Casterra Announces New Agreements with Seed Producers in Brazil and Africa to Meet Growing Demand for its Elite Castor Seed Varieties

Rhea-AI Summary

Casterra Ag Ltd., a subsidiary of Evogen Ltd., signed strategic agreements with seed producers in Brazil and Africa to enhance castor seed production, adding 400 tons in 2024. The agreements aim to establish long-term production infrastructure and lower production risks by expanding geographies of seed producers.

Insights

Agricultural Biotechnology Expert

The strategic agreements signed by Casterra Ag Ltd. to enhance castor seed production represent a significant development within the agricultural biotechnology sector. These agreements are poised to increase production capacity by 400 tons, which is a substantial volume considering the niche market of castor seeds. Casterra's utilization of GeneRator AI tech-engine, developed by its parent company Evogene, showcases the integration of advanced biotechnology and artificial intelligence in crop development.

From an agricultural biotechnology perspective, the high germination rate of approximately 90% is particularly noteworthy. This rate surpasses the average for most crops, indicating the potential for higher efficiency and yield. The genetic enhancement of castor seeds to achieve such high yields and oil content could disrupt the bio-based industry, providing a more reliable feedstock for biofuels and biopolymers. This development could lead to a shift in the raw materials used in these industries, potentially reducing the reliance on traditional fossil fuels and promoting sustainability.

Supply Chain Analyst

Casterra's initiative to diversify its production sources by expanding agreements with seed producers in Brazil and Africa is a strategic move to mitigate production risks and enhance supply chain resilience. This is particularly important in the context of agriculture, where factors such as climate change, pests and diseases can have significant impacts on crop yields. By creating a more robust and geographically dispersed production base, Casterra is positioning itself to better handle such uncertainties.

The long-term infrastructure established through these agreements suggests a commitment to sustained growth and supply chain stability. For stakeholders, this could translate into more predictable and consistent product availability. Moreover, contributing to local economies where the production is set to expand aligns with broader corporate social responsibility trends, potentially improving the company's reputation and stakeholder relations. However, the actual impact on local communities should be monitored to ensure that the benefits are tangible and equitable.

Market Research Analyst

The expansion of Casterra's production capabilities has implications for the market dynamics of bio-based industries. As demand for sustainable and renewable resources grows, the increase in supply of high-quality castor seeds could meet emerging needs in the production of biofuels and biopolymers. The superior quality of Casterra's seeds, evidenced by high cleanliness and phytosanitary standards, positions the company as a competitive player in the market.

Furthermore, the diversification of production sources may lead to more competitive pricing and improved product availability for customers, which can drive market growth. It's essential to monitor how these developments influence the pricing and availability of bio-based products. Additionally, Casterra's proactive approach to seeking additional seed producers suggests a strategy focused on scaling up operations to meet anticipated market demands, which could have long-term implications for market supply and the competitive landscape.

The new agreements are expected to support additional production of approximately 400 tons of Casterra's elite castor seeds in 2024 and establish long-term production infrastructure

REHOVOT, Israel, March 5, 2024 /PRNewswire/ -- Casterra Ag Ltd., an integrated solutions company for growing castor seeds for bio-based industries, such as biofuels, biopolymers, and a subsidiary of Evogen Ltd. (Nasdaq: EVGN) (TASE: EVGN), is taking significant steps to strengthen its castor production capabilities. The company recently signed strategic agreements with existing and new seed producers in Brazil and Africa to increase its production capabilities of high-yielding, high-oil castor seeds.

 

These agreements are expected to add approximately 400 tons in 2024 and establish long-term production infrastructure. Expanding the number of seed producers in various geographies with whom the company currently works is expected to lower production risks.

Casterra's high-yield castor seed varieties, developed with Evogene's GeneRator AI tech-engine, are rigorously tested to meet industry standards. They are distinguished by exceptional cleanliness, successful phytosanitary test results, and an exceptional germination rate of ~90%, exceeding industry benchmarks.

Mr. Yoash Zohar, CEO of Casterra, emphasizes: "These agreements strengthen our supply chain and mark a strategic change towards diversifying our production sources. Ensuring a reliable and sustainable supply of castor seeds is crucial in meeting the evolving demands of our customers while contributing positively to local economies. Casterra intends to continue to seek additional seed producers to engage with in 2024, to support ongoing seed production."

About Casterra Ag Ltd.:

Casterra is 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 cutting-edge plant genomics tools and agro-technique expertise to enable efficient and sustainable industrial-scale production of the castor bean.

For more information, please visit http://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, medical cannabis products by Canonic and castor varieties, for the 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 "will", "may", "could", "expects", "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates", or words of similar meaning. For example, Evogene and Casterra are using forward-looking statements in this press release when they discuss Casterra's ability to increase its seed production capabilities by 400 tons in 2024, Casterra's ability to meet the demand for its castor seeds and Casterra's ability to find additional seed producers to engage with in 2024. Such statements are based on current expectations, estimates, projections, and assumptions, describe opinions about future events, and involve certain risks and uncertainties that 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 applicable securities authorities. 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
Rachel Pomerantz Gerber
Head of Investor Relations at Evogene
rachel.pomerantz@evogene.com
Tel: +972-8-931190

Logo: https://mma.prnewswire.com/media/1947467/4576967/Casterra_Logo.jpg
Logo: https://mma.prnewswire.com/media/1947468/4576969/Evogene_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/casterra-announces-new-agreements-with-seed-producers-in-brazil-and-africa-to-meet-growing-demand-for-its-elite-castor-seed-varieties-302079750.html

SOURCE Casterra Ag Ltd.

FAQ

What company is Casterra Ag Ltd. a subsidiary of?

Casterra Ag Ltd. is a subsidiary of Evogen Ltd. (Nasdaq: EVGN) (TASE: EVGN).

What are the key highlights of the strategic agreements signed by Casterra Ag Ltd.?

The agreements aim to increase castor seed production by 400 tons in 2024, establish long-term production infrastructure, and lower production risks by expanding seed producers in Brazil and Africa.

What are the unique features of Casterra's high-yield castor seed varieties?

Casterra's high-yield castor seed varieties are developed with Evogene's GeneRator AI tech-engine, rigorously tested for industry standards, with exceptional cleanliness, successful phytosanitary test results, and a germination rate of ~90%.

How does Casterra Ag Ltd. plan to strengthen its supply chain?

Casterra Ag Ltd. plans to diversify its production sources by engaging with additional seed producers in 2024 to ensure a reliable and sustainable supply of castor seeds.