Weekly Roundup: US gov and ofi climate-proof cocoa, Ÿnsect targets insect breeding world-first

09 Jun 2023 --- This week in industry news, a new partnership involving the US Agency for International Development (USAID) and ofi aimed at climate-proofing cocoa and coffee in Indonesia. Also, Ÿnsect uncovered plans to develop a genotyping chip for insect breeding that could mark a significant step in the sector’s evolution. Meanwhile, Nescafé highlighted regenerative agricultural practices.

In brief: Sustainable agriculture
USAID launched a project to promote sustainable cocoa and coffee production in Indonesia with The Hershey Company, Rikolto, the Indonesian government and PT Olam Indonesia – part of olam food ingredients (ofi). From heavy rains and rising temperatures, climate change is seen as one of the biggest threats to the future of coffee and chocolate. In Indonesia, many smallholders who grow these crops struggle to access the proper support to adapt to the conditions and protect their livelihoods. The Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry project is a joint investment from the partners of US$8.2 million that will aim to assist 6,500 cocoa and coffee farmers in increasing their yields by 25% while conserving 14,000 hectares of the watershed and riparian buffers by 2025.

Nescafé published its first Nescafé Plan 2030 Progress Report, with results showing that farmers are gradually adopting regenerative agricultural practices and improving farming yields. The results are based on an impact assessment conducted by Nescafé in partnership with the Rainforest Alliance, from 2018 to 2022 and among more than 7,000 coffee farmers in 14 countries where Nescafé sources its coffee. Recently adopted practices include intercropping, mulching and integrated weed management. In 2022, the Nescafé Plan 2030 farmer training on regenerative agricultural practices reached more than 100,000 farmers in 14 countries. In addition, 1.4 million trees were planted in and around coffee farms that supply coffee to Nescafé, providing shade to prevent coffee’s over-exposure to the sun and additional revenue sources for farmers.

Nestlé partnered with The Yield Lab Latam to transform the food sector in Latin America.Nestlé partnered with The Yield Lab Latam, a specialized venture capital fund investing to help transform the food sector in Latin America. The Yield Lab Latam invests in technology-based start-ups that operate in the agri-food industry to bring innovative technology solutions from food production to agricultural methods. It connects investors, start-ups, corporates, farmers, the public sector and research communities to promote the sustainable transformation of this critical industry. The company is investing in The Yield Lab Latam with money coming from its Sustainability Fund. The Fund invests in innovative start-ups and organizations working in two key areas: promoting packaging solutions and recycling infrastructure that contribute to circular economies and helping the food sector transition to regenerative agriculture.

Faculty Investigator Alex Harkess’ laboratory at HudsonAlpha Institute for Biotechnology, and their collaborators New West Genetics, were awarded a United States Department of Agriculture National Institute of Food and Agriculture grant to unlock the full potential of industrial hemp. The award comes amid a growing need for more adapted and sustainable crops. Industrial hemp is a promising candidate for sustainable fiber, protein and oil because it has a deep, massive root structure that sequesters more carbon than typical row crops, requires lower inputs, and has greater drought and pest resistance.

GrubMarket announced a multi-year partnership with California Certified Organic Farmers, a nonprofit organization that advances organic agriculture through organic certification, education, advocacy and promotion. The partnership, part of GrubMarket’s Sustainable California initiative, aims to support socially disadvantaged farmers in California by sponsoring cohorts of farmers from underserved communities to obtain organic certification to adopt more organic farming practices and move toward long-term sustainability.

In brief: Alt-protein
Ÿnsect revealed plans to create a genotyping chip named Axiom YNS_Mol1 hailed as a “world-first for insect breeding” and a major step in the evolution of selection of larvae lines to produce insect-based proteins. This novel chip dedicated to the Tenebrio molitor mealworm would allow for selection based on the genomic diversity of the species. 

In brief: Food waste
M&S removed “use by” dates across its RSPCA Assured Select Farms British and organic fresh milk as part of its commitment to halving food waste by 2030 and reaching net zero by 2040. The change, which is being rolled out across all M&S UK stores from this week, will see “use by” dates on fresh milk replaced with “best before” dates.

Development of John Innes Centre’s plant and microbial science and innovation hub will go ahead following confirmation of funding this week. The investment will fund new facilities for the UK-based center and The Sainsbury Laboratory in Norwich Research Park. John Innes says this will boost its capability to translate scientific knowledge into bio-based solutions in response to some of society’s most pressing challenges, particularly concerning food production systems. Genomic selection represents an “essential lever” of ecological transition for insect breeding, says Ÿnsect.

In brief: Business news
MC Mühlenchemie expanded its presence in Africa, opening its third African location with labs and a technology center. The new Stern Ingredients South Africa subsidiary in Randburg near Johannesburg can develop and produce individual system solutions for improving, standardizing and fortifying flours and baked goods. With this new location plus the existing ones in Lagos and Nairobi, MC can perform the entire value-addition chain in flour improvement and fortification on-site, from sourcing, rheology and analytics to application development and production for African mills and bakers.

Nektium announced three global distribution partnerships in Italy, France and Japan for its branded botanical extracts. The deals are part of the company’s strategy to grow international sales and follow its recent expansion from nutraceuticals to F&B. Nektium’s products will be distributed by food ingredient and nutraceutical distribution specialist Deimos to Italy and San Marino. After a ten-year partnership, plant extract specialist Becarre Natural will be Nektium’s exclusive distributor in France, Belgium and Luxembourg. 

Batory Foods, a national distributor of food and fine ingredients, acquired Ohio-based Tri-State Companies, a food ingredients broker, distributor and logistics provider. This acquisition transforms Batory’s service offerings in the Northeast, Midwest and Southeast with the addition of Tri-State’s 100,000-square-foot, multi-temperature zone distribution center. 

UK-based impact fund Sentient Ventures made three investments, worth a combined £2 million (US$2.5 million), into female-founded companies disrupting the food system with alternatives to animal products. La Fauxmagerie, the UK’s first plant-based cheesemonger, has entered 104 Waitrose stores post-investment and is scheduled to roll out across the UK. Purezza, the UK’s first vegan pizzeria, has three locations in the country and is growing a retail line in pizza cheeses. And Seattle-based plant-based chicken maker Rebellyous is developing an advanced plant-meat production technique.

Processed cheese makers St. Paul and Royal ERU entered into a strategic partnership for a proposed acquisition and integration of the processed cheese activities of market peer Kasi Food, currently part of Lekkerkerker Food. This move will reportedly create Europe’s largest producer cooperation in processed cheese. St. Paul, a Belgian-Dutch player in the B2B market, and Royal ERU, a Dutch producer specializing in processed cheese for retail and foodservice, are joining forces to take over Kasi Foods’ processed cheese production to increase their joint market share. 

By Gaynor Selby and Elizabeth Green