November 3, 2023

 

Benson Hill announces expansion into animal feed markets

United States-based food tech company Benson Hill, announced plans to improve its financial position and accelerate its transition to an asset-light business model with a focused expansion into broadacre animal feed markets, complementing its accomplishments in human food ingredients.

 

The near-term opportunity in animal nutrition is consistent with Benson Hill’s strategy to expand and diversify its proprietary product portfolio, improve nutrition security, and foster collaboration with industry partners within the food value chain.

 

"Benson Hill has the agility to persevere. Based on our ongoing strategic review, we believe the strengthening of our financial foundation, moving to an asset-light business model, and introducing our innovations into attractive broader end markets, is the most feasible path forward for Benson Hill," said Deanie Elsner, chief executive officer of Benson Hill. "Through the actions we have taken and are continuing to implement, we are poised to deliver significant value as a leader in AI-driven proprietary seed innovation."

 

Elsner continued, "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. In addition, we are engaged in discussions with potential partners to scale our current proprietary portfolio and product pipeline for large-acre United States 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."

 

The Company recently completed an external analysis of several non-GMO, Ultra-High Protein low oligosaccharide ("UHP-LO") commercial soybean varieties validating novel value-added attributes for poultry diets, swine rations, and pet food.

 

These breakthrough soybean varieties were developed from Benson Hill’s proprietary germplasm and CropOS innovation engine - an AI-based prediction and data insights platform. Research confirmed a trifecta of product attributes offered with UHP-LO desired by animal nutritionists, processors, feed formulators, and farmers, as compared to commodity soybeans:

 

    · Higher Protein Levels: Animal feed costs can be lowered by replacing expensive animal protein sources with non-GMO, U.S.-grown soybean meal.

    ·  Lower Anti-Nutritional Factors and More Energy: Improved soybean meal with fewer anti-nutritional factors supports animal digestive health and overall performance, contributing to the advancement of animal welfare.

    · Enhanced Amino Acid Profile: Essential amino acids reduce the need to add high-cost synthetic amino acids to feed.

 

Benson Hill expects to expand its UHP-LO soybean portfolio with herbicide-tolerant and second-generation seed varieties in the next two to three years, helping to extend its competitive advantage and diversify its market reach for different geographies and end markets, including large US feed markets representing a total addressable market of approximately 28 million acres. Benson Hill is conducting additional studies as the 2023 crop comes out of the field and is working with outside parties to perform feeding trials in more species.

-      Benson Hill