Calyxt Inc., a plant-based technology company focused on healthy food ingredients, has entered a collaboration with Central Valley Ag cooperative — a provider of products and services in grain, agronomy, feed and energy headquartered in York, Neb. — to expand Calyxt's identity preserved grower network for Calyxt crop varieties.
CVA will contract acres to launch new Calyxt soybean varieties and offer seed distribution, seed treatment and agronomy services to Calyxt identity preserved growers. In addition, Calyxt will gain access to CVA's grain elevators and rail logistics for the shipping of Calyxt's high oleic soybean grain.
The new relationship with CVA, and existing relationships with Landus and Agtegra, expands Calyxt's access to geographies where 45% of the 89 million acres of U.S. soybeans are grown. It also helps support the future launch of Calyxt's high fiber wheat product in four of the top 10 wheat production states in the U.S., including North Dakota, South Dakota, Kansas and Minnesota.
"This collaboration expands our geographic footprint into Nebraska and Kansas where we can introduce our new soybean varieties while further leveraging the success of our identity preserved system and premium producer program," said Jim Blome, Calyxt CEO. "With more than 75,000 acres already contracted, we are nearing our goal to contract 100,000 acres for 2020."
"This collaboration expands our access to geographies with 45% of domestic soybean acreage, supporting the continued growth of our oil customer base — having recently added multiple new restaurant chains as customers, with a packaged goods manufacturer in the final stages of testing," Blome added. "2020 is shaping up to be an exciting year, and we look forward to continued operational execution and long-term shareholder value creation."
"We are pleased to announce our collaboration with Calyxt," said Nic McCarthy, CVA senior vice president of agronomy. "This mutually beneficial relationship allows our farmers an opportunity to secure offtake and grow Calyxt's high oleic soybean, while simultaneously increasing the utilization of our grain elevator and rail infrastructure. We look forward to working with Calyxt management to create value for both their shareholders and our member-owners."