Benson Hill investigating the market for pet food
During a financial results conference call on August 9th, Adrienne Elsner, interim chief executive officer, stated, “The next step in our evolution will include more robust partnership models to leverage the full power of our platform, pipeline, capabilities and intellectual property in existing markets as well as new large market adjacencies.” “International markets and large-acre livestock feed are two areas of particular interest.” Certain sectors of the livestock feed business may change as a result of the high protein, low antinutrient soybeans’ feed efficiency and sustainability benefits.
She added that Benson Hill soybeans are simpler to digest than regular soybeans and that the animal feed sector offers greater volume prospects but lower margins than the human food market.
“That implies that our soy could take the place of some of the more expensive ingredients in animal feed, and as we speak with potential clients, they tell us that they would be very interested in working with us to develop that kind of innovation stream.”
According to Ms. Elsner, “Our portfolio and pipeline attributes offer unique advantages for diverse international markets, whether it be greater nutrition security to meet the explosive population growth in India, Asia, and Africa, or sustainability opportunities in Europe, or meat extension opportunities in Latin America.” “We think partnerships can bring distinct advantages to every vertical of the agri-food value chain if they penetrate these and other markets at scale.”
Ms. Elsner mentioned the ADM relationship and mentioned that ADM has started processing a portion of Benson Hill’s 2022 crop.
“It’s making the most of their resources and network to capitalize on the advantaged high protein crop that we bring to the table,” she explained. “So far, our ’23 crop, which is devoted to the cooperation, looks terrific. We take heart from what we observe. The widespread drought that has been suffered by the nation has not had a significant influence on us, and we are really thrilled about this thing’s possibilities.
Benson Hill, a company situated in St. Louis, saw a net loss of $57 million during the quarter, as opposed to a loss of $28 million during the same period last year. From $94 million to $109 million, revenues rose 17%.
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A $60 million loss during the first half of the fiscal year contrasted with a $44 million loss during the same period last year. Revenues for the first half of the year rose 53% to $244 million from $160 million.
By 2024, Benson Hill wants to cut operating costs by $10 million a year. The business is evaluating its alternatives regarding the Seymour, Indiana, soybean crush assets, according to Chief Financial Officer Dean P. Freeman.
“The results of the options we are exploring will primarily inform our working capital improvement efforts.