March 25, 2025

 

US soy innovator Benson Hill files for bankruptcy

 

Benson Hill, a US company known for developing sustainable soybean varieties used in aquaculture feed, has filed for bankruptcy.

 

The St Louis-based seed innovator announced that it intends to pursue a sale of its business or a portion of its assets while continuing to support farmers, partners, and customers during the Chapter 11 bankruptcy process.

 

To facilitate this process, Benson Hill has secured approximately US$11 million in Debtor-in-Possession financing in addition to its existing cash reserves. Subject to court approval, this financing is expected to provide the liquidity required to maintain operations during the bankruptcy proceedings.

 

The company has filed several "first-day" motions requesting relief to continue its regular operations. These include servicing customers, meeting obligations to employees, and ensuring ongoing business functions as efforts begin to sell its assets.

 

Board chair Dan Jacobi stated that the company had made progress in developing soybeans with enhanced compositional traits that provide benefits for end users and sustainability solutions for growers. He added that despite cost reductions, asset divestments, debt repayments, and an operational transition to a licensing model, financial constraints and industry challenges led the board to determine that Chapter 11 was the best course of action.

 

Benson Hill had previously collaborated with Riverence, the largest land-based producer of steelhead salmon and rainbow trout in North America, and aquafeed company BioMar.

 

The partnership with Riverence, announced three years ago, utilised Benson Hill's machine learning, genetic selection, and gene editing techniques to create soybean varieties with enhanced protein levels and reduced anti-nutrient content. These innovations aimed to minimise processing requirements and provide an alternative to traditional soy protein concentrate.

 

Compared to US-sourced soy protein concentrate, Benson Hill's ultra-high protein (UHP) soy requires up to 70% less water and produces up to 50% less carbon dioxide equivalent (CO2e). When compared to Brazilian-sourced soy protein concentrate, UHP soy reduces water usage by up to 83% and CO2e emissions by up to 89%, considering the environmental impacts of deforestation.

 

In February 2022, Riverence's chief science officer Jesse Trushenski highlighted the suitability of Benson Hill's soy ingredients for aquaculture, noting their benefits in nutrition, sustainability, and cost. Trushenski expressed optimism about a long-term partnership, citing improved fish performance and a traceable supply chain with a low environmental impact.

 

In January 2023, BioMar announced a strategic collaboration with Benson Hill as part of its responsible sourcing programme. The Danish aquafeed company committed to using Benson Hill's UHP soy for consecutive seasons. At the time, BioMar's global sourcing director Morten Holdorff Møjbæk stated that 97% of the carbon footprint in aquafeed comes from its ingredients. Following BioMar's exit from the Russian raw materials market, Møjbæk emphasised the importance of working with suppliers like Benson Hill to meet sustainability goals.

 

Benson Hill's bankruptcy proceedings will determine the future of its sustainable soy innovations and ongoing partnerships with aquaculture feed producers.

 

- Fishfarmingexpert