a competitive advantage."

In the past year, BVT has also reached important milestones, including starting trials in Spain with Agrobío, and partnering with MBFi in South Africa. Additionally, BVT achieved its first sale of CR-7 to BioSafe Systems. Motivated by the successful results from the Michigan State University trial, BVT plans to replicate these trials in the coming years to further confirm the effectiveness of CR-7.

Prior to releasing its Q4 2024 and FY 2024 financial results, Cal-Maine Foods, Inc. (NASDAQ: CALM) further strengthened its title of the largest producer and distributor of fresh shell eggs in the USA by acquiring the egg production assets of ISE America.

The acquired ISE assets encompass commercial shell egg production and processing facilities with a current capacity of approximately 4.7 million laying hens, including 1.0 million cage-free hens and 1.2 million pullets. The acquisition also includes feed mills, around 4,000 acres of land, inventories, and an egg products breaking facility. Additionally, the assets feature an extensive customer distribution network across the Northeast and Mid-Atlantic states, with production operations located in Maryland, New Jersey, Delaware, and South Carolina.

"We are excited about the opportunity to significantly enhance our market reach in the Northeast and Mid-Atlantic states with the acquisition of these assets from ISE," said Sherman Miller, President and CEO of Cal-Maine Foods. "The added production and distribution capabilities will allow us to serve new customers and expand capacity, particularly in the Northeast, which is largely a new territory for Cal-Maine Foods."

Coming off of the sale of its Fresh Cut business for $83 million, Calavo Growers, Inc. (NASDAQ: CVGW) is now even more focused on its flagship avocado operations, along with its other quality produce that includes tomatoes and papayas. Prior to the sale, Calavo reported its Q2 2024 financial results, which included a 16.5% increase in total net sales from the prior year quart to $184.4 million, and an 18.9% increase in its grown segment sales.

"We are pleased to announce that the sale of our Fresh Cut business has been finalized, which will allow us to focus on our core avocado and guacamole businesses," said Lee Cole, President and CEO of Calavo Growers. "We would like to thank the team members of the Fresh Cut business for their hard work and years of service to Calavo."

Darling Ingredients Inc. (NYSE: DAR) is an innovative company that takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. Recently Darling announced a target to reduce Scope 1 and 2 emissions 42% by 2030, which aligns with its commitment to the Science Based Targets initiative (SBTi).

"Darling Ingredients plays an important role in circularity. We help entire industries be less wasteful and more sustainable by providing valuable ingredients that help lower our customers' carbon footprint," said Randall C. Stuewe, Chairman and CEO of Darling Ingredients. "2023 was a year of setting up for continued success, and I'm excited for the future as we look to further strengthen our business in a sustainable way."

Back in April, Darling announced it had identified collagen peptide profiles for targeted health benefits. During scientific trials, these active collagen peptide profiles demonstrated that collagen can be beneficial for a variety of common health and wellness concerns, such as reducing post-meal blood sugar spike, in a natural way, in healthy individuals.

Leading global agricultural sciences company FMC Corporation (NYSE: FMC) recently released its Q2 2024 earnings report, which showcased the company at the higher end of its guidance range, and led to an update on its full-year outlook. Within the report, FMC reported revenue of $1.04 billion, up 2% from Q2 2023, and an adjusted EBITDA of $202 million, up 8% over the same period.

"Demand improved during the second quarter, resulting in a pronounced increase in our sales volumes, most notably within the United States and Brazil, despite customers continuing to actively manage inventory," said Pierre Brondeau, Chairman and CEO of FMC. "Higher sales, as well as cost benefits from our ongoing restructuring, led to adjusted EBITDA toward the high end of our guidance range."

Prior to the report, FMC signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Envu for $350 million. And prior to that, FMC obtained registration in Brazil for two herbicides powered by Isoflex active, the company's brand name for a novel herbicide used in cereals. The two new formulations will provide growers with new tools to effectively manage herbicide resistance across a wide range of agronomic practices.

Article Source: https://usanewsgroup.com/2024/05/06/the-buzz-on-eco-farming-how-bees-are-pioneering-the-future-of-crop-protection/

USA News Group
Editorial Staff

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