August 15, 2023

 

Benson Hill seeks more partners, aims to expand in livestock feed market

 

 


Food technology company Benson Hill is seeking other partners as it aims to expand its reach in the livestock feed market, following its partnership with ADM last year to scale production of high-protein soy ingredients for the North American market, Food Business News reported.

 

Speaking during an earnings call on August 9 to discuss the financial results for the second quarter ending June 30, Adrienne Elsner, the interim chief executive officer of Benson Hill, unveiled the company's next steps.

 

Elsner said that the company is gearing up to explore more comprehensive partnership models that capitalise on the company's platform, pipeline, capabilities, and intellectual property. These partnerships are envisioned to target not only existing markets but also new market adjacencies, with a specific focus on two areas: large-acre livestock feed and international markets.

 

Elsner underlined the transformative potential of high-protein, low anti-nutrient soybeans in segments of the livestock feed industry, highlighting the benefits of feed efficiency and sustainability.

 

She said that although the animal feed market may offer lower margins, it presents significant volume opportunities compared to the human food market. Benson Hill's soybeans, known for their easier digestibility compared to traditional soybeans, could potentially replace costlier ingredients in animal feed. This innovation has garnered interest from potential customers who are eager to explore these advancements in collaboration with Benson Hill.

 

Turning to international markets, Elsner outlined the myriad opportunities presented by the company's portfolio and pipeline attributes. Sustainability prospects in Europe, meat extension opportunities in Latin America, and addressing nutrition security concerns due to population growth in regions like India, Asia, and Africa all factor into Benson Hill's strategic vision. Elsner firmly believes that forging partnerships on a large scale in these markets can deliver unique advantages across the agricultural and food value chain.

 

Elsner also shed light on the ongoing partnership with ADM, highlighting their collaborative efforts. ADM has commenced processing a portion of Benson Hill's 2022 crop, capitalizing on their collective capacity and network strengths. The performance of the 2023 crop dedicated to the partnership shows promise, despite the challenges posed by drought conditions in parts of the country.

 

While the St. Louis-based Benson Hill reported a net loss of US$57 million in the quarter, compared to a loss of Us$28 million in the same quarter of the previous year, revenues demonstrated growth, increasing by 17% to US$109 million from US$94 million.

 

Looking forward, Benson Hill plans to streamline operations by reducing operating expenses by US$10 million annually in 2024. The company is actively evaluating options for its soybean crush assets located in Seymour, Indiana, as mentioned by Dean P Freeman, its chief financial officer.


-      Food Business News

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