Fresh Del Monte Announces Partnership to Produce Biofertilizers from Fruit Residues, Launching Innovative Plant in Kenya

Rhea-AI Summary

Fresh Del Monte Produce and Vellsam Materias Bioactivas have partnered to launch a biofertilizer plant in Kenya, named De l’Ora Bio. The plant will utilize pineapple residues from Fresh Del Monte's cannery to produce biofertilizers, promoting sustainable agriculture. Set to be fully operational by June, the plant aims to support local economy and meet the rising demand for organic and sustainable products. The global biofertilizers market is projected to reach USD 9.14 billion by 2032. This initiative reflects Fresh Del Monte's commitment to innovation and environmental stewardship.

Positive

• Partnership with Vellsam Materias Bioactivas introduces innovative biofertilizer plant.
• Utilization of pineapple residues promotes sustainable agriculture.
• The plant supports local economy by employing 6,500 Kenyan workers.
• Biofertilizers market projected to reach USD 9.14 billion by 2032.
• Commitment to creating a circular economy and environmental stewardship.
• Potential to revolutionize agricultural industry practices.

Negative

• Initial phase; the plant is still undergoing tests and not fully operational until June.
• Reliance on market projections; actual demand and market size could vary.
• Possible challenges in scaling and market acceptance in East African countries.

Insights

Agricultural Scientist

The collaboration between Fresh Del Monte and Vellsam Materias Bioactivas to produce biofertilizers from pineapple residues represents a significant step in sustainable agriculture. Biofertilizers rely on natural microbes to promote plant growth by increasing nutrient availability, improving soil texture and boosting yields. This initiative not only helps reduce waste but also offers a sustainable alternative to synthetic fertilizers, which often have environmental drawbacks like soil degradation and water contamination. By turning pineapple residues into biofertilizers, Del Monte is leveraging an existing by-product to create value, contributing to a circular economy in agriculture. Given the growing demand for sustainable farming practices and organic food, this venture is likely to gain traction and could set a precedent in the industry.

Market Analyst

The establishment of this biofertilizer plant in Kenya by Fresh Del Monte and Vellsam Materias Bioactivas aligns with the increasing global focus on sustainability and organic farming. The biofertilizers market is projected to grow to USD 9.14 billion by 2032, driven by rising awareness of sustainable agriculture and escalating demand for organic products. By entering this market, Fresh Del Monte is well-positioned to capture a share of this growth. The move also enhances the company's reputation as an environmentally conscious brand, which is increasingly important to today's consumers. Additionally, this initiative can diversify Fresh Del Monte's product offerings, potentially opening new revenue streams and reducing reliance on traditional produce sales.

Financial Analyst

From a financial perspective, the partnership and the new biofertilizer plant could offer several benefits for Fresh Del Monte. Firstly, leveraging waste products to create biofertilizers could lead to cost savings and additional revenue streams. Secondly, this move could attract environmentally conscious investors and improve the company's ESG (Environmental, Social and Governance) score, which is an increasingly important metric for institutional investors. Furthermore, the biofertilizer market's expected growth to USD 9.14 billion by 2032 indicates a burgeoning market that Del Monte is tapping into early. However, operational risks include the initial costs of setting up the plant and the potential need for further investment to scale production. Also, market adoption of biofertilizers in Kenya and East Africa could take time, impacting short-term financial returns.

Partnering with Vellsam Materias Bioactivas, the new plant marks initial step in biofertilizer production

MIAMI--(BUSINESS WIRE)-- Fresh Del Monte Produce Inc., one of the world’s leading vertically integrated producers, marketers, and distributors of high-quality fresh and fresh-cut fruits and vegetables, and Vellsam Materias Bioactivas, a leading producer of biotechnological solutions, today announced a partnership that will look into how to maximize the use of Fresh Del Monte’s pineapple residues by way of biofertilizers. The Fresh Del Monte-led partnership, operating under the name De l’Ora Bio, is announcing this collaboration with the inauguration of a biofertilizer plant in Kenya, marking the initial step in the partnership's biofertilizer production endeavor.

The new biofertilizer plant is situated close to Fresh Del Monte’s subsidiary in Kenya, Del Monte Kenya Ltd., and will use residues from the company’s pineapple cannery to create different types of biofertilizers for its use and the eventual sale to other growers in Kenya and East African countries.

Biofertilizers are natural fertilizers that use microbes to help promote plant growth by increasing the supply of essential nutrients to the plants, improving the soil texture and yield of plants, and providing a more sustainable option to traditional fertilizers.

“Fresh Del Monte is committed to creating a circular economy and is taking active measures to repurpose and reuse its residues,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “We see this collaboration as a transformative turning point that has the potential to revolutionize how the agricultural industry farms. De l’Ora embodies our commitment to innovation, environmental stewardship, and pursuing boundaries of what is possible in agriculture.”

Estimates show that the global biofertilizers market size will expand to around USD 9.14 billion by 2032, according to Precedence Research. This figure is expected to grow steadily due to increasing awareness about sustainable agriculture practices, rising demand for organic food products and government initiatives promoting biofertilizer usage.

The new plant is currently running tests and will be fully operational in June. Del Monte Kenya is the single largest exporter in the country and already employs 6,500 Kenya workers directly. With the opening of this plant, the company can further support the local economy and work towards growing its footprint and impact in the region.

Together, through D l’Ora, the newly formed biofertilizer company, Fresh Del Monte and Almeria-based Vellsam, aim to maximize the use of residue utilization, enhance soil fertility, and meet the rising demand from consumers seeking nutritious, sustainably grown produce.

ABOUT FRESH DEL MONTE

Fresh Del Monte Produce Inc. is one of the world’s leading vertically integrated producers, marketers, and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa, and the Middle East. Fresh Del Monte Produce Inc. markets its products worldwide under the DEL MONTE® brand (under license from Del Monte Foods, Inc.), a symbol of product innovation, quality, freshness, and reliability for over 135 years. The company also markets its products under the MANN™ brand and other related trademarks. Fresh Del Monte Produce Inc. is not affiliated with certain other Del Monte companies around the world, including Del Monte Foods, Inc., the U.S. subsidiary of Del Monte Pacific Limited, Del Monte Canada, or Del Monte Asia Pte. Ltd. Fresh Del Monte Produce Inc. is the first global marketer of fruits and vegetables to commit to the “Science Based Targets” initiative. In 2022, 2023 and 2024, Fresh Del Monte Produce was ranked as one of “America’s Most Trusted Companies” by Newsweek based on an independent survey rating companies on three different touchpoints, including customer trust, investor trust, and employee trust. The company was also named a Humankind 100 Company for two consecutive years by Humankind Investments, which recognizes companies that substantially impact areas such as access to food and clean water, healthcare, and digital services. Fresh Del Monte Produce Inc. is traded on the NYSE under the symbol FDP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514815851/en/

Claudia Pou

Vice President, Global Head of Corporate Communications

communications@freshdelmonte.com

Source: Fresh Del Monte Produce Inc.

FAQ

What is Fresh Del Monte's new initiative in Kenya?

Fresh Del Monte has partnered with Vellsam Materias Bioactivas to launch a biofertilizer plant in Kenya named De l’Ora Bio.

What will Fresh Del Monte's new plant in Kenya produce?

The plant will produce biofertilizers using pineapple residues from Fresh Del Monte's cannery.

When will Fresh Del Monte's biofertilizer plant in Kenya be fully operational?

The biofertilizer plant is expected to be fully operational by June.

How does Fresh Del Monte's partnership benefit the local economy in Kenya?

The plant employs 6,500 Kenyan workers, supporting the local economy.

What is the projected market size of biofertilizers by 2032?

The global biofertilizers market size is projected to reach around USD 9.14 billion by 2032.