Casterra Announces a Key Milestone in its Operational Expansion Plan in Africa, with Completion of First Shipment of Castor Seeds Grown and Processed in Kenya

Rhea-AI Summary

Casterra Ag, a subsidiary of Evogene (NASDAQ: EVGN), announced completion of its first shipment of over 100 tons of castor seeds to a customer in Africa. The seeds were cultivated and processed in Kenya, marking a significant milestone in the company's African expansion plan. The production facility near Naivasha, Kenya, which began operations in August 2024, processed the seeds through dehulling, cleaning, sorting, and packaging. Currently, approximately 700 additional hectares are sown with Casterra's premium varieties in Kenya, with harvest expected in late 2024 and early 2025. The local production provides geographical advantages, reducing shipping costs while supporting the local economy.

Positive

• Successful completion of first 100+ ton commercial shipment in Kenya
• 700 additional hectares currently under cultivation
• Operational production facility reducing shipping costs
• Geographic expansion providing proximity to African customers

Negative

• None.

Insights

Market Research Analyst

This milestone shipment of 100+ tons of castor seeds from Kenya marks Casterra's successful operational expansion in Africa, but its immediate financial impact appears given EVGN's micro-cap status ($12.9M market cap). The vertical integration strategy - from cultivation to processing - could reduce costs through proximity advantages and create a sustainable revenue stream. However, with 700 hectares currently under cultivation, the scale remains modest.

The operational infrastructure investment in Kenya, including the new processing facility, represents a strategic positioning in the growing bio-based products market. While this development demonstrates operational progress, investors should note that meaningful revenue impact will depend on successful scaling of operations and market demand growth. The integration of Evogene's AI technology in seed development could provide competitive advantages, but commercialization timeline and market penetration remain uncertain.

The shipment, comprising over 100 tons, was delivered to company's customer in Africa

REHOVOT, Israel, Oct. 29, 2024 /PRNewswire/ -- Casterra Ag Ltd. ("Casterra"), an integrated castor cultivation solution company for oil production for bio-based products and biofuel, and a subsidiary of Evogene Ltd. ("Evogene") (Nasdaq: EVGN) (TASE: EVGN), today announced a key milestone in its operational expansion plan in Africa with the delivery of its first shipment of over 100 tons of castor seeds to its customer in Africa, seeds that were cultivated at several sites in Kenya and processed in a seed production facility near Naivasha, Kenya. The production facility started operating in August 2024 as part of Casterra's expansive operational infrastructure in Kenya.

 

 

 

This shipment of castor seeds, developed by Casterra and produced in Kenya, is the first to complete the entire cultivation and processing cycle in Kenya. The company is now focused on preparing upcoming shipments, which will be delivered to its customers over the coming months. Currently, approximately 700 additional hectares are sown with Casterra's premium varieties in Kenya, with harvest expected later this year and into early 2025.  

The castor seeds in this shipment were cultivated by experienced local growers, and following harvest underwent an industrial-scale processing phase, which included dehulling, cleaning, sorting and packaging. Casterra's professional team oversaw and managed the entire cultivation and seed processing cycle, ensuring adherence to protocols and quality control standards.

Casterra's seed production operation in Kenya provides the company with a commercial advantage as it allows supply in geographic proximity to its customers in Africa, saving time and money on shipping costs while also supporting the local economy and agricultural practices.

Casterra's castor varieties were developed using Evogene's GeneRator AI tech-engine and undergo rigorous testing to meet industry standards. The company is actively working to develop new castor seed varieties that will demonstrate improved performance over existing ones.

Mr. Yoash Zohar, Casterra's CEO stated: "Over the past year Casterra invested significant efforts in solidifying its operational infrastructure in Africa, to ensure a stable supply of castor seeds to our customers in this region. We are satisfied with the collaborations with local growers in Kenya and with the dedication of our team members who support Casterra's seed cultivation and production activities in Kenya. We were excited to witness the first shipment leaving the seed production facility near Naivasha on its way to our customer in Africa. I am pleased to note that the company has taken yet another important step toward becoming a leading global supplier of castor seeds for oil production for bio-based products and biofuel."

About Casterra Ag Ltd.:

Casterra is engaged in developing and commercializing high-yielding castor bean seeds as a cost-competitive, sustainable, second-generation feedstock for the growing biofuel market. It has built its castor genetic assets based on a broad collection of over 300 castor lines from over 40 different geographic and climatic regions. As part of its development process, Casterra applies advanced breeding methods utilizing Evogene's GeneRator AI tech-engine, enabling the use of cutting-edge plant genomics tools and agro-technique expertise to enable efficient and sustainable industrial-scale production of the castor bean.

For additional information, please visit Casterra's website at: www.casterra.co

About Evogene Ltd.:

Evogene (Nasdaq: EVGN, TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science based products by utilizing cutting edge technologies to increase the probability of success while reducing development time and cost. Evogene established three unique tech-engines - MicroBoost AI, ChemPass AI and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).

Evogene uses its tech-engines to develop products through subsidiaries and strategic partnerships. Evogene's subsidiaries currently utilize the tech-engines to develop human microbiome-based therapeutics by Biomica, ag-biologicals by Lavie Bio, ag-chemicals by AgPlenus and castor varieties, for biofuel and other industries, by Casterra. 

For more information, please visit: www.evogene.com.

Forward Looking Statements

This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statements in this press release when it discusses Casterra's expansion plans in Africa, Casterra's ability to fulfill its current orders, development efforts of new castor seed varieties, Casterra becoming a leading global supplier of castor seeds for oil production for bio-based products and biofuel. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, the current war between Israel and Hamas and any worsening of the situation in Israel such as further mobilizations or escalation in the northern border of Israel and those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field-trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.

Contact:
ir@evogene.com
Tel: +972-8-9311901

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SOURCE Casterra Ag Ltd.

FAQ

What is the size of Casterra's first castor seed shipment from Kenya in 2024?

Casterra's first shipment from Kenya comprised over 100 tons of castor seeds.

How many hectares does Casterra (EVGN) currently have under cultivation in Kenya?

Casterra currently has approximately 700 hectares sown with their premium castor varieties in Kenya.

When did Casterra's seed production facility in Kenya begin operations?

Casterra's seed production facility near Naivasha, Kenya, started operating in August 2024.

When is the harvest expected for Casterra's current Kenya cultivation?

The harvest for the current cultivation is expected later in 2024 and into early 2025.