FAO and Canada tackle grain storage deficit in Ukraine, US$30m raised for Japanese food tech deal
August 05, 2022 — In industry news this week, the Food and Agriculture Organization of the United Nations (FAO) launched a US$40 million Canadian-funded project to address grain storage shortages in Ukraine. PepsiCo and Celsius announced a long-term distribution deal, and vertical farming startup Spread has raised $30 million to accelerate Japan’s food tech scene. Meanwhile, Darling Ingredients completed the acquisition of FASA Group.
In Brief: Food Crop Highlights
The CAM The initiative will allow for the storage of an additional 2.4 million metric tons of grain between 2022 and 2023, along with related technical support and equipment. This complements the US$17 million support recently provided by the Government of Japan to cover 1 million metric tons of grain storage. This season, with harvesting of winter crops beginning in July and spring crops beginning later in the year, Ukraine expects to harvest up to 51.1 million metric tons of grain. Of a total storage capacity of 75 million metric tons, 14% of the storage facilities are damaged or destroyed, 10% are located in Russian-occupied territories and around 30% remain filled with 22 million metric tons of the crop. of last year awaiting export – according to the Ukrainian government.
In Brief: Commercial Movers
PepsiCo and Celsius Fund, the maker of global fitness energy drink Celsius, has revealed a long-term strategic distribution agreement. PepsiCo will invest in Celsius to support its growth plan and appoint a director to serve on Celsius’ board. The long-term US distribution agreement took effect earlier this month and includes retail and restaurant channels. As part of the transaction, PepsiCo will make a net cash investment of US$550 million in Celsius in exchange for convertible preferred stock.
PepsiCo also entered into a strategic agreement with premium Romanian spring water Aqua Carpatica under which PepsiCo will hold a 20% stake in Aqua Carpatica. Under the agreement, PepsiCo will have the right to distribute the spring water in Romania and Poland with opportunities to expand into other markets, including the United States.
In short: the essentials of the plant
Start-up based in Japan Spread secured approximately US$30 million in Series A funding from several commercial ventures and angel investors in the largest ever fundraising round in Japan’s food tech scene. Starting from the development of new technologies for the largest automated vertical farm in the world, Techno Farm Fukuroi *1, Spread will also invest in the commercialization of its sustainable vegetable brand Vegetus, R&D in new areas of strawberry and alternative meat , and global business development.
Shanghai-based alternative protein startup 70/30 Food Technology is about to launch its convenience food products using its own fermented protein from biomass. This protein, a key component developed by the start-up’s R&D team, serves as a meat substitute that mimics the texture and nutritional profile of shredded chicken. The company will be the first to launch a mycelium protein product in the Chinese market.
MeaTech 3D became Steakholder Foods Ltd.. As of 2019, the company has developed the technology and scientific processes to produce whole cuts of meat sustainably using animal cell culture and 3D bioprinting.
In brief: Acquisitions
Cherished ingredients completed the acquisition of the largest independent rendering company in Brazil, FASA Group. The company first announced the acquisition in May 2022 for a purchase price of approximately US$542.6 million, plus or minus various closing adjustments and a contingent payment based on future earnings growth. As part of the transaction, Darling Ingredients acquired 14 plants that process more than 1.3 million metric tons per year, with two additional plants under construction.
Dairy Farmers of America (DFA) has acquired two extended shelf life processing facilities from SmithFoods. The processing plants, located in Richmond, Indiana, and Pacific, Missouri (USA), produce a variety of dairy and non-dairy extended shelf life beverages, ice cream and shake mixes for retail and food service customers. The facilities will be part of the DFA Dairy Brands division and will operate as Richmond Beverage Solutions and Pacific Dairy Solutions.
Del Monte Foods completed the acquisition of Kitchen Basics, a line of ready-made broths and broths from McCormick & Company. Kitchen Basics will join Del Monte’s portfolio of brands as the company expands its national presence in the category. The purchase of the brand supports the company’s overall growth strategy as Del Monte Foods focuses on innovating, renovating and personalizing its brand portfolio and expanding the geographic reach of its broths and broths business. broths.
In brief: Appointments & retirements
Defra announced that John Shropshire will chair the independent review of labor shortages in the food supply chain. Shropshire is an industry veteran who stepped down as CEO of leading horticultural producer G’s Fresh Group last year. It will be supported by a pool of experts who will draw on expertise from the supply chain aspects of farming, fishing, processing and manufacturing.
In Brief: Other Highlights
British pork is heading to Chile this month to fulfill the first commercial order since market access was granted earlier this year. The UK’s largest pork processor, Cranswick, is preparing the first shipments, which will leave its factory in Preston, Hull, early next week. It follows a new agreement announced in March which granted market access to 27 UK pork processing sites, enabling the first-ever exports of pork products to this potentially lucrative new market. The Agriculture and Horticulture Development Board estimates that market access could be worth up to £20 million (US$24 million) in the first five years of trade.
By Elizabeth Green
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