Casterra Announces the Completion of a Successful Castor Seed Growing and Harvesting Season in Brazil

Rhea-AI Summary

Casterra Ag , a subsidiary of Evogene (Nasdaq: EVGN) (TASE: EVGN), has successfully completed its castor growing and harvesting season in Brazil. The castor seeds are scheduled for shipment in Q3 2024. Additionally, the castor harvesting season in Africa has begun as planned, expected to provide the majority of seeds for 2024.

Casterra anticipates meeting all existing orders, totaling approximately $8.4 million, with the combined production from Brazil and Africa. CEO Yoash Zohar highlighted impressive improvements in production capabilities in Brazil and expects similar positive performance in African territories. Casterra is positioned as a leader in industrialized castor farming with its elite varieties, global seed production, and efficient large-scale farming protocols.

Positive

• Successful completion of castor growing and harvesting season in Brazil
• Castor harvesting season in Africa started as planned
• Expected to meet all existing orders, amounting to ~$8.4M
• Impressive improvement in production capabilities in Brazil
• Global span seed production operation in Africa and Brazil

Negative

• None.

Insights

Agricultural Analyst

The successful completion of Casterra's castor growing and harvesting season in Brazil marks a significant milestone for the company's production capabilities. The reported impressive improvement in yields demonstrates Casterra's progress in optimizing their agricultural practices and crop performance.

Key points to consider:

• The planned shipment of Brazilian castor seeds in Q3 2024 aligns with typical agricultural timelines, allowing for proper post-harvest processing and quality control.
• The commencement of the African harvesting season as scheduled is crucial, as it's expected to provide the majority of Casterra's 2024 seed supply.
• Casterra's projected ability to fulfill existing orders totaling $8.4 million from both Brazilian and African production showcases the company's growing market presence and operational efficiency.

From an agricultural perspective, Casterra's focus on developing elite castor seed varieties with high oil yield and compact, short-cycle plants positions them well in the industrial-scale castor cultivation market. Their global seed production operation spanning Africa and Brazil provides geographical diversification, potentially mitigating climate-related risks.

However, investors should note that agricultural success can vary year-to-year due to factors like weather conditions, pest pressures and local agricultural policies. While this season's success is promising, consistent performance over multiple seasons would provide stronger evidence of Casterra's long-term viability in the industrial castor market.

Biofuel Industry Analyst

Casterra's successful castor harvest has significant implications for the biofuel and biopolymer industries. As a subsidiary of Evogene , Casterra's progress in castor seed production could potentially impact the broader bio-based industry landscape.

Key considerations for the biofuel sector:

• Castor oil is a valuable feedstock for biodiesel production due to its high oil content and favorable properties.
• Improved castor yields could lead to increased availability of castor oil for biofuel production, potentially at more competitive prices.
• Casterra's focus on industrialized castor farming could help address sustainability concerns often associated with biofuel feedstocks, as castor can be grown on marginal lands not suitable for food crops.

For the biopolymer industry, Casterra's advancements could mean:

• A more stable supply of high-quality castor oil for the production of bio-based plastics and other materials.
• Potential for cost reductions in biopolymer production if castor oil becomes more readily available.
• Enhanced sustainability credentials for products using castor-based biopolymers, aligning with growing consumer demand for eco-friendly materials.

While Casterra's progress is promising, it's important to note that the bio-based industries are still evolving and market dynamics can be influenced by factors such as oil prices, government policies and technological advancements in competing feedstocks. Investors should monitor how Casterra's improvements in castor production translate to market share and profitability in the coming years.

Castor seeds from Brazil will be ready for shipment during third quarter of 2024. Castor harvest season in Africa started as planned.

REHOVOT, Israel, July 31, 2024 /PRNewswire/ -- Casterra Ag Ltd., a subsidiary of Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), and a provider of an integrated solution for industrial-scale cultivation of castor, based on its elite castor seed varieties, developed for bio-based industries including biopolymers & biofuels, is pleased to announce the successful completion of its current castor growing and harvesting season in Brazil. The seeds are planned to be shipped during the third quarter of this year. In addition, the castor harvesting season in Africa, which is expected to supply the majority of seeds for 2024, has started as planned. As noted in previous announcements, the castor seeds produced in 2024 in both Brazilan and African territories, are expected to allow Casterra to meet all its existing orders, amounting to ~$8.4M.

Mr. Yoash Zohar, CEO of Casterra states: "Current castor yields from the harvest in Brazil show an impressive improvement in our production capabilities. I am very proud of our professional team, which in past months invested, and keeps investing, time and efforts working closely with our subcontractors to ensure the best agricultural practices and crop performance, to produce Casterra's high quality castor seeds. We also expect to see such positive performance in our African territories where the majority of our seed production is taking place." 

Casterra is at the forefront of the industrialization of castor, with unique elite varieties (high oil yield, compact and short cycle plants), global span seed production operation (Africa and Brazil), and growing protocols for efficient large-scale castor farming, well-positioned to lead industrialized castor farming.

About Casterra Ag Ltd.: 

Casterra, a wholly owned subsidiary of Evogene, is an integrated solutions company for growing castor plants, based on its elite castor seed varieties, for bio-based industrial applications, such as biofuels & biopolymers. It has built its castor genetic assets based on a broad collection of over 300 castor lines from 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 novel life science products including human microbiome-based therapeutics by Biomica, ag-biologicals by Lavie Bio, ag-chemicals by AgPlenus, and castor seed 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 "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 statement in this press release when it discusses the expected shipment of castor seeds during the third quarter of 2024, Casterra's expectations that the castor seeds produced in Africa and Brazil will allow it to meet its existing purchase orders, and the expected positive production performance of the African subcontractors. 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, Hamas and Hezbollah 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. 

Evogene IR Contact  

Rachel Pomerantz Gerber 
Head of Investor Relations at Evogene 
rachel.pomerantz@evogene.com
Tel: +972-8-9311901  

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SOURCE Casterra Ag Ltd.

FAQ

When will Casterra's castor seeds from Brazil be ready for shipment?

Casterra's castor seeds from Brazil are planned to be shipped during the third quarter of 2024.

What is the total value of Casterra's existing castor seed orders for 2024?

Casterra's existing castor seed orders for 2024 amount to approximately $8.4 million.

Where does Casterra (EVGN) produce the majority of its castor seeds?

The majority of Casterra's castor seed production for 2024 is expected to come from its African territories.

What are the key components of Casterra's integrated solution for industrial-scale castor cultivation?

Casterra's integrated solution includes elite castor seed varieties, global seed production operations in Africa and Brazil, and growing protocols for efficient large-scale castor farming.