USA- Benson Hill has unveiled novel proprietary soybean varieties for the pet food and animal feed markets to diversify the business and foster industry collaboration while complementing the company’s human food ingredient portfolio.
Benson Hill’s proprietary CropOS® platform, which leverages artificial intelligence and data insights to drive innovation in agriculture, made the development of these innovative soybean varieties possible.
The company conducted external analyses to identify three key value-adds that promise to benefit the Broadacre animal feed and pet food industries.
Ultra-High Protein Low Oligosaccharide (UHP-LO) is the first key attribute of these soybean varieties. It offers cost-reduction benefits for producers and caters to the growing demand for high-protein feed formulations.
Additionally, these soybeans have fewer anti-nutritional components, which support animal digestive health. Furthermore, they boast an improved amino acid profile, which reduces the need for synthetic amino acids in animal feed.
Benson Hill plans to expand its UHP-LO soybean offerings over the next two to three years, introducing herbicide-tolerant and second-generation seed varieties.
Supplementary studies will be conducted after the 2023 crop is harvested, and the company will collaborate with industry partners to validate the efficacy and explore potential applications through feeding trials.
“We are discussing with potential partners to scale our current proprietary portfolio and product pipeline for large-acre US animal feed and pet food markets. I am excited about the opportunities to leverage the core strengths of the business for long-term value creation,” Adrienne (Deanie) Elsner, the CEO of Benson Hill, stated.
This expansion of Benson Hill’s soybean portfolio is part of a broader strategic financial overhaul. The company focuses on enhancing its capital efficiency, streamlining its business, and improving liquidity.
As part of this strategy, Benson Hill is divesting its processing facilities, including a soy crush facility in Seymour, Indiana, expected to generate US$36 million in proceeds. These funds will be directed toward the company’s proprietary product pipeline and provide 12 months of liquidity to address high-cost debt.
Additionally, Benson Hill aims to reduce its operating expenses by US$33 million in 2024, which will enhance its financial stability and allow for better capital allocation. Elsner believes these actions will position Benson Hill as a leader in AI-driven proprietary seed innovation and provide significant value to the industry.
“We are already making progress on our strategic path. With the expected divestiture of our processing facilities, we plan to retire high-cost debt and extend our liquidity by more than 12 months,” she commented.
Benson Hill’s innovative soybean varieties are poised to have a transformative impact on the pet food and animal feed industries, offering cost-effective solutions and improved nutritional profiles for various products.
With the support of industry partnerships and strategic financial initiatives, the company is on track to become a driving force in the agricultural innovation sector.